Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 256

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 256
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OLIDATED 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 (1,036)Total Strategic Investments Income, Net$1,097 $(2,033)(1)Represents net equity method earnings from our Strategic investments that are accounted for under the equity method.(2)Includes Investment fair value changes related to our Strategic investments that are accounted for under the measurement alternative for equity securities without readily determinable fair values. For the three and nine months ended September 30, 2025, includes Investment fair value earnings of $0.3 million and $1 million, respectively, under the measurement alternative. For the three and nine months ended September 30, 2024, we recognized net equity method losses of $0.2 million and $1 million, respectively, under the measurement alternative.  Depending on the terms of the strategic investments, we may account for these investments under the fair value option, as non-marketable equity securities under the equity method of accounting or the measurement alternative for equity securities without readily determinable fair values. Refer to Note 6 for further information on the inputs into the fair valuation of these components. Refer to Note