Revenue contracted sharply to $87.1 million in 2026Q1, while NOI margins compressed to 90.0% from historical peaks of 100%.
| 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 |
|---|
| Revenue | 785.21M | 274.78M | 242.5M | 158.6M | -22.1M | 539.6M | -318.03M | 327.17M | 216.17M | 239.18M | 259.55M | 214.26M | 213.22M | 270.81M |
| Revenue Growth % | 75.62% | 13.31% | 52.9% | 817.51% | -104.1% | 269.67% | -197.21% | 51.35% | -9.62% | -7.85% | 21.14% | 0.48% | -21.26% | - |
| Property Operating Expenses | 40.58M | 28.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 744.63M | 246.48M | 242.5M | 158.6M | -22.1M | 539.6M | -318.03M | 327.17M | 216.17M | 239.18M | 259.55M | 214.26M | 213.22M | 270.81M |
| NOI Margin % | 94.83% | 89.7% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 252.67M | 273.15M | 134.39M | 126.3M | 133.91M | 161.41M | 108.65M | 105.73M | 85.49M | 87.02M | 124.59M | 122.52M | 111.91M | 86.61M |
| G&A Expenses | 90.16M | 153.95M | 134.39M | 126.3M | 133.91M | 161.41M | 108.65M | 105.73M | 75.3M | 77.16M | 60.26M | 80.39M | 76.27M | 69.1M |
| EBITDA | 501.54M | -16.61M | 120.02M | 59.59M | -126.12M | 410.28M | -409.32M | 240.09M | 132M | 153.37M | 146.2M | 92.57M | 101.83M | 200.58M |
| EBITDA Margin % | 63.87% | -6.04% | 49.49% | 37.57% | 570.58% | 76.03% | 128.7% | 73.38% | 61.06% | 64.12% | 56.33% | 43.2% | 47.76% | 74.07% |
| 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 |
| D&A / Revenue % | 1.22% | 3.66% | 4.91% | 17.2% | -135.23% | 5.95% | -5.46% | 5.7% | 0.61% | 0.51% | 0.44% | 0.38% | 0.24% | 0.14% |
| Operating Income | 491.96M | -26.67M | 108.1M | 32.3M | -156.01M | 378.2M | -426.68M | 221.45M | 130.69M | 152.16M | 145.06M | 91.74M | 101.31M | 200.19M |
| Operating Margin % | 62.65% | -9.71% | 44.58% | 20.37% | 705.81% | 70.09% | 134.16% | 67.68% | 60.46% | 63.62% | 55.89% | 42.82% | 47.51% | 73.93% |
| Interest Expense | 4M | 18.1M | 842.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | -1.48x | 0.13x | - | - | - | - | - | - | - | - | - | - | - |
| Non-Operating Income | 100K | 100K | 108.1M | 32.3M | -156.01M | 378.2M | -426.68M | 221.45M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -75.28M | -44.87M | 72.84M | -639K | -183.44M | 338.09M | -586.46M | 176.62M | 130.69M | 152.16M | 134.96M | 91.74M | 101.31M | 184.19M |
| Pretax Margin % | -9.59% | -16.33% | 30.04% | -0.4% | 829.9% | 62.66% | 184.4% | 53.98% | 60.46% | 63.62% | 52% | 42.82% | 47.51% | 68.02% |
| Income Tax | 16.41M | 25.18M | 18.84M | 1.64M | -19.92M | 18.48M | -4.61M | 7.44M | 11.09M | 11.75M | 3.71M | 10.35M | 744K | 10.95M |
| Effective Tax Rate % | -21.8% | -56.11% | 25.86% | -255.87% | 10.86% | 5.47% | 0.79% | 4.21% | 8.48% | 7.72% | 2.75% | 11.28% | 0.73% | 5.94% |
| Net Income | -91.7M | -70.05M | 54M | -2.27M | -163.52M | 319.61M | -581.85M | 169.18M | 115.85M | 136.77M | 127.51M | 99.28M | 97.96M | 168.35M |
| Net Margin % | -11.68% | -25.49% | 22.27% | -1.43% | 739.78% | 59.23% | 182.95% | 51.71% | 53.59% | 57.19% | 49.13% | 46.34% | 45.94% | 62.17% |
| Net Income Growth % | -329.88% | -229.71% | 2474.85% | 98.61% | -151.16% | 154.93% | -443.92% | 46.04% | -15.3% | 7.27% | 28.43% | 1.35% | -41.81% | - |
| Funds From Operations (FFO) | -82.11M | -59.99M | 65.92M | 25.01M | -133.63M | 351.7M | -564.48M | 187.83M | 117.15M | 137.99M | 128.65M | 100.11M | 98.47M | 168.74M |
| FFO Margin % | -10.46% | -21.83% | 27.18% | 15.77% | 604.55% | 65.18% | 177.49% | 57.41% | 54.19% | 57.69% | 49.57% | 46.72% | 46.18% | 62.31% |
| FFO Growth % | -131.84% | -191% | 163.57% | 118.72% | -138% | 162.31% | -400.53% | 60.32% | -15.1% | 7.26% | 28.51% | 1.66% | -41.64% | - |
| FFO per Share | -0.66 | -0.53 | 0.50 | 0.22 | -1.14 | 2.48 | -4.95 | 1.37 | 1.06 | 1.35 | 1.31 | 1.18 | 1.16 | 1.80 |
| FFO Payout Ratio % | 0% | 0% | 151.56% | 374.15% | 0% | 26.07% | 0% | 68.92% | 82.63% | 63.99% | 68.76% | 94.77% | 96.75% | 55.95% |
| EPS (Diluted) | -0.73 | -0.62 | 0.32 | -0.11 | -1.43 | 2.17 | -5.12 | 1.20 | 1.05 | 1.34 | 1.30 | 1.17 | 1.15 | 1.80 |
