Ready Capital (RC)
NYSE:RC
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Ready Capital
(NYSE:RC)
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Rating:50Neutral
Price Target:
$1.50
▼(-18.92% Downside)
Action:Reiterated
Date:05/09/26
Overall score is weighed down primarily by weak financial performance (large losses, negative ROE, and volatility) and material credit stress discussed on the earnings call (book value decline, high nonaccruals, reserve builds). Offsetting factors include improved TTM cash flow, actionable liquidity/leverage reduction plans, and neutral-to-slightly improving near-term technical signals.
Positive Factors
Improved free cash flow
Trailing‑12‑month free cash flow has improved materially, providing durable internal funding to pay down debt, cover maturities, and support portfolio repositioning. Stronger cash generation reduces dependence on capital markets and improves ability to execute deleveraging over the next several quarters.
Negative Factors
High historical leverage & negative ROE
The firm has been a highly levered mortgage REIT and although recent TTM metrics show meaningful deleveraging, negative ROE persists. Structural leverage sensitivity can magnify earnings volatility and limits strategic flexibility until profitability is consistently restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
Trailing‑12‑month free cash flow has improved materially, providing durable internal funding to pay down debt, cover maturities, and support portfolio repositioning. Stronger cash generation reduces dependence on capital markets and improves ability to execute deleveraging over the next several quarters.
Read all positive factors
Ready Capital (RC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$284.18M
Dividend Yield26.82%
Average Volume (3M)1.61M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-56.96%
EPS Growth-78.75%
CountryUS
Employees475
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-3.16
Shares Outstanding165,219,070
10 Day Avg. Volume2,231,016
30 Day Avg. Volume1,614,896
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.23
Price to Sales (P/S)0.72
P/FCF Ratio-1.76
Enterprise Value/Market Cap16.55
Enterprise Value/Revenue26.80
Enterprise Value/Gross Profit-30.31
Enterprise Value/Ebitda-12.73
Forecast
1Y Price Target
$1.70Price Target Upside-8.11% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-1.39
Revenue Forecast (FY)$300.25M
Ready Capital Business Overview & Revenue Model
Company Description
Ready Capital Corporation operates as a real estate finance company in the United States. The company acquires, originates, manages, services, and finances small to medium balance commercial (SBC) loans, small business administration (SBA) loans, ...
How the Company Makes Money
Ready Capital’s earnings are primarily generated from (1) net interest income on its loan and investment portfolios, (2) gains and fees tied to originating and selling/securitizing loans, and (3) servicing-related income. Net interest income comes...
Ready Capital Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call conveyed significant near‑term financial stress (GAAP loss, a 14% quarterly book value decline, sizable reserve builds, elevated nonaccruals and realized losses) driven by an active portfolio repositioning. Offsetting this were clear, actionable liquidity targets and measurable progress (approximately $380M generated to date, completed loan sales at prices in the high‑90s, a plan to generate >$850M total free cash, leadership realignment, and stabilization progress at the Ritz property). Management presented a detailed execution plan with concrete milestones (loan sales by end of Q2, targeted cost reductions, and SBA securitization in Q2). Given the material near‑term headwinds balanced against specific execution progress and a clear remediation plan, the overall tone is cautiously constructive but acknowledges significant challenges.Positive Updates
Liquidity Progress and Clear Target
Generated approximately $380 million of free cash to date (comprised of $130 million from bulk portfolio sales and $250 million from portfolio runoff/asset resolutions). Management targets over $850 million of free cash and reports being ~35% toward that objective.
Negative Updates
Significant GAAP and Distributable Losses
Reported a GAAP loss from continuing operations of $1.46 per share for the quarter. Distributable earnings were a loss of $0.43 per share (or a loss of $0.09 per share excluding realized losses on asset sales).
Read all updates
Q4-2025 Updates
Positive
Negative
Liquidity Progress and Clear Target
Generated approximately $380 million of free cash to date (comprised of $130 million from bulk portfolio sales and $250 million from portfolio runoff/asset resolutions). Management targets over $850 million of free cash and reports being ~35% toward that objective.
