Walker & Dunlop Reports Third Quarter 2025 Financial Results

BETHESDA, Md.--( BUSINESS WIRE)--Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported third quarter total transaction volume of $15.5 billion, a 34% increase year-over-year, reflecting the steady return of the commercial real estate capital markets. Total revenues increased 16% to $338 million in the third quarter of 2025, generating a 16% increase in net income to $33.5 million, or $0.98 per diluted share, a 15% increase year over year. Third quarter 2025 adjusted EBITDA was $82 million, up 4% over the same period in 2024. Adjusted core EPS was up 3% year over year to $1.22. Both adjusted EBITDA and adjusted core EPS remove non-recurring and non-cash revenues and expenses. The Company’s Board of Directors declared a dividend of $0.67 per share for the fourth quarter of 2025.

“Our third quarter financial performance is due to Walker & Dunlop’s strong brand and market position in the commercial real estate capital markets,” commented Walker & Dunlop Chairman and CEO, Willy Walker. "Total transaction volume increased 34% year over year to $15.5 billion, driving 16% revenue growth and a 15% increase in diluted earnings per share. We are excited about the growth opportunities ahead as we continue to win market share, expand our client base, and deploy technology that meaningfully enhances the Walker & Dunlop customer experience.”

Walker continued, “We see the combination of our exceptional people, technology, and data as the way to continue differentiating W&D. Our brand continues to grow throughout the market due to the exceptional performance of our team, allowing us to hire top talent, enter new markets, and win new clients. Walker & Dunlop’s people, brand, and technology position us exceptionally well to take advantage of the next commercial real estate cycle to deliver strong, long-term value for our shareholders.”

(1)

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

(2)

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

CONSOLIDATED THIRD QUARTER 2025

OPERATING RESULTS

TRANSACTION VOLUMES

(in thousands)

Q3 2025

Q3 2024

$ Variance

% Variance

Fannie Mae

2,141,092

2,001,356

139,736

Freddie Mac

3,664,380

1,545,939

2,118,441

137

Ginnie Mae - HUD

325,169

272,054

53,115

Brokered (1)

4,512,729

4,028,208

484,521

Principal Lending and Investing (2)

199,250

165,875

33,375

Debt financing volume

10,842,620

8,013,432

2,829,188

Property sales volume

4,672,875

3,602,675

1,070,200

Total transaction volume

15,515,495

11,616,107

3,899,388

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

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

DISCUSSION OF QUARTERLY RESULTS:

MANAGED PORTFOLIO

(dollars in thousands, unless otherwise noted)

Q3 2025

Q3 2024

$ Variance

% Variance

Fannie Mae

71,006,342

66,068,212

4,938,130

Freddie Mac

40,473,401

40,090,158

383,243

Ginnie Mae - HUD

11,298,108

10,727,323

570,785

Brokered

16,553,827

17,156,810

(602,983)

(4)

Principal Lending and Investing

38,043

(38,043)

(100)

Total Servicing Portfolio

139,331,678

134,080,546

5,251,132

Assets under management

18,521,907

18,210,452

311,455

Total Managed Portfolio

157,853,585

152,290,998

5,562,587

Average custodial escrow account deposits (in billions)

3.2

2.9

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

24.0

24.1

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

7.4

7.7

DISCUSSION OF QUARTERLY RESULTS:

KEY PERFORMANCE METRICS

(in thousands, except per share amounts)

Q3 2025

Q3 2024

$ Variance

% Variance

Walker & Dunlop net income

33,452

28,802

4,650

Adjusted EBITDA

82,084

78,905

3,179

Diluted EPS

0.98

0.85

0.13

Adjusted core EPS

1.22

1.19

0.03

Operating margin

Return on equity

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

Personnel expense

Other operating expenses

DISCUSSION OF KEY PERFORMANCE METRICS:

KEY CREDIT METRICS

(in thousands)

Q3 2025

Q3 2024

$ Variance

% Variance

At-risk servicing portfolio (1)

66,946,180

61,237,535

5,708,645

Maximum exposure to at-risk portfolio (2)

