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.<h3>Key Financial Results and Metrics</h3><ul><li>GAAP Book Value per Common Share: $7.35 at September 30, 2025, compared to $7.49 at June 30, 2025.</li><li>Economic Return on Book Value: 0.5% for the third quarter.</li><li>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.</li><li>Non-GAAP Core Segments EAD: $27.1 million or $0.20 per basic common share.</li></ul><h3>Segment Financial Information</h3><h4>Sequoia Mortgage Banking</h4><ul><li>Segment GAAP Net Income: $34.3 million.</li><li>Annualized Return on Equity (ROE): 29%.</li><li>Gain on Sale Margin: 93 basis points.</li><li>Locked Loans: $6.3 billion, up 75% from $3.6 billion in Q2 2025 and up 183% from $2.2 billion in Q3 2024.</li><li>Distributed Loans: $2.7 billion through securitizations ($1.9 billion) and whole loan sales ($0.9 billion).</li></ul><h4>CoreVest Mortgage Banking</h4><ul><li>Segment GAAP Net Income: $3.5 million.</li><li>Annualized ROE: 21% and 30% non-GAAP EAD ROE.</li><li>Funded Loans: $521 million (56% bridge and 44% term), a 2% increase from $509 million in Q2 2025 and a 14% increase from $458 million in Q3 2024.</li><li>Distributed Loans: $386 million through whole loan sales, securitizations, and sales to joint ventures.</li></ul><h4>Redwood Investments</h4><ul><li>Segment GAAP Net Income: $10.3 million.</li><li>Recourse Leverage Ratio: 1.1x at September 30, 2025, unchanged from June 30, 2025.</li></ul><h4>Legacy Investments</h4><ul><li>Segment GAAP Net Loss: - $22.2 million, primarily attributable to one-time expenses and reduced net interest income related to third quarter transfer and resolution activity.</li><li>Capital Allocation: Decreased to 25% of total invested capital at October 29, 2025, compared to 33% at June 30, 2025.</li><li>Recourse Leverage Ratio: 0.6x at September 30, 2025, down from 1.2x at June 30, 2025.</li></ul><h3>Capital and Financing</h3><ul><li>Unrestricted Cash and Cash Equivalents: $226 million at September 30, 2025.</li><li>Recourse Debt: $3.8 billion at September 30, 2025, compared to $3.3 billion at June 30, 2025.</li><li>Convertible Notes: Completed a $50 million reopening of 7.75% convertible notes due 2027.</li><li>Debt Retirement: Retired outstanding convertible debt maturing October 2025; next unsecured corporate debt maturity in June 2027.</li></ul><h3>Outlook / Guidance</h3><ul><li>Redwood Trust, Inc. continues to focus on delivering returns for shareholders through increased transaction activity as rates begin to fall.</li><li>The company has expanded its partnership with CPP Investments to support ongoing platform growth, including an extension of the secured financing facility and joint venture commitment period to September 2028, and an upsize of the secured financing facility to $400 million.</li><li>Redwood Trust aims to reduce its legacy exposure to 20% of total capital by the end of 2025. The company anticipates potential benefits from monetary policy expansion and regulatory loosening, which could positively impact its business. Additionally, Redwood Trust is focused on scaling its platform and delivering strong returns for shareholders.</li><li>The company anticipates lower interest rates to become a tailwind for its operating platforms, with a third of the mortgage market having an incentive to refinance with less than 100 bps movement in mortgage rates. The partnership with CPP Investments is expected to extend the commitment period to September 2028 and add $150 million of borrowing capacity to the existing credit facility. The company plans to continue its shift towards an operating model with a wind-down of legacy portfolio holdings, targeting a reduction in capital allocated to legacy investments to 0% - 5% by the end of 2026.</li></ul>

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