Ready Capital (NYSE: RC) reports Q4 2025 loss and lower book value
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Ready Capital Corporation reported a heavy loss for the quarter and year ended December 31, 2025, driven by credit costs and realized losses on investments. For the fourth quarter, net loss from continuing operations was $232.6 million, or $(1.46) per common share, with a distributable loss per common share of $(0.43) and $(0.09) before realized losses.
The company’s loan portfolio totaled $5.9 billion, but it recorded a fourth-quarter provision for loan losses of $149.9 million and realized losses on sale of investments of $65.0 million, contributing to a full-year net loss of $221.1 million. Book value per common share declined to $8.79 as of December 31, 2025, compared with $10.61 a year earlier, while total assets fell from $10.1 billion to $7.8 billion over the same period.
Management highlighted continued execution of a liquidity plan, including selling 34 loans with $855.3 million of unpaid principal balance after year-end and retiring the 5.75% Senior Unsecured Note due February 2026. The company declared a modest common dividend of $0.01 per share for the quarter, reflecting pressure on earnings and capital.
Positive
- None.
Negative
- Significant losses and book value decline: Q4 2025 net loss from continuing operations was $232.6 million ( $(1.46) per share ), and book value per common share fell from $10.61 at December 31, 2024 to $8.79 at December 31, 2025, indicating material capital erosion.
- Heavy credit and realized losses: The quarter included a $149.9 million provision for loan losses, a $113.97 million increase in the CECL reserve, and $65.0 million of realized losses on sale of investments, reflecting substantial stress in the loan and investment portfolio.
- Weak distributable performance and reduced dividend: Distributable loss attributable to common stockholders was $69.2 million for Q4 2025 ( $(0.43) per share ), and the common dividend was cut to $0.01 per share for the quarter, highlighting pressure on recurring earnings and cash distributions.
Insights
Large credit losses, falling book value, and shrinking balance sheet signal elevated stress in Ready Capital’s portfolio and earnings power.
Ready Capital posted a Q4 2025 net loss from continuing operations of
For 2025, net loss was
The company is reshaping its balance sheet, including the sale of 34 loans with
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File Number) | (IRS Employer | ||||||
| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices)
(Zip Code)
(Zip Code)
Registrant's telephone number, including area code: (212 ) 257-4600
n/a
(Former name or former address, if changed since last report.)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Item 2.02. Results of Operations and Financial Condition
On February 26, 2026, Ready Capital Corporation (the “Company”) issued an earnings release announcing the financial results for the quarter ended December 31, 2025. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
On February 26, 2026, the Company posted supplemental financial information on the Investor Relations section of its website (www.readycapital.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Earnings Release, dated February 26, 2026 | |||||||
| 99.2 | Supplemental Financial Information for the quarter ended December 31, 2025 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| READY CAPITAL CORPORATION | ||||||||
| By: | /s/ Andrew Ahlborn | |||||||
| Name: Andrew Ahlborn | ||||||||
| Title: Chief Financial Officer | ||||||||
Date: February 26, 2026
Exhibit 99.1
READY CAPITAL CORPORATION REPORTS FOURTH QUARTER 2025 RESULTS
- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(1.46) -
- DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.43) -
- DISTRIBUTABLE LOSS PER COMMON SHARE BEFORE REALIZED LOSSES OF $(0.09) -
New York, New York, February 26, 2026 / Globe Newswire / – Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended December 31, 2025.
“We continue to execute on our liquidity plan with a focus on meeting our corporate obligations and repositioning the Company's equity away from Covid-vintage production”, said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “The equity drawdown associated with these actions is significant but represents an important step toward addressing the financial pressure experienced since the onset of the commercial real estate cycle. We believe the execution of our plan will improve our liquidity profile and support greater financial stability going forward.”
Fourth Quarter Highlights
•LMM commercial real estate originations of $235 million
•Small Business Lending (“SBL”) loan originations of $140 million, including $84 million of Small Business Administration 7(a) loans and $18 million of United States Department of Agriculture loans
•Book value of $8.79 per share of common stock as of December 31, 2025
Full Year Highlights
•Total originations of $1.8 billion across all products
•Completed the acquisition of United Development Funding IV, a real estate investment trust providing capital solutions to residential real estate developers and regional homebuilders
•Completed the sale of GMFS, our Residential Mortgage Banking business
•Secured ownership and control of the Portland, OR mixed-use asset via a consensual deed-in-lieu arrangement
Subsequent Events
•Completed the sale of 34 loans with an unpaid principal balance of $855.3 million
•Retired the remaining outstanding amount on the 5.75% Senior Unsecured Note due February 2026
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses.
The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies.
In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.
Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance.
To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years.
The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings.
| (in thousands) | Three Months Ended December 31, 2025 | Year Ended December 31, 2025 | ||||||
| Net Loss | $ | (232,612) | $ | (221,061) | ||||
| Reconciling items: | ||||||||
| Unrealized loss on MSR - discontinued operations | — | 8,952 | ||||||
| Unrealized loss on joint ventures | 523 | 2,845 | ||||||
| Increase in CECL reserve | 113,974 | 35,178 | ||||||
| Increase (decrease) in valuation allowance | 23,318 | (15,443) | ||||||
| Non-recurring REO impairment | 15,027 | 23,653 | ||||||
| Non-cash compensation | 797 | 5,807 | ||||||
| Unrealized loss on preferred equity, at fair value | 10,645 | 12,923 | ||||||
| Merger transaction costs and other non-recurring expenses | 3,102 | 11,976 | ||||||
| (Gain) loss on bargain purchase | 3,013 | (109,549) | ||||||
| Depreciation and amortization on real estate owned | 1,712 | 2,812 | ||||||
| Realized losses on sale of investments | 64,987 | 282,479 | ||||||
| Total reconciling items | $ | 237,098 | $ | 261,633 | ||||
| Income tax adjustments | (14,556) | (61,376) | ||||||
| Distributable loss before realized losses | $ | (10,070) | $ | (20,804) | ||||
| Realized losses on sale of investments, net of tax | (55,209) | (225,243) | ||||||
| Distributable loss | $ | (65,279) | $ | (246,047) | ||||
| Less: Distributable earnings attributable to non-controlling interests | 1,926 | 7,345 | ||||||
| Less: Income attributable to participating shares | 2,015 | 8,667 | ||||||
| Distributable loss attributable to common stockholders | $ | (69,220) | $ | (262,059) | ||||
| Distributable loss before realized losses on investments, net of tax per common share - basic and diluted | $ | (0.09) | $ | (0.23) | ||||
| Distributable loss per common share - basic and diluted | $ | (0.43) | $ | (1.59) | ||||
U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above.
