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Walker & Dunlop Reports Fourth Quarter 2025 Financial Results

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adjusted EBITDA financial
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP financial measure financial
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
basis points financial
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
mortgage servicing rights financial
Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.
assets under management financial
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

FOURTH QUARTER 2025 HIGHLIGHTS

  • Total transaction volume of $18.3 billion, up 36% from Q4’24
  • Total revenues of $340.0 million, flat from Q4’24
  • Net loss of $13.9 million and diluted loss per share of $0.41, both down 131% from Q4’24
  • Adjusted EBITDA(1) of $38.8 million, down 59% from Q4’24
  • Adjusted core EPS(2) of $0.28, down 79% from Q4’24
  • Servicing portfolio of $144.0 billion as of December 31, 2025, up 6% from December 31, 2024

FULL-YEAR 2025 HIGHLIGHTS

  • Total transaction volume of $54.8 billion, up 37% from 2024
  • Total revenues of $1.2 billion, up 9% from 2024
  • Net income of $56.2 million and diluted earnings per share of $1.64, down 48% and 49%, respectively, from 2024
  • Adjusted EBITDA(1) of $262.6 million, down 20% from 2024
  • Adjusted core EPS(2) of $3.50, down 30% from 2024

BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported fourth quarter results that reflect significant improvement in its core Capital Markets business, which delivered a 36% increase in total transaction volume to $18.3 billion year over year, and generated fourth quarter revenues of $340 million. The Company reported a diluted loss per share of $0.41 in the fourth quarter of 2025. Adjusted EBITDA decreased to $38.8 million, and adjusted core EPS also declined to $0.28. Included in the Company’s reported results this quarter are $66.2 million of expenses associated primarily with (i) impairment charges and other losses related to underperforming assets the Company plans to sell in 2026, and (ii) operating costs and losses resulting from indemnified and repurchased loans. The Company ended the year with $299 million of cash and cash equivalents, as the majority of the impairment charges and other losses taken in the fourth quarter were non-cash. The recurring cash revenues driven by the Company’s $144 billion loan servicing portfolio and strength of the balance sheet led the Company’s Board of Directors to declare a dividend of $0.68 per share for the first quarter of 2026, a 1.5% increase over the 2025 quarterly dividend and a 172% increase since the dividend was initiated in 2018.

“We closed 2025 with strong momentum across our business after growing total transaction volume each quarter throughout the year from $7 billion in Q1’25 to $18 billion in Q4’25, up 161%” commented Walker & Dunlop Chairman and CEO Willy Walker. “As the commercial real estate transaction market continues to improve, our people and our brand are winning, reflected in our growing market share, and strong league table rankings. We finished the year as the #1 Fannie Mae DUS lender, #3 Freddie Mac Optigo lender, the second-largest combined GSE loan originator, and the fourth-largest multifamily property sales broker in the United States.”

Mr. Walker continued, “Our fourth quarter results were impacted by loan repurchase expenses and impairment charges related to our real estate owned portfolio. As we move forward from these issues, we feel very well positioned for growth in 2026 and beyond. With a $144 billion servicing portfolio generating durable recurring revenue, a robust Capital Markets pipeline building early in the year, and an improving macroeconomic backdrop for commercial real estate, we are focused on generating top and bottom-line growth in 2026 and beyond. Our mission is to become the very best commercial real estate capital markets company in the world, and that journey begins now.”

____________________

(1)

Adjusted EBITDA is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of adjusted EBITDA to net income, refer to the sections of this press release below titled “Non-GAAP Financial Measures,” “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP by Segment.”

(2)

Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to diluted EPS, refer to the sections of this press release below titled “Non-GAAP Financial Measures” and “Adjusted Core EPS Reconciliation.”

CONSOLIDATED FOURTH QUARTER 2025
OPERATING RESULTS

TRANSACTION VOLUMES

(in thousands)

 

Q4 2025

 

Q4 2024

 

$ Variance

 

% Variance

Fannie Mae

 

$

2,785,231

 

$

3,225,633

 

$

(440,402

)

 

(14

)%

Freddie Mac

 

 

2,023,592

 

 

 

1,553,495

 

 

 

470,097

 

 

30

 

Ginnie Mae - HUD

 

 

153,748

 

 

 

116,437

 

 

 

37,311

 

 

32

 

Brokered (1)

 

 

8,675,937

 

 

 

4,893,643

 

 

 

3,782,294

 

 

77

 

Principal Lending and Investing (2)

 

 

167,700

 

 

 

207,000

 

 

 

(39,300

)

 

(19

)

Debt financing volume

 

$

13,806,208

 

 

$

9,996,208

 

 

$

3,810,000

 

 

38

%

Property sales volume

 

 

4,524,142

 

 

 

3,450,614

 

 

 

1,073,528

 

 

31

 

Total transaction volume

 

$

18,330,350

 

 

$

13,446,822

 

 

$

4,883,528

 

 

36

%

(1)

Brokered transactions for life insurance companies, commercial banks, and other capital sources.

(2)

Includes debt financing volumes from Walker & Dunlop Investment Partners, Inc. (“WDIP”) separate accounts.

DISCUSSION OF QUARTERLY RESULTS:

  • Total transaction volume grew 36% to $18.3 billion in the fourth quarter of 2025, reflecting Walker & Dunlop’s strong position within an increasingly active commercial real estate transactions market.
  • Fannie Mae and Freddie Mac (collectively, the “GSEs”) debt financing volumes remained relatively flat in the fourth quarter of 2025, increasing less than 1% compared to the fourth quarter of 2024. Walker & Dunlop’s 2025 GSE market share was 11.2%, up from 10.3% in 2024. Walker & Dunlop was ranked the largest Fannie Mae lender for the seventh consecutive year and the third-largest Freddie Mac lender for 2025, improving from fourth largest in 2024, and finishing the year as the second largest lender with the GSEs on a combined basis.
  • HUD debt financing volume increased 32% from the prior year as our team continues to expand and deliver strong results for our clients, ranking the Company as one of the top five HUD lenders in 2025.
  • The 77% increase in brokered debt financing volume during the fourth quarter of 2025 reflected a strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial mortgage-backed securities, and other private capital providers.
  • Property sales volume increased 31% in the fourth quarter of 2025. Walker & Dunlop maintains a strong position in the institutional multifamily property sales markets and finished the year as the fourth largest seller of multifamily assets greater than $25 million, up from the seventh largest in 2024, and representing over 10% of the institutional market. Macroeconomic fundamentals supporting the multifamily market, such as steady absorptions, a significant decline in new construction starts across most markets, and the widening affordability gap between renting versus owning, continue to drive a recovery in the multifamily acquisitions market.

MANAGED PORTFOLIO

(dollars in thousands, unless otherwise noted)

 

Q4 2025

 

Q4 2024

 

$ Variance

 

% Variance

Fannie Mae

 

$

72,708,372

 

$

68,196,744

 

$

4,511,628

 

7

%

Freddie Mac

 

 

42,595,441

 

 

 

39,185,091

 

 

 

3,410,350

 

 

9

 

Ginnie Mae - HUD

 

 

11,563,020

 

 

 

10,847,265

 

 

 

715,755

 

 

7

 

Brokered

 

 

17,111,320

 

 

 

17,057,912

 

 

 

53,408

 

 

-

 

Total Servicing Portfolio

 

$

143,978,153

 

 

$

135,287,012

 

 

$

8,691,141

 

 

6

%

Assets under management

 

 

18,631,100

 

 

 

18,423,463

 

 

 

207,637

 

 

1

 

Total Managed Portfolio

 

$

162,609,253

 

 

$

153,710,475

 

 

$

8,898,778

 

 

6

%

Average custodial escrow account deposits (in billions)

 

$

2.9

 

 

$

3.2

 

 

 

 

 

Weighted-average servicing fee rate at period end (basis points)

 

 

23.6

 

 

 

24.2

 

 

 

 

 

Weighted-average remaining servicing portfolio term at period end (years)

 

 

7.2

 

 

 

7.7

 

 

 

 

 

DISCUSSION OF QUARTERLY RESULTS:

  • Our servicing portfolio continues to grow, primarily as a result of additional Fannie Mae, Freddie Mac, and HUD (collectively, “Agency”) debt financing volumes over the past 12 months, partially offset by principal paydowns and loan payoffs.
  • During the fourth quarter of 2025, we added $4.6 billion of net loans to our servicing portfolio, and over the past 12 months, we added $8.7 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae and Freddie Mac loans.
  • $12.2 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years, which presents an opportunity for our GSE loan servicing portfolios to continue scaling as our Capital Markets team continues to deliver top end market share with the GSEs. The maturing loans, with a weighted-average servicing fee of 28 basis points, represent only 10% of the total Agency loans in our portfolio. Over the next five years, 53% of Agency loans will mature, providing an opportunity for us to recapitalize or sell these deals for our clients in the coming years.
  • The mortgage servicing rights (“MSRs”) associated with our servicing portfolio are reported at an amortized cost of $808 million as of December 31, 2025, while the fair value is estimated at $1.4 billion. The long-term contractual nature of the servicing rights, coupled with ancillary revenues earned from the portfolio, generate attractive upside and value above our cost basis.
  • Assets under management totaled $18.6 billion as of December 31, 2025, and consisted of $15.9 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, and $1.8 billion of debt funds and $0.9 billion of equity funds managed by our registered investment advisor, WDIP.