13,704,585

12,454,158

1,250,427

Defaulted loans (3)

139,020

59,645

79,375

133

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

Defaulted loans

0.21

0.10

Allowance for risk-sharing

0.05

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

Allowance for risk-sharing

0.25

0.24

(1)

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

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

(2)

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

(3)

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

DISCUSSION OF KEY CREDIT METRICS:

THIRD QUARTER 2025

FINANCIAL RESULTS BY SEGMENT

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

FINANCIAL RESULTS - CAPITAL MARKETS

(in thousands)

Q3 2025

Q3 2024

$ Variance

% Variance

Origination fees

96,147

72,723

23,424

MSR income

48,657

43,426

5,231

Property sales broker fees

26,546

19,322

7,224

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

(2,035

)

(2,798

)

763

(27

)

Other revenues

11,439

11,039

400

Total revenues

180,754

143,712

37,042

Personnel

131,113

104,987

26,126

Amortization and depreciation

1,146

1,137

Interest expense on corporate debt

4,535

4,888

(353

)

Fair value adjustments to contingent consideration liabilities

—

(1,366

)

1,366

(100

)

Other operating expenses

5,647

5,137

510

Total expenses

142,441

114,783

27,658

Income (loss) from operations

38,313

28,929

9,384

Income tax expense (benefit)

10,383

7,073

3,310

Net income (loss) before noncontrolling interests

27,930

21,856

6,074

Less: net income (loss) from noncontrolling interests

—

(26

)

(100

)

Walker & Dunlop net income (loss)

27,930

21,830

6,100

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

Origination fee rate (1)

0.90

0.93

Agency MSR rate (2)

0.79

1.14

Key performance metrics:

Operating margin

Adjusted EBITDA

(764

)

(4,601

)

3,837

(83

)

Diluted EPS

0.81

0.64

0.17

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

(2) MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS:

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

FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT

(in thousands)

Q3 2025

Q3 2024

$ Variance

% Variance

Origination fees

1,698

823

875

106

Servicing fees

85,189

82,222

2,967

Investment management fees

6,178

11,744

(5,566

)

(47

)

Net warehouse interest income, loans held for investment

—

651

(651

)

(100

)

Placement fees and other interest income

42,123

40,299

1,824

Other revenues

15,440

9,145

6,295

Total revenues

150,628

144,884

5,744

Personnel

23,304

20,951

2,353

Amortization and depreciation

56,991

54,668

2,323

Provision (benefit) for credit losses

949

2,850

(1,901

)

(67

)

Interest expense on corporate debt

10,404

11,711

(1,307

)

(11

)

Other operating expenses

8,470

6,611

1,859

Total expenses

100,118

96,791

3,327

Income (loss) from operations

50,510

48,093

2,417

Income tax expense (benefit)

13,578

10,756

2,822

Net income (loss) before noncontrolling interests

36,932

37,337

(405

)

Less: net income (loss) from noncontrolling interests

(31

)

(145

)

114

(79

)

Walker & Dunlop net income (loss)

36,963

37,482

(519

)

Key performance metrics:

Operating margin

Adjusted EBITDA

119,423

117,455

1,968

Diluted EPS

1.09

1.11

(0.02

)

SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS:

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

FINANCIAL RESULTS - CORPORATE

(in thousands)

Q3 2025

Q3 2024

$ Variance

% Variance

Other interest income

4,179

3,258

921

Other revenues

2,114

450

1,664

370

Total revenues

6,293

3,708

2,585

Personnel

23,001

19,600

3,401

Amortization and depreciation

1,904

1,756

148

Interest expense on corporate debt

1,512

1,633

(121

)

Other operating expenses

22,762

20,236

2,526

Total expenses

49,179

43,225

5,954

Income (loss) from operations

(42,886

)

(39,517

)

(3,369

)

Income tax expense (benefit)

(11,445

)

(9,007

)

(2,438

)

Walker & Dunlop net income (loss)

(31,441

)

(30,510

)

(931

)

Key performance metric:

Adjusted EBITDA

(36,575

)