Webcast and Earnings Conference Call
Management will host a webcast and conference call on Friday, February 27, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended December 31, 2025. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s
responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To Participate in the Telephone Conference Call:
Dial in at least five minutes prior to start time.
Domestic: 1-877-407-0792
International: 1-201-689-8263
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Replay Pin #: 13757494
The playback can be accessed through March 13, 2026.
Safe Harbor Statement
This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 450 professionals nationwide.
Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Additional information can be found on the Company’s website at www.readycapital.com.
READY CAPITAL CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 207,841 | $ | 143,803 | |||||||
| Restricted cash | 39,746 | 30,560 | |||||||||
| Loans, net (including $737 and $3,533 held at fair value) | 3,500,298 | 3,378,149 | |||||||||
| Loans, held for sale (including $73,094 and $128,531 held at fair value and net of valuation allowance of $67,612 and $97,620) | 585,820 | 241,626 | |||||||||
| Mortgage-backed securities | 34,501 | 31,006 | |||||||||
| Investment in unconsolidated joint ventures (including $5,737 and $6,577 held at fair value) | 161,424 | 161,561 | |||||||||
| Derivative instruments | 6,740 | 7,963 | |||||||||
| Servicing rights | 126,279 | 128,440 | |||||||||
| Real estate owned | 620,225 | 193,437 | |||||||||
| Other assets | 508,238 | 362,486 | |||||||||
| Assets of consolidated VIEs | 1,978,684 | 5,175,295 | |||||||||
| Assets held for sale | — | 287,595 | |||||||||
| Total Assets | $ | 7,769,796 | $ | 10,141,921 | |||||||
| Liabilities | |||||||||||
| Secured borrowings | 2,788,926 | 2,035,176 | |||||||||
| Securitized debt obligations of consolidated VIEs, net | 1,174,785 | 3,580,513 | |||||||||
| Senior secured notes, net | 722,729 | 437,847 | |||||||||
| Corporate debt, net | 652,487 | 895,265 | |||||||||
| Guaranteed loan financing | 524,091 | 691,118 | |||||||||
| Contingent consideration | 18,698 | 573 | |||||||||
| Derivative instruments | 1,432 | 352 | |||||||||
| Dividends payable | 3,633 | 43,168 | |||||||||
| Loan participations sold | 56,616 | 95,578 | |||||||||
| Due to third parties | 3,135 | 1,442 | |||||||||
| Accounts payable and other accrued liabilities | 171,636 | 188,051 | |||||||||
| Liabilities held for sale | — | 228,735 | |||||||||
| Total Liabilities | $ | 6,118,168 | $ | 8,197,818 | |||||||
| Preferred stock Series C, liquidation preference $25.00 per share | 8,361 | 8,361 | |||||||||
| Commitments & contingencies | |||||||||||
| Stockholders’ Equity | |||||||||||
| Preferred stock Series E, liquidation preference $25.00 per share | 111,378 | 111,378 | |||||||||
| Common stock, $0.0001 par value, 500,000,000 shares authorized, 163,010,012 and 162,792,372 shares issued and outstanding, respectively | 17 | 17 | |||||||||
| Additional paid-in capital | 2,264,355 | 2,250,291 | |||||||||
| Retained deficit | (807,522) | (505,089) | |||||||||
| Accumulated other comprehensive loss | (24,196) | (18,552) | |||||||||
| Total Ready Capital Corporation equity | 1,544,032 | 1,838,045 | |||||||||
| Non-controlling interests | 99,235 | 97,697 | |||||||||
| Total Stockholders’ Equity | $ | 1,643,267 | $ | 1,935,742 | |||||||
| Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $ | 7,769,796 | $ | 10,141,921 | |||||||
READY CAPITAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
| (in thousands, except share data) | Three Months Ended December 31, 2025 | Year Ended December 31, 2025 | ||||||
| Interest income | $ | 123,973 | $ | 569,166 | ||||
| Interest expense | (110,851) | (514,125) | ||||||
| Net interest income before provision for loan losses | $ | 13,122 | $ | 55,041 | ||||
| Provision for loan losses | (149,989) | (87,038) | ||||||
| Net interest loss after provision for loan losses | $ | (136,867) | $ | (31,997) | ||||
| Non-interest income | ||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (10,599) | (142,112) | ||||||
| Net unrealized gain (loss) on financial instruments | (12,703) | (13,153) | ||||||
| Valuation recovery (allowance), loans held for sale | (23,318) | 15,443 | ||||||
Servicing income, net of amortization and impairment of $7,237 and $29,919 | 5,042 | 18,703 | ||||||
| Gain (loss) on bargain purchase | (3,013) | 109,549 | ||||||
| Income on unconsolidated joint ventures | 1,271 | 4,562 | ||||||
| Other income | 16,049 | 53,716 | ||||||
| Total non-interest income (expense) | $ | (27,271) | $ | 46,708 | ||||
| Non-interest expense | ||||||||
| Employee compensation and benefits | (23,923) | (89,487) | ||||||
| Allocated employee compensation and benefits from related party | (4,350) | (14,828) | ||||||
| Professional fees | (12,973) | (30,837) | ||||||
| Management fees – related party | (4,543) | (20,348) | ||||||
| Loan servicing expense | (4,605) | (41,258) | ||||||
| Transaction related expenses | (807) | (6,050) | ||||||
| Impairment on real estate | (15,027) | (23,503) | ||||||
| Other operating expenses | (33,821) | (90,956) | ||||||
| Total non-interest expense | $ | (100,049) | $ | (317,267) | ||||
| Loss from continuing operations before benefit for income taxes | (264,187) | (302,556) | ||||||
| Income tax benefit | 31,622 | 86,703 | ||||||
| Net loss from continuing operations | $ | (232,565) | $ | (215,853) | ||||
| Discontinued operations | ||||||||
| Loss from discontinued operations before income tax benefit | (63) | (6,944) | ||||||
| Income tax benefit | 16 | 1,736 | ||||||
| Net loss from discontinued operations | $ | (47) | $ | (5,208) | ||||
| Net loss | $ | (232,612) | $ | (221,061) | ||||
| Less: Dividends on preferred stock | 1,999 | 7,996 | ||||||
| Less: Net income attributable to non-controlling interest | 1,572 | 7,854 | ||||||
| Net loss attributable to Ready Capital Corporation | $ | (236,183) | $ | (236,911) | ||||
| Earnings per common share from continuing operations - basic | $ | (1.46) | $ | (1.41) | ||||
| Earnings per common share from discontinued operations - basic | $ | 0.00 | $ | (0.03) | ||||