KEY PERFORMANCE METRICS

(in thousands, except per share amounts)

 

Q4 2025

 

 

Q4 2024

 

$ Variance

 

% Variance

Walker & Dunlop net income (loss)

 

$

(13,911

)

$

44,836

 

$

(58,747

)

 

(131

)%

Adjusted EBITDA

 

 

38,755

 

 

94,577

 

 

(55,822

)

 

(59

)

Diluted earnings (loss) per share

 

$

(0.41

)

$

1.32

 

$

(1.73

)

 

(131

)%

Adjusted core EPS

 

$

0.28

 

$

1.34

 

$

(1.06

)

 

(79

)%

Operating margin

 

 

(5

)%

 

15

%

 

 

 

 

Return on equity

 

 

(3

)

 

10

 

 

 

 

 

Key Expense Metrics (as a % of total revenues):

 

 

 

 

 

 

 

 

Personnel expense

 

 

55

%

 

50

%

 

 

 

 

Other operating expenses

 

 

10

 

 

11

 

 

 

 

 

DISCUSSION OF KEY PERFORMANCE METRICS:

  • The decreases in net income and diluted earnings per share were primarily the result of increases in indemnified and repurchased loan expenses and asset impairments and other expenses during the fourth quarter. In the first quarter of 2026, the Company made the strategic decision to sell a portfolio of underperforming assets that was acquired in 2021 from Alliant. Affordable assets have recovered more slowly than market rate assets, particularly in rent-controlled markets, and the carrying value of these assets was above the expected fair value, resulting in $26.1 million of asset impairment charges and accrued losses this quarter. In addition, we recognized a total of $35.5 million of indemnified and repurchased loan expenses and credit losses in the quarter in connection with all loans we have repurchased, indemnified or expect to indemnify.
  • Total revenues decreased less than 1% this quarter, while total expenses increased 24% as a result of the aforementioned asset impairment charges and other expenses, and indemnified and repurchased loan expenses, leading to the year-over-year decline in our operating margin and net income. The decrease in net income was the primary factor in the decrease in return on equity.
  • The increase in personnel expense as a percentage of total revenues was principally the result of an increase in variable compensation driven by the growth in loan origination and debt brokerage fees, net (“origination fees”) for the quarter.
  • The 59% decrease in adjusted EBITDA was largely related to the aforementioned increases in asset impairments and other expenses and the non-credit portion of indemnified and repurchased loan expenses, coupled with increased personnel expenses and a decrease in other revenues.
  • Adjusted core EPS decreased 79%, largely for the same reasons that adjusted EBITDA decreased.

KEY CREDIT METRICS

(in thousands)

 

Q4 2025

 

 

Q4 2024

 

$ Variance

 

% Variance

At-risk servicing portfolio (1)

 

$

68,649,960

 

$

63,365,672

 

$

5,284,288

 

8

%

Maximum exposure to at-risk portfolio (2)

 

 

14,052,667

 

 

12,893,593

 

 

1,159,074

 

 

9

 

Defaulted loans (3)

 

$

158,821

 

$

41,737

 

$

117,084

 

 

281

%

Key credit metrics (as a % of the at-risk portfolio):

 

 

 

 

 

 

 

 

Defaulted loans

 

 

0.23

%

 

0.07

%

 

 

 

 

Allowance for risk-sharing

 

 

0.05

 

 

0.04

 

 

 

 

 

Key credit metrics (as a % of maximum exposure):

 

 

 

 

 

 

 

 

Allowance for risk-sharing

 

 

0.27

%

 

0.22

%

 

 

 

 

____________________

(1)

At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing (“DUS”) loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.

For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.

(2)

Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.

(3)

Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac small balance pre-securitized loans (“SBL”) portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.

DISCUSSION OF KEY CREDIT METRICS:

  • Our at-risk servicing portfolio, which is comprised of loans subject to a defined risk-sharing formula, increased primarily due to the level of Fannie Mae loans added to the portfolio during the past 12 months. We take credit risk exclusively on loans backed by multifamily assets and have no credit exposure to losses in any other sector of the commercial real estate lending market.
  • As of December 31, 2025, 14 at-risk loans were in default with an aggregate unpaid principal balance (“UPB”) of $158.8 million, compared to ten loans with an aggregate UPB of $139.0 million as of September 30, 2025, and six at-risk loans in default with an aggregate UPB of $41.7 million as of December 31, 2024. The collateral-based reserves on defaulted loans were $12.6 million and $4.0 million as of December 31, 2025 and 2024, respectively. The approximately 3,200 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio.
  • We recorded a provision for credit losses of $3.1 million in the fourth quarter of 2025, primarily related to updated loss reserves for loans that previously defaulted.

INDEMNIFIED AND REPURCHASED LOANS

(in thousands)

 

 

 

 

 

12/31/2025

12/31/2024

Loans held for investment:

 

 

 

 

 

 

 

Indemnified loans

 

 

 

 

 

$

46,253

 

$

24,617

 

Repurchased loans

 

 

 

 

 

 

36,926

 

 

12,309

 

Allowance for loan losses

 

 

 

 

 

 

(5,410

)

 

(4,060

)

Loans held for investment, net

 

 

 

 

 

$

77,769

 

$

32,866

 

Other real estate owned

 

 

 

 

 

 

14,756

 

 

14,756

 

Other asset, net

 

 

 

 

 

 

24,124

 

 

25,524

 

Total balance included in Other assets

 

 

 

 

 

$

116,649

 

$

73,146

 

Other Liabilities:

 

 

 

 

 

 

 

Secured borrowings

 

 

 

 

 

$

83,402

 

$

59,441

 

Indemnification reserves(1)

 

 

 

 

 

 

23,920

 

 

5,527

 

Total balance included in Other liabilities

 

 

 

 

 

$

107,322

 

$

64,968

 

 

 

 

 

 

 

 

 

(in thousands)

 

Q4 2025

 

Q4 2024

 

YTD 2025

YTD 2024

Initial loan repurchase costs

 

$

7,996

 

 

$

7,041

 

$

8,318

 

$

7,041

 

Indemnified and repurchased loan operating costs

 

 

7,696

 

 

 

1,414

 

 

 

12,440

 

 

3,532

 

Expected principal losses on loan repurchase ("loan repurchase losses")

 

 

20,092

 

 

 

-

 

 

 

20,092

 

 

-

 

Indemnified and repurchased loan expenses

 

$

35,784

 

 

$

8,455

 

 

$

40,850

 

$

10,573

 

Provision (benefit) for loan losses - Indemnified Loans (2)

 

$

(300

)

 

$

3,760

 

 

$

199

 

$

11,860

 

Total impact of indemnified and repurchased loans

 

$

35,484

 

 

$

12,215

 

 

$

41,049

 

$

22,433

 

(1)

Refer to NOTE 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for more information about the nature of these reserves.

(2)

Included as a component of Provision (benefit) for credit losses in the Consolidated Statements of Income.

DISCUSSION OF INDEMNIFIED AND REPURCHASED LOANS:

  • During the past two years, we have repurchased, indemnified or expect to indemnify the GSEs for $221.6 million of loans, including $134.3 million of loans during the fourth quarter 2025.
  • In the first quarter of 2026, the Company completed an internal investigation into fraudulent borrower activity on certain loans sold to Freddie Mac. Stemming from that investigation, Freddie Mac has either asked us, or we expect they will ask us, to repurchase three portfolios of loans associated with three separate borrowers with a UPB of $134.3 million. We executed a forbearance and indemnification agreement for one of the portfolios of loans with a UPB of $50.7 million that delays the repurchase of the loans until the fourth quarter of 2027 and indemnifies Freddie Mac for any losses until the repurchase date. We are negotiating a forbearance and indemnification agreement with Freddie Mac for the second portfolio of loans with a UPB of $49.3 million, and we expect to negotiate a forbearance and indemnification agreement for the third portfolio of loans with a UPB of $34.3 million in the first half of 2026.
  • Prior to the fourth quarter, our approach to repurchased and indemnified loans was to operate them with the intent of repositioning them to recover a portion of the losses incurred. That approach no longer aligns with our long-term strategy, and we shifted our focus for the $87.3 million of assets repurchased or indemnified in 2024 to a near-term exit strategy.
  • We have repurchased loans with a UPB totaling $52.5 million over the last two years, and those loans are currently valued at $47.7 million. We are evaluating the most effective path to selling those assets. We have indemnification agreements in place for another $83.4 million of loans as of December 31, 2025, with collateral posted of $22.7 million, resulting in a maximum cash outlay over the next two years of $60.7 million. We expect to sell the loans or underlying assets associated with the loans prior to the expiration of the indemnification agreements in order to pay off the repurchase obligation.

FOURTH QUARTER 2025
FINANCIAL RESULTS BY SEGMENT

Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s income before taxes, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:

  • Interest expense on corporate debt, which pays a variable interest rate, remained flat at $16.0 million for the fourth quarter, primarily due to lower average interest rates during the fourth quarter of 2025 compared to the fourth quarter of 2024, largely offset by an increase in the balance outstanding from the refinancing of our debt in the first quarter of 2025.
  • Income tax expense decreased $16.4 million, or 150% year over year, primarily resulting from the 136% decrease in income before taxes during the fourth quarter of 2025 compared to 2024, partially offset by a one-time benefit in international taxes in 2024 with no comparable benefit in 2025.

