Redwood Trust (NYSE: RWT) boosts earnings on record 2025 mortgage banking volume

Q: How did Redwood Trust (RWT) perform financially in Q4 2025?

Redwood Trust generated GAAP net income of $18.3 million , or $0.13 per basic and diluted share, in Q4 2025, reversing a prior-quarter loss of $0.08 per share. Core segments non-GAAP EAD reached $43.2 million , or $0.33 per basic share, reflecting stronger underlying earnings.

Q: What were Redwood Trust’s key mortgage banking volumes in 2025?

Redwood’s mortgage banking platforms produced a record $7.3 billion in Q4 2025 and $23 billion for the full year, a 111% year-over-year increase. These volumes span the Sequoia, Aspire, and CoreVest platforms and significantly outpaced operating expense growth, supporting higher returns on capital.

Q: What progress did Redwood Trust make on winding down Legacy Investments?

Legacy Investments reported a Q4 2025 GAAP net loss of $(18.6) million but saw meaningful runoff. Segment capital allocation decreased to 19% of total invested capital, legacy bridge unpaid principal balance fell 38% to $272 million , and 90-day-plus delinquencies declined sharply over 2025.

Q: How did Redwood Trust manage its capital structure and share count in 2025?

Redwood ended 2025 with $256 million of unrestricted cash and recourse debt of $4.4 billion . It retired convertible debt maturing in October 2025, issued $100 million of senior unsecured bonds, and repurchased 9.2 million common shares for $53 million , adding $0.13 per share of book value accretion.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Redwood Trust, Inc. reported stronger results for the quarter and year ended December 31, 2025, driven by record mortgage banking activity. Fourth-quarter GAAP net income was $18.3 million, or $0.13 per share, compared with a loss of $0.08 per share in the prior quarter. Core segments non-GAAP Earnings Available for Distribution were $43.2 million, or $0.33 per basic share, reflecting a 23.8% annualized Core Segments EAD return on equity. Mortgage banking production reached a record $7.3 billion in the quarter and $23 billion for 2025, a 111% year-over-year increase, supporting a 26% full-year mortgage banking return on capital. GAAP book value per common share was $7.36 at year-end, after paying a $0.18 quarterly dividend, and the company repurchased 9.2 million shares for $53 million during 2025 while continuing to wind down its Legacy Investments portfolio.

Positive

Record mortgage banking growth and profitability: 2025 mortgage banking volume reached $23 billion (111% year-over-year increase) with a 26% return on capital, while Core Segments EAD ROE rose to 23.8% in Q4, indicating a materially stronger earnings engine than in prior periods.

Negative

None.

Insights

Record mortgage banking volumes and higher returns mark a clear earnings inflection for Redwood’s core business.

Redwood Trust delivered a solid turnaround in Q4 2025, posting GAAP net income of $18.3 million versus a prior-quarter loss, and Core Segments EAD of $43.2 million. Mortgage banking production hit a record $7.3 billion in the quarter and $23 billion for 2025, a 111% year-over-year increase.

The profitability of these volumes was notable: mortgage banking generated a full-year ROC of 26%, while Q4 Core Segments EAD ROE reached 23.8%. Sequoia and CoreVest posted Q4 segment ROCs of 29% and 30%, respectively, helped by wider gain-on-sale margins and better cost efficiency, including a 44% improvement in total operating cost per loan in 2025.

Strategically, capital continues to rotate toward core activities, with 81% of total capital in core segments and Legacy Investments shrinking to 19%. Management highlights that core operating performance is expected to cover the common dividend over 2026, and describes a growing opportunity from potential jumbo refinance activity if rates move lower, though actual benefits will depend on future market conditions and volumes.

Leverage supports growth in mortgage banking while legacy assets and high-cost debt continue to be reduced.

At December 31, 2025, total assets were $23.7 billion with stockholders’ equity of $983 million. Recourse debt rose to $4.4 billion from $3.8 billion, primarily from higher use of warehouse lines where loans are typically held about 30–36 days before repayment, tying leverage to short-duration mortgage banking inventory.

Legacy Investments remained a drag with a Q4 GAAP segment net loss of $(18.6) million, but capital allocation to this segment fell to 19% of invested capital and legacy bridge unpaid principal balance declined 38% to $272 million. The company refinanced its capital stack by retiring 2025 convertible debt and issuing $100 million of senior unsecured bonds, and repurchased $15 million of common stock in Q4, balancing shareholder returns with ongoing deleveraging of non-core exposures.

02/11/2026 - 04:15 PM

UNITED STATES

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 11, 2026

REDWOOD TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland

001-13759

68-0329422

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

One Belvedere Place

Suite 300

Mill Valley, California 94941

(Address of principal executive offices and Zip Code)

(415) 389-7373

(Registrant’s telephone number, including area code)

Not Applicable

(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 or Rule 12b-2 of the Securities Exchange Act of 1934.

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 Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	RWT	New York Stock Exchange
10% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock, par value $0.01 per share	RWT PRA	New York Stock Exchange
9.125% Senior Notes Due 2029	RWTN	New York Stock Exchange
9.0% Senior Notes Due 2029	RWTO	New York Stock Exchange
9.125% Senior Notes Due 2030	RWTP	New York Stock Exchange
9.500% Senior Notes Due 2030	RWTQ	New York Stock Exchange


Item 2.02.			Results of Operations and Financial Condition;


Item 7.01.			Regulation FD Disclosure.

On February 11, 2026, Redwood Trust, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended December 31, 2025, the Redwood Trust Shareholder Letter – 4th Quarter 2025, and The Redwood Review – 4th Quarter 2025, copies of which are attached as Exhibit 99.1, Exhibit 99.2, and Exhibit 99.3, respectively, to this current report on Form 8-K.

In addition, on February 11, 2026, the Company made available Supplemental Financial Tables presenting certain financial results for the quarter ended December 31, 2025. A link to the Supplemental Financial Tables is available at the Company’s website at http://www.redwoodtrust.com, in the Investor Relations section of the website under “Financials.”

The information contained in this Item 2.02 and Item 7.01 and the attached Exhibits 99.1, 99.2, and 99.3 is furnished to and not filed with the SEC, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 9.01.			Financial Statements and Exhibits.


(d)						Exhibits

Exhibit 99.1						Press Release issued February 11, 2026
Exhibit 99.2						Redwood Trust Shareholder Letter - 4th Quarter 2025
Exhibit 99.3						The Redwood Review – 4th Quarter 2025
Exhibit 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 thereunto duly authorized.

Date: February 11, 2026

REDWOOD TRUST, INC.

By:

/s/ BROOKE E. CARILLO

Name: Brooke E. Carillo

Title: Chief Financial Officer

Exhibit 99.1

REDWOOD TRUST REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS; RECORD PLATFORM PERFORMANCE DRIVES EARNINGS GROWTH

MILL VALLEY, CA – Redwood Trust, Inc. (NYSE:RWT; "Redwood", the "Company"), a leader in expanding access to housing for homebuyers and renters, today reported its financial results for the quarter ended December 31, 2025.

Fourth Quarter 2025 Highlights

•Fourth quarter results reflect continued momentum across Redwood’s Mortgage Banking platforms, with higher production revenues translating directly into earnings growth

◦Mortgage Banking production reached a record $7.3 billion(1)

◦Profitably generated record Mortgage Banking GAAP net income of $51.3 million; sixth consecutive quarter of 20%+ Return on Capital ("ROC") for our Mortgage Banking segments(1)(2)

•Wind-down of Legacy Investments portfolio on target; capital allocated to legacy assets declined to 19% at year-end 2025

Full Year 2025 Highlights

•Full year results driven by a record $23 billion of combined Mortgage Banking volume, a 111% year-over-year increase

◦Achieved full-year combined Mortgage Banking GAAP net income of $146.2 million and ROC of 26%(2)

◦Mortgage Banking volumes significantly outpaced operating expense growth, affirming the leverage within our fixed cost base; total operating cost per loan improved 44%(1)(3)

•Repurchased 9.2 million shares of common stock for $53 million, resulting in $0.13 of accretion to book value per share

Key Financial Fourth Quarter 2025 Results and Metrics

•GAAP book value per common share was $7.36 at December 31, 2025, compared to $7.35 per share at September 30, 2025

◦Economic return on book value of 2.6% for the fourth quarter 2025(4)

•GAAP net income of $18.3 million or $0.13 per basic and diluted common share

•Non-GAAP Core Segments Earnings Available for Distribution ("Core Segments EAD") of $43.2 million or $0.33 per basic common share (refer to non-GAAP reconciliation under the section titled "Non-GAAP Disclosures")(5)

“The past year was a transformational one for our operating platforms and reflected the progress we have made in enhancing their scale and profitability,” said Christopher Abate, Chief Executive Officer of Redwood. “Across Sequoia, Aspire, and CoreVest, strong volume growth translated directly into record revenues and attractive returns, even amidst a muted housing environment. In recent months, we have taken targeted actions to further simplify our operating structure and sharpen our focus on businesses generating strong and sustainable returns, positioning the platform to realize cost savings in future periods. As we look ahead, we see a clear opportunity to further scale our core businesses, where positive operating leverage and pace of capital turnover are driving a durable earnings profile, and where incremental capital can be deployed efficiently to support continued growth.”