Read all positive updates
Company Guidance
Management guided to generate over $850 million of free cash while shrinking the legacy CRE book ~60% to about $2.0 billion, noting they have already produced roughly $380 million of free cash ($130M from bulk sales, $250M from runoff/resolutions) and expect an additional $500M by year‑end — $250M from runoff (driven by a 36% trailing 12‑month repayment rate) and $250M from roughly $1.5 billion of planned loan sales (substantially complete by end of Q2). They plan to resolve or sell about $1.4 billion of sub‑ and nonperforming loans/REO (currently a ~$0.08/quarter per‑share negative earnings drag and ~$13M of quarterly cash outflows), target a 25% reduction in operating costs, shift capital allocation to small‑business lending from 10% to 20%, and reduce leverage by 1.0x to 2.5x, while managing near‑term maturities of $67M in Q3 and $450M in Q4 (having retired a 5.75% senior note). Key quarter metrics cited: Q4 book value down 14% to $8.79/share (from $10.28), GAAP loss from continuing ops $1.46/share, distributable loss $0.43/share ($0.09 ex realized losses), nonaccruals 27%, valuation allowance/CECL reserves up ~$173M ($23M valuation allowance on ~$600M transferred loans, $150M CECL increase), roughly $200M of free cash on hand, ~35% of the liquidity target achieved, and progress on the Ritz asset (16% of equity) with a 27% condo sellout to date at ~$737/sq ft and hotel metrics ADR $492, RevPAR $210, occupancy +6.5% YoY.Ready Capital Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.49M | 499.47M | 27.35M | 389.94M | 383.33M | 296.34M |
| Gross Profit | -155.18M | 437.87M | 27.35M | 389.94M | 383.33M | 296.34M |
| EBITDA | -369.36M | 214.38M | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | -510.15M | -228.91M | -435.75M | 339.45M | 194.26M | 157.74M |
Balance Sheet | ||||||
| Total Assets | 6.31B | 7.77B | 10.14B | 12.44B | 11.62B | 9.53B |
| Cash, Cash Equivalents and Short-Term Investments | 200.43M | 247.59M | 143.80M | 148.27M | 281.68M | 229.53M |
| Total Debt | 4.62B | 5.86B | 6.04B | 7.24B | 9.34B | 7.92B |
| Total Liabilities | 4.87B | 6.12B | 8.21B | 9.79B | 9.72B | 8.25B |
| Stockholders Equity | 1.35B | 1.55B | 1.84B | 2.55B | 1.80B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 277.38M | -203.48M | -51.22M | 33.07M | 359.15M | -3.74B |
| Operating Cash Flow | 277.38M | -203.48M | -51.22M | 33.07M | 359.15M | -34.44M |
| Investing Cash Flow | 2.64B | 2.28B | 1.86B | 1.04B | -1.56B | -1.72B |
| Financing Cash Flow | -2.95B | -2.04B | -1.88B | -1.09B | 1.17B | 1.88B |
Ready Capital Technical Analysis
Negative
1.85
Price Trends
1.74
Negative
1.88
Negative
2.58
Negative
Market Momentum
-0.01
Positive
43.68
Neutral
14.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RC, the sentiment is Negative. The current price of 1.85 is below the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.74, and below the 200-day MA of 2.58, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RC.
Ready Capital Risk Analysis
Ready Capital disclosed 128 risk factors in its most recent earnings report. Ready Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ready Capital Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $636.25M | 8.07 | 6.09% | 10.48% | 0.84% | -8.55% | |
55 Neutral | $746.30M | -8.90 | 7.84% | 16.08% | 11.10% | 77.28% | |
50 Neutral | $284.18M | -0.33 | -31.38% | 26.82% | -56.96% | -78.75% | |
50 Neutral | $417.29M | -1.76 | -8.30% | 11.33% | -20.03% | -1249.19% | |
45 Neutral | $64.21M | -7.12 | -6.46% | 7.97% | -23.52% | 64.81% | |
45 Neutral | $295.86M | -1.54 | -28.47% | ― | 106.26% | -86.85% |
* Real Estate Sector Average
RC
Ready Capital
1.70
-2.40
-58.54%
IVR
Invesco Mortgage
7.91
1.53
23.98%
KREF
Kkr Real Estate Finance
6.18
-2.02
-24.59%
GPMT
Granite Point Mortgage
1.30
-0.89
-40.53%
TRTX
Tpg Re Finance
8.16
1.18
16.91%
CMTG
Claros Mortgage Trust
2.11
-0.18
-7.86%
Ready Capital Corporate Events
Business Operations and Strategy
Ready Capital Redeems 6.20% Senior Notes Due 2026
Positive
Mar 24, 2026
On March 23, 2026, Ready Capital Corporation announced it will redeem all of its outstanding 6.20% Senior Notes due 2026 under its existing indenture arrangements with U.S. Bank Trust Company as trustee. The company set April 22, 2026 as the redem...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.