RWT

MILL VALLEY, Calif., September 10, 2026--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; "Redwood" or the "Company"), a leader in expanding access to housing for homebuyers and renters, today announced that its Board of Directors (the "Board") has declared third quarter 2026 common and preferred stock dividends. Common Stock Dividend The Board has authorized the declaration of a third quarter 2026 regular common stock dividend of $0.18 per share, unchanged from the second quarter of 2026. This marks the Company's 109th consecutive quarterly common dividend. The third quarter 2026 common stock dividend is payable on September 30, 2026 to stockholders of record on September 23, 2026. Preferred Stock Dividend In accordance with the terms of Redwood’s 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series A"), the Board authorized the declaration of a Series A dividend for the third quarter of 2026 of $0.625 per share. Dividends for the Series A are payable on October 15, 2026 to stockholders of record on October 1, 2026. About Redwood Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. Redwood Investments also includes RWT Horizons®, our unified technology platform spanning internal AI innovation and strategic investments across the ecosystem, which supports our efforts to develop an AI-first operating model that enables compounding operational leverage and scalable growth. This reflects how we manage and organize our business and may differ from the manner in which our reportable segments are presented for financial reporting purposes. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/20260909669485/en/ Contacts Investor RelationsPhone: 866-269-4976Email: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record mortgage banking productivity with over $8 billion in volume for the second consecutive quarter, driven by a diversified product mix and high capital turnover. Transitioning to an AI-native platform to drive operating leverage, resulting in a 28% improvement in direct expenses as a percentage of volume compared to 2025. Leveraging proprietary multi-agent AI systems to automate complex tasks like seller financial reviews and contract analysis, saving approximately 23,600 annualized hours. Positioned as a critical capital partner for banks facing Basel III Endgame constraints, focusing on transferring interest rate convexity risk rather than credit risk. Reduced dependence on any single product or refinance cycle by expanding Sequoia's new product offerings to 30% of lock volume and scaling the Aspire non-QM platform. Utilizing the RWT Horizons venture fund to access early-stage technology, highlighted by a seed investment currently valued at 27x cost. Targeting a 10% market share for the Aspire non-QM platform by year-end 2026, up from the current 5% to 6% range, through product innovation and new joint ventures. Anticipating further declines in the expense-to-volume ratio as technology-driven efficiency gains and platform scalability continue to compound. Projecting the legacy investment segment to fall below 5% of total capital by year-end 2026, facilitating a shift toward higher-returning mortgage banking activities. Estimating that every $100 million of capital redeployed from legacy assets could improve consolidated EAD ROE by 200 to 400 basis points. Expects the new Castlelake joint venture to visibly enhance capital velocity and fee economics in the second half of 2026. Legacy investments generated a $14 million EAD loss, acting as a significant drag on consolidated performance due to negative carry and fair value pressure on bridge loans. CoreVest production was impacted by legislative uncertainty regarding institutional ownership, though recent clarity in the housing bill is expected to reopen activity. The company is aggressively marketing a substantial portion of remaining unsecuritized legacy bridge loans to unlock capital and reduce secured debt. Maintained a cautious operating posture in early Q2 due to geopolitical uncertainty and rate volatility, with 40% of quarterly volume concentrated in June as conditions stabilized. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are on track to reduce legacy capital to below 5% by year-end, with a recent HEI transaction already bringing it below 10% pro forma. The priority is balancing disposition speed with execution to eliminate the $0.14 to $0.15 per share quarterly negative carry associated with these assets. The 64 basis point expense ratio was driven by volume scale and variable cost structures, but the next 10-15 basis points of improvement are expected to come specifically from AI integration. AI is being used to rethink the operating model entirely rather than just making incremental changes, allowing the platform to handle significantly larger volumes. Management observed large money center banks leaning back into volume at lower margins, potentially front-running anticipated regulatory capital changes. Redwood is positioning itself as a holistic partner for regional banks, facilitating two-way flows where Redwood provides the capital and technology while banks retain the client relationship. Clarity in the 'ROAD to Housing Act' regarding build-for-rent exemptions has led to a 40% increase in term sheets issued since the spring trough. Management expects a mix shift toward build-for-rent and middle-market investor projects as 'frozen' capital on the sidelines begins to move.