($ in millions, except per share data)	Three Months Ended
	12/31/2025			9/30/2025
Financial Performance
Book Value per Common Share	$	7.36		$	7.35
Economic Return on Book Value (4)	2.6		%	0.5		%


Net Income (Loss) per Basic Common Share	$	0.13		$	(0.08)
Non-GAAP Core Segments EAD per Basic Common Share (5)	$	0.33		$	0.20




Dividends per Common Share	$	0.18		$	0.18

Q4 2025 Segment Highlights


GAAP Segment Net Income (Loss) Results Summary
($ in millions)
	Three Months Ended
	12/31/2025		9/30/2025
Core Segments:
Sequoia Mortgage Banking	$	43.8	$	34.3
CoreVest Mortgage Banking	7.5		3.5
Redwood Investments	20.9		10.3



Total Core Segments	$	72.2	$	48.2
Legacy Investments Segment	$	(18.6)	$	(22.2)
Corporate/Other	$	(35.3)	$	(35.4)
Total GAAP Net Income (Loss)	$	18.3	$	(9.5)

Sequoia Mortgage Banking

•Segment GAAP net income of $43.8 million

•Generated 29% annualized ROC(2) and non-GAAP EAD ROC(6)

•Gain on sale margin of 127 basis points, up 37% from 93 basis points in the third quarter 2025, exceeding our target range of 75 to 100 basis points

•Locked $6.8 billion of loans, up 8% from $6.3 billion in the third quarter 2025 and up 193% from $2.3 billion in the fourth quarter 2024(7)

◦Sequoia lock volume of $5.3 billion, driven by increased wallet share across both bank and non-bank sellers

◦Aspire lock volume of $1.5 billion represented a 19% increase from the third quarter of 2025 as the platform continued to scale(8)

•Distributed $4.8 billion of loans through a combination of securitizations ($3.0 billion) and whole loan sales ($1.8 billion)

•Cost per loan improved 21% year-over-year in 2025 to 23bps(9)

CoreVest Mortgage Banking

•Segment GAAP net income of $7.5 million

•Generated 30% and 36% annualized ROC(2) and non-GAAP EAD ROC(6), respectively

•Funded $460 million of loans (54% bridge and 46% term), a 12% decrease from $521 million in the third quarter 2025 and an 8% decrease from $501 million in the fourth quarter 2024

◦Decline in bridge and term volumes offset by continued growth in small-balance (DSCR and RTL) production

•Distributed $582 million of loans through whole loan sales, securitizations and sales to joint ventures ("JVs"), up over 50% from the third quarter 2025

•Full-year 2025 net cost to originate improved by 22% year-over-year, reflecting reduced production costs and increased revenue margins through our joint venture and other distribution channels(10)

Redwood Investments

•Generated segment GAAP net income of $20.9 million and 17% annualized ROC(2)

◦Results improved quarter over quarter due to positive fair value changes from spread tightening on the quarter and higher net interest income from increased capital deployment

•Redwood Investments recourse leverage ratio remained low at 1.0x at December 31, 2025, effectively unchanged from September 30, 2025(11)

Legacy Investments

•Segment GAAP net loss of $(18.6) million

◦Results improved quarter over quarter on lower negative carry costs, which benefited from continued resolutions within our legacy bridge portfolio

•Segment capital allocation decreased to 19% of total invested capital, compared to 28% at September 30, 2025

◦Legacy Bridge unpaid principal balance ("UPB") declined 38% to $272 million(12)

•Legacy Investments recourse leverage ratio of 1.3x at December 31, 2025(13)

Capital and Financing

•Unrestricted cash and cash equivalents of $256 million at December 31, 2025

•Raised $100 million of gross proceeds in senior unsecured bond offering

•Retired outstanding convertible debt maturing October 2025; next unsecured corporate debt maturity in June 2027(14)

•Recourse debt of $4.4 billion at December 31, 2025 compared to $3.8 billion at September 30, 2025(15)

◦Increase in recourse debt driven by higher utilization of mortgage banking warehouse facilities where loans are typically held an average of 30 days before borrowings are repaid

•Repurchased 2.7 million shares of common stock for $15 million, resulting in $0.04 of accretion to book value per share

_____________________

1.Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments.

2.ROC is a non-GAAP measure for a segment that is calculated as GAAP segment net income (loss) annualized divided by average capital utilized for the segment during the period. Average capital utilized represents management's internal estimate of the average economic capital allocated to support the activities of each segment.

3.Operating cost per loan is calculated as total operating expense (including corporate) divided by total mortgage banking volume for Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. Improvement represents the change in this figure for full year 2025 compared to full year 2024.

4.Economic return on book value is based on the period change in GAAP book value per common share plus dividends declared per common share in the period.

5.Core Segments EAD is a non-GAAP measure used to present management’s non-GAAP analysis of the combined performance of the Company’s mortgage banking platforms and related investments (which consist of the Company’s Sequoia Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments segments), inclusive of an allocated portion of the Company’s Corporate segment relating to those Core Segments. Core Segments EAD excludes the Company’s Legacy Investments segment and excludes an allocated portion of the Company’s Corporate segment relating to the Legacy Investments segment. Core Segments EAD per basic common share and Core Segments EAD ROE are also non-GAAP financial measures and are calculated using Core Segments EAD. See Non-GAAP Disclosures section that follows for additional information on these measures.

6.EAD ROC for a segment is calculated as non-GAAP segment EAD annualized divided by average capital utilized for the segment during the period. Non-GAAP EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to: (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition related expenses; (iv) exclude certain organizational restructuring charges (as applicable); and (v) adjust for the hypothetical income taxes associated with these adjustments. Average capital utilized represents management's internal estimate of the average economic capital allocated to support the activities of each segment.

7.Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process.

8.Aspire lock volume is included in the Sequoia Mortgage Banking business segment results.

9.Cost per loan for the Sequoia Mortgage Banking segment is calculated as general and administrative expenses and loan acquisition costs of this segment divided by loan purchase commitments of this segment.

10.Net cost to originate for the CoreVest Mortgage Banking segment is calculated as operating expenses, less upfront origination fees, divided by origination volume.

11.Redwood Investments recourse leverage ratio is defined as recourse debt at Redwood Investments divided by capital invested. At December 31, 2025 recourse debt excludes $17.6 billion of consolidated securitization debt (ABS issued and servicer advance financing), other liabilities and other debt that is non-recourse to Redwood at Redwood Investments. Capital invested in our Redwood Investments segment at December 31, 2025 was $504 million.

12.Excludes value of real estate owned ("REO")

13.Legacy Investments recourse leverage ratio is defined as recourse debt at Legacy Investments divided by capital invested. At December 31, 2025 recourse debt excludes $176 million of consolidated securitization debt (ABS issued), other liabilities and other debt that is non-recourse to Redwood at Legacy Investments. Capital invested in our Legacy Investments segment at December 31, 2025 was $306 million.

14.Excludes $9 million of promissory notes payable on demand after 90-day notice.

15.At December 31, 2025, and September 30, 2025, recourse debt excluded $18.3 billion and $17.7 billion, respectively, of consolidated securitization debt (ABS issued and servicer advance financing), other liabilities and other debt that is non-recourse to Redwood, and tangible stockholders' equity excluded $34 million and $36 million, respectively, of goodwill and intangible assets.

Fourth Quarter 2025 Redwood Review and Supplemental Tables Available Online

A further discussion of Redwood's business and financial results is included in the fourth quarter 2025 Shareholder Letter and Redwood Review which are available under "Financial Info" within the Investor Relations section of the Company’s website at redwoodtrust.com/investor-relations. Additional supplemental financial tables can also be found within this section of the Company's website.

Conference Call and Webcast

Redwood will host an earnings call today, February 11, 2026, at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time to discuss its fourth quarter 2025 financial results. The number to dial in order to listen to the conference call is 1-877-423-9813 in the U.S. and Canada. International callers must dial 1-201-689-8573. A replay of the call will be available through midnight on Wednesday, February 11, 2026, and can be accessed by dialing 1-844-512-2921 in the U.S. and Canada or 1-412-317-6671 internationally and entering access code #13755968.

The conference call will be webcast live in listen-only mode through the News & Events section of Redwood’s Investor Relations website at https://www.redwoodtrust.com/investor-relations/news-events/events. To listen to the webcast, please go to Redwood's website at least 15 minutes before the call to register and to download and install any audio software needed. An audio replay of the call will also be available on Redwood's website following the call. Redwood plans to file its Annual Report on Form 10-K with the Securities and Exchange Commission by Monday, March 2, 2026, and also make it available on Redwood’s website.

REDWOOD TRUST, INC.




Consolidated Income Statements (1)	Three Months Ended
($ in millions, except share and per share data)	12/31/25		9/30/25

Net Interest Income from:
Sequoia mortgage banking	$	27.3	$	21.2
CoreVest mortgage banking	3.1		1.5
Redwood investments	20.1		17.6
Legacy investments	(8.4)		(9.1)
Corporate/other	(16.2)		(16.3)
Net Interest Income	$	25.9	$	15.0
Non-interest income
Sequoia mortgage banking activities, net	40.4		28.7
CoreVest mortgage banking activities, net	12.7		11.4
Investment fair value changes, net	(0.5)		(7.0)
HEI income, net	3.0		0.5
Servicing income, net	3.6		1.4
Fee income, net	1.8		4.6
Other income, net	2.2		(0.2)
Realized gains, net	(1.8)		—
Total non-interest income, net	$	61.3	$	39.4
General and administrative expenses	(40.8)		(38.7)
Portfolio management costs	(4.8)		(7.0)
Loan acquisition costs	(5.4)		(4.4)
Other expenses	(8.2)		(5.7)
(Provision for) income taxes	(8.0)		(6.4)
Net income (loss)	$	20.0	$	(7.7)
Dividends on preferred stock	(1.8)		(1.8)
Net income (loss) available (related) to common stockholders	$	18.3	$	(9.5)

Weighted average basic common shares (thousands)	126,295		129,018
Weighted average diluted common shares (thousands) (2)	126,570		129,018
Earnings (loss) per basic common share	$	0.13	$	(0.08)
Earnings (loss) per diluted common share	$	0.13	$	(0.08)
Regular dividends declared per common share	$	0.18	$	0.18

(1)Certain totals may not foot due to rounding.

(2)Actual shares outstanding (in thousands) at December 31, 2025 and September 30, 2025 were 124,460 and 126,753, respectively.

REDWOOD TRUST, INC.