FINANCIAL RESULTS - CAPITAL MARKETS

(in thousands)

 

Q4 2025

 

 

Q4 2024

 

 

$ Variance

 

% Variance

Loan origination and debt brokerage fees, net ("Origination fees")

 

$

101,739

 

$

91,732

 

$

10,007

 

 

11

%

Fair value of expected net cash flows from servicing, net of guaranty obligation ("MSR income")

 

 

50,060

 

 

55,920

 

 

(5,860

)

 

(10

)

Property sales broker fees

 

 

28,488

 

 

21,175

 

 

7,313

 

 

35

 

Net warehouse interest income (expense), loans held for sale ("LHFS")

 

 

(909

)

 

(2,458

)

 

1,549

 

 

(63

)

Other revenues

 

 

11,457

 

 

14,693

 

 

(3,236

)

 

(22

)

Total revenues

 

$

190,835

 

$

181,062

 

$

9,773

 

 

5

%

Personnel

 

$

141,266

 

$

122,601

 

$

18,665

 

 

15

%

Amortization and depreciation

 

 

1,146

 

 

1,139

 

 

7

 

 

1

 

Interest expense on corporate debt

 

 

4,316

 

 

4,451

 

 

(135

)

 

(3

)

Goodwill impairment

 

 

—

 

 

33,000

 

 

(33,000

)

 

(100

)

Fair value adjustments to contingent consideration liabilities

 

 

—

 

 

(38,125

)

 

38,125

 

 

(100

)

Asset impairments and other expenses

 

 

—

 

 

460

 

 

(460

)

 

(100

)

Other operating expenses

 

 

6,713

 

 

5,453

 

 

1,260

 

 

23

 

Total expenses

 

$

153,441

 

$

128,979

 

$

24,462

 

 

19

%

Income (loss) before taxes

 

$

37,394

 

$

52,083

 

$

(14,689

)

 

(28

)%

Income tax expense (benefit)

 

 

10,170

 

 

11,586

 

 

(1,416

)

 

(12

)

Net income before temporary equity holders

 

$

27,224

 

$

40,497

 

$

(13,273

)

 

(33

)%

Less: net income (loss) attributable to temporary equity holders

 

 

837

 

 

—

 

 

837

 

 

N/A

 

Walker & Dunlop net income (loss)

 

$

26,387

 

$

40,497

 

$

(14,110

)

 

(35

)%

Key revenue metrics (as a percentage of debt financing volume):

 

 

 

 

 

 

 

 

Origination fee rate(1)

 

 

0.75

%

 

0.94

%

 

 

 

 

Agency MSR rate(2)

 

 

1.01

 

 

1.14

 

 

 

 

 

Key performance metrics:

 

 

 

 

 

 

 

 

Operating margin

 

 

20

%

 

29

%

 

 

 

 

Adjusted EBITDA

 

$

(4,212

)

$

4,173

 

$

(8,385

)

 

(201

)%

Diluted earnings (loss) per share

 

$

0.77

 

$

1.20

 

$

(0.43

)

 

(36

)%

____________________

(1)

Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(2)

MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS:

The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.

  • Transaction volume growth of 36% this quarter was the principal driver of the 5% revenue growth for the segment. Revenues grew at a slower pace than transaction volumes principally due to (i) the increase in origination fees, driven primarily by debt brokerage and property sales transaction growth and several large transactions this quarter; and (ii) lower non-cash MSR income on our new Fannie Mae loan originations.
  • Debt brokerage and property sales transactions generally carry lower origination fee rates than Agency transactions. Large portfolio transactions also generate lower origination fee rates than smaller transactions, all else equal. The combination of these two factors this quarter drove the decline in the origination fee rate to 75 basis points this quarter, compared to 94 basis points in the year ago fourth quarter.
  • The decrease in MSR income was largely a result of the decrease in the Agency MSR rate. The Agency MSR rate decreased due to a decline in the weighted-average servicing fee (“WASF”) on Fannie Mae originations. Borrowers continue opting for shorter duration loans due to the shape of the yield curve and the desire to maintain optionality in the short term as interest rates continue normalizing.
  • Property sales broker fees increased year over year primarily due to the 31% increase in property sales volume, coupled with an increase in the property sales broker fee rate year over year.
  • Personnel expense increased in the fourth quarter of 2025 primarily due to an increase in commission costs primarily resulting from growth in origination and property sales broker fees, coupled with an increase in salaries and benefits resulting from an increase in average segment headcount.
  • The change in fair value adjustments to contingent consideration liabilities year over year was due to an adjustment taken in the fourth quarter of 2024 with no comparable adjustment in the current year quarter. The adjustment for the fourth quarter of 2024 was driven by the reduction of an expected payout of earnouts associated with a technology acquisition and one of our previous brokerage acquisitions, as both were no longer expected to achieve specific long-term performance hurdles because of the sharp declines in transaction volumes in 2023 and 2024.
  • The decrease in adjusted EBITDA was primarily due to the decrease in income before taxes, coupled with an increase in personnel expenses, partially offset by increases in origination fees and property sales broker fees.

FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT

(in thousands)

 

Q4 2025

 

Q4 2024

 

$ Variance

 

% Variance

Origination fees

 

$

1,875

 

$

2,210

 

$

(335

)

 

(15

)%

Servicing fees

 

 

86,339

 

 

82,961

 

 

3,378

 

 

4

 

Investment management fees

 

 

11,192

 

 

(3,110

)

 

14,302

 

 

(460

)

Net warehouse interest income, loans held for investment

 

 

—

 

 

272

 

 

(272

)

 

(100

)

Placement fees and other interest income

 

 

33,468

 

 

40,278

 

 

(6,810

)

 

(17

)

Other revenues

 

 

10,424

 

 

34,687

 

 

(24,263

)

 

(70

)

Total revenues

 

$

143,298

 

$

157,298

 

$

(14,000

)

 

(9

)%

Personnel

 

$

23,959

 

$

23,967

 

$

(8

)

 

(0

)%

Amortization and depreciation

 

 

58,269

 

 

65,155

 

 

(6,886

)

 

(11

)

Provision (benefit) for credit losses

 

 

3,105

 

 

4,529

 

 

(1,424

)

 

(31

)

Interest expense on corporate debt

 

 

10,200

 

 

9,986

 

 

214

 

 

2

 

Fair value adjustments to contingent consideration liabilities

 

 

(8,243

)

 

(10,830

)

 

2,587

 

 

(24

)

Indemnified and repurchased loan expenses

 

 

35,784

 

 

8,455

 

 

27,329

 

 

323

 

Asset impairments and other expenses

 

 

26,055

 

 

621

 

 

25,434

 

 

4,096

 

Other operating expenses

 

 

6,541

 

 

15,526

 

 

(8,985

)

 

(58

)

Total expenses

 

$

155,670

 

$

117,409

 

$

38,261

 

 

33

%

Income (loss) before taxes

 

$

(12,372

)

$

39,889

 

$

(52,261

)

 

(131

)%

Income tax expense (benefit)

 

 

(3,818

)

 

7,007

 

 

(10,825

)

 

(154

)

Net income before noncontrolling interests

 

$

(8,554

)

$

32,882

 

$

(41,436

)

 

(126

)%

Less: net income (loss) from noncontrolling interests

 

 

(36

)

 

(3,671

)

 

3,635

 

 

(99

)

Walker & Dunlop net income (loss)

 

$

(8,518

)

$

36,553

 

$

(45,071

)

 

(123

)%

Key performance metrics:

 

 

 

 

 

 

Operating margin

 

 

(9

)%

 

25

%

 

 

 

Adjusted EBITDA

 

$

79,792

 

$

123,768

 

$

(43,976

)

 

(36

)%

Diluted earnings (loss) per share

 

$

(0.26

)

$

1.07

 

$

(1.33

)

 

(124

)%

SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS:

The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services.

  • The $8.7 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
  • Investment management fees increased primarily due to an increase in investment management fees from our LIHTC operations, due to higher asset dispositions in the fourth quarter of 2025. Our LIHTC business recognizes asset management fees through cash flows from its underlying property level investments and the sale, or realization, of those property level investments.
  • The primary driver in the decrease in placement fees was a decline in the placement fee rates on escrow deposits as a result of the lower short-term interest rate environment in 2025 compared to 2024, combined with a decrease in the average replacement reserve escrow balance period over period.
  • During the fourth quarter of 2024, we entered into an agreement to sell a portfolio of affordable assets, including some of the assets, which we have operated since the acquisition of Alliant in 2021. The sale of one of the assets closed in the fourth quarter of 2024, generating a gain on sale of $26.5 million included in other revenues for this segment, explaining the year over year decline in that line item. The remaining assets included in that sale were expected to close in 2025 upon receipt of customary consents. Those consents are still in process, and that sale is now expected to close in the first half of 2026. However, intangible and other assets were written off in the fourth quarter of 2024 in connection with the agreement to sell the assets, explaining most of the decline in amortization and depreciation this year.
  • The change in fair value adjustments to contingent consideration liabilities was primarily due to an $8.2 million contingent consideration revaluation in the fourth quarter of 2025 compared to a $10.8 million revaluation in the fourth quarter of 2024, as the earnout targets for our LIHTC acquisition were not fully achieved.
  • The increase in indemnified and repurchased loan expenses was primarily driven by the repurchase requests as outlined in the Indemnified and Repurchased Loans section above.
  • The increase in asset impairments and other expenses was primarily driven by the asset impairments recorded in the fourth quarter of 2025 as outlined in the Key Performance Metrics section above.
  • Other operating expenses decreased largely due to a decrease in professional fees, driven by a decline in legal costs at one of our LIHTC subsidiaries.
  • The decrease in losses attributed to noncontrolling interests is the result of a change in the ownership of an entity producing losses in 2024. As part of a larger transaction with the noncontrolling interest holder, we regained full control of the entity at the end of 2024. The remaining noncontrolling interests in 2025 are immaterial.