(33,949

)

(2,626

)

Diluted EPS

(0.92

)

(0.90

)

(0.02

)

CORPORATE – DISCUSSION OF QUARTERLY RESULTS:

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

YEAR-TO-DATE 2025

CONSOLIDATED OPERATING RESULTS

OPERATING RESULTS AND KEY PERFORMANCE METRICS

(in thousands)

YTD Q3 2025

YTD Q3 2024

$ Variance

% Variance

Debt financing volume

27,677,487

20,158,458

7,519,029

Property sales volume

8,825,750

6,300,609

2,525,141

Total transaction volume

36,503,237

26,459,067

10,044,170

Total revenues

894,282

791,039

103,243

Total expenses

796,727

711,658

85,069

Walker & Dunlop net income

70,158

63,331

6,827

Adjusted EBITDA

223,861

233,972

(10,111

)

Diluted EPS

2.05

1.87

0.18

Adjusted core EPS

3.23

3.60

(0.37

)

(10

)

Operating margin

Return on equity

DISCUSSION OF YEAR-TO-DATE-RESULTS:

YEAR-TO-DATE 2025

FINANCIAL RESULTS BY SEGMENT

FINANCIAL RESULTS - CAPITAL MARKETS

(in thousands)

YTD Q3 2025

YTD Q3 2024

$ Variance

% Variance

Total revenues

456,115

343,779

112,336

Total expenses

367,834

308,570

59,264

Walker & Dunlop net income (loss)

63,432

26,167

37,265

142

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

Origination fee rate (1)

0.87

0.91

Agency MSR rate (2)

0.94

1.14

Key performance metrics:

Operating margin

Adjusted EBITDA

(12,768

)

(32,431

)

19,663

(61

)

Diluted EPS

1.85

0.77

1.08

140

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

(2) MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS - DISCUSSION OF YEAR-TO-DATE-RESULTS:

FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT

(in thousands)

YTD Q3 2025

YTD Q3 2024

$ Variance

% Variance

Total revenues

423,266

434,351

(11,085

)

Total expenses

293,042

278,615

14,427

Walker & Dunlop net income (loss)

93,630

121,197

(27,567

)

(23

)

Key performance metrics:

Operating margin

Adjusted EBITDA

339,256

361,614

(22,358

)

Diluted EPS

2.74

3.58

(0.84

)

(23

)

SERVICING & ASSET MANAGEMENT - DISCUSSION OF YEAR-TO-DATE-RESULTS:

FINANCIAL RESULTS - CORPORATE

(in thousands)

YTD Q3 2025

YTD Q3 2024

$ Variance

% Variance

Total revenues

14,901

12,909

1,992

Total expenses

135,851

124,473

11,378

Walker & Dunlop net income (loss)

(86,904

)

(84,033

)

(2,871

)

Key performance metric:

Adjusted EBITDA

(102,627

)

(95,211

)

(7,416

)

Diluted EPS

(2.54

)

(2.48

)

(0.06

)

CORPORATE - DISCUSSION OF YEAR-TO-DATE-RESULTS:

CAPITAL SOURCES AND USES

On November 5, 2025, the Company’s Board of Directors declared a dividend of $0.67 per share for the fourth quarter of 2025. The dividend will be paid on December 5, 2025, to all holders of record of the Company’s restricted and unrestricted common stock as of November 21, 2025.

On February 12, 2025, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 21, 2025 (the “2025 Share Repurchase Program”). As of September 30, 2025, we have not repurchased any shares of common stock under the 2025 Share Repurchase Program. Any repurchases made pursuant to the 2025 Share Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.

CONFERENCE CALL INFORMATION

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

Earnings Call:

Thursday, November 6, 2025, at 8:30 a.m. EST

Phone:

(800) 330-6710 from within the United States; (773) 305-6853 from outside the United States

Confirmation Code:

6393166

Webcast Link:

https://event.webcasts.com/starthere.jsp?ei=1703890&tp_key=aa24cbd6fd

ABOUT WALKER & DUNLOP

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

NON-GAAP FINANCIAL MEASURES

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

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

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

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

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.

