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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash Flows From Operating Activities:    
Net (loss) income $ (82,345) $ 45,796
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of premiums, discounts, and debt issuance costs, net 5,672 7,823
Depreciation and amortization of non-financial assets 5,460 6,315
Originations of held-for-sale loans (846,335) (653,699)
Purchases of held-for-sale loans (5,210,370) (2,901,465)
Proceeds from sales of held-for-sale loans 1,905,228 619,573
Principal payments on held-for-sale loans 59,508 30,454
Net settlements of derivatives (16,853) (66,475)
Non-cash equity award compensation expense and other 9,733 12,250
Market valuation adjustments 32,865 (73,859)
Realized gains, net (1,206) (408)
Net change in:    
Other assets (42,281) 8,592
Accrued expenses and other liabilities 115,176 44,932
Net cash used in operating activities (4,065,748) (2,920,171)
Cash Flows From Investing Activities:    
Originations and purchases of loan investments (258,975) (120,341)
Proceeds from sales of loans 91,204 52,163
Principal payments on loan investments 1,703,903 1,049,264
Purchases of HEI (6,060) (606)
Repayments on HEI 21,711 27,272
Purchases of real estate securities (22,087) (111,060)
Proceeds from sales of real estate securities 115,281 0
Principal payments on real estate securities 537 669
Repayments from servicer advance investments, net (5,583) 8,959
Other investing activities, net (2,097) (4,541)
Net cash provided by investing activities 1,637,834 901,779
Cash Flows From Financing Activities:    
Proceeds from issuance of asset-backed securities 3,770,078 2,600,015
Repayments on asset-backed securities issued (1,414,056) (732,726)
Proceeds from borrowings on debt obligations 6,815,713 3,910,021
Repayments on debt obligations (6,534,950) (3,723,966)
Debt issuance costs paid (8,490) (13,734)
Taxes paid on equity award distributions (2,875) (3,106)
Net proceeds from issuance of common stock 238 233
Net payments on repurchase of common stock (7,513) 0
Dividends paid on common stock (50,675) (44,246)
Dividends paid on preferred stock (3,507) (3,507)
Other financing activities, net (750) 0
Net cash provided by financing activities 2,563,213 1,988,984
Net increase (decrease) in cash, cash equivalents and restricted cash 135,299 (29,408)
Cash, cash equivalents and restricted cash at beginning of period 312,927 368,788
Cash, cash equivalents and restricted cash at end of period 448,226 339,380
Cash and cash equivalents 301,979 [1] 275,581
Restricted cash at end of period [2] 146,247 [1] 63,799
Cash, cash equivalents and restricted cash at end of period 448,226 339,380
Cash paid during the period for:    
Interest 496,718 366,088
Taxes paid (refunded) 4,348 (370)
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 3,792,872 2,818,171
Transfers from loans held-for-investment to loans held-for-sale 2,147,978 0
Transfers from residential consumer loans to real estate owned 16,142 13,833
Right-of-use asset obtained in exchange for operating lease liability $ 2,907 $ 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 June 30, 2025 and December 31, 2024, assets of consolidated VIEs totaled $17,484,443 and $14,654,942, respectively. At June 30, 2025 and December 31, 2024, liabilities of consolidated VIEs totaled $16,386,516 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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