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MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE:RWT; "Redwood", the "Company"), a leader in expanding access to housing for homebuyers and renters, today reported its financial results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights

On a consolidated basis, GAAP net loss was $(0.07) per basic and diluted common share. Non- GAAP Earnings Available for Distribution ("EAD") was $0.21 per share(1), an increase from the prior quarter and once again exceeding the Company’s dividend Demonstrated sustained momentum in Mortgage Banking despite a more volatile and uncertain macroeconomic backdrop Mortgage Banking production reached a record $8.5 billion, up from $7.3 billion in the previous quarter and marking a third consecutive quarterly record(2) Gross margins remained within targeted ranges despite increased market volatility late in the quarter from changes in interest rates and mortgage spreads Distribution remained strong across platforms, supported by record securitization activity and continued momentum in whole loan sales, enabling efficient risk transfer and consistent market access Variability between Consolidated GAAP and EAD results primarily reflects market-driven changes in portfolio valuations rather than underlying operating performance Key Financial First Quarter 2026 Results and Metrics

GAAP book value per common share was $7.12 at March 31, 2026, compared to $7.36 per share at December 31, 2025 Economic return on book value of (0.8)% for the first quarter 2026(3) GAAP net loss of $(7.3) million or $(0.07) per basic and diluted common share Non-GAAP Earnings Available for Distribution ("EAD") of $27.1 million or $0.21 per basic common share(1) Non-GAAP Core Segments Earnings Available for Distribution ("Core Segments EAD") of $36.5 million, or $0.28 per basic common share(4) Declared and paid a regular quarterly dividend of $0.18 per common share “We delivered a third consecutive quarter of record mortgage banking volume, as Sequoia and Aspire continued to scale while maintaining disciplined margins,” said Christopher Abate, Chief Executive Officer of Redwood Trust. “What stands out in this environment is not just the level of production, but how we’re processing it using active distribution and technology to drive capital turnover and efficiently manage risk. As we expand our product set and deepen relationships across our ecosystem, we are seeing sustained demand from institutional investors seeking consistent access to the high-quality assets we source.”

Three Months Ended

3/31/2026

12/31/2025

Financial Performance

Book Value per Common Share

$

7.12

$

7.36

Economic Return on Book Value (3)

(0.8

)%

2.6

%

Net (Loss) Income per Basic Common Share

$

(0.07

)

$

0.13

Non-GAAP EAD per Basic Common Share (non-GAAP) (1)

$

0.21

$

0.20

Non-GAAP Core Segments EAD per Basic Common Share (4)

$

0.28

$

0.33

Dividends per Common Share

$

0.18

$

0.18

   Q1 2026 Segment Highlights (5)   GAAP Segment Net (Loss) Income Results Summary

($ in millions)

Three Months Ended

3/31/2026

12/31/2025

Core Segments:

Mortgage Banking Platforms:

Sequoia Mortgage Banking

$

37.8

$

33.3

Aspire Mortgage Banking

2.3

3.3

CoreVest Mortgage Banking

(3.4

)

6.8

Total Mortgage Banking Platforms

$

36.7

$

43.5

Redwood Investments

(8.0

)

15.2

Total Core Segments

$

28.7

$

58.7

Legacy Investments

$

(13.1

)

$

(22.9

)

Corporate/Other

$

(22.9

)

$

(17.5

)

Total GAAP Net (Loss) Income

$

(7.3

)

$

18.3

Mortgage Banking Platforms

Total Mortgage Banking Platforms GAAP net income of $36.7 million Generated 38% annualized return on capital ("ROC")(6) Continued expansion across platforms, including Sequoia’s new medical professional loan program and Aspire’s inaugural non-QM securitization, supporting volume growth and expanded distribution capabilities Aspire Mortgage Banking reported as a separate segment beginning in the first quarter of 2026 Sequoia Mortgage Banking(5)

Gain on sale margin of 96 basis points, at the higher end of the Company’s target range, and partially impacted by market volatility late in the first quarter Locked $6.5 billion of loans, up 22% from the fourth quarter 2025 and 67% from the first quarter 2025(7) Distributed $5.5 billion of loans through a combination of securitizations ($4.6 billion) and whole loan sales ($915 million), a 35% increase from the prior quarter Completed a record level of securitization activity, including the first ever securitization backed by medical professional loans Cost per loan improved to 18 basis points in the first quarter(8), compared to 26 basis points in the prior quarter, reflecting continued operating scale benefits Aspire Mortgage Banking(5)

Gain on sale margins of 73 basis points, compared to 92 basis points in the fourth quarter 2025 Lock volume of $1.6 billion reflects incremental growth from the fourth quarter and strong underlying demand for Aspire products from a growing network of loan sellers(7) Distributed $1.0 billion of loans through a combination of securitizations ($391 million) and whole loan sales ($656 million), a 44% increase from the prior quarter Expanded distribution capabilities through issuance of Aspire’s inaugural securitization CoreVest Mortgage Banking(5)

Segment GAAP net loss of $(3.4) million included $5.0 million of expenses related to organizational changes during the quarter, impacting comparability to the prior quarter. Non-GAAP EAD was $1.8 million Funded $432 million of loans (61% bridge and 39% term), a 6% decrease from the fourth quarter 2025 and a 10% decrease from the first quarter 2025 Distributed $694 million of newly-originated loans through whole loan sales, securitizations and sales to joint ventures ("JVs"), up 19% from the fourth quarter 2025 Volume reflected a more cautious approach late in the quarter, with intentional pipeline discipline during March volatility and heightened month-end activity, as we worked closely with our borrowers to manage execution in response to evolving investor demand Redwood Investments

Generated a segment GAAP net loss of $(8.0) million Results were primarily driven by unrealized market-related valuation changes during the quarter, partially offset by net interest income from portfolio investments Redwood Investments recourse leverage ratio increased to 1.1x at March 31, 2026, from 1.0x at December 31, 2025(10) Legacy Investments

Segment GAAP net loss of $(13.1) million Continued resolution activity within the legacy bridge portfolio supported capital redeployment and a reduction in portfolio exposure Segment capital allocation decreased to 15% of total invested capital, compared to 19% at December 31, 2025 Closed a $225 million securitization backed by a mix of performing/non-performing bridge loans which included $66 million of loans from the legacy investments portfolio Legacy Investments recourse leverage ratio of 1.6x at March 31, 2026(11) Capital and Financing

Maintained strong liquidity and stable recourse leverage, supporting continued investment in operating platforms Unrestricted cash and cash equivalents of $202 million at March 31, 2026 Recourse debt of $4.7 billion at March 31, 2026 compared to $4.4 billion at December 31, 2025(12) Increased overall warehouse capacity and added a new financing counterparty, supporting continued scale across the mortgage operating platforms Renewed or established over $2.8 billion in total financing capacity Total excess warehouse financing capacity of $3.9 billion at March 31, 2026 Tightened financing spreads and improved advance rates across key facilities Earnings available for distribution ("EAD"), EAD per share and EAD ROE are non-GAAP measures. See Non-GAAP Disclosures section that follows for additional information on these measures. Mortgage Banking refers to the combined performance or data related to Sequoia Mortgage Banking, Aspire Mortgage Banking and CoreVest Mortgage Banking segments. Production consists of loan locks from Sequoia Mortgage Banking and Aspire Mortgage Banking, as well as loan fundings from CoreVest Mortgage Banking. Economic return on book value is based on the period change in GAAP book value per common share plus dividends declared per common share in the period. Core Segments EAD is a non-GAAP measure used to present management’s non-GAAP analysis of the combined performance of the Company’s mortgage banking platforms and related investments (which consist of the Company’s Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments segments), inclusive of an allocated portion of the Company’s Corporate segment relating to those Core Segments. Core Segments EAD excludes the Company’s Legacy Investments segment and excludes an allocated portion of the Company’s Corporate segment relating to the Legacy Investments segment. Core Segments EAD per basic common share and Core Segments EAD ROE are also non-GAAP financial measures and are calculated using Core Segments EAD. See Non-GAAP Disclosures section that follows for additional information on these measures. Beginning in the first quarter of 2026, we revised our segment reporting to (i) present Aspire Mortgage Banking as a new reportable segment separate from our Sequoia Mortgage Banking segment and (ii) allocate corporate financing costs to our Sequoia, Aspire, CoreVest Mortgage Banking, Redwood Investments and Legacy Investments segments. This change had no impact on the consolidated financial statements and all prior period amounts were conformed to the current presentation. ROC for the combined Mortgage Banking platforms is a non-GAAP measure calculated as annualized net income for the Company’s combined Mortgage Banking platforms divided by the average capital utilized by the combined Mortgage Banking platforms for the period. Average capital utilized represents management's internal estimate of the average capital deployed to support the activities of each segment and for Q1'26 the combined Mortgage Banking platform average capital was $386 million.
Beginning in the first quarter of 2026, we revised our segment reporting to allocate corporate financing costs to our Sequoia, Aspire, CoreVest Mortgage Banking, Redwood Investments and Legacy Investments segments. This change had no impact on the consolidated financial statements and all prior period amounts were conformed to the current presentation. Lock volume represents loans identified for purchase from loan sellers. Lock volume does not account for potential fallout from pipeline that typically occurs through the lending process. Cost per loan for the Sequoia Mortgage Banking segment is calculated as general and administrative expenses and loan acquisition costs of this segment divided by loan purchase commitments of this segment. EAD ROC for a segment is calculated as non-GAAP segment EAD annualized divided by average capital utilized for the segment during the period. Non-GAAP EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to: (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition related expenses; (iv) exclude certain organizational restructuring charges (as applicable); and (v) adjust for the hypothetical income taxes associated with these adjustments. Average capital utilized represents management's internal estimate of the average economic capital allocated to support the activities of each segment. Redwood Investments recourse leverage ratio is defined as recourse debt at Redwood Investments divided by capital invested. At March 31, 2026 recourse debt excludes $20.5 billion of consolidated securitization debt (ABS issued and servicer advance financing), other liabilities and other debt that is non-recourse to Redwood at Redwood Investments. Capital invested in our Redwood Investments segment at March 31, 2026 was $510 million. Legacy Investments recourse leverage ratio is defined as recourse debt at Legacy Investments divided by capital invested. At March 31, 2026 recourse debt excludes $181 million of consolidated securitization debt (ABS issued), other liabilities and other debt that is non-recourse to Redwood at Legacy Investments. Capital invested in our Legacy Investments segment at March 31, 2026 was $242 million. At March 31, 2026, and December 31, 2025, recourse debt excluded $21.2 billion and $18.3 billion, respectively, of consolidated securitization debt (ABS issued and servicer advance financing), other liabilities and other debt that is non-recourse to Redwood, and tangible stockholders' equity excluded $32 million and $34 million, respectively, of goodwill and intangible assets. First Quarter 2026 Redwood Review and Supplemental Tables Available Online

A further discussion of Redwood's business and financial results is included in the first quarter 2026 Shareholder Letter and Redwood Review which are available under "Financial Info" within the Investor Relations section of the Company’s website at redwoodtrust.com/investor-relations. Additional supplemental financial tables can also be found within this section of the Company's website.

