Financial Performance - Net loss from continuing operations was $(0.31) per common share[5] - Distributable losses were $(0.14) per common share[5] - Distributable losses before realized losses were $(0.10) per common share[5] - A dividend of $0.125 per common share was declared[5] Loan Portfolio - Total loan originations amounted to $532.1 million[5] - The total loan portfolio was $7.9 billion[5] - Loan repayments and sales reached $774.7 million[5] - 60+ core delinquencies stood at 4.6%[5] Capitalization and Business Updates - Book value per share was $10.44 per common share[5] - 8.5 million shares were repurchased at an average price of $4.41, impacting BVPS by $0.31[5] - Total leverage was 3.5x, with a recourse leverage ratio of 1.5x[5] - The company completed the sale of its residential mortgage banking segment[5] - A bulk sale of legacy bridge loans, selling $494 million of multi-family bridge assets, generated net proceeds of $85 million[5]

Financial Performance - Ready Capital reported $16.9 million in revenue for the quarter ended June 2025, a year-over-year decline of 66.8% [1] - The EPS for the same period was -$0.14, compared to $0.07 a year ago, indicating a significant drop [1] - The reported revenue was a surprise of -55.9% compared to the Zacks Consensus Estimate of $38.32 million [1] - The EPS surprise was -1300% against the consensus estimate of -$0.01 [1] Key Metrics - Net interest income before provision for loan losses was $16.9 million, significantly below the average estimate of $38.32 million [4] - Total non-interest income (loss) was reported at $29.07 million, a change of -135.3% year-over-year, compared to the average estimate of $28.01 million [4] - Interest income was $152.74 million, down 34.8% from the year-ago quarter and below the estimated $173.19 million [4] - Net realized gain (loss) on financial instruments and real estate owned was $18.21 million, representing a +151.2% change year-over-year, exceeding the estimate of $14.45 million [4] - Servicing income, net was reported at -$0.3 million, a change of -109.3% year-over-year, compared to the average estimate of $5.82 million [4] Stock Performance - Shares of Ready Capital have returned -6.4% over the past month, while the Zacks S&P 500 composite increased by +1.2% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Group 1 - Ready Capital reported a quarterly loss of $0.14 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.01, and down from earnings of $0.07 per share a year ago, representing an earnings surprise of -1,300.00% [1] - The company posted revenues of $16.9 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 55.9%, and down from $50.95 million in the same quarter last year [2] - Ready Capital shares have declined approximately 38.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] Group 2 - The earnings outlook for Ready Capital is uncertain, with current consensus EPS estimates at $0.11 on revenues of $60.56 million for the coming quarter, and $0.25 on revenues of $179.01 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust sector is currently in the bottom 33% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Core Insights - Ready Capital Corporation reported a GAAP loss per common share from continuing operations of $(0.31) and a distributable loss per common share of $(0.14) for the quarter ended June 30, 2025 [1][21][22] - The company is implementing a targeted liquidation strategy on underperforming assets to restore profitability and support future reinvestment in its core multi-family bridge portfolio [2][6] Financial Performance - The company reported interest income of $152.735 million and interest expense of $(135.837) million for the quarter, resulting in a net interest income before provision for loan losses of $16.898 million [21] - The net loss from continuing operations was $(48.751) million, with a total net loss of $(53.677) million for the quarter [21][22] - Distributable earnings before realized losses were $(12.704) million, leading to a distributable loss of $(19.792) million [11][21] Asset Management - The company acquired ownership of a mixed-use asset in Portland, OR, and completed the sale of 21 loans with a carrying value of $494 million for net proceeds of $85 million [3][6] - As of June 30, 2025, the book value per share of common stock was $10.44, and the company repurchased approximately 8.5 million shares at an average price of $4.41 per share [6][19] Segment Reporting - For the second quarter, the LMM commercial real estate segment generated interest income of $122.268 million, while the small business lending segment contributed $30.467 million [24] - The total non-interest expense for the quarter was $70.277 million, with employee compensation and benefits accounting for $23.159 million [21][25] Subsequent Events - The company has secured ownership of a mixed-use asset and completed significant loan sales, indicating active management of its asset portfolio [3][6]

