Interest Expense
Redwood Trust Interest Expense increased by 7.0% to $322.20M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 32.0%, from $244.15M to $322.20M. Over 4 years (FY 2021 to FY 2025), Interest Expense shows an upward trend with a 26.7% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
Higher interest expense relative to income indicates higher financial risk or rising interest rates, while lower expense suggests efficient debt management.
Detailed definition
This metric measures the total interest costs incurred on the company's debt obligations during a specific period. It re...
Peer comparison
Standard financial reporting metric for all companies with debt.
interest_expenseHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $108.07M | $103.75M | $112.38M | $136.30M | $126.97M | $142.73M | $146.41M | $152.08M | $152.89M | $156.72M | $169.83M | $180.53M | $200.12M | $223.15M | $238.76M | $244.15M | $270.50M | $284.54M | $301.04M | $322.20M |
| QoQ Change | — | -4.0% | +8.3% | +21.3% | -6.8% | +12.4% | +2.6% | +3.9% | +0.5% | +2.5% | +8.4% | +6.3% | +10.9% | +11.5% | +7.0% | +2.3% | +10.8% | +5.2% | +5.8% | +7.0% |
| YoY Change | — | — | — | — | +17.5% | +37.6% | +30.3% | +11.6% | +20.4% | +9.8% | +16.0% | +18.7% | +30.9% | +42.4% | +40.6% | +35.2% | +35.2% | +27.5% | +26.1% | +32.0% |
Business Segments — Redwood Investments
| Segment | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|
| Redwood Investments | $197.65M | $207.94M | $228.50M | $256.31M |
| Sequoia | $21.50M | $26.66M | $39.68M | $36.34M |
| Aspire | — | — | — | $14.77M |
| Legacy Investments | $32.90M | $30.53M | $13.02M | $12.71M |
| CoreVest | $1.90M | $2.55M | $3.22M | $2.08M |
| Total | $270.50M | $284.54M | $301.04M | $322.20M |
Business Segments — Investment Portfolio
| Segment | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 |
|---|---|---|---|---|---|---|---|---|
| Investment Portfolio | — | — | $132.51M | $133.79M | — | — | $166.81M | $184.32M |
| Residential Consumer Mortgage Banking | $8.18M | $6.87M | $1.70M | $4.83M | — | — | $9.92M | $16.77M |
| Residential Investor Mortgage Banking | — | — | — | — | — | $2.88M | $5.50M | $3.10M |
| Business Purpose Mortgage Banking | $5.24M | $4.04M | $3.67M | $3.89M | — | — | — | — |
| Residential Mortgage Banking | $9.42M | $6.87M | $1.70M | $4.83M | — | $8.27M | — | — |
| Third-Party Investments | $114.11M | $123.45M | $129.86M | $131.30M | $141.94M | $153.11M | — | — |
| Total | $146.41M | $152.08M | $152.89M | $156.72M | $169.83M | $180.53M | $200.12M | $223.15M |
Business Purpose Mortgage Banking, Investment Portfolio, Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, Residential Mortgage Banking, Third-Party Investments were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Business Segments — Sequoia Mortgage Banking
| Segment | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '24 | Q1 '25 |
|---|---|---|---|---|---|
| Sequoia Mortgage Banking | $8.18M | $8.18M | $8.18M | $19.11M | $13.34M |
| CoreVest Mortgage Banking | $4.51M | $4.51M | $4.51M | $3.49M | $2.39M |
| Total | $136.30M | $126.97M | $142.73M | $238.76M | $244.15M |
CoreVest Mortgage Banking, Sequoia Mortgage Banking were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Interest Expense at Other Companies
Frequently Asked Questions
- What is Redwood Trust's interest expense?
- Redwood Trust (RWT) reported interest expense of $322.20M in Q1 2026.
- How has Redwood Trust's interest expense changed year-over-year?
- Redwood Trust's interest expense increased by 32.0% year-over-year, from $244.15M to $322.20M.
- What is the long-term trend for Redwood Trust's interest expense?
- Over 4 years (2021 to 2025), Redwood Trust's interest expense has grown at a 26.7% compound annual growth rate (CAGR), from $426.75M to $1.10B.
- What does interest expense mean?
- Total interest costs paid on debt obligations.