Revenue swung from -$74.1M in 2024Q1 to $170.7M in 2025Q3 before settling at $69.5M in 2026Q2, with NOI margin recovering to 89.6% from a -110.8% trough in 2025Q4, suggesting gradual exit from acute credit stress.
Ready Capital Corporation (RC) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Revenue | 263.68M | 499.47M | 27.35M | 389.94M | 383.33M | 296.34M | 384.65M | 197.87M | 158.26M | 152.82M | 124.94M | 57.98M | 49.68M | 16.25M | 24.45M |
| Revenue Growth % | 84.55% | 1725.96% | -92.98% | 1.72% | 29.36% | -22.96% | 94.39% | 25.03% | 3.56% | 22.31% | 115.49% | 16.71% | 205.64% | -33.51% | - |
| Property Operating Expenses | 317.07M | 61.61M | 0 | 0 | 0 | 0 | 0 | 0 | 28.75M | 77.01M | 65.59M | 18.85M | 17.26M | 7.09M | 1.39M |
| Net Operating Income (NOI) | -53.39M | 437.87M | 27.35M | 389.94M | 383.33M | 296.34M | 384.65M | 197.87M | 129.52M | 75.81M | 59.35M | 39.13M | 32.42M | 9.16M | 23.06M |
| NOI Margin % | -20.25% | 87.67% | 100% | 100% | 100% | 100% | 100% | 100% | 81.84% | 49.61% | 47.5% | 67.49% | 65.26% | 56.35% | 94.32% |
| Operating Expenses | 342.45M | 316.91M | 27.35M | 389.94M | 383.33M | 296.34M | 384.65M | 197.87M | 121.49M | 86.19M | 71.73M | 50.85M | 14.48M | 9.6M | 2.35M |
| G&A Expenses | 103.71M | 108.74M | 98.74M | 96.27M | 87.86M | 71.74M | 102.31M | 61.11M | 65.52M | 65.21M | 35.77M | 30.93M | 17.09M | 2.58M | 228.36K |
| EBITDA | -472.87M | 123.77M | 199.72M | 1.1B | 600.87M | 361.73M | 0 | 6.25M | -116.43M | -47.19M | 5.36M | -30.97M | 5.49M | 15.92M | 5.66M |
| EBITDA Margin % | -179.33% | 24.78% | 730.12% | 280.84% | 156.75% | 122.07% | 0% | 3.16% | -73.57% | -30.88% | 4.29% | -53.41% | 11.06% | 97.92% | 23.14% |
| Depreciation & Amortization | 4.86M | 2.81M | 19.77M | 20.23M | 25.07M | 16.01M | 0 | 6.25M | 5.06M | 4.64M | 5.66M | 933.81K | 154.01K | 6.2M | 1.83M |
| D&A / Revenue % | 1.84% | 0.56% | 72.29% | 5.19% | 6.54% | 5.4% | 0% | 3.16% | 3.2% | 3.04% | 4.53% | 1.61% | 0.31% | 38.12% | 7.47% |
| Operating Income | -477.73M | 120.96M | 0 | 0 | 0 | 0 | 0 | 0 | -121.49M | -51.83M | -303K | -31.9M | 5.34M | 9.72M | 3.83M |
| Operating Margin % | -181.18% | 24.22% | 0% | 0% | 0% | 0% | 0% | 0% | -76.77% | -33.92% | -0.24% | -55.02% | 10.75% | 59.8% | 15.67% |
| Interest Expense | 2M | 514.13M | 696.46M | 716.47M | 400.77M | 213.56M | 175.48M | 151.88M | 109.24M | 74.65M | 0 | 18.85M | 0 | 0 | 1.39M |
| Interest Coverage | - | 0.41x | 0.26x | 1.50x | 1.44x | 1.62x | - | - | 0.47x | -0.33x | - | -1.69x | - | - | 15.92x |
| Non-Operating Income | -112.17M | -90.61M | -179.94M | -1.07B | -575.8M | -345.72M | 0 | 0 | 39.74M | 70.7M | 55.87M | -18.85B | -4.51M | 1.11M | -1.83M |
| Pretax Income | -658.9M | -302.56M | -516.51M | 358.42M | 175.03M | 132.16M | 54.45M | 64.5M | 62.84M | 47.65M | 65.22M | 3M | 29M | 7.55M | 20.27M |
| Pretax Margin % | -249.88% | -60.58% | -1888.25% | 91.92% | 45.66% | 44.6% | 14.16% | 32.6% | 39.71% | 31.18% | 52.2% | 5.17% | 58.38% | 46.47% | 82.9% |
| Income Tax | -60.41M | -86.7M | -104.51M | 7.17M | 15.47M | 14.86M | 8.38M | -10.55M | 1.39M | 1.84M | 9.65M | 4.42M | -851K | 880.36K | 362.32K |
