Redwood Trust (RWT)
NYSE:RWT
Want to see RWT full AI Analyst Report?
Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.2Last Year’s EPS
-0.76Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational momentum and capital efficiency gains—record mortgage banking volume, notable JV partnerships (including an ~$8 billion Castlelake commitment), Sequoia and Aspire platform growth, and improved capital and funding metrics. Offsetting these positives were a Q1 GAAP net loss, portfolio marks driven by March volatility and TBA/spread widening, and one-time restructuring and G&A items as legacy and CoreVest are repositioned. Management provided clear plans and targets to reduce legacy drag and expects material earnings accretion from announced JVs, indicating confidence in near- to medium-term improvement.Company Guidance
Record Operating Quarter and High Capital Turnover
Mortgage banking volume surpassed $8.5 billion (first time) representing a third consecutive record operating quarter; volume equaled ~10x reported GAAP book value, signaling very high capital turnover. Completed 11 securitizations in Q1 (another in-house record).
Sequoia Platform Momentum
Sequoia locked $6.5 billion of production, up 22% quarter-over-quarter; gain-on-sale margins were 96 basis points (at the high end of historical range). Cost per loan improved ~30% Q/Q to below 20 bps (reported at 18 bps), and Sequoia generated $38 million of GAAP net income in Q1.
Aspire Growth and Product Expansion
Aspire lock volume reached $1.6 billion in Q1 with April pacing ahead; estimated Aspire market share ~4% in Q1 with management expecting to at least double that by H2 2026. Aspire achieved its inaugural securitization and posted gross margins of 73 bps (impacted late quarter but largely recovered).
Material Capital Partnerships & Joint Ventures
Announced a Sequoia capital partnership with Castlelake bringing ~ $8 billion of incremental purchasing power. Management expects the Castlelake JV structure to be additive and potentially contribute roughly $0.12–$0.15 of incremental annual earnings to Redwood as it scales. Aspire JV contemplated to support ~25%–30% of Aspire annualized production.
Improved Capital Efficiency and Strong Liquidity
Capital required per dollar of volume declined ~10% Q/Q to 1.1%. Mortgage banking platforms generated $37 million of GAAP net income (38% annualized return on capital). Warehouse capacity increased ~30% to $7.1 billion with excess warehouse capacity of ~$3.9 billion and $202 million of unrestricted cash. No corporate unsecured debt maturities over the next five quarters.
Legacy Position Reduction and Redeployment
Legacy investments declined to 15% of total capital from 19% at year-end (a 4 percentage-point reduction). Legacy GAAP loss improved to $13 million from a $23 million loss in Q4. Management targets <10% legacy capital by year-end and continues to recycle legacy capital into mortgage banking; each ~$50 million of legacy capital redeployed is expected to improve quarterly EAD by roughly $0.05.
Expense and Funding Efficiency Gains
Cost of funds improved with an approximate 50 bps reduction over the past 12 months. Run-rate G&A (ex one-time items) is ~ $40 million and the company's expense-to-volume ratio fell to 66 bps as volume growth outpaced expense growth by nearly 2x.
RWT Earnings History
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
RWT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $5.61 | $5.56 | -0.89% |
Feb 11, 2026 | $5.36 | $6.46 | +20.57% |
Oct 29, 2025 | $5.14 | $5.00 | -2.74% |
Jul 30, 2025 | $5.51 | $5.08 | -7.91% |
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.
FAQ
When does Redwood Trust (RWT) report earnings?
Redwood Trust (RWT) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is Redwood Trust (RWT) earnings time?
Redwood Trust (RWT) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RWT EPS forecast?
RWT EPS forecast for the fiscal quarter 2026 (Q2) is 0.2.