The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, and (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations.

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)

2025

2024

Assets

Cash and cash equivalents

274,828

233,712

180,971

279,270

179,759

Restricted cash

44,462

41,090

32,268

25,156

39,827

Pledged securities, at fair value

221,730

218,435

214,374

206,904

203,945

Loans held for sale, at fair value

2,197,739

1,177,837

946,372

780,749

1,024,984

Mortgage servicing rights

805,975

817,814

825,761

852,399

836,896

Goodwill

868,710

901,710

Other intangible assets

145,631

149,385

153,139

156,893

170,713

Receivables, net

374,316

360,646

372,689

335,879

307,407

Committed investments in tax credit equity

257,564

194,479

337,510

313,230

333,713

Other assets

606,320

612,932

580,084

562,803

580,277

Total assets

5,797,275

4,675,040

4,511,878

4,381,993

4,579,231

Liabilities

Warehouse notes payable

2,175,157

1,157,234

931,002

781,706

1,019,850

Notes payable

829,909

828,657

825,556

768,044

769,376

Allowance for risk-sharing obligations

34,140

33,191

31,871

28,159

29,859

Commitments to fund investments in tax credit equity

223,788

168,863

295,052

274,975

289,250

Other liabilities

756,815

725,297

684,308

769,246

724,543

Total liabilities

4,019,809

2,913,242

2,767,789

2,622,130

2,832,878

Stockholders' Equity

Common stock

333

332

Additional paid-in capital

444,127

438,129

432,788

429,000

412,570

Accumulated other comprehensive income (loss)

1,833

2,764

1,295

586

1,466

Retained earnings

1,319,274

1,308,792

1,297,764

1,317,945

1,295,459

Total stockholders’ equity

1,765,567

1,750,018

1,732,180

1,747,863

1,709,827

Noncontrolling interests

11,899

11,780

11,909

12,000

36,526

Total equity

1,777,466

1,761,798

1,744,089

1,759,863

1,746,353

Commitments and contingencies

—

Total liabilities and stockholders' equity

5,797,275

4,675,040

4,511,878

4,381,993

4,579,231

Walker & Dunlop, Inc. and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

Unaudited

Quarterly Trends

Nine months ended

September 30,

(in thousands, except per share amounts)

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

2025

2024

Revenues

Origination fees

97,845

94,309

46,381

93,942

73,546

238,535

182,620

MSR income

48,657

53,153

27,811

55,920

43,426

129,621

97,673

Servicing fees

85,189

83,693

82,221

82,961

82,222

251,103

242,683

Property sales broker fees

26,546

14,964

13,521

21,175

19,322

55,031

39,408

Investment management fees

6,178

7,577

9,682

(3,110

)

11,744

23,437

40,086

Net warehouse interest income (expense)

(2,035

)

(1,760

)

(786

)

(2,186

)

(2,147

)

(4,581

)

(4,847

)

Placement fees and other interest income

46,302

35,986

33,211

43,962

43,557

115,499

123,999

Other revenues

28,993

31,318

25,326

48,787

20,634

85,637

69,417

Total revenues

337,675

319,240

237,367

341,451

292,304

894,282

791,039

Expenses

Personnel

177,418

161,888

121,390

169,178

145,538

460,696

390,068

Amortization and depreciation

60,041

58,936

57,621

68,054

57,561

176,598

169,495

Provision (benefit) for credit losses

949

1,820

3,712

4,529

2,850

6,481

6,310

Interest expense on corporate debt

16,451

16,767

15,514

15,921

18,232

48,732

53,765

Goodwill impairment

—

33,000

—

Fair value adjustments to contingent consideration liabilities

—

(48,955

)

(1,366

)

—

(1,366

)

Other operating expenses

36,879

33,455

33,886

47,604

31,984

104,220

93,386

Total expenses

291,738

272,866

232,123

289,331

254,799

796,727

711,658

Income from operations

45,937

46,374

5,244

52,120

37,505

97,555

79,381

Income tax expense

12,516

12,425

2,519

10,955

8,822

27,460

19,588

Net income before noncontrolling interests

33,421

33,949

2,725

41,165

28,683

70,095

59,793

Less: net income (loss) from noncontrolling interests

(31

)