| Total earnings per common share - basic | $ | (1.46) | $ | (1.44) | ||||
| Earnings per common share from continuing operations - diluted | $ | (1.46) | $ | (1.41) | ||||
| Earnings per common share from discontinued operations - diluted | $ | 0.00 | $ | (0.03) | ||||
| Total earnings per common share - diluted | $ | (1.46) | $ | (1.44) | ||||
| Weighted-average shares outstanding | ||||||||
| Basic | 161,734,869 | 164,544,350 | ||||||
| Diluted | 164,450,230 | 167,259,712 | ||||||
| Dividends declared per share of common stock | $ | 0.01 | $ | 0.385 | ||||
READY CAPITAL CORPORATION
UNAUDITED SEGMENT REPORTING
| Three Months Ended December 31, 2025 | |||||||||||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||||||||||
| Interest income | $ | 94,713 | $ | 29,260 | $ | — | $ | 123,973 | |||||||||||||||
| Interest expense | (91,745) | (19,106) | — | (110,851) | |||||||||||||||||||
| Net interest income before provision for loan losses | $ | 2,968 | $ | 10,154 | $ | — | $ | 13,122 | |||||||||||||||
| Provision for loan losses | (143,540) | (6,449) | — | (149,989) | |||||||||||||||||||
| Net interest income (loss) after provision for loan losses | $ | (140,572) | $ | 3,705 | $ | — | $ | (136,867) | |||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (470) | (10,129) | — | (10,599) | |||||||||||||||||||
| Net unrealized gain (loss) on financial instruments | (8,797) | (3,913) | 7 | (12,703) | |||||||||||||||||||
| Valuation allowance, loans held for sale | (23,318) | — | — | (23,318) | |||||||||||||||||||
| Servicing income, net | 1,868 | 3,174 | — | 5,042 | |||||||||||||||||||
| Loss on bargain purchase | — | — | (3,013) | (3,013) | |||||||||||||||||||
| Income on unconsolidated joint ventures | 1,258 | 13 | — | 1,271 | |||||||||||||||||||
| Other income | 12,757 | 2,005 | 1,287 | 16,049 | |||||||||||||||||||
| Total non-interest income (expense) | $ | (16,702) | $ | (8,850) | $ | (1,719) | $ | (27,271) | |||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Employee compensation and benefits | (7,204) | (14,554) | (2,165) | (23,923) | |||||||||||||||||||
| Allocated employee compensation and benefits from related party | (435) | — | (3,915) | (4,350) | |||||||||||||||||||
| Professional fees | (6,538) | (2,986) | (3,449) | (12,973) | |||||||||||||||||||
| Management fees – related party | — | — | (4,543) | (4,543) | |||||||||||||||||||
| Loan servicing expense | (3,557) | (1,048) | — | (4,605) | |||||||||||||||||||
| Transaction related expenses | — | — | (807) | (807) | |||||||||||||||||||
| Impairment on real estate | (15,027) | — | — | (15,027) | |||||||||||||||||||
| Other operating expenses | (20,880) | (9,549) | (3,392) | (33,821) | |||||||||||||||||||
| Total non-interest expense | $ | (53,641) | $ | (28,137) | $ | (18,271) | $ | (100,049) | |||||||||||||||
| Loss before provision for income taxes | $ | (210,915) | $ | (33,282) | $ | (19,990) | $ | (264,187) | |||||||||||||||
| Total assets | $ | 5,937,031 | $ | 1,280,903 | $ | 551,862 | $ | 7,769,796 | |||||||||||||||
READY CAPITAL CORPORATION
UNAUDITED SEGMENT REPORTING
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||||||||||
| Interest income | $ | 447,810 | $ | 121,356 | $ | — | $ | 569,166 | |||||||||||||||
| Interest expense | (434,743) | (79,382) | — | (514,125) | |||||||||||||||||||
| Net interest income before provision for loan losses | $ | 13,067 | $ | 41,974 | $ | — | $ | 55,041 | |||||||||||||||
| Provision for loan losses | (61,725) | (25,313) | — | (87,038) | |||||||||||||||||||
| Net interest income (loss) after provision for loan losses | $ | (48,658) | $ | 16,661 | $ | — | $ | (31,997) | |||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (191,583) | 49,471 | — | (142,112) | |||||||||||||||||||
| Net unrealized gain (loss) on financial instruments | (11,250) | (834) | (1,069) | (13,153) | |||||||||||||||||||
| Valuation recovery, loans held for sale | 15,443 | — | — | 15,443 | |||||||||||||||||||
| Servicing income, net | 6,369 | 12,334 | — | 18,703 | |||||||||||||||||||
| Gain on bargain purchase | — | — | 109,549 | 109,549 | |||||||||||||||||||
| Income on unconsolidated joint ventures | 4,508 | 54 | — | 4,562 | |||||||||||||||||||
| Other income | 25,807 | 23,264 | 4,645 | 53,716 | |||||||||||||||||||
| Total non-interest income (loss) | $ | (150,706) | $ | 84,289 | $ | 113,125 | $ | 46,708 | |||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Employee compensation and benefits | (24,577) | (58,232) | (6,678) | (89,487) | |||||||||||||||||||
| Allocated employee compensation and benefits from related party | (1,483) | — | (13,345) | (14,828) | |||||||||||||||||||
| Professional fees | (9,075) | (12,437) | (9,325) | (30,837) | |||||||||||||||||||
| Management fees – related party | — | — | (20,348) | (20,348) | |||||||||||||||||||
| Loan servicing expense | (37,715) | (3,543) | — | (41,258) | |||||||||||||||||||
| Transaction related expenses | — | — | (6,050) | (6,050) | |||||||||||||||||||
| Impairment on real estate | (23,503) | — | — | (23,503) | |||||||||||||||||||
| Other operating expenses | (41,710) | (40,071) | (9,175) | (90,956) | |||||||||||||||||||
| Total non-interest expense | $ | (138,063) | $ | (114,283) | $ | (64,921) | $ | (317,267) | |||||||||||||||
| Income (loss) before provision for income taxes | $ | (337,427) | $ | (13,333) | $ | 48,204 | $ | (302,556) | |||||||||||||||
| Total assets | $ | 5,937,031 | $ | 1,280,903 | $ | 551,862 | $ | 7,769,796 | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA Q4 2025
2 Disclaimer This presentation contains statements that constitute “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; Ready Capital Corporation (the “Company”) can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include those set forth in the Risk Factors section of the most recent Annual Report on Form 10-K filed with the SEC and other reports filed by the Company with the SEC, copies of which are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. This presentation includes certain non-GAAP financial measures, including Distributable earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to the Appendix for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of December 31, 2025, unless otherwise noted.
