Operational profitability remains under severe pressure, evidenced by a collapse in NOI margin to -24.3% in 2025Q2 and a swing to negative $0.03 FFO per share in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 1.16B | 1.11B | 242.5M | 158.6M | -22.1M | 539.6M | -318.03M | 327.17M | 216.17M | 239.18M | 259.55M | 214.26M | 213.22M | 270.81M | 178.71M | 89.07M | 189.33M | 131.41M | 161M | 216.56M | 901.6M | 1.03B | 721.22M | 183.44M | 79.93M | 48M | 31.49M | 28.3M | 23.3M | 35.2M | 16.9M |
| Revenue Growth % | 144.54% | 356.5% | 52.9% | 817.51% | -104.1% | 269.67% | -197.21% | 51.35% | -9.62% | -7.85% | 21.14% | 0.48% | -21.26% | 51.54% | 100.63% | -52.96% | 44.08% | -18.38% | -25.66% | -75.98% | -12.22% | 42.42% | 293.17% | 129.5% | 66.51% | 52.45% | 11.26% | 21.46% | -33.81% | 108.28% | 252.08% |
| Property Operating Expenses | 577.62M | 48.38M | 33.59M | 21.74M | 19.72M | 21.98M | 12.73M | 9.94M | 7.48M | 0 | 14.84M | 11.92M | 9.75M | 10.08M | 9.78M | 0 | 0 | 0 | 1.17M | 0 | 1.16M | 845K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 586.39M | 1.06B | 208.91M | 136.86M | -41.82M | 517.62M | -330.76M | 317.24M | 208.69M | 239.18M | 244.71M | 202.34M | 203.47M | 260.73M | 168.92M | 89.07M | 189.33M | 131.41M | 159.83M | 216.56M | 900.45M | 1.03B | 721.22M | 183.44M | 79.93M | 48M | 31.49M | 28.3M | 23.3M | 35.2M | 16.9M |
| NOI Margin % | 50.38% | 95.63% | 86.15% | 86.29% | 189.2% | 95.93% | 104% | 96.96% | 96.54% | 100% | 94.28% | 94.44% | 95.43% | 96.28% | 94.53% | 100% | 100% | 100% | 99.27% | 100% | 99.87% | 99.92% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 38.41M | 3.23M | 134.39M | 126.3M | 133.91M | 161.41M | 108.65M | 105.73M | 75.3M | 77.16M | 60.26M | 80.39M | 76.27M | 76.53M | 35.86M | 89.13M | 189.33M | 116M | -333.51M | 710M | 206.01M | 270.81M | 286.57M | 183.44M | 79.93M | 48M | 30.76M | 27.02M | 23.3M | 34.6M | 16.9M |
| G&A Expenses | 158.89M | 153.95M | 134.39M | 126.3M | 133.91M | 161.41M | 108.65M | 105.73M | 75.3M | 77.16M | 60.26M | 80.39M | 76.27M | 69.1M | 51.52M | 43.56M | 49.85M | 0 | 0 | 0 | 0 | 0 | 34.66M | 36.9M | 18.38M | 11.84M | 7.85M | 3.83M | 10.6M | 4.7M | 2.6M |
| EBITDA | 557.57M | 1.07B | 86.43M | 25.42M | -159.81M | 388.31M | -422.05M | 308.61M | 134.7M | 163.24M | 185.59M | 122.77M | 127.72M | 200.58M | 113.15M | 36.42M | 121.71M | 84.47M | -81.12M | -448.44M | 77M | 142.76M | 153.62M | 125.52M | 158.28M | 142.18M | 161.71M | 127.8M | 194.2M | 218.7M | 69.1M |
| EBITDA Margin % | 47.9% | 96.25% | 35.64% | 16.03% | 722.98% | 71.96% | 132.71% | 94.33% | 62.31% | 68.25% | 71.5% | 57.3% | 59.9% | 74.07% | 63.31% | 40.89% | 64.28% | 64.28% | -50.39% | -207.08% | 8.54% | 13.9% | 21.3% | 68.43% | 198.03% | 296.2% | 513.57% | 451.59% | 833.48% | 621.31% | 408.88% |
| Depreciation & Amortization | 9.58M | 10.06M | 11.92M | 14.85M | 15.92M | 32.09M | 17.36M | 97.1M | 1.31M | 1.21M | 1.14M | 824K | 513K | 388K | 1.87M | 1.71M | 885K | 1.28M | 1.17M | 3.24M | -60.5M | -74.63M | -87.01M | -12.38M | 9.96M | 11.23M | 4.17M | 6.8M | 32M | 27.1M | 6M |
| D&A / Revenue % | 0.82% | 0.91% | 4.91% | 9.37% | -72.03% | 5.95% | -5.46% | 29.68% | 0.61% | 0.51% | 0.44% | 0.38% | 0.24% | 0.14% | 1.05% | 1.92% | 0.47% | 0.98% | 0.73% | 1.5% | -6.71% | -7.27% | -12.06% | -6.75% | 12.46% | 23.39% | 13.24% | 24.03% | 137.34% | 76.99% | 35.5% |
