| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 81.73 | 47.3% |
| Total Income | 81.73 | 47.3% |
| Expenditure | 302.13 | 265.5% |
| PBT | -216.76 | 380.8% |
| Net Profit | -203.73 | 362.8% |
| OPM | — | |
| NPM | — | |
| EPS | -1.25 | 366.0% |
Ready Capital Reports Q1 2026 GAAP Loss of $(1.25) Per Share Amid Balance Sheet Repositioning
08 May 2026 · 8 May, 2:37 am
Summary
Ready Capital Corporation reported a challenging first quarter for 2026, with a GAAP loss of $(1.25) per common share and a distributable loss of $(1.00) per common share, a stark contrast to the prior year's profit. These results reflect the ongoing execution of a balance sheet repositioning plan focused on de-levering and generating liquidity. Management highlighted the generation of $1.4 billion in cash from loan sales and liquidations, used to repay $1.1 billion in asset-level financing and $184 million in corporate debt. While these actions have negatively impacted earnings and book value, the company anticipates that the material book value pressure will subside by the end of the second quarter, positioning it for future growth in its core CRE debt investing and SBA 7(a) lending businesses.
Key Highlights
- 1
Ready Capital Corporation reported a GAAP loss of $(1.25) per common share for the first quarter ended March 31, 2026, a significant decline compared to a GAAP profit of $0.47 per common share in Q1 2025.
- 2
The company recorded a distributable loss of $(1.00) per common share, with a distributable loss before realized losses of $(0.33) per common share for Q1 2026.
- 3
As part of its balance sheet repositioning, Ready Capital generated $1.4 billion in cash year-to-date from loan sales and portfolio runoff, which facilitated the repayment of over $1.1 billion in asset-level financing and $184 million of corporate debt.
- 4
Total loan originations for the quarter amounted to $464 million, including $288 million of LMM commercial real estate loans and $110 million of Small Business Administration 7(a) loans.
- 5
Book value per share of common stock stood at $7.43 as of March 31, 2026, reflecting the impact of repositioning efforts.
- 6
The company ended the quarter with $200 million in cash and $730 million of unencumbered assets, maintaining total leverage at 3.0x and recourse leverage at 1.8x.
- 7
60+ day core delinquencies increased to 14.8% of the core CRE portfolio at quarter end, primarily reflecting the impact of loan sales and aggressive asset management strategies.
Management Comments
Thomas Capasse
Our first quarter results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital’s financials for long-term success. Year-to-date we have generated $1.4 billion in cash from loan sales and liquidations to facilitate the repayment of $1.1 billion of asset level financing and $184 million of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the Company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses.
Informational and educational content only. Not investment advice.