Walker & Dunlop Reports Third Quarter 2026 Financial Results

Defaulted loans increased to $255 million from $199 million in the preceding quarter and $139 million a year earlier.

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

• Net loss of $37.3 million and diluted loss per share of $1.15 primarily reflect charges associated with the accelerated resolution of legacy loan repurchases and indemnifications. These charges reflect deliberate actions to accelerate the disposition of repurchased and indemnified assets related to the GSE investigations, which are now completed and are described in more detail below

• Total revenues of $298.4 million declined 12% from Q3’25, in line with the decrease in transaction volumes, and primarily reflecting a greater mix of brokered transactions relative to GSE lending. W&D’s year-to-date GSE market share increased 290 basis points, to 13.7%, from the prior-year period

• Adjusted core EPS⁽¹⁾ was $0.92 and declined 25% compared to the prior year period due primarily to lower revenue and increased costs within the repurchased portfolio; these costs are expected to be eliminated by early 2027

• The servicing portfolio increased to $146.6 billion as of September 30, 2026, up 5% from the prior-year period, reinforcing the stability of W&D’s recurring revenue base, cash flow and the strength of its platform

“Q3 2026 saw an 84 basis point increase in the Ten-Year Treasury rate which increased volatility and slowed down capital markets activity across the country. Despite these headwinds, our revenues remained resilient, with total debt financing volume down only 5% from Q3 2025," said Willy Walker, Chairman and CEO. "During the quarter we received notice from Fannie Mae that they have completed their fraud review of Walker & Dunlop, similar to Freddie Mac in Q2 2026, and we do not expect any further buybacks or indemnifications related to these investigations going forward. Importantly, we are taking action to address the legacy credit issues associated with these matters and put them firmly behind us. We reclassified all of the repurchased assets and non-performing notes to "held for sale," recognized a significant charge to Q3 earnings, and intend to dispose of these assets by early 2027. While these actions have a meaningful near-term impact on earnings, they reflect our commitment to proactively resolving credit issues, reducing risk on our balance sheet, and strengthening our financial position for the future. We believe that the completion of the GSE investigations and the sale of the repurchased loans, allows Walker & Dunlop to move beyond the borrower fraud issues that have consumed us, and our financial performance, for the past two years.”

Walker continued, “We believe there is a tremendous opportunity ahead as commercial real estate owners navigate the upcoming wave of debt maturities and evaluate whether to refinance, sell, or recapitalize their properties. We have refined our strategy to focus on the multifamily market where W&D has a massive brand and there is nearly $1 trillion of maturing loans over the next four years. We are leveraging technology to improve productivity, strengthen client relationships, and reduce our fixed cost structure, and underwent a reduction in force and reorganization in Q3. While higher interest rates and lower asset values present significant challenges for property owners, as a scaled service provider with an enormous tangible addressable market in our company's core competency, we now have the ability to execute, grow, and get back to the outstanding shareholder returns Walker & Dunlop has been known for.”

_____________
(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.”

TOTAL TRANSACTION VOLUME
(dollars in millions)		Q3 2026			Q3 2025			$ Change				% Change
Fannie Mae		$	1,282		$	2,141		$	(859	)		(40	)%
Freddie Mac			1,354			3,664			(2,310	)		(63	)
Ginnie Mae - HUD			231			325			(94	)		(29	)
Brokered (1)			7,151			4,513			2,638			58
Principal Lending and Investing (2)			266			199			67			34
Debt financing volume		$	10,284		$	10,842		$	(558	)		(5	)%
Property sales volume			3,494			4,673			(1,179	)		(25	)
Total transaction volume		$	13,778		$	15,515		$	(1,737	)		(11	)%

_____________
(1)		Brokered transactions 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 debt financing volume declined 5%, as 58% growth in brokered debt volume was offset by declines in Agency lending volumes
• W&D continues to grow our presence in the non-Agency multifamily market while simultaneously gaining 290 basis points of market share with the GSEs on a year-to-date basis
• Property sales activity increased sequentially this quarter as activity increased despite market volatility, and while operating fundamentals are modestly improving, continued interest rate volatility delayed some investment decisions during the quarter

