Ready Capital Corp
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
RC$0.85-20.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001628280-26-054850
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001628280-26-071703
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 726 previous paragraphs and 755 current paragraphs.
569 unchanged; 100 reworded; 67 added; 48 removed; 9 previous and 19 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (67)
Current report
losses and an increase in the valuation recovery driven by the wind down of non-performing and sub-performing loan
Current report
obligations of consolidated VIEs, netdecreased $0.6 billion due to the collapse of RCMF 2021-FL7, RCMF 2023-FL11,
Current report
RCMF 2023-FL12 and RCMT 2016-3, partially offsetby the closing of RCLT 2026-4. Corporate debt, netdecreased
Current report
$0.2 billion due to the partial repayment of the 5.50% and repayment of the 5.75% and 6.20% Senior unsecured notes.
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Senior secured notes, netdecreased $0.1 billion due to the repayment of the 4.50% Senior secured notes, partially offset
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the closing of RCLT 2026-4.
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Q3 2026 versus Q3 2025. Interest income of$51.9 million representeda decrease of$54.0 million, due to a decrease in
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for loan losses of$9.5 million representeda decrease of$21.5 million, primarily due to a decrease in asset specific
Current report
reserves driven by asset resolutions. Non-interest income of$3.0 million representeda decrease of$14.1 million,
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primarily due to a decrease inthe valuation recovery, partially offset by a decrease in realized losses on financial
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use asset.
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YTD 2026 versus YTD 2025. Interest income of$164.7 million representeda decrease of$188.4 million, due to a
Current report
Provision for loan losses of$89.7 million representedan increase of$171.5 million, primarily due to changes in the
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representeda decrease of$49.7 million, primarily due to a decrease in net realized losses on financial instrumentsand
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servicing expenses.
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Q3 2026 versus Q3 2025. Interest income of$31.9 million was essentially unchanged from the prior year period. Interest
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expense of$24.5 million representedan increase of$4.1 million, driven by an increase in average loan balances,
Current report
Non-interest expense of$25.9 million representeda decrease of$2.4 million, due to a decrease in professional fees,
Current report
partially offset by an increase in loan servicing expenses.
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YTD 2026 versus YTD 2025. Interest income of$78.2 million representeda decrease of$13.9 million, primarily due to
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a decrease in average loan balances and a decrease in interest rates. Interest expense of$58.2 million representeda
Current report
losses of$15.4 million representeda decrease of$3.4 million, due to changes in the forecasted macroeconomic inputs
Current report
$2.8 million, due to decreases in employee compensation and benefits and loan origination expenses, partially offset by
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an increase in loan servicing expenses.
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Non-interest expense of$16.5 million representeda decrease of$0.3 million, primarily due to a decrease in management
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fees and transaction related expenses, partially offset by an increase in professional fees.
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expenses, partially offset by an increase in professional fees and employee compensation and benefits.
Current report
$45.5 million from thethird quarter of 2025, primarily due to a decrease in the valuation allowance, a gain on bargain
Current report
purchase recognized from the UDF IV Merger in the prior year period driven by a discount in UDF IV’s market
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third quarter of 2026 representedan increase of$29.0 million from thethird quarter of 2025. Theincrease in the
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representedan increase of$373.5 million from thenine months ended September 30, 2025, primarily due to an increase
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in the provision for loan losses, a gain on bargain purchase recognized from the UDF IV Merger in the prior year period,
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and a decrease in net interest income. Consolidated distributable loss before realized losses of$115.5 million for thenine
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months ended September 30, 2026 representedan increase of$104.8 million from thenine months ended September 30,
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of the agreement and the closing date of the UDF IV Merger and an increase in the provision for loan losses.
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Consolidated distributable loss of$316.6 million for thenine months ended September 30, 2026 representedan increase
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liquidity to fund ongoing obligations. On September 28, 2026, we redeemed all $350.0 million of the outstanding 2026
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Senior Secured Notes, using the net proceeds from the issuance of the 2031 Senior Secured Notes together with cash on
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hand. Following the redemption, approximately$200.0 million of debt is maturing in the next twelve months. We had
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approximately$157.0 million of unrestricted cash and approximately$606.0 million of unencumbered assets as of
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Removed paragraphs (48)
Previous report
and net realized losses on financial instruments and real estate owned, which were primarily driven by the sale of sub-
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and non-performing assets pursuant to the balance sheet repositioning strategy which included strategic loan sales, and
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Q2 2026 versus Q2 2025. Interest income of$53.9 million representeda decrease of$68.3 million, due to a decrease in
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Provision for loan losses of$13.7 million representedan increase of$8.5 million, primarily due to an increase in asset
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specific reserves. Non-interest loss of$19.3 million representeda decrease of$17.3 million, primarily due to an increase
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Portland mixed-use asset.