3 Fourth Quarter 2025 Results ■ Net loss from continuing operations1 of $(1.46) per common share ■ Distributable losses2 of $(0.43) per common share ■ Distributable losses before realized losses3 of $(0.09) per common share ■ Declared dividend of $0.01 per common share Performance ■ Total loan portfolio of $5.9 billion ■ Total loan originations4 of $374.6 million including $234.9 million of LMM commercial real estate loans, $84.4 million of SBA 7(a) loans and $18.4 million of USDA loans ■ Loan repayments of $442.3 million and sales of $294.0 million ■ Net new 60+ core delinquencies5 of $18 million; 60+ core delinquency5 of 6.7% at quarter end Loan Portfolio Capitalization ■ Book value per share of $8.79 ■ Total leverage of 3.5x and recourse leverage ratio6 of 1.6x Business Update ■ Completed the sale of 34 loans totaling $855.3 million in unpaid principal balance in February 2026 ■ Retired the outstanding 5.75% Senior Unsecured Note due February 2026
4 CRE Portfolio Review QTD INVESTMENT ROLL ($ in billions) COUNT7 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD CORE 1,044 4.76B 169M 4.56B 6.7% 2.50 7.4% 5.4% NON-CORE 27 305M 82M 222M 77.7% 4.30 2.5% 1.7% TOTAL 1,071 5.07B 251M 4.78B 10.0% 2.58 7.1% 5.2% LOAN VINTAGE ($ in billions) 0.9 1.5 1.5 0.2 0.4 0.10.1 0.1 Core Non-Core 2020 and prior 2021 2022 2023 2024 2025 $0.0 $0.4 $0.8 $1.2 $1.6 5.15 (0.46) 0.20 (0.11) 4.78 Beg CV Sales/ Paydowns Originations Allowance/ Other End CV $4.6 $4.8 $5.0 $5.2 288 134 (92) (13) (9) (2) 306 Beg 60+ New 60+ Mods Allowance REO Other End 60+ $200 $250 $300 $350 $400 $450 60+ DQ CORE MIGRATION ($ in millions)
5 CRE Core Portfolio Overview LOAN PRODUCT8 RISK RATINGCOLLATERAL MODIFICATION STATUS19 HISTORICAL LEVERED YIELD 10.8% 11.1% 10.9% 11.0% 9.6% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 0% 2% 4% 6% 8% 10% 12% QUARTERLY PORTFOLIO CREDIT MIGRATION Bridge 72% Fixed rate 15% Construction 8% Other 5% Multi-family 74% Industrial 7% Retail 5% Office 4% Land 3% Other 7% 1&2 44% 3 44% 4&5 12% Extensions 22% Modifications 29% Not Modified 49% Q3’25 CV (%) Q4’25 CV (%) CURRENT 90.9% 85.2% 30-59 3.2% 8.1% 60+ 5.9% 6.7% TOTAL 100.0% 100.0% ACCRUAL 95.6% 76.6% NON-ACCRUAL 4.4% 23.4% TOTAL 100.0% 100.0%
6 CRE Non-Core Portfolio Overview18 ASSET MANAGEMENT STRATEGY NON-CORE EXIT TIMELINE ($ in millions) Bridge 75% Construction 19% Fixed 6% LOAN PRODUCT RISK RATINGCOLLATERAL Multi-family 60%Hotel 16% Office 9% Mixed Use 7% Other 8% 2&3 17% 4 25% 5 58% QTD ROLL ($ in thousands) $301 $(57) $(22) $222 Beginning CV Exits REO/Write- downs Ending CV $150 $200 $250 $300 $350 27 loans 32 loans 9 loans $54 $88 $38 $10 $32 Q1'26 Q2'26 Q3'26 Q4'26 Q1'27 and beyond $— $25 $50 $75 $100 STRATEGY LOAN COUNT CARRY VALUE (%) Liquidation pending commencement of marketing 9 22% Under contract 2 14% Operate/develop to facilitate sale 1 7% Actively marketed for sale 13 57% Modified/performing 2 —% Total 27 100% 3 loans 2 loans
7 Real Estate Owned Exposure # OF ASSETS CARRY VALUE PORTLAND MIXED USE 1 $429M OPERATE TO SELL 8 $87M SELL 11 $73M UNDER CONTRACT 7 $47M TOTAL 27 $636M Land 11% Multi-family 12% Mixed use 73% Other 4% Collateral Texas 12% California 7% Colorado 3% Oregon 71% Other 7% Geography 648,273 22,114 (18,135) (16,739) 635,513 Beginning Balance REO acquired via foreclosure Liquidations Depreciation/ Impairment Ending Balance 600,000 650,000 700,000 QUARTERLY REO MIGRATION (in thousands)REO DETAILS20
8 Portland OR, Mixed-Use • Successful re-launch for the residential condominium and office components in late Q4, with strong participation from leading Portland residential and office brokers. • Following the marketing re-launch, demand for residential units increased materially resulting in executed Reservation Agreements with deposits for twenty-five (25) condominiums. • Hotel revenue performance has improved year-over-year, with total revenue up 6%, driven by a 2.5% increase in occupancy, a 4.9% increase in ADR, and an 11.7% increase in RevPAR compared to 2024. • Marriott implemented a targeted room rate reduction strategy in the closing months of 2025 for guests from the Pacific Northwest region and for longer-term guest stays, which resulted in stronger December 2025 revenue performance compared to the SPLY, yielding a 14% increase in occupancy and 32% improvement in RevPar. QUARTERLY UPDATES RITZ-CARLTON HOTEL OFFICE/RETAIL RITZ-CARLTON RESIDENCES • 251 rooms (floors 8 – 20) • Amenities: • Lobby lounge • Bellpine restaurant and bar; Meadowrue restaurant • Ritz-Carlton Club • Meeting & Event space (12,222 sf) • Business center • Fitness center, full-service spa and swimming pool • Class A office: 158,577 sf (floors 3– 7) • Office Tenants: • Davis Wright Tremaine LLP • Fisher & Phillips • Banneker Partners • Retail: 10,638 sf (floors 1– 2) • Retail Tenants: • The Flock (food hall) • Mahler Jewelers • 132 Ritz-Carlton branded condominium residences • Located on floors 21 – 35 • Avg. Unit SF: 1,688 • Amenities: • Balcony or terrace • Dedicated lobby • Hotel amenity access • Private rooftop terrace (8th floor) Key Metrics (12/31/2025 TTM) • Occupancy: 42.6% • ADR: $492 • Room RevPAR: $210 • Total RevPAR: $360 Key Metrics (12/31/2025 Rent Roll) • Total Occupancy: 28% • Office Occupancy: 23% • WA Office Rent/SF: $38 NNN • Office WAULT: 9.7 yrs. • Retail Occupancy: 100% • WA Retail Rent/SF: $46 NNN • Retail WAULT: 11 yrs. Key Metrics (Sales to Date) • # of units sold: 11 • % of units sold: 8.3% • Avg SF/unit sold: 1,464 • Avg Sale Price: $1.491M • Avg Sale Price/SF: $1,019
