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Redwood Trust (RWT) investor relations material
Redwood Trust Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record loan originations of up to $7 billion in Q3 2025, with mortgage banking capital allocation up 84% since Q2 2024 and strong growth across all core segments.
Accelerated transition to a scalable, simplified operating model, reducing legacy asset exposure from 33% to 25% of capital and unlocking $150 million for core strategies.
Expanded partnership with CPP Investments, increasing secured borrowing facility to $400 million and extending the joint venture to 2028.
Maintained mortgage banking segment ROEs above 20% for five consecutive quarters, with Core Segments EAD ROE at 16.8% for Q3 2025.
Repurchased up to 6.5 million shares since June 2025.
Financial highlights
Reported GAAP net loss of $9.5 million ($0.08/share), a significant improvement from Q2, mainly due to one-time legacy investment expenses.
Book value per share declined to $7.35 from $7.49 sequentially, with a total economic return of 0.5% for Q3 2025.
Non-GAAP Core Segments EAD was $27.1 million ($0.20/share), with a 16.8% ROE, up from $0.18/share in Q2.
Dividend per share was $0.18, representing a 12.4% indicative yield.
Total assets grew to $22.6 billion, with equity of $999 million as of September 30, 2025.
Outlook and guidance
Targeting further reduction of legacy investments to 0-5% of capital by year-end 2026, with capital redeployment into high-ROE mortgage banking segments.
Optimistic about housing finance sector growth in 2026 as mortgage rates decline and monetary easing is anticipated.
Plan to fundraise for Sequoia platform to support growth.
Management expects increased transaction activity as interest rates begin to fall, focusing on market share and shareholder returns.
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