Open the filing on EDGARExhibit 99.1
Walker & Dunlop Reports Fourth Quarter 2025 Financial Results
FOURTH QUARTER 2025 HIGHLIGHTS
- Total transaction volume of $18.3 billion, up 36% from Q4’24
- Total revenues of $340.0 million, flat from Q4’24
- Net loss of $13.9 million and diluted loss per share of $0.41, both down 131% from Q4’24
- Adjusted EBITDAof $38.8 million, down 59% from Q4’24
- Adjusted core EPS of $0.28, down 79% from Q4’24
- Servicing portfolio of $144.0 billion as of December 31, 2025, up 6% from December 31, 2024
FULL-YEAR 2025 HIGHLIGHTS
- Total transaction volume of $54.8 billion, up 37% from 2024
- Total revenues of $1.2 billion, up 9% from 2024
- Net income of $56.2 million and diluted earnings per share of $1.64, down 48% and 49%, respectively, from 2024
- Adjusted EBITDAof $262.6 million, down 20% from 2024
- Adjusted core EPS of $3.50, down 30% from 2024
BETHESDA, MD - FEBRUARY 26, 2026 - Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported fourth quarter results that reflect significant improvement in its core Capital Markets business, which delivered a 36% increase in total transaction volume to $18.3 billion year over year, and generated fourth quarter revenues of $340 million. The Company reported a diluted loss per share of $0.41 in the fourth quarter of 2025. Adjusted EBITDA decreased to $38.8 million, and adjusted core EPS also declined to $0.28. Included in the Company’s reported results this quarter are $66.2 million of expenses associated primarily with (i) impairment charges and other losses related to underperforming assets the Company plans to sell in 2026, and (ii) operating costs and losses resulting from indemnified and repurchased loans. The Company ended the year with $299 million of cash and cash equivalents, as the majority of the impairment charges and other losses taken in the fourth quarter were non-cash. The recurring cash revenues driven by the Company’s $144 billion loan servicing portfolio and strength of the balance sheet led the Company’s Board of Directors to declare a dividend of $0.68 per share for the first quarter of 2026, a 1.5% increase over the 2025 quarterly dividend and a 172% increase since the dividend was initiated in 2018.
“We closed 2025 with strong momentum across our business after growing total transaction volume each quarter throughout the year from $7 billion in Q1’25 to $18 billion in Q4’25, up 161%” commented Walker & Dunlop Chairman and CEO Willy Walker. “As the commercial real estate transaction market continues to improve, our people and our brand are winning, reflected in our growing market share, and strong league table rankings. We finished the year as the #1 Fannie Mae DUS lender, #3 Freddie Mac Optigo lender, the second-largest combined GSE loan originator, and the fourth-largest multifamily property sales broker in the United States.”
Mr. Walker continued, “Our fourth quarter results were impacted by loan repurchase expenses and impairment charges related to our real estate owned portfolio. As we move forward from these issues, we feel very well positioned for growth in 2026 and beyond. With a $144 billion servicing portfolio generating durable recurring revenue, a robust Capital Markets pipeline building early in the year, and an improving macroeconomic backdrop for commercial real estate, we are focused on generating top and bottom-line growth in 2026 and beyond. Our mission is to become the very best commercial real estate capital markets company in the world, and that journey begins now."
- 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.”
- Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to diluted EPS, refer to the sections of this press release below titled “Non-GAAP Financial Measures” and “Adjusted Core EPS Reconciliation.”
CONSOLIDATED FOURTH QUARTER 2025
OPERATING RESULTS
| TRANSACTION VOLUMES |
| (in thousands) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Fannie Mae | $2,785,231 | $3,225,633 | $(440,402) | (14)% |
| Freddie Mac | 2,023,592 | 1,553,495 | 470,097 | 30 |
| Ginnie Mae - HUD | 153,748 | 116,437 | 37,311 | 32 |
| Brokered | 8,675,937 | 4,893,643 | 3,782,294 | 77 |
| Principal Lending and Investing | 167,700 | 207,000 | (39,300) | (19) |
| Debt financing volume | $13,806,208 | $9,996,208 | $3,810,000 | 38% |
| Property sales volume | 4,524,142 | 3,450,614 | 1,073,528 | 31 |
| Total transaction volume | $18,330,350 | $13,446,822 | $4,883,528 | 36% |
- Brokered transactions for life insurance companies, commercial banks, and other capital sources.
