Ready Capital Corporation (NYSE: RC) reported a GAAP loss per common share of $1.46 and a distributable loss per common share of $0.43 for the quarter ended December 31, 2025. The company also disclosed a distributable loss before realized losses of $0.09, indicating that the majority of the loss was driven by realized portfolio sales rather than ongoing operating performance. Revenue for the quarter was $41.5 million, down from $47.3 million in Q3 2025 and below analyst estimates, underscoring a decline in top‑line growth as the company continues to unwind its legacy commercial‑real‑estate book.
In comparison, Ready Capital’s fourth‑quarter 2024 results showed a GAAP loss of $1.80 per share and a distributable loss of $0.03 per share, while Q3 2025 posted a GAAP loss of $0.13 and a distributable loss of $0.94. The widening losses and the sharp drop in revenue highlight the financial pressure the company is experiencing as it reduces its legacy portfolio and shifts toward a more capital‑light, SBA‑centric model.
The company’s SBA lending segment grew, with $140 million in originations in Q4 2025, including $84 million in SBA 7(a) loans. This growth contrasts with the decline in the commercial‑real‑estate segment, which has been a key driver of the company’s recent losses. The shift toward SBA lending is part of a broader strategy to reduce capital intensity and improve long‑term profitability.
Thomas Capasse, Ready Capital’s Chairman and CEO, said, "We continue to execute on our liquidity plan with a focus on meeting our corporate obligations and repositioning the Company's equity away from Covid‑vintage production. The equity drawdown associated with these actions is significant but represents an important step toward addressing the financial pressure experienced since the onset of the commercial real estate cycle. We believe the execution of our plan will improve our liquidity profile and support greater financial stability going forward."
Management indicated that the company is focused on completing its balance‑sheet repositioning by mid‑to‑late 2026 and aims to generate over $850 million in free cash. The guidance signals a cautious outlook, reflecting the company’s intent to stabilize its financial position while pursuing growth in the SBA lending space.
The market reacted negatively to the earnings release, with Ready Capital’s stock falling 3.68% in pre‑market trading. The decline was driven by the significant losses, the revenue miss, and the company’s ongoing balance‑sheet restructuring, which raised concerns about short‑term profitability and the pace of the transition to a new business model.
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