FINANCIAL RESULTS - CORPORATE

(in thousands)

 

Q4 2025

 

Q4 2024

 

$ Variance

 

% Variance

Other interest income

 

$

3,617

 

 

$

3,684

 

 

$

(67

)

 

(2

)%

Other revenues

 

 

2,274

 

 

 

(593

)

 

 

2,867

 

 

(483

)

Total revenues

 

$

5,891

 

 

$

3,091

 

 

$

2,800

 

 

91

%

Personnel

 

$

21,888

 

 

$

22,610

 

 

$

(722

)

 

(3

)%

Amortization and depreciation

 

 

2,669

 

 

 

1,760

 

 

 

909

 

 

52

 

Interest expense on corporate debt

 

 

1,467

 

 

 

1,484

 

 

 

(17

)

 

(1

)

Asset impairments and other expenses

 

 

4,335

 

 

 

—

 

 

 

4,335

 

 

N/A

 

Other operating expenses

 

 

19,111

 

 

 

17,089

 

 

 

2,022

 

 

12

 

Total expenses

 

$

49,470

 

 

$

42,943

 

 

$

6,527

 

 

15

%

Income (loss) before taxes

 

$

(43,579

)

 

$

(39,852

)

 

$

(3,727

)

 

9

%

Income tax expense (benefit)

 

 

(11,799

)

 

 

(7,638

)

 

 

(4,161

)

 

54

 

Walker & Dunlop net income (loss)

 

$

(31,780

)

 

$

(32,214

)

 

$

434

 

 

(1

)%

Key performance metric:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

(36,825

)

 

$

(33,364

)

 

$

(3,461

)

 

10

%

Diluted earnings (loss) per share

 

$

(0.92

)

 

$

(0.95

)

 

$

0.03

 

 

(3

)%

CORPORATE – DISCUSSION OF QUARTERLY RESULTS:

The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups (“support functions”). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results.

  • Total revenues increased primarily due to an increase in other revenues driven by income from equity method investments resulting from improved performance.
  • Personnel expenses decreased 3% in the fourth quarter of 2025 due to a decrease in variable compensation related to company performance, partially offset by an increase in salaries and benefits.
  • The increase in asset impairments and other expenses was primarily due to increased legal and other professional fees related to the aforementioned borrower fraud investigation, as well as approximately $2.1 million of third party costs incurred in connection with an M&A opportunity that did not materialize.
  • Other operating expenses increased largely as a result of increased software costs and travel and entertainment expenses for an annual corporate event held in the fourth quarter 2025, with no comparable event in 2024.

FULL-YEAR 2025
CONSOLIDATED OPERATING RESULTS

Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s income before taxes, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:

  • Interest expense on corporate debt decreased $5.0 million, or 7% from the prior year, primarily due to lower average interest rates during 2025 compared to 2024, partially offset by an increase in the balance outstanding from the aforementioned refinancing of our debt.
  • Income tax expense decreased $8.5 million, or 28% year over year, primarily driven by a 40% decrease in income before taxes, partially offset by a decrease in excess tax benefits. In 2025, we recognized a $1.4 million shortfall in excess tax benefits compared to a $1.7 million benefit in 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the year.

FULL-YEAR OPERATING RESULTS AND KEY PERFORMANCE METRICS

(in thousands)

 

2025

 

2024

 

$ Variance

 

% Variance

Debt financing volume

 

$

41,483,695

 

$

30,154,666

 

$

11,329,029

 

 

38

%

Property sales volume

 

 

13,349,892

 

 

9,751,223

 

 

3,598,669

 

 

37

 

Total transaction volume

 

$

54,833,587

 

$

39,905,889

 

$

14,927,698

 

 

37

%

Total revenues

 

 

1,234,306

 

 

1,132,490

 

 

101,816

 

 

9

 

Total expenses

 

 

1,155,308

 

 

1,000,989

 

 

154,319

 

 

15

 

Walker & Dunlop net income (loss)

 

$

56,247

 

$

108,167

 

$

(51,920

)

 

(48

)%

Adjusted EBITDA

 

 

262,616

 

 

328,549

 

 

(65,933

)

 

(20

)

Diluted earnings (loss) per share

 

$

1.64

 

$

3.19

 

$

(1.55

)

 

(49

)%

Adjusted core EPS

 

$

3.50

 

$

4.97

 

$

(1.47

)

 

(30

)%

Operating margin

 

 

6

%

 

12

%

 

 

 

Return on equity

 

 

3

 

 

6

 

 

 

 

DISCUSSION OF FULL-YEAR RESULTS:

  • The increase in total transaction volume was primarily driven by a 39% increase in Agency debt financing volume, a 37% increase in brokered debt financing volume, and a 37% increase in property sales volume year over year.
  • The 9% growth in Walker & Dunlop total revenues in 2025 was outpaced by the 15% increase in total expenses, primarily due to increases in indemnified and repurchased loan expenses, asset impairments and other expenses, and increased variable compensation costs associated with the 37% increase in total transaction volume. The decline in net income and diluted EPS were principally attributable to a 40% decrease in income before taxes.
  • Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and other revenues, coupled with increased personnel costs and indemnified and repurchased loan expenses and a decrease in losses attributable to non-controlling interest holders. These changes were partially offset by increases in origination fees, property sales broker fees, and servicing fees.
  • Diluted EPS decreased 49% year over year, in tandem with the 48% decline in net income, compared to a decrease of 30% year over year for adjusted core EPS. Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased.

FULL-YEAR 2025
FINANCIAL RESULTS BY SEGMENT

FULL-YEAR FINANCIAL RESULTS - CAPITAL MARKETS

(in thousands)

 

2025

 

2024

 

$ Variance

 

% Variance

Total revenues

 

$

646,950

 

$

524,841

 

$

122,109

23

%

Total expenses

 

 

521,275

 

 

437,549

 

 

83,726

 

19

 

Walker & Dunlop net income (loss)

 

$

89,819

 

$

66,664

 

$

23,155

 

35

%

Key revenue metrics (as a percentage of debt financing volume):

 

 

 

 

 

Origination fee rate(1)

 

 

0.83

%

 

0.92

%

 

 

Agency MSR rate(2)

 

 

0.96

 

 

1.14

 

 

 

Key performance metrics:

 

 

 

 

 

Operating margin

 

 

19

%

 

17

%

 

 

Adjusted EBITDA

 

$

(16,980

)

$

(28,258

)

$

11,278

 

(40

)%

Diluted earnings (loss) per share

 

 

2.62

 

 

1.97

 

 

0.65

 

33

 

____________________

(1)

Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(2)

MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS - DISCUSSION OF FULL-YEAR RESULTS:

  • Total revenues increased primarily due to increases in origination fees, MSR income, and property sales broker fees due to the 37% increase in total transaction volume, partially offset by a decline in our origination fee and MSR rates. Although our Agency debt financing volume grew significantly, the competitive environment in the multifamily debt financing market throughout 2025 resulted in a reduction in the origination fee rate for Agency originations and the overall origination fee rate, particularly for Freddie Mac originations. Additionally, we originated a large Fannie Mae portfolio during the second quarter of 2025, with no comparable activity in 2024, contributing to the decline in origination fee rates as large portfolios earn lower fee margins.
  • The increase in total expenses was primarily related to increases in personnel costs mostly due to (i) increased commission costs resulting from the growth in origination fees and property sales broker fees, (ii) increased salaries and benefits largely related to an increase in average segment headcount, and (iii) increased severance expense, resulting from the separation of several underperforming producers.
  • Net income, Diluted EPS and adjusted EBITDA for the Capital Markets segment have improved sequentially the last three years and represent a direct reflection of the steady improvement in overall Capital Markets transaction volumes. The increases in operating margin, adjusted EBITDA, and diluted EPS were largely the result of the increased total transaction volume year over year.

