Ready Capital Corporation (RC) Earnings
Ready Capital Corporation is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $-0.47. RC has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -470.9% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $-0.15 | $-0.33 | -117.1% | $-63M | -191.9% |
| Nov 6, 2025 | $-0.24 | $-0.94 | -291.7% | $85M | +17.0% |
| Aug 7, 2025 | $-0.01 | $-0.14 | -1300.0% | $182M | +7.5% |
| May 8, 2025 | $0.12 | $-0.09 | -175.0% | $-74M | -135.7% |
| Mar 3, 2025 | $0.21 | $0.23 | +9.5% | $58M | -72.1% |
| Nov 8, 2024 | $0.23 | $0.25 | +8.7% | $56M | -75.5% |
| Feb 27, 2024 | $0.30 | $0.26 | -13.3% | $316M | +379.6% |
| Feb 27, 2023 | $0.41 | $0.42 | +2.4% | $92M | -42.2% |
| Aug 4, 2022 | $0.46 | $0.46 | +0.0% | $118M | -21.1% |
| May 5, 2022 | $0.56 | $0.52 | -7.1% | $129M | +24.3% |
| Feb 24, 2022 | $0.51 | $0.67 | +31.4% | $103M | +0.1% |
| Nov 4, 2021 | $0.46 | $0.64 | +39.1% | $105M | +123.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 8, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Balance sheet repositioning strategy: Generated $1.4 billion in cash from loan sales/liquidations, paid down warehouse debt, resolved non- and sub-performing positions, transitioning to lower leverage, more capital-efficient platform. - Liquidity plan: Projected to span four quarters, expecting incremental $400 million liquidity from sale and runoff of $2 billion to $2.5 billion of CRE loans and REO assets by year-end. - Business model transition: Focus investment activity on CRE sectors with best relative value, simplify business model with external manager, increase capital allocation to small business lending platform. - RISC property: Largest single equity allocation, sold 43 condos, hotel occupancy increased 5% year-over-year to 46%, ADR up 1%, REVPAR up 13%.
Guidance
- Anticipates incremental $400 million liquidity from sale and runoff of $2 billion to $2.5 billion of CRE loans and REO assets by year-end. - Believes remaining actions and current liquidity sufficient to retire remaining 26 maturities and satisfy future cash flow needs. - Expect leverage to stabilize around 2.5x post-completion of liquidity plan. - Pending launch of 158 million SBA 7A securitization expected to generate capacity for $500 million of incremental go-forward volume.
Segment performance
First quarter generated $1.4 billion in cash from loan sales and liquidations, facilitating pay down of over $1.1 billion in warehouse debt and generating $270 million in net liquidity. Recurring revenue was $16.2 million compared to $41.5 million in prior quarter, driven by $28.5 million reduction in net interest income offset by $3 million increase in other income. Operating expenses increased $7.8 million quarter-by-quarter to $67.7 million, primarily due to $6.7 million increase in non-recurring advance payments to servicers.
Risks & headwinds
- Statements are forward-looking subject to numerous risks and uncertainties causing actual results to differ materially from expectations. - Legacy portfolio performance impact on financials. - Variability in asset sale execution affecting book value. - Deferred tax assets recoverability risk due to ongoing operating losses.
Analyst Q&A
Q: Where do you expect balance sheet total assets to end after planned asset sales?
A: Expect another $2 to $2.5 billion reduction in loan portfolio, current total assets roughly 6.3, expect to come down closer to $4 billion.
Q: Do you have a range of pro forma book value per share?
A: Not providing guidance at this point, change in book value highly dependent on execution of upcoming trades.
Q: Concern about deferred tax assets write-down risk?
A: Current deferred tax asset is $201.6 million, tax receivable is $16.7 million, heavy focus on growing SBA business which may return it to profitability.
Q: Colors on why core performance CRE portfolio deteriorated?
A: Designation with core and non-core becoming less relevant, sale of assets purposefully executed to improve secondary market price creating roll rate and denominator effect.
Q: Impact on reserve allowance and leverage ratios?
A: Additional provision of under 71 million in quarter, loans on book non- and sub-performing fairly limited, expect leverage to stabilize around 2.5 times.
Q: Does less securitization mean less 7A securitization?
A: No, reference to CRE CLOs with focus on multifamily, once NPLs resolved, immediately accretive as can get allocation from external manager.