FINANCIAL RESULTS - CAPITAL MARKETS ("CM")
(in millions, unless otherwise noted)			Q3 2026			Q3 2025		% Change
Total revenues		$	148		$	181		(18	)%
Total expenses			133			142		(7	)
Walker & Dunlop net income (loss)		$	11		$	28		(59	)%
Key revenue metrics:
Origination fee rate (1)			0.79	%		0.90	%
Agency MSR rate (2)			1.02			0.79

_____________
The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders. For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.”
(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 18% compared to total transaction volume declines of 11% primarily due to a higher proportion of lower fee brokered transactions relative to GSE lending, resulting in lower origination fees and MSR income. While the GSE’s lending volumes declined 30% market wide this quarter, our platform diversification and expansion in the non-Agency multifamily market has strengthened our ability to serve clients across multiple financing channels, enabling us to capture more business opportunities, and enhance our competitiveness in a challenging market environment.
• Net warehouse interest income improved to net income in the current quarter, reflecting the normalization of the yield curve
• Other revenues for the segment improved, driven by growth in investment banking fees, appraisal and valuation services, and application fees

   

MANAGED PORTFOLIO
(dollars in millions, unless otherwise noted)		Q3 2026			Q3 2025			$ Change				% Change
Fannie Mae		$	74,324		$	71,006		$	3,318				5	%
Freddie Mac			45,976			40,474			5,502				14
Ginnie Mae - HUD			12,026			11,298			728				6
Brokered			14,231			16,554			(2,323	)			(14	)
Principal Lending and Investing			74			-			74				N/A
Total Servicing Portfolio		$	146,631		$	139,332		$	7,299				5	%
Assets under management			19,192			18,522			670				4
Total Managed Portfolio		$	165,823		$	157,854		$	7,969				5	%
Weighted-average servicing fee rate at period end (basis points)			23.2			24.0			(0.8	)			(3	)
Weighted-average remaining servicing portfolio term at period end (years)			6.9			7.4			(0.5	)			(7	)

• Continued origination activity over the past year expanded the servicing portfolio to $146.6 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 $7 billion of net loans to the servicing portfolio. Approximately $16.9 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 its servicing relationships for one of its funds during the second quarter of 2026. We continue to have a strong servicing relationship with that lender, and we retain exclusive servicing rights for a different fund. Growing our servicing portfolio remains a key component of our strategy.
• Mortgage servicing rights (“MSRs”) continued to deliver significant long-term value. As of September 30, 2026, MSRs associated with our servicing portfolio are reported at an amortized cost of $775.5 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 $19.2 billion as of September 30, 2026, and consisted of $16.4 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, $1.9 billion of debt funds, and $0.8 billion of equity funds managed by our registered investment adviser, WDIP

   

FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT ("SAM")
(in millions)			Q3 2026				Q3 2025		% Change
Total revenues		$	148			$	151		(2	)%
Total expenses			164				100		63
Walker & Dunlop net income (loss)		$	(12	)		$	37		(133	)%

_____________

The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders. For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.”

• Segment results include $63 million of repurchase related charges, comprised of $56 million of non-cash valuation adjustments related to our decision to accelerate resolution of legacy loan repurchases and $7 million of operating expenses associated with the aggregate portfolio. We are taking deliberate action to more quickly dispose of these assets and eliminate ongoing carrying costs for this portfolio, mitigate future uncertainty around the path and timing of disposition, and increase the consistency and predictability of our financial performance.
• The Servicing & Asset Management segment continues to benefit from the stable recurring servicing fees from the servicing portfolio
• Servicing fees increased 3% year-over-year, however, total revenue declined 2% due primarily to lower placement fee earnings from escrow accounts as a result of a decrease in the Effective Federal Funds Rate this quarter compared to the year ago quarter
• The underlying fundamentals of the segment remain strong, and continued execution from our Capital Markets business in the coming quarters should drive additional servicing portfolio expansion

KEY CREDIT TRENDS
(in millions, unless otherwise noted)			Q3 2026			Q2 2026			Q1 2026			Q4 2025			Q3 2025
Defaulted loans (1)		$	255		$	199		$	167		$	159		$	139
Key credit metrics (as a % of the at-risk portfolio (1)):
Defaulted loans			0.36	%		0.28	%		0.24	%		0.23	%		0.21	%
Allowance for risk-sharing			0.09			0.07			0.06			0.05			0.05
Key credit metrics (as a % of maximum exposure (1)):
Allowance for risk-sharing			0.44	%		0.34	%		0.27	%		0.27	%		0.25	%

