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“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”, said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “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.”

In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses.

The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies.

In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.

To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years.


(in thousands)	Three Months Ended December 31, 2025		Year Ended December 31, 2025
Net Loss	$	(232,612)	$	(221,061)
Reconciling items:
Unrealized loss on MSR - discontinued operations	—		8,952
Unrealized loss on joint ventures	523		2,845
Increase in CECL reserve	113,974		35,178
Increase (decrease) in valuation allowance	23,318		(15,443)
Non-recurring REO impairment	15,027		23,653
Non-cash compensation	797		5,807
Unrealized loss on preferred equity, at fair value	10,645		12,923
Merger transaction costs and other non-recurring expenses	3,102		11,976
(Gain) loss on bargain purchase	3,013		(109,549)
Depreciation and amortization on real estate owned	1,712		2,812
Realized losses on sale of investments	64,987		282,479
Total reconciling items	$	237,098	$	261,633
Income tax adjustments	(14,556)		(61,376)
Distributable loss before realized losses	$	(10,070)	$	(20,804)
Realized losses on sale of investments, net of tax	(55,209)		(225,243)
Distributable loss	$	(65,279)	$	(246,047)
Less: Distributable earnings attributable to non-controlling interests	1,926		7,345
Less: Income attributable to participating shares	2,015		8,667
Distributable loss attributable to common stockholders	$	(69,220)	$	(262,059)
Distributable loss before realized losses on investments, net of tax per common share - basic and diluted	$	(0.09)	$	(0.23)
Distributable loss per common share - basic and diluted	$	(0.43)	$	(1.59)

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 450 professionals nationwide.


(in thousands)	December 31, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	207,841	$	143,803
Restricted cash	39,746		30,560
Loans, net (including $737 and $3,533 held at fair value)	3,500,298		3,378,149
Loans, held for sale (including $73,094 and $128,531 held at fair value and net of valuation allowance of $67,612 and $97,620)	585,820		241,626
Mortgage-backed securities	34,501		31,006
Investment in unconsolidated joint ventures (including $5,737 and $6,577 held at fair value)	161,424		161,561
Derivative instruments	6,740		7,963
Servicing rights	126,279		128,440
Real estate owned	620,225		193,437
Other assets	508,238		362,486
Assets of consolidated VIEs	1,978,684		5,175,295
Assets held for sale	—		287,595
Total Assets	$	7,769,796	$	10,141,921
Liabilities
Secured borrowings	2,788,926		2,035,176
Securitized debt obligations of consolidated VIEs, net	1,174,785		3,580,513
Senior secured notes, net	722,729		437,847
Corporate debt, net	652,487		895,265
Guaranteed loan financing	524,091		691,118
Contingent consideration	18,698		573
Derivative instruments	1,432		352
Dividends payable	3,633		43,168
Loan participations sold	56,616		95,578
Due to third parties	3,135		1,442
Accounts payable and other accrued liabilities	171,636		188,051
Liabilities held for sale	—		228,735
Total Liabilities	$	6,118,168	$	8,197,818
Preferred stock Series C, liquidation preference $25.00 per share	8,361		8,361

Commitments & contingencies

Stockholders’ Equity
Preferred stock Series E, liquidation preference $25.00 per share	111,378		111,378
Common stock, $0.0001 par value, 500,000,000 shares authorized, 163,010,012 and 162,792,372 shares issued and outstanding, respectively	17		17
Additional paid-in capital	2,264,355		2,250,291
Retained deficit	(807,522)		(505,089)
Accumulated other comprehensive loss	(24,196)		(18,552)
Total Ready Capital Corporation equity	1,544,032		1,838,045
Non-controlling interests	99,235		97,697
Total Stockholders’ Equity	$	1,643,267	$	1,935,742
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity	$	7,769,796	$	10,141,921



(in thousands, except share data)	Three Months Ended December 31, 2025		Year Ended December 31, 2025


Interest income	$	123,973		$	569,166
Interest expense	(110,851)			(514,125)
Net interest income before provision for loan losses	$	13,122		$	55,041
Provision for loan losses	(149,989)			(87,038)
Net interest loss after provision for loan losses	$	(136,867)		$	(31,997)
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned	(10,599)			(142,112)
Net unrealized gain (loss) on financial instruments	(12,703)			(13,153)
Valuation recovery (allowance), loans held for sale	(23,318)			15,443
Servicing income, net of amortization and impairment of $7,237 and $29,919	5,042			18,703
Gain (loss) on bargain purchase	(3,013)			109,549
Income on unconsolidated joint ventures	1,271			4,562
Other income	16,049			53,716
Total non-interest income (expense)	$	(27,271)		$	46,708
Non-interest expense
Employee compensation and benefits	(23,923)			(89,487)
Allocated employee compensation and benefits from related party	(4,350)			(14,828)
Professional fees	(12,973)			(30,837)
Management fees – related party	(4,543)			(20,348)
Loan servicing expense	(4,605)			(41,258)
Transaction related expenses	(807)			(6,050)
Impairment on real estate	(15,027)			(23,503)
Other operating expenses	(33,821)			(90,956)
Total non-interest expense	$	(100,049)		$	(317,267)
Loss from continuing operations before benefit for income taxes	(264,187)			(302,556)
Income tax benefit	31,622			86,703
Net loss from continuing operations	$	(232,565)		$	(215,853)
Discontinued operations
Loss from discontinued operations before income tax benefit	(63)			(6,944)
Income tax benefit	16			1,736
Net loss from discontinued operations	$	(47)		$	(5,208)
Net loss	$	(232,612)		$	(221,061)
Less: Dividends on preferred stock	1,999			7,996
Less: Net income attributable to non-controlling interest	1,572			7,854
Net loss attributable to Ready Capital Corporation	$	(236,183)		$	(236,911)

