Redwood Trust, Inc. | 8-K: FY2025 Q4 Revenue: USD 87.2 M

Revenue: As of FY2025 Q4, the actual value is USD 87.2 M.EPS: As of FY2025 Q4, the actual value is USD 0.13.EBIT: As of FY2025 Q4, the actual value is USD 2 M.Fourth Quarter 2025 Financial PerformanceBook Value Per Share: $7.36 Total Economic Return: 2.6% Dividend Per Share: $0.18 Indicative Dividend Yield: 13.0% GAAP EPS: $0.13 ROE: 7.7% Non-GAAP Core Segments EAD EPS: $0.33 Non-GAAP Core Segments EAD ROE: 23.8% Q4 2025 Segment ReturnsRedwood Investments ROC: -20% Mortgage Banking ROC: 17% Legacy Investments ROC: -9% Redwood Investments Non-GAAP EAD ROC: 14% Mortgage Banking Non-GAAP EAD ROC: 29% Legacy Investments Non-GAAP EAD ROC: 30% Core Segments Capital Composition: 81% of total capital Core Segments Capital: $1.6 Billion FY’25 Operating AchievementsFY’25 Mortgage Banking ROC: 26% Market Share Growth: ~2x Mortgage Banking Volume (YoY Increase): 111% New Loan Sellers Added: 50 Jumbo Securitization Volume in 2025: #1 Mortgage Banking Volumes & ROCsQ1’25 Mortgage Banking ROC: 24% Q2’25 Mortgage Banking ROC: 21% Q3’25 Mortgage Banking ROC: 28% Q4’25 Mortgage Banking ROC: 29% FY’24 Mortgage Banking Volumes: $10.7 billion FY’25 Mortgage Banking Volumes: $22.7 billion Core Segments Earnings GrowthQ2’25 Legacy Investments Capital: $523 million Q3’25 Legacy Investments Capital: $459 million Q4’25 Legacy Investments Capital: $306 million Decrease in Legacy Investments (since Q2’25): 41% Q2’25 Non-GAAP Core Segments EAD: $25 million Q3’25 Non-GAAP Core Segments EAD: $27 million Q4’25 Non-GAAP Core Segments EAD: $43 million Increase in Non-GAAP Core Segments EAD: 72% Mortgage Banking & Redwood Investments MetricsMortgage Banking Capital Turnover: 33.2x Mortgage Banking Loan Margin: 0.77% FY’25 Mortgage Banking ROC: 26% Redwood Investments NIM Margin: 3.1% Redwood Investments Leverage: 4.6x FY’25 Redwood Investments ROC: 14% Core Segments Capital Allocation and Revenue MixFY’24 Core Segments Capital Allocation (Mortgage Banking): 47% FY’25 Core Segments Capital Allocation (Mortgage Banking): 62% FY’24 Core Segments Capital Allocation (Redwood Investments): 53% FY’25 Core Segments Capital Allocation (Redwood Investments): 38% FY’24 Core Segments Revenue Mix (Mortgage Banking): 51% FY’25 Core Segments Revenue Mix (Mortgage Banking): 74% FY’24 Core Segments Revenue Mix (Redwood Investments): 49% FY’25 Core Segments Revenue Mix (Redwood Investments): 26% Mortgage Banking EfficiencyFY’24 Mortgage Banking Capital Efficiency: 3.2% FY’25 Mortgage Banking Capital Efficiency: 2.5% YoY Improvement (Mortgage Banking Capital Efficiency): 21% FY’24 Total OpEx as % of Volume: 1.6% FY’25 Total OpEx as % of Volume: 0.9% YoY Improvement (Total OpEx as % of Volume): 44% FY’25 Total Expense Growth: 18% FY’25 Volume Growth: 111% Leverage and DebtAverage days of loans on balance sheet: 36 days Q3’25 Portfolio Debt: 0.8x Q4’25 Portfolio Debt: 0.8x Q3’25 Corporate Debt: 2.3x Q4’25 Corporate Debt: 4.0x Q3’25 Mortgage Banking Debt: 1.0x Q4’25 Mortgage Banking Debt: 0.8x Q3’25 Total Debt: 2.9x Q4’25 Total Debt: 4.6x Mortgage Banking Debt Composition: 62% Portfolio Debt Composition: 20% Corporate Debt Composition: 18% Total Recourse Debt: $4.4 billion Increase in recourse debt supporting Mortgage Banking growth in Q4’25: 85%+ Market Share and ActivityJumbo Market Share (up from ~2%): ~7% New or Re-engaged Bank Sellers (since 2021 refinance wave): 