_____________
(1)		Please refer to the section of this press release below titled “Key Credit Metrics.”

• The at-risk servicing portfolio continues to demonstrate strong underlying credit performance with low default levels. Growth in the at-risk portfolio reflects continued Fannie Mae loan production over the past year, while our credit exposure remains concentrated in loans backed by multifamily assets.
• Based on the latest property level financial information available, our at-risk portfolio operated at a weighted average debt service coverage ratio of 2x and the weighted average underwritten loan-to-value is approximately 61%. Less than 1% of our loans were below a 1.0 times debt service coverage ratio, and were underwritten above a 75% loan-to-value, reflecting the discipline of our underwriting process.

   

FINANCIAL RESULTS - CORPORATE
(in millions)			Q3 2026				Q3 2025			% Change
Total revenues		$	2			$	6			(62	)%
Total expenses			49				49			0
Walker & Dunlop net income (loss)		$	(36	)		$	(31	)		16	%

_____________

The table above excludes income tax expense (benefit). For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.”

• The Corporate segment is structured to support continued scaling of our business. Revenues for the segment are down primarily due to lower earnings on co-invested capital in funds we manage. Unchanged corporate expenses this quarter reflect our disciplined cost management as the segment continues to support growth of our Capital Markets and Servicing & Asset Management businesses.

INDEMNIFIED AND REPURCHASED LOANS
		Three Months Ended September 30,							Nine Months Ended September 30,
(in millions)		2026				2025			2026				2025
Initial loan repurchase costs		$	—			$	—		$	1			$	—
Indemnified and repurchased loan operating costs			7				4			14				5
Expected principal losses on loan repurchase ("loan repurchase losses")			—				—			9				—
Fair value adjustments			56				—			56				—
Indemnified and repurchased loan expenses, net		$	63			$	4		$	80			$	5
Provision (benefit) for loan losses (1)		$	(19	)		$	—		$	(6	)		$	1
Provision (benefit) for risk-sharing obligations (2)			8				—			14				—
Other operating expenses (3)			4				—			6				—
Other interest income (4)			—				—			(2	)			—
Total net expense impact of indemnified and repurchased loans		$	56			$	4		$	92			$	6

_____________
(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 of the provision for risk-sharing obligations under our agreement with Fannie Mae to increase our loss sharing on $86.6 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.

• During the third quarter, we exited $39.4 million of repurchased loans at prices that approximated our carrying values at the end of the second quarter 2026. These sales reduced total repurchased loans to $164.8 million as of September 30, 2026, down from $221.6 million as of December 31, 2025.
• During the third quarter, we recognized $56 million of valuation adjustments for the remaining repurchased loan portfolio in connection with our decision to accelerate the disposition of the remaining assets. The carrying value of the repurchased portfolio is $76.9 million at September 30, 2026. We also incurred $7 million of ongoing operating expenses this quarter to operate the underlying assets.
• The majority of these loans are concentrated in a small number of sponsors involved in the previously identified instances of borrower fraud. We have launched the marketing process for all non-performing repurchased loans and assets, and as of today approximately $25 million of the portfolio has already been placed under a letter of intent. We expect to fully exit the remaining assets in this portfolio by early next year, and any future fair value adjustments will be driven by the difference between the ultimate selling prices relative to our current estimates.

CAPITAL SOURCES AND USES

On November 4, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the fourth quarter of 2026. The dividend will be paid on December 4, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of November 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 or third quarters of 2026. As of September 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, November 5, 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:		1116356
Webcast Link:		https://event.webcasts.com/starthere.jsp?ei=1752018&tp_key=ac902a78b6

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” and “Adjusted Core EPS Reconciliation.”

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 and any potential losses we may incur as a result, including in connection with our decision to accelerate our disposition and liquidation strategy for previously repurchased and indemnified loans and associated collateral.