Conference Call and Webcast

Redwood will host an earnings call today, April 29, 2026, at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time to discuss its first quarter 2026 financial results. The number to dial in order to listen to the conference call is 1-877-423-9813 in the U.S. and Canada. International callers must dial 1-201-689-8573. A replay of the call will be available through midnight on Wednesday, May 13, 2026, and can be accessed by dialing 1-844-512-2921 in the U.S. and Canada or 1-412-317-6671 internationally and entering access code #13759155.

The conference call will be webcast live in listen-only mode through the News & Events section of Redwood’s Investor Relations website at https://www.redwoodtrust.com/investor-relations/news-events/events. To listen to the webcast, please go to Redwood's website at least 15 minutes before the call to register and to download and install any audio software needed. An audio replay of the call will also be available on Redwood's website following the call. Redwood plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission by Monday, May 11, 2026, and also make it available on Redwood’s website.

REDWOOD TRUST, INC.

Consolidated Income Statements (1)

Three Months Ended

($ in millions, except share and per share data)

3/31/26

12/31/25

Net Interest Income

$

34.7

$

25.9

Non-interest income

Mortgage banking activities, net

32.0

53.1

Investment fair value changes, net

(23.2

)

(0.5

)

HEI income, net

7.1

3.0

Servicing income, net

8.0

3.6

Fee income, net

2.9

1.8

Other income, net

2.4

2.2

Realized gains, net

—

(1.8

)

Total non-interest income, net

$

29.2

$

61.3

General and administrative expenses

(49.4

)

(40.8

)

Portfolio management costs

(8.7

)

(4.8

)

Loan acquisition costs

(6.7

)

(5.4

)

Other expenses

(7.1

)

(8.2

)

Benefit from (Provision for) income taxes

2.5

(8.0

)

Net (loss) income

$

(5.5

)

$

20.0

Dividends on preferred stock

(1.8

)

(1.8

)

Net (loss) income (related) available to common stockholders

$

(7.3

)

$

18.3

Weighted average basic common shares (thousands)

124,769

126,295

Weighted average diluted common shares (thousands) (2)

124,769

126,570

(Loss) Earnings per basic common share

$

(0.07

)

$

0.13

(Loss) Earnings per diluted common share

$

(0.07

)

$

0.13

Regular dividends declared per common share

$

0.18

$

0.18

REDWOOD TRUST, INC.

Consolidated Balance Sheets (1)

($ in millions, except share and per share data)

3/31/26

12/31/25

Residential consumer loans

$

21,300

$

17,936

Residential investor loans

3,311

3,617

Real estate securities

476

423

Home equity investments (HEI)

341

330

Servicing investments

300

302

Strategic investments

107

102

Cash and cash equivalents

202

256

Other assets

779

736

Total assets

$

26,816

$

23,701

Asset-backed securities issued, net

$

20,418

$

17,492

Debt obligations, net

4,867

4,799

Other liabilities

574

427

Total liabilities

$

25,859

$

22,718

Stockholders' equity

957

983

Total liabilities and equity

$

26,816

$

23,701

Common shares outstanding at period end (thousands)

125,015

124,460

GAAP book value per common share

$

7.12

$

7.36

Segment Financial Information(1)(2)

Three Months Ended March 31, 2026

(In Millions)

Sequoia
Mortgage
Banking

Aspire
Mortgage
Banking

CoreVest
Mortgage
Banking

Redwood
Investments

Legacy
Investments

Corporate/
Other

Total

Interest income

$

61.3

$

18.4

$

4.2

$

268.7

$

4.0

$

0.3

$

356.9

Interest expense

(36.3

)

(14.8

)

(2.1

)

(256.3

)

(12.7

)

—

(322.2

)

Net interest income (expense)

25.0

3.6

2.1

12.4

(8.7

)

0.3

34.7

Non-interest income (loss)

Mortgage banking activities, net

22.1

2.7

7.2

—

—

—

32.0

Investment fair value changes, net

—

—

(0.3

)

(15.4

)

(7.5

)

—

(23.2

)

HEI income, net

—

—

—

0.6

6.5

—

7.1

Servicing Income, net

—

—

—

8.0

—

—

8.0

Fee Income, net

—

—

2.8

0.2

(0.1

)

—

2.9

Other income, net

—

—

0.6

0.9

1.0

—

2.4

Realized gains, net

—

—

—

—

—

—

—

Total non-interest income, net

22.1

2.7

10.4

(5.8

)

(0.1

)

—

29.2

General and administrative expenses

(7.0

)

(2.5

)

(13.0

)

(3.4

)

—

(23.5

)

(49.4

)

Portfolio management costs

—

—

—

(4.2

)

(4.5

)

—

(8.7

)

Loan acquisition costs

(2.8

)

(1.0

)

(2.8

)

—

—

—

(6.7

)

Other expenses

—

—

(2.0

)

(5.1

)

—

—

(7.1

)

Benefit from (Provision for) income taxes

1.2

(0.3

)

2.1

(1.4

)

0.6

0.3

2.5

Net Income (Loss)

$

38.4

$

2.5

$

(3.3

)

$

(7.3

)

$

(12.8

)

$

(22.9

)

$

(5.5

)

Preferred Dividends

(0.5

)

(0.2

)

(0.1

)

(0.7

)

(0.3

)

—

(1.8

)

Net income (loss) available (related) to common stockholders

$

37.8

$

2.3

$

(3.4

)

$

(8.0

)

$

(13.1

)

$

(22.9

)

$

(7.3

)

Total Assets

$

2,573.7

$

891.5

$

329.3

$

21,903.5

$

945.0

$

172.7

$

26,815.8

  Three Months Ended December 31, 2025

(In Millions)

Sequoia
Mortgage
Banking

Aspire
Mortgage
Banking

CoreVest
Mortgage
Banking

Redwood
Investments

Legacy
Investments

Corporate/
Other

Total

Interest income

$

52.3

$

14.7

$

6.3

$

248.6

$

4.7

$

0.5

$

327.0

Interest expense

(34.3

)

(11.8

)

(4.3

)

(233.7

)

(16.9

)

—

(301.0

)

Net interest income (expense)

17.9

2.9

2.0

14.9

(12.2

)

0.5

25.9

Non-interest income (loss)

Mortgage banking activities, net

35.2

5.2

12.7

—

—

—

53.1

Investment fair value changes, net

—

—

—

7.6

(8.1

)

—

(0.5

)

HEI income, net

—

—

—

0.5

2.5

—

3.0

Servicing Income, net

—

—

—

3.6

—

—

3.6

Fee Income, net

—

—

1.7

0.2

(0.1

)

—

1.8

Other income, net

—

—

1.9

0.8

(0.6

)

—

2.2

Realized gains, net

—

—

—

—

(1.8

)

—

(1.8

)

Total non-interest income, net

35.2

5.2

16.3

12.7

(8.1

)

—

61.3

General and administrative expenses

(10.0

)

(2.7

)

(8.9

)

(1.1

)

—

(18.1

)

(40.8

)

Portfolio management costs

—

—

—

(2.8

)

(2.0

)

—

(4.8

)

Loan acquisition costs

(2.1

)

(0.7

)

(2.7

)

—

—

—

(5.4

)

Other expenses

—

—

(2.0

)

(6.2

)

—

—

(8.2

)

Provision for income taxes

(7.3

)

(1.1

)

2.3

(1.8

)

(0.2

)

0.2

(8.0

)

Net Income (Loss)

$

33.8

$

3.5

$

7.0

$

15.7

$

(22.5

)

$

(17.5

)

$

20.0

Preferred Dividends

(0.5

)

(0.2

)

(0.1

)

(0.6

)

(0.4

)

—

(1.8

)

Net income (loss) available (related) to common stockholders

$

33.3

$

3.3

$

6.8

$

15.2

$

(22.9

)

$

(17.5

)

$

18.3

Total Assets

$

2,411.8

$

909.3

$

357.4

$

18,789.6

$

943.3

$

289.7

$

23,701.1

Non-GAAP Disclosures

To supplement consolidated and segment financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also provides Earnings Available for Distribution (“EAD”), EAD Return on Equity ("EAD ROE"), Core Segments Earnings Available for Distribution (“Core Segments EAD”) and Core Segments EAD Return on Equity ("Core Segments EAD ROE") as non-GAAP measures.

Management believes these non-GAAP measures provide useful supplemental information to investors and management in evaluating the Company’s operating performance, facilitating comparisons to industry peers, and assessing the current income-generating capacity of the Company’s operating platforms as of the period presented, including the Company’s ability to pay dividends. These measures also assist in evaluating the Company’s ongoing transition to a more scalable and simplified business model, including the wind-down of legacy portfolio holdings within the Legacy Investments segment.

These non-GAAP measures should not be utilized in isolation, nor should they be considered as an alternative to GAAP net income (loss) available (related) to common stockholders, or other measurements of results of operations computed in accordance with GAAP or for federal income tax purposes.

Earnings Available for Distribution (“EAD”) and EAD ROE are non-GAAP financial measures that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items. EAD ROE is defined as EAD divided by average common equity.