(29

)

(3,671

)

(119

)

(63

)

(3,538

)

Walker & Dunlop net income

33,452

33,952

2,754

44,836

28,802

70,158

63,331

Other comprehensive income (loss), net of tax

(931

)

1,469

709

(880

)

1,051

1,247

1,945

Walker & Dunlop comprehensive income

32,521

35,421

3,463

43,956

29,853

71,405

65,276

Effective Tax Rate

Basic earnings per share

0.98

1.00

0.08

1.32

0.85

2.05

1.87

Diluted earnings per share

0.98

0.99

0.08

1.32

0.85

2.05

1.87

Cash dividends paid per common share

0.67

0.65

2.01

1.95

Basic weighted-average shares outstanding

33,376

33,358

33,264

33,192

33,169

33,333

33,090

Diluted weighted-average shares outstanding

33,397

33,371

33,296

33,223

33,203

33,355

33,135

SUPPLEMENTAL OPERATING DATA

Unaudited

Quarterly Trends

Nine months ended

September 30,

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

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

2025

2024

Transaction Volume:

Components of Debt Financing Volume

Fannie Mae

2,141,092

3,114,308

1,511,794

3,225,633

2,001,356

6,767,194

4,415,528

Freddie Mac

3,664,380

1,752,597

808,247

1,553,495

1,545,939

6,225,224

3,674,055

Ginnie Mae - HUD

325,169

288,449

148,158

116,437

272,054

761,776

472,092

Brokered (1)

4,512,729

6,335,071

2,552,943

4,893,643

4,028,208

13,400,743

11,200,133

Principal Lending and Investing (2)

199,250

147,800

175,500

207,000

165,875

522,550

396,650

Total Debt Financing Volume

10,842,620

11,638,225

5,196,642

9,996,208

8,013,432

27,677,487

20,158,458

Property Sales Volume

4,672,875

2,313,585

1,839,290

3,450,614

3,602,675

8,825,750

6,300,609

Total Transaction Volume

15,515,495

13,951,810

7,035,932

13,446,822

11,616,107

36,503,237

26,459,067

Key Performance Metrics:

Operating margin

Return on equity

Walker & Dunlop net income

33,452

33,952

2,754

44,836

28,802

70,158

63,331

Adjusted EBITDA (3)

82,084

76,811

64,966

94,577

78,905

223,861

233,972

Diluted EPS

0.98

0.99

0.08

1.32

0.85

2.05

1.87

Adjusted core EPS (4)

1.22

1.15

0.85

1.34

1.19

3.23

3.60

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

Personnel expense

Other operating expenses

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

Origination fee rate (5)

0.90

0.82

0.90

0.94

0.93

0.87

0.91

Agency MSR rate (6)

0.79

1.03

1.13

1.14

0.94

1.14

Other Data:

Market capitalization at period end

2,847,907

2,395,939

2,901,726

3,282,018

3,834,715

Closing share price at period end

83.62

70.48

85.36

97.21

113.59

Average headcount

1,438

1,400

1,394

1,391

1,356

Components of Servicing Portfolio (end of period):

Fannie Mae

71,006,342

70,042,909

69,176,839

68,196,744

66,068,212

Freddie Mac

40,473,401

39,433,013

38,556,682

39,185,091

40,090,158

Ginnie Mae - HUD

11,298,108

11,008,314

10,882,857

10,847,265

10,727,323

Brokered (7)

16,553,827

16,864,888

17,032,338

17,057,912

17,156,810

Principal Lending and Investing (8)

—

38,043

Total Servicing Portfolio

139,331,678

137,349,124

135,648,716

135,287,012

134,080,546

Assets under management (9)

18,521,907

18,623,451

18,518,413

18,423,463

18,210,452

Total Managed Portfolio

157,853,585

155,972,575

154,167,129

153,710,475

152,290,998

Key Servicing Portfolio Metrics (end of period):

Custodial escrow account deposits (in billions)

2.8

2.7

2.4

2.7

3.1

Weighted-average servicing fee rate (basis points)

24.0

24.1

24.4

24.2

24.1

Weighted-average remaining servicing portfolio term (years)

7.4

7.5

7.7

(1)

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

(2)

Includes debt financing volumes from our WDIP separate accounts.

