Redwood Trust's Q2 net loss at $100.2 mln

Redwood Trust

30/07/2025 12:23

Overview

Redwood Trust Q2 GAAP net loss $100.2 mln, driven by Legacy Investments

Adjusted EPS for Q2 meets analyst expectations, per LSEG data

Company upsized share repurchase authorization to $150 mln, signaling strategic confidence

Outlook

Redwood Trust expects to generate $200-$250 mln capital by year-end 2025

Company sees transformative growth in mortgage banking platforms

Company anticipates benefiting from housing finance reforms

Result Drivers

LEGACY INVESTMENTS - Losses driven by fair value adjustments and anticipated resolutions on legacy bridge loans and non-core assets

MORTGAGE BANKING - Platforms continue to scale profitably with GAAP returns above 20% for four consecutive quarters

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Meet
$0.18
$0.18 (8 Analysts)
Q2 Net Interest Income
$13.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy"

Wall Street's median 12-month price target for Redwood Trust Inc is $7.00, about 13.3% above its July 29 closing price of $6.07

Press Release: ID:nBw9bRSJTa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)