Consolidated Balance Sheets (1)
($ in millions, except share and per share data)	12/31/25		9/30/25

Residential consumer loans	$	17,936	$	16,783
Residential investor loans	3,617		3,858

Real estate securities	423		419
Home equity investments (HEI)	330		326
Servicing investments	302		282
Strategic investments	102		82

Cash and cash equivalents	256		226
Other assets	736		624
Total assets	$	23,701	$	22,601

Asset-backed securities issued, net	$	17,492	$	16,825
Debt obligations, net	4,799		4,357
Other liabilities	427		420

Total liabilities	$	22,718	$	21,602
Stockholders' equity	983		999
Total liabilities and equity	$	23,701	$	22,601

Common shares outstanding at period end (thousands)	124,460		126,753
GAAP book value per common share	$	7.36	$	7.35

(1)Certain totals may not foot due to rounding.


Segment Financial Information (1)

	Three Months Ended December 31, 2025
(In Millions)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Legacy Investments		Corporate/ Other		Total
Interest income	$	67.0	$	6.3	$	248.6	$	4.7	$	0.5	$	327.0
Interest expense	(39.7)		(3.2)		(228.5)		(13.0)		(16.6)		(301.0)
Net interest income (expense)	27.3		3.1		20.1		(8.4)		(16.2)		25.9
Non-interest income (loss)


Mortgage banking activities, net	40.4		12.7		—		—		—		53.1


Investment fair value changes, net	—		—		8.0		(8.1)		(0.4)		(0.5)
HEI income, net	—		—		0.5		2.5		—		3.0
Servicing Income, net	—		—		3.6		—		—		3.6
Fee Income, net	—		1.7		0.2		(0.1)		—		1.8
Other income, net	—		1.9		0.4		(0.6)		0.5		2.2
Realized gains, net	—		—		—		(1.8)		—		(1.8)
Total non-interest income, net	40.4		16.3		12.7		(8.1)		—		61.3
General and administrative expenses	(12.7)		(9.5)		(1.1)		—		(17.5)		(40.8)
Portfolio management costs	—		—		(2.8)		(2.0)		—		(4.8)
Loan acquisition costs	(2.8)		(2.7)		—		—		—		(5.4)
Other expenses	—		(2.0)		(6.2)		—		—		(8.2)
Provision for income taxes	(8.4)		2.3		(1.8)		(0.2)		0.2		(8.0)
Net Income (Loss) (2)	$	43.8	$	7.5	$	20.9	$	(18.6)	$	(33.5)	$	20.0
Total Assets	$	3,321.1	$	358.0	$	18,744.7	$	942.5	$	334.8	$	23,701.1

(1)Certain totals may not foot due to rounding.

(2)Net Income (Loss) by segment is also referred to as Segment Net Income (Loss).


Segment Financial Information (continued) (1)

	Three Months Ended September 30, 2025
(In Millions)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Legacy Investments		Corporate/ Other		Total
Interest income	$	47.9	$	4.1	$	225.5	$	21.5	$	0.6	$	299.5
Interest expense	(26.7)		(2.6)		(207.9)		(30.5)		(16.9)		(284.5)
Net interest income (expense)	21.2		1.5		17.6		(9.1)		(16.3)		15.0
Non-interest income (loss)


Mortgage banking activities, net	28.7		11.4		—		—		—		40.1


Investment fair value changes, net	—		—		(1.7)		(6.7)		1.5		(7.0)
HEI income, net	—		—		0.7		(0.3)		—		0.5
Servicing Income, net	—		—		1.4		—		—		1.4
Fee Income, net	—		5.2		0.3		(0.9)		—		4.6
Other income, net	—		(0.9)		0.4		(0.5)		0.9		(0.2)
Realized gains, net	—		—		—		—		—		—
Total non-interest income (loss), net	28.7		15.7		1.1		(8.5)		2.3		39.4
General and administrative expenses	(7.8)		(10.0)		(1.6)		—		(19.3)		(38.7)
Portfolio management costs	—		—		(3.5)		(3.4)		—		(7.0)
Loan acquisition costs	(2.4)		(1.8)		—		(0.2)		—		(4.4)
Other expenses	—		(2.0)		(3.2)		(0.5)		—		(5.7)
(Provision for) benefit from income taxes	(5.5)		—		—		(0.6)		(0.3)		(6.4)
Net Income (Loss) (2)	$	34.3	$	3.5	$	10.3	$	(22.2)	$	(33.6)	$	(7.7)
Total Assets	$	2,659.3	$	393.8	$	16,906.8	$	2,305.2	$	335.8	$	22,600.8

(1)Certain totals may not foot due to rounding.

(2)Net Income (Loss) by segment is also referred to as Segment Net Income (Loss).

Non-GAAP Disclosures

To supplement consolidated and segment financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also provides Earnings Available for Distribution (“EAD”), Core Segments Earnings Available for Distribution (“Core Segments EAD”) and Core Segments EAD Return on Equity ("Core Segments EAD ROE") as non-GAAP measures.

Management believes these non-GAAP measures provide useful supplemental information to investors and management in evaluating the Company’s operating performance, facilitating comparisons to industry peers, and assessing the current income-generating capacity of the Company’s operating platforms as of the period presented, including the Company’s ability to pay dividends. These measures also assist in evaluating the Company’s ongoing transition to a more scalable and simplified business model, including the wind-down of legacy portfolio holdings within the Legacy Investments segment.

These non-GAAP measures should not be utilized in isolation, nor should they be considered as an alternative to GAAP net income (loss) available (related) to common stockholders, or other measurements of results of operations computed in accordance with GAAP or for federal income tax purposes.

Earnings Available for Distribution (“EAD”) is a non-GAAP financial measure that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items.

Core Segments EAD and Core Segments EAD ROE represent management’s non-GAAP assessment of the combined performance of the Company’s mortgage banking platforms and related investments, which include the Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments segments (collectively, the “Core Segments”), together with an allocated portion of the Corporate segment attributable to those operations.

Core Segments EAD excludes the Legacy Investments segment and the portion of the Corporate segment attributable to Legacy Investments. Core Segments EAD ROE is calculated as Core Segments EAD divided by the average capital utilized by the Core Segments during the period, which represents management’s internal estimate of the average economic capital allocated to support Core Segments activities.

Non-GAAP Disclosures (continued)


Reconciliation of GAAP to non-GAAP EAD – Fourth Quarter 2025 (1)

	Three Months Ended December 31, 2025
($ in millions)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Total Core Segments (3)		Legacy Investments		Corporate/Other		Total
GAAP Net Income (Loss)	$	43.8	$	7.5	$	20.9	$	72.2	$	(18.6)	$	(35.3)	$	18.3
EAD Adjustments:
Investment fair value changes, net (4)	—		—		(8.0)		(8.0)		8.1		0.4		0.5
Realized (gains)/losses, net (5)	—		—		—		—		1.8		—		1.8
Acquisition related expenses (6)	—		2.0		—		2.0		—		—		2.0
Tax effect of adjustments(7)	—		(0.5)		4.4		3.9		0.1		(0.1)		3.8
Non-GAAP EAD (2)	$	43.8	$	9.0	$	17.3	$	70.1	$	(8.6)	$	(35.0)	$	26.4
Adjustment for allocation of Corporate segment (8)	(13.6)		(2.2)		(11.1)		(26.9)		(8.1)		35.0		—
Non-GAAP EAD with Allocated Corporate Segment	$	30.2	$	6.8	$	6.2	$	43.2	$	(16.7)	$	—	$	26.4

Net Income (loss) (GAAP)													$	18.3
EAD (Non-GAAP)													$	26.4
Core Segments EAD (Non-GAAP)													$	43.2

Net Income (loss) per Basic Common Share (GAAP)													$	0.13
EAD per Basic common share (Non-GAAP)													$	0.20
Core Segments EAD per Basic Common Share (Non-GAAP) (9)													$	0.33

Return on Equity ("ROE") (annualized) (10)													7.7		%
Core Segments EAD Return on Equity (annualized) ("Core Segments EAD ROE") (Non-GAAP) (11)													23.8		%

Non-GAAP Disclosures (continued)


Reconciliation of GAAP to non-GAAP EAD – Third Quarter 2025 (1)

	Three Months Ended September 30, 2025
($ in millions)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Total Core Segments (3)		Legacy Investments		Corporate/Other		Total
GAAP Net Income (Loss)	$	34.3	$	3.5	$	10.3	$	48.1	$	(22.2)	$	(35.4)	$	(9.5)
EAD Adjustments:
Investment fair value changes, net (4)	—		—		1.7		1.7		6.7		(1.5)		7.0
Realized (gains)/losses, net (5)	—		—		—		—		—		0.1		0.1
Acquisition related expenses (6)	—		2.0		—		2.0		—		—		2.0
Tax effect of adjustments(7)	—		(0.5)		0.1		(0.4)		0.7		0.4		0.6
Non-GAAP EAD (2)	$	34.3	$	5.0	$	12.2	$	51.4	$	(14.8)	$	(36.4)	$	0.2
Adjustment for allocation of Corporate segment (8)	(11.5)		(1.6)		(11.3)		(24.4)		(12.0)		36.4		—
Non-GAAP EAD with Allocated Corporate Segment	$	22.8	$	3.4	$	0.8	$	27.1	$	(26.8)	$	—	$	0.2

Net Income (loss) (GAAP)													$	(9.5)
EAD (Non-GAAP)													$	0.2
Core Segments EAD (Non-GAAP)													$	27.1

Net Income (loss) per Basic Common Share (GAAP)													$	(0.08)
EAD per Basic common share (Non-GAAP)													$	0.01
Core Segments EAD per Basic Common Share (Non-GAAP) (9)													$	0.20

Return on Equity ("ROE") (annualized) (10)													(3.9)		%
Core Segments EAD Return on Equity (annualized) ("Core Segments EAD ROE") (Non-GAAP) (11)													16.8		%

1.Certain totals may not foot due to rounding.

2.EAD. Earnings Available for Distribution (“EAD”) is a non-GAAP measure that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items.

3.Core Segments EAD and Core Segments EAD ROE are non-GAAP measures and are used to present management’s non-GAAP analysis of the combined performance of the Company’s mortgage banking platforms and related investments (which are defined as the "Core Segments" and which consist of the Company’s Sequoia Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments Segments), inclusive of an allocated portion of the Company’s Corporate segment relating to those Core Segments. Core Segments EAD excludes the Company’s Legacy Investments segment and excludes an allocated portion of the Company’s Corporate segment relating to the Legacy Investments segment.

