Ready Capital (RC) Q2 2025 earnings summary

Executive summary

• Reported a consolidated net loss of $53.7 million for Q2 2025, with GAAP loss per share of $(0.31) and distributable loss per share of $(0.14); distributable loss before realized losses was $(0.10).

• Completed the sale of the Residential Mortgage Banking segment and executed a bulk sale of 21 legacy bridge loans with a $494 million carrying value, generating $85 million in net proceeds.

• Acquired and stabilized a major mixed-use asset in Portland, OR, through a deed-in-lieu arrangement, with stabilization efforts ongoing.

• Expanded funding capacity through new warehouse and USDA facilities, supporting loan origination and portfolio growth.

• Repurchased 8.5 million shares at an average price of $4.41, increasing book value per share by $0.31.

Financial highlights

• Book value per share was $10.44 as of June 30, 2025, down from $12.97 a year earlier.

• Net interest income for Q2 2025 was $17 million, with total interest income of $152.7 million and net interest income after provision for loan losses at $8.3 million.

• Dividend declared per common share was $0.125 for Q2 2025, with a dividend yield of 11.4%.

• Total assets were $9.3 billion at June 30, 2025, down 8.2% from December 31, 2024.

• Operating costs increased 5% quarter-over-quarter to $58 million.

Outlook and guidance

• Management expects modest earnings growth in the second half of 2025, supported by new loan originations, Portland asset stabilization, and ramp-up in SBA and USDA lending.

• Liquidation strategy and reinvestment in the core multi-family bridge portfolio are expected to support a return to profitability.

• Dividend expected to be maintained until earnings profile supports an increase, barring significant macro deterioration.

• Non-core portfolio exit timeline extends into 2026, with active marketing and liquidation strategies.

• Management remains focused on growing the investment portfolio and adapting to market conditions.