---
title: "Redwood Trust, Inc. | 8-K: FY2025 Q4 Revenue: USD 87.2 M"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275659378.md"
published_at: "2026-02-11T21:22:36.000Z"
---

# 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 Performance

-   Book 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 Returns

-   Redwood 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 Achievements

-   FY’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 & ROCs

-   Q1’25 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 Growth

-   Q2’25 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 Metrics

-   Mortgage 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 Mix

-   FY’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 Efficiency

-   FY’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 Debt

-   Average 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 Activity

-   Jumbo 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 Initiatives

-   Active AI Agents in Production: 200+
-   Manual Hours Eliminated: 3,000+
-   Faster Document Review: 75%
-   Sub-Minute QC File Review: Achieved

#### Sequoia Mortgage Banking Performance

-   Q4’25 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 Performance

-   ROC: 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 Performance

-   ROC: 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: 47%
-   Callable Debt > 1 Year: 53%
-   Total Portfolio Debt: $2.0 billion

#### Legacy Investments Performance

-   Portfolio 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 / Guidance

Redwood 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.

### Related Stocks

- [RWTQ.US - Redwood Trust, Inc.](https://longbridge.com/en/quote/RWTQ.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.