Redwood Trust (NYSE:RWT) Issues Quarterly Earnings Results, Beats Estimates By $0.11 EPS

13 Feb 2026, 17:38 by Tristan Rich · The Markets Daily

Redwood Trust (NYSE:RWT – Get Free Report) announced its quarterly earnings data on Wednesday. The real estate investment trust reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.11, Zacks reports. The company had revenue of $87.30 million during the quarter, compared to analyst estimates of $24.88 million. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.71%.

Here are the key takeaways from Redwood Trust’s conference call:

Management highlighted record mortgage banking volumes—$23 billion for full-year 2025 with Sequoia locking $5.3 billion in Q4 and January volumes of $3.6 billion—and has redeployed over 80% of capital into core operating platforms (up from 57% in 2024).
Operating leverage and profitability improved materially: Q4 GAAP net income was $18.3M, consolidated EAD rose to $0.20 per share, Sequoia segment net income was $43.8M, and management expects 2026 consolidated earnings to exceed the common dividend, enabling reinvestment.
Aspire (non‑QM) is scaling fast—$1.5 billion locked in Q4 with an inaugural Aspire securitization expected soon—supporting distribution, margin expansion and an additional capital‑light growth channel.
Progress on legacy portfolio wind‑down reduced the bridge portfolio principal by ~40% in Q4, lowered 90+ day delinquencies by over 65%, and concentrated remaining exposure to 31 loans (~$309M UPB), freeing capital and simplifying the balance sheet.
Risks remain around funding and market volatility: recourse leverage rose (driven by higher warehouse utilization with ~62% of recourse debt in fast‑turning mortgage banking platforms), liquidity was $256M at year‑end, and a broader refinance recovery is still contingent on further rate declines.

Redwood Trust Stock Up 0.4%

Shares of RWT stock traded up $0.03 during mid-day trading on Friday, hitting $6.71. 762,117 shares of the stock traded hands, compared to its average volume of 1,530,486. Redwood Trust has a 52-week low of $4.68 and a 52-week high of $6.97. The stock has a market cap of $849.39 million, a P/E ratio of -10.99 and a beta of 1.59. The company has a debt-to-equity ratio of 22.73, a current ratio of 57.77 and a quick ratio of 57.77. The stock’s fifty day moving average is $5.66 and its two-hundred day moving average is $5.69.

Redwood Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 10.7%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio is presently -88.89%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Redwood Trust by 26.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock valued at $2,990,000 after acquiring an additional 103,893 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of Redwood Trust in the 1st quarter worth $2,018,000. Strs Ohio purchased a new position in Redwood Trust during the 1st quarter worth $149,000. XTX Topco Ltd increased its position in Redwood Trust by 35.4% during the 2nd quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock valued at $86,000 after buying an additional 3,795 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after buying an additional 6,082 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. JPMorgan Chase & Co. raised Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 target price for the company in a research report on Friday, January 23rd. Wall Street Zen downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Finally, Jones Trading cut their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $6.75.

Check Out Our Latest Report on Redwood Trust

About Redwood Trust

(Get Free Report)

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.