| Effective Tax Rate % | 9.17% | 28.66% | 20.23% | 2% | 8.84% | 11.24% | 15.4% | -16.36% | 2.21% | 3.86% | 14.8% | 147.37% | -2.93% | 11.66% | 1.79% |
| Net Income | -603.59M | -228.91M | -435.75M | 339.45M | 194.26M | 157.74M | 44.87M | 72.97M | 59.26M | 43.29M | 49.17M | -1.26M | 26.74M | 6.67M | 19.9M |
| Net Margin % | -228.91% | -45.83% | -1593.02% | 87.05% | 50.68% | 53.23% | 11.67% | 36.88% | 37.44% | 28.33% | 39.35% | -2.17% | 53.83% | 41.06% | 81.42% |
| Net Income Growth % | -94.16% | 47.47% | -228.37% | 74.74% | 23.15% | 251.56% | -38.51% | 23.14% | 36.89% | -11.96% | 4000.11% | -104.71% | 300.74% | -66.47% | - |
| Funds From Operations (FFO) | -597.15M | -226.1M | -415.98M | 359.68M | 219.33M | 173.75M | 44.87M | 79.22M | 64.32M | 47.93M | 54.83M | -326.9K | 26.9M | 12.87M | 21.73M |
| FFO Margin % | -226.47% | -45.27% | -1520.73% | 92.24% | 57.22% | 58.63% | 11.67% | 40.04% | 40.64% | 31.37% | 43.88% | -0.56% | 54.14% | 79.18% | 88.89% |
| FFO Growth % | -722.58% | 45.65% | -215.65% | 63.99% | 26.23% | - | - | 23.17% | 34.19% | -12.58% | 16872.56% | -101.22% | 109% | -40.78% | - |
| FFO per Share | -3.45 | -1.35 | -2.44 | 2.42 | 1.87 | 2.53 | 0.83 | 1.88 | 2.00 | 1.53 | 2.06 | -0.01 | 0.72 | 0.45 | 0.78 |
| FFO Payout Ratio % | -5.01% | 0% | 0% | 59.8% | 85.64% | 64.42% | 126.78% | 79.94% | 79.79% | 100.68% | 85.49% | -10893.03% | 64.39% | 80.89% | 48.73% |
| EPS (Diluted) | -3.48 | -1.44 | -2.63 | 2.23 | 1.51 | 1.54 | 0.81 | 1.72 | 1.85 | 1.38 | 1.85 | -0.04 | 0.72 | 0.23 | 0.71 |
| EPS Growth % | -94.21% | 45.25% | -217.94% | 47.68% | -1.95% | 90.12% | -52.91% | -7.03% | 34.06% | -25.41% | 4667.9% | -105.62% | 213.04% | -67.61% | - |
| EPS (Basic) | - | -1.44 | -2.63 | 2.26 | 1.32 | 2.17 | 0.81 | 1.72 | 1.85 | 1.38 | 1.85 | -0.05 | 0.96 | 0.26 | 0.71 |
| Diluted Shares Outstanding | 173.3M | 167.26M | 170.47M | 148.57M | 117.19M | 68.66M | 53.82M | 42.05M | 32.1M | 31.37M | 26.65M | 31.14M | 37.37M | 28.7M | 27.9M |
Quick answers to the most common questions about buying RC stock.
For fiscal year 2025, Ready Capital Corporation (RC) reported total revenue of $499.5M. This represents a 1943.1% increase compared to $24.4M in 2012.
Ready Capital Corporation (RC) reported a net loss of $228.9M for the fiscal year ending 2025.
Ready Capital Corporation (RC) reported an operating income of $121.0M, resulting in an operating profit margin of 24.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Ready Capital Corporation (RC) generated $437.9M in gross profit for the year, representing a gross profit margin of 87.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Credit losses and loan impairments erode FFO
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Earnings Trajectory
Ready Capital's quarterly revenue swung from a negative $74.1M in 2024Q1 to $170.7M by 2025Q3 before collapsing to $45.1M in 2026Q1, reflecting the inherent instability of mortgage REIT income streams tied to loan origination, securitization gains, and mark-to-market volatility rather than contractual rental growth.
