Here's What Key Metrics Tell Us About Redwood Trust (RWT) Q3 Earnings

Core Insights - Redwood Trust reported a revenue of $15 million for the quarter ended September 2025, reflecting a decline of 41.2% year-over-year and falling short of the Zacks Consensus Estimate of $30.01 million by 50.02% [1] - The company's EPS was $0.20, an increase from $0.18 in the same quarter last year, resulting in a positive EPS surprise of 25% against the consensus estimate of $0.16 [1] Financial Performance Metrics - Net interest income was reported at $15 million, significantly below the three-analyst average estimate of $29.98 million [4] - Non-interest income from Sequoia mortgage banking activities was $28.7 million, exceeding the average estimate of $25.02 million [4] - Total non-interest income was $39.4 million, which was lower than the average estimate of $51.23 million [4] - Non-interest income from mortgage banking activities was $40.1 million, slightly above the estimated $38.76 million [4] - HEI income netted $0.5 million, falling short of the average estimate of $5.37 million [4] - CoreVest mortgage banking activities generated $11.4 million, below the average estimate of $13.75 million [4] Stock Performance - Over the past month, Redwood Trust shares have returned -3.3%, contrasting with the Zacks S&P 500 composite's increase of +3.8% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]