- Includes debt financing volumes from Walker & Dunlop Investment Partners, Inc. (“WDIP”) separate accounts.
DISCUSSION OF QUARTERLY RESULTS:
- Total transaction volume grew 36% to $18.3 billion in the fourth quarter of 2025, reflecting Walker & Dunlop’s strong position within an increasingly active commercial real estate transactions market.
- Fannie Mae and Freddie Mac (collectively, the “GSEs”) debt financing volumes remained relatively flat in the fourth quarter of 2025, increasing less than 1% compared to the fourth quarter of 2024. Walker & Dunlop’s 2025 GSE market share was 11.2%, up from 10.3% in 2024. Walker & Dunlop was ranked the largest Fannie Mae lender for the seventh consecutive year and the third-largest Freddie Mac lender for 2025, improving from fourth largest in 2024, and finishing the year as the second largest lender with the GSEs on a combined basis.
- HUD debt financing volume increased 32% from the prior year as our team continues to expand and deliver strong results for our clients, ranking the Company as one of the top five HUD lenders in 2025.
- The 77% increase in brokered debt financing volume during the fourth quarter of 2025 reflected a strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial mortgage-backed securities, and other private capital providers.
- Property sales volume increased 31% in the fourth quarter of 2025. Walker & Dunlop maintains a strong position in the institutional multifamily property sales markets and finished the year as the fourth largest seller of multifamily assets greater than $25 million, up from the seventh largest in 2024, and representing over 10% of the institutional market. Macroeconomic fundamentals supporting the multifamily market, such as steady absorptions, a significant decline in new construction starts across most markets, and the widening affordability gap between renting versus owning, continue to drive a recovery in the multifamily acquisitions market.
| MANAGED PORTFOLIO |
| (dollars in thousands, unless otherwise noted) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Fannie Mae | $72,708,372 | $68,196,744 | $4,511,628 | 7% |
| Freddie Mac | 42,595,441 | 39,185,091 | 3,410,350 | 9 |
| Ginnie Mae - HUD | 11,563,020 | 10,847,265 | 715,755 | 7 |
| Brokered | 17,111,320 | 17,057,912 | 53,408 | - |
| Total Servicing Portfolio | $143,978,153 | $135,287,012 | $8,691,141 | 6% |
| Assets under management | 18,631,100 | 18,423,463 | 207,637 | 1 |
| Total Managed Portfolio | $162,609,253 | $153,710,475 | $8,898,778 | 6% |
| Average custodial escrow account deposits (in billions) | $2.9 | $3.2 | | |
| Weighted-average servicing fee rate at period end (basis points) | 23.6 | 24.2 | | |
| Weighted-average remaining servicing portfolio term at period end (years) | 7.2 | 7.7 | | |
DISCUSSION OF QUARTERLY RESULTS:
- Our servicing portfolio continues to grow, primarily as a result of additional Fannie Mae, Freddie Mac, and HUD (collectively, “Agency”) debt financing volumes over the past 12 months, partially offset by principal paydowns and loan payoffs.
- During the fourth quarter of 2025, we added $4.6 billion of net loans to our servicing portfolio, and over the past 12 months, we added $8.7 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae and Freddie Mac loans.
- $12.2 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years, which presents an opportunity for our GSE loan servicing portfolios to continue scaling as our Capital Markets team continues to deliver top end market share with the GSEs. The maturing loans, with a weighted-average servicing fee of 28 basis points, represent only 10% of the total Agency loans in our portfolio. Over the next five years, 53% of Agency loans will mature, providing an opportunity for us to recapitalize or sell these deals for our clients in the coming years.
- The mortgage servicing rights (“MSRs”) associated with our servicing portfolio are reported at an amortized cost of $808 million as of December 31, 2025, while the fair value is estimated at $1.4 billion. The long-term contractual nature of the servicing rights, coupled with ancillary revenues earned from the portfolio, generate attractive upside and value above our cost basis.