FULL-YEAR FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT

(in thousands)

 

2025

 

2024

 

$ Variance

 

% Variance

Total revenues

 

$

566,564

 

$

591,649

 

$

(25,085

)

 

(4

)%

Total expenses

 

 

448,712

 

 

396,024

 

 

52,688

 

 

13

 

Walker & Dunlop net income (loss)

 

$

85,112

 

$

157,750

 

$

(72,638

)

 

(46

)%

Key performance metrics:

 

 

 

 

 

 

Operating margin

 

 

21

%

 

33

%

 

 

 

Adjusted EBITDA

 

$

419,049

 

$

485,382

 

$

(66,333

)

 

(14

)%

Diluted earnings (loss) per share

 

 

2.48

 

 

4.65

 

 

(2.17

)

 

(47

)

SERVICING & ASSET MANAGEMENT - DISCUSSION OF FULL-YEAR RESULTS:

  • The decrease in total revenues in 2025 was primarily the result of a decline in placement fees and other interest income and other revenues. Placement fees and other interest income was impacted by lower average placement fees earned on escrow deposits resulting from lower short-term interest rates, while other revenues were impacted by the sale of an affordable asset in 2024 with no comparable activity in 2025. Partially offsetting these declines was an increase in servicing fees, driven by an increase in the average servicing portfolio period over period.
  • The increase in total expenses year over year was primarily due to increases in indemnified and repurchased loan expenses and asset impairments and other expenses. The increases were primarily the result of (i) investment impairments related to assets held by one of our affordable operating subsidiaries, (ii) an increase in costs associated with the indemnified and repurchased loan portfolios from 2024 and 2025, and (iii) the write off of unamortized debt issuance costs associated with the refinancing of our corporate debt in the first quarter of 2025. Personnel costs also increased primarily due to higher salaries, benefits, and severance costs.
  • The increase in expenses was the primary driver of the decreases in operating margin, adjusted EBITDA, and diluted EPS.

FULL-YEAR FINANCIAL RESULTS - CORPORATE

(in thousands)

 

2025

 

2024

 

$ Variance

 

% Variance

Total revenues

 

$

20,792

 

 

$

16,000

 

 

$

4,792

 

 

30

%

Total expenses

 

 

185,321

 

 

 

167,416

 

 

 

17,905

 

 

11

 

Walker & Dunlop net income (loss)

 

$

(118,684

)

 

$

(116,247

)

 

$

(2,437

)

 

2

%

Key performance metric:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

(139,453

)

 

$

(128,575

)

 

$

(10,878

)

 

8

%

Diluted earnings (loss) per share

 

 

(3.46

)

 

 

(3.43

)

 

 

(0.03

)

 

1

 

CORPORATE - DISCUSSION OF FULL-YEAR RESULTS:

  • Total revenues increased primarily due to a change to income from equity method investments in 2025 from a loss from equity method investments in 2024.
  • Total expenses increased primarily due to increased personnel costs, asset impairment and other expenses, and other operating expenses year over year. Personnel expense increased largely due to increased salaries and benefits, driven by an increase in average segment headcount, partially offset by a decrease in subjective bonus accrual related to company performance. The increase in asset impairments and other expenses was driven by increased legal and other professional fees related to increased compliance costs and other corporate initiatives, while other operating expenses saw a rise in software and travel and entertainment costs.

CAPITAL SOURCES AND USES

On February 25, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the first quarter of 2026. The dividend will be paid on March 27, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of March 13, 2026.

On February 12, 2025, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 21, 2025 (the “2025 Share Repurchase Program”). As of December 31, 2025, we had not repurchased any shares of common stock under the 2025 Share Repurchase Program. On February 13, 2026, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 26, 2026 (the “2026 Share Repurchase Program”).

Any repurchases made pursuant to the 2026 Share Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.

CONFERENCE CALL INFORMATION

Listeners can access the Company’s quarterly conference call for more information regarding our financial results via the dial-in number and webcast link below. Presentation materials related to the conference call will be posted to the Investor Relations section of the Company’s website prior to the call. An audio replay will also be available on the Investor Relations section of the Company’s website, along with the presentation materials.

 

 

Earnings Call:

Thursday, February 26, 2026, at 8:30 a.m. EST

Phone:

(800) 330-6710 from within the United States; (312) 471-1353 from outside the United States

Confirmation Code:

1125082

Webcast Link:

https://event.webcasts.com/starthere.jsp?ei=1751166&tp_key=b177df1a08

ABOUT WALKER & DUNLOP

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

NON-GAAP FINANCIAL MEASURES

To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses adjusted EBITDA, adjusted core net income, and adjusted core EPS, which are non-GAAP financial measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. When analyzing our operating performance, readers should use adjusted EBITDA, adjusted core net income, and adjusted core EPS in addition to, and not as an alternative for, net income and diluted EPS.

Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, loan repurchase losses, stock-based compensation, the fair value of expected net cash flows from servicing, net, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.

We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financial information, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
  • the ability to better identify trends in the Company’s underlying business and perform related trend analyses; and
  • a better understanding of how management plans and measures the Company’s underlying business.

We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the Company’s GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP By Segment.”

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, including additional charges or losses related to loans we have already repurchased or indemnified and new repurchase requests we may receive from the GSEs related to the previously identified instances of borrower fraud, additional instances of borrower fraud, or other reasons.

For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.

Walker & Dunlop, Inc. and Subsidiaries

Consolidated Balance Sheets

Unaudited

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

2025

 

2025

 

2025

 

2025

 

2024

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

299,315

 

 

$

274,828

 

 

$

233,712

 

 

$

180,971

 

 

$

279,270

 

Restricted cash

 

22,772

 

 

 

44,462

 

 

 

41,090

 

 

 

32,268

 

 

 

25,156

 

Pledged securities, at fair value

 

224,954

 

 

 

221,730

 

 

 

218,435

 

 

 

214,374

 

 

 

206,904

 

Loans held for sale, at fair value

 

1,436,350

 

 

 

2,197,739

 

 

 

1,177,837

 

 

 

946,372

 

 

 

780,749

 

Mortgage servicing rights

 

808,145

 

 

 

805,975

 

 

 

817,814

 

 

 

825,761

 

 

 

852,399

 

Goodwill

 

868,710

 

 

 

868,710

 

 

 

868,710

 

 

 

868,710

 

 

 

868,710

 

Other intangible assets

 

141,877

 

 

 

145,631

 

 

 

149,385

 

 

 

153,139

 

 

 

156,893

 

Receivables, net

 

419,358

 

 

 

374,316

 

 

 

360,646

 

 

 

372,689

 

 

 

335,879

 

Committed investments in tax credit equity

 

241,401

 

 

 

257,564

 

 

 

194,479

 

 

 

337,510

 

 

 

313,230

 

Other assets

 

596,596

 

 

 

606,320

 

 

 

612,932

 

 

 

580,084

 

 

 

562,803

 

Total assets

$

5,059,478

 

 

$

5,797,275

 

 

$

4,675,040

 

 

$

4,511,878

 

 

$

4,381,993

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Warehouse notes payable

$

1,420,272

 

 

$

2,175,157

 

 

$

1,157,234

 

 

$

931,002

 

 

$

781,706

 

Corporate notes payable

 

829,218

 

 

 

829,909

 

 

 

828,657

 

 

 

825,556

 

 

 

768,044

 

Allowance for risk-sharing obligations

 

37,546

 

 

 

34,140

 

 

 

33,191

 

 

 

31,871

 

 

 

28,159

 

Deferred tax liabilities, net

 

237,001

 

 

 

240,912

 

 

 

240,929

 

 

 

241,456

 

 

 

241,386

 

Commitments to fund investments in tax credit equity

 

219,949

 

 

 

223,788

 

 

 

168,863

 

 

 

295,052

 

 

 

274,975

 

Other liabilities

 

569,630

 

 

 

515,903

 

 

 

484,368

 

 

 

442,852

 

 

 

527,860

 

Total liabilities

$

3,313,616

 

 

$

4,019,809

 

 

$

2,913,242

 

 

$

2,767,789

 

 

$

2,622,130

 

 

 

 

 

 

 

 

 

 

 

Temporary Equity

 

 

 

 

 

 

 

 

 

Profit interests of a wholly owned subsidiary subject to possible redemption

$

(1,036

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

Common stock

$

334

 

 

$

333

 

 

$

333

 

 

$

333

 

 

$

332

 

Additional paid-in capital

 

450,434

 

 

 

444,127

 

 

 

438,129

 

 

 

432,788

 

 

 

429,000

 

Accumulated other comprehensive income (loss)

 

1,876

 

 

 

1,833

 

 

 

2,764

 

 

 

1,295

 

 

 

586

 

Retained earnings

 

1,282,390

 

 

 

1,319,274

 

 

 

1,308,792

 

 

 

1,297,764

 

 

 

1,317,945

 

Total stockholders’ equity

$

1,735,034

 

 

$

1,765,567

 

 

$

1,750,018

 

 

$

1,732,180

 

 

$

1,747,863

 

Noncontrolling interests

 

11,864

 

 

 

11,899

 

 

 

11,780

 

 

 

11,909

 

 

 

12,000

 

Total permanent equity

$

1,746,898

 

 

$

1,777,466

 

 

$

1,761,798

 

 

$

1,744,089

 

 

$

1,759,863

 

Commitments and contingencies

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total liabilities, temporary equity, and permanent equity

$

5,059,478

 

 

$

5,797,275

 

 

$

4,675,040

 

 

$

4,511,878

 

 

$

4,381,993

 

Walker & Dunlop, Inc. and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Trends

 

Years ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

(in thousands, except per share amounts)

Q4 2025

 

Q3 2025

 

Q2 2025

 

