Ready Capital Corporation reported its financial results for the second quarter and first half of 2025, revealing a net loss of $53.7 million for the quarter, compared to a loss of $34.2 million in the same period last year. For the six months ended June 30, 2025, the company posted a net income of $28.3 million, a significant turnaround from a loss of $108.4 million in the prior year. The company’s total interest income decreased to $152.7 million from $234.1 million year-over-year, while interest expense also fell to $135.8 million from $183.2 million, reflecting a reduction in loan balances and interest rates.
The company’s total assets as of June 30, 2025, were reported at $9.3 billion, down from $10.1 billion at the end of 2024. This decline was primarily attributed to a significant decrease in assets of consolidated variable interest entities (VIEs), which fell from $5.2 billion to $2.4 billion. However, loans net increased by 50% to $5.1 billion, driven by the acquisition of new loans and the company’s strategic focus on lower-to-middle-market commercial real estate lending and small business loans.
In terms of operational developments, Ready Capital completed several acquisitions, including United Development Funding IV in March 2025, which is expected to enhance its portfolio of residential real estate loans. The company also acquired Funding Circle USA in July 2024, integrating its online lending platform into Ready Capital’s offerings. The company’s employee headcount has increased as a result of these acquisitions, reflecting its growth strategy.
Looking ahead, Ready Capital anticipates continued challenges in the market, particularly with rising interest rates and economic uncertainties. The company is focused on managing its liquidity and capital resources effectively, with a total leverage ratio of 3.5x and a recourse leverage ratio of 1.5x as of June 30, 2025. The management remains committed to its strategy of providing attractive risk-adjusted returns to shareholders through dividends and capital appreciation, while navigating the complexities of the current economic landscape.
About Ready Capital Corp
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