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REDWOOD TRUST INC

RWTNYSE
πŸ† #2668 by market capEarnings Nov 4US Equity
$4.71β–² $0.02 (+0.53%)
Live
1hβ–² 0.0%
24hβ–² 0.5%
7dβ–² 3.2%
14dβ–² 0.9%
30dβ–Ό 7.6%
1yβ–Ό 20.0%
🏦Market Cap
$591M
Small Cap
πŸ“ˆRevenue Growth (YoY)
+21.6%
Healthy
πŸ“ŠGross Margin
6.3%
Thin
πŸ’΅FCF Margin
35.9%
Strong
βš–οΈP/S Ratio
0.4x
Cheap
Otter Score
68
Fair

Trading Snapshot

Day Range
$4.67 – $4.79
52-Week Range
$4.19 – $6.97
Volume
$5.83B
Avg Volume
$5.25B
Shares Outstanding
125.6M
Next Earnings
Sep 14, 2026

Fundamentals Snapshot

Annual Revenue
$1.11B
Last Q Revenue
$396M
P/E Ratio
β€”
P/S Ratio
0.4x
EPS (TTM)
$-0.69
Dividend Yield
18.35%

Why Investors Own RWT

  • βœ“High-growth profile β€” revenue up +57.2% YoY with expanding US Equity exposure.
  • βœ“Healthy economics β€” 56% gross margin and 18% free-cash-flow margin.
  • βœ“New products and segments could unlock additional revenue streams.
⚠️ Key Risks

Execution delays, intensifying competition, and valuation compression if growth decelerates.

Financial Trends

Revenue (TTM)
$1.11Bβ–² +59.2% YoY
Gross Margin (TTM)
55.5%β–² +0.6% YoY
Operating Income (TTM)
$228Mβ–² +59.2% YoY
Free Cash Flow (TTM)
$199Mβ–² +59.2% YoY

About REDWOOD TRUST INC

Redwood Trust, Inc. is a specialized financial enterprise operating across the United States, managing its activities through three distinct divisions. Its Residential Mortgage Banking segment functions as a conduit, sourcing residential home loans from various third-party originators. These loans are then either sold, converted into securities, or incorporated into Redwood Trust's own investment portfolio. This division also utilizes derivative financial instruments to mitigate risks associated with these residential loans. The Business Purpose Mortgage Banking segment is dedicated to originating and acquiring loans tailored for business uses, including single-family rental and bridge loans. Similar to the residential segment, these are subsequently securitized, sold, or added to the company's investment holdings. Finally, the Investment Portfolio segment deploys capital into a diverse array of assets. This includes securities retained from its own residential and business purpose securitization efforts, as well as residential and smaller multifamily bridge loans. The company also invests in residential mortgage-backed securities issued by other entities, Freddie Mac K-Series multifamily loan securitizations, reperforming loan securitizations, servicer advance investments, home equity investments, and various other housing-related assets. Qualifying as a Real Estate Investment Trust (REIT) for federal tax purposes, Redwood Trust, Inc. commits to distributing at least 90% of its taxable income as dividends to its shareholders. The company was established in 1994 and maintains its headquarters in Mill Valley, California.

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Otter Score Breakdown

β“˜
πŸ’ŽQualityβ˜…β˜…β˜…β˜…β˜…
πŸš€Growthβ˜…β˜…β˜…β˜…β˜…
βš–οΈValuationβ˜…β˜…β˜…β˜…β˜…
⚑Momentumβ˜…β˜…β˜…β˜…β˜…
Overall Score
Fair
68/100

Analyst Price Target

β“˜
Average Target
$5.03
β–² +6.9% Upside
High Target$6.23
Low Target$4.36
Based on 16 analysts

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