9 Small Business Lending Portfolio Review* QTD SALES BY PROGRAM PROGRAM COUNT15 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD LARGE 1,843 1.01B 21M 974M 4.7% 1.80 8.9% 8.8% SMALL/MICRO 5,826 142M 17M 122M 5.0% 1.34 11.7% 11.3% USDA 26 31M 1M 28M —% 1.65 8.4% 7.4% WORKING CAPITAL** 165 17M — 1M 56.5% 3.68 11.6% 11.6% TOTAL 7,860 1.20B 39M 1.13B 4.7% 1.75 9.3% 9.2% COLLATERAL Hotel 17% Eating Place 17% Retail 15% Doctors 6% Other 45% PROGRAM SALES PROCEEDS % PREMIUM LARGE $79M $86M 9.3% SMALL/MICRO $43M $47M 10.7% USDA $20M $22M 12.4% WORKING CAPITAL $37M $37M 1.1% *Includes assets offset by guaranteed loan financing liabilities of $524 million. **Purchased as part of the Funding Circle acquisition. 57% 60+ days delinquent at the time of purchase.
$23.5 $28.9 $89.4 $211.9 $39.1 $58.0 $200.4 $10.7 $173.4 $81.2 $145.4 $314.5 $343.3 $216.1 $173.5 $84.4 $2.8 $2.7 $96.5 $67.3 $18.4 $31.2 $41.4 $46.1 $41.9 $37.0 Bridge Construction Freddie Mac SBA USDA Working Capital Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 0 200 400 600 800 1,000 10 Quarterly Investment Activity $466.1M $421.9M $374.6M $784.3M $532.2M 4
11 Earnings Profile Gain on sale, net of variable costs: SBA 7(a): $3M USDA: $3M Business Loans: $3M Freddie Mac: $3M Primary/Special Servicing Fees: $(6)M Advances: $(2)M Balance (in thousands) Annualized ROE Contribution Recurring Revenue: Net interest income $ 16,791 4.2% Gain on sale, net of variable costs 12,338 3.1% Other recurring revenue 12,381 3.1% Total recurring revenue $ 41,510 10.4% Operating Expenses: Employee compensation & benefits (24,120) (6.0)% Fixed operating costs (21,110) (5.3)% Servicing expenses (8,247) (2.1)% Portland mixed-use asset (5,884) (1.5)% Investment advisory fees (4,544) (1.1)% Tax 4,014 1.0% Total operating costs and tax $ (59,891) (15.0)% Net loss from normal operations, net of tax $ (18,381) (4.6)% Other Items included in Earnings: Realized losses $ (28,973) (7.2)% Charge off of specific loan loss reserve (36,014) (9.0)% CECL & valuation allowances (152,312) (38.0)% Mark-to-market (9,127) (2.3)% Non-cash compensation (797) (0.2)% Bargain purchase gain adj net of costs (3,820) (1.0)% Other income (expenses) (12,748) (3.2)% Discontinued operations (63) —% Tax 27,624 6.9% Total other items included in earnings $ (216,230) (54.0)% Net loss including dividends on preferred stock $ (234,611) (58.6)% Servicing Income: $6M Income from Unconsolidated JV's: $2M Realized gains on hedges: $2M Interest on outstanding cash: $1M Other Income: $1M R&D Reserve: $(2)M Ritz Depreciation: $(2)M Fees related to property acquisition: $(4)M MSR Impairment: $(1)M Other Nonrecurring loss: $(4)M Professional Fees: $(7)M Technology Expense: $(4)M Depreciation and amortization: $(2)M Dividends on preferred stock: $(2)M Rent and property tax exp: $(2)M Other operating expenses: $(4)M Net operating income (loss): $(2)M Interest expense: $(4)M
12 Operating Segment Contribution16 LMM CRE TOTAL OPERATING EXPENSES EQUITY ALLOCATION17 EPS CONTRIBUTION RECURRING REVENUE DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES9 ON ALLOCATED EQUITY DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES9 CORPORATE & OTHER SMALL BUSINESS LENDINGCORE NON-CORE & REO $5.3B / 71% $0.9B / 12% $0.9B / 12% $0.4B / 5% $7.5B / 100% 69% 18% 13% N/A 100% $(0.75) $(0.28) $(0.15) $(0.29) $(1.47) $0.23 $(0.06) $0.00 $(0.26) $(0.09) 9.4% (2.4)% (0.2)% (9.9)% (3.1)% 8.0% (8.1)% (0.9)% N/A (3.1)% $48.6M $(6.3)M $24.6M $(25.4)M $41.5M $(27.3)M $2.6M $(22.2)M $(13.0)M $(59.9)M AVERAGE TOTAL ASSETS ($ / %) DISTRIBUTABLE EPS BEFORE REALIZED LOSSES3
13 Book Value per Share $10.28 $(1.46) $(0.01) $0.04 $8.79 Q3'25 GAAP BVPS Net Income (Loss) Dividends Share Repurchases Q4'25 GAAP BVPS $8.00 $8.50 $9.00 $9.50 $10.00 $10.50
14 Capitalization Debt Balance ($ in millions) Leverage Ratio PPPLF $9 0.0x Securitized Debt Obligations $1,175 0.8x Non-Recourse Secured Borrowings $1,707 1.1x Recourse Secured Borrowings $1,082 0.7x Corporate Debt $1,375 0.9x UNENCUMBERED ASSET POOL 23% 26% 18% 7% 26% Unrestricted cash Loans Servicing rights REO Other Assets HIGHLIGHTS • 1.1x unencumbered assets to unsecured debt • $1.5 billion in available warehouse borrowing capacity across 12 counterparties • Limited usage of securities repo financing at 2.4% of total debt • Full mark-to-market liabilities and credit mark-to-market liabilities represent 43% of total debt $0.7B UNENCUMBERED ASSET POOL
APPENDIX Additional Financial Information
16 LMM CRE Loan Portfolio - Migration CONTRACTUAL STATUS (5) CORE Q1’25 Q2’25 Q3’25 Q4’25 CURRENT 93.8% 90.4% 90.9% 85.2% 30-59 DAYS PAST DUE 2.1% 5.0% 3.2% 8.1% 60+ DAYS PAST DUE 4.1% 4.6% 5.9% 6.7% NON-CORE Q1’25 Q2’25 Q3’25 Q4’25 CURRENT 37.3% 30.0% 50.4% 22.3% 30-59 DAYS PAST DUE —% 2.4% 3.0% —% 60+ DAYS PAST DUE 62.7% 67.6% 46.6% 77.7% ACCRUAL STATUS (5) CORE Q1’25 Q2’25 Q3’25 Q4’25 ACCRUAL 96.3% 94.8% 95.6% 76.6% NON-ACCRUAL 3.7% 5.2% 4.4% 23.4% NON-CORE Q1’25 Q2’25 Q3’25 Q4’25 ACCRUAL 14.9% 11.6% 42.8% —% NON-ACCRUAL 85.1% 88.4% 57.2% 100.0% RISK RATING (5) CORE Q1’25 Q2’25 Q3’25 Q4’25 1 & 2 55.0% 56.5% 44.0% 43.4% 3 37.4% 38.2% 50.5% 44.3% 4 3.5% 1.7% 4.1% 10.5% 5 4.1% 3.6% 1.4% 1.8% NON-CORE Q1’25 Q2’25 Q3’25 Q4’25 1 & 2 4.0% 2.4% 9.2% 10.7% 3 33.3% 35.8% 26.6% 6.5% 4 —% 3.8% 13.4% 24.8% 5 62.7% 58.0% 50.8% 58.0%
