Redwood Trust (RWT) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Redwood Trust reported revenue of $25.9 million for the quarter ended December 2025, a year-over-year decline of 6.2% but a surprise of +4.86% over the Zacks Consensus Estimate of $24.7 million [1] - The company achieved an EPS of $0.33, significantly higher than the $0.13 reported a year ago, representing a surprise of +46.67% compared to the consensus EPS estimate of $0.23 [1] Financial Performance Metrics - Net interest income was reported at $25.9 million, exceeding the average estimate of $24.57 million from two analysts [4] - Total non-interest income (loss), net, was $61.3 million, surpassing the estimated $57.25 million by two analysts [4] - Non-interest income from mortgage banking activities, net, was $53.1 million, compared to the average estimate of $46.55 million [4] - Non-interest income from Sequoia mortgage banking activities, net, reached $40.4 million, exceeding the estimated $32.64 million [4] - Non-interest income from CoreVest mortgage banking activities, net, was $16.3 million, higher than the average estimate of $13.91 million [4] - Non-interest income from HEI income, net, was $3 million, slightly below the estimated $3.8 million [4] Stock Performance - Shares of Redwood Trust have returned -1.1% over the past month, compared to a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]