| Operating Income | 547.98M | 1.06B | 74.51M | 10.57M | -175.73M | 356.22M | -439.41M | 211.51M | 133.39M | 162.02M | 184.45M | 121.94M | 127.2M | 200.19M | 111.28M | 34.71M | 120.82M | 83.19M | -82.29M | -451.68M | 137.5M | 217.39M | 240.63M | 137.9M | 148.32M | 130.96M | 157.54M | 121M | 162.2M | 191.6M | 63.1M |
| Operating Margin % | 47.08% | 95.34% | 30.73% | 6.66% | 795.01% | 66.02% | 138.17% | 64.65% | 61.71% | 67.74% | 71.06% | 56.91% | 59.66% | 73.93% | 62.27% | 38.97% | 63.81% | 63.3% | -51.11% | -208.57% | 15.25% | 21.16% | 33.36% | 75.17% | 185.56% | 272.81% | 500.32% | 427.56% | 696.14% | 544.32% | 373.37% |
| Interest Expense | 4M | 1.1B | 842.56M | 631.52M | 552M | 427M | 448M | 480M | 239M | 109M | 88.53M | 95.88M | 87M | 81M | 120.79M | 99.04M | 84.66M | 132M | 416M | 658.17M | 701.7M | 757.52M | 431.92M | 202.86M | 91.7M | 98.07M | 138.6M | 119.3M | 199.6M | 164M | 50.4M |
| Interest Coverage | - | 0.96x | 0.09x | -0.00x | 0.67x | -0.04x | -0.04x | -0.02x | 1.55x | 2.40x | 2.65x | 1.96x | 2.15x | 3.22x | 1.12x | -0.02x | 1.43x | 0.63x | -0.00x | -0.00x | 0.09x | 0.10x | 0.20x | 0.06x | -0.11x | -0.11x | -0.03x | -0.06x | -0.16x | -0.17x | -0.12x |
| Non-Operating Income | 0 | 0 | 74.51M | 10.57M | 15.92M | 358.69M | -475.57M | 192.98M | 1.31M | -109.78M | 1.14M | 824K | 513K | 388K | 1.87M | 1.71M | 885K | 1.28M | 1.17M | 3.24M | 77M | 142.76M | 153.62M | 125.52M | 9.96M | 11.23M | 4.17M | 6.77M | 32M | 27.1M | 6M |
| Pretax Income | -75.26M | -44.84M | 72.84M | -639K | -183.44M | 338.09M | -586.46M | 176.62M | 130.69M | 152.16M | 134.96M | 91.74M | 101.31M | 184.19M | 133.06M | 25.24M | 111.48M | 34.84M | -449.53M | -1.1B | 137.5M | 217.39M | 240.63M | 137.9M | 56.62M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Margin % | -6.47% | -4.05% | 30.04% | -0.4% | 829.9% | 62.66% | 184.4% | 53.98% | 60.46% | 63.62% | 52% | 42.82% | 47.51% | 68.02% | 74.46% | 28.33% | 58.88% | 26.52% | -279.21% | -509.54% | 15.25% | 21.16% | 33.36% | 75.17% | 70.83% | 0% | 0% | 0% | 0% | 0% | 0% |
| Income Tax | 16.42M | 25.18M | 18.84M | 1.64M | -19.92M | 18.48M | -4.61M | 7.44M | 11.09M | 11.75M | 3.71M | -10.35M | 744K | 10.95M | 1.29M | 42K | 280K | -4.27M | -3.21M | 5.19M | 9.97M | 17.52M | 8M | 5.5M | 0 | 98.07M | 138.6M | 119.3M | 199.6M | 164M | 50.4M |
| Effective Tax Rate % | -21.82% | -56.17% | 25.86% | -255.87% | 10.86% | 5.47% | 0.79% | 4.21% | 8.48% | 7.72% | 2.75% | -11.28% | 0.73% | 5.94% | 0.97% | 0.17% | 0.25% | -12.25% | 0.71% | -0.47% | 7.25% | 8.06% | 3.32% | 3.99% | 0% | - | - | - | - | - | - |
| Net Income | -91.68M | -70.03M | 54M | -2.27M | -163.52M | 319.61M | -581.85M | 169.18M | 119.6M | 140.41M | 131.25M | 102.09M | 100.57M | 168.35M | 127.88M | 26.34M | 110.05M | 39.2M | -444.39M | -1.11B | 127.53M | 199.87M | 232.63M | 132.39M | 56.62M | 32.89M | 18.93M | 1.73M | -37.4M | 27.6M | 12.7M |
| Net Margin % | -7.88% | -6.33% | 22.27% | -1.43% | 739.78% | 59.23% | 182.95% | 51.71% | 55.33% | 58.7% | 50.57% | 47.65% | 47.17% | 62.17% | 71.56% | 29.58% | 58.13% | 29.83% | -276.02% | -511.93% | 14.15% | 19.46% | 32.26% | 72.17% | 70.83% | 68.51% | 60.13% | 6.11% | -160.52% | 78.41% | 75.15% |
