Walker & Dunlop Reports Second Quarter 2026 Financial Results

(Neutral)

Key Terms

adjusted core EPS financial

Adjusted core EPS is a per-share profit measure that removes one-time charges, unusual gains or other items outside a company’s normal operations to show the earnings produced by its main business. It matters to investors because it aims to reveal the company’s underlying, repeatable profitability—like wiping glare off a window so you can see the view—making it easier to compare performance across periods and between companies, though firms may adjust different items and therefore calculate it differently.

MSRs financial

Mortgage servicing rights (MSRs) are the contractual rights to collect fees and manage the day-to-day administration of a pool of mortgages, similar to operating a toll booth that collects small ongoing payments for handling loans. Investors care because MSRs create steady fee income but their value swings with interest rates and how quickly homeowners pay off or refinance loans, affecting a lender’s cash flow and reported earnings.

LIHTC financial

A Low-Income Housing Tax Credit (LIHTC) is a U.S. federal tax incentive that gives a dollar-for-dollar reduction in taxes to investors who fund the construction or rehabilitation of affordable rental housing. Think of it like a valuable coupon investors buy into: it lowers their tax bill in exchange for financing apartments reserved for lower-income tenants. For investors, LIHTC changes a project’s cash flow, risk profile and potential return because much of the economic value comes from the tax benefit rather than rent alone.

debt service coverage ratio technical

Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.

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08/06/2026 - 06:00 AM

BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported second quarter 2026 financial results.

KEY FINANCIAL METRICS

Total transaction volume of $14.4 billion, up 3% from Q2’25
Total revenues of $306.7 million, down 4% from Q2’25
Net income of $3.0 million and diluted earnings per share of $0.09, both down 91% from Q2’25
Adjusted core EPS⁽¹⁾ of $1.19, up 3% from Q2’25
Servicing portfolio of $145.8 billion as of June 30, 2026, up 6% from June 30, 2025
Year-to-date GSE market share is 14.7%, compared to 11.2% in 2025

“Walker & Dunlop continues to demonstrate the strength and resilience of our commercial real estate capital markets platform by gaining market share with the GSEs, expanding our capital markets capabilities, and generating durable, recurring cash flows from our servicing and asset management businesses,” said Willy Walker, Chairman and CEO.

“While our Q2 financial results reflect the impact of the legacy repurchases and associated credit marks, we are nearing the conclusion of these reviews which have strengthened our underwriting processes along with our partnerships with Fannie Mae and Freddie Mac. The GSE’s have a tremendous amount of lending capacity for the remainder of 2026, and after expanding W&D’s market share by 3.5% in the first half of 2026 to 15%, we see plenty of opportunity going forward.”

Walker continued, “Our focus now firmly turns to the Journey to ’30, our five-year strategic growth plan to become the best commercial real estate capital markets company in the world by expanding the services we offer, the depth of our client relationships, and generating long-term value for our shareholders.”

The Capital Markets team generated $14.4 billion of total transaction volume, up 3% from a year ago. Debt financing volume increased 8%, led by 43% growth in HUD originations and 17% growth in brokered lending, reflecting the continued expansion of capital relationships beyond the Agencies. The servicing portfolio grew 6%, to $145.8 billion, providing durable recurring revenue and cash flow while deepening the client relationships that create future financing and advisory opportunities.

Year-to-date, debt financing volume increased 44% to $24.3 billion within a complex macroeconomic and interest rate environment, reinforcing our confidence in the long-term earnings power of Walker & Dunlop’s platform as improving market activity continues to create opportunities across the business.

Results this quarter include $23.2 million of operating and credit-related expenses associated with legacy indemnified and repurchased loans. A large of portion of these charges is concentrated in loans associated with a small number of fraudulent sponsors we previously identified. These charges do not reflect new or increasing repurchase exposure in our overall portfolio. We are actively executing our disposition strategy for the repurchased loan portfolio, reducing that exposure by $39.4 million since quarter end to $153.8 million, and we have $41.7 million of credit-related reserves against that remaining portfolio.