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
	September 30,				June 30,			March 31,			December 31,				September 30,
(in thousands)	2026				2026			2026			2025				2025
Assets
Cash and cash equivalents	$	183,241			$	160,858		$	192,527		$	299,315			$	274,828
Restricted cash		22,889				25,782			34,419			22,772				44,462
Pledged securities, at fair value		239,350				234,525			228,646			224,954				221,730
Loans held for sale, at fair value		694,127				1,382,958			2,546,860			1,436,350				2,197,739
Mortgage servicing rights		775,540				793,351			795,754			808,145				805,975
Goodwill		868,710				868,710			868,710			868,710				868,710
Other intangible assets		130,615				134,369			138,123			141,877				145,631
Receivables, net		460,102				476,851			424,393			419,358				374,316
Committed investments in tax credit equity		226,879				170,671			265,368			241,401				257,564
Other assets		658,560				645,529			670,660			596,596				606,320
Total assets	$	4,260,013			$	4,893,604		$	6,165,460		$	5,059,478			$	5,797,275
Liabilities
Warehouse notes payable	$	762,518			$	1,384,282		$	2,535,227		$	1,420,272			$	2,175,157
Corporate notes payable		804,609				820,948			825,816			829,218				829,909
Allowance for risk-sharing obligations		63,156				49,081			38,673			37,546				34,140
Commitments to fund investments in tax credit equity		221,474				174,093			256,121			219,949				223,788
Other liabilities		741,369				744,448			775,837			806,631				756,815
Total liabilities	$	2,593,126			$	3,172,852		$	4,431,674		$	3,313,616			$	4,019,809
Temporary Equity
Profit interests of a wholly owned subsidiary subject to possible redemption	$	1,784			$	909		$	752		$	(1,036	)		$	—
Stockholders' Equity
Common stock	$	333			$	333		$	332		$	334			$	333
Additional paid-in capital		469,748				462,194			454,215			450,434				444,127
Accumulated other comprehensive income (loss)		(759	)			612			1,203			1,876				1,833
Retained earnings		1,182,969				1,243,903			1,264,446			1,282,390				1,319,274
Total stockholders’ equity	$	1,652,291			$	1,707,042		$	1,720,196		$	1,735,034			$	1,765,567
Noncontrolling interests		12,812				12,801			12,838			11,864				11,899
Total permanent equity	$	1,665,103			$	1,719,843		$	1,733,034		$	1,746,898			$	1,777,466
Commitments and contingencies		—				—			—			—				—
Total liabilities, temporary equity, and permanent equity	$	4,260,013			$	4,893,604		$	6,165,460		$	5,059,478			$	5,797,275

