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Redwood ( (RWT) ) has shared an announcement.
On February 11, 2026, Redwood Trust reported fourth-quarter and full-year 2025 results showing record mortgage banking platform performance and strong earnings momentum despite a muted housing backdrop. For the quarter ended December 31, 2025, mortgage banking production reached a record $7.3 billion, segment GAAP net income from mortgage banking was $51.3 million, and the company posted overall GAAP net income of $18.3 million, or $0.13 per share, with GAAP book value per share edging up to $7.36 and economic return on book value of 2.6%.
For full-year 2025, Redwood generated a record $23 billion of combined mortgage banking volume, up 111% year over year, driving $146.2 million of GAAP net income from mortgage banking and a 26% return on capital, while operating cost per loan improved 44%, highlighting fixed-cost leverage. Management continued to wind down the Legacy Investments portfolio, reducing its capital share to 19% by year-end, and repurchased 9.2 million common shares for $53 million, which added $0.13 to book value per share and underscored a strategic focus on higher-return core businesses and shareholder value accretion.
CEO Christopher Abate characterized 2025 as a transformational year in which the Sequoia, Aspire, and CoreVest platforms delivered strong volume growth, record revenues, and attractive returns even as housing activity remained subdued. The company has taken steps to simplify its operating structure and concentrate capital on businesses generating sustainable returns, positioning Redwood to realize future cost savings and to further scale its core platforms, with positive operating leverage and faster capital turnover supporting a more durable earnings profile.
The most recent analyst rating on (RWT) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Redwood stock, see the RWT Stock Forecast page.
Spark’s Take on RWT Stock
According to Spark, TipRanks’ AI Analyst, RWT is a Neutral.
The score is held down primarily by weak financial performance: TTM losses, very high leverage, and deeply negative operating/free cash flow. Offsetting this, technical indicators are moderately positive and the dividend yield is attractive, while the earnings call showed improving core operations and legacy reduction but still included GAAP losses and book value pressure.
To see Spark’s full report on RWT stock, click here.
More about Redwood
Redwood Trust, Inc., listed on the NYSE as RWT and based in Mill Valley, California, operates as a specialized finance company focused on expanding access to housing for homebuyers and renters. The company runs mortgage banking platforms including Sequoia, Aspire, and CoreVest, and manages investment portfolios that allocate capital across core and legacy mortgage-related assets.
Average Trading Volume: 1,405,366
Technical Sentiment Signal: Sell
Current Market Cap: $694.2M
Learn more about RWT stock on TipRanks’ Stock Analysis page.