____________________
(1)		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.”

TRANSACTION VOLUME
(in millions)		Q2 2026		Q2 2025	$ Change			% Change
Fannie Mae	$	3,088	$	3,114	$	(26	)	(1	)	%
Freddie Mac		1,311		1,753		(442	)	(25	)
Ginnie Mae - HUD		413		288		125		43
Brokered ⁽¹⁾		7,402		6,335		1,067		17
Principal Lending and Investing ⁽²⁾		320		148		172		116
Debt financing volume	$	12,534	$	11,638	$	896		8		%
Property sales volume		1,897		2,314		(417	)	(18	)
Total transaction volume	$	14,431	$	13,952	$	479		3		%


(1) Brokered transaction for life insurance companies, commercial banks, and other capital sources.
(2) Includes debt financing volumes from our interim lending platform and Walker & Dunlop Investment Partners, Inc. ("WDIP") separate accounts

Total transaction volume increased 3%, to $14.4 billion, as transaction activity remained healthy across the commercial real estate market.
Although GSE debt financing volumes decreased 10% year over year, our market share with the GSEs increased year over year.
Growth in brokered lending reflects strong lender participation across numerous third-party capital sources during the quarter, demonstrating the availability of capital at this time in the cycle, and the breadth of our financing capabilities across executions and property types.
Property sales volume remained active despite continued market volatility, as investment decisions across the multifamily sector continued to be influenced by operating fundamentals, interest rate expectations and transaction timing.


FINANCIAL RESULTS - CAPITAL MARKETS ("CM")
		Three months ended June 30,
(in millions, unless otherwise noted)		2026			2025		% Change
Total revenues	$	169		$	173		(2	)%
Total expenses		131			127		3
Walker & Dunlop net income (loss)	$	30		$	33		(10	)%
Key revenue metrics:
Origination fee rate ⁽¹⁾		0.74	%		0.82	%
Agency MSR rate ⁽²⁾		0.99			1.03

____________________
The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders.
(1)		Loan origination and debt brokerage fees, net (“Origination fees”) as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
(2)		Fair value of expected net cash flows from servicing, net of guaranty obligation (“MSR income”) as a percentage of Agency debt financing volume.

Revenues declined 2% primarily due to a greater mix of brokered transactions relative to GSE lending and a corresponding reduction to MSR income.
Brokered activity increased 17% supporting the overall performance of the segment, while reflecting the scale of our capital relationships beyond the GSEs – an important driver of our long-term growth strategy. Although GSE lending volumes declined this quarter, this was driven by transaction timing, as our overall market share has increased 350 basis points year-to-date to 14.7%. Other highlights for the segment include:
Net warehouse interest (expense) income improved to income in the current quarter, reflecting the normalization of the yield curve for the first time since the Great Tightening began.
Improvement in other revenues was driven by investment banking, appraisal and valuation services, and application fees.


MANAGED PORTFOLIO
(dollars in millions, unless otherwise noted)	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025
Fannie Mae	$	74,141	$	73,499	$	72,708	$	71,006	$	70,043
Freddie Mac		45,516		44,836		42,595		40,473		39,433
Ginnie Mae - HUD		11,890		11,647		11,563		11,298		11,008
Brokered		14,234		16,385		17,111		16,554		16,865
Principal Lending and Investing		18		18		-		-		-
Total Servicing Portfolio	$	145,799	$	146,385	$	143,977	$	139,331	$	137,349
Assets under management		18,675		18,531		18,631		18,522		18,623
Total Managed Portfolio	$	164,474	$	164,916	$	162,608	$	157,853	$	155,972
Weighted-average servicing fee rate at period end (basis points)		23.4		23.4		23.6		24.0		24.1
Weighted-average remaining servicing portfolio term at period end (years)		7.1		7.1		7.2		7.4		7.4

Continued origination activity over the past year expanded the servicing portfolio to $145.8 billion, further strengthening the recurring revenue and cash flow that supports our long term earnings growth. The portfolio also creates future opportunities to refinance, recapitalize and deepen client relationships as loans mature over time.
Agency production over the past 12 months was the main driver for the addition of more than $8 billion of net loans to the servicing portfolio. Approximately $14.9 billion of Agency loans are scheduled to mature over the next two years, providing a meaningful pipeline of client engagement opportunities to support future transaction activity. The decline in brokered servicing was primarily driven by a large partner consolidating their servicing relationships. Although we bid on the opportunity, we were not selected. We will continue to source and originate deals on behalf of that lender.
Mortgage servicing rights (“MSRs”) continue to deliver significant long-term value. As of June 30, 2026, MSRs associated with our servicing portfolio are reported at an amortized cost of $793.4 million, while the fair value is estimated at $1.4 billion, reflecting the inherent value of the long-term contractual nature of these assets and the recurring servicing and ancillary revenues they generate.
Assets under management totaled $18.7 billion as of June 30, 2026, and consisted of $16.0 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, $1.8 billion of debt funds, and $0.9 billion of equity funds managed by our registered investment advisor, WDIP.


FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT ("SAM")
	Three months ended June 30,
(in millions)		2026		2025	% Change
Total revenues	$	134	$	141	(5	)%
Total expenses		124		98	27
Walker & Dunlop net income (loss)	$	8	$	38	(77	)%

____________________
The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders.

The Servicing & Asset Management segment continues to benefit from the stable recurring earnings and cash flow from the servicing portfolio.
Revenue declined year over year, primarily due to the timing of earnings recognized from joint venture investments in our affordable business, while the recurring servicing fees of the managed portfolio continued to steadily grow. The underlying fundamentals of the servicing platform remain strong, and continued execution from our Capital Markets business in the coming quarters should drive additional servicing portfolio expansion as we move through the year.
Segment results continue to be influenced by our portfolio of indemnified and repurchased loans. That portfolio increased year over year, leading to higher operating costs and credit-related losses.


KEY CREDIT TRENDS
(in millions, unless otherwise noted)		Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025
Defaulted loans ⁽¹⁾	$	199		$	167		$	159		$	139		$	109
Key credit metrics (as a % of the at-risk portfolio ⁽¹⁾):
Defaulted loans		0.28	%		0.24	%		0.23	%		0.21	%		0.17	%
Allowance for risk-sharing		0.07			0.06			0.05			0.05			0.05
Key credit metrics (as a % of maximum exposure ⁽¹⁾):
Allowance for risk-sharing		0.34	%		0.27	%		0.27	%		0.25	%		0.25	%

____________________
(1)		Please refer to the appendix for details on “Key Credit Metrics.”

The at-risk servicing portfolio continues to demonstrate strong underlying credit performance with low levels of delinquency. Growth in the at-risk portfolio reflects continued Fannie Mae loan production over the past year, while our credit exposure remains concentrated on loans backed by multifamily assets.
Based on the latest property level financial information available, our at-risk portfolio is operating at a weighted average debt service coverage ratio two times, and the average underwritten loan-to-value is approximately 61%. Less than 5% of our loans are below a 1.0 times debt service coverage ratio, and were underwritten above a 75% loan-to-value.


FINANCIAL RESULTS - CORPORATE
	Three months ended June 30,
(in millions)		2026			2025		% Change
Total revenues	$	4		$	6		(25	)%
Total expenses		49			48		2
Walker & Dunlop net income (loss)	$	(35	)	$	(37	)	(4	)%

____________________
The table above excludes income tax expense (benefit).

The Corporate segment is structured to support continued scaling of our business. Corporate results this quarter reflect our disciplined expense management as the segment continues to support revenue growth in our Capital Markets and Servicing & Asset Management businesses.


INDEMNIFIED AND REPURCHASED LOANS
	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2026			2025		2026			2025
Initial loan repurchase costs	$	—		$	—	$	1		$	—
Indemnified and repurchased loan operating costs		5			1		7			1
Expected principal losses on loan repurchase ("loan repurchase losses")		2			—		9			—
Indemnified and repurchased loan expenses	$	7		$	1	$	17		$	1
Provision (benefit) for loan losses ⁽¹⁾	$	11		$	1	$	13		$	1
Provision (benefit) for risk-sharing obligations ⁽²⁾		6			—		6			—
Other operating expenses ⁽³⁾		—			—		2			—
Other interest income ⁽⁴⁾		(1	)		—		(2	)		—
Total net expense impact of indemnified and repurchased loans	$	23		$	2	$	36		$	2

____________________
(1)		Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income.
(2)		Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income. Reflects the impact on the provision for risk-sharing obligations for our agreement with Fannie Mae to increase our loss sharing on $15.9 million of defaulted loans in lieu of repurchasing them.
(3)		Impairment charges related to an Other real estate owned (OREO) asset that was previously repurchased and included as a component of Other operating expenses in the Condensed Consolidated Statements of Income.
(4)		Included as a component of Placement fees and other interest income in the Condensed Consolidated Statements of Income.

Total repurchased loans declined to $193.3 million as of June 30, 2026, down from $221.6 million as of December 31, 2025. Since the end of the second quarter, we exited $39.4 million of loans at prices that approximated our estimates, reducing our remaining repurchase exposure to $153.8 million, against which we have $41.7 million of reserves.
Of the $23.2 million of operating and credit-related charges this quarter, $18.0 million were credit-related. The credit-related charges were concentrated in loans associated with a small number of fraudulent sponsors we previously identified and were largely driven by the default of a previously repurchased portfolio of loans, and an agreement to increase our loss-sharing with Fannie Mae on a $15.9 million defaulted portfolio of loans in lieu of repurchasing them.
Last year, we began a fraud investigation in coordination with Freddie Mac that identified a small group of fraudulent sponsors. 95% of the credit-related losses we have taken against our repurchased loans are associated with those sponsors. During the second quarter, we concluded that investigation with Freddie Mac, and we do not expect any further repurchases associated with the investigation.
We are actively executing our disposition strategy to reduce our repurchase exposure. We expect to fully exit the remaining assets in this portfolio by early next year, and any future credit-related losses will be driven by the difference between the ultimate selling prices relative to our current estimates.

