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RWTN

Redwood Trust, Inc. 9.125% Seni

RWTN

Redwood Trust, Inc. 9.125% Seni • NYSE
$24.93 ▲ 0.73% (+0.18)
Market Cap $3.16 B
52w High $25.72
52w Low $22.48
Dividend Yield 2.28%
P/E 0
Volume 6.50K
Outstanding Shares 126.68M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $61.4M ▼ $38.7M ▲ $500K ▲ 0.814% ▲ $0.004 ▲ $287.379M ▲
Q2-2025 $297.284M ▲ $37M ▼ $-12.9M ▼ -4.339% ▼ $-0.097 ▼ $179.279M ▲
Q1-2025 $73.848M ▲ $37.471M ▲ $16.147M ▲ 21.865% ▲ $0.077 ▲ $0
Q4-2024 $30.879M ▼ $32.532M ▼ $-6.618M ▼ -21.432% ▼ $-0.073 ▼ $0
Q3-2024 $69.722M $36.008M $14.826M 21.264% $0.091 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $226.321M ▼ $22.601B ▲ $21.602B ▲ $999.014M ▼
Q2-2025 $301.979M ▲ $21.333B ▲ $20.28B ▲ $1.053B ▼
Q1-2025 $260M ▼ $19.872B ▲ $18.688B ▲ $1.184B ▼
Q4-2024 $312.927M ▲ $18.258B ▼ $17.07B ▼ $1.188B ▼
Q3-2024 $0 $18.427B $17.203B $1.224B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-9.064M ▲ $-2.668B ▼ $1.284B ▲ $1.266B ▲ $-118.037M ▼ $-2.668B ▼
Q2-2025 $-99.905M ▼ $-2.113B ▼ $979.077M ▲ $1.236B ▼ $101.751M ▲ $-2.113B ▼
Q1-2025 $10.2M ▲ $-1.953B ▼ $658.757M ▼ $1.327B ▲ $33.548M ▲ $-1.953B ▼
Q4-2024 $-7.875M ▼ $-853.984M ▲ $1.001B ▲ $-160.052M ▼ $-13.04M ▲ $-853.984M ▲
Q3-2024 $14.826M $-2.088B $635.624M $1.439B $-13.413M $-2.088B

Five-Year Company Overview

Income Statement

Income Statement Redwood’s earnings history is choppy but moving in a better direction. Revenue and operating profit have swung up and down over the past few years, reflecting how sensitive a mortgage REIT is to interest rates and housing cycles. More recently, both revenue and operating profit have improved meaningfully, suggesting the core business is performing better and deal activity has picked up. However, net income remains modest compared with operating profit, which points to heavy financing costs and other non‑operating items eating into the bottom line. Overall, the trend is toward stabilization and recovery, but with a track record that shows significant volatility from year to year.

Balance Sheet

Balance Sheet The balance sheet is large and heavily financed with debt, which is typical for a mortgage REIT but still a key risk. Assets have grown steadily, showing expansion of the loan and securities book. Equity, by contrast, has only inched up, so the company is operating with a relatively thin capital cushion compared with the size of its balance sheet. Cash on hand is small relative to total assets, which reinforces the reliance on secured funding and capital markets. This structure can work well in normal markets but leaves the company sensitive to funding stress, credit losses, or sharp moves in interest rates.

Cash Flow

Cash Flow Reported operating and free cash flow have been consistently negative, which looks alarming in a traditional industrial business but is more nuanced for a finance company. In this model, cash outflows often reflect building or turning over a portfolio of loans and securities rather than pure operating weakness. Even so, the pattern shows that Redwood depends heavily on external financing, securitizations, and capital markets transactions to support its activities. Investors should view this as a business where balance sheet management and access to funding are just as important as accounting earnings.

Competitive Edge

Competitive Edge Redwood operates in specialized corners of the mortgage market, especially non‑agency residential and investor-focused loans, where experience and relationships matter. Its long history in private mortgage-backed securities, reputation for disciplined underwriting, and deep ties with banks and originators give it a meaningful edge in sourcing and structuring deals. The model of acquiring mortgages, securitizing them, and recycling capital can generate attractive spreads when markets are open and credit performance is stable. The flip side is that its niche is tightly linked to housing health, investor appetite for structured products, and the stability of funding markets, so the competitive strength sits alongside real cyclical and liquidity risk.

Innovation and R&D

Innovation and R&D Innovation at Redwood is less about lab-style R&D and more about product design, technology, and partnerships. Through its RWT Horizons arm, it invests in fintech and proptech companies, aiming to bring new tools and data capabilities back into its own platforms. The appointment of a technology-focused leader and the emphasis on AI and digital processes point to a strategy of making underwriting, pricing, and customer interaction more efficient and data-driven. Newer platforms like Aspire, which offers alternative home equity and non-traditional mortgage products, show a willingness to test new structures and serve segments banks do not always reach. These initiatives could deepen its moat over time, but they also introduce execution risk as the company scales unproven products and technologies.

Summary

Putting it together, Redwood is a specialized, highly leveraged housing-credit platform with improving operating results but a history of earnings swings and structurally negative cash flow tied to its financing model. Its strength lies in niche expertise, long-standing relationships, and an active approach to innovation across products and technology. At the same time, the business is inherently exposed to interest rate cycles, housing market conditions, credit performance, and ongoing access to securitization and funding markets. For the RWTN senior notes, all of these factors ultimately matter because they shape the issuer’s long-term ability to generate stable earnings, preserve capital, and service its obligations.