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YTD 2026 versus YTD 2025. Interest income of$112.8 million representeda decrease of$134.4 million, due to a
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above. Provision for loan losses of$80.2 million representedan increase of$193.0 million, primarily due to changes in
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$63.7 million, primarily due to a decrease inthe valuation allowance and income from the Portland mixed-use asset,
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Q2 2026 versus Q2 2025. Interest income of$23.5 million representeda decrease of$7.0 million, primarily due to a
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decrease in average loan balances and a decrease in interest rates. Interest expense of$17.6 million representeda
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losses of$7.9 million representedan increase of$4.4 million, due to an increase in asset specific reserves and changes in
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of$14.0 million, primarily due to a decrease in realized and unrealized gains on financial instruments, partially offset by
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servicing income. Non-interest expense of$28.2 million representedan increase of$0.4 million, due to increases in loan
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servicing expense, partially offset by decreases in loan origination expenses.
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YTD 2026 versus YTD 2025. Interest income of$46.3 million representeda decrease of$14.2 million, primarily due to
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a decrease in average loan balances and a decrease in interest rates. Interest expense of$33.8 million representeda
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losses of$12.2 million representedan increase of$0.4 million, due to an increase in asset specific reserves and changes
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expense of$57.4 million representeda decrease of$0.4 million, due to decreases in employee compensation and benefits
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and loan origination expenses.
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Merger, when compared to the respective prior year period gain on bargain purchase recognized from the Funding Circle
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Acquisition. Non-interest expense of$16.7 million representedan increase of$1.6 million, primarily due to an increase
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in employee compensation and benefits, partially offset by decreased management fees.
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expenses, partially offset by an increase in employee compensation and benefits.
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of$46.0 million from thesecond quarter of 2025, primarily due to net realized losses on financial instruments, a
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decrease in net interest income and an increase inother operating expenses and provision for loan losses, partially offset
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second quarter of 2026 representedan increase of$22.4 million from thesecond quarter of 2025. Thedecrease in the
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representedan increase of$328.1 million from thesix months ended June 30, 2025, primarily due to an increase in the
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provision for loan losses, net realized losses on financial instruments, a gain on bargain purchase recognized from the
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allowance. Consolidated distributable loss before realized losses of$84.3 million for thesix months ended June 30, 2026
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representedan increase of$75.8 million from thesix months ended June 30, 2025. Theincrease in the distributable
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investments anda gain on bargain purchase recognized from the UDF IV Merger in the prior year period, primarily
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in net interest income, partially offset by a decrease in the valuation allowance. Consolidated distributable loss of$233.5
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million for thesix months ended June 30, 2026 representedan increase of$202.3 million from thesix months ended
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liquidity to fund ongoing obligations and address upcoming debt maturities, including the approximately$450.0 million
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of debt maturing in 2026. We had approximately$124.0 million of unrestricted cash and approximately$690.0 million
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our liquidity needs.
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originations. The net cash provided by operating activities reflected a valuation allowance related to the transfer of
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Loans, net to Loans held for sale, the sale of Loans, held for sale and net income, partially offset by a recovery of loan
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date of the merger. The net cash used for financing activities primarily reflected repayments of securitized debt
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Reworded paragraphs (100)
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•our ability to obtain a license for the Freddie Mac Conventional Small program, which is replacing the Freddie
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•our ability to obtain a license for the Freddie Mac Conventional Small program, which replaced the Freddie
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through, Sutherland Partners, LP (our “operating partnership”). We also intend to operate our business in a manner that
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through, Sutherland Partners, L.P. (our “operating partnership”). We also intend to operate our business in a manner that
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rate loans. As of June 30, 2026, all fixed rate loans are match funded in securitization. Floating rate loans generally have
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rate loans. As of September 30, 2026, fixed rate loans are generally match funded in securitization. Floating rate loans
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an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured Overnight Financing
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generally have an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured
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Rate (“SOFR”), which typically resets monthly. As of June 30, 2026, approximately 81% of the loans in our portfolio
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Overnight Financing Rate (“SOFR”), which typically resets monthly. As of September 30, 2026, approximately 81% of
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were floating rate loans, and 19% were fixed rate loans, based on carrying value.
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the loans in our portfolio were floating rate loans, and 19% were fixed rate loans, based on carrying value.
