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Ready Capital
(NYSE:RC)
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Rating:50Neutral
Price Target:
$1.00
▼(-49.75% Downside)
Action:Reiterated
Date:10/09/26
RC scores around the middle primarily because current profitability is severely pressured despite improved liquidity and debt reduction progress. Technicals are notably weak (below key moving averages with negative MACD), while valuation support is limited by a negative P/E and only modestly helped by the dividend yield. The earnings call and recent corporate actions show credible de-leveraging and repositioning momentum, but sizeable legacy CRE/REO and nonperforming exposure plus ongoing losses keep the overall score constrained.
Positive Factors
Debt maturity management
Extending debt maturities reduces near-term refinancing pressure and gives management more time to execute its repositioning plan. Although the replacement debt is more expensive, the transaction removes a large 2026 maturity and improves visibility over the capital structure.
Negative Factors
Persistent unprofitability
Continued losses and declining book value indicate that the repositioning has not yet restored durable earnings power. Ongoing negative results can erode equity available to support lending, constrain capital allocation, and make recovery dependent on successful execution of multiple initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt maturity management
Extending debt maturities reduces near-term refinancing pressure and gives management more time to execute its repositioning plan. Although the replacement debt is more expensive, the transaction removes a large 2026 maturity and improves visibility over the capital structure.
Read all positive factors
Ready Capital (RC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.45M
Dividend Yield3.81%
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-67.55%
EPS Growth-82.70%
CountryUS
Employees442
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-3.44
Shares Outstanding165,191,000
10 Day Avg. Volume1,912,887
30 Day Avg. Volume1,858,399
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.23
Price to Sales (P/S)0.72
P/FCF Ratio-1.76
Enterprise Value/Market Cap28.86
Enterprise Value/Revenue12.23
Enterprise Value/Gross Profit-68.64
Enterprise Value/Ebitda-15.43
Forecast
1Y Price Target
$1.33Price Target Upside-33.42% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-1.92
Revenue Forecast (FY)$35.52M
Ready Capital Business Overview & Revenue Model
Company Description
Ready Capital Corporation is a U.S.-based entity primarily engaged in the real estate finance sector. Its business activities encompass the procurement, generation, administration, servicing, and funding of various loan types, including commercial...
How the Company Makes Money
Ready Capital primarily makes money through (1) net interest income earned on its interest-earning assets—mainly commercial real estate loans and other real estate-related investments—where revenue is generated from interest collected on loans and...
Ready Capital Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed measurable progress: substantial liquidity generation (~$1.9B cash raised), meaningful debt paydown (~$1.7B), cost reductions (~28% OpEx improvement), restoration of SBA financing capacity (~$500M incremental 7(a) capacity), and improving operating metrics at key assets. However, the company remains loss-making, with significant legacy CRE/REO concentration (notably the Ritz) and a sizable sub/nonperforming loan book (~$1B) that still requires resolution. Management presented a credible multi-pronged plan (runoff, financing optimization, SBA growth, and OpEx reductions) that has produced concrete results but retains execution risk on the remaining financing and disposition items needed to fully secure 2026 obligations.Positive Updates
Major Liquidity Generation and Debt Reduction
Completed actions since Q1 generated approximately $1.9 billion of cash used to pay down ~$1.7 billion of asset-level and corporate debt; achieved ~81% of target liquidity objective; ended quarter with $124.1 million of unrestricted cash.
Negative Updates
Company Remains Loss-Making This Quarter
GAAP loss from continuing operations of $0.63 per common share and distributable earnings loss of $0.47 per share; earnings remain negative and recovery depends on completion of remaining liquidity and operational initiatives.
Read all updates
Q2-2026 Updates
Positive
Negative
Major Liquidity Generation and Debt Reduction
Completed actions since Q1 generated approximately $1.9 billion of cash used to pay down ~$1.7 billion of asset-level and corporate debt; achieved ~81% of target liquidity objective; ended quarter with $124.1 million of unrestricted cash.
