Revenue: As of FY2025 Q3, the actual value is USD 54.4 M.

EPS: As of FY2025 Q3, the actual value is USD -0.08.

EBIT: As of FY2025 Q3, the actual value is USD -16.4 M.

Segment Revenue

• Sequoia Mortgage Banking: Segment GAAP net income of $34.3 million, with a gain on sale margin of 93 basis points. Locked a record $5.1 billion of loans in Q3 2025, including $5.1 billion of Sequoia jumbo loans and $1.2 billion of Aspire expanded loans.
• CoreVest Mortgage Banking: Segment GAAP net income of $3.5 million, funded $521 million of loans, marking the highest volume since Q3’22.
• Redwood Investments: Segment GAAP net income of $10.3 million.

Operational Metrics

• GAAP Net Loss: - $9.5 million or - $0.08 per basic and diluted common share, primarily driven by one-time expenses associated with the transfer or resolution of certain Legacy Investments.
• Non-GAAP Core Segments EAD: $27.1 million or $0.20 per basic common share.
• GAAP Earnings: - $0.08 per share for Q3 2025, compared to - $0.76 in Q2 2025.
• GAAP Book Value: $7.35 per share at September 30, 2025, compared to $7.49 per share at June 30, 2025.
• Return on Equity (ROE): GAAP ROE was - 3.9%, while Non-GAAP Core Segments EAD ROE was 16.8%.

Cash Flow

• Unrestricted Cash and Cash Equivalents: $226 million at September 30, 2025.
• Share Repurchase and Dividend: Repurchased nearly five million common shares and paid a common dividend of $0.18 per share during Q3 2025.
• Capital Allocation: $150 million+ capital unlocked for reallocation to Core Strategies.

Unique Metrics

• Economic Return on Book Value: 0.5% for the third quarter.
• Recourse Debt: $3.8 billion at September 30, 2025, compared to $3.3 billion at June 30, 2025.
• Legacy Exposure Reduction: Reduced legacy exposure to 25% of total capital by late October 2025, completing nearly $1 billion of dispositions.

Outlook / Guidance

• Redwood Trust plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission by November 10, 2025, and is focused on transitioning to a more scalable and simplified business model, including a wind-down of legacy portfolio holdings.
• The company aims to reduce its legacy exposure to 20% of total capital by the end of 2025 and anticipates potential benefits from monetary policy expansion and regulatory loosening, which could enhance net interest income and refinance activity.
• Redwood Trust anticipates lower interest rates to become a tailwind for its operating platforms, with a third of the mortgage market having incentive to refinance with less than 100bps movement in mortgage rates.