Core Segments EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to (i) exclude GAAP net loss from the Legacy Investments Segment, (ii) exclude the portion of the Corporate Segment allocation relating to the Legacy Investments segment, (iii) exclude investment fair value changes, net; (iv) exclude realized gains and losses; (v) exclude acquisition related expenses; (vi) exclude certain organizational restructuring charges (as applicable); and (vii) adjust for the hypothetical income taxes associated with these adjustments.

Refer to footnote 11 below for the definition of Core Segments EAD ROE.

4.Investment fair value changes, net includes all amounts within that same line item in our consolidated statements of (loss) income that are attributable to each segment, which primarily represents both realized and unrealized gains and losses on our investments held in each segment and associated hedges. Realized and unrealized gains and losses on our HEI investments are reflected in a separate line item on our consolidated income statements titled "HEI income, net".

5.Realized (gains)/losses, net includes all amounts within that line item on our consolidated statements of (loss) income that are attributable to each segment.

6.Acquisition related expenses include transaction costs paid to third parties, as applicable, and the ongoing amortization of intangible assets related to the Riverbend and CoreVest acquisitions.

7.Tax effect of adjustments represents the hypothetical income taxes associated with EAD adjustments used to calculate each segment EAD.

8.Allocation of Corporate Segment is based on the average capital utilized by the segment during the period, which represents management’s internal estimate of the average economic capital allocated to support the activities of each segment.

9.Core Segments EAD per basic common share is a non-GAAP measure and is defined as Core Segments EAD divided by basic weighted average common shares outstanding at the end of the period.

10.ROE consists of consolidated GAAP net income annualized divided by average common equity for the period.

11.Core Segments EAD ROE is a non-GAAP measure and is defined as Core Segments EAD annualized divided by average capital utilized by the Core Segments of $726 million and $643 million for the three months ended December 31, 2025 and September 30, 2025, respectively. Average capital utilized is management's internal estimate of the average economic capital allocated to support the activities of the Core Segments.

About Redwood

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. In addition, through RWT Horizons®, our venture investing initiative, we invest in early-stage companies that have a direct nexus to our operating platforms. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn.

Cautionary Statement; Forward-Looking Statements:

This press release and the related conference call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing for the filing of Redwood's Annual Report on Form 10-K. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ from Redwood's beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan” and similar expressions or their negative forms, or by references to strategy, plans, opportunities, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2024 under the caption “Risk Factors”. Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-K, 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


CONTACTS
Investor Relations
Kaitlyn Mauritz
Head of Investor Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com

Exhibit 99.2

Dear Fellow Shareholders,

The fourth quarter of 2025 capped a year of meaningful progress for Redwood Trust, marked by record Mortgage Banking activity and profitability, improved capital efficiency, and a durable, simplified earnings profile. We delivered positive GAAP earnings on a consolidated basis and generated very strong Earnings Available for Distribution (“EAD”) across our core segments—the metric that best reflects the earnings power of our go-forward business. Record production volumes in the third quarter proved to be no anomaly, as we surpassed those volumes in the fourth quarter, sourcing $7.3 billion of loans across our platforms. We also continued apace with the wind-down of our legacy portfolio and streamlined our cost structure, resulting in lower fixed expenses and an improved outlook for 2026. As we execute on our long-term strategy, we’re excited to continue leveraging Redwood’s seller network and growing foothold across the non-Agency sector to create assets for institutional partners - particularly as home affordability initiatives take center stage ahead of the U.S. midterm elections.

In the fourth quarter, Redwood generated GAAP earnings of $0.13 per share, representing a 7.7% GAAP return on equity, compared to a loss of $(0.08) per share in the third quarter. At our core segments, non-GAAP Earnings Available for Distribution totaled $0.33 per share, or a 24% Core Segments EAD ROE, up from $0.20 per share in the third quarter(1). Our GAAP book value per share was $7.36 at December 31, 2025, up slightly from $7.35 per share at September 30, 2025, after giving effect to our $0.18 per share fourth quarter dividend paid to common shareholders.

For the full year, our three operating platforms—Sequoia, CoreVest, and Aspire—generated $23 billion of lock and funded volume, delivering combined Mortgage Banking non-GAAP EAD returns on capital (“EAD ROC”) of roughly 26% on more than double our 2024 volume(2). At over $14 billion of production activity, the second half of 2025 alone would have represented our second-largest production year ever. Importantly, over 80% of our capital is now allocated to Core Segments, compared to 62% at the end of 2024. With recent policy announcements driving mortgage rates lower – including jumbo rates to their lowest in three years – the long-dormant refinance market is beginning to show signs of life. Coupled with recent new product rollouts across our platforms, the runway to continue profitably growing volume supports significant further capital deployment – both organically and in tandem with a growing cohort of partners through joint ventures and other structures that allow us to durably scale our revenue streams.

Within our corporate capital structure, we repaid our 2025 convertible bond maturity early in the fourth quarter and subsequently raised $100 million of capital through a senior unsecured bond offering. We repurchased an additional $15 million of common stock during the quarter, bringing full year repurchases to $53 million, contributing to a total of $0.13 per share of accretion to book value on the year.

______________________

This Shareholder Letter contains time-sensitive information and may contain forward-looking statements. The information contained herein is only accurate as of February 11, 2026. We undertake no obligation to update or revise the information contained herein, including forward-looking statements, whether as a result of new information, future events, or otherwise. Additional detail regarding the forward-looking statements in this Shareholder Letter and the important factors that may affect our actual results are described at the end of this Shareholder Letter under the heading “Forward-Looking Statements.”

1.Core Segments EAD ROE is defined as Core Segments EAD divided by average capital attributable to Core Segments. Average capital attributable to Core Segments represents management’s internal estimate of the average economic capital allocated to support the Core Segments' activities. Capital is allocated to Core Segments based on management’s assessment of the capital and liquidity required to support operating assets, investment securities, retained portfolio assets, and corporate financing and other items attributable to the Core Segments.

2.ROC and non-GAAP EAD ROC are non-GAAP financial measures. Mortgage Banking and Segment ROC and non-GAAP EAD ROC consist of mortgage banking and segment GAAP net income (loss) and non-GAAP EAD prior to the allocation of Corporate Segment expenses divided by average mortgage banking or segment capital utilized, which represents management’s internal estimate of the average economic capital allocated to support each segment’s activities.

The continued wind-down of our Legacy Investment portfolio is simplifying the balance sheet and will continue to free up investment capital as we progress with further disposition activity. Asset sales and other accretive financings have enabled the repayment of higher cost secured debt and more efficient utilization of flexible funding sources, including our secured borrowing facility with CPP Investments. We remain focused on further reducing the legacy portfolio in 2026 while prioritizing maximum recovery through both outright sales and partnership structures that recycle capital while preserving upside where we believe it makes economic sense.

Our operating blueprint for 2026 reflects continued alignment with our strategic priorities – including key metrics that we think best illustrate the efficiency of our business model. Recent revenue growth has far outpaced associated changes in expenses, affirming the scalability of our fixed cost base and overall positive operating leverage within the franchise. Year-over-year, combined Mortgage Banking fixed cost per loan declined 45% and revenue to expense load improved 35%, allowing our Mortgage Banking growth to translate directly into earnings. Capital efficiency has also been a key driver of Mortgage Banking returns. Increased capital turnover through sales, securitizations and joint ventures made 2025 our most efficient year ever for working capital usage – which totaled only 2% of total production volume across our platforms. We also continue to hold our back-office overhead to the same discipline—scaling what works, preserving flexibility for growth, and simplifying our path to higher and more durable earnings, with recent initiatives removing over $10 million of go forward overhead in 2026.

Turning to the broader economy, signaling out of Washington is that all things “affordability” – including housing – is a major campaign theme this political cycle. Recent actions by the Administration, such as its $200 billion Agency MBS buying initiative, are intended to make homes more affordable by directly lowering borrowing costs. This announcement initially made an immediate impact on spreads, tightening execution levels and pushing mortgage rates lower. Spreads have since largely stabilized, leaving markets still yearning for a fuller rebirth of the long-dormant mortgage refinance market, which in more accommodative rate environments has represented half or more of our production.

Our expectation for lower jumbo mortgage rates is bolstered by other recent policy signals, including the nomination of a new Federal Reserve Chair – Kevin Warsh – who has stated publicly he favors lowering interest rates while shrinking the Fed’s balance sheet to keep inflation in check. Mortgage rates currently sit meaningfully off their highs, with 30-year fixed rate prime jumbo mortgages hovering just above 6%. At levels modestly below current rates, we estimate between $200 and $300 billion of jumbo mortgages alone would be “in the money” to refinance. Unlike many mortgage originators who manage a substantial quantum of mortgage servicing rights reliant on high levels of customer recapture, for Redwood the prospect of a new refinance wave is entirely good news. Growth in our purchase-money market share over the past several years positions us to capture a significant portion of our seller base’s refinance activity, while any premium we carry on balance sheet is more than offset by expanding origination pipelines and the embedded discount within our retained securities portfolio, providing additional resilience and optionality as prepayment activity increases.

Alongside affordability, institutional participation in housing has also drawn renewed focus, with initiatives underway to limit ownership of single-family homes by large investors. We note that institutional investors continue to own only a small share of the market’s single-family housing stock, and that the vast majority of CoreVest’s own footprint remains focused on smaller and mid-sized housing investors, many of whom may stand to benefit from a suite of mandates that includes a prohibition on GSE financing of institutional homeowners. Against this backdrop, CoreVest continues to evolve and adapt to the market. Having recently been named “Lender of the Year” by IMN for 2025, the platform increased year-on-year funded volumes by 13% - including a

nearly 50% increase in small-balance single-family transitional and DSCR loans – and deepened its distribution channels. The loans we originate remain in very high demand by institutional partners, and our team continues to focus on operational efficiency as we scale our most profitable product channels.