Core Segments EAD and Core Segments EAD ROE represent management’s non-GAAP assessment of the combined performance of the Company’s mortgage banking platforms and related investments, which include the Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments segments (collectively, the “Core Segments”), together with an allocated portion of the Corporate segment attributable to those operations.

Core Segments EAD excludes the Legacy Investments segment and the portion of the Corporate segment attributable to Legacy Investments. Core Segments EAD ROE is calculated as Core Segments EAD divided by the average capital utilized by the Core Segments during the period, which represents management’s internal estimate of the average economic capital allocated to support Core Segments activities.

Non-GAAP Disclosures (continued) Reconciliation of GAAP to non-GAAP EAD – First Quarter 2026 (1)

Three Months Ended March 31, 2026

($ in millions)

Sequoia
Mortgage
Banking

Aspire
Mortgage
Banking

CoreVest
Mortgage
Banking

Redwood
Investments

Total
Core Segments (4)

Legacy
Investments

Corporate/
Other (3)

Total

GAAP Net Income (Loss)

$

37.8

$

2.3

$

(3.4

)

$

(8.0

)

$

28.7

$

(13.1

)

$

(22.9

)

$

(7.3

)

EAD Adjustments:

Investment fair value changes, net (5)

—

—

—

15.4

15.4

7.5

—

22.9

Realized (gains)/losses, net (6)

—

—

—

—

—

—

—

—

Acquisition related expenses (7)

—

—

2.0

—

2.0

—

—

2.0

Organizational restructuring charges (8)

—

—

5.0

2.1

7.1

—

0.3

7.4

Tax effect of adjustments(9)

—

—

(1.8

)

3.8

2.0

0.1

(0.1

)

1.9

Non-GAAP EAD (2)

$

37.8

$

2.3

$

1.8

$

13.3

$

55.2

$

(5.5

)

$

(22.7

)

$

27.1

Adjustment for allocation of Corporate segment (10)

(7.0

)

(2.6

)

(1.1

)

(8.0

)

(18.7

)

(3.9

)

22.7

—

Non-GAAP EAD with Allocated Corporate Segment

$

30.8

$

(0.3

)

$

0.7

$

5.3

$

36.5

$

(9.4

)

$

—

$

27.1

Net Income (loss) (GAAP)

$

(7.3

)

EAD (Non-GAAP)

$

27.1

Core Segments EAD (Non-GAAP)

$

36.5

Net Income (loss) per Basic Common Share (GAAP)

$

(0.07

)

EAD per Basic common share (Non-GAAP)

$

0.21

Core Segments EAD per Basic Common Share (Non-GAAP) (11)

$

0.28

Return on Equity ("ROE") (annualized) (12)

(3.1

)%

EAD ROE (Non-GAAP) (annualized)

11.5

%

Core Segments EAD Return on Equity (annualized) ("Core Segments EAD ROE") (Non-GAAP) (13)

19.1

%

  Non-GAAP Disclosures (continued)

Reconciliation of GAAP to non-GAAP EAD – Fourth Quarter 2025 (1)

Three Months Ended December 31, 2025

($ in millions)

Sequoia
Mortgage
Banking

Aspire
Mortgage
Banking

CoreVest
Mortgage
Banking

Redwood
Investments

Total Core
Segments (4)

Legacy
Investments

Corporate/
Other (3)

Total

GAAP Net Income (Loss)

$

33.3

$

3.3

$

6.8

$

15.2

$

58.6

$

(22.9

)

$

(17.5

)

$

18.3

EAD Adjustments:

Investment fair value changes, net (5)

—

—

—

(7.6

)

(7.6

)

8.1

—

0.5

Realized (gains)/losses, net (6)

—

—

—

—

—

1.8

—

1.8

Acquisition related expenses (7)

—

—

2.0

—

2.0

—

—

2.0

Tax effect of adjustments (9)

—

—

(0.5

)

4.4

3.9

0.1

(0.1

)

3.8

Non-GAAP EAD (2)

$

33.3

$

3.3

$

8.3

$

12.0

$

56.9

$

(12.9

)

$

(17.6

)

$

26.4

Adjustment for allocation of Corporate segment (10)

(4.8

)

(1.9

)

(1.1

)

(5.8

)

(13.6

)

(4.0

)

17.6

—

Non-GAAP EAD with Allocated Corporate Segment

$

28.5

$

1.4

$

7.2

$

6.2

$

43.2

$

(16.9

)

$

—

$

26.4

Net Income (loss) (GAAP)

$

18.3

EAD (Non-GAAP)

$

26.4

Core Segments EAD (Non-GAAP)

$

43.2

Net Income (loss) per Basic Common Share (GAAP)

$

0.13

EAD per Basic common share (Non-GAAP)

$

0.20

Core Segments EAD per Basic Common Share (Non-GAAP) (11)

$

0.33

Return on Equity ("ROE") (annualized) (12)

7.7

%

EAD ROE (Non-GAAP) (annualized)

11.1

%

Core Segments EAD Return on Equity (annualized) ("Core Segments EAD ROE") (Non-GAAP) (13)

23.8

%

  Certain totals may not foot due to rounding. Earnings Available for Distribution (“EAD”) is a non-GAAP measure that the Company has historically reported and continues to use to present management’s non-GAAP analysis of the operating performance of the Company’s different business segments. EAD is defined, as GAAP net income (loss) available (related) to common stockholders, adjusted to (i) exclude investment fair value changes, net; (ii) exclude realized gains and losses; (iii) exclude acquisition-related expenses; (iv) exclude certain organizational restructuring charges, as applicable; and (v) reflect a hypothetical income tax adjustment associated with these items. Beginning in the first quarter of 2026, we revised our segment reporting to allocate corporate financing costs to our Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments and Legacy Investments segments. This change had no impact on the consolidated financial statements and all prior period amounts were conformed to the current presentation. Core Segments EAD and Core Segments EAD ROE are non-GAAP measures and are used to present management’s non-GAAP analysis of the combined performance of the Company’s mortgage banking platforms and related investments (which are defined as the "Core Segments" and which consist of the Company’s Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments segments), inclusive of an allocated portion of the Company’s Corporate segment relating to those Core Segments. Core Segments EAD excludes the Company’s Legacy Investments segment and excludes an allocated portion of the Company’s Corporate segment relating to the Legacy Investments segment.
Core Segments EAD is defined as: GAAP net income (loss) available (related) to common stockholders adjusted to (i) exclude GAAP net loss from the Legacy Investments Segment, (ii) exclude the portion of the Corporate Segment allocation relating to the Legacy Investments segment, (iii) exclude investment fair value changes, net; (iv) exclude realized gains and losses; (v) exclude acquisition related expenses; (vi) exclude certain organizational restructuring charges (as applicable); and (vii) adjust for the hypothetical income taxes associated with these adjustments.
Refer to footnote 13 below for the definition of Core Segments EAD ROE. Investment fair value changes, net includes all amounts within that same line item in our consolidated statements of (loss) income that are attributable to each segment, which primarily represents both realized and unrealized gains and losses on our investments held in each segment and associated hedges. Realized and unrealized gains and losses on our HEI investments are reflected in a separate line item on our consolidated income statements titled "HEI income, net". Realized (gains)/losses, net includes all amounts within that line item on our consolidated statements of (loss) income that are attributable to each segment. Acquisition related expenses include transaction costs paid to third parties, as applicable, and the ongoing amortization of intangible assets related to the Riverbend and CoreVest acquisitions. Organizational restructuring charges for the first quarter of 2026 represent costs associated with employee severance and related transition expenses. Tax effect of adjustments represents the hypothetical income taxes associated with EAD adjustments used to calculate each segment EAD. Allocation of Corporate Segment is based on the average capital utilized by the segment during the period, which represents management’s internal estimate of the average economic capital allocated to support the activities of each segment. Core Segments EAD per basic common share is a non-GAAP measure and is defined as Core Segments EAD divided by basic weighted average common shares outstanding at the end of the period. ROE consists of consolidated GAAP net income annualized divided by average common equity for the period. Core Segments EAD ROE is a non-GAAP measure and is defined as Core Segments EAD annualized divided by average capital utilized by the Core Segments of $762 million and $726 million for the three months ended March 31, 2026 and December 31, 2025, respectively. Average capital utilized is management's internal estimate of the average economic capital allocated to support the activities of the Core Segments. About Redwood

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. Redwood Investments also includes RWT Horizons®, our unified technology platform spanning internal AI innovation and strategic investments across the ecosystem, which supports our efforts to develop an AI-first operating model that enables compounding operational leverage and scalable growth. This reflects how we manage and organize our business and may differ from the manner in which our reportable segments are presented for financial reporting purposes.

Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn.

Cautionary Statement; Forward-Looking Statements:

This press release and the related conference call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing for the filing of Redwood's Quarterly Report on Form 10-Q. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ from Redwood's beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan” and similar expressions or their negative forms, or by references to strategy, plans, opportunities, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2025 under the caption “Risk Factors”. Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-K, 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

More News From Redwood Trust, Inc.

Redwood Trust (RWT - Free Report) reported $34.7 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 24.4%. EPS of $0.28 for the same period compares to $0.14 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $31.58 million, representing a surprise of +9.9%. The company delivered an EPS surprise of +1.82%, with the consensus EPS estimate being $0.28.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Redwood Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net interest income: $34.7 million compared to the $31.45 million average estimate based on two analysts.Total non-interest income (loss), net- Mortgage banking activities, net: $32 million versus the two-analyst average estimate of $56.19 million.Total non-interest income (loss), net- HEI income, net: $7.1 million compared to the $3.8 million average estimate based on two analysts.Total non-interest income (loss), net: $29.2 million versus the two-analyst average estimate of $59.74 million.View all Key Company Metrics for Redwood Trust here>>>

Shares of Redwood Trust have returned +2.5% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”) today announced the pricing of an underwritten public offering of $125,000,000 aggregate principal amount of its 9.75% senior notes due 2031 (the “Notes”). In connection with the offering, Redwood granted the underwriters a 30-day option to purchase up to an additional $18,750,000 aggregate principal amount of Notes, to cover over-allotments. The offering is expected to close on May 27, 2026, subje.