MILL VALLEY, Calif., July 28, 2026--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE:RWT; "Redwood", the "Company"), a leader in expanding access to housing for homebuyers and renters, today reported its financial results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights On a consolidated basis, GAAP net loss was $(0.03) per basic and diluted common share. Non-GAAP Earnings Available for Distribution ("EAD") was $0.15 per share(1), and non-GAAP Core Segments EAD was $0.25(2) Mortgage Banking(3) production exceeded $8 billion for the second consecutive quarter, the second highest quarterly volume in the Company’s history and nearly double the same period last year AI-enabled automation continued to deliver tangible efficiency gains, increasing annualized time savings from 2026 initiatives to approximately 23,600 hours, up more than 50% from the first quarter baseline, with notable impacts on due diligence costs, rate sheet pricing and guideline analysis Key Financial Second Quarter 2026 Results and Metrics GAAP book value per common share was $6.90 at June 30, 2026, compared to $7.12 per share at March 31, 2026 GAAP net loss of $(2.9) million or $(0.03) per basic and diluted common share Non-GAAP Earnings Available for Distribution ("EAD") of $20.3 million or $0.15 per basic common share(1) Non-GAAP Core Segments Earnings Available for Distribution ("Core Segments EAD") of $34.0 million, or $0.25 per basic common share(2) Declared and paid a regular quarterly dividend of $0.18 per common share "This quarter further reinforced our confidence in the direction of the business. We generated more than $8 billion of mortgage banking production while continuing to prioritize profitability over headline volume. Although market volatility remained elevated through much of the quarter, we adapted our operating posture as conditions evolved and finished the period with strong momentum," said Christopher Abate, Chief Executive Officer of Redwood Trust. "The business we operate today is fundamentally different than it was only a few years ago. A growing share of our earnings is being generated by our operating platforms, reflecting the strategic investments we've made across the business. We believe continued execution against this strategy will create significant long-term value for shareholders." Mortgage Banking Platforms(3) Total Mortgage Banking platforms(3) GAAP net income of $40.1 million, up 9% from the first quarter 2026 Generated 33% annualized return on capital ("ROC")(4)(6) Purchasing power under joint venture partnerships now totals ~$18 billion across our operating platforms, advancing our efforts to reduce capital turn times and scale production volumes with growing, predictable revenue streams Sequoia Mortgage Banking(6) Gain on sale margin of 92 basis points, at the higher end of the Company’s target range Locked $5.6 billion of loans in the second quarter, reflecting a more measured operating posture during April and May amid heightened market volatility and elevated interest rates(7) Distribution activity kept pace with lock volume, with $6.5 billion of loans distributed across securitizations ($5.3 billion) and whole loan sales ($1.2 billion) Cost per loan of 17 basis points in the second quarter(8), compared to 18 basis points in the first quarter 2026, maintaining operating scale benefits Aspire Mortgage Banking(6) Gain on sale margins of 101 basis points, compared to 73 basis points in the first quarter 2026 Locked a record $2.1 billion of loans in the second quarter, a 31% increase from the prior quarter(7) Distributed $1.3 billion of loans through a combination of securitizations ($920 million) and whole loan sales ($393 million) CoreVest Mortgage Banking(6) Funded $410 million of loans (55% bridge and 45% term) in the second quarter, a 5% decrease from the first quarter 2026 largely due to higher rate environment impacting the term loan pipeline Distributed $375 million of newly-originated loans through whole loan sales, securitizations and sales to a joint venture ("JV") Added a new loan servicer that is expected to reduce asset management administrative workload, enhance servicing capabilities, and lower overall servicing costs Redwood Investments Generated a segment GAAP net income of $0.7 million in the second quarter, an improvement of $9 million from the first quarter Redwood Investments recourse leverage ratio of 0.9x at June 30, 2026(9) Legacy Investments Segment GAAP net loss of $(23.3) million Adjusted for activity to date in the third quarter, segment capital allocation now estimated to represent less than 10% of total capital, down from 15% at March 31, 2026 Legacy Investments recourse leverage ratio of 2.1x at June 30, 2026(10) Capital and Financing Unrestricted cash and cash equivalents of $192 million at June 30, 2026 Recourse debt of $4.5 billion at June 30, 2026 compared to $4.7 billion at March 31, 2026(11) Capital allocation and funding flexibility remained central priorities during the quarter Enhanced financing economics across key facilities through tighter spreads and improved advance rates, while continuing to evaluate forward financing solutions to improve bulk purchase, distribution, and collateral financing efficiencies Second Quarter 2026 Redwood Review and Supplemental Tables Available Online A further discussion of Redwood's business and financial results is included in the second quarter 2026 Shareholder Letter and Redwood Review which are available under "Financial Info" within the Investor Relations section of the Company’s website at redwoodtrust.com/investor-relations. Additional supplemental financial tables can also be found