Operating cash flow remains deeply negative, with 2026Q1 reporting a $4.5 billion outflow that highlights a concerning divergence from the firm's reported FFO of -$3.2 million.
| 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 |
|---|
| 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 |
| 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% | - |
| Operating CF / Revenue % | -1610.99% | -3673.66% | -2417.57% | -1271.03% | 629.48% | -1055.33% | 158.93% | -356.26% | -745.57% | -716.27% | -210.23% | -583.51% | -840.02% | -81.91% |
| Net Income | -91.7M | -75.67M | 54M | -6.27M | -167.85M | 308.98M | -583.84M | 164.39M | 119.6M | 140.41M | 131.25M | 102.09M | 100.57M | 173.25M |
| Depreciation & Amortization | 9.58M | 10.06M | 11.92M | 27.28M | 29.89M | 32.09M | 17.36M | 18.64M | 1.31M | 1.21M | 1.14M | 824K | 513K | 388K |
| Stock-Based Compensation | 0 | 0 | 25.02M | 0 | 0 | 0 | 0 | 0 | 13.74M | 10.38M | 12.65M | 11.92M | 11.27M | 13.55M |
| Other Non-Cash Items | -12.45B | -10.11B | -5.91B | -1.99B | 35.42M | -6.01B | -171.87M | -1.27B | -1.7B | -1.85B | -733.26M | -1.28B | -1.85B | -421.01M |
| Working Capital Changes | -112.78M | 85.54M | -40.71M | -51.49M | -36.59M | -22.87M | 232.87M | -78.71M | -41.85M | -17.56M | 42.57M | -88.17M | -57.69M | 12M |
| Cash from Investing | 5.1B | 4.53B | 2.54B | 908.72M | 213.89M | 1.4B | 4.07B | 1.03B | -12.75M | 280.38M | 1.34B | 863.25M | 740.58M | 351.34M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | -40.64M | 0 | 0 | -455.34M | -237.65M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -299.14M | -257.34M | -234.83M | -9.86M | -15.01M | -330.54M | -292.05M | -707.45M | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 436.51M | 406.79M | 11.72M | 200.81M | 135.05M | 184.74M | 976.85M | 995.54M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 4.96B | 4.38B | 2.54B | 717.76M | 134.47M | 1.55B | 3.39B | 1.19B | 224.9M | 280.38M | 1.34B | 863.25M | 740.58M | 351.34M |
| 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 |
| 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 |
| Common Dividends | 0 | 0 | -99.91M | 0 | 0 | 0 | 0 | 0 | -96.8M | -88.3M | -88.47M | -94.87M | -95.27M | -94.41M |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -52.95M | -51.83M | -5.01M | 0 | -56.5M | 0 | -21.66M | 0 | -21.15M | -12.55M | -35.4M | -94.27M | -7.64M | 0 |
| Other Financing | -7.19M | -6.04M | -18.14M | -12.25M | -7.25M | 4.74M | -84.68M | -7.58M | 1.78B | 1.45B | -706.93M | 432.33M | 1.24B | 57.03M |
| Net Change in Cash | -51.78M | 136.18M | -55.86M | 39.42M | -202.12M | -12.97M | 253.62M | 85.76M | 58.27M | -74.66M | 1.24M | -49.5M | 96.53M | 92.12M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 449.11M | 312.93M | 368.79M | 329.36M | 531.48M | 544.45M | 290.83M | 205.08M | 146.81M | 221.47M | 220.23M | 269.73M | 173.2M | 81.08M |
| Cash at End | 294.7M | 449.11M | 312.93M | 368.79M | 329.36M | 531.48M | 544.45M | 290.83M | 205.08M | 146.81M | 221.47M | 220.23M | 269.73M | 173.2M |
| Free Cash Flow | -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 |
| FCF Growth % | -84.37% | -72.19% | -190.82% | -1348.77% | 97.56% | -1026.59% | 56.63% | 27.68% | 5.92% | -213.97% | 56.36% | 30.2% | -707.44% | - |
| FCF / Revenue % | -1610.99% | -3673.66% | -2417.57% | -1271.03% | 629.48% | -1055.33% | 158.93% | -356.26% | -745.57% | -716.27% | -210.23% | -583.51% | -840.02% | -81.91% |
Negative operating cash flow
As reported in financial statements, Redwood Trust exhibits a persistent and extreme disconnect between FFO and GAAP operating cash flow, with the latter showing multi-billion dollar outflows that suggest the company's core mortgage banking activities are currently consuming, rather than generating, liquid operating capital on a quarterly basis.
The massive discrepancy between FFO and GAAP operating cash flow appears to be driven by the company's heavy reliance on warehouse financing and the mechanics of loan aggregation. Investors should monitor whether this negative cash flow trend is a temporary byproduct of securitization timing or a structural inability to self-fund the conduit platform.
Based on the provided financial data, the company's inability to consistently report positive AFFO makes dividend sustainability difficult to assess, as the dividend payout has frequently exceeded earnings in periods where data is available, suggesting a reliance on capital reserves rather than recurring cash flow to fund distributions.
The lack of consistent AFFO reporting complicates the analysis of true distributable cash flow for shareholders. Given the negative operating cash flow environment, the dividend appears to be supported by balance sheet liquidity rather than operational performance, which warrants further investigation into the long-term viability of the current payout.
According to recent SEC filings, the company's net income is frequently distorted by fair value adjustments, creating a wide variance between GAAP earnings and the actual cash-generating capacity of the mortgage platform, which complicates the assessment of the firm's true economic performance during periods of high interest rate volatility.
The reliance on fair value accounting for the investment portfolio means that reported net income often fails to reflect the underlying cash flow reality of the business. Analysts should interpret these figures with caution, as non-cash mark-to-market swings appear to mask the underlying operational challenges facing the conduit and BPL segments.
As indicated by the company's reported figures, the persistent negative operating cash flow suggests that the firm's securitization model may be subject to significant off-balance-sheet liquidity pressures, particularly as warehouse lines and financing costs fluctuate in response to broader market credit spreads and interest rate movements.
The cash flow statement appears to hide the true cost of maintaining the conduit infrastructure, as the massive negative operating cash flow figures suggest that the company is effectively subsidizing its origination volume through debt. This dynamic implies that the firm's liquidity position may be more vulnerable to market disruptions than the headline book value might otherwise suggest.
Quick answers to the most common questions about buying RWTN stock.
Redwood Trust, Inc. 9.125% Seni (RWTN) generated $-10094.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Redwood Trust, Inc. 9.125% Seni (RWTN) reported negative free cash flow of $10.09B in 2025, indicating capital requirements exceeded cash from operations.
Redwood Trust, Inc. 9.125% Seni (RWTN) 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. 9.125% Seni (RWTN) 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.