Ready Capital Corp (RC)
🔔 Watch stock
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We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
The red rating is not about the fallen share price or the low valuation. It rests on two documented findings about the business itself. First: as of March 31, 2026, 29.3 percent of loans on the books were on non-accrual status — almost every third dollar of the loan book no longer produces interest income, and in bridge loans more than every second dollar. Second: net interest income before provisions turned negative at minus $15.1 million in the first quarter of 2026; the interest Ready Capital pays on its own funding exceeds the interest its loan book brings in. Both are operating findings taken from the quarterly report, not price arguments. Against them stand a solid liquidity position, no going-concern language and a platform whose licenses have real value. In that mix the more cautious rating applies. The decision is yours.
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Our in-house stock scanner puts Ready Capital 7th in the price-to-free-cash-flow ranking of the U.S. selection on July 26, 2026, at a ratio of 0.3. Add a share price at roughly one-fifth of reported book value. The filings with the U.S. securities regulator, the SEC, explain both with the same number: as of March 31, 2026, 29.3 percent of loans on the books were on non-accrual status, meaning no interest income is recognized on them. The cash flow that makes the ratio look cheap comes from selling the loan book, not from lending: net interest income turned negative at minus $15.1 million in the first quarter of 2026. Some discounts are not an offer. They are a description.
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Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at RC since then.
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Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 1.40 $ — 0% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
NeutralGewerblicher Immobilienfinanzierer in REIT-Form ohne KI-Umsatz und ohne operativ belegten KI-Einsatz — künstliche Intelligenz taucht in den sechs ausgewerteten Filings ausschließlich im Geschäftsbericht 2025 auf, dort als allgemeine Risikofaktor-Formel („may use or rely on AI-based tools“) und als Hinweis auf KI-gestützte Cyberangriffe; in keinem der vier Quartalsberichte kommt der Begriff vor.
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-K 2026-03-02 · 10-K 2025-03-03 · 10-Q 2026-05-08 · 10-Q 2025-11-07 · 10-Q 2025-08-08 · 10-Q 2025-05-09
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 21.4% above the current price.
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Next Reporting Date
- Expected Earnings per Share
- -0.25 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -1.87 | -3,400.90 | 58 | -3.30 | -542.80 | -27 | -27 |
| 2025: Q1 | 0.47 | – | -74 | – | – | 19 | 19 |
| 2025: Q2 | -0.33 | – | -12 | – | – | -61 | -61 |
| 2025: Q3 | -0.11 | – | 19 | -69.80 | -100.70 | 435 | 435 |
| 2025: Q4 | -1.42 | – | 124 | 112.50 | -189.20 | -90 | -90 |
| 2026: Q1 | -1.20 | -353.80 | 45 | – | -447.00 | 590 | 590 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
The infrastructure is real and not easily replicated: Ready Capital holds one of only 16 non-bank Small Business Lending Company licenses under the SBA 7(a) program and has preferred lender status; it also services Freddie Mac multifamily loans, runs a USDA business and owns the Madison One and Funding Circle USA platforms acquired in 2024. The small business segment posted $22.8 million of interest income against $16.2 million of interest expense in the first quarter of 2026 — a positive spread.
As of March 31, 2026, $1.221 billion or 29.3 percent of loans on the books were on non-accrual status, up from 25.5 percent on December 31, 2025. In bridge loans it was more than every second dollar ($1.066 billion of $1.886 billion). Only 79.8 percent of loans were current; 14.9 percent were 60 days or more past due. The allowance attributable to non-accrual loans was $146.7 million (10-Q as of March 31, 2026, Note 6).
The first quarter of 2026 showed $81.7 million of interest income against $96.8 million of interest expense — net interest income before provisions of minus $15.1 million, after plus $14.5 million a year earlier. In the commercial real estate segment interest income fell to $58.9 million against $80.7 million of interest expense. The loan book currently does not cover its own funding cost.
