Ready Capital Corporation reported its financial results for the third quarter of 2025, revealing a net loss of $16.7 million, compared to a loss of $7.3 million in the same period last year. The company's total revenue for the quarter was $137.5 million, a decrease of 39.3% from $226.5 million in Q3 2024. This decline was primarily attributed to a significant drop in interest income, which fell to $137.5 million from $226.5 million year-over-year, largely due to increased non-accrual loans and reduced loan balances. The company’s net interest income before provisions for loan losses was $10.5 million, down from $51 million in the prior year.
In terms of operational changes, Ready Capital completed several strategic acquisitions, including the merger with United Development Funding IV (UDF IV) on March 13, 2025. This merger was aimed at enhancing the company's portfolio in residential real estate financing. The company also acquired Funding Circle USA, Inc. in July 2024, which is expected to integrate with its existing lending platforms. These acquisitions are part of Ready Capital's strategy to expand its offerings in the lower-to-middle-market commercial real estate and small business lending sectors.
The company’s total assets decreased to $8.3 billion as of September 30, 2025, down from $10.1 billion at the end of 2024. This reduction was primarily due to a significant decline in the assets of consolidated variable interest entities (VIEs), which fell from $5.2 billion to $2.2 billion. However, loans net increased by 29.1% to $4.36 billion, reflecting the company's focus on growing its loan portfolio. The company also reported a substantial increase in real estate owned, which rose to $633 million from $193 million, indicating a strategic shift towards managing real estate assets.
Looking ahead, Ready Capital anticipates continued challenges in the market, particularly with rising interest rates and economic uncertainties. The company is focused on enhancing its liquidity position, with approximately $150 million in unrestricted cash and $830 million in unencumbered assets as of the end of the quarter. Management indicated that they expect to utilize these resources to meet upcoming debt maturities and continue their investment strategy, which includes further asset sales to improve liquidity and reduce leverage. The company remains committed to maintaining its status as a real estate investment trust (REIT) and distributing at least 90% of its taxable income to shareholders.
About Ready Capital Corp
Ready Capital Corporation is a multi-strategy real estate finance company specializing in originating, acquiring, and servicing small-to-medium size loans for commercial real estate and small businesses. Its core segments include LMM (small-balance commercial real estate) loans and government-backed SBA and USDA loans. The company offers diverse financing solutions, primarily through securitizations, targeting small business owners, real estate investors, and institutional investors in the U.S. and Europe.
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