RWT earnings analysis
What we found in RWT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.28
- Segment
- Sequoia Mortgage Banking
- Segment
- Aspire Mortgage Banking
- Segment
- CoreVest Mortgage Banking
- Segment
- Redwood Investments
- Segment
- Legacy Investments
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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