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Current market conditions. During thesecond quarter, macroeconomic concerns persisted including global market
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Current market conditions. During thethird quarter, macroeconomic concerns persisted including global market
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Federal Reserve held interest rates steady during the quarter and there is uncertainty regarding if and when decreases will
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Federal Reserve increased interest rates during the quarter and there is uncertainty regarding if and when decreases will
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Three months ended June 30, 2026. Earnings from continuing operations was a loss of $0.63 per common share,
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Three months ended September 30, 2026. Earnings from continuing operations was aloss of$0.40 per common share,
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compared to $1.25 per common share in the prior quarter, principally due to a decrease in the provision for loan losses
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compared to a loss of $0.63 per common share in the prior quarter, principally due to a decrease in the provision for loan
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transfers of loans to held-for-sale classifications. Book value per common share was $6.83, a decline of $0.60 quarter
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sales. Book value per common share was$6.44, a decline of $0.39 quarter over quarter compared to a decline of $0.60 in
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over quarter compared to a decline of $1.36 in the prior quarter. The quarter over quarter decrease in the rate at which
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the prior quarter. The quarter over quarter decrease in the rate at which book value per common share decreased was
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book value per common share decreased was primarily driven by the wind down of the large portfolio sales that were
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primarily driven by the wind down of the large portfolio sales that were part of our balance sheet repositioning strategy.
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As of June 30, 2026, total assets in our consolidated balance sheet were$6.3 billion, a decrease of$1.5 billion from
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As of September 30, 2026, total assets in our consolidated balance sheet were$5.8 billion, a decrease of$2.0 billion
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December 31, 2025, primarily reflectinga decrease in Assets of consolidated VIEs, Loans, held for sale and Loans, net.
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from December 31, 2025, primarily reflectinga decrease in Assets of consolidated VIEs, Loans, held for sale and Loans,
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Assets of consolidated VIEs decreased $0.9 billion, primarily due to thecollapseof RCMF 2021-FL7, RCMF 2023-
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net. Assets of consolidated VIEs decreased $1.0 billion, primarily due to thecollapseof RCMF 2021-FL7, RCMF 2023-
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FL11, RCMF 2023-FL12 and RCMT 2016-3 and paydowns on securitized loans, partially offset by the closing of RCLT
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FL11, RCMF 2023-FL12 and sale of RCMT 2016-3 and paydowns on securitized loans, partially offset by the closing of
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2026-4. Loans, held for sale decreased $0.3 billion, primarily due to loans sold, partially offset by loans transferred from
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RCLT 2026-4. Loans, held for sale decreased $0.5 billion, primarily due to loans sold, partially offset by loans
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Loans, net. Loans, netdecreased $0.1 billion, primarily due to loan sales, loans transferred from Loans, net to Loans,
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transferred from Loans, net. Loans, netdecreased $0.4 billion, primarily due to loan sales, loans transferred from Loans,
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held for sale, and the closing of RCLT 2026-4, partially offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11,
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net to Loans, held for sale, and the closing of RCLT 2026-4, partially offset by the collapse of RCMF 2021-FL7, RCMF
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2023-FL11, RCMF 2023-FL12 and RCMT 2016-3. Securitized debt obligations of consolidated VIEs, netdecreased
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2023-FL11, RCMF 2023-FL12 and RCMT 2016-3.
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As of June 30, 2026, total liabilities in our consolidated balance sheet were$4.9 billion, a decrease of$1.2 billion from
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As of September 30, 2026, total liabilities in our consolidated balance sheet were$4.5 billion, a decrease of$1.6 billion
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December 31, 2025, primarily reflectinga decrease in Secured borrowings and Securitized debt obligations of
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from December 31, 2025, primarily reflectinga decrease in Secured borrowings, Securitized debt obligations of
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consolidated VIEs, net, partially offset by an increase in Guaranteed loan financing. Secured borrowings decreased $0.9
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consolidated VIEs, net, Corporate debt, net, and Senior secured notes, net, partially offset by an increase in Guaranteed
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billion due to the closing of RCLT 2026-4 and payoffs, partially offset by the collapse of RCMF 2021-FL7, RCMF
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loan financing. Secured borrowings decreased $1.1 billion due to the closing of RCLT 2026-4 and payoffs, partially
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$0.5 billion due to the collapse of RCMF 2021-FL7, RCMF 2023-FL11, RCMF 2023-FL12 and RCMT 2016-3, partially
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offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11, RCMF 2023-FL12 and RCMT 2016-3. Securitized debt
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offsetby the closing of RCLT 2026-4. Guaranteed loan financing increased $0.4 billion due to the closing of RCLT
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by the issuance of the 10.00% Senior secured notes due in 2031.Guaranteed loan financing increased $0.4 billion due to
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As of June 30, 2026, total stockholders’ equity was$1.3 billion, a decrease of$0.3 billion from December 31, 2025,
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As of September 30, 2026, total stockholders’ equity was$1.3 billion, a decrease of$0.4 billion from December 31,
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primarily due to net losses.