Q1 2025

 

Q4 2024

 

2025

 

2024

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Origination fees

$

103,614

 

 

$

97,845

 

 

$

94,309

 

 

$

46,381

 

 

$

93,942

 

 

$

342,149

 

 

$

276,562

 

MSR income

 

50,060

 

 

 

48,657

 

 

 

53,153

 

 

 

27,811

 

 

 

55,920

 

 

 

179,681

 

 

 

153,593

 

Servicing fees

 

86,339

 

 

 

85,189

 

 

 

83,693

 

 

 

82,221

 

 

 

82,961

 

 

 

337,442

 

 

 

325,644

 

Property sales broker fees

 

28,488

 

 

 

26,546

 

 

 

14,964

 

 

 

13,521

 

 

 

21,175

 

 

 

83,519

 

 

 

60,583

 

Investment management fees

 

11,192

 

 

 

6,178

 

 

 

7,577

 

 

 

9,682

 

 

 

(3,110

)

 

 

34,629

 

 

 

36,976

 

Net warehouse interest income (expense)

 

(909

)

 

 

(2,035

)

 

 

(1,760

)

 

 

(786

)

 

 

(2,186

)

 

 

(5,490

)

 

 

(7,033

)

Placement fees and other interest income

 

37,085

 

 

 

46,302

 

 

 

35,986

 

 

 

33,211

 

 

 

43,962

 

 

 

152,584

 

 

 

167,961

 

Other revenues

 

24,155

 

 

 

28,993

 

 

 

31,318

 

 

 

25,326

 

 

 

48,787

 

 

 

109,792

 

 

 

118,204

 

Total revenues

$

340,024

 

 

$

337,675

 

 

$

319,240

 

 

$

237,367

 

 

$

341,451

 

 

$

1,234,306

 

 

$

1,132,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

$

187,113

 

 

$

177,418

 

 

$

161,888

 

 

$

121,390

 

 

$

169,178

 

 

$

647,809

 

 

$

559,246

 

Amortization and depreciation

 

62,084

 

 

 

60,041

 

 

 

58,936

 

 

 

57,621

 

 

 

68,054

 

 

 

238,682

 

 

 

237,549

 

Provision (benefit) for credit losses

 

3,105

 

 

 

949

 

 

 

1,820

 

 

 

3,712

 

 

 

4,529

 

 

 

9,586

 

 

 

10,839

 

Interest expense on corporate debt

 

15,983

 

 

 

16,451

 

 

 

16,767

 

 

 

15,514

 

 

 

15,921

 

 

 

64,715

 

 

 

69,686

 

Goodwill impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

—

 

 

 

33,000

 

Fair value adjustments to contingent consideration liabilities

 

(8,243

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(48,955

)

 

 

(8,243

)

 

 

(50,321

)

Indemnified and repurchased loan expenses

 

35,784

 

 

 

3,526

 

 

 

683

 

 

 

857

 

 

 

8,455

 

 

 

40,850

 

 

 

10,573

 

Asset impairments and other expenses

 

30,390

 

 

 

663

 

 

 

1,478

 

 

 

4,215

 

 

 

1,081

 

 

 

36,746

 

 

 

1,181

 

Other operating expenses

 

32,365

 

 

 

32,690

 

 

 

31,294

 

 

 

28,814

 

 

 

38,068

 

 

 

125,163

 

 

 

129,236

 

Total expenses

$

358,581

 

 

$

291,738

 

 

$

272,866

 

 

$

232,123

 

 

$

289,331

 

 

$

1,155,308

 

 

$

1,000,989

 

Income (loss) before taxes

$

(18,557

)

 

$

45,937

 

 

$

46,374

 

 

$

5,244

 

 

$

52,120

 

 

$

78,998

 

 

$

131,501

 

Income tax expense (benefit)

 

(5,447

)

 

 

12,516

 

 

 

12,425

 

 

 

2,519

 

 

 

10,955

 

 

 

22,013

 

 

 

30,543

 

Net income before noncontrolling interests and temporary equity holders

$

(13,110

)

 

$

33,421

 

 

$

33,949

 

 

$

2,725

 

 

$

41,165

 

 

$

56,985

 

 

$

100,958

 

Less: net income (loss) from noncontrolling interests

 

(36

)

 

 

(31

)

 

 

(3

)

 

 

(29

)

 

 

(3,671

)

 

 

(99

)

 

 

(7,209

)

Less: net income (loss) attributable to temporary equity holders

 

837

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

837

 

 

 

—

 

Walker & Dunlop net income (loss)

$

(13,911

)

 

$

33,452

 

 

$

33,952

 

 

$

2,754

 

 

$

44,836

 

 

$

56,247

 

 

$

108,167

 

Other comprehensive income (loss), net of tax

 

43

 

 

 

(931

)

 

 

1,469

 

 

 

709

 

 

 

(880

)

 

 

1,290

 

 

 

1,065

 

Walker & Dunlop comprehensive income (loss)

$

(13,868

)

 

$

32,521

 

 

$

35,421

 

 

$

3,463

 

 

$

43,956

 

 

$

57,537

 

 

$

109,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

29

%

 

 

27

%

 

 

27

%

 

 

48

%

 

 

21

%

 

 

28

%

 

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

(0.41

)

 

$

0.98

 

 

$

1.00

 

 

$

0.08

 

 

$

1.32

 

 

$

1.65

 

 

$

3.19

 

Diluted earnings (loss) per share

 

(0.41

)

 

 

0.98

 

 

 

0.99

 

 

 

0.08

 

 

 

1.32

 

 

 

1.64

 

 

 

3.19

 

Cash dividends paid per common share

 

0.67

 

 

 

0.67

 

 

 

0.67

 

 

 

0.67

 

 

 

0.65

 

 

 

2.68

 

 

 

2.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding

 

33,388

 

 

 

33,376

 

 

 

33,358

 

 

 

33,264

 

 

 

33,192

 

 

 

33,347

 

 

 

33,116

 

Diluted weighted-average shares outstanding

 

33,410

 

 

 

33,397

 

 

 

33,371

 

 

 

33,296

 

 

 

33,223

 

 

 

33,369

 

 

 

33,158

 

SUPPLEMENTAL OPERATING DATA

Unaudited

 

 

 

 

 

 

 

 

 

Quarterly Trends

Years ended

 

 

 

 

 

 

December 31,

(in thousands, except per share data and unless otherwise noted)

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

2025

 

2024

Transaction Volume:

 

 

 

 

 

 

 

Components of Debt Financing Volume

 

 

 

 

 

Fannie Mae

$

2,785,231

 

$

2,141,092

 

$

3,114,308

 

$

1,511,794

 

$

3,225,633

 

$

9,552,425

 

$

7,641,161

 

Freddie Mac

 

2,023,592

 

 

3,664,380

 

 

1,752,597

 

 

808,247

 

 

1,553,495

 

 

8,248,816

 

 

5,227,550

 

Ginnie Mae - HUD

 

153,748

 

 

325,169

 

 

288,449

 

 

148,158

 

 

116,437

 

 

915,524

 

 

588,529

 

Brokered (1)

 

8,675,937

 

 

4,512,729

 

 

6,335,071

 

 

2,552,943

 

 

4,893,643

 

 

22,076,680

 

 

16,093,776

 

Principal Lending and Investing (2)

 

167,700

 

 

199,250

 

 

147,800

 

 

175,500

 

 

207,000

 

 

690,250

 

 

603,650

 

Total Debt Financing Volume

$

13,806,208

 

$

10,842,620

 

$

11,638,225

 

$

5,196,642

 

$

9,996,208

 

$

41,483,695

 

$

30,154,666

 

Property Sales Volume

 

4,524,142

 

 

4,672,875

 

 

2,313,585

 

 

1,839,290

 

 

3,450,614

 

 

13,349,892

 

 

9,751,223

 

Total Transaction Volume

$

18,330,350

 

$

15,515,495

 

$

13,951,810

 

$

7,035,932

 

$

13,446,822

 

$

54,833,587

 

$

39,905,889

 

 

 

 

 

 

 

 

 

Key Performance Metrics:

 

 

 

 

 

 

 

Operating margin

 

(5

)%

 

14

%

 

15

%

 

2

%

 

15

%

 

6

%

 

12

%

Return on equity

 

(3

)

 

8

 

 

8

 

 

1

 

 

10

 

 

3

 

 

6

 

Walker & Dunlop net income (loss)

$

(13,911

)

$

33,452

 

$

33,952

 

$

2,754

 

$

44,836

 

$

56,247

 

$

108,167

 

Adjusted EBITDA (3)

 

38,755

 

 

82,084

 

 

76,811

 

 

64,966

 

 

94,577

 

 

262,616

 

 

328,549

 

Diluted earnings (loss) per share

 

(0.41

)

 

0.98

 

 

0.99

 

 

0.08

 

 

1.32

 

 

1.64

 

 

3.19

 

Adjusted core EPS (4)

 

0.28

 

 

1.22

 

 

1.15

 

 

0.85

 

 

1.34

 

 

3.50

 

 

4.97

 

 

 

 

 

 

 

 

 

Key Expense Metrics (as a percentage of total revenues):

 

 

 

 

 

Personnel expense

 

55

%

 

53

%

 

51

%

 