Redwood Trust reported a Q1 2026 GAAP loss due to fair value declines in retained securitization tranches amid rising rates. RWT issued $125M in 9.75% senior unsecured notes due 2031, diversifying funding and capitalizing on open capital markets despite rate pressures. RWT.PR.A preferred shares yield 10% but offer limited upside and high duration risk, especially as long-term rates rise.

Build-A-Bear Workshop, Inc. remains a buy despite a challenging small/mid-cap environment and recent 30% share price decline. BBW FY26 guidance calls for mid-single-digit revenue growth but a potential ~1 point operating margin reduction, reflecting tariff and digital reinvestment headwinds. Margin pressure stems from both a 10% tariff assumption and necessary investments to revamp e-commerce amid declining SEO visibility and AI-driven search disruption.

Build-A-Bear Workshop remains a hold as margin pressures from tariffs and higher SG&A offset ongoing buybacks and store expansion. BBW's 2026 guidance implies mid-single-digit revenue growth but continued EBIT margin contraction, with tariff and marketing costs already factored in. The CEO transition appears low-risk, with the incoming CEO promoted internally and outgoing leadership providing continuity.

Posted by Defense World Staff on Mar 30th, 2026

Build-A-Bear Workshop, Inc. (NYSE:BBW – Get Free Report) has earned an average rating of “Moderate Buy” from the six ratings firms that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $64.75.

Several equities research analysts have recently weighed in on BBW shares. Zacks Research raised Build-A-Bear Workshop from a “strong sell” rating to a “hold” rating in a research note on Tuesday, March 3rd. DA Davidson cut their price objective on Build-A-Bear Workshop from $85.00 to $70.00 and set a “buy” rating on the stock in a research note on Friday, December 5th. Wall Street Zen cut Build-A-Bear Workshop from a “buy” rating to a “hold” rating in a report on Saturday, December 6th. CJS Securities started coverage on shares of Build-A-Bear Workshop in a report on Wednesday, December 10th. They set a “market outperform” rating and a $70.00 price target for the company. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Build-A-Bear Workshop in a report on Tuesday, December 23rd.

Get Our Latest Research Report on BBW

Build-A-Bear Workshop Stock Performance Shares of NYSE:BBW opened at $37.23 on Friday. Build-A-Bear Workshop has a 52 week low of $32.55 and a 52 week high of $75.85. The firm has a market cap of $482.08 million, a PE ratio of 9.33 and a beta of 1.08. The firm’s fifty day moving average is $50.50 and its 200-day moving average is $55.86.

Build-A-Bear Workshop (NYSE:BBW – Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The specialty retailer reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.01). The company had revenue of $154.51 million during the quarter, compared to analyst estimates of $155.71 million. Build-A-Bear Workshop had a net margin of 9.85% and a return on equity of 34.44%. Sell-side analysts forecast that Build-A-Bear Workshop will post 3.71 EPS for the current year.

Build-A-Bear Workshop Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 26th will be given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 2.5%. This is a boost from Build-A-Bear Workshop’s previous quarterly dividend of $0.22. The ex-dividend date is Thursday, March 26th. Build-A-Bear Workshop’s dividend payout ratio is currently 23.06%.

Hedge Funds Weigh In On Build-A-Bear Workshop Several hedge funds and other institutional investors have recently bought and sold shares of BBW. Kestra Advisory Services LLC acquired a new stake in Build-A-Bear Workshop during the 4th quarter worth about $28,000. IFP Advisors Inc lifted its stake in shares of Build-A-Bear Workshop by 68.1% in the 3rd quarter. IFP Advisors Inc now owns 501 shares of the specialty retailer’s stock valued at $33,000 after purchasing an additional 203 shares during the period. Larson Financial Group LLC boosted its position in shares of Build-A-Bear Workshop by 453.1% during the 3rd quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer’s stock valued at $35,000 after purchasing an additional 444 shares in the last quarter. Blue Trust Inc. boosted its position in shares of Build-A-Bear Workshop by 163.0% during the 4th quarter. Blue Trust Inc. now owns 668 shares of the specialty retailer’s stock valued at $41,000 after purchasing an additional 414 shares in the last quarter. Finally, State of Alaska Department of Revenue acquired a new stake in Build-A-Bear Workshop during the third quarter worth approximately $45,000. Institutional investors and hedge funds own 79.30% of the company’s stock.

About Build-A-Bear Workshop (Get Free Report)

Build-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.

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Posted by Defense World Staff on Apr 6th, 2026

SG Americas Securities LLC raised its holdings in Build-A-Bear Workshop, Inc. (NYSE:BBW – Free Report) by 199.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 28,858 shares of the specialty retailer’s stock after purchasing an additional 19,229 shares during the period. SG Americas Securities LLC owned 0.22% of Build-A-Bear Workshop worth $1,768,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Thrivent Financial for Lutherans boosted its holdings in Build-A-Bear Workshop by 22.0% in the 3rd quarter. Thrivent Financial for Lutherans now owns 917,479 shares of the specialty retailer’s stock worth $59,828,000 after buying an additional 165,159 shares during the period. American Century Companies Inc. raised its holdings in Build-A-Bear Workshop by 6.7% during the 3rd quarter. American Century Companies Inc. now owns 535,791 shares of the specialty retailer’s stock valued at $34,939,000 after acquiring an additional 33,445 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Build-A-Bear Workshop by 3.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 307,662 shares of the specialty retailer’s stock worth $20,063,000 after acquiring an additional 9,221 shares in the last quarter. Qube Research & Technologies Ltd boosted its holdings in shares of Build-A-Bear Workshop by 17.7% in the third quarter. Qube Research & Technologies Ltd now owns 271,520 shares of the specialty retailer’s stock worth $17,706,000 after acquiring an additional 40,743 shares during the period. Finally, Marshall Wace LLP boosted its holdings in shares of Build-A-Bear Workshop by 69.9% in the third quarter. Marshall Wace LLP now owns 237,927 shares of the specialty retailer’s stock worth $15,515,000 after acquiring an additional 97,917 shares during the period. 79.30% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes BBW has been the topic of a number of analyst reports. CJS Securities initiated coverage on Build-A-Bear Workshop in a research note on Wednesday, December 10th. They set a “market outperform” rating and a $70.00 price objective on the stock. Zacks Research upgraded Build-A-Bear Workshop from a “strong sell” rating to a “hold” rating in a research note on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Build-A-Bear Workshop in a research report on Friday, March 27th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $64.75.

Get Our Latest Stock Analysis on BBW

Build-A-Bear Workshop Price Performance BBW opened at $38.05 on Monday. The firm has a market capitalization of $492.76 million, a P/E ratio of 9.54 and a beta of 1.22. Build-A-Bear Workshop, Inc. has a one year low of $32.55 and a one year high of $75.85. The company has a fifty day moving average price of $47.69 and a 200-day moving average price of $54.57.

Build-A-Bear Workshop (NYSE:BBW – Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.01). Build-A-Bear Workshop had a return on equity of 34.44% and a net margin of 9.85%.The business had revenue of $154.51 million during the quarter, compared to analysts’ expectations of $155.71 million. On average, analysts expect that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current year.

Build-A-Bear Workshop Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 26th will be issued a dividend of $0.23 per share. The ex-dividend date of this dividend is Thursday, March 26th. This is a positive change from Build-A-Bear Workshop’s previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a dividend yield of 2.4%. Build-A-Bear Workshop’s payout ratio is presently 23.06%.

Build-A-Bear Workshop Profile (Free Report)

Build-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.

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Build-A-Bear Workshop (BBW) is transitioning toward a capital-light, partner-operated and franchise model, driving higher ROIC, margin intensity, and cash generation versus legacy corporate stores. BBW's forward strategy emphasizes international asset-light expansion, organic growth, and product personalization, with the majority of new units in high-ROIC third-party channels. Recent Walmart wholesale partnership expands BBW's reach, but is treated as a test event with potential brand dilution risk if not managed carefully.

Build-A-Bear Workshop has achieved consistent top-line growth, diversifying revenue streams through international franchising and commercial expansion. BBW faces macro headwinds, including weak consumer confidence, Middle East tensions, and elevated energy prices, which may pressure margins and growth. Receivables growth outpaces revenue due to commercial segment expansion, lengthening cash conversion cycles, and potentially reducing financial flexibility.

Build-A-Bear Workshop and Abbott Laboratories are compelling dividend stocks, each trading near lows with yields close to 3%. BBW offers a debt-free balance sheet, aggressive share repurchases, and international expansion, positioning for 9.3% earnings CAGR and over 70% upside to its $62 target. ABT, trading at a forward P/E of 15.31x, is undervalued with robust liquidity, ongoing buybacks, and insider buying, despite segment weakness and lowered guidance.

Build-A-Bear (BBW - Free Report) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $1.17 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +36.42%. A quarter ago, it was expected that this toy retailer would post earnings of $1.27 per share when it actually produced earnings of $1.26, delivering a surprise of -0.79%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Build-A-Bear, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $125.27 million for the quarter ended April 2026, missing the Zacks Consensus Estimate by 3.72%. This compares to year-ago revenues of $128.4 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Build-A-Bear shares have lost about 38.3% since the beginning of the year versus the S&P 500's gain of 9.9%.

What's Next for Build-A-Bear?While Build-A-Bear has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Build-A-Bear was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $129.5 million in revenues for the coming quarter and $3.86 on $553.85 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Five Below (FIVE - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.

This discount retailer is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of +94.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Five Below's revenues are expected to be $1.2 billion, up 23.9% from the year-ago quarter.

Bath & Body Works Stock Surged Despite Falling Sales—Here’s WhyBuild-A-Bear Workshop NYSE: BBW reported lower first-quarter fiscal 2026 revenue as weaker store and online traffic offset growth in its commercial segment, while management reduced its full-year revenue outlook and pointed to a more cautious consumer environment.