Walker & Dunlop, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
Unaudited
	Quarterly Trends																				Nine months ended
																					September 30,
(in thousands, except per share amounts)	Q3 2026				Q2 2026				Q1 2026				Q4 2025				Q3 2025				2026				2025
Revenues
Origination fees	$	81,257			$	92,893			$	88,532			$	103,614			$	97,845			$	262,682			$	238,535
MSR income		29,196				47,817				46,773				50,060				48,657				123,786				129,621
Servicing fees		87,690				86,700				85,437				86,339				85,189				259,827				251,103
Property sales broker fees		19,780				12,787				13,179				28,488				26,546				45,746				55,031
Investment management fees		8,583				6,907				10,226				11,192				6,178				25,716				23,437
Net warehouse interest income (expense)		888				369				25				(909	)			(2,035	)			1,282				(4,581	)
Placement fees and other interest income		37,141				32,440				32,704				37,085				46,302				102,285				115,499
Other revenues		33,914				26,777				24,455				24,155				28,993				85,146				85,637
Total revenues	$	298,449			$	306,690			$	301,331			$	340,024			$	337,675			$	906,470			$	894,282
Expenses
Personnel	$	164,693			$	162,909			$	152,829			$	187,113			$	177,418			$	480,431			$	460,696
Amortization and depreciation		61,562				60,699				62,964				62,084				60,041				185,225				176,598
Provision (benefit) for credit losses		(4,232	)			20,966				4,118				3,105				949				20,852				6,481
Interest expense on corporate debt		15,330				15,260				14,902				15,983				16,451				45,492				48,732
Indemnified and repurchased loan expenses, net		63,072				6,884				10,061				35,784				3,526				80,017				5,066
Other operating expenses		45,198				37,898				30,507				54,512				33,353				113,603				99,154
Total expenses	$	345,623			$	304,616			$	275,381			$	358,581			$	291,738			$	925,620			$	796,727
Income (loss) before taxes	$	(47,174	)		$	2,074			$	25,950			$	(18,557	)		$	45,937			$	(19,150	)		$	97,555
Income tax expense (benefit)		(10,306	)			(764	)			8,022				(5,447	)			12,516				(3,048	)			27,460
Net income (loss) before noncontrolling interests and temporary equity holders	$	(36,868	)		$	2,838			$	17,928			$	(13,110	)		$	33,421			$	(16,102	)		$	70,095
Less: net income (loss) from noncontrolling interests		32				12				974				(36	)			(31	)			1,018				(63	)
Less: net income (loss) attributable to temporary equity holders		358				(180	)			1,083				837				—				1,261				—
Walker & Dunlop net income (loss)	$	(37,258	)		$	3,006			$	15,871			$	(13,911	)		$	33,452			$	(18,381	)		$	70,158
Other comprehensive income (loss), net of tax		(1,371	)			(591	)			(673	)			43				(931	)			(2,635	)			1,247
Walker & Dunlop comprehensive income (loss)	$	(38,629	)		$	2,415			$	15,198			$	(13,868	)		$	32,521			$	(21,016	)		$	71,405
Effective Tax Rate		22	%			(37	)%			31	%			29	%			27	%			16	%			28	%
Basic earnings (loss) per share	$	(1.15	)		$	0.09			$	0.46			$	(0.41	)		$	0.98			$	(0.63	)		$	2.05
Diluted earnings (loss) per share		(1.15	)			0.09				0.46				(0.41	)			0.98				(0.63	)			2.05
Cash dividends paid per common share		0.68				0.68				0.68				0.67				0.67				2.04				2.01
Basic weighted-average shares outstanding		33,284				33,263				33,394				33,388				33,376				33,313				33,333
Diluted weighted-average shares outstanding		33,284				33,275				33,411				33,410				33,397				33,313				33,355

