Redwood Trust, Inc. (RWT)

In Q3 2025, Redwood Trust reported record loan originations but a GAAP net loss, and reduced its legacy exposure. A $100 million senior notes offering was priced in November 2025. The company announced its fourth-quarter 2025 dividends in December 2025. In Q2 2025, the company reported a GAAP net loss due to the wind-down of its legacy portfolio, but increased capital allocation to its mortgage banking platforms and repurchased shares. Redwood Trust's share price declined by 14.71% between January 7, 2025, and January 6, 2026.

Redwood Trust's residential mortgage banking revenue can be negatively affected by seasonal factors and year-end interest rate volatility. The CoreVest Mortgage Banking segment has demonstrated strong performance, potentially indicating a less seasonal demand.

Redwood Trust, Inc. is a specialty finance company operating as a Mortgage REIT, focusing on providing liquidity to underserved segments of the U.S. housing market. Its business model includes securitization, mortgage banking, and investments in credit-sensitive assets. The company operates through three segments: Sequoia Mortgage Banking, which acquires and securitizes residential loans; CoreVest Mortgage Banking, which originates business-purpose lending loans; and Redwood Investments, which manages organic investments and third-party securities.

Redwood Trust, Inc. primarily operates within the United States. Its headquarters are in Mill Valley, California, and it has offices in the Denver Metro Area, Irvine, New York, and Los Angeles.

Redwood Trust has a reputation for innovation, excellent service, and a pragmatic approach to credit investing since 1994. Recent financial challenges are related to financial performance and strategic portfolio adjustments rather than events impacting its broader brand reputation. The company emphasizes its risk-minded culture and values.

Institutional investors hold approximately 58.74% of Redwood Trust's stock, insiders own about 1.36%, and public companies and individual investors account for roughly 39.90%. Major institutional shareholders include BlackRock, Inc., Wellington Management Group Llp, and Vanguard Group Inc.