Redwood Trust — Third Quarter 2026 Earnings Summary

Redwood Trust reported a GAAP net loss of $47.3 million for the third quarter of 2026, resulting in a net loss of $0.39 per share and a decline in book value to $6.56. The company announced a strategic plan to transition to a C-corporation in 2027, which is expected to increase GAAP book value by $0.73 to $0.77 per share in the fourth quarter of 2026. During the quarter, the Mortgage Banking platforms generated $27.0 million in GAAP net income and distributed $8.8 billion of loans, while the Legacy Investments segment recorded a loss of $45.0 million. Additionally, Redwood upsized its secured financing facility with CPP Investments and Stone Point Credit, extending the maturity date to March 2030.