SUPPLEMENTAL OPERATING DATA
Unaudited
	Quarterly Trends																	Nine months ended
																		September 30,
(in thousands, except per share data and unless otherwise noted)	Q3 2026				Q2 2026			Q1 2026			Q4 2025				Q3 2025			2026				2025
Transaction Volume:
Components of Debt Financing Volume
Fannie Mae	$	1,281,920			$	3,087,806		$	1,553,899		$	2,785,231			$	2,141,092		$	5,923,625			$	6,767,194
Freddie Mac		1,353,487				1,310,879			3,124,128			2,023,592				3,664,380			5,788,494				6,225,224
Ginnie Mae - HUD		230,965				413,839			481,384			153,748				325,169			1,126,188				761,776
Brokered (1)		7,151,472				7,402,029			6,503,051			8,675,937				4,512,729			21,056,552				13,400,743
Principal Lending and Investing (2)		266,250				319,650			87,900			167,700				199,250			673,800				522,550
Total Debt Financing Volume	$	10,284,094			$	12,534,203		$	11,750,362		$	13,806,208			$	10,842,620		$	34,568,659			$	27,677,487
Property Sales Volume		3,493,541				1,897,246			1,910,300			4,524,142				4,672,875			7,301,087				8,825,750
Total Transaction Volume	$	13,777,635			$	14,431,449		$	13,660,662		$	18,330,350			$	15,515,495		$	41,869,746			$	36,503,237
Key Performance Metrics:
Operating margin		(16	)%			1	%		9	%		(5	)%			14	%		(2	)%			11	%
Return on equity		(9	)			1			4			(3	)			8			(1	)			5
Walker & Dunlop net income (loss)	$	(37,258	)		$	3,006		$	15,871		$	(13,911	)		$	33,452		$	(18,381	)		$	70,158
Adjusted EBITDA (3)		61,093				62,129			73,782			38,755				82,084			197,004				223,861
Diluted earnings (loss) per share		(1.15	)			0.09			0.46			(0.41	)			0.98			(0.63	)			2.05
Adjusted core EPS (4)		0.92				1.19			1.02			0.28				1.22			3.60				3.23
Key Expense Metrics (as a percentage of total revenues):
Personnel expense		55	%			53	%		51	%		55	%			53	%		53	%			52	%
Other operating expenses		15				12			10			16				10			13				11
Key Revenue Metrics (as a percentage of debt financing volume):
Origination fee rate (5)		0.79	%			0.74	%		0.76	%		0.75	%			0.90	%		0.76	%			0.87	%
Agency MSR rate (6)		1.02				0.99			0.91			1.01				0.79			0.96				0.94
Other Data:
Market capitalization at period end	$	1,209,737			$	1,877,955		$	1,522,458		$	2,048,798			$	2,847,907
Closing share price at period end	$	35.11			$	54.70		$	44.38		$	60.15			$	83.62
Average headcount		1,488				1,479			1,471			1,464				1,438
Components of Servicing Portfolio (end of period):
Fannie Mae	$	74,324,325			$	74,141,705		$	73,498,820		$	72,708,372			$	71,006,342
Freddie Mac		45,976,529				45,515,813			44,836,263			42,595,441				40,473,401
Ginnie Mae - HUD		12,025,739				11,890,066			11,646,914			11,563,020				11,298,108
Brokered (7)		14,230,739				14,233,764			16,385,040			17,111,320				16,553,827
Principal Lending and Investing (8)		73,500				17,500			17,500			—				—
Total Servicing Portfolio	$	146,630,832			$	145,798,848		$	146,384,537		$	143,978,153			$	139,331,678
Assets under management (9)		19,191,703				18,674,671			18,530,780			18,631,100				18,521,907
Total Managed Portfolio	$	165,822,535			$	164,473,519		$	164,915,317		$	162,609,253			$	157,853,585
Key Servicing Portfolio Metrics (end of period):
Custodial escrow account deposits (in billions)	$	2.9			$	3.1		$	2.5		$	3.1			$	2.8
Weighted-average servicing fee rate (basis points)		23.2				23.4			23.4			23.6				24.0
Weighted-average remaining servicing portfolio term (years)		6.9				7.1			7.1			7.2				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, commercial banks, and other capital sources.
(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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2026			2026			2026			2025			2025
Risk-sharing servicing portfolio:
Fannie Mae Full Risk	$	67,786,267		$	67,515,995		$	65,886,235		$	65,087,136		$	63,382,256
Fannie Mae Modified Risk		6,538,058			6,625,710			7,612,585			7,621,236			7,624,086
Freddie Mac Modified Risk		15,000			15,000			15,000			15,000			10,000
Total risk-sharing servicing portfolio	$	74,339,325		$	74,156,705		$	73,513,820		$	72,723,372		$	71,016,342
Non-risk-sharing servicing portfolio:
Freddie Mac No Risk	$	45,961,529		$	45,500,813		$	44,821,263		$	42,580,441		$	40,463,401
GNMA - HUD No Risk		12,025,739			11,890,066			11,646,914			11,563,020			11,298,108
Brokered		14,230,739			14,233,764			16,385,040			17,111,320			16,553,827
Total non-risk-sharing servicing portfolio	$	72,218,007		$	71,624,643		$	72,853,217		$	71,254,781		$	68,315,336
Total loans serviced for others	$	146,557,332		$	145,781,348		$	146,367,037		$	143,978,153		$	139,331,678
Loans held for investment (full risk)	$	73,500		$	160,391		$	56,203		$	36,926		$	36,926
Interim Loan Joint Venture Managed Loans (1)		17,099			17,099			17,099			32,965			76,215
At-risk servicing portfolio (2)	$	70,704,547		$	70,499,346		$	69,444,656		$	68,649,960		$	66,946,180
Maximum exposure to at-risk portfolio (3)		14,470,064			14,433,243			14,221,298			14,052,667			13,704,585
Defaulted loans (4)		255,025			198,638			167,456			158,821			139,020
Defaulted loans as a percentage of the at-risk portfolio		0.36	%		0.28	%		0.24	%		0.23	%		0.21	%
Allowance for risk-sharing as a percentage of the at-risk portfolio		0.09			0.07			0.06			0.05			0.05
Allowance for risk-sharing as a percentage of maximum exposure		0.44			0.34			0.27			0.27			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 risk-sharing, 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																				Nine months ended
																					September 30,
(in thousands)	Q3 2026				Q2 2026				Q1 2026				Q4 2025				Q3 2025				2026				2025
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA
Walker & Dunlop Net Income (Loss)	$	(37,258	)		$	3,006			$	15,871			$	(13,911	)		$	33,452			$	(18,381	)		$	70,158
Income tax expense (benefit)		(10,306	)			(764	)			8,022				(5,447	)			12,516				(3,048	)			27,460
Interest expense on corporate debt		15,330				15,260				14,902				15,983				16,451				45,492				48,732
Amortization and depreciation		61,562				60,699				62,964				62,084				60,041				185,225				176,598
Provision (benefit) for credit losses		(4,232	)			20,966				4,118				3,105				949				20,852				6,481
Loan repurchase losses and fair value adjustments (1)		56,252				1,664				6,950				20,092				—				64,866				—
Net write-offs		(161	)			—				(491	)			—				—				(652	)			—
Stock-based compensation expense		9,102				9,115				8,219				6,909				7,332				26,436				19,838
Write-off of unamortized issuance costs from corporate debt paydown (2)		—				—				—				—				—				—				4,215
MSR income		(29,196	)			(47,817	)			(46,773	)			(50,060	)			(48,657	)			(123,786	)			(129,621	)
Adjusted EBITDA	$	61,093			$	62,129			$	73,782			$	38,755			$	82,084			$	197,004			$	223,861

