NYSE$RWT

Redwood Trust Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

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

Redwood Trust reported a GAAP net loss of $(0.44) per diluted common share and Non-GAAP Earnings Available for Distribution (EAD) of $0.16 per basic common share for Q3 2022. The company deployed $167 million of capital into new investments and maintained a robust balance sheet with $297 million in unrestricted cash.

  • GAAP book value per common share was $10.18 at September 30, 2022, an approximate 5.6% decrease from $10.78 per share at June 30, 2022.
  • Non-GAAP Earnings Available for Distribution (EAD) of $0.16 per basic common share.
  • Deployed $167 million of capital into new, attractively priced organic and third-party investments.
  • Maintained robust balance sheet with unrestricted cash of $297 million and unencumbered assets of $491 million at September 30, 2022.

Headline financials

Total Revenue

-$2.2M

Previous: $140M-101.6%
EPS (adj)

$0.16

Previous: $0.65-75.4%
Economic Return on BV

-3.4%

No prior period
Redwood Investments Recourse Leverage

2.6

No prior period
Free Cash Flow

-$50.4M

Previous: $88.3M-157.1%
Net Income

-$50.4M

Previous: $88.3M-157.1%
Operating Income

-$45M

Previous: $86.4M-152.1%
Gross Profit

-$6.46M

Previous: $136M-104.7%
Cash & Equivalents

$297M

Previous: $557M-46.7%
Total Assets

$13.1B

Previous: $13.1B+0.6%
Stock-Based Comp

$5.07M

Previous: $4.9M+3.5%

Revenue & EPS history

Redwood Trust · Revenue · Quarterly

-$2.2M

Q3 2022-101.6%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The third quarter was in many ways a continuation of market and macro themes that have dominated much of 2022. While volatility persisted, Redwood's strong liquidity allowed them to navigate challenging market conditions and remain well positioned for opportunities.

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 Q3 2022

Historical avgQ3 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%

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