Ready Capital Corporation is a U.S.-based entity primarily engaged in real estate financing. The company's operations involve the acquisition, origination, management, servicing, ...
Ready Capital Corporation is a U.S.-based real estate finance company organized as a mortgage real estate investment trust, or REIT. The company is headquartered at 1251 Avenue of the Americas in New York City and operates primarily in the United States. The symbol RCD identifies a debt security issued by ...Ready Capital Corporation is a U.S.-based real estate finance company organized as a mortgage real estate investment trust, or REIT. The company is headquartered at 1251 Avenue of the Americas in New York City and operates primarily in the United States. The symbol RCD identifies a debt security issued by Ready Capital Corporation: notes with a stated maturity of December 15, 2029, rather than the company’s common equity. Accordingly, investors in RCD have exposure to the issuer’s creditworthiness, interest obligations, refinancing capacity, asset quality, and capital structure rather than direct ownership of common shares.
Ready Capital’s business model combines loan origination, acquisition, servicing, asset management, financing, and securitization. Its principal activities include small-to-medium balance commercial lending, small-business lending, residential mortgage banking, and investments in mortgage-backed securities and other real estate-related assets. Through ReadyCap Commercial, the company originates commercial loans secured by investor-owned properties. These properties may be stabilized or in transition and can include a range of commercial real estate asset types. Through ReadyCap Lending, Ready Capital acquires, originates, and services owner-occupied small-business loans that are generally supported by guarantees under the U.S. Small Business Administration’s Section 7(a) program. Through GMFS, the company operates a residential mortgage banking platform focused on originating residential mortgage loans.
As a REIT, Ready Capital generally seeks to distribute at least 90 percent of its taxable income to shareholders in order to maintain favorable U.S. federal tax treatment. This structure can support relatively high distributions but also limits the amount of internally retained capital available for expansion. The company therefore depends on debt facilities, securitizations, asset sales, equity capital, and other financing sources to fund loan growth and manage liquidity. Its economic performance is sensitive to interest rates, credit losses, property values, borrower defaults, prepayment activity, financing spreads, securitization markets, and the availability of commercial real estate capital.
The company reports approximately 475 full-time employees, placing it in the 201-500 employee category. It is led by Thomas Edward Capasse, who serves as Chief Executive Officer and Chief Investment Officer. Ready Capital has roots in the real estate finance and asset-management businesses and was formerly known as Sutherland Asset Management Corporation before adopting the Ready Capital name in September 2018. The supplied company information identifies 2007 as the establishment year, although public descriptions of predecessor businesses and later corporate platforms may cite different milestone dates.
The supplied market data identifies RCD as a New York Stock Exchange-listed instrument in the mortgage REIT industry. The quoted price was approximately 23.10 USD, with a market value of about 257.4 million USD and a stated last dividend or distribution figure of 2.25 USD in the data feed. Because RCD is a note, the most important cost and risk considerations are its coupon, issue price, maturity value, duration, call or redemption terms, seniority, collateral or guarantees, covenants, and the issuer’s ability to refinance or repay principal. A traditional manufacturing bill of materials does not apply; the closest economic equivalent is the funding composition of Ready Capital’s loan portfolio, securitizations, repurchase facilities, warehouse lines, unsecured debt, secured notes, and equity capital. Financial results can be volatile because fair-value movements, provisions, loan sales, funding costs, and credit impairments may materially affect reported earnings. The company’s strategic objective is to scale a diversified real estate credit platform while preserving liquidity, managing leverage, maintaining access to capital markets, and generating attractive risk-adjusted returns for investors and creditors.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$499.5M
+1726.0%
+53.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-228.9M
+47.5%
+49.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+87.7%
-12.3%
+1138.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+24.2%
—
+83.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-45.8%
+97.1%
+67.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-203.5M
-297.3%
-87.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-40.7%
+78.2%
-91.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
377.7%
+15.0%
+8.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.04x
—
-83.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Ready Capital Corporation Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Andrew Ahlborn, Chief Financial Officer. Thank you. You may begin.
Andrew Ahlborn: Thank you, operator, and good morning to those of you on the call. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our second quarter 2026 earnings release and our supplemental information, which can be found in the Investors section of the Ready Capital website. I will now turn it over to Chief Executive Officer, Tom Capasse.
Thomas Capasse: Thank you, Andrew. Good morning, everyone, and thank you for joining today's call. The second quarter of 2026 demonstrates meaningful progress in our balance sheet repositioning strategy. At this juncture, we do not anticipate further large portfolio sales as our completed sales were successful in both raising liquidity and repositioning legacy assets. We have also completed several important financings and believe that multiple initiatives are coming together to meet our corporate obligations as we build towards sustainable profitability. We have been organizing our work this year around 4 priorities: first, strengthening liquidity to generate free cash flow in excess of our 2026 debt maturities; second, resolving non and subperforming CRE assets to eliminate earnings drag; third, transitioning to a lower-cost business model by divesting noncore business lines and integrating our CRE lending with our external manager Waterfall; and fourth, focusing on growth in our small business SBA 7(a) lending. On liquidity, we are nearing completion of the initiatives we started at the end of 2025. Since our first quarter earnings, we have completed the following actions. First, the sale of our $167 million construction portfolio, generating $64 million of net liquidity and removing $172 million of future funding obligations. Second, the securitization of $158 million of unguaranteed SBA 7(a) loans at a 92% advance priced at SOFR plus 240 basis points. The transaction generated $25 million of net liquidity and $500 million of additional …
