---
title: "Redwood Trust, Inc. | 8-K: FY2025 Q3 Revenue: USD 54.4 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/263367252.md"
datetime: "2025-10-29T20:22:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/263367252.md)
  - [en](https://longbridge.com/en/news/263367252.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/263367252.md)
---

# Redwood Trust, Inc. | 8-K: FY2025 Q3 Revenue: USD 54.4 M

Revenue: As of FY2025 Q3, the actual value is USD 54.4 M.

EPS: As of FY2025 Q3, the actual value is USD -0.08.

EBIT: As of FY2025 Q3, the actual value is USD -16.4 M.

### Segment Revenue

-   **Sequoia Mortgage Banking**: Segment GAAP net income of $34.3 million, with a gain on sale margin of 93 basis points. Locked a record $5.1 billion of loans in Q3 2025, including $5.1 billion of Sequoia jumbo loans and $1.2 billion of Aspire expanded loans.
-   **CoreVest Mortgage Banking**: Segment GAAP net income of $3.5 million, funded $521 million of loans, marking the highest volume since Q3’22.
-   **Redwood Investments**: Segment GAAP net income of $10.3 million.

### Operational Metrics

-   **GAAP Net Loss**: - $9.5 million or - $0.08 per basic and diluted common share, primarily driven by one-time expenses associated with the transfer or resolution of certain Legacy Investments.
-   **Non-GAAP Core Segments EAD**: $27.1 million or $0.20 per basic common share.
-   **GAAP Earnings**: - $0.08 per share for Q3 2025, compared to - $0.76 in Q2 2025.
-   **GAAP Book Value**: $7.35 per share at September 30, 2025, compared to $7.49 per share at June 30, 2025.
-   **Return on Equity (ROE)**: GAAP ROE was - 3.9%, while Non-GAAP Core Segments EAD ROE was 16.8%.

### Cash Flow

-   **Unrestricted Cash and Cash Equivalents**: $226 million at September 30, 2025.
-   **Share Repurchase and Dividend**: Repurchased nearly five million common shares and paid a common dividend of $0.18 per share during Q3 2025.
-   **Capital Allocation**: $150 million+ capital unlocked for reallocation to Core Strategies.

### Unique Metrics

-   **Economic Return on Book Value**: 0.5% for the third quarter.
-   **Recourse Debt**: $3.8 billion at September 30, 2025, compared to $3.3 billion at June 30, 2025.
-   **Legacy Exposure Reduction**: Reduced legacy exposure to 25% of total capital by late October 2025, completing nearly $1 billion of dispositions.

### Outlook / Guidance

-   Redwood Trust plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission by November 10, 2025, and is focused on transitioning to a more scalable and simplified business model, including a wind-down of legacy portfolio holdings.
-   The company aims to reduce its legacy exposure to 20% of total capital by the end of 2025 and anticipates potential benefits from monetary policy expansion and regulatory loosening, which could enhance net interest income and refinance activity.
-   Redwood Trust anticipates lower interest rates to become a tailwind for its operating platforms, with a third of the mortgage market having incentive to refinance with less than 100bps movement in mortgage rates.

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