Redwood Trust, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the Securities and Exchange Commission on November 9, 2026, reporting a net loss of $45.5 million for the third quarter and total assets of approximately $30.4 billion.

Key Highlights

  • Net loss of $45.505 million for the three months ended September 30, 2026, compared to a net loss of $7.704 million in the same period of 2025, according to the filing.
  • Net interest income of $40.597 million for Q3 2026, up from $14.994 million in Q3 2025, driven by growth in residential consumer loan interest income.
  • Total assets reached $30.398995 billion at September 30, 2026, compared to $23.701114 billion at December 31, 2025.
  • Residential consumer loans totaled $25.173208 billion at September 30, 2026, up from $17.935761 billion at December 31, 2025.
  • Investment fair value changes, net, recorded a loss of $38.086 million for Q3 2026, contributing to a total non-interest loss of $27.683 million for the quarter.
  • 116,630,154 shares of common stock outstanding as of November 9, 2026, down from 124,459,837 at December 31, 2025.
  • Total equity declined to $831.035 million at September 30, 2026, from $982.616 million at December 31, 2025.

Redwood Trust Reports Widening Loss and Balance Sheet Expansion in Q3 2026

According to the filing, Redwood Trust (NYSE:RWT) reported a net loss of $45.505 million for the three months ended September 30, 2026, a significant increase from the $7.704 million net loss recorded in the third quarter of 2025. For the nine months ended September 30, 2026, the company disclosed a net loss of $52.108 million, compared to a net loss of $90.049 million over the same period in 2025. Basic and diluted loss per common share for Q3 2026 were each $(0.39), versus $(0.08) in Q3 2025.

The filing shows total interest income grew to $446.191 million in Q3 2026 from $299.531 million in Q3 2025, largely reflecting higher income from residential consumer loans, which rose to $376.714 million from $210.090 million. Total interest expense also increased, reaching $405.594 million for the quarter versus $284.537 million a year earlier, with asset-backed securities issued accounting for $314.861 million of that expense. The resulting net interest income was $40.597 million for Q3 2026.

Non-interest income was a net loss of $27.683 million for the quarter, the filing disclosed, compared to net non-interest income of $39.379 million in Q3 2025. Investment fair value changes, net, contributed a loss of $38.086 million, and mortgage banking activities, net, contributed $8.897 million. General and administrative expenses were $38.538 million for the quarter. On the balance sheet, total liabilities rose to $29.567960 billion from $22.718498 billion at December 31, 2025, primarily driven by asset-backed securities issued increasing to $24.154849 billion. The company also reported consolidated VIE assets of $26.286761 billion at September 30, 2026.

What Was Disclosed

Redwood Trust's 10-Q for Q3 2026 disclosed a net loss of $45.505 million for the quarter, total assets of $30.398995 billion, residential consumer loans of $25.173208 billion, and 116,630,154 common shares outstanding as of November 9, 2026.