| Net Income Growth % | -329.83% | -229.67% | 2474.85% | 98.61% | -151.16% | 154.93% | -443.92% | 41.46% | -14.82% | 6.97% | 28.57% | 1.51% | -40.26% | 31.64% | 385.45% | -76.06% | 180.78% | 108.82% | 59.92% | -969.3% | -36.19% | -14.08% | 75.71% | 133.84% | 72.16% | 73.69% | 995.72% | 104.62% | -235.51% | 117.32% | 296.88% |
| Funds From Operations (FFO) | -82.09M | -59.96M | 65.92M | 12.58M | -147.6M | 351.7M | -564.48M | 266.28M | 120.91M | 141.62M | 132.39M | 102.91M | 101.08M | 168.74M | 129.76M | 28.06M | 110.94M | 40.48M | -443.22M | -1.11B | 67.03M | 125.24M | 145.62M | 120.02M | 66.58M | 44.11M | 23.1M | 8.53M | -5.4M | 54.7M | 18.7M |
| FFO Margin % | -7.05% | -5.42% | 27.18% | 7.93% | 667.74% | 65.18% | 177.49% | 81.39% | 55.93% | 59.21% | 51.01% | 48.03% | 47.41% | 62.31% | 72.61% | 31.5% | 58.59% | 30.8% | -275.29% | -510.44% | 7.43% | 12.19% | 20.19% | 65.43% | 83.29% | 91.9% | 73.38% | 30.13% | -23.18% | 155.4% | 110.65% |
| FFO Growth % | -131.26% | -190.96% | 424.01% | 108.52% | -141.97% | 162.31% | -311.99% | 120.23% | -14.62% | 6.97% | 28.65% | 1.81% | -40.09% | 30.04% | 362.49% | -74.71% | 174.07% | 109.13% | 59.9% | -1749.01% | -46.48% | -13.99% | 21.33% | 80.27% | 50.92% | 90.93% | 170.92% | 257.93% | -109.87% | 192.51% | 466.67% |
| FFO per Share | -0.66 | -0.46 | 0.50 | 0.11 | -1.26 | 2.48 | -4.95 | 1.95 | 1.10 | 1.39 | 1.35 | 1.22 | 1.19 | 1.80 | 1.61 | 0.36 | 1.41 | 0.59 | -13.42 | -39.58 | 2.55 | 4.99 | 6.55 | 6.42 | 4.21 | 4.21 | 2.60 | 0.87 | -0.41 | 4.00 | 2.14 |
| FFO Payout Ratio % | -118.62% | -165.05% | 140.92% | 702.51% | -75.66% | 26.07% | -14.88% | 48.62% | 80.06% | 62.35% | 66.82% | 92.19% | 94.25% | 55.95% | 63.41% | 358.88% | 72.01% | 202.02% | -23.22% | -13.05% | 235.05% | 117.61% | 135.03% | 115.27% | 64.86% | 59.01% | 62.89% | 47.65% | -164.81% | 57.04% | 58.82% |
| EPS (Diluted) | -0.73 | -0.63 | 0.32 | -0.11 | -1.43 | 2.37 | -5.11 | 1.46 | 1.09 | 1.60 | 1.54 | 1.18 | 1.15 | 1.94 | 1.59 | 0.31 | 1.36 | 0.55 | -13.46 | -39.70 | 4.85 | 7.96 | 10.47 | 7.04 | 3.41 | 2.88 | 1.82 | -0.10 | -3.04 | 1.81 | 1.32 |
| EPS Growth % | -457.79% | -296.88% | 390.91% | 92.31% | -160.34% | 146.38% | -450% | 33.95% | -31.87% | 3.9% | 30.51% | 2.61% | -40.72% | 22.01% | 412.9% | -77.21% | 147.27% | 104.09% | 66.1% | -918.56% | -39.07% | -23.97% | 48.72% | 106.45% | 18.4% | 58.24% | 1920% | 96.71% | -267.96% | 37.12% | 55.29% |
| EPS (Basic) | - | -0.59 | 0.32 | -0.11 | -1.43 | 2.73 | -5.19 | 1.46 | 1.41 | 1.83 | 1.66 | 1.20 | 1.18 | 2.05 | 1.61 | 0.31 | 1.37 | 0.56 | -13.45 | -39.70 | 4.96 | 8.11 | 10.85 | 7.42 | 3.52 | 2.97 | 1.84 | -0.10 | -3.04 | 1.86 | 1.45 |
| Diluted Shares Outstanding | 124.77M | 130.25M | 132.14M | 116.28M | 117.23M | 142.07M | 113.94M | 136.78M | 110.03M | 101.97M | 97.91M | 84.52M | 85.1M | 93.69M | 80.67M | 78.3M | 78.81M | 68.99M | 33.02M | 27.93M | 26.3M | 25.12M | 22.22M | 18.71M | 15.8M | 10.47M | 8.9M | 9.77M | 13.2M | 13.68M | 8.74M |
High leverage liquidity sensitivity