51

%

 

50

%

 

52

%

 

49

%

Other operating expenses

 

10

 

 

10

 

 

10

 

 

12

 

 

11

 

 

10

 

 

11

 

Key Revenue Metrics (as a percentage of debt financing volume):

 

 

 

 

 

Origination fee rate (5)

 

0.75

%

 

0.90

%

 

0.82

%

 

0.90

%

 

0.94

%

 

0.83

%

 

0.92

%

Agency MSR rate (6)

 

1.01

 

 

0.79

 

 

1.03

 

 

1.13

 

 

1.14

 

 

0.96

 

 

1.14

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

Market capitalization at period end

$

2,048,798

 

$

2,847,907

 

$

2,395,939

 

$

2,901,726

 

$

3,282,018

 

 

 

Closing share price at period end

$

60.15

 

$

83.62

 

$

70.48

 

$

85.36

 

$

97.21

 

 

 

Average headcount

 

1,464

 

 

1,438

 

 

1,400

 

 

1,394

 

 

1,391

 

 

 

 

 

 

 

 

 

 

 

Components of Servicing Portfolio (end of period):

 

 

 

 

 

Fannie Mae

$

72,708,372

 

$

71,006,342

 

$

70,042,909

 

$

69,176,839

 

$

68,196,744

 

 

 

Freddie Mac

 

42,595,441

 

 

40,473,401

 

 

39,433,013

 

 

38,556,682

 

 

39,185,091

 

 

 

Ginnie Mae - HUD

 

11,563,020

 

 

11,298,108

 

 

11,008,314

 

 

10,882,857

 

 

10,847,265

 

 

 

Brokered (7)

 

17,111,320

 

 

16,553,827

 

 

16,864,888

 

 

17,032,338

 

 

17,057,912

 

 

 

Total Servicing Portfolio

$

143,978,153

 

$

139,331,678

 

$

137,349,124

 

$

135,648,716

 

$

135,287,012

 

 

 

Assets under management (8)

 

18,631,100

 

 

18,521,907

 

 

18,623,451

 

 

18,518,413

 

 

18,423,463

 

 

 

Total Managed Portfolio

$

162,609,253

 

$

157,853,585

 

$

155,972,575

 

$

154,167,129

 

$

153,710,475

 

 

 

 

 

 

 

 

 

 

 

Key Servicing Portfolio Metrics (end of period):

 

 

 

 

 

Custodial escrow account deposits (in billions)

$

3.1

 

$

2.8

 

$

2.7

 

$

2.4

 

$

2.7

 

 

 

Weighted-average servicing fee rate (basis points)

 

23.6

 

 

24.0

 

 

24.1

 

 

24.4

 

 

24.2

 

 

 

Weighted-average remaining servicing portfolio term (years)

 

7.2

 

 

7.4

 

 

7.4

 

 

7.5

 

 

7.7

 

 

 

____________________

(1)

Brokered transactions for life insurance companies, commercial banks, and other capital sources.

(2)

Includes debt financing volumes from our WDIP separate accounts.

(3)

This is a non-GAAP financial measure. For more information on adjusted EBITDA, refer to the section above titled “Non-GAAP Financial Measures.”

(4)

This is a non-GAAP financial measure. For more information on adjusted core EPS, refer to the section above titled “Non-GAAP Financial Measures.”

(5)

Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(6)

MSR income as a percentage of Agency debt financing volume.

(7)

Brokered loans serviced primarily for life insurance companies.

(8)

WDAE assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.

KEY CREDIT METRICS

Unaudited

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(dollars in thousands)

2025

 

2025

 

2025

 

2025

 

2024

Risk-sharing servicing portfolio:

 

 

 

 

 

Fannie Mae Full Risk

$

65,087,136

 

$

63,382,256

 

$

61,486,070

 

$

60,493,946

 

$

59,304,888

 

Fannie Mae Modified Risk

 

7,621,236

 

 

7,624,086

 

 

8,556,839

 

 

8,682,893

 

 

8,891,856

 

Freddie Mac Modified Risk

 

15,000

 

 

10,000

 

 

10,000

 

 

15,000

 

 

15,000

 

Total risk-sharing servicing portfolio

$

72,723,372

 

$

71,016,342

 

$

70,052,909

 

$

69,191,839

 

$

68,211,744

 

 

 

 

 

 

 

Non-risk-sharing servicing portfolio:

 

 

 

 

 

Freddie Mac No Risk

$

42,580,441

 

$

40,463,401

 

$

39,423,013

 

$

38,541,682

 

$

39,170,091

 

GNMA - HUD No Risk

 

11,563,020

 

 

11,298,108

 

 

11,008,314

 

 

10,882,857

 

 

10,847,265

 

Brokered

 

17,111,320

 

 

16,553,827

 

 

16,864,888

 

 

17,032,338

 

 

17,057,912

 

Total non-risk-sharing servicing portfolio

$

71,254,781

 

$

68,315,336

 

$

67,296,215

 

$

66,456,877

 

$

67,075,268

 

Total loans serviced for others

$

143,978,153

 

$

139,331,678

 

$

137,349,124

 

$

135,648,716

 

$

135,287,012

 

 

 

 

 

 

 

Loans held for investment (full risk)

$

36,926

 

$

36,926

 

$

36,926

 

$

36,926

 

$

36,926

 

Indemnification reserves

 

23,920

 

 

—

 

 

—

 

 

—

 

 

5,527

 

Interim Loan Joint Venture Managed Loans (1)

 

32,965

 

 

76,215

 

 

76,215

 

 

173,315

 

 

173,315

 

 

 

 

 

 

 

At-risk servicing portfolio (2)

$

68,649,960

 

$

66,946,180

 

$

65,378,944

 

$

64,450,319

 

$

63,365,672

 

Maximum exposure to at-risk portfolio (3)

 

14,052,667

 

 

13,704,585

 

 

13,382,410

 

 

13,200,846

 

 

12,893,593

 

Defaulted loans(4)

 

158,821

 

 

139,020

 

 

108,530

 

 

108,530

 

 

41,737

 

 

 

 

 

 

 

Defaulted loans as a percentage of the at-risk portfolio

 

0.23

%

 

0.21

%

 

0.17

%

 

0.17

%

 

0.07

%

Allowance for risk-sharing as a percentage of the at-risk portfolio

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.04

 

Allowance for risk-sharing as a percentage of maximum exposure

 

0.27

 

 

0.25

 

 

0.25

 

 

0.24

 

 

0.22

 

____________________

(1)

This balance consisted entirely of Interim Program JV managed loans. We indirectly share in a portion of the risk of loss associated with Interim Program JV managed loans through our 15% equity ownership in the Interim Program JV. We have no exposure to risk of loss for the loans serviced directly for the Interim Program JV partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table above.

(2)

At-risk servicing portfolio is defined as the balance of Fannie Mae DUS loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.

 

For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.

(3)

Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.

(4)

Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac SBL portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e. loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Trends

 

Years ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

(in thousands)

Q4 2025

 

Q3 2025

 

Q2 2025

 

Q1 2025

 

Q4 2024

 

2025

 

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Walker & Dunlop Net Income (Loss)

$

(13,911

)

 

$

33,452

 

 

$

33,952

 

 

$

2,754

 

 

$

44,836

 

 

$

56,247

 

 

$

108,167

 

Income tax expense (benefit)

 

(5,447

)

 

 

12,516

 

 

 

12,425

 

 

 

2,519

 

 

 

10,955

 

 

 

22,013

 

 

 

30,543

 

Interest expense on corporate debt

 

15,983

 

 

 

16,451

 

 

 

16,767

 

 

 

15,514

 

 

 

15,921

 

 

 

64,715

 

 

 

69,686

 

Amortization and depreciation

 

62,084

 

 

 

60,041

 

 

 

58,936

 

 

 

57,621

 

 

 

68,054

 

 

 

238,682

 

 

 

237,549

 

Provision (benefit) for credit losses

 

3,105

 

 

 

949

 

 

 

1,820

 

 

 

3,712

 

 

 

4,529

 

 

 

9,586

 

 

 

10,839

 

Loan repurchase losses (1)

 

20,092

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,092

 

 

 

—

 

Net write-offs

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(468

)

Stock-based compensation expense

 

6,909

 

 

 

7,332

 

 

 

6,064

 

 

 

6,442

 

 

 

7,702

 

 

 

26,747

 

 

 

27,326

 

Goodwill impairment, net of contingent consideration liability fair value adjustments(2)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,500

)

 

 

—

 

 

 

(1,500

)

Write-off of unamortized issuance costs from corporate debt paydown(3)

 

—

 

 

 

—

 

 

 

—

 

 

 

4,215

 

 

 

—

 

 

 

4,215

 

 

 

—

 

MSR income

 

(50,060

)

 

 

(48,657

)

 

 

(53,153

)

 

 

(27,811

)

 

 

(55,920

)

 

 

(179,681

)

 

 

(153,593

)

Adjusted EBITDA

$

38,755

 

 

$

82,084

 

 

$

76,811

 

 

$

64,966

 

 

$

94,577

 

 

$

262,616

 

 

$

328,549

 

____________________

(1)

Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income.

(2)

For the three months and year ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million.