_____________
(1)		Presented as a component of Indemnified and repurchased loan expenses, net 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 September 30, 2026
Revenues			CM			SAM				Corporate				Consolidated
Loan origination and debt brokerage fees, net		$	79,528		$	1,729			$	—			$	81,257
Fair value of expected net cash flows from servicing, net of guaranty obligation			29,196			—				—				29,196
Servicing fees			—			87,690				—				87,690
Property sales broker fees			19,780			—				—				19,780
Investment management fees			—			8,583				—				8,583
Net warehouse interest income (expense)			630			258				—				888
Placement fees and other interest income			—			34,785				2,356				37,141
Other revenues			18,631			15,256				27				33,914
Total revenues		$	147,765		$	148,301			$	2,383			$	298,449
Expenses
Personnel		$	119,671		$	21,598			$	23,424			$	164,693
Amortization and depreciation			1,146			57,636				2,780				61,562
Provision (benefit) for credit losses			—			(4,232	)			—				(4,232	)
Interest expense on corporate debt (1)			4,154			9,561				1,615				15,330
Indemnified and repurchased loan expenses, net			—			63,072				—				63,072
Other operating expenses			7,739			16,013				21,446				45,198
Total expenses		$	132,710		$	163,648			$	49,265			$	345,623
Income (loss) before taxes		$	15,055		$	(15,347	)		$	(46,882	)		$	(47,174	)
Income tax expense (benefit) (2)			3,302			(3,148	)			(10,460	)			(10,306	)
Net income (loss) before noncontrolling interests and temporary equity holders		$	11,753		$	(12,199	)		$	(36,422	)		$	(36,868	)
Less: net income (loss) from noncontrolling interests		$	—			32				—			$	32
Less: net income (loss) attributable to temporary equity holders			358			—				—				358
Walker & Dunlop net income (loss)		$	11,395		$	(12,231	)		$	(36,422	)		$	(37,258	)
Diluted EPS		$	0.35		$	(0.38	)		$	(1.12	)		$	(1.15	)
Operating margin			10	%		(10	)	%		(1,967	)	%		(16	)%