17 Financial Snapshot ($ in thousands, except share data) Investment Type Average Carrying Value Gross Yield Average Debt Balance Debt Cost Levered Yield LMM CRE $ 5,366,473 7.2 % $ 3,623,290 7.2 % 7.2 % SBL $ 799,319 18.3 % $ 436,041 8.0 % 30.3 % Total $ 6,165,792 8.6 % $ 4,059,331 7.3 % 11.2 % Book Equity Value Metrics Common Stockholders' equity $ 1,432,654 Total Common Shares outstanding 163,010,012 Net Book Value per Common Share $8.79 Loan Portfolio Metrics % Fixed vs Floating Rate 19% / 81% % Originated vs Acquired 92% / 8% Weighted Average LTV - LMM CRE 77% Weighted Average LTV - SBL 105 % Q4 2025 Earnings Data Metrics Net loss from continuing ops | Distributable loss before realized losses | Distributable loss $(232,565) | $(10,070) | $(65,279) EPS - continuing operations - Basic and diluted $(1.46) | $(1.46) Distributable EPS - Basic and diluted $(0.43) | $(0.43) Distributable EPS before realized losses - Basic and diluted $(0.09) | $(0.09) ROE continuing ops per Common Share (58.8) % Distributable ROE per Common Share (16.8) % Distributable ROE before realized losses per Common Share (3.1) % Dividend Yield 1.8 % Servicing Portfolio Metrics SBA - UPB $ 1,916,211 SBA - carrying value $ 41,056 Multi-family - UPB $ 6,318,735 Multi-family - carrying value $ 61,331 USDA - UPB $ 699,779 USDA - carrying value $ 20,620 Small business loans - UPB $ 419,016 Small business loans - carrying value $ 3,272 10 11 12 13 13 14
18 Balance Sheet by Quarter (in thousands) 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 Assets Cash and cash equivalents $ 143,803 $ 205,917 $ 162,935 $ 147,505 $ 207,841 Restricted cash 30,560 39,603 56,769 44,491 39,746 Loans, net 3,378,149 4,354,017 5,066,694 4,360,501 3,500,298 Loans, held for sale 241,626 528,726 632,784 163,792 585,820 Mortgage-backed securities 31,006 31,415 32,310 33,105 34,501 Investment in unconsolidated joint ventures 161,561 170,920 169,369 178,840 161,424 Derivative instruments 7,963 6,907 5,754 5,295 6,740 Servicing rights 128,440 129,814 124,283 126,966 126,279 Real estate owned 193,437 199,910 199,790 632,985 620,225 Other assets 362,486 399,702 462,711 472,516 508,238 Assets of consolidated VIEs 5,175,295 3,723,738 2,395,398 2,166,105 1,978,684 Assets held for sale 287,595 185,782 — — — Total Assets $ 10,141,921 $ 9,976,451 $ 9,308,797 $ 8,332,101 $ 7,769,796 Liabilities Secured borrowings 2,035,176 2,713,415 3,506,670 2,879,172 2,788,926 Securitized debt obligations of consolidated VIEs, net 3,580,513 2,574,139 1,513,297 1,293,778 1,174,785 Senior secured notes and Corporate debt, net 1,333,112 1,488,666 1,387,029 1,387,775 1,375,216 Guaranteed loan financing 691,118 668,847 629,380 565,883 524,091 Contingent consideration 573 15,982 17,189 18,385 18,698 Derivative instruments 352 575 1,986 1,627 1,432 Dividends payable 43,168 23,929 22,917 22,602 3,633 Loan participations sold 95,578 98,128 101,863 102,987 56,616 Due to third parties 1,442 1,071 9,791 9,927 3,135 Accounts payable and other accrued liabilities 188,051 185,533 184,652 166,406 171,636 Liabilities held for sale 228,735 156,614 — — — Total Liabilities $ 8,197,818 $ 7,926,899 $ 7,374,774 $ 6,448,542 $ 6,118,168 Preferred stock Series C 8,361 8,361 8,361 8,361 8,361 Stockholders’ Equity Preferred stock 111,378 111,378 111,378 111,378 111,378 Common stock 17 17 17 17 17 Additional paid-in capital 2,250,291 2,302,101 2,267,540 2,257,078 2,264,355 Retained deficit (505,089) (450,276) (528,524) (569,709) (807,522) Accumulated other comprehensive loss (18,552) (21,673) (23,293) (24,096) (24,196) Total Ready Capital Corporation equity 1,838,045 1,941,547 1,827,118 1,774,668 1,544,032 Non-controlling interests 97,697 99,644 98,544 100,530 99,235 Total Stockholders’ Equity $ 1,935,742 $ 2,041,191 $ 1,925,662 $ 1,875,198 $ 1,643,267 Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity $ 10,141,921 $ 9,976,451 $ 9,308,797 $ 8,332,101 $ 7,769,796 Book Value per Share $ 10.61 $ 10.61 $ 10.44 $ 10.28 $ 8.79
19 Statement of Operations by Quarter (In thousands, except share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Interest income $ 203,965 $ 154,967 $ 152,735 $ 137,491 $ 123,973 Interest expense (153,911) (140,466) (135,837) (126,971) (110,851) Net interest income before (provision for) recovery of loan losses $ 50,054 $ 14,501 $ 16,898 $ 10,520 $ 13,122 Recovery of (provision for) loan losses (285,008) 109,568 (8,640) (37,977) (149,989) Net interest income after (provision for) recovery of loan losses $ (234,954) $ 124,069 $ 8,258 $ (27,457) $ (136,867) Non-interest income Net realized gain (loss) on financial instruments and real estate owned (10,934) 10,669 18,214 (160,396) (10,599) Net unrealized gain (loss) on financial instruments (17,025) (1,750) (1,614) 2,914 (12,703) Valuation (allowance) recovery, loans held for sale 31,229 (99,718) (39,746) 178,225 (23,318) Servicing income, net of amortization and impairment 4,112 6,456 (304) 7,509 5,042 Income (loss) on unconsolidated joint ventures 6,065 (3,982) (144) 7,417 1,271 Gain (loss) on bargain purchase — 102,471 (14,381) 24,472 (3,013) Other income 13,557 11,590 11,304 14,773 16,049 Total non-interest income (expense) $ 27,004 $ 25,736 $ (26,671) $ 74,914 $ (27,271) Non-interest expense Employee compensation and benefits $ (23,320) $ (21,254) $ (23,159) $ (21,151) $ (23,923) Allocated employee compensation and benefits from related party (3,350) (3,276) (3,600) (3,602) (4,350) Professional fees (7,557) (5,488) (6,368) (6,008) (12,973) Management fees – related party (5,518) (5,577) (5,072) (5,156) (4,543) Loan servicing expense (12,749) (15,844) (11,038) (9,771) (4,605) Transaction related expenses (4,878) (2,694) (639) (1,910) (807) Impairment on real estate (29,876) (2,346) (4,268) (1,862) (15,027) Other operating expenses (19,637) (16,123) (16,133) (24,879) (33,821) Total non-interest expense $ (106,885) $ (72,602) $ (70,277) $ (74,339) $ (100,049) Income (loss) from continuing operations before income