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

By Zacks Equity Research | October 29, 2025, 7:30 PM

For the quarter ended September 2025, Redwood Trust (RWT) reported revenue of $15 million, down 41.2% over the same period last year. EPS came in at $0.20, compared to $0.18 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $30.01 million, representing a surprise of -50.02%. The company delivered an EPS surprise of +25%, with the consensus EPS estimate being $0.16.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Redwood Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Net interest income: $15 million versus the three-analyst average estimate of $29.98 million.
  • Non-interest income (loss)- Sequoia mortgage banking activities, net: $28.7 million versus the three-analyst average estimate of $25.02 million.
  • Total non-interest income (loss), net: $39.4 million versus the three-analyst average estimate of $51.23 million.
  • Non-interest income (loss)- Mortgage banking activities, net: $40.1 million versus $38.76 million estimated by three analysts on average.
  • Non-interest income (loss)- HEI income, net: $0.5 million versus $5.37 million estimated by three analysts on average.
  • Non-interest income (loss)- CoreVest mortgage banking activities, net: $11.4 million versus the three-analyst average estimate of $13.75 million.

View all Key Company Metrics for Redwood Trust here>>>

Shares of Redwood Trust have returned -3.3% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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