CAPITAL SOURCES AND USES

On August 5, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the third quarter of 2026. The dividend will be paid on September 3, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of August 20, 2026.

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 Stock Repurchase Program”). During the first quarter of 2026, the Company repurchased 283 thousand shares under the 2026 Stock Repurchase Program at a weighted-average price of $47.13 per share and immediately retired the shares, reducing stockholders’ equity by $13.3 million. The Company did not repurchase any shares during the second quarter of 2026. As of June 30, 2026, the Company had $61.7 million of authorized share repurchase capacity remaining under the 2026 Stock Repurchase Program.

Any repurchases made pursuant to the 2026 Stock 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, August 6, 2026, at 8:30 a.m. EDT
*Phone:*		(800) 330-6710 from within the United States; (312) 471-1353 from outside the United States
*Confirmation Code:*		3173235
*Webcast Link:*		https://event.webcasts.com/starthere.jsp?ei=1752016&tp_key=91f9b11ccb

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 of guaranty obligation, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment, loan repurchase losses 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 of guaranty obligation, 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.”

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
Condensed Consolidated Balance Sheets
*Unaudited*

	June 30,		March 31,		December 31,			September 30,		June 30,
(in thousands)	2026		2026		2025			2025		2025
Assets
Cash and cash equivalents	$	160,858	$	192,527	$	299,315		$	274,828	$	233,712
Restricted cash		25,782		34,419		22,772			44,462		41,090
Pledged securities, at fair value		234,525		228,646		224,954			221,730		218,435
Loans held for sale, at fair value		1,382,958		2,546,860		1,436,350			2,197,739		1,177,837
Mortgage servicing rights		793,351		795,754		808,145			805,975		817,814
Goodwill		868,710		868,710		868,710			868,710		868,710
Other intangible assets		134,369		138,123		141,877			145,631		149,385
Receivables, net		476,851		424,393		419,358			374,316		360,646
Committed investments in tax credit equity		170,671		265,368		241,401			257,564		194,479
Other assets		645,529		670,660		596,596			606,320		612,932
Total assets	$	4,893,604	$	6,165,460	$	5,059,478		$	5,797,275	$	4,675,040

Liabilities
Warehouse notes payable	$	1,384,282	$	2,535,227	$	1,420,272		$	2,175,157	$	1,157,234
Corporate notes payable		820,948		825,816		829,218			829,909		828,657
Allowance for risk-sharing obligations		49,081		38,673		37,546			34,140		33,191
Commitments to fund investments in tax credit equity		174,093		256,121		219,949			223,788		168,863
Other liabilities		744,448		775,837		806,631			756,815		725,297
Total liabilities	$	3,172,852	$	4,431,674	$	3,313,616		$	4,019,809	$	2,913,242

Temporary Equity
Profit interests of a wholly owned subsidiary subject to possible redemption	$	909	$	752	$	(1,036	)	$	—	$	—

Stockholders' Equity
Common stock	$	333	$	332	$	334		$	333	$	333
Additional paid-in capital		462,194		454,215		450,434			444,127		438,129
Accumulated other comprehensive income (loss)		612		1,203		1,876			1,833		2,764
Retained earnings		1,243,903		1,264,446		1,282,390			1,319,274		1,308,792
Total stockholders’ equity	$	1,707,042	$	1,720,196	$	1,735,034		$	1,765,567	$	1,750,018
Noncontrolling interests		12,801		12,838		11,864			11,899		11,780
Total permanent equity	$	1,719,843	$	1,733,034	$	1,746,898		$	1,777,466	$	1,761,798
Commitments and contingencies		—		—		—			—		—
Total liabilities, temporary equity, and permanent equity	$	4,893,604	$	6,165,460	$	5,059,478		$	5,797,275	$	4,675,040

Walker & Dunlop, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
*Unaudited*

	Quarterly Trends															Six months ended
																June 30,
(in thousands, except per share amounts)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			2026			2025
Revenues
Origination fees	$	92,893		$	88,532		$	103,614		$	97,845		$	94,309		$	181,425		$	140,690
MSR income		47,817			46,773			50,060			48,657			53,153			94,590			80,964
Servicing fees		86,700			85,437			86,339			85,189			83,693			172,137			165,914
Property sales broker fees		12,787			13,179			28,488			26,546			14,964			25,966			28,485
Investment management fees		6,907			10,226			11,192			6,178			7,577			17,133			17,259
Net warehouse interest income (expense)		369			25			(909	)		(2,035	)		(1,760	)		394			(2,546	)
Placement fees and other interest income		32,440			32,704			37,085			46,302			35,986			65,144			69,197
Other revenues		26,777			24,455			24,155			28,993			31,318			51,232			56,644
Total revenues	$	306,690		$	301,331		$	340,024		$	337,675		$	319,240		$	608,021		$	556,607

