v3.25.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Cash Flows From Operating Activities:    
Net (loss) income $ (90,049) $ 60,622
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of premiums, discounts, and debt issuance costs, net 8,830 9,547
Depreciation and amortization of non-financial assets 7,789 9,131
Originations of held-for-sale loans (1,401,522) (1,099,186)
Purchases of held-for-sale loans (9,125,996) (4,910,749)
Proceeds from sales of held-for-sale loans 3,565,676 941,704
Principal payments on held-for-sale loans 152,079 63,665
Net settlements of derivatives 101,693 (71,988)
Non-cash equity award compensation expense and other 14,804 16,949
Market valuation adjustments 8,406 (103,936)
Realized gains, net (1,159) (620)
Net change in:    
Other assets 40,810 (28,985)
Accrued expenses and other liabilities (15,246) 105,306
Net cash used in operating activities (6,733,885) (5,008,540)
Cash Flows From Investing Activities:    
Originations and purchases of loan investments (427,922) (120,661)
Proceeds from sales of loans 100,619 52,163
Principal payments on loan investments 3,045,770 1,749,172
Purchases of HEI (8,986) (1,066)
Repayments on HEI 26,796 37,024
Proceeds from sales of HEI 262,447 0
Purchases of real estate securities (229,325) (193,744)
Proceeds from sales of real estate securities 134,217 2,833
Principal payments on real estate securities 15,756 5,331
Repayments from servicer advance investments, net 8,066 21,151
Other investing activities, net (5,995) (14,800)
Net cash provided by investing activities 2,921,443 1,537,403
Cash Flows From Financing Activities:    
Proceeds from issuance of asset-backed securities 5,908,124 4,280,237
Repayments on asset-backed securities issued (2,838,325) (1,331,656)
Proceeds from borrowings on debt obligations 11,234,976 7,207,997
Repayments on debt obligations (10,343,347) (6,635,775)
Debt issuance costs paid (11,004) (15,257)
Taxes paid on equity award distributions (3,065) (3,114)
Net proceeds from issuance of common stock 393 352
Net payments on repurchase of common stock (37,070) 0
Dividends paid on common stock (74,971) (67,811)
Dividends paid on preferred stock (5,257) (5,257)
Other financing activities, net (750) (1,400)
Net cash provided by financing activities 3,829,704 3,428,316
Net increase (decrease) in cash, cash equivalents and restricted cash 17,262 (42,821)
Cash, cash equivalents and restricted cash at beginning of period 312,927 368,788
Cash, cash equivalents and restricted cash at end of period 330,189 325,967
Cash and cash equivalents 226,321 [1] 253,673
Restricted cash at end of period [2] 103,868 [1] 72,294
Cash, cash equivalents and restricted cash at end of period 330,189 325,967
Cash paid during the period for:    
Interest 769,007 721,264
Taxes paid 6,631 347
Supplemental Noncash Information:    
Dividends declared but not paid on preferred stock 1,478 1,478
Retention of mortgage servicing rights from loan sales 0 84
Consolidation of securitized CAFL bridge loans at issuance 155,373 0
Consolidation of CAFL bridge ABS at issuance 283,107 0
Transfers from loans held-for-sale to loans held-for-investment 5,773,627 4,553,378
Transfers from loans held-for-investment to loans held-for-sale 2,147,978 0
Transfers from residential consumer loans to real estate owned 57,537 14,800
Right-of-use asset obtained in exchange for operating lease liability $ 3,085 $ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2025 and December 31, 2024, assets of consolidated VIEs totaled $18,284,133 and $14,654,942, respectively. At September 30, 2025 and December 31, 2024, liabilities of consolidated VIEs totaled $17,164,811 and $13,620,239, respectively. See Note 16 for further discussion.
[2] Restricted cash primarily includes cash held at our consolidated Servicing Investment entities, and cash associated with our risk-sharing transactions, as well as cash collateral for certain consolidated securitization entities.

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