(3)

Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT

Unaudited

 

 

 

 

 

 

 

 

 

Capital Markets

 

Three months ended
December 31,

 

For the year ended
December 31,

(in thousands)

2025

 

2024

 

2025

 

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

 

 

 

 

Walker & Dunlop Net Income (Loss)

$

26,387

 

 

$

40,497

 

 

$

89,819

 

 

$

66,664

 

Income tax expense (benefit)

 

10,170

 

 

 

11,586

 

 

 

35,019

 

 

 

20,275

 

Interest expense on corporate debt

 

4,316

 

 

 

4,451

 

 

 

17,506

 

 

 

19,489

 

Amortization and depreciation

 

1,146

 

 

 

1,139

 

 

 

4,579

 

 

 

4,551

 

Stock-based compensation expense

 

3,829

 

 

 

3,920

 

 

 

14,514

 

 

 

15,856

 

Goodwill impairment, net of contingent consideration liability fair value adjustments (1)

 

—

 

 

 

(1,500

)

 

 

—

 

 

 

(1,500

)

Write-off of unamortized issuance costs from corporate debt paydown(2)

 

—

 

 

 

—

 

 

 

1,264

 

 

 

—

 

MSR income

 

(50,060

)

 

 

(55,920

)

 

 

(179,681

)

 

 

(153,593

)

Adjusted EBITDA

$

(4,212

)

 

$

4,173

 

 

$

(16,980

)

 

$

(28,258

)

 

 

 

 

 

 

 

 

 

Servicing & Asset Management

 

Three months ended
December 31,

 

For the year ended
December 31,

(in thousands)

2025

 

2024

 

2025

 

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

 

 

 

 

Walker & Dunlop Net Income (Loss)

$

(8,518

)

 

$

36,553

 

 

$

85,112

 

 

$

157,750

 

Income tax expense (benefit)

 

(3,818

)

 

 

7,007

 

 

 

32,839

 

 

 

45,437

 

Interest expense on corporate debt

 

10,200

 

 

 

9,986

 

 

 

41,345

 

 

 

43,834

 

Amortization and depreciation

 

58,269

 

 

 

65,155

 

 

 

225,640

 

 

 

226,067

 

Provision (benefit) for credit losses

 

3,105

 

 

 

4,529

 

 

 

9,586

 

 

 

10,839

 

Loan repurchase losses (3)

 

20,092

 

 

 

—

 

 

 

20,092

 

 

 

—

 

Net write-offs

 

—

 

 

 

—

 

 

 

—

 

 

 

(468

)

Stock-based compensation expense

 

462

 

 

 

538

 

 

 

1,906

 

 

 

1,923

 

Write-off of unamortized issuance costs from corporate debt paydown(2)

 

—

 

 

 

—

 

 

 

2,529

 

 

 

—

 

Adjusted EBITDA

$

79,792

 

 

$

123,768

 

 

$

419,049

 

 

$

485,382

 

 

 

 

 

 

 

 

 

 

Corporate

 

Three months ended
December 31,

 

For the year ended
December 31,

(in thousands)

2025

 

2024

 

2025

 

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

 

 

 

 

Walker & Dunlop Net Income (Loss)

$

(31,780

)

 

$

(32,214

)

 

$

(118,684

)

 

$

(116,247

)

Income tax expense (benefit)

 

(11,799

)

 

 

(7,638

)

 

 

(45,845

)

 

 

(35,169

)

Interest expense on corporate debt

 

1,467

 

 

 

1,484

 

 

 

5,864

 

 

 

6,363

 

Amortization and depreciation

 

2,669

 

 

 

1,760

 

 

 

8,463

 

 

 

6,931

 

Stock-based compensation expense

 

2,618

 

 

 

3,244

 

 

 

10,327

 

 

 

9,547

 

Write-off of unamortized issuance costs from corporate debt paydown(2)

 

—

 

 

 

—

 

 

 

422

 

 

 

—

 

Adjusted EBITDA

$

(36,825

)

 

$

(33,364

)

 

$

(139,453

)

 

$

(128,575

)

 

 

 

 

 

 

 

 

____________________

(1)

For the three months and year ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million.

(2)

Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.

(3)

Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income.

ADJUSTED CORE EPS RECONCILIATION

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Trends

 

Years ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

(in thousands)

Q4 2025

 

Q3 2025

 

Q2 2025

 

Q1 2025

 

Q4 2024

 

2025

 

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted Core Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Walker & Dunlop Net Income (Loss)

$

(13,911

)

 

$

33,452

 

 

$

33,952

 

 

$

2,754

 

 

$

44,836

 

 

$

56,247

 

 

$

108,167

 

Provision (benefit) for credit losses

 

3,105

 

 

 

949

 

 

 

1,820

 

 

 

3,712

 

 

 

4,529

 

 

 

9,586

 

 

 

10,839

 

Loan repurchase losses(1)

 

20,092

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,092

 

 

 

—

 

Net write-offs

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(468

)

Amortization and depreciation

 

62,084

 

 

 

60,041

 

 

 

58,936

 

 

 

57,621

 

 

 

68,054

 

 

 

238,682

 

 

 

237,549

 

MSR income

 

(50,060

)

 

 

(48,657

)

 

 

(53,153

)

 

 

(27,811

)

 

 

(55,920

)

 

 

(179,681

)

 

 

(153,593

)

Goodwill impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

—

 

 

 

33,000

 

Contingent consideration accretion and fair value adjustments

 

(8,226

)

 

 

18

 

 

 

41

 

 

 

40

 

 

 

(48,822

)

 

 

(8,127

)

 

 

(48,692

)

Write-off of unamortized issuance costs from corporate debt paydown(2)

 

—

 

 

 

—

 

 

 

—

 

 

 

4,215

 

 

 

—

 

 

 

4,215

 

 

 

—

 

Income tax expense adjustment(3)

 

(3,662

)

 

 

(3,856

)

 

 

(2,429

)

 

 

(11,355

)

 

 

(177

)

 

 

(21,302

)

 

 

(18,264

)

Adjusted Core Net Income

$

9,422

 

 

$

41,947

 

 

$

39,167

 

 

$

29,176

 

 

$

45,500

 

 

$

119,712

 

 

$

168,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Diluted EPS to Adjusted core EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Walker & Dunlop Net Income

$

(13,911

)

 

$

33,452

 

 

$

33,952

 

 

$

2,754

 

 

$

44,836

 

 

$

56,247

 

 

$

108,167

 

Diluted weighted-average shares outstanding

 

33,410

 

 

 

33,397

 

 

 

33,371

 

 

 

33,296

 

 

 

33,223

 

 

 

33,369

 

 

 

33,158

 

Diluted earnings (loss) per share

$

(0.41

)

 

$

0.98

 

 

$

0.99

 

 

$

0.08

 

 

$

1.32

 

 

$

1.64

 

 

$

3.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Core Net Income

$

9,422

 

 

$

41,947

 

 

$

39,167

 

 

$

29,176

 

 

$

45,500

 

 

$

119,712

 

 

$

168,538

 

Diluted weighted-average shares outstanding

 

33,410

 

 

 

33,397

 

 

 

33,371

 

 

 

33,296

 

 

 

33,223

 

 

 

33,369

 

 

 

33,158

 

Adjusted Core EPS

$

0.28

 

 

$

1.22

 

 

$

1.15

 

 

$

0.85

 

 

$

1.34

 

 

$

3.50

 

 

$

4.97

 

____________________

(1)

Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income

(2)

Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.

(3)

Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Consolidated Statements of Income and Comprehensive Income in this press release, (ii) estimated annual effective rate, or (iii) annual marginal tax rate.

Category: Earnings

Headquarters:

7272 Wisconsin Avenue, Suite 1300

Bethesda, Maryland 20814

Phone 301.215.5500

info@walkeranddunlop.com

Investors:

Kelsey Duffey

Senior Vice President, Investor Relations

Phone 301.202.3207

investorrelations@walkeranddunlop.com

Media:

Carol McNerney

Chief Marketing Officer

Phone 301.215.5515

info@walkeranddunlop.com

Source: Walker & Dunlop, Inc.

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Walker & Dunlop Inc

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WD Latest News

Feb 18, 2026
Walker & Dunlop Announces 2026 Investor Day
Feb 17, 2026
Walker & Dunlop Arranges €118 Million Refinance for the Zuiderpoort Office in Belgium
Feb 9, 2026
Walker & Dunlop Arranges $371.5 Million Financing for The Nashville EDITION Hotel & Residences
Feb 9, 2026
Walker & Dunlop Ranked #1 Fannie Mae DUS® Lender, #2 GSE Lender and #3 Freddie Mac Optigo® Lender For 2025
Feb 5, 2026
Walker & Dunlop Announces Fourth Quarter and Full-Year 2025 Earnings Conference Call Details

WD Latest SEC Filings

Feb 26, 2026
[10-K] Walker & Dunlop, Inc. Files Annual Report
Feb 26, 2026
[8-K] Walker & Dunlop, Inc. Reports Material Event
Feb 18, 2026
[Form 4] Walker & Dunlop, Inc. Insider Trading Activity
Feb 18, 2026
[Form 4] Walker & Dunlop, Inc. Insider Trading Activity
Feb 18, 2026
[Form 4] Walker & Dunlop, Inc. Insider Trading Activity

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