Expenses
Personnel	$	162,909		$	152,829		$	187,113		$	177,418		$	161,888		$	315,738		$	283,278
Amortization and depreciation		60,699			62,964			62,084			60,041			58,936			123,663			116,557
Provision (benefit) for credit losses		20,966			4,118			3,105			949			1,820			25,084			5,532
Interest expense on corporate debt		15,260			14,902			15,983			16,451			16,767			30,162			32,281
Indemnified and repurchased loan expenses		6,884			10,061			35,784			3,526			683			16,945			1,540
Other operating expenses		37,898			30,507			54,512			33,353			32,772			68,405			65,801
Total expenses	$	304,616		$	275,381		$	358,581		$	291,738		$	272,866		$	579,997		$	504,989
Income (loss) before taxes	$	2,074		$	25,950		$	(18,557	)	$	45,937		$	46,374		$	28,024		$	51,618
Income tax expense (benefit)		(764	)		8,022			(5,447	)		12,516			12,425			7,258			14,944
Net income (loss) before noncontrolling interests and temporary equity holders	$	2,838		$	17,928		$	(13,110	)	$	33,421		$	33,949		$	20,766		$	36,674
Less: net income (loss) from noncontrolling interests		12			974			(36	)		(31	)		(3	)		986			(32	)
Less: net income (loss) attributable to temporary equity holders		(180	)		1,083			837			—			—			903			—
Walker & Dunlop net income (loss)	$	3,006		$	15,871		$	(13,911	)	$	33,452		$	33,952		$	18,877		$	36,706
Other comprehensive income (loss), net of tax		(591	)		(673	)		43			(931	)		1,469			(1,264	)		2,178
Walker & Dunlop comprehensive income (loss)	$	2,415		$	15,198		$	(13,868	)	$	32,521		$	35,421		$	17,613		$	38,884

Effective Tax Rate		(37	)%		31	%		29	%		27	%		27	%		26	%		29	%

Basic earnings (loss) per share	$	0.09		$	0.46		$	(0.41	)	$	0.98		$	1.00		$	0.55		$	1.08
Diluted earnings (loss) per share		0.09			0.46			(0.41	)		0.98			0.99			0.55			1.07
Cash dividends paid per common share		0.68			0.68			0.67			0.67			0.67			1.36			1.34

Basic weighted-average shares outstanding		33,263			33,394			33,388			33,376			33,358			33,328			33,311
Diluted weighted-average shares outstanding		33,275			33,411			33,410			33,397			33,371			33,343			33,333

SUPPLEMENTAL OPERATING DATA
*Unaudited*

	Quarterly Trends																Six months ended
																	June 30,
(in thousands, except per share data and unless otherwise noted)	Q2 2026			Q1 2026			Q4 2025				Q3 2025			Q2 2025			2026			2025
Transaction Volume:
Components of Debt Financing Volume
Fannie Mae	$	3,087,806		$	1,553,899		$	2,785,231			$	2,141,092		$	3,114,308		$	4,641,705		$	4,626,102
Freddie Mac		1,310,879			3,124,128			2,023,592				3,664,380			1,752,597			4,435,007			2,560,844
Ginnie Mae - HUD		413,839			481,384			153,748				325,169			288,449			895,223			436,607
Brokered ⁽¹⁾		7,402,029			6,503,051			8,675,937				4,512,729			6,335,071			13,905,080			8,888,014
Principal Lending and Investing ⁽²⁾		319,650			87,900			167,700				199,250			147,800			407,550			323,300
Total Debt Financing Volume	$	12,534,203		$	11,750,362		$	13,806,208			$	10,842,620		$	11,638,225		$	24,284,565		$	16,834,867
Property Sales Volume		1,897,246			1,910,300			4,524,142				4,672,875			2,313,585			3,807,546			4,152,875
Total Transaction Volume	$	14,431,449		$	13,660,662		$	18,330,350			$	15,515,495		$	13,951,810		$	28,092,111		$	20,987,742

