The capital structure appears increasingly fragile, with the debt-to-equity ratio surging to 26.42 in 2026Q1 compared to 9.54 in 2023Q4.
| 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 |
|---|
| Total Assets | 26.82B | 23.7B | 18.26B | 14.5B | 13.03B | 14.71B | 10.36B | 18B | 11.94B | 7.04B | 5.48B | 6.22B | 5.92B | 4.61B |
| Asset Growth % | 116.76% | 29.81% | 25.88% | 11.31% | -11.4% | 42.03% | -42.46% | 50.75% | 69.57% | 28.38% | -11.84% | 5.09% | 28.44% | - |
| Real Estate & Other Assets | 638.58M | 614.75M | -147.27M | 14.11B | 12.65B | 14.17B | 9.81B | 17.58B | 11.7B | 6.83B | 5.15B | 5.8B | 5.51B | 4.37B |
| PP&E (Net) | 16.31M | 15.26M | 13.84M | 20.36M | 28.79M | 27.79M | 19.21M | 16.77M | 5.11M | 2.65M | 2.75M | 4.12M | 3.01M | 1.23M |
| Investment Securities | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | 202M | 256M | 526.87M | 293.1M | 258.89M | 450.49M | 461.26M | 196.97M | 175.76M | 144.66M | 212.84M | 220.23M | 269.73M | 173.2M |
| Cash & Equivalents | 202M | 256M | 312.93M | 293.1M | 258.89M | 450.49M | 461.26M | 196.97M | 175.76M | 144.66M | 212.84M | 220.23M | 269.73M | 173.2M |
| Receivables | 0 | 0 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Current Assets | 0 | 0 | -526.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 111.76M | 105M | 106.28M | 53.34M | 66.31M | 54M | 65.68M | 115.01M | 60.28M | 63.6M | 118.53M | 191.98M | 139.29M | 64.82M |
| Total Liabilities | 25.86B | 22.72B | 17.07B | 13.3B | 11.95B | 13.32B | 9.24B | 16.17B | 10.59B | 5.83B | 4.33B | 5.07B | 4.66B | 3.36B |
| Total Debt | 25.29B | 22.29B | 16.75B | 11.49B | 9.72B | 10.89B | 8.53B | 13.47B | 7.98B | 3.74B | 3.39B | 3.08B | 2.74B | 2.42B |
| Net Debt | 25.08B | 22.04B | 16.43B | 11.2B | 9.46B | 10.44B | 8.06B | 13.27B | 7.81B | 3.59B | 3.18B | 2.86B | 2.47B | 2.25B |
| Long-Term Debt | 21.93B | 22.29B | 15.19B | 11.49B | 9.72B | 10.89B | 8.53B | 13.47B | 7.98B | 3.74B | 3.39B | 3.08B | 2.74B | 2.42B |
| Short-Term Borrowings | 3.36B | 3.28B | 1.55B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 21.31M | 0 | 7.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 3.36B | 3.28B | 1.55B | 86.42M | 83.28M | 118.31M | 64.76M | 98.9M | 62.3M | 42.46M | 32.93M | 28.31M | 31.11M | 32.82M |
| Accounts Payable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | 560.12M | 427M | -15.2B | 1.72B | 2.14B | 2.31B | 653.26M | 2.6B | 2.54B | 2.05B | 906.97M | 1.97B | 1.89B | 910.5M |
| Total Equity | 957M | 983M | 1.19B | 1.2B | 1.08B | 1.39B | 1.11B | 1.83B | 1.35B | 1.21B | 1.15B | 1.15B | 1.26B | 1.25B |
| Equity Growth % | -68.64% | -17.25% | -1.35% | 11.09% | -21.8% | 24.77% | -39.2% | 35.47% | 11.26% | 5.47% | 0.28% | -8.75% | 0.83% | - |
| Shareholders Equity | 957M | 983M | 1.19B | 1.2B | 1.08B | 1.39B | 1.11B | 1.83B | 1.35B | 1.21B | 1.15B | 1.15B | 1.26B | 1.25B |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Stock | 1.25M | 1.25M | 1.32M | 1.31M | 1.14M | 1.15M | 1.12M | 1.14M | 849K | 766K | 768K | 782K | 834K | 825K |
| Additional Paid-in Capital | 2.47B | 2.46B | 2.5B | 2.49B | 2.35B | 2.32B | 2.26B | 2.27B | 1.81B | 1.67B | 1.68B | 1.7B | 1.77B | 1.76B |
| Retained Earnings | -1.55B | -1.52B | -1.34B | -1.3B | -1.2B | -922.93M | -1.15B | -485.04M | -524.77M | -547.57M | -599.68M | -642.47M | -659.41M | -664.71M |
| Preferred Stock | 66.95M | 66.95M | 66.95M | 68.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Return on Assets (ROA) | -0.39% | -0.33% | 0.33% | -0.02% | -1.18% | 2.55% | -4.1% | 1.13% | 1.22% | 2.18% | 2.18% | 1.64% | 1.86% | 3.65% |
| Return on Equity (ROE) | -9.19% | -6.45% | 4.52% | -0.2% | -13.24% | 25.6% | -39.61% | 10.65% | 9.05% | 11.58% | 11.11% | 8.27% | 7.83% | 13.51% |
| Debt / Assets | 94.29% | 94.05% | 91.72% | 79.24% | 74.59% | 74.08% | 82.34% | 74.85% | 66.87% | 53.12% | 61.9% | 49.47% | 46.29% | 52.5% |