The company also used the call to mark a leadership transition. Sharon John, who has served as chief executive officer for 13 years, said her last day as CEO will be June 11. Chris Hurt, currently chief operating officer and CEO-elect, will take the helm. John said Hurt has played a central role in global retail operations, location expansion and the company’s product and brand go-to-market strategy.

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First-quarter sales decline as traffic softens Bath & Body Works Hits Multi-Year Lows: Bargain or Trap?Build-A-Bear posted total revenue of $125.3 million, down 2.4% from the prior year. Hurt said the company had expected revenue to be approximately flat year over year based on trends through mid-March, but traffic and results weakened as the quarter progressed.

Hurt said management believes part of the softness reflects “a broader macro shift,” citing cautious consumer sentiment, geopolitical concerns and related price increases. He said the company still saw strength around key occasions, including its best Valentine’s Day in North American history and a solid Easter performance.

How Bath & Body Works Is a Perfect Example of a Value Stock Chief Financial Officer Voin Todorovic said the direct-to-consumer segment declined as transactions fell, primarily because of reduced store traffic. Domestic traffic was down 7%, lagging U.S. national retail traffic trends, while e-commerce demand declined 26.1% as web traffic remained soft. Average unit retail and units per transaction increased, helping lift dollars per transaction when customers did engage with the brand.

The commercial segment, which primarily represents wholesale revenue, continued to grow. Todorovic said commercial revenue, combined with international franchise revenue, rose 34.1% in the quarter.

Tariff refund boosts profit and gross margin Gross margin was 63.8%, up 700 basis points from a year earlier. Todorovic said the increase included a 560-basis-point benefit from a $7 million tariff refund related to prior-year costs, along with 140 basis points from higher average unit retail, partially offset by occupancy cost deleverage.

SG&A expenses were $56.1 million, or 44.8% of revenue, compared with 41.7% a year earlier. Todorovic attributed the increase to higher wage rates, talent investments, inflationary pressures and the timing of longer-range investments.

Pre-tax income was $23.9 million, compared with $19.6 million a year earlier. Excluding the $7 million tariff benefit related to fiscal 2025, adjusted pre-tax income was $16.9 million. Earnings per share were $1.45, and adjusted earnings per share were $1.03.

At quarter-end, Build-A-Bear had $26.2 million in cash, down $18.1 million from the prior year, which Todorovic said was mainly due to tariff payments and elevated capital expenditures tied to strategic investments. Inventory was $77.8 million, up $5.6 million, driven by tariffs embedded in product costs and inventory needed to support expected sales activity in the back half of the year.

Guidance lowered for revenue, raised for pre-tax income Build-A-Bear lowered its fiscal 2026 revenue guidance to a range of $530 million to $550 million, representing roughly flat revenue to 4% growth year over year. The company had previously guided for mid-single-digit revenue growth.

Management said the updated outlook reflects first-quarter results, second-quarter-to-date trends and a more conservative view of macroeconomic and geopolitical conditions. Hurt said the company expects the second quarter to be weaker than the first, with easier comparisons and planned growth in the third and fourth quarters.

The company raised its pre-tax income outlook to $72 million to $78 million, reflecting $13 million of IEEPA tariff refunds previously paid, partially offset by the impact of lower expected revenue. Excluding roughly $7 million of tariff refunds tied to prior-year costs, Build-A-Bear expects adjusted pre-tax income of $65 million to $71 million.

Todorovic said the outlook assumes the current Section 122 tariffs and related costs of about $10 million, along with a 10% tariff rate for the remainder of the fiscal year. He added that second-quarter profitability is expected to decline year over year.

Management emphasizes expansion, wholesale and product strategy Hurt said Build-A-Bear’s longer-term growth strategy continues to rest on four pillars: organic growth, location expansion, wholesale and outbound brand licensing, and gifting and personalization.

On organic growth, Hurt said some first-quarter launches resonated with older collectors, or “kidults,” including the Fresh Frosted Animal Cookies collection, which sold through most products in less than two weeks. He also highlighted the Promise Pets collection, which more than doubled sales year over year, and the Mini Beans line, which has sold nearly 4 million units since launch across all channels.

The company plans several product initiatives in the back half of the year, including a Halloween collection in August, the October kickoff of its year-long 30th anniversary celebration and a refreshed Harry Potter collection in December tied to the premiere of a new HBO series.

Build-A-Bear opened seven net new locations in the first quarter and continues to expect at least 50 net new experience locations this year, most operated by international partners. The company added the Philippines as a new market, bringing its international footprint to 37 countries, up from 19 two years ago. Hurt said Germany has become the company’s fastest-expanding market after re-entry late last year.

In the U.S., the company opened additional Build-A-Bear and Hello Kitty and Friends workshops at Mall of America and American Dream, with early results outpacing expectations. It also continues to plan a multi-level ICON Park location in Orlando later this year.

On wholesale, Hurt said Build-A-Bear launched into 1,500 Walmart locations with its Mini Beans collection and opened a Los Angeles showroom to support wholesale accounts. Todorovic said the company still expects commercial segment revenue to grow by at least 20% for the year.

Despite the lower revenue outlook, Todorovic said Build-A-Bear still expects fiscal 2026 to be one of the strongest years in the company’s history, with potential for record revenue, solid pre-tax income margins and continued capital returns. The company returned $14.3 million to shareholders in the first quarter through dividends and share repurchases.

About Build-A-Bear Workshop NYSE: BBWBuild-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.

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Build-A-Bear Workshop faces near-term volatility from inflation, but aggressive international expansion and a debt-free balance sheet underpin long-term upside. BBW revised 2026 revenue guidance downward, but the pre-tax income outlook improved due to tariff refunds, supporting an 11.6% projected growth from last year. Shareholder returns remain robust, with $14.3 million returned in Q1 and continued buybacks leveraging suppressed share prices.

Callodine Capital Management LP increased its stake in shares of Shutterstock, Inc. (NYSE: SSTK) by 86.0% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 768,705 shares of the business services provider's stock after buying an additional 355,478 shares during

, /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced the launch of its Shutterstock app in ChatGPT, enabling users to discover images, videos, music, and sound effects from one of the world's largest content collections directly in ChatGPT.

Embedding Licensable Visual & Audio Content into AI-Native Workflows

Shutterstock now enables users to discover images, videos, music, and sound effects from one of the world’s largest content collections directly in ChatGPT. As AI platforms increasingly become a medium for creative ideation, Shutterstock is embedding high-quality, licensable content directly into AI-native workflows—positioning itself as the licensed content layer that fuels AI-driven creativity. Users can now leverage AI's powerful reasoning and conversational capabilities to find what they need faster by connecting the Shutterstock app in ChatGPT and accessing assets available for licensing on Shutterstock.com, without interrupting their creative process.

Meeting Users Where AI Discovery Begins

OpenAI's growing user base generates more than one billion queries per day, underscoring the scale of AI-native discovery and the opportunity to embed licensable content directly within those workflows. Creators, innovators, marketers, and businesses are increasingly beginning their workflows within conversational AI tools. Shutterstock's app ensures that when users discover content needs in ChatGPT, commercial-ready assets are immediately accessible through a trusted, rights-cleared source. For example, a marketer drafting a campaign brief in ChatGPT can surface licensable hero imagery in the same conversation, preview options, and move directly from prompt to production without breaking workflow.

"Our customers trust Shutterstock as a leading source of high-quality, licensable content, powered by sophisticated AI technology," said Paul Teall, Vice President, Marketplace Strategy at Shutterstock. "This launch brings commercial confidence directly in ChatGPT, enabling teams to move from discovery to content production."

The launch reflects the growing importance of AI-native workflows, and Shutterstock's role as an early leader in providing licensable creative content within those Environments.

Commercial Confidence In ChatGPT

Unlike general search links that redirect users through traditional web experiences, the Shutterstock app in ChatGPT creates a gateway for AI-driven discovery, allowing content to be surfaced, previewed, and moved toward commercial production within AI and agentic workflows. By launching an app in ChatGPT, Shutterstock reduces creative and discovery friction and strengthens its position as the licensable content layer across emerging AI ecosystems.

Shutterstock is the Creative Infrastructure Layer for AI-Driven Workflows

This launch reinforces Shutterstock's strategy to embed AI across the creative experience, from discovery and licensed content, to AI-powered editing and generation. Rather than positioning AI as a separate destination, Shutterstock is integrating it directly into core workflows, ensuring licensable content can be discovered, adapted, and activated within AI-native environments. Together with its broader investments in model training, generative tools, AI editing, and data licensing, this integration reinforces Shutterstock's role as the infrastructure layer for AI-driven creativity.

Shutterstock Data Licensing & AI Services

Shutterstock is an end-to-end AI model training partner that unifies data licensing, services, and long-term collaboration under a single provider—reducing operational complexity and helping teams bring higher-performing AI systems to market faster and with greater confidence. Shutterstock combines access to one of the world's largest rights-cleared multimodal datasets with advanced data curation and custom training datasets to power high-performing, deployment-ready generative models. This licensable training data includes high-quality labeled and continuously updated multimodal content with clear data provenance to support AI compliance. Shutterstock leverages ML-assisted evaluation tools to provide model training, fine-tuning, alignment, evaluation, and retraining. Through human-in-the-loop workflows, expert creative feedback, and structured preference data, Shutterstock delivers aesthetic preference signals, benchmarking, and regression testing to drive continuous model improvement.

Learn more and start the conversation at shutterstock.com/data-licensing.

About Shutterstock
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

SOURCE Shutterstock, Inc.

An integrated creative system where premium content and AI converge to deliver high-quality, licensable outputs

, /PRNewswire/ -- Today, Shutterstock, Inc. (NYSE: SSTK), a family of brands delivering scalable creative and GenAI solutions, announced the launch of its AI Video Generator, which brings together leading text- and image-to-video models in one unified solution. By combining powerful video generation models with one of the world's largest content collections, Shutterstock empowers teams of all sizes to produce commercial-ready video—defined by high-quality standards and clear licensing. Designed for use at every stage of the creative process, from early exploration to go-to-market execution, Shutterstock's AI Video Generator enables customers to test concepts, ideate on different directions, and generate video assets that drive impact.