within this section of the Company's website. Conference Call and Webcast Redwood will host an earnings call today, July 28, 2026, at 8:00 a.m. Eastern Time / 5:00 a.m. Pacific Time to discuss its second quarter 2026 financial results. The number to dial in order to listen to the conference call is 1-877-423-9813 in the U.S. and Canada. International callers must dial 1-201-689-8573. A replay of the call will be available through midnight on Tuesday, August 11, 2026, and can be accessed by dialing 1-844-512-2921 in the U.S. and Canada or 1-412-317-6671 internationally and entering access code #13761483. The conference call will be webcast live in listen-only mode through the News & Events section of Redwood’s Investor Relations website at https://www.redwoodtrust.com/investor-relations/news-events/events. To listen to the webcast, please go to Redwood's website at least 15 minutes before the call to register and to download and install any audio software needed. An audio replay of the call will also be available on Redwood's website following the call. Redwood plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission by Monday, August 10, 2026, and also make it available on Redwood’s website. Non-GAAP Disclosures To supplement consolidated and segment financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also provides Earnings Available for Distribution ("EAD"), EAD Return on Equity ("EAD ROE"), Core Segments Earnings Available for Distribution ("Core Segments EAD") and Core Segments EAD Return on Equity ("Core Segments EAD ROE") as non-GAAP measures. Management believes these non-GAAP measures provide useful supplemental information to investors and management in evaluating the Company’s operating performance, facilitating comparisons to industry peers, and assessing the current income-generating capacity of the Company’s operating platforms as of the period presented, including the Company’s ability to pay dividends. These measures also assist in evaluating the Company’s ongoing transition to a more scalable and simplified business model, including the wind-down of legacy portfolio holdings within the Legacy Investments segment. These non-GAAP measures should not be utilized in isolation, nor should they be considered as an alternative to GAAP net income (loss) available (related) to common stockholders, or other measurements of results of operations computed in accordance with GAAP or for federal income tax purposes. Earnings Available for Distribution ("EAD") and EAD ROE are non-GAAP financial measures that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items. EAD ROE is defined as EAD divided by average common equity. Core Segments EAD and Core Segments EAD ROE represent management’s non-GAAP assessment of the combined performance of the Company’s mortgage banking platforms and related investments, which include the Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments segments (collectively, the "Core Segments"), together with an allocated portion of the Corporate segment attributable to those operations. Core Segments EAD excludes the Legacy Investments segment and the portion of the Corporate segment attributable to Legacy Investments. Core Segments EAD ROE is calculated as Core Segments EAD divided by the average capital utilized by the Core Segments during the period, which represents management’s internal estimate of the average economic capital allocated to support Core Segments activities. About Redwood Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. Redwood Investments also includes RWT Horizons®, our unified technology platform spanning internal AI innovation and strategic investments across the ecosystem, which supports our efforts to develop an AI-first operating model that enables compounding operational leverage and scalable growth. This reflects how we manage and organize our business and may differ from the manner in which our reportable segments are presented for financial reporting purposes. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn. Cautionary Statement; Forward-Looking Statements: This press release and the related conference call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing for the filing of Redwood's Quarterly Report on Form 10-Q. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ from Redwood's beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, opportunities, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2025 under the caption "Risk Factors." Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-K, 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728779870/en/ Contacts Investor RelationsPhone: 866-269-4976Email: [email protected]

Redwood Trust (RWT) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.85%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.28 per share when it actually produced earnings of $0.28, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Redwood Trust, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $32.1 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 26.2%. This compares to year-ago revenues of $13.8 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Redwood Trust shares have lost about 10.7% since the beginning of the year versus the S&P 500's gain of 8.3%. While Redwood Trust has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Redwood Trust was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $44.6 million in revenues for the coming quarter and $1.07 on $168.95 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, TPG Mortgage Investment Trust (MITT), has yet to report results for the quarter ended June 2026. This real estate investment trust is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +44.