Ready Capital (RC) investor relations material

Executive summary

• Reported a net loss of $99.7 million for Q2 2026, or $0.63 per share, with distributable loss per share of $0.47 and book value per share declining to $6.83.

• Significant progress on balance sheet repositioning, with $1.9 billion cash generated and $1.7 billion in debt paid down; no further large portfolio sales anticipated.

• Four strategic priorities: strengthening liquidity, resolving non- and sub-performing CRE assets, transitioning to a lower-cost model, and focusing on SBA 7(a) lending growth.

• Dividend declared at $0.01 per share for Q2 2026.

• Completed disposition of Residential Mortgage Banking segment and UDF IV Merger.

Financial highlights

• Net loss attributable to common stockholders was $99.7 million for Q2 2026; distributable loss before realized losses was $35.1 million, and distributable loss was $73.6 million.

• Book value per share declined to $6.83, a slower decline than previous quarters.

• Operating expenses improved to $48.7 million, driven by lower servicing expenses and non-recurring items.

• Total assets decreased to $6.3 billion, with $124 million in unrestricted cash and $690 million in unencumbered assets at quarter end.

• Total leverage was 3.0x, with recourse leverage at 1.7x.

Outlook and guidance

• Management expects to address 2026 debt maturities through liquidity initiatives, portfolio sales, and optimizing financing.

• Plans to restart growth in core CRE debt and SBA 7(a) lending, targeting $1.5 billion in annual SBA originations.

• Anticipates continued improvement in net interest income as non-accrual loans and REO are resolved.

• Targeting a 25%-35% reduction in operating expenses through cost optimization and business model transition.

• Ongoing macroeconomic uncertainty, elevated interest rates, and inflationary pressures expected to impact loan performance and origination activity.