Our Aspire “non-QM” business has grown rapidly since its launch a year ago, locking over $3 billion of loans in 2025 and growing its network to over 120 sellers, putting us among the largest correspondent platforms in the space. We are very excited to launch our third branded securitization platform (“SPIRE”) and anticipate issuing Aspire’s inaugural securitization in the first quarter of 2026. Our Aspire business occupies a unique niche in the non-QM sector – namely serving Redwood’s best-in-class existing originator network. In leveraging these relationships, new technologies, and our franchise’s longstanding reputation, we’ve created a durable source of loan supply for Aspire to capitalize on in the years ahead. In the lead up to its first securitization, Aspire has sold over $1 billion of whole loans to various institutional buyers, forming a robust distribution network that we can optimize and expand as volumes grow. Like all our Mortgage Banking operations, high volumes combined with strong distribution helps to turn our capital over faster and significantly enhance ROCs.

Entering the new year, Redwood’s market positioning is meaningfully stronger than in recent years. We now operate with a broader set of third-party capital partners, a more flexible balance sheet, and an infrastructure built to rapidly scale production and distribution as conditions for housing activity improve. With elevated volume prospects in 2026, we are also leveraging AI to sharpen risk management, accelerate capital deployment, enhance customer experience and create operating leverage as volumes scale. Based on the structural changes we have made to the business, we expect performance from our core operating activities to drive consolidated earnings to exceed our common dividend over the course of 2026, enabling greater earnings retention and reinvestment. As our origination platforms continue to scale, this retained capital can be redeployed directly into production and technology, allowing us to organically fund a meaningful portion of our growth. Our objective is to continue to grow earnings and attract accretive sources of capital to realize our mission of making quality housing, whether rented or owned, accessible to all American households – particularly those not well served by government loan programs. We’re looking forward to executing on this vision and delivering strong returns for shareholders in the year ahead.



Christopher J. Abate	Dashiell I. Robinson	Brooke E. Carillo
Chief Executive Officer	President	Chief Financial Officer

Note to Readers

We file annual reports (on Form 10-K) and quarterly reports (on Form 10-Q) with the Securities and Exchange Commission. These filings, our Redwood Review presentation and our earnings press releases provide information about Redwood and our financial results in accordance with generally accepted accounting principles (GAAP). These documents, as well as information about our business and a glossary of terms we use in this and other publications, are available through our website, www.redwoodtrust.com. We encourage you to review these documents. Within this document, in addition to our GAAP results, we may also present certain non-GAAP measures. When we present a non-GAAP measure, we provide a description of that measure and a reconciliation to the comparable GAAP measure within the Non-GAAP Measures section of the Endnotes to the Redwood Review, which can be found on our website, www.redwoodtrust.com, under “Financials” within the “Investor Relations” section. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc., and its consolidated subsidiaries. Note that because we generally round numbers in the tables to millions, except per share amounts, some numbers may not foot due to rounding. References to the “third quarter” refer to the quarter ended September 30, 2025, and references to the “fourth quarter” refer to the quarter ended December 31, 2025, unless otherwise specified.

Cautionary Statement; Forward-Looking Statements

This shareholder letter may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan,” "could" and similar expressions or their negative forms, or by references to strategy, plans, goals, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K under the caption “Risk Factors.” Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected are described below and may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-K, 10-Q, and 8-K. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Statements regarding the following subjects, among others, are forward-looking by their nature: statements we make regarding Redwood's business strategy and strategic focus, statements related to our financial outlook and expectations for 2026 and future years, expectation that earnings will exceed our common dividend over the course of 2026, statements regarding expectations for jumbo refinance volume, statements regarding the timing of Aspire’s inaugural securitization, statements regarding reductions in go-forward overhead costs in 2026, and opportunities for our Sequoia and CoreVest Mortgage Banking businesses. Additional detail regarding the forward-looking statements in this shareholder letter and the important factors that may affect our actual results in 2026 are described in the Redwood Review under the heading “Forward-Looking Statements,” which can be found on our website, www.redwoodtrust.com, under “Financials” within the “Investor Relations” section.

R E D W O O D T R U S T . C O M Q4 2025 Redwood Review February 11, 2026 Exhibit 99.3

2 Cautionary Statement/ Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding our 2026 forward outlook and strategic priorities, key drivers to increase earnings, book value, mortgage banking volumes and market share. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan” and similar expressions or their negative forms, or by references to strategy, plans, opportunities, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in the Company’s Annual Report on Form 10- K for the year ended December 31, 2024 and any subsequent Quarterly Reports on Form 10-K, Form 10-Q and Form 8-K under the caption “Risk Factors.” Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports the Company files with the Securities and Exchange Commission, including Current Reports on Form 8-K. Additionally, this presentation contains estimates and information concerning our industry, including market size and growth rates of the markets in which we participate, that are based on industry publications and reports. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and reports. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those referred to above, that could cause results to differ materially from those expressed in these publications and reports.

3 Redwood Trust is the Leading Non-Agency Real Estate Platform INTRODUCTION Detailed Endnotes are included at the end of this presentation. Correspondent Non-QM Platform Correspondent Jumbo Platform FinTech Strategic Investment Platform Business Purpose Loans to Housing Investors Housing Investments Sourced from Our Operating Platforms Through our operating businesses and related investments, we provide liquidity to parts of the housing market not well- served by government programs

4 Redwood Has a 30+ Year Track Record of Delivering Value Detailed Endnotes are included at the end of this presentation. ~370% Total Shareholder Return Since Inception $2.6bn Cumulative Dividends Since Inception 4 million+ Borrowers and homeowners served(1) #1 Non-Bank Distributor of Jumbo & Non- QM Loans(2) $142 billion Loans Funded / Locked(3)

5 Fourth Quarter 2025 Financial Performance *Non-GAAP Core Segments EAD EPS and Non-GAAP Core Segments EAD ROE are non-GAAP measures. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. EARNINGS AND RETURNS BOOK VALUE AND COMMON DIVIDEND • $7.36 Book Value Per Share • 2.6% Total Economic Return(1) • $0.18 Dividend Per Share • 13.0% Indicative Dividend Yield(2) $0.13 GAAP EPS 7.7% ROE $0.33 Non-GAAP Core Segments EAD EPS* 23.8% Non-GAAP Core Segments EAD ROE*

6 Fourth Quarter 2025 Financial Performance (Continued) Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. * ROC and Non-GAAP EAD ROC are non-GAAP measures. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. SEGMENT RETURNS Legacy Investments 19% Mortgage Banking 50% Redwood Investments 31% SEGMENT CAPITAL COMPOSITION Core Segments represent 81% of total capital Segment Q4’25 ROC*) Q4’25 Non- GAAP EAD ROC* Redwood Investments Mortgage Banking Legacy Investments (20%) (9%) 17% 14% 29% 30%C o re S eg m e n ts $1.6 Billion

7 FY’25 Operating Achievements Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. 2025 was a record operating year for Redwood’s Mortgage Banking platforms FY’25 Mortgage Banking ROC* 26% Market Share Growth(1) ~2x Mortgage Banking Volume (111% YoY Increase)(2) $23bn New Loan Sellers Added 50 Jumbo Securitization Volume in 2025(3) #1

8 Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Growing Volumes Supported by Ongoing Profitability 24% 21% 28% 29% Q1'25 Q2'25 Q3'25 Q4'25 MORTGAGE BANKING ROCs* $10.7 $22.7 FY'24 FY'25 Sequoia (Locks) CoreVest (Funded) Aspire (Locks) 111% YoY Increase MORTGAGE BANKING VOLUMES(1) 26% FY’26 ROC*

9 $523 $459 $306 Q2'25 Q3'25 Q4'25 $25 $27 $43 Q2'25 Q3'25 Q4'25 Core Segments Drive Earnings Growth as Legacy Portfolio Runs Off …there is a clear line of sight to higher earnings for our Core SegmentsAs our Legacy Investment Portfolio has declined… LEGACY INVESTMENTS CAPITAL SINCE Q2’25 ($MM) NON-GAAP CORE SEGMENTS EAD SINCE Q2’25 ($MM)* *Non-GAAP Core Segments EAD is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. 41% Decrease in Legacy Investments 72% Increase in Non-GAAP Core Segments EAD*

10 33.2x Mortgage Banking Strategy Drives Higher Earnings Detailed Endnotes are included at the end of this presentation. Capital Turnover (2) 0.77% Loan Margin(1) 26% 3.1% 4.6x Leverage(4)NIM Margin(3) MORTGAGE BANKING REDWOOD INVESTMENTS Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. • Originate-to-distribute mortgage banking model complements—and differs from—a buy-to-hold investment portfolio, creating two distinct earnings engines • Mortgage banking delivers repeatable, higher-quality returns through capital velocity, not static asset ownership FY’25 Mortgage Banking ROC* 14% FY’25 Redwood Investments ROC*

11 47% 62% 53% 38% FY'24 FY'25 Mortgage Banking Redwood Investments Strategic Shift to Mortgage Banking is Reshaping Earnings Profile Note: Core Segments represents 81% of total capital. Information on this slide excludes Legacy Investments segment which represents 19% of total capital. Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. Detailed Endnotes are included at the end of this presentation. CORE SEGMENTS CAPITAL ALLOCATION 51% 74% 49% 26% FY'24 FY'25 Mortgage Banking Redwood Investments CORE SEGMENTS REVENUE MIX(1) of Core Segment Capital Allocation is in Mortgage Banking (excludes Legacy Investments) 62% of Core Segment Revenue was Driven by Mortgage Banking 74%

12 3.2% 2.5% FY'24 FY'25 Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. Detailed Endnotes are included at the end of this presentation. 21% Improvement TOTAL VOLUME AND EXPENSE CHANGE(1) (FY’24 vs. FY’25) MORTGAGE BANKING CAPITAL EFFICIENCY(1) (Average Capital / Total Volume) Efficiency Measured Relative to Production TOTAL OpEx AS % OF VOLUME(1) (Total Expenses / Total Volume) 1.6% 0.9% FY'24 FY'25 • We assess efficiency based on the capital and expense required to support production at scale • As capital velocity increases, returns improve without proportional balance sheet growth 44% YoY Improvement 18% 111% Total Expense Growth Volume Growth FY’25 volume growth outpaced expense growth by~6x

