Overview

* Redwood Trust ( RWT ) Q2 GAAP net loss $100.2 mln, driven by Legacy Investments

* Adjusted EPS for Q2 meets analyst expectations, per LSEG data

* Company upsized share repurchase authorization to $150 mln, signaling strategic confidence

Outlook

* Redwood Trust ( RWT ) expects to generate $200-$250 mln capital by year-end 2025

* Company sees transformative growth in mortgage banking platforms

* Company anticipates benefiting from housing finance reforms

Result Drivers

* LEGACY INVESTMENTS - Losses driven by fair value adjustments and anticipated resolutions on legacy bridge loans and non-core assets

* MORTGAGE BANKING - Platforms continue to scale profitably with GAAP returns above 20% for four consecutive quarters

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Meet $0.18 $0.18 (8

Adjusted Analysts

EPS )

Q2 Net $13.80

Interest mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy"

* Wall Street's median 12-month price target for Redwood Trust Inc ( RWT ) is $7.00, about 13.3% above its July 29 closing price of $6.07

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)