Shutterstock’s AI Video Generator empowers customers to create commercial-ready videos with high-quality output and clear licensing. One Solution for Commercial-Ready GenAI

"Our customers trust Shutterstock's AI image tools to deliver usable results, and with this launch, we're extending that trust to video with a new tool designed to deliver impact for all our customers," said Paul Teall, Vice President of Marketplace Strategy at Shutterstock. "With two free generations included, customers can quickly experience the power of AI video generation in a solution built for commercial use."

Access to Leading Models, Seamlessly Integrated

Featuring access to leading models from Google, Runway, and more, Shutterstock's AI Video Generator unifies content, models, and licensing within a single platform, reducing fragmentation and empowering teams to ideate, produce, and deploy video content more efficiently across channels. Customers can start from a simple text prompt, animate a static image, evolve existing brand assets, or build on Shutterstock's library of millions of creative assets, eliminating the need to start from scratch. This variety allows for rapid creation and testing, and with multiple licensing options, customers can confidently scale their video output.

Advancing a Unified, AI-Powered Ecosystem

This latest offering is part of Shutterstock's growing evolution as a key partner for AI solutions and services across the full spectrum of AI innovation. Together with its broader investments in model training and evaluation, data licensing, and generative tools, the AI Video Generator represents the next step in translating this infrastructure and expertise into practical, enterprise-grade creative solutions.

To try Shutterstock's new AI Video Generator visit shutterstock.com/ai-video-generator.

Shutterstock Data Licensing & AI Services 
Shutterstock is an end-to-end AI model training partner that unifies data licensing, services, and long-term collaboration under a single provider—reducing operational complexity and helping teams bring higher-performing AI systems to market faster and with greater confidence. Shutterstock combines access to one of the world's largest rights-cleared multimodal datasets with advanced data curation and custom training datasets to power high-performing, deployment-ready generative models. This licensable training data includes high-quality labeled and continuously updated multimodal content with clear data provenance to support AI compliance. Shutterstock leverages ML-assisted evaluation tools to provide model training, fine-tuning, alignment, evaluation, and retraining. Through human-in-the-loop workflows, expert creative feedback, and structured preference data, Shutterstock delivers aesthetic preference signals, benchmarking, and regression testing to drive continuous model improvement.

Learn more and start the conversation at shutterstock.com/data-licensing.

About Shutterstock
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

SOURCE Shutterstock, Inc.

Shutterstock (SSTK - Free Report) came out with quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -48.21%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $1.05 per share when it actually produced earnings of $0.67, delivering a surprise of -36.19%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Shutterstock, which belongs to the Zacks Internet - Content industry, posted revenues of $199.17 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 20.89%. This compares to year-ago revenues of $242.62 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Shutterstock shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Shutterstock?While Shutterstock has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Shutterstock was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $252.56 million in revenues for the coming quarter and $4.02 on $1.01 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Angi (ANGI - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.

This provider of a digital marketplace for home services is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -236.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Angi's revenues are expected to be $241.35 million, down 1.9% from the year-ago quarter.

Photographers are seen at the 62nd Cannes Film Festival, May 18, 2009. REUTERS/Regis Duvignau/File Photo Purchase Licensing Rights, opens new tab

CompaniesMay 15 (Reuters) - Britain's competition regulator ​on Friday said it would clear ‌Getty Images' (GETY.N), opens new tab proposed $3.7 billion merger with Shutterstock (SSTK.N), opens new tab if the latter sells its editorial arm to address ​concerns around news content supply in ​the country.

The decision follows an in-depth investigation launched in ⁠November by the UK's Competition and ​Markets Authority (CMA) after initial remedies offered by ​the U.S.-based companies had failed to address the watchdog's concerns.

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Getty Images and Shutterstock did not immediately respond ​to requests for comment. The companies' stocks ​were up 3.8% and 1.1%, respectively, in U.S. premarket ‌trading.

The ⁠CMA on Friday said the companies had since offered to divest Shutterstock's global editorial business, home to brands such as Backgrid ​and Splash, ​which they ⁠described as non-essential to their core operations.

The regulator's independent inquiry ​group found that the editorial business, ​if ⁠not sold, would reduce choice for UK media outlets and could ultimately raise prices for ⁠customers , ​saying Shutterstock is one ​of the "few meaningful" rivals to Getty.

Reporting by Ankita Bora ​and Tuhina in Bengaluru; Editing by Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- GIPHY, the world's leading platform for visual self-expression, today announced a multi-year extension of its long-standing integration partnership with Meta. Through this agreement, GIPHY's massive library will continue to power GIF and sticker experiences across Meta's entire suite of apps, including Facebook, Instagram, WhatsApp, and Messenger.

GIFs and stickers have become a core part of how people communicate. Across Meta platforms, GIFs and stickers are shared daily, underscoring the role of visual expression in everyday conversations. This partnership reinforces GIPHY's role in enabling dynamic communication at scale across the apps people use every day.

"People don't always want to type how they feel. They want to show it," said Kevin Hein, Chief Growth Officer at GIPHY. "GIPHY makes that possible across Meta's apps every day. This ongoing partnership ensures that experience stays seamless as communication continues to evolve."

GIPHY's library of GIFs, stickers, and short-form content is embedded directly into user experiences, enabling people to express emotion and intent without leaving the apps they're already using. The renewed partnership reflects a shared focus on making digital communication more visual, immediate, and intuitive.

GIPHY recently commissioned a consumer survey by Censuswide that shows users feel more comfortable expressing emotions through visuals than texts. With GIPHY's integration across Meta apps people can take their communication beyond what text and standard emojis can convey.

GIPHY is a wholly-owned subsidiary of Shutterstock, Inc. (NYSE: SSTK), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work.

ABOUT GIPHY
Founded in 2013, GIPHY Inc. is the visual communication platform where thousands of creators, media, and brand partners make everyday expression a little more moving. GIPHY empowers you to discover and share the GIFs, Clips, and Stickers that make your conversations more positive, more expressive, and more you. In addition, GIPHY Ads enables brands to connect with their audiences through ads people share, not just see. Acquired by Shutterstock in 2023, GIPHY's platform has a daily user reach of 1+ billion to which it serves 10+ billion pieces of short-form content every day. For more information, visitGIPHY.com or follow us on Instagram, Twitter, Facebook, and TikTok @GIPHY.

ABOUT SHUTTERSTOCK, INC.
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

View original content to download multimedia:https://www.prnewswire.com/news-releases/giphy-extends-multi-year-integration-partnership-with-meta-302775405.html

SOURCE Shutterstock, Inc.

, /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today unveiled the next evolution of its content library into a human-led, AI-powered creative platform. The advanced creative system combines premium human-made content, AI-powered creation tools, and intuitive workflows to help creatives move from idea to impact without starting from scratch.

Built for real people and real-world creative work, Shutterstock’s AI-powered creative platform combines premium human-made content with AI tools to help creators move from idea to impact without starting from scratch. As businesses and creators adopt AI, many are looking for ways to move faster without sacrificing authenticity, creative control, or commercial confidence. Shutterstock's platform is designed to address that challenge. Starting with Shutterstock's global library of authentic, licensable content created by real contributors around the world, users can discover, adapt, and refine content with embedded AI capabilities, while contributors continue to earn royalties when their content is edited with AI tools and licensed through the platform. With access to leading generative AI models, customers can transform existing content into commercially ready work, helping turn near-perfect assets into exactly what a project requires.

"In an AI-powered world, real-world customers are solving creative problems," said Paul Teall, Vice President, Marketplace Strategy at Shutterstock. "Our updated platform lets creatives get inspired by premium human-made content and then use integrated AI tools to adapt, refine, and personalize it for their needs. Instead of moving between separate tools and workflows, creators can work more seamlessly from inspiration to final output."

Shutterstock's AI-powered creative platform brings together:

Premium human-made content blended with powerful, inline AI editing capabilities AI-powered image and video generation that helps transform existing assets and ideas into new creative possibilities Proprietary Model Match technology that automatically connects prompts with the AI model best suited to the creative task, taking the guesswork out of model selection Conversational AI search and discovery that helps users find the right content through natural language Deeper integrations with AI-native workflows, including a Shutterstock app available in ChatGPT Workflow features including content reference and first frame reference that help users build from existing assets, maintain visual consistency, and guide AI outputs, as well as prompt enhancement for richer queries Human support teams that provide creative guidance and workflow expertise Commercial-ready licensing and indemnification backed by human review for AI-generated content Shutterstock's platform is built around three core strengths and a simple philosophy: built for real people doing real-world creative work and elevated by AI.

Built for Real, Elevated by AI
The best AI-powered work starts with something real. Shutterstock's platform is built on authentic, premium content created by real contributors around the world, then elevated through AI-powered tools and workflows.

Intuitively Integrated
Search, generate, edit, and refine content within one seamless workflow designed to reduce friction and simplify modern creative production. Tools that understand nuance, intent, and creative context help users create the way they think at every stage of the creative process.

Commercial-Ready
High-quality, licensable assets and AI-assisted outputs built for real campaigns, real brands, and real-world deployment.

"Businesses do not need disconnected AI tools. They need creative systems that work together," said Teall. "By combining trusted content, leading AI models, and human expertise in one platform, Shutterstock helps customers create faster, scale confidently, and produce work that is ready for the real world."

As organizations increasingly integrate AI into creative and marketing workflows, Shutterstock is uniquely positioned to bridge the gap between human creativity and machine intelligence by combining trusted content, intuitive AI, and commercial confidence within one connected ecosystem.

Today's launch reflects Shutterstock's broader evolution into a full-spectrum AI company serving both creative professionals and enterprise AI builders. While Shutterstock's AI-powered creative platform helps marketers, brands, and creators produce commercially ready work faster, Shutterstock's Data Licensing & AI Services business powers the underlying AI ecosystem itself through high-quality training data, model evaluation, and human-in-the-loop expertise for leading technology companies and model developers.