For a mortgage REIT like RC, revenue comprises net interest income on loan portfolios, gain-on-sale from securitizations, and fee income — all of which are subject to credit market conditions and interest rate movements. The extreme quarterly revenue dispersion, including multiple quarters of negative revenue (2024Q1: -$67.3M, 2025Q1: -$74.1M), suggests that large-scale loan impairment charges or negative fair-value adjustments are dominating the top line in certain periods. Unlike an equity REIT with contractual lease escalators, RC's revenue trajectory offers no predictable compounding — the 6.8% year-over-year revenue growth in 2026Q2 (per reported filings) does not represent organic momentum but rather a favorable comparison against depressed prior-period figures.
FFO Per Share Deeply Negative Despite Dividend Persistence
FFO per share plunged to -$1.81 in 2024Q4 and remained deeply negative at -$1.41 and -$1.13 in subsequent quarters, signaling that RC's core earnings power has been insufficient to cover its dividend, which yielded 6.3% at the 2025Q4 trough before management presumably reset distributions.
Mortgage REITs rely on FFO as the primary earnings metric because it strips out real estate depreciation, but for a leveraged lender like RC, FFO also fails to capture credit loss provisioning and derivative mark-to-market swings that dominate economic performance. The pattern of persistently negative FFO per share across 8 of the last 10 quarters — with only 2025Q1 showing a positive print of $0.52 — suggests that net interest margin compression and credit deterioration have overwhelmed any gains from securitization activity or fee income. The dividend yield compression from 6.3% in 2025Q4 to 1.2% by 2026Q2 likely reflects a combination of distribution cuts and share price weakness, and investors should monitor whether the FFO loss trajectory is stabilizing or still deteriorating.
NOI Margin Swings Signal Portfolio Repositioning Risk
NOI margin collapsed to -110.8% in 2025Q4 from a normalized 100.0% in 2024Q4, then recovered to 89.6% in 2026Q2, a swing that suggests RC has been absorbing large loan write-downs while gradually rebuilding a performing loan portfolio.
The -110.8% NOI margin in 2025Q4, where NOI was -$137.1M against $123.8M in revenue, points to credit losses or impairments exceeding total revenue — an extraordinarily destructive quarter for a mortgage REIT's property-level economics. The subsequent recovery to 89.6% in 2026Q2 is encouraging but may reflect a smaller, cleaner balance sheet rather than genuine operational improvement. For context, peer mortgage REITs like KREF reported 88.3% gross margins and BXMT at 76.9%, suggesting that RC's normalized margin profile may be competitive, but the frequency of negative-NOI quarters (three of the last six) makes any margin extrapolation unreliable.
Earnings Quality Undermined by Credit Loss Dominance
The fact that net income and FFO diverge by only $20–25M in loss quarters suggests that RC's economic losses are driven by credit events captured in both metrics rather than by depreciation accounting noise, making reported losses a more reliable indicator of portfolio health than in typical equity REITs.
Unlike an equity REIT where GAAP net income is distorted downward by depreciation, RC's mortgage REIT losses appear to reflect genuine credit impairments flowing through both net income and FFO — as evidenced by 2025Q4 where FFO (-$232.5M) and net income (-$234.2M) were nearly identical, implying minimal non-cash depreciation adjustments. This tight correlation between FFO and net income is analytically significant because it removes the usual argument that FFO provides a 'truer' earnings picture — for RC, both metrics point to the same conclusion of severe economic loss. The absence of AFFO data across all 10 quarters further limits visibility into maintenance capital needs or recurring cash earnings, and investors should treat the reported FFO figures as a floor rather than a ceiling on true economic performance given that unrecognized credit losses may still remain.
2026Q2 Recovery Quarter Warrants Skeptical Scrutiny
2026Q2 represented the strongest quarterly result in over a year with revenue of $69.5M, NOI of $62.3M at an 89.6% margin, and FFO losses narrowing to -$78.5M from -$188.7M in the prior quarter, suggesting RC may be exiting its most acute credit stress period.
The sequential FFO improvement of approximately $110M between 2026Q1 and 2026Q2 is the most significant positive inflection in the entire data set, but the FFO loss per share of -$0.46 still represents a deeply negative result that leaves no room for dividend sustainability without balance sheet action. The 2026Q1 revenue trough of $45.1M — despite a reported 160.9% year-over-year growth rate — reflects an extraordinarily depressed comparison base rather than genuine business momentum, and this pattern of volatile quarter-over-quarter swings makes trend extrapolation unreliable. Based on reported figures, the question for investors is whether 2026Q2's improvement reflects the completion of credit loss recognition or a temporary respite; the absence of a clear multi-quarter improvement trend in FFO per share warrants caution before assuming the recovery is structural.