| EPS Growth % | -832.47% | -293.75% | 390.91% | 92.31% | -165.9% | 142.38% | -526.67% | 14.29% | -21.64% | 3.08% | 11.11% | 1.74% | -36.11% | - |
| EPS (Basic) | - | -0.62 | 0.32 | -0.11 | -1.43 | 2.37 | -5.12 | 1.46 | 1.34 | 1.60 | 1.54 | 1.18 | 1.15 | 1.94 |
| Diluted Shares Outstanding | 124.77M | 113.07M | 132.14M | 116.28M | 117.23M | 142.07M | 113.94M | 136.78M | 110.03M | 101.98M | 97.91M | 84.52M | 85.1M | 93.69M |
Volatile gain-on-sale margins
As indicated by the most recent quarterly filings, Redwood Trust experienced a significant revenue contraction, with figures falling to $87.1 million in 2026Q1, representing a sharp 68.8% year-over-year decline that highlights the sensitivity of the company's conduit model to current interest rate volatility and reduced origination volumes.
The dramatic fluctuation in quarterly revenue suggests that the company's reliance on transactional gain-on-sale income leaves it highly exposed to cyclical housing market downturns. Investors should monitor whether the shift toward Business Purpose Lending and Home Equity Investments can provide a sufficient buffer against the ongoing volatility in traditional jumbo mortgage banking.
According to reported financial statements, FFO per share plummeted to -$0.03 in 2026Q1, marking a 117.1% decline in growth metrics that underscores the difficulty of maintaining consistent profitability when the underlying mortgage banking platform faces persistent margin compression and elevated operational costs relative to transaction volume.
The inconsistency in FFO generation appears to reflect the inherent difficulty of managing a vertically integrated platform during periods of low mortgage activity. The recurring negative FFO prints suggest that the company's fixed cost structure may be misaligned with current market realities, warranting further investigation into potential cost-rationalization efforts.
Based on the provided income statement data, the company's NOI margin has fluctuated significantly, dropping from a peak of 100% in previous periods to 90.0% in 2026Q1, which suggests that the platform is struggling to maintain property-level profitability amidst a challenging interest rate and credit spread environment.
The compression in NOI margins indicates that the costs associated with maintaining the conduit infrastructure are becoming increasingly difficult to absorb as transaction volumes wane. This trend may imply that the company's current scale is insufficient to support its specialized origination platform, potentially pressuring future capital allocation decisions.
As noted in recent SEC filings, the company's reliance on fair value accounting for its investment portfolio and HEI assets creates significant non-cash volatility, as evidenced by the discrepancy between the $20.0 million net income in 2025Q4 and the subsequent -$5.5 million loss reported in 2026Q1.
Investors should be cautious when interpreting these bottom-line figures, as they may not accurately reflect the underlying cash-generating capacity of the business. The reliance on estimated home price appreciation for HEI income warrants further investigation, as it introduces a layer of subjectivity that could mask underlying credit deterioration.
Quick answers to the most common questions about buying RWTN stock.
For fiscal year 2025, Redwood Trust, Inc. 9.125% Seni (RWTN) reported total revenue of $274.8M. This represents a 1.5% increase compared to $270.8M in 2013.
Redwood Trust, Inc. 9.125% Seni (RWTN) reported a net loss of $70.0M for the fiscal year ending 2025.
Redwood Trust, Inc. 9.125% Seni (RWTN) reported an operating income of $-26.7M, resulting in an operating profit margin of -9.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Redwood Trust, Inc. 9.125% Seni (RWTN) generated $246.5M in gross profit for the year, representing a gross profit margin of 89.7%. This demonstrates the company's core pricing power and production efficiency.