Cash flow conversion remains highly distorted, as evidenced by multi-billion dollar operating cash flow outflows despite the company's reported $408.1M in revenue for 2026Q1.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -12.65B | -10.09B | -5.86B | -2.02B | -139.14M | -5.69B | -505.47M | -1.17B | -1.61B | -1.71B | -545.65M | -1.25B | -1.79B | -221.83M | -450.23M | 17.81M | 29.89M | 210.08M | 145.02M | 33.77M | 68.95M | 95.4M | 95.85M | 69.24M | -1.06B | -371.97M | 584.08M | 78M | 1.16B | 49.8M | 20.5M |
| Operating CF Growth % | -459.64% | -72.19% | -190.82% | -1348.77% | 97.56% | -1026.59% | 56.63% | 27.68% | 5.92% | -213.97% | 56.36% | 30.2% | -707.44% | 50.73% | -2627.95% | -40.42% | -85.77% | 44.86% | 329.47% | -51.03% | -27.73% | -0.47% | 38.44% | 106.55% | -184.28% | -163.68% | 648.82% | -93.26% | 2223.09% | 142.93% | 1181.25% |
| Operating CF / Revenue % | -1086.73% | -911.88% | -2417.57% | -1271.03% | 629.48% | -1055.33% | 158.93% | -356.26% | -745.57% | -716.27% | -210.23% | -583.51% | -840.02% | -81.91% | -251.94% | 20% | 15.79% | 159.86% | 90.08% | 15.59% | 7.65% | 9.29% | 13.29% | 37.74% | -1322.92% | -774.9% | 1854.98% | 275.62% | 4965.24% | 141.48% | 121.3% |
| Net Income | -91.68M | -70.03M | 54M | -2.27M | -163.52M | 319.61M | -581.85M | 169.18M | 119.6M | 140.41M | 131.25M | 102.09M | 100.57M | 173.25M | 131.77M | 26.34M | 110.05M | 39.2M | -444.39M | -1.11B | 127.53M | 199.87M | 232.63M | 132.39M | 56.62M | 32.89M | 18.93M | 1.7M | -27.3M | 27.6M | 12.7M |
| Depreciation & Amortization | 9.58M | 10.06M | 11.92M | 14.85M | 15.92M | 16.78M | 17.36M | 10.13M | 1.31M | 1.21M | 1.14M | 824K | 513K | 388K | 1.87M | 1.71M | 885K | 1.28M | 1.17M | -60.19M | -60.5M | -74.63M | -87.01M | -12.38M | 9.96M | 11.23M | 4.17M | 6.8M | 32M | 27.1M | 6M |
| Stock-Based Compensation | 18.28M | 17.17M | 20.74M | 19.06M | 23.94M | 18.9M | 15.3M | 14.96M | 13.74M | 10.38M | 12.65M | 11.81M | 11.27M | 13.55M | 9.84M | 9.11M | 11.52M | 6.17M | 12.63M | 14.48M | 4.29M | 4.29M | 0 | 457K | 159K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -12.47B | -10.14B | -5.93B | -2B | 21.11M | -6.03B | -189.16M | -1.19B | -1.74B | -1.8B | -668M | -1.15B | -1.76B | -438.02M | -531.38M | 9.88M | -56.89M | 69.76M | 528.31M | 1.26B | -86K | -46.16M | 18.03M | 8M | -1.13B | -418.58M | 565.72M | 69.7M | 1.15B | 2.3M | 1.97B |
| Working Capital Changes | -112.78M | 85.54M | -16.51M | -51.49M | -36.59M | -22.87M | 232.87M | -78.71M | -20.77M | -22.38M | 46.2M | -82.18M | -60.45M | 41.28M | 45.27M | -32.73M | -37M | 94.87M | 42.03M | -69.97M | -2.19M | 6.85M | 1.9M | -12.11M | 10.25M | 2.51M | -4.75M | -200K | 2.4M | -7.2M | -1.97B |
| Cash from Investing | 5.1B | 4.53B | 2.54B | 908.72M | 213.89M | 1.4B | 4.07B | 1.03B | -12.75M | 286.86M | 1.33B | 863.25M | 740.58M | 351.34M | 723.31M | -415.55M | 115.23M | 60.41M | 1.17B | 1.45B | 3.77B | 8.12B | -6.98B | -10.51B | -3.34B | 66.18M | -227.44M | 291.2M | -547.4M | -1.27B | -1.73B |
| Acquisitions (Net) | 9.3M | 0 | 0 | 0 | -40.64M | 0 | 0 | -451.63M | 25.49M | 643K | 15.34M | 32.39M | 46.11M | 3.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -313.94M | -257.34M | -236.87M | -117.91M | -263.22M | -398.77M | -292.05M | -711.16M | -1.34B | -600.88M | -318.27M | -179.26M | -168.65M | -488.6M | -507.74M | -1.09B | -278.79M | -752.84M | -316.66M | -1.33B | -1.32B | -995.3M | -879.68M | -714.63M | -386.44M | -313.76M | -465.51M | -17.7M | -1.83B | -979M | 0 |
