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Redwood Trust (RWT)
NYSE:RWT
Earnings Data
Report Date
Apr 23, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.18Last Year’s EPS
0.1Same Quarter Last Year
Moderate Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed substantial operational and financial progress: record full-year volumes ($23B), strong Q4 execution across Sequoia, Aspire and CoreVest, meaningful operating leverage (volumes outpacing expenses by ~6x), improved profitability (Q4 GAAP profit vs prior quarter loss), and active redeployment of capital into high-return operating platforms. Key challenges remain — an ongoing legacy portfolio wind-down, concentrated remaining legacy loans, reliance on third-party capital and securitization execution, mortgage rate and refinance uncertainty, and increased competition in non-QM. Overall, the positive developments (record volumes, margin expansion, efficiency gains, and improved earnings) materially outweigh the lowlights, resulting in a favorable outlook.Company Guidance
Record Full-Year Production
Full year 2025 mortgage banking volume of $23 billion, the highest in company history.
Sequoia Q4 Volume Surge
Sequoia locked $5.3 billion of loans in Q4 2025, up 5% sequentially and up 130% versus Q4 2024; bulk activity represented ~60% of volume and Sequoia distributed ~$3 billion via securitizations and >$1 billion through whole loan sales in the quarter.
Aspire Strong Growth and Securitization Launch
Aspire locked a record $1.5 billion in Q4 (a 20% sequential increase), brought 2025 lock volume to >$3 billion, sold $648 million through bulk sales in Q4 (full-year distribution near $1 billion), and expects its inaugural branded securitization to launch in the coming weeks.
CoreVest Momentum and Product Mix Shift
CoreVest full-year volumes increased 13% versus 2024; RTL (residential transition loans) represented nearly 40% of Q4 production for the first time; DSCR volumes increased 43% versus Q3, improving platform efficiency and alignment with institutional demand.
Material Improvement in Earnings and Returns
Q4 GAAP net income of $18.3 million ($0.13/share) versus a GAAP loss of $9.5 million ($0.08/share) in Q3; non-GAAP consolidated EAD rose from $0.01 in Q3 to $0.20 in Q4 and exceeded the common dividend; core segment EAD was $0.33 in Q4 versus $0.20 in Q3.
Strong Segment Profitability
Sequoia Mortgage Banking segment net income of $43.8 million with a 29% return on capital and gain-on-sale margins expanded to 127 basis points; CoreVest generated $7.5 million segment net income with a 30% GAAP ROC and 36% non-GAAP EAD ROC; Redwood Investments delivered $21 million and a 17% annualized ROC.
Operating Leverage and Cost Efficiency
Mortgage banking volumes grew roughly 6x faster than total operating expenses in 2025; operating expense as a percent of production fell to ~0.9% from 1.6% prior year; operating cost per loan down ~44% year-over-year; organizational streamlining expected to reduce annualized back-office run rate costs by $10–$15 million in 2026.
Technology-Driven Productivity Gains
RWT Horizons automation eliminated >3,000 manual hours, reduced document review times by ~75%, and enabled certain QC reviews in under a minute, contributing to throughput and a reduction in marginal cost (management cited ~25 bps marginal cost tied to incremental volume).
Capital Velocity, Liquidity and Short Holding Periods
Loans typically reside on the balance sheet ~35 days enabling high capital velocity; liquidity of $256 million unrestricted cash at quarter end; total return on capital of 26% for full-year 2025.
Capital Reallocation into Core Operating Platforms
Capital invested in core operating and related activities rose to over 80% at year-end 2025 from 57% in 2024 (a ~23 percentage point shift), reflecting strategic redeployment away from legacy investments.
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 |
|---|---|---|---|
Feb 11, 2026 | $5.54 | $6.68 | +20.58% |
Oct 29, 2025 | $5.32 | $5.17 | -2.82% |
Jul 30, 2025 | $5.70 | $5.25 | -7.89% |
Apr 30, 2025 | $5.64 | $5.30 | -6.03% |
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 Apr 23, 2026, After Close (Confirmed).
What is Redwood Trust (RWT) earnings time?
Redwood Trust (RWT) earnings time is at Apr 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 (Q1) is 0.18.