(3)

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

(4)

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

(5)

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

(6)

MSR income as a percentage of Agency debt financing volume.

(7)

Brokered loans serviced primarily for life insurance companies.

(8)

Consists of interim loans not managed for our interim loan joint venture.

(9)

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

KEY CREDIT METRICS

Unaudited

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2025

2024

Risk-sharing servicing portfolio:

Fannie Mae Full Risk

63,382,256

61,486,070

60,493,946

59,304,888

57,032,839

Fannie Mae Modified Risk

7,624,086

8,556,839

8,682,893

8,891,856

9,035,373

Freddie Mac Modified Risk

10,000

15,000

69,400

Total risk-sharing servicing portfolio

71,016,342

70,052,909

69,191,839

68,211,744

66,137,612

Non-risk-sharing servicing portfolio:

Fannie Mae No Risk

—

Freddie Mac No Risk

40,463,401

39,423,013

38,541,682

39,170,091

40,020,758

GNMA - HUD No Risk

11,298,108

11,008,314

10,882,857

10,847,265

10,727,323

Brokered

16,553,827

16,864,888

17,032,338

17,057,912

17,156,810

Total non-risk-sharing servicing portfolio

68,315,336

67,296,215

66,456,877

67,075,268

67,904,891

Total loans serviced for others

139,331,678

137,349,124

135,648,716

135,287,012

134,042,503

Loans held for investment (full risk)

36,926

38,043

Interim Loan Joint Venture Managed Loans (1)

76,215

173,315

424,774

At-risk servicing portfolio (2)

66,946,180

65,378,944

64,450,319

63,365,672

61,237,535

Maximum exposure to at-risk portfolio (3)

13,704,585

13,382,410

13,200,846

12,893,593

12,454,158

Defaulted loans (4)

139,020

108,530

41,737

59,645

Defaulted loans as a percentage of the at-risk portfolio

0.21

0.17

0.07

0.10

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

0.05

0.04

0.05

Allowance for risk-sharing as a percentage of maximum exposure

0.25

0.24

0.22

0.24

(1)

This balance consists entirely of interim loan joint venture managed loans. We indirectly share in a portion of the risk of loss associated with interim loan joint venture managed loans through our 15% equity ownership in the joint venture. We had no exposure to risk of loss for the loans serviced directly for our interim loan joint venture partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table.

(2)

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

(3)

(4)

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

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP

Unaudited

Quarterly Trends

Nine months ended

September 30,

(in thousands)

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

2025

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income

33,452

33,952

2,754

44,836

28,802

70,158

63,331

Income tax expense

12,516

12,425

2,519

10,955

8,822

27,460

19,588

Interest expense on corporate debt

16,451

16,767

15,514

15,921

18,232

48,732

53,765

Amortization and depreciation

60,041

58,936

57,621

68,054

57,561

176,598

169,495

Provision (benefit) for credit losses

949

1,820

3,712

4,529

2,850

6,481

6,310

Net write-offs

—

(468

)

—

(468

)

Stock-based compensation expense

7,332

6,064

6,442

7,702

6,532

19,838

19,624

MSR income

(48,657

)

(53,153

)

(27,811

)

(55,920

)

(43,426

)

(129,621

)

(97,673

)

Write-off of unamortized issuance costs from corporate debt paydown

—

4,215

—

4,215

—

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

—

(1,500

)

—

Adjusted EBITDA

82,084

76,811

64,966

94,577

78,905

223,861

233,972

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT

Unaudited

Capital Markets

Three months ended

September 30,

Nine months ended

September 30,

(in thousands)

2025

2024

2025

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

27,930

21,830

63,432

26,167

Income tax expense (benefit)