13 Portfoli o Debt 20% Corporate Debt 18% Mortgage Banking Debt 62% Leverage Aligned with Fast-Turning Capital Note: Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. Portfolio refers to Redwood Investments and Legacy Investments segments. Detailed Endnotes are included at the end of this presentation. SEGMENT RECOURSE LEVERAGE COMPOSITION Debt growth has been primarily driven by Mortgage Banking growth • Rapid capital turnover across distribution channels accelerates deleveraging through cash generation • Average days of loans on balance sheet of 36 days(1) RECOURSE DEBT COMPOSITION(2) 0.8x 0.8x 2.3x 4.0x 1.0x 0.8x 2.9x 4.6x Portfolio Debt Corporate Debt Mortage Banking Debt Total Q3'25 Q4'25 $4.4 billion Portfolio Debt Corporate Debt 18% 85%+ of increase in recourse debt supported Mortgage Banking growth in Q4’25

14 There's a Growing Jumbo Refinance Opportunity in Today’s Market Detailed Endnotes are included at the end of this presentation. % OF CURRENT OUTSTANDING JUMBO MORTGAGES BY COUPON(1) We participate in the upside from refinance-driven volume growth without the MSR-related risks— such as accelerated amortization and faster prepayments—that pressure traditional originators 40% 26% 9% 11% 14% <3% 3%-4% 4%-5% 5%-6% >6% $250bn+ of outstanding jumbo loans are estimated to become refinance-eligible if rates fall below 6%

15 $8.6 $10.7 $7.5 $5.0 $1.8 $16.1 $17.6 FY'21 FY'25 Refinance Activity Is a Tailwind to Redwood’s Growing Market Share PURCHASE VS REFINANCE VOLUME RELATIVE TO LAST REFINANCE WAVE (2021) Since the last refinance wave in 2021, we have: • Grown our loan seller network by 110+ new or re-engaged bank sellers • Captured greater market share to ~7% (up from ~2%)(1) • Expanded our product set and distribution capabilities • Broadened securitization and whole loan investor ecosystem • Increased purchase volumes 25% despite a significantly smaller overall market Detailed Endnotes are included at the end of this presentation. $ billions OVERALL JUMBO MARKET(2) SEQUOIA ACTIVITY The jumbo market is smaller than in 2021, yet we are acquiring more loans and capturing greater market share $270 $167 $374 $84 $644 $254 FY'21 FY'25 Purchase Refinance Seasoned

16 Utilizing AI to Drive Scale Detailed Endnotes are included at the end of this presentation. RWT Horizons, Redwood’s strategic AI platform, converts automation into durable operating leverage—driving productivity gains, expanding Redwood’s competitive moat in non-agency mortgage and private credit, and supporting efficient transaction execution and volume scalability across cycles • Data Quality Control Automation • Borrower Structure Intelligence • Covenant Tracking Automation • Due Diligence Reliance Data Standardization • Multi-Hazard Risk Integration • Credit Risk & Portfolio Intelligence • Automated Credit, Underwriting & Portfolio Management • AI-Enabled Lending & Closing Automation • Frictionless Borrower Intake & Data Reuse REDWOOD AI IMPACT BY THE NUMBERS INTERNAL AI PROCESSES / TECHNOLOGY- Established Applications | Expanding Capabilities 200+ Active AI Agents in Production 3,000+ Manual Hours Eliminated 75% Faster Document Review Sub-Minute QC File Review TECHNOLOGY AND AI

17 RWT Horizons: Partnering with AI Across the Ecosystem Payments & Cash-Flow Improves prepayment projections speed and accuracy Customer Engagement Cuts manual follow-ups Underwriting Automation Significantly cuts underwriting time Customer Data Normalization Reduces data reconciliation effort Risk management & Compliance Cuts risk review cycles from days to minutes or hours Our RWT Horizons portfolio includes 38 AI and technology- enabled companies driving innovation across the mortgage finance ecosystem. Shown here are select RWT Horizons partners Detailed Endnotes are included at the end of this presentation.

Fourth Quarter 2025 Earnings & Segment Results

19 0.29% 0.23% FY'24 FY'25 $9.0 $17.6 FY24 FY25 Sequoia Q4’25 Performance Summary Note numbers may not foot due to rounding. All figures on this page are shown for Sequoia Mortgage Banking segment except for volume and distribution. Please refer to slide 22 for Aspire specific volume and distribution figures. *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. • Q4’25 ROC of 29%* • FY’25 lock volume of $17.6 billion; record quarter in Q4’25 ($5.3 billion)(1) • Cost per loan improved 21% YoY(2) YEAR OVER YEAR LOCK VOLUME(1)REDWOOD’S PRIME RESIDENTIAL CORRESPONDENT PLATFORM 95% YoY Increase COST PER LOAN(2) 21% YoY Improvement $ billions

20 1.23% 1.31% 0.93% 1.27% Q1'25 Q2'25 Q3'25 Q4'25 28% 19% 29% 29% Q1'25 Q2'25 Q3'25 Q4'25 Q u a rt e rl y R O C s Sequoia Q4’25 Performance Summary (Continued) *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. QUARTERLY ROCs* & AVERAGE CAPITAL GAIN ON SALE MARGINS(1) As capital has flowed into this segment, we have maintained strong returns and attractive margins Average Capital ($mm) $476 26% Average 1.19% Average 75bps to 100bps historical target range * $613$457$367

21 Sequoia’s Growing Market Share Detailed Endnotes are included at the end of this presentation. SEQUOIA’S MARKET SHARE(2) 1.0% – 2.0% 4.3% 7.0% Historical Average FY'24 FY'25 3x Historical Average Growing market share is supported by: • Expanded seller network: Active seller base grew to 210+ sellers, with banks representing 56% • Increased seasoned loan activity: Seasoned loans accounted for 10% of FY’25 lock volume(1) • New product launch: Introduction of new Sequoia loan program in December • Higher bulk and alternative product activity: Volume driven by ARMs, Agency Investor, and CES products

22 Aspire Q4’25 Performance Summary Detailed Endnotes are included at the end of this presentation. $111 $330 $1,245 $1,487 Q1'25 Q2'25 Q3'25 Q4'25 • FY’25 lock volume of $3.2 billion; $1.5 billion in Q4’25(1) • Loan seller network of 120+ (65% overlap with Sequoia loan seller network) 20% QoQ Increase QUARTERLY LOCK VOLUMESREDWOOD’S NON-QM CORRESPONDENT PLATFORM 755 Weighted Average FICO(2) 66 Weighted Average LTV(2) $ millions

23 Aspire’s Growing Market Opportunity Detailed Endnotes are included at the end of this presentation. Non-QM market is a large and rapidly expanding market • Non-QM origination issuance was up 30% in 2025, and is estimated to grow another 15% in 2026(1) • A combination of a growing Gig Economy, an increase in self- employed borrowers, and elevated investor demand is driving non-QM volume • Aspire remains early in its penetration of the broader non- QM opportunity • Even with strong volume growth in 2025, Aspire holds an estimated 2–3% market share, highlighting substantial runway for continued growth GROWING NON-QM TAM(1) $50 $51 $100 $130 $150 FY'22 FY'23 FY'24 FY'25 FY'26E O ri g in a ti o n V o lu m e ($ b n ) $150bn TAM

24 $1.7 $2.0 FY'24 FY'25 CoreVest Q4’25 Performance Summary 24 *ROC and Non-GAAP EAD ROC are non-GAAP measures. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. • ROC of 30% and non-GAAP EAD ROC of 36%* • FY’25 funding volume of $2.0 billion; $460 million in Q4’25 • 50% of FY’25 funded volume was focused on small balance loans (RTL, DSCR) • Net cost to originate improved 22% YoY(1) REDWOOD’S INVESTOR LOAN PLATFORM YEAR OVER YEAR FUNDED VOLUMES 13% YoY Increase NET COST TO ORIGINATE(1) 1.18% 0.92% FY'24 FY'25 22% YoY Improvement $ billions

25 CoreVest Volume Drivers Detailed Endnotes are included at the end of this presentation. $94 $94 $107 $119 $119 $125 $143 $158 2024 2025 2026E 2027E RTL DSCR $220 CoreVest is: • Expanding footprint and increasing market share in small balance lending (RTL and DSCR) • Growing RTL volumes fueled by record real estate investor activity • Capturing incremental market share from banks and small balance lenders • Participating in the homebuilder shift toward forward sales to investors that are stabilizing rental communities The small balance addressable market is estimated to grow 15% over the next two years(1) SMALL-BALANCE LOAN MARKET $250 $277 $213 $ billions

26 Administration’s SFR Proposal Targets Different Market Segment than CoreVest Serves Detailed Endnotes are included at the end of this presentation. In early 2026, the Administration announced initiatives aimed at limiting large-scale institutional ownership of existing single-family rental homes. • CoreVest’s core lending activity serves small to mid-sized market participants, with only a nominal share of originations associated with larger institutional investors • ~86% of CoreVest activity in FY’24 and FY’25 came from borrowers with fewer than 100 units of total exposure • DSCR and RTL loans — which primarily support small investors and transitional assets — represented ~50% of originations last year • CoreVest’s largest borrowers are primarily focused on purpose-built Build-for-Rent (“BFR”) communities, rather than acquiring existing scattered-site SFRs COREVEST FUNDED LOANS BY BORROWER TYPE (FY’24 & FY’25) < 100 Units 86% 100 - 500 Units 7% 500-1000 Units 4% 1000+ Units 3%