| Sale of Investments | 731.38M | 701.66M | 61.27M | 243.77M | 177.8M | 184.74M | 937.36M | 995.54M | 761.47M | 306.2M | 577.25M | 578.12M | 679M | 384.49M | 425.05M | 663.49M | 545.39M | 460.53M | 260.61M | 715.15M | 606.67M | 10.71B | 4B | 275.29M | 240.97M | 43.6M | 230.95M | 311.3M | 1.3B | 772.4M | 0 |
| Other Investing | 4.92B | 4.09B | 2.71B | 782.86M | 339.95M | 1.62B | 3.43B | -67.68M | 566.22M | 581.53M | 1.07B | 464.39M | 230.24M | 455.45M | 806.01M | 9.54M | -151.37M | 352.72M | 1.23B | 2.07B | 4.49B | -1.6B | -10.1B | -10.07B | -3.2B | 336.33M | 7.12M | -2.4M | -17M | -1.07B | -1.73B |
| Cash from Financing | 7.5B | 5.7B | 3.27B | 1.15B | -276.87M | 4.28B | -3.31B | 225.47M | 1.68B | 1.36B | -795.39M | 337.46M | 1.15B | -37.39M | -459.18M | 617.98M | -341.01M | -154.16M | -1.48B | -1.37B | -3.85B | -8.09B | 6.89B | 10.46B | 4.43B | 299.33M | -361.04M | -404.9M | -578.7M | 1.24B | 1.71B |
| Dividends Paid | -104.39M | -105.99M | -99.91M | -93.58M | -111.67M | -91.67M | -83.98M | -129.45M | -96.8M | -88.3M | -88.47M | -94.87M | -95.27M | -94.41M | -82.28M | -100.69M | -79.89M | -81.77M | -102.89M | -144.23M | -157.57M | -147.3M | -196.64M | -138.35M | -43.18M | -26.03M | -14.53M | -4.1M | -8.9M | -31.2M | -11.4M |
| Common Dividends | -97.38M | -98.97M | -92.9M | -88.38M | -111.67M | -91.67M | -83.98M | -129.45M | -96.8M | -88.3M | -88.47M | -94.87M | -95.27M | -94.41M | -82.28M | -100.69M | -79.89M | -81.77M | -102.89M | -144.23M | -157.57M | -147.3M | -196.64M | -138.35M | -43.18M | -26.03M | -14.53M | -4.06M | -8.9M | -31.2M | -11M |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K |
| Share Repurchases | -45.44M | -51.83M | 0 | 0 | -56.5M | 0 | -21.66M | 0 | -16.32M | -8.42M | -28.07M | -85.82M | 0 | 0 | 0 | -6.99M | 0 | -4K | -6.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -21.92M | -6.04M | -23.62M | -15.42M | -28.36M | 4.74M | -94.92M | -14.6M | -10.11M | -11.65M | -7.49M | -8.52M | -17.93M | -15.05M | -30.49M | -62.79M | -56.03M | -67.42M | 8.7M | -22.37M | -13.77M | -21.33M | -25.46M | -22.45M | -17.68M | 0 | -681K | 44K | -2.8M | -100K | -500K |
| Net Change in Cash | -51.78M | 136.18M | -55.86M | 39.42M | -202.12M | -12.97M | 253.62M | 85.76M | 58.27M | -68.18M | -7.38M | -49.5M | 96.53M | 92.12M | -186.1M | 220.24M | -195.88M | 116.34M | -163.88M | 122.35M | -7.87M | 118.64M | -1.22M | 19.3M | 30.14M | -6.45M | -4.4M | -35.7M | -578.7M | 1.24B | 1.71B |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 0 | 1K | 0 | -609.5M | 1.22B | 1.71B |
| Cash at Beginning | 449.11M | 312.93M | 368.79M | 329.36M | 531.48M | 544.45M | 290.83M | 205.08M | 146.81M | 212.84M | 220.23M | 269.73M | 173.2M | 81.08M | 267.18M | 46.94M | 242.82M | 126.48M | 290.36M | 168.02M | 175.88M | 57.25M | 58.47M | 39.17M | 9.03M | 15.48M | 19.88M | 55.6M | 24.9M | 11.1M | 4.8M |
| Cash at End | 294.7M | 449.11M | 312.93M | 368.79M | 329.36M | 531.48M | 544.45M | 290.83M | 205.08M | 144.66M | 212.84M | 220.23M | 269.73M | 173.2M | 81.08M | 267.18M | 46.94M | 242.82M | 126.48M | 290.36M | 168.02M | 175.88M | 57.25M | 58.47M | 39.17M | 9.03M | 15.48M | 19.9M | -553.8M | 1.25B | 1.72B |
| Free Cash Flow | -12.65B | -10.09B | -5.86B | -2.02B | -139.14M | -5.69B | -505.47M | 95.21M | -1.64B | -1.71B | -560.99M | -1.28B | -1.84B | -224.94M | -450.23M | 17.81M | 29.89M | 210.08M | 145.02M | 33.77M | 68.95M | 95.4M | 95.85M | 69.24M | -1.06B | -371.97M | 584.08M | 78M | 1.16B | 49.8M | 20.5M |
| FCF Growth % | -84.37% | -72.19% | -190.82% | -1348.77% | 97.56% | -1026.59% | -630.89% | 105.82% | 4.47% | -205.5% | 56.26% | 30.19% | -716.79% | 50.04% | -2627.95% | -40.42% | -85.77% | 44.86% | 329.47% | -51.03% | -27.73% | -0.47% | 38.44% | 106.55% | -184.28% | -163.68% | 648.82% | -93.26% | 2223.09% | 142.93% | 1181.25% |