```markdown [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Ready Capital reported a GAAP net loss of **$(0.31)** per common share and a distributable loss of **$(0.14)** per common share for the second quarter of 2025, actively pursuing a liquidation strategy for underperforming assets to fund reinvestment into its core multi-family bridge portfolio, alongside significant loan originations, the sale of its Residential Mortgage Banking segment, and a substantial stock repurchase program | Metric | Value per Common Share | | :--- | :--- | | GAAP Loss from Continuing Operations | $(0.31) | | Distributable Loss | $(0.14) | | Distributable Loss before Realized Losses | $(0.10) | | Book Value (as of June 30, 2025) | $10.44 | - The company is implementing a targeted liquidation strategy on underperforming assets to generate liquidity for reinvestment in its Core multi-family bridge portfolio[2](index=2&type=chunk) | Operational Highlight | Value | | :--- | :--- | | LMM Commercial Real Estate Originations | $173 million | | Small Business Lending (SBL) Loan Originations | $359 million | | Stock Repurchase | ~8.5 million shares @ $4.41/share | | Senior Secured Notes Issuance | $50 million (9.375% due 2028) | - The company completed the sale of its Residential Mortgage Banking segment during the quarter[8](index=8&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=1&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company utilizes "Distributable Earnings," a non-GAAP financial measure, to offer investors greater insight into the operational performance used by management for decision-making and dividend determination, adjusting GAAP net income by excluding items such as certain unrealized gains and losses, non-cash stock compensation, and non-recurring expenses, resulting in a Distributable Loss of **$(19.8) million** for Q2 2025 from a GAAP Net Loss of **$(53.7) million** - Distributable earnings is a non-GAAP measure defined as net income adjusted for items like unrealized gains/losses on certain MBS and MSRs, changes in CECL reserve, non-cash compensation, and other non-recurring items[5](index=5&type=chunk) | (in thousands) | Three Months Ended June 30, 2025 | | :--- | :--- | | **Net Loss (GAAP)** | **$ (53,677)** | | Total reconciling items | $ 78,469 | | Income tax adjustments | $ (37,496) | | **Distributable earnings before realized losses** | **$ (12,704)** | | Realized losses on sale of investments, net of tax | $ (7,088) | | **Distributable loss** | **$ (19,792)** | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a reduction in the company's balance sheet size from year-end 2024 to June 30, 2025, with both total assets and liabilities decreasing, while the statement of operations for Q2 2025 reveals a larger net loss compared to the prior-year period, influenced by lower net interest income and significant non-interest expenses, including a substantial valuation allowance on loans held for sale [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Ready Capital's total assets stood at **$9.31 billion**, a decrease from **$10.14 billion** at December 31, 2024, with total liabilities similarly decreasing to **$7.37 billion** from **$8.20 billion** over the same period, primarily driven by a reduction in assets of consolidated VIEs and a corresponding decrease in securitized debt obligations | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$ 9,308,797** | **$ 10,141,921** | | Total Liabilities | $ 7,374,774 | $ 8,197,818 | | **Total Stockholders' Equity** | **$ 1,925,662** | **$ 1,935,742** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, the company reported a net loss of **$(53.7) million**, or **$(0.34)** per basic share, compared to a net loss of **$(34.2) million**, or **$(0.23)** per basic share, in Q2 2024, with the wider loss primarily due to a significant valuation allowance on loans held for sale of **$(39.7) million** and a loss on bargain purchase of **$(14.4) million**, and dividends declared per common share reduced to **$0.125** from **$0.30** in the prior-year quarter | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net interest income | $ 16,898 | $ 50,952 | | Total non-interest income (expense) | $ (26,671) | $ (82,393) | | **Net income (loss)** | **$ (53,677)** | **$ (34,201)** | | **Total earnings per common share - basic** | **$ (0.34)** | **$ (0.23)** | | Dividends declared per share of common stock | $ 0.125 | $ 0.30 | [Segment Performance](index=7&type=section&id=Segment%20Performance) In Q2 2025, segment performance varied significantly, with the Small Business Lending (SBL) segment generating **$3.6 million** in pre-tax income, while the LMM Commercial Real Estate segment incurred a substantial pre-tax loss of **$(63.0) million** due to valuation allowances and real estate impairments, and the Corporate-Other segment also reported a loss mainly from a loss on bargain purchase | Segment (Q2 2025, in thousands) | Income (Loss) Before Income Taxes | Total Assets | | :--- | :--- | :--- | | LMM Commercial Real Estate | $ (63,044) | $ 7,377,104 | | Small Business Lending | $ 3,627 | $ 1,530,810 | | Corporate-Other | $ (29,273) | $ 400,883 | - The LMM segment's Q2 loss was driven by a **$(39.7) million** valuation allowance on loans held for sale and a **$(4.3) million** impairment on real estate[26](index=26&type=chunk) - The SBL segment's profitability in Q2 was supported by **$15.4 million** in net realized gains on financial instruments and real estate owned[26](index=26&type=chunk) [Subsequent Events](index=1&type=section&id=Subsequent%20Events) Following the end of the second quarter, Ready Capital engaged in significant asset disposition and acquisition activities, taking ownership of a mixed-use property in Portland, OR, via a deed-in-lieu arrangement and selling a portfolio of **21 loans**, generating substantial proceeds - On July 21, 2025, the company acquired ownership of a mixed-use asset in Portland, OR, through a consensual deed-in-lieu arrangement[3](index=3&type=chunk) - On August 6, 2025, the company sold **21 loans** with a carrying value of **$494 million**, receiving net proceeds of **$85 million**[4](index=4&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) This section contains logistical details for the company's Q2 2025 earnings conference call, a standard safe harbor statement regarding forward-looking information, and a corporate profile describing Ready Capital's business focus - Management will host a conference call on August 8, 2025, to discuss the quarterly financial results[14](index=14&type=chunk) - Ready Capital Corporation is a multi-strategy real estate finance company specializing in originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans[18](index=18&type=chunk) ```

