Ready Capital Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a GAAP net loss of $62.2 million for the quarter ended September 30, 2026, compared to a net loss of $16.7 million in the same period in 2025.
• GAAP loss per common share was $(0.40) for the quarter, compared to $(0.13) in the prior year period.
• Distributable loss per common share was $(0.53), compared to a distributable loss per share of $(0.21) before realized losses.
• Distributable loss before realized losses was $(31.2 million) for the quarter.
• Total non-interest income was $25.3 million for the quarter, down from $74.9 million in the prior year period.
• Net interest income before provision for loan losses was $1.0 million for the quarter, compared to $10.5 million in the prior year period.
• Provision for loan losses was $12.7 million for the quarter, compared to $38.0 million in the prior year period.
• Total non-interest expense was $77.7 million for the quarter, compared to $74.3 million in the prior year period.
• Cash and cash equivalents were $157.1 million as of September 30, 2026, down from $207.8 million as of December 31, 2025.
• Book value per share was $6.44 as of September 30, 2026.
• Total leverage was 2.8x with recourse leverage of 1.5x.

Guidance and Future Outlook:

• Management stated immediate priorities are bringing distributable earnings and free cash flow to breakeven.
• Management identified resolving the remaining legacy non-performing commercial loan portfolio as a key priority.
• The company has retired all 2026 corporate maturities following the scheduled repayment of November notes.

Business Segments and Product Lines:

• Total loan originations for the quarter were $303.4 million, including $132.9 million of LMM commercial real estate loans and $109.3 million of Small Business Administration 7(a) loans.
• LMM Commercial Real Estate segment reported a net interest loss after provision of $(16.8 million) and a total loss before tax of $(49.0 million) for the quarter.
• Small Business Lending segment reported a net interest income after provision of $4.1 million and a total loss before tax of $(0.9 million) for the quarter.
• Portland Ritz project sold 52 Ritz-Carlton branded condominium units to date, representing 39% completion.
• Hotel occupancy at Portland Ritz increased 18% year-over-year to 58%, with a 35% increase in Room RevPar to $271.

Market and Competitive Landscape:

• No specific market share data or direct competitor comparisons were provided in the press release.

Risks and Challenges:

• The press release notes the existence of a legacy non-performing commercial loan portfolio that requires resolution.
• Forward-looking statements highlight risks including regulatory changes, capital market volatility, availability of financing, interest rate changes, and increased rates of default or decreased recovery rates.

Management Commentary and Tone:

• Thomas Capasse, Chairman and CEO, noted that retiring all 2026 corporate maturities was a milestone that drove company activities over the last year.
• Management expressed a focus on operational stability, specifically targeting breakeven for distributable earnings and free cash flow.

Other Key Points:

• Issued $225.0 million in aggregate principal amount of 10.00% Senior Secured Notes due 2031.
• Retired the entire $350.0 million 4.50% Senior Secured Notes in September 2026.
• Ended the quarter with $606 million in unencumbered assets.
• Dividends declared per share of common stock were $0.01 for the quarter.
• Management hosted a webcast and conference call on November 6, 2026, to discuss results.