Key Performance Metrics:
Operating margin		1	%		9	%		(5	)	%		14	%		15	%		5	%		9	%
Return on equity		1			4			(3	)			8			8			2			4
Walker & Dunlop net income (loss)	$	3,006		$	15,871		$	(13,911	)		$	33,452		$	33,952		$	18,877		$	36,706
Adjusted EBITDA ⁽³⁾		62,129			73,782			38,755				82,084			76,811			135,911			141,777
Diluted earnings (loss) per share		0.09			0.46			(0.41	)			0.98			0.99			0.55			1.07
Adjusted core EPS ⁽⁴⁾		1.19			1.02			0.28				1.22			1.15			2.19			2.00

Key Expense Metrics (as a percentage of total revenues):
Personnel expense		53	%		51	%		55		%		53	%		51	%		52	%		51	%
Other operating expenses		12			10			16				10			10			11			12
Key Revenue Metrics (as a percentage of debt financing volume):
Origination fee rate ⁽⁵⁾		0.74	%		0.76	%		0.75		%		0.90	%		0.82	%		0.75	%		0.84	%
Agency MSR rate ⁽⁶⁾		0.99			0.91			1.01				0.79			1.03			0.95			1.06

Other Data:
Market capitalization at period end	$	1,877,955		$	1,522,458		$	2,048,798			$	2,847,907		$	2,395,939
Closing share price at period end	$	54.70		$	44.38		$	60.15			$	83.62		$	70.48
Average headcount		1,479			1,471			1,464				1,438			1,400

Components of Servicing Portfolio (end of period):
Fannie Mae	$	74,141,705		$	73,498,820		$	72,708,372			$	71,006,342		$	70,042,909
Freddie Mac		45,515,813			44,836,263			42,595,441				40,473,401			39,433,013
Ginnie Mae - HUD		11,890,066			11,646,914			11,563,020				11,298,108			11,008,314
Brokered ⁽⁷⁾		14,233,764			16,385,040			17,111,320				16,553,827			16,864,888
Principal Lending and Investing ⁽⁸⁾		17,500			17,500			—				—			—
Total Servicing Portfolio	$	145,798,848		$	146,384,537		$	143,978,153			$	139,331,678		$	137,349,124
Assets under management ⁽⁹⁾		18,674,671			18,530,780			18,631,100				18,521,907			18,623,451
Total Managed Portfolio	$	164,473,519		$	164,915,317		$	162,609,253			$	157,853,585		$	155,972,575

Key Servicing Portfolio Metrics (end of period):
Custodial escrow account deposits (in billions)	$	3.1		$	2.5		$	3.1			$	2.8		$	2.7
Weighted-average servicing fee rate (basis points)		23.4			23.4			23.6				24.0			24.1
Weighted-average remaining servicing portfolio term (years)		7.1			7.1			7.2				7.4			7.4

____________________
(1)		Brokered transactions for life insurance companies, commercial banks, and other capital sources.
(2)		Includes debt financing volumes from our interim lending platform and 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)		Consists of interim loans not managed for our interim loan joint venture.
(9)		Walker & Dunlop Affordable Equity 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*

	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2026			2026			2025			2025			2025
Risk-sharing servicing portfolio:
Fannie Mae Full Risk	$	67,515,995		$	65,886,235		$	65,087,136		$	63,382,256		$	61,486,070
Fannie Mae Modified Risk		6,625,710			7,612,585			7,621,236			7,624,086			8,556,839
Freddie Mac Modified Risk		15,000			15,000			15,000			10,000			10,000
Total risk-sharing servicing portfolio	$	74,156,705		$	73,513,820		$	72,723,372		$	71,016,342		$	70,052,909

Non-risk-sharing servicing portfolio:
Freddie Mac No Risk	$	45,500,813		$	44,821,263		$	42,580,441		$	40,463,401		$	39,423,013
GNMA - HUD No Risk		11,890,066			11,646,914			11,563,020			11,298,108			11,008,314
Brokered		14,233,764			16,385,040			17,111,320			16,553,827			16,864,888
Total non-risk-sharing servicing portfolio	$	71,624,643		$	72,853,217		$	71,254,781		$	68,315,336		$	67,296,215
Total loans serviced for others	$	145,781,348		$	146,367,037		$	143,978,153		$	139,331,678		$	137,349,124

Loans held for investment (full risk)	$	160,391		$	56,203		$	36,926		$	36,926		$	36,926
Interim Loan Joint Venture Managed Loans ⁽¹⁾		17,099			17,099			32,965			76,215			76,215

At-risk servicing portfolio ⁽²⁾	$	70,499,346		$	69,444,656		$	68,649,960		$	66,946,180		$	65,378,944
Maximum exposure to at-risk portfolio ⁽³⁾		14,433,243			14,221,298			14,052,667			13,704,585			13,382,410
Defaulted loans ⁽⁴⁾		198,638			167,456			158,821			139,020			108,530

Defaulted loans as a percentage of the at-risk portfolio		0.28	%		0.24	%		0.23	%		0.21	%		0.17	%
Allowance for risk-sharing as a percentage of the at-risk portfolio		0.07			0.06			0.05			0.05			0.05
Allowance for risk-sharing as a percentage of maximum exposure		0.34			0.27			0.27			0.25			0.25

____________________
(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 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.