Company Announcement - Ready Capital Corporation will release its second quarter 2025 financial results after the New York Stock Exchange closes on August 7, 2025 [1] - Management will host a webcast and conference call on August 8, 2025, at 8:30 a.m. Eastern Time to provide a business update and discuss the financial results for the quarter ended June 30, 2025 [1] Webcast and Dial-in Information - The company encourages the use of the webcast due to potential extended wait times for the conference call via dial-in, with the webcast available in the Investor Relations section of the company's website [2] - The conference call can be accessed by dialing 877-407-0792 for domestic calls or 201-689-8263 for international calls [3] Replay Information - A replay of the call will be available on the company's website approximately two hours after the live call and will remain accessible through August 22, 2025 [4] - To access the replay, the domestic dial-in number is 844-512-2921 and the international number is 412-317-6671, with a replay pin number of 13753253 [4] Company Overview - Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances, and services investor and owner-occupied commercial real estate loans [5] - The company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans under its Section 7(a) program [5] - Headquartered in New York, the company employs approximately 500 professionals nationwide [5]

This real estate investment trust is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -114.3%. Revenues are expected to be $38.32 million, down 24.8% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 5.88% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this ...

Core Viewpoint - The Broadmark Realty Capital Inc. class action lawsuit alleges violations of the Securities Exchange Act of 1934 related to the merger with Ready Capital Corporation, with claims of misleading statements in the proxy statement used for shareholder approval [1][3]. Group 1: Lawsuit Details - The class action lawsuit is titled Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.) and involves Broadmark, Ready Capital, and certain executives and directors from both companies [1][2]. - The lawsuit claims that a significant portion of Ready Capital's borrowers faced financial distress due to high interest rates, which increased their borrowing costs [3]. - It is alleged that an oversupply of multifamily properties in Ready Capital's markets limited borrowers' ability to raise rents to cover growing debt costs [3]. - A major development project acquired during the merger, valued at approximately $500 million, faced significant setbacks, including cost overruns and construction delays [3]. - The lawsuit contends that Ready Capital's expected credit losses were materially understated, affecting financial projections related to earnings and dividends [3]. Group 2: Legal Process and Representation - Investors who held Broadmark common stock as of the merger record date can seek appointment as lead plaintiff in the class action lawsuit [5]. - The lead plaintiff will represent the interests of all class members and can choose a law firm for litigation [5]. - Robbins Geller Rudman & Dowd LLP, the law firm representing the plaintiffs, has a strong track record in securities fraud cases, having recovered over $2.5 billion for investors in 2024 alone [6].

NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE: RC) (with its affiliates, "Ready Capital" or the "Company"), a multi-strategy real estate finance company that originates, acquires, finances, and services investor and owner-occupied commercial real estate loans, today announced that it has secured ownership of Block 216 Tower, a mixed-use Project (the "Project") located in downtown Portland, Oregon. Ready Capital acquired the construction loan on the Project through its 2022 merg ...

Core Viewpoint - A class action lawsuit has been filed against Broadmark Realty Capital Inc. and Ready Capital Corporation for alleged violations of federal securities laws related to their merger [1][2]. Group 1: Lawsuit Details - The lawsuit seeks damages for investors who held Broadmark common stock as of May 30, 2023, the date of the merger with Ready Capital [2]. - The complaint alleges that the proxy statement soliciting shareholder support for the merger contained false or misleading statements and failed to disclose significant financial distress among borrowers in Ready Capital's portfolio due to high interest rates [3]. - It is claimed that an oversupply of multifamily properties limited the ability of Ready Capital borrowers to raise rents to cover growing debt costs [3]. - A major development project acquired during the merger, valued at approximately $500 million, faced severe setbacks including cost overruns and construction delays, which were not disclosed [3]. - As a result of these issues, Ready Capital's expected credit losses and financial projections were materially understated [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Broadmark have until July 28, 2025, to request to be appointed as lead plaintiff in the class action [4]. - The law firm representing the investors operates on a contingency fee basis, meaning they will only collect fees if the case is successful [5]. Group 3: Law Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized law firm specializing in securities fraud class actions and has recovered hundreds of millions for investors [6].