The earnings call reflected a balanced sentiment with significant achievements in volume growth and stable book value, but also highlighted challenges with legacy bridge loans and market volatility.
Company Guidance
In the Redwood Trust First Quarter 2025 Financial Results Conference Call, the company provided detailed guidance on its performance and strategic direction. Key metrics highlighted include an estimated GAAP book value per share increase of 1% to 1.5% from the previous quarter, Sequoia's $4 billion in first-quarter locks representing a 73% quarter-over-quarter growth, and net income from Sequoia at $25.8 million, translating to a 28% ROE for the quarter. The company also noted a strategic shift towards private capital in the mortgage space, targeting year-end 2025 run-rate annualized EAD returns on equity in the 9% to 12% range, up from 7% in the first quarter. Redwood is actively engaging in Washington to advocate for a level playing field between private capital and GSEs, and it is looking to expand its Aspire and CoreVest platforms, with Aspire targeting a 2% to 3% market share of an expanding addressable market. Additionally, the company discussed its preparedness for market volatility, with a focus on hedging and liquidity strategies, and mentioned the potential for share repurchases given its current discount to book value.
Increased Lock Volume
Sequoia's first quarter lock volume increased 73% quarter-over-quarter, reaching $4 billion, the highest level since 2021, driven by strong daily flow activity and bulk purchases from strategic partners.
Book Value Stability
GAAP book value per share was estimated to be up 1% to 1.5% from the quarter end, indicating stability amidst market volatility.
Sequoia and Aspire Performance
Sequoia's net income was $25.8 million, representing a 28% ROE for the quarter. Aspire's loan production averaged 755 FICO and 68% LTV, indicating strong borrower quality.
CoreVest Growth
CoreVest funded $482 million of loans, a 48% increase year-over-year, with a focus on smaller balance loans backed by single-family homes.
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Redwood (RWT) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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RWT Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 30, 2025
$6.21
$5.83
-6.12%
Feb 13, 2025
$6.28
$6.20
-1.27%
Oct 30, 2024
$7.22
$6.92
-4.16%
Aug 01, 2024
$6.73
$6.54
-2.82%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Redwood Trust (RWT) report earnings?
Redwood Trust (RWT) is schdueled to report earning on Jul 24, 2025, TBA Not Confirmed.
What is Redwood Trust (RWT) earnings time?
Redwood Trust (RWT) earnings time is at Jul 24, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.