tax benefit $ (314,835) $ 77,203 $ (88,690) $ (26,882) $ (264,187) Income tax benefit 17,318 5,207 39,939 9,935 31,622 Net income (loss) from continuing operations $ (297,517) $ 82,410 $ (48,751) $ (16,947) $ (232,565) Discontinued operations Income (loss) from discontinued operations before benefit (provision) for income taxes $ (22,978) $ (594) $ (6,567) $ 280 $ (63) Income tax benefit (provision) 5,744 149 1,641 (70) 16 Net income (loss) from discontinued operations $ (17,234) $ (445) $ (4,926) $ 210 $ (47) Net income (loss) $ (314,751) $ 81,965 $ (53,677) $ (16,737) $ (232,612) Less: Dividends on preferred stock 1,999 1,999 1,999 1,999 1,999 Less: Net income attributable to non-controlling interest 1,389 2,460 1,814 2,008 1,572 Net income (loss) attributable to Ready Capital Corporation $ (318,139) $ 77,506 $ (57,490) $ (20,744) $ (236,183) Earnings per common share from continuing operations - basic $ (1.80) $ 0.47 $ (0.31) $ (0.13) $ (1.46) Earnings per common share from discontinued operations - basic $ (0.10) $ 0.00 $ (0.03) $ 0.00 $ 0.00 Earnings per common share from continuing operations - diluted $ (1.80) $ 0.46 $ (0.31) $ (0.13) $ (1.46) Earnings per common share from discontinued operations - diluted $ (0.10) $ 0.00 $ (0.03) $ 0.00 $ 0.00 Weighted-average shares outstanding - Basic 167,434,683 165,166,276 167,749,917 163,574,703 161,734,869 Weighted-average shares outstanding - Diluted 168,845,426 167,723,519 170,673,088 165,873,807 164,450,230 Dividends declared per share of common stock $ 0.25 $ 0.125 $ 0.125 $ 0.125 $ 0.01
20 Distributable Earnings Reconciliation by Quarter The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision- making, including the determination of dividends. However, because Distributable Earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of Distributable Earnings may not be comparable to other similarly-titled measures of other companies. We calculate Distributable earnings as GAAP net income (loss) excluding the following: i) any unrealized gains or losses on certain MBS not retained by us as part of our loan origination businesses ii) any realized gains or losses on sales of certain MBS iii) any unrealized gains or losses on Residential MSRs from discontinued operations iv) any unrealized change in current expected credit loss reserve and valuation allowances v) any unrealized gains or losses on de-designated cash flow hedges vi) any unrealized gains or losses on foreign exchange hedges vii) any unrealized gains or losses on certain unconsolidated joint ventures viii) any non-cash compensation expense related to stock-based incentive plan ix) any unrealized gains or losses on preferred equity, at fair value x) any unrealized gain or losses or other non-cash items related to real estate owned xi) one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses In calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating Distributable Earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size. In addition, in calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value from discontinued operations. In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either commercial MSRs as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance. To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years. (In thousands, except share data) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net Income (loss) $ (314,751) $ 81,965 $ (53,677) $ (16,737) $ (232,612) Reconciling items: Unrealized (gain) loss on MSR - discontinued operations $ 33,175 $ 8,952 $ — $ — $ — Unrealized (gain) loss on joint ventures (5,015) 5,639 1,019 (4,336) 523 Increase (decrease) in CECL reserve 277,277 (112,127) 487 32,844 113,974 Increase (decrease) in valuation allowance (31,229) 99,718 39,746 (178,225) 23,318 Non-recurring REO impairment 31,175 2,346 4,418 1,862 15,027 Non-cash compensation 2,826 1,785 1,634 1,591 797 Unrealized (gain) loss on preferred equity, at fair value 15,613 — 4,227 (1,949) 10,645 Merger transaction costs and other non-recurring expenses 6,579 2,993 3,661 2,220 3,102 (Gain) loss on bargain purchase — (102,471) 14,381 (24,472) 3,013 Depreciation and amortization on real estate owned — — — 1,100 1,712 Realized losses on sale of investments 51,688 20,084 8,896 188,512 64,987 Total reconciling items $ 382,089 $ (73,081) $ 78,469 $ 19,147 $ 237,098 Income tax adjustments (22,825) (4,744) (37,496) (4,580) (14,556) Distributable earnings (loss) before realized losses $ 44,513 $ 4,140 $ (12,704) $ (2,170) $ (10,070) Realized losses on sale of investments, net of tax (44,246) (15,524) (7,088) (147,422) (55,209) Distributable earnings (loss) $ 267 $ (11,384) $ (19,792) $ (149,592) $ (65,279) Less: Distributable earnings attributable to non-controlling interests 3,113 1,985 1,990 1,473 1,926 Less: Income attributable to participating shares 249 229 215 211 16 Less: Dividends on preferred stock 1,999 1,999 1,999 1,999 1,999 Distributable loss attributable to common stockholders $ (5,094) $ (15,597) $ (23,996) $ (153,275) $ (69,220) Distributable earnings (loss) before realized losses on investments, net of tax per common share - basic $ 0.23 $ 0.00 $ (0.10) $ (0.04) $ (0.09) Distributable loss per common share - basic $ (0.03) $ (0.09) $ (0.14) $ (0.94) $ (0.43) Weighted average common shares outstanding 167,434,683 165,166,276 167,749,917 163,574,703 161,734,869