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. TPG Mortgage Investment Trust's revenues are expected to be $22 million, up 23.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Redwood Trust, Inc. (RWT) : Free Stock Analysis Report TPG Mortgage Investment Trust Inc. (MITT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Mortgage Banking Volume: Exceeded $8 billion for the second straight quarter. Securitizations: Over 20 securitizations in the first half of the year; three securitizations priced in a single week. Direct Expenses: 64 basis points as a percentage of volume for the first half of 2026, a 28% improvement from 2025. Annualized Time Savings: Increased to approximately 23,600 hours due to AI-enabled automation initiatives. Annual Volume Growth: 90% with consistent margins. Sequoia Lock Volume: $5.6 billion in the second quarter. Gain-on-Sale Margins: 92 basis points overall, compared to 96 basis points in the first quarter. Aspire Lock Volume: Over $2 billion in the second quarter, up 31% from Q1. GAAP Net Loss: $3 million, or $0.03 per share. Book Value per Common Share: $6.90 at June 30, a 3% decline from March 31. Earnings Available for Distribution (EAD): $20 million or $0.15 per share. Mortgage Banking Net Revenue: Remained flat despite a 6% decline in production. Operating Expenses: Down 21% in the quarter, with G&A declining to $38 million from $49 million. Recourse Debt: Declined by approximately $150 million to $4.5 billion. Unrestricted Cash: $192 million at the end of the quarter. Warning! GuruFocus has detected 5 Warning Signs with RWT. Is RWT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Redwood Trust Inc (NYSE:RWT) exceeded $8 billion in mortgage banking volume for the second consecutive quarter, showcasing strong operational performance. The company achieved a significant milestone by pricing three securitizations in a single week, a first in its 32-year history. Redwood Trust Inc (NYSE:RWT) is leveraging AI technology to enhance operational efficiency, resulting in a 28% improvement in direct expenses as a percentage of volume compared to the previous year. The company's RWT Horizons venture fund has successfully invested in early-stage AI companies, with one investment valued at approximately 27 times the initial cost. Redwood Trust Inc (NYSE:RWT) has established strong partnerships with 70% of the top 50 banks in the US, enhancing its role in the banking system and providing a competitive edge. Redwood Trust Inc (NYSE:RWT) reported a GAAP net loss of $3 million for the second quarter, indicating financial challenges. The company's book value per common share declined by 3% from the previous quarter, primarily due to marked-to-market changes and ongoing carry costs within legacy investments. Legacy investments generated a $14 million EAD loss, highlighting the negative impact of non-core portfolio holdings. The company faces headwinds from high interest rates and regulatory challenges, impacting the addressable mortgage market. CoreVest, a segment of Redwood Trust Inc (NYSE:RWT), experienced a 5% decline in funded loans due to higher rates and legislative uncertainty. Q: How much of the $195 million in legacy investments do you expect to realize and reinvest into the business? A: Dashiell Robinson, President, stated that they aim to reduce the legacy investment segment to below 5% of capital by the end of the year. They are working on a disposition plan for unsecuritized bridge loans and are confident in redeploying the capital efficiently into mortgage banking, which continues to see strong volumes. Q: How did the execution of a transaction at the beginning of the third quarter affect the valuation of the portfolio at the end of the second quarter? A: Brooke Carillo, CFO, explained that the valuation at the end of the second quarter was informed by the execution of the third quarter deal. The legacy bridge portfolio is marked to fair value, and they are responsive to market conditions for disposing of assets. Q: How are you managing banking volume sensitivity to interest rates and volatility? A: Christopher Abate, CEO, noted that they were cautious in the second quarter due to rate volatility but saw strong volume in June. They remain risk-minded and responsive to macro conditions, with July showing strong mortgage banking performance. Q: What are your expectations for expense efficiency improvements driven by technology investments? A: Abhinav Asthana, CTO, highlighted that Redwood is re-engineering its operating model with AI, leading to significant efficiencies. Brooke Carillo added that technology and platform scalability are expected to drive further improvements in expense efficiency. Q: How resilient are gain-on-sale margins given bank competition? A: Christopher Abate stated that despite banks leaning in aggressively, Redwood maintained its margins by focusing on risk management and preserving margins rather than chasing volume. They continue to be a holistic partner to banks, leveraging relationships and technology. