10-K · February 27, 2026
Redwood Trust (RWT) is repositioning toward a scaled mortgage-originations-and-securitization model, operating four segments (Sequoia, CoreVest, Redwood Investments and newly created Legacy Investments) and emphasizing…
Earnings analysis · 10-Q
RWT earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Redwood Trust (RWT) reported a first-quarter 2026 revenue of $34.7 million, exceeding analyst expectations of $30.1 million, and an EPS of $0.28, matching estimates. The company faced significant market volatility, with…
Read full summary
Redwood Trust (RWT) reported a first-quarter 2026 revenue of $34.7 million, exceeding analyst expectations of $30.1 million, and an EPS of $0.28, matching estimates. The company faced significant market volatility, with net loss for the quarter of $7.25 million driven by a $23.2 million negative change in investment fair value, despite achieving record-level mortgage banking production of $8.5 billion.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.28
- Segment
- Sequoia Mortgage Banking
- Segment
- Aspire Mortgage Banking
- Segment
- CoreVest Mortgage Banking
- Segment
- Redwood Investments
- Segment
- Legacy Investments
What stood out
-
Revenue Surpassed Expectations
Revenue of $34.7 million exceeded estimates of $30.1 million by 15.1%.
-
Stable EPS Performance
EPS equalled analyst estimates at $0.28 with no surprise.
-
Record Mortgage Banking Production
Achieved $8.5 billion in mortgage banking production, up from $7.3 billion in Q4 2025.
-
Increased Net Interest Income
Net interest income rose by $9 million to $34.7 million, contributing positively to financials.
-
Improved Cost Efficiency
Cost per loan decreased to 18 basis points from 26 basis points, improving operational efficiency.
-
Higher Servicing Income
Servicing income increased to $8.02 million, reflecting growth in the investment portfolio.
What to watch
-
Deteriorating Investment Fair Value
Experiencing a substantial decline in net investment fair value changes, down by $23 million.
-
Increased Operating Expenses
Total operating expenses rose to $71.9 million, increasing pressure on profitability.
-
Segment Losses in Legacy Investments
Legacy Investments segment reported a loss of $13 million compared to a loss of $22.9 million in the previous quarter.
Management's outlook
Outlook deferred to earnings press release / call.
Earlier filings 4
10-Q · November 7, 2025
Redwood Trust reported higher top-line interest-driven revenue in Q3 2025 but recorded a quarterly net loss of $7,704,000 and diluted EPS of $(0.08). Total assets and securitizations expanded materially while operating…
10-Q · August 8, 2025
Redwood Trust reported a sharp deterioration in profitability in Q2 2025: net loss of $98.492M (Q2 2025) vs net income of $15.534M (Q2 2024), producing diluted EPS of $(0.76) vs $0.10 a year earlier. Interest income…
10-Q · May 9, 2025
Revenue (interest + non-interest) expanded materially year-over-year to $318,000,000 (Q1 2025) from $255,079,000 (Q1 2024), driven by higher interest income from residential consumer loans and mortgage banking activity.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.