NYSE$RWT

Redwood Trust Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter ended March 31, 2023.

Redwood Trust reported a productive first quarter in 2023, delivering a positive total economic return to shareholders and restoring operating businesses to profitability. The company achieved considerable success in loan distributions, with approximately $1.0 billion in combined securitization and whole loan sale activity.

  • GAAP book value per common share was $9.40 at March 31, 2023, a 1.6% decrease from $9.55 per share at December 31, 2022, with an economic return on book value of 0.8%.
  • GAAP net income was $0.02 per diluted common share.
  • Non-GAAP Earnings Available for Distribution (EAD) was $0.11 per basic common share.
  • The recourse leverage ratio was 2.3x at March 31, 2023.

Headline financials

Total Revenue

$47.5M

Previous: $71.9M-33.9%
EPS (adj)

$0.11

Previous: $0.24-54.2%
Economic Return on BV

0.8%

Previous: 1.5%-46.7%
Redwood Investments Recourse Leverage

2.3

Previous: 2.1+9.5%
Free Cash Flow

$4.62M

Previous: $30.9M-85.1%
Net Income

$4.62M

Previous: $30.9M-85.1%
Operating Income

$8.05M

Previous: $34.4M-76.6%
Gross Profit

$43.9M

Previous: $67.8M-35.3%
Cash & Equivalents

$404M

Previous: $409M-1.2%
Total Assets

$13.1B

Previous: $14.3B-7.9%
Stock-Based Comp

$6.34M

Previous: $8.17M-22.4%

Revenue & EPS history

Redwood Trust · Revenue · Quarterly

$47.5M

Q1 2023-33.9%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Redwood is well positioned to offer market solutions through its deep industry relationships and track record, strong balance sheet, and elevated liquidity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.2%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+20.6%

Q4 2025

Best reaction

-9.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-0.7%-3.6%
Q4 2025+20.6%+17.1%+5.2%
Q3 2025-2.6%-4.4%+0.4%
Q1 2025-6.1%-5.2%-12.2%
Q4 2024-1.2%-1.1%-1.1%
Q3 2024-3.8%-5.0%-5.9%
Q2 2024-3.0%-4.1%+4.1%
Q1 2024+8.6%+11.4%+9.7%
Q4 2023-8.2%-7.9%-4.9%
Q3 2023-7.0%+2.7%+5.5%
Q2 2023+7.1%+8.3%+11.8%
Q1 2023-1.7%-9.7%-7.8%
Q4 2022-5.1%-4.0%-17.0%
Q3 2022+6.5%+5.0%+13.3%
Q2 2022+1.5%-2.9%-4.6%
Q1 2022+10.5%+14.1%+16.3%
Q4 2021-7.3%-11.6%-10.7%
Q3 2021+2.6%+2.7%-1.0%
Q2 2021+3.1%+0.6%+5.7%
Q1 2021+1.3%+5.1%+4.0%
Q4 2020+2.0%+2.0%+9.6%
Q3 2020+3.0%+5.9%+11.2%
Q2 2020+2.1%-1.6%+3.0%
Q1 2020+3.4%-8.1%+74.4%
Q4 2019+1.9%+4.1%-62.9%
Q3 2019-2.2%-2.2%-3.1%
Q2 2019-1.0%-1.5%-1.9%
Q1 2019-0.5%-1.3%-2.2%
Q4 2018-1.1%-2.1%-2.0%
Q3 2018+1.9%+0.8%+0.5%
Q2 2018-2.2%-1.6%+4.8%
Q1 2018+3.9%+3.2%+4.3%
Q4 2017+2.7%+0.4%+0.5%
Q3 2017-3.7%-4.8%-4.5%
Q2 2017-1.8%-1.3%-3.6%
Q1 2017+1.6%-0.9%+2.4%
Q4 2016-3.2%-3.5%-4.0%
Q3 2016+1.1%+6.2%+12.3%
Q2 2016+4.7%+1.5%+0.5%
Q1 2016+3.1%
Q4 2015+10.8%
Q3 2015-3.2%
Q2 2015-5.0%
Q1 2015-1.5%
Q4 2014-1.9%
Q3 2014+3.3%
Q2 2014-0.4%
Q1 2014-8.2%
Q4 2013+2.1%
Q3 2013+1.8%
Q2 2013+10.3%
Q1 2013-2.7%
Q4 2011+1.7%
Q4 2012-2.1%
Q3 2012+2.5%
Q2 2012-0.8%
Q1 2012+3.3%
Q3 2011-3.6%
Q2 2011-9.0%
Q1 2010-1.0%
Q1 2011-0.7%
Q4 2009-1.6%
Q4 2010-1.6%
Q4 2008-1.6%
Q3 2009+2.3%
Q3 2010+2.3%
Q2 2010+2.4%
Q2 2009+2.4%

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