Ready Capital (RC) Q1 2026 earnings summary

Executive summary

• Generated $1.4 billion in cash from loan sales and liquidations year-to-date, enabling paydown of $1.1 billion in warehouse debt and retirement of $184 million in corporate debt; repositioning plan aims to reduce leverage and transition to a more capital-efficient platform.

• Reported a net loss of $1.25 per common share for Q1 2026, with distributable losses of $1.00 per share and distributable losses before realized losses of $0.33 per share; declared a dividend of $0.01 per share.

• Book value per share declined to $7.43 from $8.79 at year-end, reflecting realized and unrealized losses on loan sales, CECL reserves, and operations.

• Completed the sale of 48 loans totaling $1.0 billion in unpaid principal balance for net proceeds of $177 million.

• Focus shifting to middle market CRE debt investing and SBA 7(a) lending, with increased integration with external manager and streamlined operations.

Financial highlights

• Net loss attributable to common stockholders was $(203.7) million; distributable loss before realized losses was $(49.2) million.

• Recurring revenue was $16.2 million, down from $41.5 million in the prior quarter, mainly due to a $28.5 million reduction in net interest income.

• Operating expenses increased to $67.7 million, primarily due to non-recurring advance payments to servicers.

• Total assets decreased to $6.3 billion from $7.8 billion at year-end 2025, mainly due to a reduction in consolidated VIE assets and loans held for sale.

• Total loan portfolio stood at $4.5 billion, with $464.3 million in new originations and $410 million in repayments.

Outlook and guidance

• Liquidity plan, spanning four quarters, is on track with 67% of target liquidity achieved; remaining maturities for 2026 stand at $450 million.

• Remaining large-scale asset sales are expected to close by the end of Q2 2026, with anticipated easing of book value pressure and a lower-leverage platform positioned for renewed growth.

• Management expects continued macroeconomic uncertainty, with persistent inflation, interest rate volatility, and geopolitical risks impacting results.

• Focus remains on liquidity management, deleveraging, and adapting capital allocation to market conditions.

• Initiated a sale process for up to $1.2 billion of performing and non-performing loans as the final phase of the repositioning plan.