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2025, primarily due to net losses.
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classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to upcoming
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classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to 2026 debt
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2026 debt maturities. Increase in non-accrual loans wasprincipally driven by adverse macroeconomic conditions
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maturities. The increase in non-accrual loans wasprincipally driven by adverse macroeconomic conditions including
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including elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements. Interest
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elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements. Interest expense of
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expense of$145.9 million representeda decrease of$90.5 million, driven by decreased loan balances as described
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$59.4 million representeda decrease of$47.2 million, driven by decreased loan balances as described above. Provision
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on financial instruments related to loan sales. Non-interest expense of$32.7 million representedan increase of$5.2
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instruments related to loan sales. Non-interest expense of$35.2 million representedan increase of$6.0 million, due to an
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million, due to an increase in other operating expenses primarily driven by operating costs and depreciation related to the
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increase in other operating expenses primarily driven by operating costs and depreciation related to the Portland mixed-
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classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to upcoming
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classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to 2026 debt
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2026 debt maturities. Increase in non-accrual loans was principally driven by adverse macroeconomic conditions
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maturities. The increase in non-accrual loans was principally driven by adverse macroeconomic conditions including
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including elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements. Interest
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elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements. Interest expense of
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expense of$65.2 million representeda decrease of$50.8 million, driven by decreased loan balances as described above.
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$205.3 million representeda decrease of$137.7 million, driven by decreased loan balances as described above.
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the forecasted macroeconomic inputs for reserve modeling and an increase in asset specific reserves, partially offset by
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forecasted macroeconomic inputs for reserve modeling and an increase in asset specific reserves, partially offset by loans
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decrease in net realized gains on financial instruments. Non-interest expense of$83.3 million representeda decrease of
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valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our stock price between the date
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primarily driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s
Current report — wording carried from elsewhere
shares, and a change in our stock price between the date of the agreement and the closing date of the UDF IV Merger,
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Theincrease in the distributable earnings reconciling items is primarily due to a gain on bargain purchase
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recognized from the UDF IV Merger in the prior year period, primarily driven by a discount in UDF IV’s market
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valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our stock price between the date
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of real estate owned assets and LMM loans.
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for loan originations. The net cash provided by operating activities reflected the sale of Loans, held for sale and realized
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a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares and a change in
Current report — wording carried from elsewhere
2026, ReadyCap Holdings II, LLC, an indirect subsidiary of the Company, completed the offer and sale of $225.0
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Notes are fully and unconditionally guaranteed by the Company, each direct parent entity of ReadyCap Holdings II, and
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Notes or otherwise pledges collateral to secure the 2031 Senior Secured Notes (collectively, the “2031 SSN
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purchase agreement governing the 2031 Senior Secured Notes.
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and limitations on transactions with affiliates.
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2026 Senior Secured Notes (collectively, the “2026 SSN Guarantors”).
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secured by a perfected first-priority lien on certain capital stock and assets (collectively, the “2028 SSN Collateral”)
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The 2028 Senior Secured Notes were issued pursuant to a note purchase agreement, which contains certain customary
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Company borrowed an additional $20.25 million. The Term Loan bears interest on the outstanding principal amount
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
part of our balance sheet repositioning strategy.
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RCMF 2023-FL12 and RCMT 2016-3.
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partially offset by an increase in realized losses on financial instruments related to loan sales. Non-interest expense of
Previous report — wording carried elsewhere
UDF IV Merger in the prior year period, primarily driven by a discount in UDF IV’s market valuation due to factors
Previous report — wording carried elsewhere
such as the illiquid nature of UDF IV’s shares, and a change in our stock price between the date of the agreement and the
Previous report — wording carried elsewhere
earnings reconciling items is primarily due to an increase in the provision for loan losses, realized losses on sale of
Previous report — wording carried elsewhere
driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a
Previous report — wording carried elsewhere
change in our stock price between the date of the agreement and the closing date of the UDF IV Merger and a decrease
Previous report — wording carried elsewhere
illiquid nature of UDF IV’s shares and a change in our stock price between the date of the agreement and the closing