Read all positive updates
Company Guidance
The company guided that its repositioning plan is largely on track and that it does not expect further large portfolio sales, pointing to actions that have generated roughly $1.9 billion of cash used to pay down about $1.7 billion of debt and to achieving ~81% of its target liquidity objective; completed transactions included the $167M construction-portfolio sale (net $64M, removed $172M future funding), a $158M unguaranteed SBA 7(a) securitization at a 92% advance priced at SOFR +240bps (net $25M and ~$500M of incremental 7(a) capacity), and $445M of CRE dispositions (net $85M), while near-term initiatives include optimizing financing on ~$950M of CRE loans, sale/financing of a $118M JV interest, and an anticipated H2 runoff of ~$900M. Key portfolio and capital metrics: legacy loan book ~$2.7B across 172 positions (+$218M CMBS exposure) with ~37% (~$1B) sub/nonperforming loans (avg duration 11 months, avg mark-to-market LTV 82%, marked at 85%, equity in those loans $436M), performing book equity $572M with levered yields of 10.1%, REO $588M across 24 properties (Ritz = 66% of REO and ~22% of quarter-end equity), unrestricted cash $124.1M, total assets $6.26B, unencumbered assets $690M, and total leverage 3x (heading toward a 2.5x target). Operational and earnings guidance includes accelerating SBA 7(a) originations (Q2 origination $82M; post-securitization originated $43M with a $78M money-out pipeline toward a $1.5B annual target), expected continued improvement in net interest income and reduced earnings drag (current drag from non/subperforming and REO ~$0.29/share), GAAP loss from continuing ops of $0.63/share (improved from $1.25), distributable loss $0.47/share ($0.24/share ex realized losses), book value $6.83/share (down 8.1% QoQ from $7.43), operating expense improvement to $48.7M from $67.7M with a targeted 25–35% OpEx reduction, and a focus on recycling capital into SBA and CRE lending to restore sustainable profitability.Ready Capital Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 409.10M | 499.47M | 27.35M | 389.94M | 383.33M | 296.34M |
| Gross Profit | -72.92M | 437.87M | 27.35M | 389.94M | 383.33M | 296.34M |
| EBITDA | -324.29M | 214.38M | 199.72M | 1.10B | 600.87M | 361.73M |
| Net Income | -556.19M | -228.91M | -435.75M | 339.45M | 194.26M | 157.74M |
Balance Sheet | ||||||
| Total Assets | 6.26B | 7.77B | 10.14B | 12.44B | 11.62B | 9.53B |
| Cash, Cash Equivalents and Short-Term Investments | 124.15M | 247.59M | 143.80M | 148.27M | 281.68M | 229.53M |
| Total Debt | 4.66B | 5.86B | 6.04B | 7.24B | 9.34B | 7.92B |
| Total Liabilities | 4.91B | 6.12B | 8.21B | 9.79B | 9.72B | 8.25B |
| Stockholders Equity | 1.25B | 1.55B | 1.84B | 2.55B | 1.80B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.01B | -203.48M | -51.22M | 33.07M | 359.15M | -3.74B |
| Operating Cash Flow | 1.01B | -203.48M | -51.22M | 33.07M | 359.15M | -34.44M |
| Investing Cash Flow | 1.88B | 2.28B | 1.86B | 1.04B | -1.56B | -1.72B |
| Financing Cash Flow | -2.93B | -2.04B | -1.88B | -1.09B | 1.17B | 1.88B |
Ready Capital Technical Analysis
Negative
1.99
Price Trends
1.48
Negative
1.55
Negative
1.69
Negative
Market Momentum
-0.11
Negative
36.67
Neutral
17.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RC, the sentiment is Negative. The current price of 1.99 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.48, and above the 200-day MA of 1.69, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RC.
Ready Capital Risk Analysis
Ready Capital disclosed 128 risk factors in its most recent earnings report. Ready Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ready Capital Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $482.11M | 11.37 | 5.45% | 15.29% | 3.78% | -15.19% | |
51 Neutral | $339.90M | -1.76 | -16.70% | 12.15% | -19.57% | -397.76% | |
50 Neutral | $173.45M | -0.31 | -37.62% | 3.81% | -67.55% | -82.70% | |
50 Neutral | $463.08M | -15.76 | -2.91% | 17.49% | -0.14% | -10.71% | |
48 Neutral | $185.86M | -44.49 | -0.88% | 17.91% | 28.95% | 76.08% | |
47 Neutral | $825.25M | 8.13 | 7.78% | 45.15% | -63.13% | ― |
* Real Estate Sector Average
RC
Ready Capital
1.05
-2.01
-65.72%
ARI
Apollo Real Estate
6.42
0.14
2.16%
ACRE
Ares Commercial
3.35
-0.70
-17.35%
KREF
Kkr Real Estate Finance
5.76
-2.14
-27.11%
TRTX
Tpg Re Finance
6.28
-1.58
-20.13%
BRSP
BrightSpire Capital
3.66
-1.03
-21.99%
Ready Capital Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ready Capital Completes Strategic Debt Refinancing and Extension
Neutral
Sep 28, 2026
On September 28, 2026, Ready Capital, through subsidiary ReadyCap Holdings II, LLC, closed a previously priced private placement of $225 million in 10.00% Senior Secured Notes due 2031, reinforcing its long-term funding profile. On the same day, i...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Ready Capital Eases Senior Notes Covenants for Flexibility
Positive
Sep 23, 2026
On September 18, 2026, Ready Capital Corporation amended the terms governing its $100 million aggregate principal amount of 7.375% Senior Notes due 2027 through a First Supplement to its existing indenture with U.S. Bank Trust Company, National As...
Business Operations and StrategyPrivate Placements and Financing
Ready Capital Prices Notes to Redeem 2026 Debt
Positive
Sep 18, 2026
On September 18, 2026, Ready Capital Corporation said its subsidiary ReadyCap Holdings II priced a $225 million private placement of 10.00% senior secured notes due 2031, issued at 99.5% of par and expected to close on September 28, 2026. Net proc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.