110+ FY’21 Overall Jumbo Market: $644 billion FY’25 Overall Jumbo Market: $254 billion FY’21 Sequoia Activity (Purchase): $8.6 billion FY’25 Sequoia Activity (Purchase): $16.1 billion FY’21 Sequoia Activity (Refinance): $10.7 billion FY’25 Sequoia Activity (Refinance): $17.6 billion AI InitiativesActive AI Agents in Production: 200+ Manual Hours Eliminated: 3,000+ Faster Document Review: 75% Sub-Minute QC File Review: Achieved Sequoia Mortgage Banking PerformanceQ4’25 ROC: 29% FY’25 Lock Volume: $17.6 billion Q4’25 Lock Volume: $5.3 billion YoY Increase in Lock Volume: 95% Cost Per Loan (FY’24): 0.29% Cost Per Loan (FY’25): 0.23% YoY Improvement in Cost Per Loan: 21% Q1’25 Gain on Sale Margins: 1.23% Q2’25 Gain on Sale Margins: 1.31% Q3’25 Gain on Sale Margins: 0.93% Q4’25 Gain on Sale Margins: 1.27% Average Capital (Q1’25): $367 million Average Capital (Q2’25): $457 million Average Capital (Q3’25): $613 million Average Capital (Q4’25): $476 million Historical Average Sequoia Market Share: 1.0% – 2.0% FY’24 Sequoia Market Share: 4.3% FY’25 Sequoia Market Share: 7.0% Active Seller Base: 210+ sellers (56% banks) Seasoned Loans as % of FY’25 lock volume: 10% Aspire Performance (Non-QM Correspondent Platform)FY’25 Lock Volume: $3.2 billion Q4’25 Lock Volume: $1.5 billion QoQ Increase in Lock Volume: 20% Loan Seller Network: 120+ (65% overlap with Sequoia) Weighted Average FICO: 755 Weighted Average LTV: 66 Non-QM Origination Issuance Growth (2025): 30% Estimated Non-QM Origination Issuance Growth (2026): 15% Aspire Estimated Market Share: 2–3% FY’22 Non-QM TAM: $50 billion FY’23 Non-QM TAM: $51 billion FY’24 Non-QM TAM: $100 billion FY’25 Non-QM TAM: $130 billion FY’26E Non-QM TAM: $150 billion CoreVest Mortgage Banking PerformanceROC: 30% Non-GAAP EAD ROC: 36% FY’25 Funding Volume: $2.0 billion Q4’25 Funding Volume: $460 million YoY Increase in Funded Volumes: 13% FY’24 Net Cost to Originate: 1.18% FY’25 Net Cost to Originate: 0.92% YoY Improvement in Net Cost to Originate: 22% FY’25 Funded Volume (Small Balance Loans): 50% Small Balance Loan Market Growth (estimated over next two years): 15% CoreVest Activity from borrowers with fewer than 100 units (FY’24 & FY’25): ~86% DSCR and RTL loans as % of originations (last year): ~50% Redwood Investments PerformanceROC: 17% Portfolio Cost of Funds (Q4’24): 6.96% Portfolio Cost of Funds (Q1’25): 7.11% Portfolio Cost of Funds (Q2’25): 7.14% Portfolio Cost of Funds (Q3’25): 6.90% Portfolio Cost of Funds (Q4’25): 6.68% Callable Debt 1 Year: 53% Total Portfolio Debt: $2.0 billion Legacy Investments PerformancePortfolio Reduction QoQ: 31% Portfolio Reduction YoY: 56% Capital Unlocked from Legacy Investments portfolio in 2025: $200 million Legacy Bridge Portfolio UPB Decline QoQ: 38% Q1’25 90 Day+ Legacy Bridge Delinquencies: $243 million Q2’25 90 Day+ Legacy Bridge Delinquencies: $196 million Q3’25 90 Day+ Legacy Bridge Delinquencies: $188 million Q4’25 90 Day+ Legacy Bridge Delinquencies: $82 million Reduction in 90 day+ DQ loans since Q1’25: 66% Outlook / GuidanceRedwood Trust, Inc. anticipates a FY’26 Return on Capital (ROC) of 26% for its Mortgage Banking segment. The company expects the non-qualified mortgage (Non-QM) origination issuance to grow by another 15% in 2026, reaching a total addressable market (TAM) of $150 billion. Additionally, the small balance addressable loan market is estimated to grow by 15% over the next two years.