(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 pre-securitized 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															Six months ended
																June 30,
(in thousands)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			2026			2025
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA
Walker & Dunlop Net Income (Loss)	$	3,006		$	15,871		$	(13,911	)	$	33,452		$	33,952		$	18,877		$	36,706
Income tax expense (benefit)		(764	)		8,022			(5,447	)		12,516			12,425			7,258			14,944
Interest expense on corporate debt		15,260			14,902			15,983			16,451			16,767			30,162			32,281
Amortization and depreciation		60,699			62,964			62,084			60,041			58,936			123,663			116,557
Provision (benefit) for credit losses		20,966			4,118			3,105			949			1,820			25,084			5,532
Loan repurchase losses ⁽¹⁾		1,664			6,950			20,092			—			—			8,614			—
Net write-offs		—			(491	)		—			—			—			(491	)		—
Stock-based compensation expense		9,115			8,219			6,909			7,332			6,064			17,334			12,506
Write-off of unamortized issuance costs from corporate debt paydown ⁽²⁾		—			—			—			—			—			—			4,215
MSR income		(47,817	)		(46,773	)		(50,060	)		(48,657	)		(53,153	)		(94,590	)		(80,964	)
Adjusted EBITDA	$	62,129		$	73,782		$	38,755		$	82,084		$	76,811		$	135,911		$	141,777

____________________
(1)		Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.
(2)		Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.

CONDENSED SEGMENTS STATEMENTS OF INCOME
*Unaudited*

Segment Results (dollars in thousands, except per share data and ratios)	For the three months ended June 30, 2026
Revenues	CM			SAM				Corporate		Consolidated
Loan origination and debt brokerage fees, net	$	90,647		$	2,246		$	—		$	92,893
Fair value of expected net cash flows from servicing, net of guaranty obligation		47,817			—			—			47,817
Servicing fees		—			86,700			—			86,700
Property sales broker fees		12,787			—			—			12,787
Investment management fees		—			6,907			—			6,907
Net warehouse interest income (expense)		140			229			—			369
Placement fees and other interest income		—			30,065			2,375			32,440
Other revenues		17,395			7,447			1,935			26,777
Total revenues	$	168,786		$	133,594		$	4,310		$	306,690

Expenses
Personnel	$	116,058		$	21,741		$	25,110		$	162,909
Amortization and depreciation		1,146			57,181			2,372			60,699
Provision (benefit) for credit losses		—			20,966			—			20,966
Interest expense on corporate debt ⁽¹⁾		4,025			9,893			1,342			15,260
Indemnified and repurchased loan expenses		—			6,884			—			6,884
Other operating expenses		10,530			7,640			19,728			37,898
Total expenses	$	131,759		$	124,305		$	48,552		$	304,616
Income (loss) before taxes	$	37,027		$	9,289		$	(44,242	)	$	2,074
Income tax expense (benefit) ⁽²⁾		7,486			780			(9,030	)		(764	)
Net income (loss) before noncontrolling interests and temporary equity holders	$	29,541		$	8,509		$	(35,212	)	$	2,838
Less: net income (loss) from noncontrolling interests	$	—			12			—		$	12
Less: net income (loss) attributable to temporary equity holders		(180	)		—			—			(180	)
Walker & Dunlop net income (loss)	$	29,721		$	8,497		$	(35,212	)	$	3,006

Diluted EPS	$	0.89		$	0.25		$	(1.05	)	$	0.09
Operating margin		22	%		7	%		(1,026	)%		1	%


Segment Results (dollars in thousands, except per share data and ratios)	For the three months ended June 30, 2025
Revenues	CM			SAM			Corporate			Consolidated
Loan origination and debt brokerage fees, net	$	93,764		$	545		$	—		$	94,309
Fair value of expected net cash flows from servicing, net of guaranty obligation		53,153			—			—			53,153
Servicing fees		—			83,693			—			83,693
Property sales broker fees		14,964			—			—			14,964
Investment management fees		—			7,577			—			7,577
Net warehouse interest income (expense)		(1,760	)		—			—			(1,760	)
Placement fees and other interest income		—			32,651			3,335			35,986
Other revenues		12,670			16,269			2,379			31,318
Total revenues	$	172,791		$	140,735		$	5,714		$	319,240