Earnings per common share from continuing operations - basic	$	(1.46)		$	(1.41)
Earnings per common share from discontinued operations - basic	$	0.00		$	(0.03)
Total earnings per common share - basic	$	(1.46)		$	(1.44)

Earnings per common share from continuing operations - diluted	$	(1.46)		$	(1.41)
Earnings per common share from discontinued operations - diluted	$	0.00		$	(0.03)
Total earnings per common share - diluted	$	(1.46)		$	(1.44)

Weighted-average shares outstanding
Basic	161,734,869			164,544,350
Diluted	164,450,230			167,259,712

Dividends declared per share of common stock	$	0.01		$	0.385


	Three Months Ended December 31, 2025
(in thousands)	LMM Commercial Real Estate		Small Business Lending		Corporate-Other		Consolidated
Interest income	$	94,713	$	29,260	$	—	$	123,973
Interest expense	(91,745)		(19,106)		—		(110,851)
Net interest income before provision for loan losses	$	2,968	$	10,154	$	—	$	13,122
Provision for loan losses	(143,540)		(6,449)		—		(149,989)
Net interest income (loss) after provision for loan losses	$	(140,572)	$	3,705	$	—	$	(136,867)
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned	(470)		(10,129)		—		(10,599)
Net unrealized gain (loss) on financial instruments	(8,797)		(3,913)		7		(12,703)
Valuation allowance, loans held for sale	(23,318)		—		—		(23,318)
Servicing income, net	1,868		3,174		—		5,042
Loss on bargain purchase	—		—		(3,013)		(3,013)
Income on unconsolidated joint ventures	1,258		13		—		1,271
Other income	12,757		2,005		1,287		16,049
Total non-interest income (expense)	$	(16,702)	$	(8,850)	$	(1,719)	$	(27,271)
Non-interest expense
Employee compensation and benefits	(7,204)		(14,554)		(2,165)		(23,923)
Allocated employee compensation and benefits from related party	(435)		—		(3,915)		(4,350)
Professional fees	(6,538)		(2,986)		(3,449)		(12,973)
Management fees – related party	—		—		(4,543)		(4,543)
Loan servicing expense	(3,557)		(1,048)		—		(4,605)
Transaction related expenses	—		—		(807)		(807)
Impairment on real estate	(15,027)		—		—		(15,027)
Other operating expenses	(20,880)		(9,549)		(3,392)		(33,821)
Total non-interest expense	$	(53,641)	$	(28,137)	$	(18,271)	$	(100,049)
Loss before provision for income taxes	$	(210,915)	$	(33,282)	$	(19,990)	$	(264,187)
Total assets	$	5,937,031	$	1,280,903	$	551,862	$	7,769,796


	Year Ended December 31, 2025
(in thousands)	LMM Commercial Real Estate		Small Business Lending		Corporate-Other		Consolidated
Interest income	$	447,810	$	121,356	$	—	$	569,166
Interest expense	(434,743)		(79,382)		—		(514,125)
Net interest income before provision for loan losses	$	13,067	$	41,974	$	—	$	55,041
Provision for loan losses	(61,725)		(25,313)		—		(87,038)
Net interest income (loss) after provision for loan losses	$	(48,658)	$	16,661	$	—	$	(31,997)
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned	(191,583)		49,471		—		(142,112)
Net unrealized gain (loss) on financial instruments	(11,250)		(834)		(1,069)		(13,153)
Valuation recovery, loans held for sale	15,443		—		—		15,443
Servicing income, net	6,369		12,334		—		18,703
Gain on bargain purchase	—		—		109,549		109,549
Income on unconsolidated joint ventures	4,508		54		—		4,562
Other income	25,807		23,264		4,645		53,716
Total non-interest income (loss)	$	(150,706)	$	84,289	$	113,125	$	46,708
Non-interest expense
Employee compensation and benefits	(24,577)		(58,232)		(6,678)		(89,487)
Allocated employee compensation and benefits from related party	(1,483)		—		(13,345)		(14,828)
Professional fees	(9,075)		(12,437)		(9,325)		(30,837)
Management fees – related party	—		—		(20,348)		(20,348)
Loan servicing expense	(37,715)		(3,543)		—		(41,258)
Transaction related expenses	—		—		(6,050)		(6,050)
Impairment on real estate	(23,503)		—		—		(23,503)
Other operating expenses	(41,710)		(40,071)		(9,175)		(90,956)
Total non-interest expense	$	(138,063)	$	(114,283)	$	(64,921)	$	(317,267)
Income (loss) before provision for income taxes	$	(337,427)	$	(13,333)	$	48,204	$	(302,556)
Total assets	$	5,937,031	$	1,280,903	$	551,862	$	7,769,796