10,383

7,073

24,849

8,689

Interest expense on corporate debt

4,535

4,888

13,190

15,038

Amortization and depreciation

1,146

1,137

3,433

3,412

Stock-based compensation expense

3,899

3,897

10,685

11,936

MSR income

(48,657

)

(43,426

)

(129,621

)

(97,673

)

Write-off of unamortized issuance costs from corporate debt paydown

—

1,264

—

Adjusted EBITDA

(764

)

(4,601

)

(12,768

)

(32,431

)

Servicing & Asset Management

Three months ended

September 30,

Nine months ended

September 30,

(in thousands)

2025

2024

2025

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

36,963

37,482

93,630

121,197

Income tax expense (benefit)

13,578

10,756

36,657

38,430

Interest expense on corporate debt

10,404

11,711

31,145

33,848

Amortization and depreciation

56,991

54,668

167,371

160,912

Provision (benefit) for credit losses

949

2,850

6,481

6,310

Net write-offs

—

(468

)

—

(468

)

Stock-based compensation expense

538

456

1,443

1,385

Write-off of unamortized issuance costs from corporate debt paydown

—

2,529

—

Adjusted EBITDA

119,423

117,455

339,256

361,614

Corporate

Three months ended

September 30,

Nine months ended

September 30,

(in thousands)

2025

2024

2025

2024

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

(31,441

)

(30,510

)

(86,904

)

(84,033

)

Income tax expense (benefit)

(11,445

)

(9,007

)

(34,046

)

(27,531

)

Interest expense on corporate debt

1,512

1,633

4,397

4,879

Amortization and depreciation

1,904

1,756

5,794

5,171

Stock-based compensation expense

2,895

2,179

7,710

6,303

Write-off of unamortized issuance costs from corporate debt paydown

—

422

—

Adjusted EBITDA

(36,575

)

(33,949

)

(102,627

)

(95,211

)

ADJUSTED CORE EPS RECONCILIATION

Unaudited

Quarterly Trends

Nine months ended

September 30,

(in thousands)

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

2025

2024

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

Walker & Dunlop Net Income

33,452

33,952

2,754

44,836

28,802

70,158

63,331

Provision (benefit) for credit losses

949

1,820

3,712

4,529

2,850

6,481

6,310

Net write-offs

—

(468

)

—

(468

)

Amortization and depreciation

60,041

58,936

57,621

68,054

57,561

176,598

169,495

MSR income

(48,657

)

(53,153

)

(27,811

)

(55,920

)

(43,426

)

(129,621

)

(97,673

)

Goodwill impairment

—

33,000

—

Contingent consideration accretion and fair value adjustments

(48,822

)

(1,204

)

130

Write-off of unamortized issuance costs from corporate debt paydown

—

4,215

—

4,215

—

Income tax expense adjustment (1)

(3,856

)

(2,429

)

(11,355

)

(177

)

(3,602

)

(17,640

)

(19,196

)

Adjusted Core Net Income

41,947

39,167

29,176

45,500

40,513

110,290

121,929

Reconciliation of Diluted EPS to Adjusted core EPS

Walker & Dunlop Net Income

33,452

33,952

2,754

44,836

28,802

70,158

63,331

Diluted weighted-average shares outstanding

33,397

33,371

33,296

33,223

33,203

33,355

33,135

Diluted EPS

0.98

0.99

0.08

1.32

0.85

2.05

1.87

Adjusted Core Net Income

41,947

39,167

29,176

45,500

40,513

110,290

121,929

Diluted weighted-average shares outstanding

33,397

33,371

33,296

33,223

33,203

33,355

33,135

Adjusted Core EPS

1.22

1.15

0.85

1.34

1.19

3.23

3.60

(1)

Income tax impact of the above adjustments to adjusted core net income. Uses quarterly or annual effective tax rate as disclosed in the Condensed Consolidated Statements of Income and Comprehensive Income in this press release. The effective rate is adjusted for the impacts of excess tax benefits and shortfalls.

Category: Earnings