Book value per common share fell from $10.61 (March 31, 2025) to $7.43 (March 31, 2026), a decline of 30 percent in four quarters. Distributable earnings, the measure the company uses to set its dividend, came in at minus $159.8 million (minus $1.00 per share) in the first quarter of 2026 after minus $246.0 million for full-year 2025. The quarterly dividend fell accordingly from $0.250 to $0.010 per share.
As of March 31, 2026 the company reports $200.0 million of unrestricted cash and $700.0 million of unencumbered assets against roughly $450.0 million of debt maturing in 2026, and expects a further $450 million of net liquidity from maturities and asset resolutions within twelve months. There is no going-concern language, no covenant breach and no listing deficiency. The price of that comfort is the de-levering itself, which the company says may weigh on book value.
Rank 7 in our in-house price-to-free-cash-flow ranking of the U.S. selection at a ratio of 0.3 (as of July 26, 2026, 544 hits, 25 listed). The underlying free cash flow of roughly $966 million over four quarters is arithmetically correct but comes from selling loans held for resale: $596.0 million in the first quarter of 2026 alone against $590.2 million of operating cash flow. Two of the four quarters were negative on an operating basis. The Altman Z-score carries no meaning at a lender and is not used here.
Ready Capital is not a cheap stock attached to a good business. It is a shrinking lender whose shrinkage makes one ratio look cheap. The roughly $966 million of free cash flow over four quarters that lifts the stock to rank 7 in the price-to-free-cash-flow ranking is the proceeds from selling its own loan book — $596.0 million of it in the first quarter of 2026 alone. The platform, with its SBA license, Freddie Mac servicing and 442 employees, is real, and the small business segment still earns its spread. Against that stand 29.3 percent of loans on non-accrual, net interest income of minus $15.1 million, a book value down 30 percent in four quarters to $7.43 a share, and a dividend cut from 25 cents to 1 cent a quarter. Not investment advice.
- Hook and source: rank 7 in our in-house price-to-free-cash-flow ranking of the U.S. selection, measured live on July 26, 2026 (544 hits in total, 25 listed). The scanner lists are recomputed daily, so the placement is a snapshot.
- Why free cash flow reads differently at a lender: loans held for resale run through the operating line of the cash flow statement as inventory. Selling or collecting them produces operating cash inflow without any earnings being generated. First quarter of 2026: $596.0 million from that line against $590.2 million of operating cash flow and a net loss of $200.1 million. Nine months of 2025: $556.2 million against $466.7 million of operating cash flow.
- Possible confusion: Ready Capital has four securities listed on the NYSE (RC, RC PRC, RC PRE, RCD). The Form 25 delisting notices of February 17, 2026 and April 22, 2026 relate to notes — the 6.20 percent senior notes due 2026 were redeemed at par on April 22, 2026 per the 8-K of March 24, 2026. The common stock remains listed.
- The Altman Z-score is deliberately not used for this stock: the formula relies on working capital, revenue and operating income of an industrial company. At a lender, book value per share, the share of loans on non-accrual, loan loss reserves and distributable earnings are the load-bearing measures.
- Price and analyst figures are as of July 26, 2026 (closing price of July 24, 2026). All balance sheet, income and credit figures carry the as-of date of their filing.
About the Company
Ready Capital Corporation operates as a real estate finance company in the United States. The company operates through two segments: LMM Commercial Real Estate and Small Business Lending.
| Employees | 400 |
|---|---|
| Headquarters | New York, NY |
| Website | readycapital.com |
| IPO Date | 8. Feb 2013 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Andrew Ahlborn CPA | CFO & Secretary | 1985 |
| Thomas Edward Capasse | Chairman, CEO & Chief Investment Officer | 1957 |
| Jack Jay Ross CPA | President & Director | 1957 |
| Matthew Cohen | Head of Operations & CTO | – |
| Sue Ianieri | Head of Marketing | – |
| Thomas Warren, Jr. | Head of Human Resources | – |
| Alex Ovalle | MD & Head of Construction Lending and Syndications | – |
| Garrett Thelander | Managing Director & Head of Workouts | – |
| John Sokolovic | Managing Director & CEO of Affordable Multifamily | 1963 |
| Jacqueline Schorr | Chief Financial Officer of RCL | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.