Shutterstock Data Licensing & AI Services 
Shutterstock is an end-to-end AI model training partner that unifies data licensing, services, and long-term collaboration under a single provider—reducing operational complexity and helping teams bring higher-performing AI systems to market faster and with greater confidence. Shutterstock combines access to one of the world's largest rights-cleared multimodal datasets with advanced data curation and custom training datasets to power high-performing, deployment-ready generative models. This licensable training data includes high-quality labeled and continuously updated multimodal content with clear data provenance to support AI compliance. Shutterstock leverages ML-assisted evaluation tools to provide model training, fine-tuning, alignment, evaluation, and retraining. Through human-in-the-loop workflows, expert creative feedback, and structured preference data, Shutterstock delivers aesthetic preference signals, benchmarking, and regression testing to drive continuous model improvement.

Learn more and start the conversation at shutterstock.com/data-licensing.

About Shutterstock
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

SOURCE Shutterstock, Inc.

AdviceOne Advisory Services LLC acquired a new stake in shares of Latham Group, Inc. (NASDAQ: SWIM) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 130,186 shares of the company's stock, valued at approximately $991,000. Latham Group comprises approximately 0.7% of

Year-Over-Year Sales Growth Achieved Across All Three Product Lines; Positive Sales Trends Continued in April Sand State Strategy on Track with Double-Digit Sales Growth in Florida Gross Margin Expanded by 220 Basis Points Benefiting from Volume Leverage, Lean Manufacturing and Value Engineering EfficienciesReaffirms Full Year Guidance for 9.0% Net Sales Growth and 12.7% Adjusted EBITDA Growth at the Midpoints First Quarter 2026 Financial Highlights:

Net sales of $117.3 million, up 5.3%Net loss of $8.5 million / Net loss per diluted share of $0.07Adjusted EBITDA of $12.2 million / 10.4% of net sales
LATHAM, N.Y., May 05, 2026 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced financial results for the first quarter 2026 ended March 28, 2026.

Commenting on the results, Sean Gadd, President and CEO, said, “We continue to execute effectively on our strategic priorities and achieved sales growth in each of our product lines in the first quarter. Sales growth was led by gains in autocovers and liners and the benefits of the Freedom Pools acquisition, while adverse weather conditions in North America kept organic in-ground pool sales steady year-over-year. Adjusted EBITDA growth outpaced sales growth by a considerable margin, demonstrating Latham’s substantial operating leverage and cost discipline, which more than offset the impact of higher investments in growth initiatives.

“We continued to gain traction in Florida – our initial Sand State target market – where Latham’s fiberglass pool sales increased at a double-digit rate in the first quarter. This growth reflected the new dealer sign-ups we executed in 2025 and increased brand and product awareness driven by our advertising and marketing campaign. To accelerate our growth in Florida and the other Sand State markets, we are moving forward with several new initiatives to capture consumer demand and provide additional value to our dealers. They include the build out of our commercial organization, a new market development framework around segmentation by neighborhood, and the addition of sales resources in the field to keep Latham engaged with the consumer throughout the pool purchasing process while linking customers to our dealer network. These initiatives will be supported by a targeted marketing campaign aimed at educating consumers on the benefits of fiberglass and pool ownership.”

First Quarter 2026 Results Compared to the Prior-Year Period

Net sales increased 5.3% to $117.3 million. The increase in net sales during the quarter was primarily the result of organic growth in covers and liners, the acquisition of Freedom Pools, sales growth in Florida, and the full year benefit of the 2025 price increase partially offset by adverse weather conditions across North America.

  First Quarter Net Sales by Product Line
(in thousands)   Fiscal Quarter Ended March 28, 2026March 29, 2025In-Ground Swimming Pools$59,731$57,734Covers 33,498 31,611Liners 24,086 22,075Total$117,315$111,420
Gross profit increased by 13.0% to $37.2 million. Gross margin expanded by 220 basis points to 31.7%. The increase reflected volume leverage and the benefits of lean manufacturing and value engineering initiatives.

Selling, general, and administrative expenses (“SG&A”) increased by 19.5% to $36.6 million. The increase in SG&A was primarily due to acquisition and integration related costs, increased sales and marketing investment to accelerate the fiberglass conversion strategy in the Sand State markets, and our digital transformation efforts.

Net loss was $8.5 million, or $0.07 per diluted share, compared to $6.0 million, or $0.05 per diluted share, in the prior-year period. Net loss margin was 7.3% compared to 5.4%.

Adjusted EBITDA increased by 9.2% to $12.2 million, and adjusted EBITDA margin expanded by 40 basis points to 10.4%.

Balance Sheet, Cash Flow, and Liquidity

Latham ended the first quarter of 2026 with cash of $27.5 million. Net cash used in operating activities was $47.7 million, representing seasonal working capital requirements in line with the Company’s expectations.

Total debt was $311.2 million at the end of the first quarter, and the net debt leverage ratio was 2.8.

Capital expenditures totaled $22.5 million in the first quarter of 2026, which includes $4.9 million related to ongoing projects and $17.6 million related to the purchase of four key fiberglass production sites – this consisted of a $5.6 million payment and a $12.0 million deposit made in 2025 and settled in the first quarter of 2026. This compares to $3.5 million in capital expenditures in the first quarter of 2025. In addition, the Company completed the purchase of Freedom Pools for a purchase price of $17.0 million.

Summary and Outlook

“Latham continues to be distinguished in the marketplace by our consistent outperformance compared to new U.S. pool starts. This track record is a result of our category leadership position, the quality of our products, our excellent execution, and the commitment of our people – all of which contribute to both our performance and our resilience.

“We are pleased to reaffirm our guidance, which is contained in the table below and represents year-over-year sales growth of 9.0% and adjusted EBITDA growth of 12.7%, at the midpoints, within a U.S. in-ground pool market that is expected to be approximately flat with 2025 levels,” Mr. Gadd concluded.

   FY 2026 Guidance Ranges    LowHighNet Sales$580 million$610 millionAdjusted EBITDA1$105 million$120 millionCapital Expenditures$42 million$48 million 1)   A reconciliation of Latham’s projected Adjusted EBITDA to net income (loss) for 2026 is not available without unreasonable effort due to uncertainty related to our future income tax expense (benefit).

Conference Call Details

Latham will hold a conference call to discuss its first quarter 2026 financial results today, May 5, 2026, at 4:30 PM Eastern Time.

Participants are encouraged to pre-register for the conference call by visiting https://dpregister.com/sreg/10207783/103af06e389. Callers who pre-register will be sent a confirmation e-mail including a conference passcode and unique PIN to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. To ensure you are connected for the full call, please register at least 10 minutes before the start of the call.

A live audio webcast of the conference call, along with related presentation materials, will be available online at https://ir.lathampool.com/ under “Events & Presentations”.

Those without internet access or unable to pre-register may dial in by calling:

PARTICIPANT DIAL IN (TOLL FREE): 1-833-953-2435
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-317-5764

An archived webcast will be available approximately two hours after the conclusion of the call, through May 5, 2027, on the Company’s investor relations website under “Events & Presentations”. A transcript of the event will also be available on the Company’s investor relations website approximately three business days after the call.

About Latham Group, Inc.

Latham Group, Inc., headquartered in Latham, NY, is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Latham has a coast-to-coast operations platform consisting of approximately 1,900 employees on average across around 35 locations.

Non-GAAP Financial Measures

We track our non-GAAP financial measures to monitor and manage our underlying financial performance. This earnings release includes the presentation of Adjusted EBITDA, Adjusted EBITDA margin, net debt and net debt leverage ratio which are non-GAAP financial measures that exclude the impact of certain costs, losses, and gains that are required to be included under U.S. GAAP. Although we believe these measures are useful to investors and analysts for the same reasons it is useful to management, as discussed below, these measures are neither a substitute for, nor superior to, GAAP financial measures or disclosures. Other companies may calculate similarly-titled non-GAAP measures differently, limiting their usefulness as comparative measures. In addition, our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by any such adjustments. We have reconciled our historic non-GAAP financial measures to the applicable most comparable GAAP measures in this earnings release.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA and Adjusted EBITDA margin are key metrics used by management and our board of directors to assess our financial performance. Adjusted EBITDA and Adjusted EBITDA margin are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures. We use Adjusted EBITDA and Adjusted EBITDA margin to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to utilize as a significant performance metric in our incentive compensation plans, and to compare our performance against that of other companies using similar measures. We have presented Adjusted EBITDA and Adjusted EBITDA margin solely as supplemental disclosures because we believe they allow for a more complete analysis of results of operations and assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance, such as (i) depreciation and amortization, (ii) interest expense, net, (iii) income tax expense (benefit), (iv) (gain) loss on sale and disposal of property and equipment, (v) restructuring charges, (vi) stock-based compensation expense, (vii) unrealized (gains) losses on foreign currency transactions, (viii) strategic initiative costs, (ix) acquisition and integration related costs and (x) other.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures and should not be considered as alternatives to net income (loss) as a measure of financial performance or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. We encourage you to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA and Adjusted EBITDA margin, you should be mindful that in the future we may incur expenses that are the same as or similar to some of the adjustments in this earnings release. There can be no assurance that we will not modify the presentation of Adjusted EBITDA and Adjusted EBITDA margin in the future, and any such modification may be material. In addition, other companies, including companies in our industry, may not calculate Adjusted EBITDA and Adjusted EBITDA margin at all or may calculate Adjusted EBITDA and Adjusted EBITDA margin differently and accordingly, are not necessarily comparable to similarly entitled measures of other companies, which reduces the usefulness of Adjusted EBITDA and Adjusted EBITDA margin as tools for comparison.

Adjusted EBITDA and Adjusted EBITDA margin have their limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA and Adjusted EBITDA margin:

do not reflect every expenditure, future requirements for capital expenditures or contractual commitments;do not reflect changes in our working capital needs;do not reflect the interest expense, net, or the amounts necessary to service interest or principal payments, on our outstanding debt;do not reflect income tax (benefit) expense, and because the payment of taxes is part of our operations, tax expense is a necessary element of our costs and ability to operate;do not reflect non-cash stock-based compensation, which will remain a key element of our overall compensation package; anddo not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations. Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA and Adjusted EBITDA margin, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any costs of such replacements.