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Redwood Trust, Inc.? Here are five stocks we like better. Mortgage banking remained profitable: Redwood exceeded $8 billion in mortgage banking volume for the second consecutive quarter, while core segments generated $34 million in EAD and an 18.5% annualized return on equity despite a 6% production decline. Legacy portfolio reduction accelerated: Legacy investments fell to 12% of total capital, down from 15% in the prior quarter and 63% year over year. Redwood aims to reduce the segment below 5% of capital by the end of 2026, although it produced a $23 million GAAP loss in the quarter. Technology and platform expansion supported efficiency: AI-enabled automation generated approximately 23,600 annualized hours of time savings, while operating expenses declined 21% sequentially. Redwood also expanded products, launched a HELOC offering, and secured a potential $8 billion purchasing-capacity joint venture for Aspire. Redwood Trust (NYSE:RWT) reported a second-quarter GAAP net loss of $3 million, or $0.03 per share, while its mortgage banking platforms continued to generate returns above 20% and the company advanced efforts to reduce its legacy investment portfolio. Chief Executive Officer Chris Abate said Redwood exceeded $8 billion in mortgage banking volume for the second consecutive quarter and completed more than 20 securitizations in the first half of 2026. The company ended the quarter by pricing three securitizations in one week, representing each of its operating platforms: Sequoia, Aspire and CoreVest. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Management emphasized technology, product expansion, bank relationships and capital reallocation as central elements of its strategy amid elevated mortgage rates and weak housing activity. Abate said Redwood is building what he described as an “AI-native housing finance platform,” using internally developed systems to support activities including seller financial reviews, guideline comparisons and contract analysis. Redwood said direct expenses represented 64 basis points of production volume in the first half of 2026, a 28% improvement from full-year 2025. Annualized time savings from AI-enabled automation initiatives reached about 23,600 hours, more than 50% above the first-quarter baseline, according to management. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Chief Technology Officer Abhinav Asthana said the company is seeking to redesign operating processes rather than simply adding AI tools to existing workflows. He said the technology platforms are intended to accommodate growing volume at greater efficiency. Chief Financial Officer Brooke Carillo said the company expects the next 10 to 15 basis points of expense improvement to be driven more substantially by technology and continued platform scalability. Total operating expenses declined 21% sequentially, while general and administrative expenses fell to $38 million from $49 million. About $7 million of the reduction reflected restructuring charges recorded in the first quarter, management said. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Redwood’s core segments generated $34 million in earnings available for distribution, or EAD, during the quarter, equating to an 18.5% annualized return on equity. In contrast, legacy investments generated a $14 million EAD loss. Aggregate mortgage banking net revenue was essentially unchanged from the prior quarter despite a roughly 6% decline in production, as margins held steady to improved and direct expenses declined. Redwood’s operating platforms produced a 33% annualized return on average capital, while average capital required per dollar of production decreased to about 2.6% in the first half from roughly 3% a year earlier. Sequoia: Lock volume totaled $5.6 billion. Gain-on-sale margins were 92 basis points, compared with 96 basis points in the first quarter. The platform completed nine securitizations and $1.2 billion of whole-loan sales, nearly all to banks. More than 65% of Sequoia production was purchase-money loans. Aspire: Record lock volume increased 31% sequentially to $2.1 billion. GAAP net income rose to $7 million from $2 million in the first quarter, while gain-on-sale margins climbed to 101 basis points from 73 basis points as securitization spreads normalized and hedge performance improved. CoreVest: Loan funding totaled $410 million, down about 5% from the first quarter. The segment reported $1 million of GAAP net income, compared with a $3 million loss in the prior quarter that included about $5 million of restructuring charges. President Dash Robinson said newly launched Sequoia products accounted for more than 30% of quarterly lock volume. The company also introduced a HELOC product within Sequoia and expanded its Medical Professionals loan program, which completed a second securitization in July that priced inside its inaugural issuance. Aspire completed its second and third securitizations under its shelf during the quarter. Redwood said 60-plus-day delinquencies in Aspire’s securitized population were below 10 basis points as of June 30. Subsequent to quarter-end, the company executed definitive documentation for a dedicated joint venture with Crayhill Capital Management that could have purchasing power of up to $8 billion of loans over time. Redwood continued reallocating capital away from its legacy investment segment, which accounted for 12% of overall capital at quarter-end, down from 15% at March 31 and 63% below the level one year earlier. The company said it began formally marketing a substantial portion of its remaining legacy bridge loans early in the third quarter and priced a financing arrangement for the remainder of its home equity investment portfolio. Robinson said the financing transaction is expected on a pro forma basis to reduce capital allocated to legacy investments below 10%. Redwood continues to target reducing the segment to below 5% of capital by the end of 2026. Legacy investments generated a $23 million GAAP loss, including $12 million of negative fair-value changes, primarily related to bridge loans. Carillo said each $100 million of capital redeployed from the legacy portfolio