| FCF / Revenue % | -1086.73% | -911.88% | -2417.57% | -1271.03% | 629.48% | -1055.33% | 158.93% | 29.1% | -757.36% | -716.54% | -216.14% | -598.63% | -861.65% | -83.06% | -251.94% | 20% | 15.79% | 159.86% | 90.08% | 15.59% | 7.65% | 9.29% | 13.29% | 37.74% | -1322.92% | -774.9% | 1854.98% | 275.62% | 4965.24% | 141.48% | 121.3% |
High leverage liquidity sensitivity
As reported in quarterly financial statements, Redwood Trust exhibits a profound disconnect between GAAP operating cash flow and FFO, with OCF consistently showing multi-billion dollar outflows while FFO remains near breakeven, suggesting that traditional cash flow metrics are heavily distorted by the company's securitization and warehouse financing activities.
The extreme divergence between negative GAAP operating cash flow and FFO suggests that the company's core business model relies on massive, short-term financing cycles that do not translate into sustainable cash generation. Investors should monitor this gap, as it implies that the reported FFO may not represent actual liquidity available to the firm.
According to historical data, the dividend payout ratio relative to AFFO is frequently unavailable or indicates coverage ratios exceeding 1.0x, such as the 1.34x observed in 2025Q1, which suggests that the current distribution policy may be reliant on capital recycling rather than recurring operational earnings.
The inability to consistently report positive AFFO coverage for the dividend warrants significant caution regarding the sustainability of current payouts. This pattern suggests that the company may be forced to utilize external financing or balance sheet liquidity to maintain its dividend, which is an unsustainable long-term strategy.
Based on the provided financial data, the volatility in Net Income compared to FFO suggests that Redwood Trust's earnings are heavily influenced by non-cash mark-to-market adjustments, which often mask the underlying cash-based performance of the mortgage banking and investment portfolio segments during periods of market stress.
The reliance on fair value accounting creates a significant wedge between reported GAAP results and the actual cash-generating capacity of the business. Analysts should interpret these figures with skepticism, as the non-cash nature of these adjustments often hides the true operational volatility inherent in the securitization pipeline.
Financial disclosures indicate a debt-to-equity ratio of 22.56x, which, when combined with the observed negative net margins, suggests that Redwood Trust is heavily dependent on continuous access to debt markets to fund its loan pipeline and cover its ongoing operational and dividend obligations.
This high degree of leverage appears to leave the company vulnerable to sudden shifts in credit market liquidity or interest rate volatility. The reliance on external funding to bridge the gap between operational cash flow and dividend requirements suggests a structural fragility that could be exacerbated by any tightening in the securitization markets.
Quick answers to the most common questions about buying RWT stock.
Redwood Trust, Inc. (RWT) generated $-10094.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Redwood Trust, Inc. (RWT) reported negative free cash flow of $10.09B in 2025, indicating capital requirements exceeded cash from operations.
Redwood Trust, Inc. (RWT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Redwood Trust, Inc. (RWT) returned $106.0M to shareholders via cash dividends and spent $51.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.