27 Redwood Investments Q4’25 Performance Summary HOUSING INVESTMENTS SOURCED FROM OUR OPERATING PLATFORMS • Generated 17% ROC* • Cost of funds continues to improve, enhancing portfolio economic contribution CAPITAL ALLOCATION *ROC is a non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation. Bridge Securities Retained 15% Servicing Investments 27% Term Securities Retained 13% Sequoia Securities Retained 45% $504 million PORTFOLIO DEBT BY MATURITY TYPE(2) 6.96% 7.11% 7.14% 6.90% 6.68% Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Callable < 1 Year 47% Callable > 1 Yr 53% $2.0 billion Lower Rates Could Unlock Efficient Refinancing on 47% of Debt in the Next 12 Months PORTFOLIO COST OF FUNDS(1)

28 Legacy Investments Q4’25 Performance Summary QOQ 90 DAY+ LEGACY BRIDGE DELINQUENCIES $243 $196 $188 $82 Q1'25 Q2'25 Q3'25 Q4'25 66% Reduction Since Q1’25 CAPITAL ALLOCATION Note: Capital allocated to mortgage banking platforms is inclusive of risk-based capital. Detailed Endnotes are included at the end of this presentation. Legacy HEI 34% Legacy Bridge Portfolio 66% $306 million HOUSING INVESTMENTS NO LONGER STRATEGIC TO OUR PLATFORM • Ongoing focus on reducing legacy portfolio through successful dispositions • Reduced portfolio by 31% QoQ and 56% YoY • We unlocked $200 million of capital from Legacy Investments portfolio in 2025 • Legacy bridge • Portfolio UPB declined 38% QoQ driven by a combination of resolutions and pay-offs • 90 day+ DQ loans have declined 66% since Q1’25 $UPB millions

Financial Results

30 Income Statement ($ in millions, except per share data)

31 Balance Sheet ($ in millions)

32 Capital Allocation Summary ($ in millions)

33 Mortgage Banking Key Results ($ in millions) *Return on Capital (“ROC”) is non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information.

34 Redwood Investments Key Results ($ in millions) *Return on Capital (“ROC”) is non-GAAP measure. See “Non-GAAP Disclosures” slides for additional information.

35 Recourse Debt Scheduled Maturities(1)(5) Recourse Debt Balances ($ in millions) $0 $1,000 $2,000 $3,000 2026 2027 2028 2029 Beyond 2029 Warehouse Debt/Repo (Marginable) Warehouse Debt/Repo Secured Term Corporate Debt $2,875 $263 $143 $329 $799 $ billions

Non-GAAP Disclosures

37 Non-GAAP Disclosures To supplement consolidated and segment financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also provides Earnings Available for Distribution (“EAD”), Return on Capital (“ROC”), EAD ROC, Core Segments Earnings Available for Distribution (“Core Segments EAD”) and Core Segments EAD Return on Equity ("Core Segments EAD ROE") as non-GAAP measures. Management believes these non-GAAP measures provide useful supplemental information to investors and management in evaluating the Company’s operating performance, facilitating comparisons to industry peers, and assessing the current income-generating capacity of the Company’s operating platforms as of the period presented, including the Company’s ability to pay dividends. These measures also assist in evaluating the Company’s ongoing transition to a more scalable and simplified business model, including the wind-down of legacy portfolio holdings within the Legacy Investments segment. These non-GAAP measures should not be utilized in isolation, nor should they be considered as an alternative to GAAP net income (loss) available (related) to common stockholders, or other measurements of results of operations computed in accordance with GAAP or for federal income tax purposes. Earnings Available for Distribution (“EAD”) is a non-GAAP measure that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items. ROC is a non-GAAP measure for a segment that is calculated as GAAP segment net income (loss) annualized divided by average capital utilized for the segment during the period. Average capital utilized represents management's internal estimate of the average economic capital allocated to support the activities of each segment. EAD ROC for a segment is calculated as non-GAAP segment EAD annualized divided by average capital utilized for the segment during the period. Non-GAAP EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to: (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition related expenses; (iv) exclude certain organizational restructuring charges (as applicable); and (v) adjust for the hypothetical income taxes associated with these adjustments. Average capital utilized represents management's internal estimate of the average economic capital allocated to support the activities of each segment. Core Segments EAD and Core Segments EAD ROE represent management’s non-GAAP assessment of the combined performance of the Company’s mortgage banking platforms and related investments, which include the Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments segments (collectively, the “Core Segments”), together with an allocated portion of the Corporate segment attributable to those operations. Core Segments EAD excludes the Legacy Investments segment and the portion of the Corporate segment attributable to Legacy Investments. Core Segments EAD ROE is calculated as Core Segments EAD annualized divided by the average capital utilized by the Core Segments during the period, which represents management’s internal estimate of the average economic capital allocated to support Core Segments activities.

38 Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – Fourth Quarter 2025 (1)

39 Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – Third Quarter 2025 (1)

40 $ in millions Non-GAAP Disclosures (Continued) Footnotes: 1. Certain totals may not foot due to rounding. 2. Earnings Available for Distribution (“EAD”) is a non-GAAP measure that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items. 3. Core Segments EAD and Core Segments EAD ROE are non-GAAP measures and are used to present management’s non-GAAP analysis of the combined performance of the Company’s mortgage banking platforms and related investments (which are defined as the "Core Segments" and which consist of the Company’s Sequoia Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments Segments), inclusive of an allocated portion of the Company’s Corporate segment relating to those Core Segments. Core Segments EAD excludes the Company’s Legacy Investments segment and excludes an allocated portion of the Company’s Corporate segment relating to the Legacy Investments segment. Core Segments EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to (i) exclude GAAP net loss from the Legacy Investments Segment, (ii) exclude the portion of the Corporate Segment allocation relating to the Legacy Investments segment, (iii) exclude investment fair value changes, net; (iv) exclude realized gains and losses; (v) exclude acquisition related expenses; (vi) exclude certain organizational restructuring charges (as applicable); and (vii) adjust for the hypothetical income taxes associated with these adjustments. Refer to footnote 11 below for the definition of Core Segments EAD ROE. 4. Investment fair value changes, net includes all amounts within that same line item in our consolidated statements of (loss) income that are attributable to each segment, which primarily represents both realized and unrealized gains and losses on our investments held in each segment and associated hedges. Realized and unrealized gains and losses on our HEI investments are reflected in a separate line item on our consolidated income statements titled "HEI income, net". 5. Realized (gains)/losses, net includes all amounts within that line item on our consolidated statements of (loss) income that are attributable to each segment. 6. Acquisition related expenses include transaction costs paid to third parties, as applicable, and the ongoing amortization of intangible assets related to the Riverbend and CoreVest acquisitions. 7. Tax effect of adjustments represents the hypothetical income taxes associated with EAD adjustments used to calculate each segment EAD. 8. Allocation of Corporate Segment is based on the average capital utilized by the segment during the period, which represents management’s internal estimate of the average economic capital allocated to support the activities of each segment. 9. Core Segments EAD per basic common share is a non-GAAP measure and is defined as Core Segments EAD divided by basic weighted average common shares outstanding at the end of the period. 10. ROE consists of consolidated GAAP net income annualized divided by average common equity for the period. 11. Core Segments EAD ROE is a non-GAAP measure and is defined as Core Segments EAD annualized divided by average capital utilized by the Core Segments of $726 million and $643 million for the three months ended December 31, 2025 and September 30, 2025, respectively. Average capital utilized is management's internal estimate of the average economic capital allocated to support the activities of the Core Segments.

Endnotes

42 ENDNOTES Slide 4 (Redwood Has a 30+ Year Track Record of Delivering Value) Source: Company financial data as of December 31, 2025 unless otherwise noted. Market data per Bloomberg as of December 31, 2025. 1. Borrowers and homeowners reflect Sequoia Mortgage Banking loan lock volume and CoreVest Mortgage Banking funded units, since inception. 2. JP Morgan research and securitization data. 3. Includes loan locks at our Sequoia Mortgage Banking Segment and loans funded at our CoreVest Mortgage Banking Segment. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. Slide 5 (Fourth Quarter 2025 Financial Performance) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Total economic return is based on the periodic change in GAAP book value per common share plus dividends declared per common share during the period, divided by beginning period GAAP book value per common share. 2. Indicative dividend yield based on RWT closing stock price of $5.53 on December 31, 2025. Slide 6 (Fourth Quarter 2025 Financial Performance (Continued)) Source: Company financial data as of December 31, 2025 unless otherwise noted. Slide 7 (FY‘25 Operating Achievements) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Market share based on Inside Mortgage Finance data and Company historical information and estimates. 2. Includes loan locks at our Sequoia Mortgage Banking Segment and loans funded at our CoreVest Mortgage Banking Segment. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. 3. JP Morgan research and securitization data. Slide 8 (Growing Volumes Supported by Ongoing Profitability) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Includes loan locks at our Sequoia Mortgage Banking Segment and loans funded at our CoreVest Mortgage Banking Segment. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. Slide 9 (Core Segments Drive Earnings Growth as Legacy Portfolio Runs Off) Source: Company financial data as of December 31, 2025 unless otherwise noted. Slide 10 (Mortgage Banking Strategy Drives Higher Earnings) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Loan margin is calculated as Sequoia Mortgage Banking segment net income plus CoreVest Mortgage Banking segment net income dividend by Sequoia Mortgage Banking fallout adjusted loan purchase commitments and CoreVest Mortgage Banking funded loans during the period. 2. Capital Turnover for Mortgage Banking is calculated as Sequoia Mortgage Banking fallout adjusted loan purchase commitments plus CoreVest funded loans divided by average capital allocated during the period. 3. NIM Margin for Redwood Investments is calculated as segment net income divided by average assets during the period. 4. Leverage for Redwood Investments is calculated as average allocated assets divided by average allocated capital during the period. Slide 11 (Strategic Shift to Mortgage Banking is Reshaping Earnings Profile) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Redwood Investments net revenue excludes realized gains / losses. Slide 12 (Efficiency Measured Relative to Production) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Includes loan locks at our Sequoia Mortgage Banking Segment and loans funded at our CoreVest Mortgage Banking Segment. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. Slide 13 (Leverage Aligned With Fast-Turning Capital) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Average days of loans on balance sheet measures from purchase to disposition. 2. Recourse leverage is non-recourse debt divided by tangible shareholder equity. Non-recourse debt excludes ABS issued from certain securitizations consolidated on our balance sheet, including Residential Jumbo (SEMT), BPL Term (CAFL), and HEI, as well as non-recourse debt used to finance certain servicing investments. Corporate debt includes our outstanding convertible debt, unsecured debt, and promissory notes. Slide 14 (There’s a Growing Jumbo Refinance Opportunity in Today’s Market) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. JP Morgan research. Slide 15 (Refinance Activity Is a Tailwind to Redwood’s Growing Market Share) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Market share data per Inside Mortgage Finance industry data. 2. Inside Mortgage Finance and Wells Fargo research. Slide 19 (Sequoia Q4’25 Performance Summary) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. 2. Cost per loan for the Sequoia Mortgage Banking segment is calculated as operating expenses of this segment divided by loan purchase commitments of this segment. Slide 20 (Sequoia Q4’25 Performance Summary (Continued)) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Gain on Sale margins reflect net revenue divided by loan purchase commitments.