Net Debt and Net Debt Leverage Ratio

Net Debt and Net Debt Leverage Ratio are non-GAAP financial measures used in monitoring and evaluating our overall liquidity, financial flexibility, and leverage. Other companies may calculate similarly titled non-GAAP measures differently, limiting their usefulness as comparative measures. We define Net Debt as total debt less cash and cash equivalents. We define the Net Debt Leverage Ratio as Net Debt divided by last twelve months (“LTM”) of Adjusted EBITDA. We believe this measure is an important indicator of our ability to service our long-term debt obligations. There are material limitations to using Net Debt Leverage Ratio as we may not always be able to use cash to repay debt on a dollar-for-dollar basis.

Forward-Looking Statements

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release other than statements of historical fact may constitute forward-looking statements, including statements regarding our future operating results and financial position, our business strategy and plans, business and market trends, our objectives for future operations, macroeconomic and geopolitical conditions, acquisitions and related benefits, the implementation of our cost reduction plans and expected benefits, and the sufficiency of our cash balances, working capital and cash generated from operating, investing, and financing activities for our future liquidity and capital resource needs. These statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including: potential breaches to our technological infrastructure and information systems; geopolitical instability and market instability caused by such instability, including as a result of the conflict in the Middle East involving Iran, the U.S., Israel and Lebanon; inflationary impacts, including on consumer demand for our products; the impact of trade policies on our global supply chain, the import or export of goods and their related costs, as well as on consumer confidence; natural disasters, public health issues or other catastrophic events; adverse weather conditions impacting our sales, which can lead to significant variability of sales in reporting periods; interruption of our production capability at our manufacturing facilities from accident, fire, calamity and other causes; unfavorable economic conditions and related impact on consumer spending and demand for our products; our ability to keep pace with technological developments and standards, such as generative artificial intelligence; compliance with government regulations; declining home ownership affecting demand for our products; our ability to globally source raw materials and components for manufacturing our products; competitive risks; product quality issues, warranty claims or safety concerns such as those due to the failure of builders to follow our product installation instructions and specifications; our ability and the cost to obtain transportation services; the protection of our intellectual property and defense of third-party infringement claims; international business risks; realizing anticipated benefits from acquisitions; possible asset impairments; and our ability to secure financing and our substantial indebtedness; and other factors set forth under “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and subsequent reports we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time that may impair our business, financial condition, results of operations and cash flows.

Although we believe that the expectations reflected in the forward-looking statements are reasonable and our expectations based on third-party information and projections are from sources that management believes to be reputable, we cannot guarantee future results, levels of activities, performance or achievements. These forward-looking statements reflect our views with respect to future events as of the date hereof or the date specified herein, and we have based these forward-looking statements on our current expectations and projections about future events and trends. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof. We anticipate that subsequent events and developments will cause our views to change. Our forward-looking statements further do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake.

Contact:
Lynn Morgen
Casey Kotary
ADVISIRY Partners
[email protected]
212-750-5800

  Latham Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)     Fiscal Quarter Ended   March 28, 2026 March 29, 2025 Net sales $117,315  $111,420  Cost of sales  80,158   78,539  Gross profit  37,157   32,881  Selling, general, and administrative expense  36,589   30,620  Amortization  7,169   7,192  Loss from operations  (6,601)  (4,931) Other expense:       Interest expense, net  4,756   6,371  Other expense (income), net  818   (308) Total other expense, net  5,574   6,063  Earnings from equity method investment  835   953  Loss before income taxes  (11,340)  (10,041) Income tax benefit  (2,806)  (4,079) Net loss $(8,534) $(5,962) Net loss per share attributable to common stockholders:       Basic $(0.07) $(0.05) Diluted $(0.07) $(0.05) Weighted-average common shares outstanding – basic and diluted       Basic  116,894,080   115,885,111  Diluted  116,894,080   115,885,111        Latham Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)       March 28, December 31,  2026  2025 Assets      Current assets:      Cash $27,481  $71,043 Trade receivables, net  89,213   39,914 Inventories, net  87,609   74,926 Income tax receivable  15,203   12,178 Prepaid expenses and other current assets  10,367   20,943 Total current assets  229,873   219,004 Property and equipment, net  138,154   118,820 Equity method investment  27,317   26,482 Deferred tax assets  1,056   718 Operating lease right-of-use assets  29,621   30,723 Goodwill  161,144   155,189 Intangible assets, net  265,541   268,073 Other assets  3,699   4,214 Total assets $856,405  $823,223 Liabilities and Stockholders’ Equity      Current liabilities:      Accounts payable $29,874  $19,283 Revolving Credit Facility  31,000   — Current maturities of long-term debt  3,250   3,250 Income tax payable  619   — Current operating lease liabilities  6,792   7,630 Accrued expenses and other current liabilities  50,732   48,979 Total current liabilities  122,267   79,142 Long-term debt, net of discount, debt issuance costs, and current portion  276,983   276,591 Deferred income tax liabilities, net  34,269   34,269 Non-current operating lease liabilities  23,633   23,964 Other long-term liabilities  2,551   3,396 Total liabilities $459,703  $417,362 Commitments and contingencies      Stockholders’ equity:      Preferred stock, $0.0001 par value; 100,000,000 shares authorized as of both March 28, 2026 and December 31, 2025; no shares issued and outstanding as of both March 28, 2026 and December 31, 2025  —   — Common stock, $0.0001 par value; 900,000,000 shares authorized as of March 28, 2026 and December 31, 2025; 117,407,719 and 116,766,927 shares issued and outstanding, as of March 28, 2026 and December 31, 2025, respectively  12   12 Additional paid-in capital  472,145   473,423 Accumulated deficit  (72,226)  (63,692)Accumulated other comprehensive loss  (3,229)  (3,882)Total stockholders’ equity  396,702   405,861 Total liabilities and stockholders’ equity $856,405  $823,223     Latham Group, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)     Fiscal Quarter Ended  March 28, March 29,  2026  2025 Cash flows from operating activities:      Net loss $(8,534) $(5,962)Adjustments to reconcile net loss to net cash used in operating activities:      Depreciation and amortization  13,067   12,400 Gain on insurance proceeds received for capital      Unrealized foreign currency loss (gain)  848   (417)Amortization of deferred financing costs and debt discount  430   430 Non-cash lease expense  1,855   1,776 Change in fair value of interest rate swap  (841)  283 Stock-based compensation expense  1,104   1,971 Bad debt expense  815   875 Other non-cash, net  62   (63)Earnings from equity method investment  (835)  (953)Changes in operating assets and liabilities:      Trade receivables  (49,505)  (52,550)Inventories  (9,630)  (9,559)Prepaid expenses and other current assets  (836)  189 Income tax receivable  (3,025)  (4,624)Other assets  (120)  (10)Accounts payable  9,708   14,271 Accrued expenses and other current liabilities  (2,279)  (4,861)Other long-term liabilities  (4)  (78)Net cash used in operating activities  (47,720)  (46,882)Cash flows from investing activities:      Purchases of property and equipment  (10,500)  (3,452)Acquisition of business, net of cash acquired  (14,399)  (4,934)Net cash used in investing activities  (24,899)  (8,386)Cash flows from financing activities:      Proceeds from borrowings on revolving credit facility  31,000   25,000 Repayments of finance lease obligations  (216)  (201)Common stock withheld for taxes on restricted stock units  (2,382)  (2,306)Net cash provided by financing activities  28,402   22,493 Effect of exchange rate changes on cash  655   343 Net decrease in cash  (43,562)  (32,432)Cash at beginning of period  71,043   56,398 Cash at end of period $27,481  $23,966 Supplemental cash flow information:      Cash paid for interest $5,348  $6,266 Income taxes paid, net  (118)  344 Supplemental disclosure of non-cash investing and financing activities:      Purchases of property and equipment included in accounts payable and accrued expenses $698  $1,360 Right-of-use operating and finance lease assets obtained in exchange for lease liabilities  7,785   994 Purchase of property and equipment through settlement of deposit  12,000   —    Latham Group, Inc.
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
(Non-GAAP Reconciliation)
(in thousands)    Fiscal Quarter Ended  March 28, 2026 March 29, 2025        Net loss$(8,534) $(5,962) Depreciation and amortization 13,067   12,400  Interest expense, net 4,756   6,371  Income tax benefit (2,806)  (4,079) Gain on sale and disposal of property and equipment —   (69) Restructuring charges(a) —   15  Stock-based compensation expense(b) 1,104   1,971  Unrealized losses (gains) on foreign currency transactions(c) 997   (417) Strategic initiative costs(d) 450   644  Acquisition and integration related costs(e) 3,126   267  Other(f) —   (2) Adjusted EBITDA$12,160  $11,139  Net sales$117,315  $111,420  Net loss margin (7.3)% (5.4)%Adjusted EBITDA margin 10.4 % 10.0 % (a)  Represents costs that include severance and other expenses for our executive management changes.
(b)  Represents non-cash stock-based compensation expense.
(c)  Represents unrealized foreign currency transaction losses (gains) associated with our international subsidiaries.
(d)  Represents fees paid to external consultants and other expenses for our strategic initiatives.
(e)  Represents acquisition and integration costs, as well as other costs related to potential transactions.
(f)  Other costs consist of other discrete items as determined by management, primarily including: (i) fees paid to external advisors for various matters and (ii) other items.

 Latham Group, Inc.
Net Debt Leverage Ratio
(Non-GAAP Reconciliation)
(in thousands)    March 28, 2026 Total Debt $311,233     Less:   Cash  (27,481)Net Debt  283,752     LTM Adjusted EBITDA(1)  100,852 Net Debt Leverage Ratio  2.81x      (1)  LTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent 12-month period.

Latham Group, Inc. (SWIM) Q1 2026 Earnings Call Transcript

Latham Group is a compelling value play in the in-ground residential pool market, despite recent share price weakness. SWIM boasts a dominant 50% share in the premium fiberglass pool segment, with recurring replacement revenue streams supporting resilience. Recent acquisition of Freedom Pools and organic growth in key markets, especially Florida, are driving revenue and EBITDA expansion.