21 Loan Portfolio – Risk Rating Criteria BUCKET 1: Very Low Risk of Loss: New origination or current with strong credit metrics (LTV/DSCR/DY). No expected losses. BUCKET 2: Low Risk of Loss: Current with maturity > 6 months. Lower credit metrics with possibility of inclusion on CREFC watchlist. No expected losses. BUCKET 3: Medium Risk of Loss: Current with near term maturities or in forbearance. Loss unlikely with no specific reserves booked. BUCKET 4: Higher Risk: Loan delinquent or in maturity default. Potential issues with sponsor or business plans. Minimal losses possible and adequately reserved in current period. BUCKET 5: Highest risk: Loan in default or special servicing. Specific losses identified and adequately reserved for in current period.
22 Footnotes 1 . Before income attributable to participating shares of $2.0 million and non-controlling interest of $1.6 million 2 . Before income attributable to participating shares of $2.0 million and non-controlling interest of $1.9 million. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 3 . Before income attributable to participating shares of $2.0 million, non-controlling interest of $2.0 million and before certain charge-offs and losses on sales of real estate owned assets and LMM loans. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 4 . Represents fully committed amounts 5 . Calculated based on carrying value 6 . Recourse leverage ratio excludes $1.7 billion of secured borrowings that are non-recourse to the Company 7 . Excludes joint venture investments and preferred equity investments 8 . Loans with the “Other” classification are generally LMM acquired loans that have nonconforming characteristics for the Fixed rate, Bridge, or Construction categories 9 . Distributable return on equity from continuing operations before realized losses is an annualized percentage equal to distributable earnings over the average monthly total stockholders’ equity for the period before certain charge-offs and losses on sales of real estate owned assets and LMM loans. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 10 . Average carrying value includes average quarterly carrying value of loan and servicing asset balances. 11 . Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis. 12 . The Company finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest expense is calculated based on interest expense and deferred financing amortization on an annualized basis. 13 . Loan-to-value (LTV) is calculated by dividing the current unpaid principal balance by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process. 14 . Q4 dividend yield for the period is based on the 12/31/2025 closing share price of $2.18. 15 . Includes the loans which are offset by $524M of guaranteed loan financings 16 . Respective balances are based on quarterly averages 17 . Corporate debt is allocated for purposes of determining equity allocation 18 . Excludes Portland, OR Mixed-Use property 19 . Represents loans that are under modifications and carried on the consolidated balance sheet as of the period end. 20 . Strategy as of February 10, 2026
FAQ
How did Ready Capital (RC) perform financially in Q4 2025?
Ready Capital reported a net loss from continuing operations of $232.6 million, or $(1.46) per common share, in Q4 2025. The company also reported a distributable loss per share of $(0.43), reflecting large credit provisions and realized losses on investments during the quarter.
What happened to Ready Capital’s book value per share in 2025?
Book value per common share declined to $8.79 at December 31, 2025, compared with $10.61 at December 31, 2024. This drop reflects cumulative net losses, realized investment losses, and portfolio adjustments over the year, partially offset by equity capital and retained amounts.
What were Ready Capital’s distributable earnings metrics for Q4 2025?
For Q4 2025, Ready Capital reported a distributable loss of $65.3 million, with distributable loss attributable to common stockholders of $69.2 million. Distributable loss per common share was $(0.43), and distributable loss before realized losses was $(10.1) million, or $(0.09) per share.
How is Ready Capital managing its loan portfolio and credit risk?
Ready Capital recorded a Q4 2025 provision for loan losses of $149.9 million and increased its CECL reserve by $114.0 million. The commercial real estate loan portfolio totaled about $5.9 billion, and management highlighted sales of non-core loans and active asset management to address problem exposures.
What capital and liquidity actions did Ready Capital take around year-end 2025?
The company completed the sale of 34 loans with unpaid principal balance of $855.3 million and retired its 5.75% Senior Unsecured Note due February 2026. It reported total leverage of 3.5x and a recourse leverage ratio of 1.6x, seeking to improve its liquidity profile.
What dividend did Ready Capital declare for Q4 2025?
Ready Capital declared a common stock dividend of $0.01 per share for Q4 2025. This is substantially lower than earlier 2025 quarterly dividends of $0.125 per share, aligning the payout with weaker distributable earnings and the company’s focus on preserving capital.
How did Ready Capital’s balance sheet change between 2024 and 2025?
Total assets declined from $10.14 billion at December 31, 2024 to $7.77 billion at December 31, 2025, while total liabilities fell from $8.20 billion to $6.12 billion. Total stockholders’ equity decreased from $1.94 billion to $1.64 billion over the same period.
Filing Exhibits & Attachments
6 documentsPress Releases
Ready Capital Corp
NYSE:RC
RC Rankings
RC Latest News
RC Latest SEC Filings
Feb 17, 2026
[25-NSE] Ready Capital Corp SEC Filing
Jan 8, 2026
[SCHEDULE 13G/A] Ready Capital Corp SEC Filing
Nov 10, 2025
[SCHEDULE 13D/A] Ready Capital Corp SEC Filing