Segment Results (dollars in thousands, except per share data and ratios)		For the three months ended September 30, 2025
Revenues			CM				SAM				Corporate				Consolidated
Loan origination and debt brokerage fees, net		$	96,147			$	1,698			$	—			$	97,845
Fair value of expected net cash flows from servicing, net of guaranty obligation			48,657				—				—				48,657
Servicing fees			—				85,189				—				85,189
Property sales broker fees			26,546				—				—				26,546
Investment management fees			—				6,178				—				6,178
Net warehouse interest income (expense)			(2,035	)			—				—				(2,035	)
Placement fees and other interest income			—				42,123				4,179				46,302
Other revenues			11,439				15,440				2,114				28,993
Total revenues		$	180,754			$	150,628			$	6,293			$	337,675
Expenses
Personnel		$	131,113			$	23,304			$	23,001			$	177,418
Amortization and depreciation			1,146				56,991				1,904				60,041
Provision (benefit) for credit losses			—				949				—				949
Interest expense on corporate debt (1)			4,535				10,404				1,512				16,451
Indemnified and repurchased loan expenses, net			—				3,526				—				3,526
Other operating expenses			5,647				4,944				22,762				33,353
Total expenses		$	142,441			$	100,118			$	49,179			$	291,738
Income (loss) before taxes		$	38,313			$	50,510			$	(42,886	)		$	45,937
Income tax expense (benefit) (2)			10,383				13,578				(11,445	)			12,516
Net income (loss) before noncontrolling interests		$	27,930			$	36,932			$	(31,441	)		$	33,421
Less: net income (loss) from noncontrolling interests			—				(31	)			—				(31	)
Walker & Dunlop net income (loss)		$	27,930			$	36,963			$	(31,441	)		$	33,452
Diluted EPS		$	0.81			$	1.09			$	(0.92	)		$	0.98
Operating margin			21		%		34		%		(681	)	%		14	%

_____________
(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 (loss) 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																				Nine months ended
																					September 30,
(in thousands)	Q3 2026				Q2 2026				Q1 2026				Q4 2025				Q3 2025				2026				2025
Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income
Walker & Dunlop Net Income (Loss)	$	(37,258	)		$	3,006			$	15,871			$	(13,911	)		$	33,452			$	(18,381	)		$	70,158
Provision (benefit) for credit losses		(4,232	)			20,966				4,118				3,105				949				20,852				6,481
Loan repurchase losses and fair value adjustments(1)		56,252				1,664				6,950				20,092				—				64,866				—
Net write-offs		(161	)			—				(491	)			—				—				(652	)			—
Amortization and depreciation		61,562				60,699				62,964				62,084				60,041				185,225				176,598
MSR income		(29,196	)			(47,817	)			(46,773	)			(50,060	)			(48,657	)			(123,786	)			(129,621	)
Contingent consideration accretion and fair value adjustments		9				434				(299	)			(8,226	)			18				144				99
Write-off of unamortized issuance costs from corporate debt paydown (2)		—				—				—				—				—				—				4,215
Income tax expense adjustment (3)		(17,152	)			719				(6,908	)			(3,662	)			(3,856	)			(23,341	)			(17,640	)
Adjusted Core Net Income	$	29,824			$	39,671			$	35,432			$	9,422			$	41,947			$	104,927			$	110,290
Reconciliation of Diluted EPS to Adjusted core EPS
Walker & Dunlop Net Income (Loss)	$	(37,258	)		$	3,006			$	15,871			$	(13,911	)		$	33,452			$	(18,381	)		$	70,158
Diluted weighted-average shares outstanding		33,284				33,275				33,411				33,410				33,397				33,313				33,355
Diluted earnings (loss) per share	$	(1.15	)		$	0.09			$	0.46			$	(0.41	)		$	0.98			$	(0.63	)		$	2.05
Adjusted Core Net Income	$	29,824			$	39,671			$	35,432			$	9,422			$	41,947			$	104,927			$	110,290
Diluted weighted-average shares outstanding		33,284				33,275				33,411				33,410				33,397				33,313				33,355
Adjusted core EPS	$	0.92			$	1.19			$	1.02			$	0.28			$	1.22			$	3.60			$	3.23

_____________
(1)		Presented as a component of Indemnified and repurchased loan expenses, net 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 tax rate.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20261105976288/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.

Key Terms

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.

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.

debt service coverage ratio financial

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.

loan-to-value financial

Loan-to-value is the percentage that shows how large a loan is compared with the appraised value of the asset backing it, for example a house or other property. Investors care because a higher percentage means more of the asset’s value is borrowed — like buying a car with almost no down payment — which increases the chance of loss for lenders and can lead to higher interest rates, stricter terms, or greater risk for holders of related securities.