Redwood Trust reported its third‑quarter 2025 financial results, posting a record $6.8‑$7.0 billion in mortgage‑banking production and a GAAP net loss of $9.5 million for the quarter ended September 30, 2025.
Non‑GAAP earnings available for distribution rose to $0.20 per share from $0.18 in the prior quarter, while book value per share fell to $7.35 from $7.49. Segment results showed Sequoia Mortgage Banking generating $34.3 million in net income, CoreVest $3.5 million, and Redwood Investments $10.3 million, offset by a $22.2 million loss in Legacy Investments and a $35.4 million loss in Corporate/Other.
The company highlighted a strategic shift toward a core operating model, reducing legacy portfolio holdings to focus on mortgage banking and capital‑light growth. Management noted that the falling‑rate environment is expected to support higher transaction activity.
Redwood continues to pay its regular $0.18 dividend per share. The company did not issue new forward guidance in the release, but reiterated its focus on streamlining legacy assets and expanding its mortgage‑banking platforms.
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