Walker & Dunlop swings to $37.3M loss in Q3 2026
Loan-repurchase losses and fair-value adjustments totaled $56.252 million; the company intends to dispose of the related assets by early 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Walker & Dunlop, Inc. reported Q3 2026 revenue of $298.449 million, compared with $337.675 million a year earlier, and a $37.258 million net loss versus $33.452 million net income. Debt financing volume was $10,284.094 million, down 5%, and total transaction volume was $13,778 million, down 11%. Adjusted core EPS was $0.92, compared with $1.22 in Q3 2025.
Q3 included $63.072 million in net expenses for indemnified and repurchased loans, including $56.252 million in loan-repurchase losses and fair-value adjustments. The company said Fannie Mae notified it that its review was complete and it does not expect further related buybacks or indemnifications. Repurchased assets and non-performing notes were classified as held for sale, and the company intends to dispose of them by early 2027. The total managed portfolio was $165.823 billion, up 5% from Q3 2025. The board declared a $0.68-per-share fourth-quarter dividend, payable December 4, 2026, to holders of record November 20, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointRevenue was $298.449 million, versus $337.675 million in Q3 2025.
- Moderate pointQ3 net loss was $37.258 million, versus $33.452 million net income.
Filing Explained
As of
8-K Event Classification
Key Figures
Key Terms
Mortgage servicing rights financial
risk-sharing obligations financial
Adjusted EBITDA financial
Adjusted core EPS financial
at-risk servicing portfolio financial
Earnings Snapshot
FAQ
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What were WD's Q3 2026 financial results?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other Jurisdiction of Incorporation) | (Commission File Number) |
| (IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
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Registrant’s telephone number, including area code: (
Not applicable
(Former name or former address if changed since last report.)
Securities registered pursuant to Section 12(b) of the Act: | ||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
1
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2026, Walker & Dunlop, Inc. (the “Company”) issued a press release reporting its financial results for the quarter and year-to-date period ended September 30, 2026. A copy of this press release is furnished herewith as Exhibit 99.1 and is hereby incorporated by reference into this Item 2.02.
The information contained in this current report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibits. |
The exhibit contained in this current report on Form 8-K shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
Exhibit | | Description |
99.1 | Press Release dated November 5, 2026 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Walker & Dunlop, Inc. | |||
(Registrant) | |||
Date: November 5, 2026 | By: | /s/ Gregory A. Florkowski | |
Gregory A. Florkowski Executive Vice President and Chief Financial Officer |
3
Exhibit 99.1
Walker & Dunlop Reports Third Quarter 2026 Financial Results
BETHESDA, MD – NOVEMBER 5, 2026 – 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.” |
1
Q3 2026 Earnings Release
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 |
2
Q3 2026 Earnings Release
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 |
3
Q3 2026 Earnings Release
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. |
4
Q3 2026 Earnings Release
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. |
5
Q3 2026 Earnings Release
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,
6
Q3 2026 Earnings Release
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.
7
Q3 2026 Earnings Release
CONTACT US
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 |
8
Q3 2026 Earnings Release
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 |
9
Q3 2026 Earnings Release
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 |
10
Q3 2026 Earnings Release
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. |
11
Q3 2026 Earnings Release
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. |
12
Q3 2026 Earnings Release
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. |
13
Q3 2026 Earnings Release
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. |
14
Q3 2026 Earnings Release
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. |
15