Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 103

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 these components. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding these components and related transactions.For the three months ended September 30, 2025 and 2024, income from Servicing investments included Other interest income of $7 million and $8 million, respectively, Investment fair value changes, net of negative $1 million and $4 million, respectively, and Servicing income, net of $1 million and $0.3 million, respectively. For the nine months ended September 30, 2025 and 2024, income from Servicing investments included Other interest income of $21 million and $24 million, respectively, Investment fair value changes, net of negative $6 million and positive $4 million, respectively, and Servicing income, net of $6 million and $8 million, respectively.

36

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) 

Note 12. Strategic Investments

Strategic Investments at September 30, 2025 and December 31, 2024 are summarized in the following table.Table 12.1 – Components of Strategic Investments(In Thousands)September 30, 2025December 31, 2024Strategic investments, equity method$43,580 $48,767 Strategic investments, measurement alternative25,756 25,896 Strategic investments, at fair value6,460 3,460 Other investments6,697 — Total Strategic Investments$82,493 $78,123 Income from Strategic Investments for the three and nine months ended September 30, 2025 and 2024 are summarized in the following tables.Table 12.2 – Components of Income From Strategic Investments, netThree Months Ended September 30,(In Thousands)20252024Other (loss) income, net (1)$(1,172)$(52)Investment fair value changes, net (2)1,512 (236)Total Strategic Investments Income, Net$340 $(288)Nine Months Ended September 30,(In Thousands)20252024Other income (loss), net (1)$(203)$(997)Investment fair value changes, net (2)1,300 (1,