Expenses
Personnel	$	116,441		$	22,743		$	22,704		$	161,888
Amortization and depreciation		1,146			55,882			1,908			58,936
Provision (benefit) for credit losses		—			1,820			—			1,820
Interest expense on corporate debt ⁽¹⁾		4,468			10,810			1,489			16,767
Indemnified and repurchased loan expenses		—			683			—			683
Other operating expenses		5,309			5,831			21,632			32,772
Total expenses	$	127,364		$	97,769		$	47,733		$	272,866
Income (loss) before taxes	$	45,427		$	42,966		$	(42,019	)	$	46,374
Income tax expense (benefit) ⁽²⁾		12,285			5,428			(5,288	)		12,425
Net income (loss) before noncontrolling interests	$	33,142		$	37,538		$	(36,731	)	$	33,949
Less: net income (loss) from noncontrolling interests		—			(3	)		—			(3	)
Walker & Dunlop net income (loss)	$	33,142		$	37,541		$	(36,731	)	$	33,952

Diluted EPS	$	0.97		$	1.10		$	(1.08	)	$	0.99
Operating margin		26	%		31	%		(735	)%		15	%

____________________
(1)		Interest expense on corporate debt is allocated to each segment based on proportional usage. Expense decreased due to lower average interest rates.
(2)		Income tax expense is allocated to each segment based on income before taxes, except for significant one-time tax items. Tax expense decreased to a benefit due to lower income before taxes and a lower estimated annual effective tax rate driven by higher low income housing tax credits.

ADJUSTED CORE EPS RECONCILIATION
*Unaudited*

	Quarterly Trends															Six months ended
																June 30,
(in thousands)	Q2 2026			Q1 2026			Q4 2025			Q3 2025			Q2 2025			2026			2025
Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income
Walker & Dunlop Net Income (Loss)	$	3,006		$	15,871		$	(13,911	)	$	33,452		$	33,952		$	18,877		$	36,706
Provision (benefit) for credit losses		20,966			4,118			3,105			949			1,820			25,084			5,532
Loan repurchase losses ⁽¹⁾		1,664			6,950			20,092			—			—			8,614			—
Net write-offs		—			(491	)		—			—			—			(491	)		—
Amortization and depreciation		60,699			62,964			62,084			60,041			58,936			123,663			116,557
MSR income		(47,817	)		(46,773	)		(50,060	)		(48,657	)		(53,153	)		(94,590	)		(80,964	)
Contingent consideration accretion and fair value adjustments		434			(299	)		(8,226	)		18			41			135			81
Write-off of unamortized issuance costs from corporate debt paydown ⁽²⁾		—			—			—			—			—			—			4,215
Income tax expense adjustment ⁽³⁾		719			(6,908	)		(3,662	)		(3,856	)		(2,429	)		(6,189	)		(13,784	)
Adjusted Core Net Income	$	39,671		$	35,432		$	9,422		$	41,947		$	39,167		$	75,103		$	68,343

Reconciliation of Diluted EPS to Adjusted core EPS
Walker & Dunlop Net Income (Loss)	$	3,006		$	15,871		$	(13,911	)	$	33,452		$	33,952		$	18,877		$	36,706
Diluted weighted-average shares outstanding		33,275			33,411			33,410			33,397			33,371			33,343			33,333
Diluted earnings (loss) per share	$	0.09		$	0.46		$	(0.41	)	$	0.98		$	0.99		$	0.55		$	1.07

Adjusted Core Net Income	$	39,671		$	35,432		$	9,422		$	41,947		$	39,167		$	75,103		$	68,343
Diluted weighted-average shares outstanding		33,275			33,411			33,410			33,397			33,371			33,343			33,333
Adjusted core EPS	$	1.19		$	1.02		$	0.28		$	1.22		$	1.15		$	2.19		$	2.00

____________________
(1)		Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.
(2)		Presented as a component of Other operating expenses on the Condensed 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 Condensed Consolidated Statements of Income in this press release or (ii) estimated annual effective rate.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20260806887696/en/

Headquarters:
7272 Wisconsin Avenue, Suite 1300
Bethesda, Maryland 20814
Phone 301.215.5500
info@walkeranddunlop.com

Investors:
Amy Hopkins
SVP, Investor Relations
Phone 443.873.5536
investorrelations@walkeranddunlop.com

Media:
Carol McNerney
Chief Marketing Officer
Phone 301.215.5515
info@walkeranddunlop.com

Source: Walker & Dunlop, Inc.

Walker & Dunlop Reports Second Quarter 2026 Financial Results

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