could improve consolidated EAD return on equity by approximately 200 to 400 basis points through reinvestment in operating platforms or potentially through share repurchases at suitable levels. Book value per common share was $6.90 at June 30, down 3% from $7.12 at the end of the first quarter. Management attributed the decline primarily to mark-to-market changes and carrying costs in legacy investments, as well as the company’s $0.18 common dividend. During the question-and-answer session, management said book value had recovered approximately 1% quarter-to-date. Redwood ended the quarter with $192 million of unrestricted cash, about $100 million of unencumbered assets and $3.7 billion of excess warehouse capacity. Recourse debt declined by about $150 million to $4.5 billion, while recourse leverage declined modestly to five times. Management said Redwood adopted a more cautious posture during the volatile early portion of the second quarter but increased activity in June, when it generated about 40% of quarterly volume. Robinson said July had been a relatively strong month for mortgage banking, though the company remains attentive to higher rates and broader market conditions. Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products. The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Redwood Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Wall Street expects a year-over-year increase in earnings on lower revenues when Blackstone Mortgage Trust (BXMT) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This real estate finance company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $82.4 million, down 13.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 15.79% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Blackstone Mortgage, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -15.05%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Blackstone Mortgage will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Blackstone Mortgage would post earnings of $0.38 per share when it actually produced earnings of $0.49, delivering a surprise of +28.95%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Blackstone Mortgage doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks REIT and Equity Trust industry, Redwood Trust (RWT), is soon expected to post earnings of $0.26 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +44.4%. Revenues for the quarter are expected to be $43.5 million, up 215.2% from the year-ago quarter. The consensus EPS estimate for Redwood Trust has been revised 19.7% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. When combined with a Zacks Rank of #5 (Strong Sell), this Earnings ESP makes it difficult to conclusively predict that Redwood Trust will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackstone Mortgage Trust, Inc. (BXMT) : Free Stock Analysis Report Redwood Trust, Inc. (RWT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MILL VALLEY, Calif., July 14, 2026--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; "Redwood" or the "Company"), a leader in expanding access to housing for homebuyers and renters, is scheduled to release its second quarter 2026 results on Tuesday, July 28, 2026, before the open of the New York Stock Exchange. In addition, Redwood's senior management team plans to hold a conference call to discuss its second quarter 2026 financial results that same morning at 8:00 a.m. Eastern Time / 5:00 a.m. Pacific Time. Webcast Information The conference call will be webcast live in listen-only mode through the News & Events section of Redwood Trust’s Investor Relations website at https://www.redwoodtrust.com/investor-relations/news-events/events. To listen to the webcast, please go to Redwood's website at least 15 minutes before the call to register and to download and install any needed audio software. An audio replay of the call will also be available on Redwood's website following the call. Conference Call Information To participate by phone, please dial-in at least 15 minutes prior to the start time to allow for wait times to access the conference call. The live conference call will be accessible domestically or internationally, by dialing 1-877-423-9813 or 1-201-689-8573, respectively. In addition to the aforementioned dial-in information, participants can also access the call, bypassing the live operator and receiving an instant callback, by accessing the callback link on the Investor Relations section of the Company’s website or using the following link (this feature is available 15 minutes prior to the scheduled event): https://callme.viavid.com/viavid/?callme=true&passcode=13721503&h=true&info=company&r=true&B=6. A replay of the conference call will be available after 12:00 p.m. Eastern Time / 9:00 a.m. Pacific Time on Tuesday, July 28, 2026, through 11:59 p.m. Eastern Time / 8:59 p.m. Pacific Time on Tuesday, August 11, 2026. To access the replay, listeners may use 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 13761483. ABOUT REDWOOD TRUST Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. Redwood Investments also includes RWT Horizons®, our unified technology platform spanning internal AI innovation and strategic investments across the ecosystem, which supports our efforts to develop an AI-first operating model that enables compounding operational leverage and scalable growth. This reflects how we manage and organize our business and may differ from the manner in which our reporting segments are presented for financial reporting purposes. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/20260714266040/en/ Contacts Investor RelationsPhone: 415-384-3822Email: [email protected]