| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 356.92 | 31.2% |
| Total Income | 356.92 | 31.2% |
| Expenditure | 364.93 | 46.1% |
| PBT | -8.01 | 135.7% |
| Net Profit | -5.50 | 134.1% |
| OPM | — | |
| NPM | -1.54% | 7.48pp |
| EPS | -0.07 | 170.0% |
Redwood Trust Reports Q1 2026 Results; Mortgage Banking Production Reaches $8.5B
03 May 2026 · 3 May, 6:22 pm
Summary
Redwood Trust reported a GAAP net loss of $(0.07) per share for Q1 2026, while Non-GAAP Earnings Available for Distribution (EAD) was $0.21 per share. Mortgage Banking production reached a record $8.5 billion, marking a third consecutive quarterly record. The company's GAAP book value per common share was $7.12 at the end of the quarter. Management highlighted the sustained momentum in Mortgage Banking despite a volatile macroeconomic backdrop, driven by active distribution and technology.
Key Highlights
- 1
Redwood Trust's GAAP net loss was $(0.07) per basic and diluted common share in Q1 2026.
- 2
Non-GAAP Earnings Available for Distribution (EAD) increased to $0.21 per share, exceeding the Company’s dividend.
- 3
Mortgage Banking production reached a record $8.5 billion, up from $7.3 billion in the previous quarter.
- 4
Sequoia Mortgage Banking locked $6.5 billion of loans, up 22% from the fourth quarter 2025.
- 5
Aspire Mortgage Banking distributed $1.0 billion of loans, a 44% increase from the prior quarter.
- 6
Total Mortgage Banking Platforms GAAP net income was $36.7 million for Q1 2026.
- 7
GAAP book value per common share was $7.12 at March 31, 2026, compared to $7.36 per share at December 31, 2025.
Management Comments
Christopher Abate
“We delivered a third consecutive quarter of record mortgage banking volume, as Sequoia and Aspire continued to scale while maintaining disciplined margins. What stands out in this environment is not just the level of production, but how we’re processing it using active distribution and technology to drive capital turnover and efficiently manage risk. As we expand our product set and deepen relationships across our ecosystem, we are seeing sustained demand from institutional investors seeking consistent access to the high-quality assets we source.”
Informational and educational content only. Not investment advice.