- Assets under management totaled $18.6 billion as of December 31, 2025, and consisted of $15.9 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, and $1.8 billion of debt funds and $0.9 billion of equity funds managed by our registered investment advisor, WDIP.
| KEY PERFORMANCE METRICS |
| (in thousands, except per share amounts) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Walker & Dunlop net income (loss) | $(13,911) | $44,836 | $(58,747) | (131)% |
| Adjusted EBITDA | 38,755 | 94,577 | (55,822) | (59) |
| Diluted earnings (loss) per share | $(0.41) | $1.32 | $(1.73) | (131)% |
| Adjusted core EPS | $0.28 | $1.34 | $(1.06) | (79)% |
| Operating margin | (5)% | 15% | | |
| Return on equity | (3) | 10 | | |
| Key Expense Metrics (as a % of total revenues): | | | | |
| Personnel expense | 55% | 50% | | |
| Other operating expenses | 10 | 11 | | |
DISCUSSION OF KEY PERFORMANCE METRICS:
- The decreases in net income and diluted earnings per share were primarily the result of increases in indemnified and repurchased loan expenses and asset impairments and other expenses during the fourth quarter. In the first quarter of 2026, the Company made the strategic decision to sell a portfolio of underperforming assets that was acquired in 2021 from Alliant.
Affordable assets have recovered more slowly than market rate assets, particularly in rent-controlled markets, and the carrying value of these assets was above the expected fair value, resulting in $26.1 million of asset impairment charges and accrued losses this quarter. In addition, we recognized a total of $35.5 million of indemnified and repurchased loan expenses and credit losses in the quarter in connection with all loans we have repurchased, indemnified or expect to indemnify.
- Total revenues decreased less than 1% this quarter, while total expenses increased 24% as a result of the aforementioned asset impairment charges and other expenses, and indemnified and repurchased loan expenses, leading to the year-over-year decline in our operating margin and net income. The decrease in net income was the primary factor in the decrease in return on equity.
- The increase in personnel expense as a percentage of total revenues was principally the result of an increase in variable compensation driven by the growth in loan origination and debt brokerage fees, net (“origination fees”) for the quarter.
- The 59% decrease in adjusted EBITDA was largely related to the aforementioned increases in asset impairments and other expenses and the non-credit portion of indemnified and repurchased loan expenses, coupled with increased personnel expenses and a decrease in other revenues.
- Adjusted core EPS decreased 79%, largely for the same reasons that adjusted EBITDA decreased.
| KEY CREDIT METRICS |
| (in thousands) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| At-risk servicing portfolio | $68,649,960 | $63,365,672 | $5,284,288 | 8% |
| Maximum exposure to at-risk portfolio | 14,052,667 | 12,893,593 | 1,159,074 | 9 |
| Defaulted loans | $158,821 | $41,737 | $117,084 | 281% |
| Key credit metrics (as a % of the at-risk portfolio): | | | | |
| Defaulted loans | 0.23% | 0.07% | | |
| Allowance for risk-sharing | 0.05 | 0.04 | | |
| Key credit metrics (as a % of maximum exposure): | | | | |
| Allowance for risk-sharing | 0.27% | 0.22% | | |
- 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.
- 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.
- Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac small balance pre-securitized loans (“SBL”) portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.
DISCUSSION OF KEY CREDIT METRICS:
- Our at-risk servicing portfolio, which is comprised of loans subject to a defined risk-sharing formula, increased primarily due to the level of Fannie Mae loans added to the portfolio during the past 12 months. We take credit risk exclusively on loans backed by multifamily assets and have no credit exposure to losses in any other sector of the commercial real estate lending market.
- As of December 31, 2025, 14 at-risk loans were in default with an aggregate unpaid principal balance (“UPB”) of $158.8 million, compared to ten loans with an aggregate UPB of $139.0 million as of September 30, 2025, and six at-risk loans in default with an aggregate UPB of $41.7 million as of December 31, 2024. The collateral-based reserves on defaulted loans were $12.6 million and $4.0 million as of December 31, 2025 and 2024, respectively. The approximately 3,200 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio.
