NYSE$RWT

Redwood Trust Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended June 30, 2022.

Redwood Trust reported a GAAP net loss of $(0.85) per diluted common share for Q2 2022, with $(0.74) per share attributable to net fair value changes on long-term investments. Despite market volatility, demand for shorter-term financing from business purpose lending borrowers proved more resilient.

  • GAAP book value per common share was $10.78 at June 30, 2022, approximately a 10% decrease from $12.01 per share at March 31, 2022
  • GAAP net loss of $(0.85) per diluted common share, of which $(0.74) per share was attributable to net fair value changes on long-term investments, substantially all of which were unrealized
  • Deployed $166 million of capital into new, attractively priced organic and third-party investments
  • Maintained robust balance sheet with unrestricted cash of $371 million

Headline financials

Total Revenue

-$70.5M

Previous: $145M-148.6%
EPS (adj)

$0.11

Previous: $0.66-83.3%
Economic Return on BV

-8.3%

Previous: 8.2%-201.2%
Redwood Investments Recourse Leverage

2.5

Previous: 2.2+13.6%
Free Cash Flow

-$100M

Previous: $90M-211.0%
Net Income

-$100M

Previous: $90M-211.0%
Operating Income

-$102M

Previous: $98.8M-203.6%
Gross Profit

-$74M

Previous: $141M-152.4%
Cash & Equivalents

$371M

Previous: $421M-11.9%
Total Assets

$13.9B

Previous: $12B+15.7%
Stock-Based Comp

$5.27M

Previous: $5.64M-6.7%

Revenue & EPS history

Redwood Trust · Revenue · Quarterly

-$70.5M

Q2 2022-148.6%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Redwood is well-positioned to take advantage of opportunities for its investment portfolio or within its capital structure, further driving shareholder value.

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 Q2 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro