Redwood Reports GAAP Book Value Per Share Increases to $7.36
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy RWT?
Reports GAAP book value per common share was $7.36 at December 31, 2025, compared to $7.35 per share at September 30, 2025. "The past year was a transformational one for our operating platforms and reflected the progress we have made in enhancing their scale and profitability," said Christopher Abate, Chief Executive Officer of Redwood. "Across Sequoia, Aspire, and CoreVest, strong volume growth translated directly into record revenues and attractive returns, even amidst a muted housing environment. In recent months, we have taken targeted actions to further simplify our operating structure and sharpen our focus on businesses generating strong and sustainable returns, positioning the platform to realize cost savings in future periods. As we look ahead, we see a clear opportunity to further scale our core businesses, where positive operating leverage and pace of capital turnover are driving a durable earnings profile, and where incremental capital can be deployed efficiently to support continued growth."
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Analyst Views on RWT
Wall Street analysts forecast RWT stock price to rise
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 6.260
Low
6.00
Averages
7.50
High
9.50
Current: 6.260
Low
6.00
Averages
7.50
High
9.50
About RWT
Redwood Trust, Inc. is a specialty finance company focused on several distinct areas of housing credit. The Company's segments include Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. The Sequoia Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio. The CoreVest Mortgage Banking segment consists of a platform that originates business-purpose lending loans for subsequent securitization, sale, or transfer into its investment portfolio. The Redwood Investments segment consists of organic investments sourced through the Company's mortgage banking operations. Additionally, through RWT Horizons, its venture investing initiative, the Company invests in early-stage companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Capital Efficiency Improvement: By year-end 2025, over 80% of investments were concentrated in core operating activities, up from 57% in 2024, indicating effective capital restructuring to support future growth initiatives.
- Profitability Enhancement: The company reported a GAAP net income of $18.3 million for Q4, translating to $0.13 per share, a significant turnaround from the previous quarter's loss, while non-GAAP earnings available for distribution rose from $0.01 to $0.20, exceeding common dividends and reflecting improved profitability.
- Strategic Growth Outlook: Redwood Trust expects core operating performance to drive consolidated earnings above common dividends in 2026, with plans to launch the Aspire securitization platform in the coming weeks, further solidifying its market position and promoting organic growth.
See More
Redwood Trust RWT Q4 2025 Earnings Call Transcript
See More
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- Net Income Performance: The company achieved a GAAP net income of $18.3 million, translating to $0.13 per basic and diluted share, demonstrating stable profitability amidst market fluctuations and reinforcing its financial foundation.
- Slight Book Value Increase: As of December 31, 2025, the GAAP book value per common share was $7.36, a slight increase from $7.35 on September 30, 2025, reflecting ongoing improvements in asset quality that enhance shareholder value.
- Economic Return Rate: The economic return on book value for Q4 2025 was 2.6%, showcasing the company's effectiveness in capital management, which further enhances its attractiveness to investors.
See More
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- Significant Performance Growth: In Q4 2025, Redwood Trust's Mortgage Banking production reached a record $7.3 billion, driving net income to $51.3 million, marking the sixth consecutive quarter with over 20% Return on Capital, showcasing the company's strong performance in the housing market.
- Record Annual Performance: For the full year 2025, Redwood Trust achieved a total Mortgage Banking volume of $23 billion, a 111% year-over-year increase, resulting in a net income of $146.2 million and a 26% Return on Capital, indicating success in cost control and revenue enhancement.
- Stock Buyback Program: The company repurchased 9.2 million shares of common stock for $53 million in Q4 2025, resulting in a $0.13 increase in book value per share, reflecting confidence in its value and commitment to shareholder returns.
- Capital Structure Optimization: As of December 31, 2025, Redwood Trust had $256 million in unrestricted cash and cash equivalents, with capital allocation to legacy assets reduced to 19%, laying a solid foundation for future growth.
See More
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- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, which will impact shareholders' tax filings and cash flow.
- Preferred Stock Distribution Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, necessitating shareholders to plan their taxes accordingly to mitigate potential tax burdens.
- REIT Tax Implications: As Redwood operates as a Real Estate Investment Trust (REIT), the portion of qualified dividend income available to shareholders is limited, which may affect their overall tax liabilities and investment returns.
- Investor Consultation Recommendation: The company advises shareholders to consult tax advisors to ensure their tax filings align with Redwood's dividend distribution information, thereby avoiding potential tax issues from misreporting.
See More