| Debt / Equity | 26.42x | 22.68x | 14.10x | 9.54x | 8.97x | 7.86x | 7.67x | 7.37x | 5.92x | 3.08x | 2.95x | 2.68x | 2.18x | 1.94x |
| Net Debt / EBITDA | 50.01x | - | 136.93x | 187.96x | - | 25.46x | - | 55.28x | 59.14x | 23.44x | 21.76x | 30.86x | 24.26x | 11.20x |
| Book Value per Share | 7.67 | 8.69 | 8.99 | 10.36 | 9.25 | 9.76 | 9.75 | 13.36 | 12.26 | 11.89 | 11.74 | 13.56 | 14.76 | 13.30 |
Excessive leverage and liquidity
According to reported financial statements, Redwood Trust's total assets expanded to $26.8 billion in 2026Q1, yet this growth appears disconnected from equity, which has stagnated at $957 million, suggesting that the firm is aggressively leveraging its balance sheet despite persistent operational losses and negative FFO.
The rapid expansion of the asset base relative to a shrinking equity cushion indicates a reliance on debt-funded growth that may not be sustainable in the current interest rate environment. Investors should monitor whether this trajectory reflects a strategic pivot toward higher-risk assets or simply an inability to deleverage during periods of market volatility.
As indicated by the company's reported figures, the debt-to-equity ratio surged to 26.42 in 2026Q1, a significant escalation from the 9.54 level observed in 2023Q4, which highlights a deteriorating capital structure that leaves the firm with minimal buffer against potential credit spread widening or asset valuation declines.
This extreme leverage profile suggests that the company is highly sensitive to fluctuations in the cost of warehouse financing and repo markets. The reliance on such high debt levels to support the investment portfolio warrants further investigation into the maturity profile of these obligations and the firm's ability to refinance in a restrictive credit environment.
Based on the provided balance sheet data, cash reserves have declined to $202 million as of 2026Q1, down from a peak of $326 million in 2024Q3, which appears insufficient given the firm's massive $25.3 billion debt load and the ongoing volatility in its mortgage banking segment.
The contraction in liquidity, coupled with negative FFO, suggests that the company may face increasing pressure to access external capital markets or liquidate assets to meet short-term obligations. This liquidity profile appears precarious and may limit management's flexibility to pursue strategic initiatives or support the dividend during cyclical downturns.
As noted in recent SEC filings, the company's reported debt-to-equity ratio of 26.42 may mask the true risk profile, as it likely aggregates non-recourse securitization debt with recourse corporate obligations, creating a misleading picture of the firm's actual financial health and its exposure to margin calls.
The lack of clear disclosure regarding the recourse nature of the $25.3 billion in total debt makes it difficult to assess the true risk of insolvency. Analysts should monitor the composition of this debt, as any shift toward more recourse-heavy financing would significantly increase the firm's vulnerability to asset-level performance issues.
Quick answers to the most common questions about buying RWTN stock.
As of 2025, Redwood Trust, Inc. 9.125% Seni (RWTN) had total assets of $23.70B including $256.0M in current assets.
Redwood Trust, Inc. 9.125% Seni (RWTN) carries total debt of $22.29B. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Redwood Trust, Inc. 9.125% Seni (RWTN) has total shareholders' equity (book value) of $983.0M ($8.69 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Redwood Trust, Inc. 9.125% Seni (RWTN) reported a current ratio of 0.08x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.