The balance sheet repositioning is generating cash but destroying book value and earnings in the near term. Monitor the completion of the $1.2B loan sale process expected by end of Q2 2026, which management says should alleviate further material book value pressure. The elevated 14.8% delinquency rate and reliance on asset sales for liquidity suggest continued credit risk.
Price Chart
Executive Summary
Ready Capital Corp reported a GAAP net loss of $200.1M for Q1 2026, driven by a $119.5M realized loss on loan sales as part of a balance sheet repositioning plan. The company generated $1.4B in cash from loan sales and liquidations to repay $1.1B in asset-level financing and $184M of corporate debt, but this resulted in a GAAP loss per share of $(1.25) and a distributable loss per share of $(1.00). Core CRE 60+ day delinquencies surged to 14.8% from 6.7% in Q4 2025, reflecting the impact of loan sales and aggressive asset management.
Key Financial Metrics
Key Facts
- GAAP net loss of $200.1M for Q1 2026 vs. net income of $82.0M in Q1 2025
- GAAP loss per share of $(1.25) vs. EPS of $0.47 in Q1 2025
- Distributable loss per share of $(1.00) vs. distributable loss of $(0.09) in Q1 2025
- Revenue (interest income) fell to $81.7M from $155.0M in Q1 2025, a 47.3% decline
- Net interest income before loan loss provisions swung to a loss of $(15.1M) from a gain of $14.5M in Q1 2025
- Realized losses on sale of investments totaled $119.5M
- Book value per share fell to $7.43 from $8.79 at Q4 2025
- 60+ day core CRE delinquencies rose to 14.8% from 6.7% in Q4 2025
- Total leverage reduced to 3.0x from 3.5x at Q4 2025
- Initiated sale process for up to $1.2B of loans as final phase of balance sheet repositioning
Financial Impact
GAAP net loss of $200.1M, distributable loss of $159.8M, book value decline of $1.36 per share
Risk Factors
- Further book value erosion from ongoing loan sales at discounts
- Elevated CRE delinquency rates may signal deeper portfolio credit issues
- Remaining $450M in 2026 corporate debt maturities create refinancing risk
- Distributable loss of $(1.00) per share far exceeds the $0.01 dividend, indicating unsustainable payout
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-032299 |
| Document: 0001628280-26-032299-index.html | 0001628280-26-032299 |
| Document: 0001628280-26-032299.txt | 0001628280-26-032299 |
| 8-K Data (Synthetic) | 0001628280-26-032299 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 18, 2026 5w ago | 8-K | $1.66 $1.67 | ▲ +0.60% | ▼ −0.95% | $1.17 (−29.52%) |
Sep 18, 2026 5w ago | Press Release | $1.66 $1.67 | ▲ +0.60% | ▼ −0.95% | $1.17 (−29.52%) |
Sep 15, 2026 5w ago | Press Release | $1.58 $1.63 | ▲ +3.16% | ▲ +2.03% | $1.17 (−25.95%) |
Aug 6, 2026 11w ago | Press Release | $1.71 $1.85 | ▼ −8.19% | ▼ −8.22% | $1.17 (+31.58%) |
Jun 15, 2026 19w ago | Press Release | $1.67 $1.66 | ▼ −0.60% | ▲ +0.65% | $1.17 (−29.94%) |
May 7, 2026 24w ago | Press Release | $1.89 $1.77 | ▲ +6.35% | ▲ +6.58% | $1.17 (+38.10%) |
May 7, 2026 24w ago | 8-K | $13.60 $13.26 | ▲ +2.50% | ▲ +2.73% | $1.17 (+91.40%) |
May 1, 2026 25w ago | Press Release | $1.86 $2.00 | ▲ +7.53% | ▲ +6.73% | $1.17 (−37.10%) |
Apr 22, 2026 26w ago | 25-NSE | $12.09 $12.27 | ▲ +1.45% | ▲ +1.84% | $1.17 (−90.32%) |
Mar 24, 2026 31w ago | 8-K | $1.52 $1.57 | ▲ +3.27% | ▲ +2.70% | $1.17 (−23.05%) |
US Market Status
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