43 ENDNOTES (Continued) Slide 21 (Sequoia’s Growing Market Share) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Seasoned loans typically reflects 12+ months of payment history. 2. Inside Mortgage Finance data and Company estimates. Actual results may differ materially. Slide 22 (Aspire Q4’25 Performance Summary) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Aspire lock volume is included in the Sequoia Mortgage Banking business segment results. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. 2. Figures are weighted average based on values at origination. Slide 23 (Aspire’s Growing Market Opportunity) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Nomura research and Company estimates. Actual results may differ materially. Slide 24 (CoreVest Q4’25 Performance Summary) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Net Cost to Originate for the CoreVest Mortgage Banking segment is calculated as operating expenses minus AUM fees of this segment divided by funding volume of this segment. Slide 25 (CoreVest Volume Drivers) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Industry RTL volume based on Fannie Mae Single Family Total Home Sales and Attom Data Fix & Flip Percentage. Industry DSCR volume based on the same for the rest of the investor owned %. Analysis uses Wells Fargo Research. Figures are rounded. Actual results may vary materially. Slide 26 (Administration’s SFR Proposal Targets Different Market Segment than CoreVest Serves) Source: Company financial data as of December 31, 2025 unless otherwise noted. Slide 34 (Appendix: Redwood Investments Key Results) 1. EAD Net Contribution and EAD Net Contribution Return on Capital are non- GAAP measures that are also referred to as EAD and EAD ROC, respectively. Please refer to Non-GAAP Disclosures within the Endnotes section of this presentation for additional information on these measures. 2. Recourse leverage ratio is calculated as Secured recourse debt balances divided by Capital invested, as presented within this table. Slide 35 (Appendix: Recourse Debt Balances) 1. Non-marginable debt and marginable debt refers to whether such debt is subject to margin calls based solely on the lender’s determination in its discretion of the market value of underlying collateral that is non- delinquent. Non-marginable debt may be subject to a margin call due to delinquency or another credit event related to the mortgage or security being financed, a decline in the value of the underlying asset securing the collateral, an extended dwell time (i.e., period of time financed using a particular financing facility) for certain types of loans, or a change in the interest rate of a specified reference security relative to a base interest rate amount, among other reasons. 2. Average borrowing cost represents the weighted average contractual balance of recourse debt outstanding at the end of each period presented and does not include deferred issuance costs or debt discounts. 3. Represents unsecuritized residential consumer loans, inclusive of Aspire loans. 4. Includes certificated mortgage servicing rights. 5. Debt balances are non-marginable unless otherwise noted. Slide 33 (Appendix: Mortgage Banking Key Results) 1. EAD Net Contribution and EAD Net Contribution Return on Capital are non- GAAP measures that are also referred to as EAD and EAD ROC, respectively. Please refer to Non-GAAP Disclosures within the Endnotes section of this presentation for additional information on these measures. 2. Capital utilized for CoreVest operations does not include $34 million of platform premium. . Slide 27 (Redwood Investments Q4’25 Performance Summary) Source: Company financial data as of December 31, 2025 unless otherwise noted. 1. Portfolio cost of funds reflects interest expense relative to UPB. 2. Callability reflects the right to repay before stated maturity under specified terms. Slide 28 (Legacy Investments Q4’25 Performance Summary) Source: Company financial data as of December 31, 2025 unless otherwise noted. Slide 30 (Appendix: Income Statement) 1. Net interest expense from “Corporate (unsecured debt)” consists primarily of interest expense on corporate unsecured debt Slide 32 (Appendix: Capital Allocation Summary) 1. Amounts of assets in our Redwood Investments segment, as presented in this table, represent our economic interests (including our economic interests in consolidated VIEs) and do not present the assets within VIEs that we consolidate under GAAP (except for our CAFL Bridge). See our GAAP Balance Sheet and Reconciliation to Non-GAAP Economic Balance Sheet in the Supplemental Financial Tables available on our website for additional information on consolidated VIEs. 2. Consistent with our presentation of assets within this table, non-recourse debt presented within this table excludes ABS issued from certain securitizations consolidated on our balance sheet, including Residential Jumbo (SEMT), BPL Term (CAFL), and HEI, as well as non-recourse debt used to finance certain servicing investments. 3. Capital allocated to mortgage banking operations represents the working capital we have allocated to manage our loan inventory at each of our mortgage banking segments. This amount generally includes our net capital in loans held on balance sheet (net of financing), capital to acquire / originate loans in our pipeline, net capital utilized for hedges, and risk capital. 4. Corporate capital includes, among other things, capital allocated to RWT Horizons and other strategic investments as well as available capital.

44 Glossary of Terms Term Definition ARM Adjustable-Rate Mortgage BFR Build for rent bps Basis points CAFL® CoreVest securitization program CES Closed end second liens DQ Delinquency DSCR Debt Service Coverage Ratio EAD Earnings available for distribution* EPS Earnings per share FY Full year GoS Gain on Sale HEI Home equity investment HPA Home price appreciation IMB Independent mortgage banker JV Joint venture LOC Line of credit LTC Loan to cost Term Definition MB Mortgage banking (refers to Sequoia Mortgage Banking and CoreVest Mortgage Banking segments) MSR Mortgage servicing rights Non-QM Non-qualified mortgage QM Qualified mortgage QoQ Quarter over quarter (comparison of sequential quarters) RMBS Residential mortgage backed security RTL Residential transitional loans RPL Reperforming loans SEMT® Residential Consumer (Sequoia) securitization program SFR Single-family rental TAM Total addressable market UPB Unpaid principal balance WA Weighted average YoY Year over year (comparison of same quarter performance over sequential years) *Earnings Available for Distribution (“EAD”) is a non-GAAP measure- See “Non-GAAP Measures” slides in the Endnotes for additional information and reconciliation to GAAP metrics.

Source: View Original Filing on SEC EDGAR

FAQ

How did Redwood Trust (RWT) perform financially in Q4 2025?

Redwood Trust generated GAAP net income of $18.3 million, or $0.13 per basic and diluted share, in Q4 2025, reversing a prior-quarter loss of $0.08 per share. Core segments non-GAAP EAD reached $43.2 million, or $0.33 per basic share, reflecting stronger underlying earnings.

What were Redwood Trust’s key mortgage banking volumes in 2025?

Redwood’s mortgage banking platforms produced a record $7.3 billion in Q4 2025 and $23 billion for the full year, a 111% year-over-year increase. These volumes span the Sequoia, Aspire, and CoreVest platforms and significantly outpaced operating expense growth, supporting higher returns on capital.

What returns did Redwood Trust’s core segments generate in Q4 2025?

In Q4 2025, Redwood’s core segments produced non-GAAP Core Segments EAD of $43.2 million, equating to a 23.8% annualized Core Segments EAD ROE. Segment returns included 29% ROC for Sequoia Mortgage Banking and 30% ROC for CoreVest Mortgage Banking, highlighting strong capital productivity.

How did Redwood Trust’s book value and dividend look at year-end 2025?

GAAP book value per common share was $7.36 at December 31, 2025, up slightly from $7.35 at September 30, 2025, after including the quarterly dividend. The company paid a $0.18 per-share common dividend in Q4 2025, contributing to a 2.6% economic return on book value.

What progress did Redwood Trust make on winding down Legacy Investments?

Legacy Investments reported a Q4 2025 GAAP net loss of $(18.6) million but saw meaningful runoff. Segment capital allocation decreased to 19% of total invested capital, legacy bridge unpaid principal balance fell 38% to $272 million, and 90-day-plus delinquencies declined sharply over 2025.

How did Redwood Trust manage its capital structure and share count in 2025?

Redwood ended 2025 with $256 million of unrestricted cash and recourse debt of $4.4 billion. It retired convertible debt maturing in October 2025, issued $100 million of senior unsecured bonds, and repurchased 9.2 million common shares for $53 million, adding $0.13 per share of book value accretion.

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Redwood Trust (NYSE: RWT) boosts earnings on record 2025 mortgage banking volume

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FAQ

How did Redwood Trust (RWT) perform financially in Q4 2025?

What were Redwood Trust’s key mortgage banking volumes in 2025?

What returns did Redwood Trust’s core segments generate in Q4 2025?

How did Redwood Trust’s book value and dividend look at year-end 2025?

What progress did Redwood Trust make on winding down Legacy Investments?

How did Redwood Trust manage its capital structure and share count in 2025?

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Redwood Trust (NYSE: RWT) boosts earnings on record 2025 mortgage banking volume

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Mortgage finance and REIT analyst positive

Capital structure and risk specialist neutral

FAQ

How did Redwood Trust (RWT) perform financially in Q4 2025?

What were Redwood Trust’s key mortgage banking volumes in 2025?

What returns did Redwood Trust’s core segments generate in Q4 2025?

How did Redwood Trust’s book value and dividend look at year-end 2025?

What progress did Redwood Trust make on winding down Legacy Investments?

How did Redwood Trust manage its capital structure and share count in 2025?

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Press Releases

Other Documents

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