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Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through four segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. The CoreVest Mortgage Banking segment operates a platform that originates residential investor loans for subsequent securitization, sale, or transfer into the Redwood Investments portfolio or into joint ventures. This segment also includes various derivative financial instruments that we utilize to manage certain risks associated with our inventory of loans held for sale. The Redwood Investments segment primarily targets investments with sensitivity to housing credit risk, sourced through our operating platforms where control the underwriting and collateral review. Going forward, the Redwood Investments portfolio will focus on retained interests from the company's own securitizations and other investment vehicles, rather than third-party securities, consistent with Redwood's strategic shift toward internally originated investments. The Legacy Investments segment consists of assets no longer aligned with our core strategic objectives, including legacy unsecuritized bridge and term loans, residential re-performing loan securities, and other non-core legacy assets that are in the active process of sale, runoff, or other disposition as part of the accelerated strategic repositioning of our business model. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $131M | - | $-70M | $-10.1B | -7.6% | -41.4% | -229.7% |
| 2024 | $223M | - | $54M | $-5.9B | 4.8% | 55.2% | -2474.8% |
| 2023 | $144M | - | $-2M | $-2.0B | -0.2% | -634.1% | -98.6% |
| 2022 | $-27M | - | $-164M | $-139M | -15.1% | - | - |
| 2021 | - | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Revenue | - | -26.94 | 143.89 | 223.32 | 130.97 |
| Operating Revenue | - | -26.94 | 143.89 | 223.32 | 130.97 |
| Selling General And Administration | - | 127.26 | 123.10 | 131.63 | 147.34 |
| Interest Income | - | 707.85 | 724.46 | 945.16 | 1,182.93 |
| Interest Expense | - | 552.40 | 631.52 | 842.56 | 1,100.23 |
| Net Interest Income | - | 155.45 | 92.94 | 102.61 | 82.70 |
| Other Non Operating Income Expenses | -1.39 | -1.62 | -3.81 | - | - |
| Pretax Income | - | -183.44 | -0.64 | 72.84 | -44.84 |
| Tax Provision | - | -19.92 | 1.64 | 18.84 | 25.18 |
| Tax Rate For Calcs | - | 0 | 0 | 0 | 0 |
| Tax Effect Of Unusual Items | - | -0.76 | 0 | 0 | 0 |
| Net Income Continuous Operations | - | -163.52 | -2.27 | 54 | -70.03 |
| Net Income From Continuing And Discontinued Operation | - | -163.52 | -2.27 | 54 | -70.03 |
| Net Income From Continuing Operation Net Minority Interest | - | -163.52 | -2.27 | 54 | -70.03 |
| Net Income | - | -163.52 | -2.27 | 54 | -70.03 |
| Net Income Common Stockholders | - | -167.86 | -12.96 | 42.60 | -82.68 |
| Net Income Including Noncontrolling Interests | - | -163.52 | -2.27 | 54 | -70.03 |
| Normalized Income | - | -157.28 | -2.27 | 54 | -70.03 |
| Diluted NI Availto Com Stockholders | - | -167.86 | -12.96 | 42.60 | -82.68 |
| Basic Average Shares | - | 117.23 | 116.28 | 132.05 | 130.25 |
| Diluted Average Shares | - | 117.23 | 116.28 | 132.09 | 130.25 |
| Reconciled Depreciation | - | 15.92 | 14.85 | 11.92 | 10.06 |
| Total Unusual Items | 0 | -7 | -2 | -2 | - |
| Total Unusual Items Excluding Goodwill | 0 | -7 | -2 | -2 | - |
| Preferred Stock Dividends | - | - | 6.68 | 7.02 | 7.02 |
| Special Income Charges | 0 | -7 | -2 | -2 | - |
| Impairment Of Capital Assets | 0 | 0 | - | - | - |
| Restructuring And Mergern Acquisition | 0 | 7 | 2 | 2 | - |
| Gain On Sale Of Security | - | -170.22 | -7.46 | 27.63 | -97.27 |
| Depreciation Amortization Depletion Income Statement | 15.30 | 13.97 | 12.43 | - | - |
| Depreciation And Amortization In Income Statement | 15.30 | 13.97 | 12.43 | - | - |
| General And Administrative Expense | - | 127.26 | 123.10 | 131.63 | 147.34 |
| Other Gand A | - | 34.65 | 29.97 | 31.39 | 36.58 |
| Salaries And Wages | - | 92.62 | 93.13 | 100.24 | 110.76 |
| Otherunder Preferred Stock Dividend | - | 4.34 | 4 | 4.39 | 5.64 |
| Average Dilution Earnings | 28.22 | 0 | 0 | - | - |
| Amortization | 15.30 | 13.97 | 12.43 | - | - |
| Amortization Of Intangibles Income Statement | 15.30 | 13.97 | 12.43 | - | - |
| Professional Expense And Contract Services Expense | - | 6.64 | 5.19 | 4.76 | 6.61 |
| Other Non Interest Expense | - | 15.59 | 16.24 | 14.09 | 21.86 |
Real Estate sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Redwood Trust, Inc.this co. | RWT | $667M | -9.53 | 0.73 | -7.6% | - |
| Invesco Mortgage Capital Inc. | IVR | $731M | 7.21 | 1.16 | 16.0% | - |
| BrightSpire Capital, Inc. | BRSP | $726M | -23.30 | 0.77 | -3.3% | -13935.72 |
| CTO Realty Growth, Inc. | CTO | $678M | 67.19 | 1.20 | 1.8% | 13.39 |
| AH REALTY TRUST INC | AHRT | $660M | 117.68 |
| - |
| - |
| - |
| - |
| - |
| 1.44 |
| 1.2% |
| 12.87 |
| Franklin BSP Realty Trust, Inc. | FBRT | $658M | 8.00 | 0.56 | 7.0% | 50.11 |
| TPG RE Finance Trust, Inc. | TRTX | $653M | 10.83 | 0.61 | 5.6% | - |
| Summit Hotel Properties, Inc. | INN | $645M | - | 0.75 | -2.7% | 9.23 |
| Gladstone Commercial Corporation | GOOD | $616M | 31.92 | 3.58 | 11.2% | 12.18 |
| Peer Median | - | 10.83 | 0.96 | 3.7% | 12.52 | |