As reported in recent financial filings, Redwood Trust experienced a significant revenue surge to $408.1M in 2026Q1, yet this top-line expansion appears disconnected from operational profitability, as the company continues to navigate extreme quarterly fluctuations in its core mortgage banking and investment portfolio segments.
The dramatic revenue growth suggests a potential recovery in securitization volumes or favorable mark-to-market adjustments rather than a sustainable increase in recurring income. Investors should monitor whether this trajectory reflects genuine platform throughput or merely the inherent volatility of fair-value accounting in the non-agency mortgage market.
According to the provided income statement data, Redwood Trust’s NOI margin collapsed to -24.3% in 2025Q2, highlighting a persistent inability to maintain property-level profitability despite the company's reliance on a high-leverage model to drive its mortgage banking and investment activities.
The wide variance in NOI margins, ranging from 96.7% to negative territory, suggests that the company's cost structure is highly sensitive to interest rate environments and hedging efficacy. This instability implies that the firm may struggle to achieve consistent operating leverage, particularly when credit spreads widen or securitization demand cools.
Based on the company's reported figures, FFO per share has exhibited extreme volatility, swinging from a positive $0.18 in 2025Q4 to a negative $0.03 in 2026Q1, which raises significant questions regarding the long-term safety of the current dividend yield for income-focused investors.
The frequent shifts between positive and negative FFO suggest that the company's earnings quality is heavily impacted by non-cash valuation changes and transactional costs. Such inconsistency makes it difficult to rely on FFO as a stable proxy for cash flow, warranting further investigation into the underlying drivers of these earnings swings.
Financial statements indicate a debt-to-equity ratio of 22.56x, which, when viewed alongside the recent negative net margins, suggests that Redwood Trust may be operating with a precarious capital structure that leaves little room for error during periods of market liquidity contraction.
While management may argue that much of this leverage is non-recourse, the reliance on such high debt levels to fund loan pipelines creates a structural vulnerability to credit market shocks. The disconnect between headline revenue growth and bottom-line losses implies that the current business model may be over-leveraged relative to its ability to generate consistent, risk-adjusted returns.
Quick answers to the most common questions about buying RWT stock.
For fiscal year 2025, Redwood Trust, Inc. (RWT) reported total revenue of $1.11B. This represents a 6450.3% increase compared to $16.9M in 1996.
Redwood Trust, Inc. (RWT) reported a net loss of $70.0M for the fiscal year ending 2025.
Redwood Trust, Inc. (RWT) reported an operating income of $1.06B, resulting in an operating profit margin of 95.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Redwood Trust, Inc. (RWT) generated $1.06B in gross profit for the year, representing a gross profit margin of 95.6%. This demonstrates the company's core pricing power and production efficiency.