- We recorded a provision for credit losses of $3.1 million in the fourth quarter of 2025, primarily related to updated loss reserves for loans that previously defaulted.
| INDEMNIFIED AND REPURCHASED LOANS |
| (in thousands) | | | 12/31/2025 | 12/31/2024 |
| Loans held for investment: | | | | |
| Indemnified loans | | | $46,253 | $24,617 |
| Repurchased loans | | | 36,926 | 12,309 |
| Allowance for loan losses | | | (5,410) | (4,060) |
| Loans held for investment, net | | | $77,769 | $32,866 |
| Other real estate owned | | | 14,756 | 14,756 |
| Other asset, net | | | 24,124 | 25,524 |
| Total balance included in Other assets | | | $116,649 | $73,146 |
| Other Liabilities: | | | | |
| Secured borrowings | | | $83,402 | $59,441 |
| Indemnification reserves | | | 23,920 | 5,527 |
| Total balance included in Other liabilities | | | $107,322 | $64,968 |
| (in thousands) | Q4 2025 | Q4 2024 | YTD 2025 | YTD 2024 |
| Initial loan repurchase costs | $7,996 | $7,041 | $8,318 | $7,041 |
| Indemnified and repurchased loan operating costs | 7,696 | 1,414 | 12,440 | 3,532 |
| Expected principal losses on loan repurchase ("loan repurchase losses") | 20,092 | - | 20,092 | - |
| Indemnified and repurchased loan expenses | $35,784 | $8,455 | $40,850 | $10,573 |
| Provision (benefit) for loan losses - Indemnified Loans | $(300) | $3,760 | $199 | $11,860 |
| Total impact of indemnified and repurchased loans | $35,484 | $12,215 | $41,049 | $22,433 |
- Refer to NOTE 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for more information about the nature of these reserves.
- Included as a component of Provision (benefit) for credit losses in the Consolidated Statements of Income.
DISCUSSION OF INDEMNIFIED AND REPURCHASED LOANS:
- During the past two years, we have repurchased, indemnified or expect to indemnify the GSEs for $221.6 million of loans, including $134.3 million of loans during the fourth quarter 2025.
- In the first quarter of 2026, the Company completed an internal investigation into fraudulent borrower activity on certain loans sold to Freddie Mac. Stemming from that investigation, Freddie Mac has either asked us, or we expect they will ask us, to repurchase three portfolios of loans associated with three separate borrowers with a UPB of $134.3 million. We executed a forbearance and indemnification agreement for one of the portfolios of loans with a UPB of $50.7 million that delays the repurchase of the loans until the fourth quarter of 2027 and indemnifies Freddie Mac for any losses until the repurchase date. We are negotiating a forbearance and indemnification agreement with Freddie Mac for the second portfolio of loans with a UPB of $49.3 million, and we expect to negotiate a forbearance and indemnification agreement for the third portfolio of loans with a UPB of $34.3 million in the first half of 2026.
- Prior to the fourth quarter, our approach to repurchased and indemnified loans was to operate them with the intent of repositioning them to recover a portion of the losses incurred. That approach no longer aligns with our long-term strategy, and we shifted our focus for the $87.3 million of assets repurchased or indemnified in 2024 to a near-term exit strategy.
- We have repurchased loans with a UPB totaling $52.5 million over the last two years, and those loans are currently valued at $47.7 million. We are evaluating the most effective path to selling those assets. We have indemnification agreements in place for another $83.4 million of loans as of December 31, 2025, with collateral posted of $22.7 million, resulting in a maximum cash outlay over the next two years of $60.7 million. We expect to sell the loans or underlying assets associated with the loans prior to the expiration of the indemnification agreements in order to pay off the repurchase obligation.
FOURTH QUARTER 2025
FINANCIAL RESULTS BY SEGMENT
Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s income before taxes, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:
- Interest expense on corporate debt, which pays a variable interest rate, remained flat at $16.0 million for the fourth quarter, primarily due to lower average interest rates during the fourth quarter of 2025 compared to the fourth quarter of 2024, largely offset by an increase in the balance outstanding from the refinancing of our debt in the first quarter of 2025.
- Income tax expense decreased $16.4 million, or 150% year over year, primarily resulting from the 136% decrease in income before taxes during the fourth quarter of 2025 compared to 2024, partially offset by a one-time benefit in international taxes in 2024 with no comparable benefit in 2025.
| FINANCIAL RESULTS - CAPITAL MARKETS |
| (in thousands) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Loan origination and debt brokerage fees, net ("Origination fees") | $101,739 | $91,732 | $10,007 | 11% |
| Fair value of expected net cash flows from servicing, net of guaranty obligation ("MSR income") | 50,060 | 55,920 | (5,860) | (10) |
| Property sales broker fees | 28,488 | 21,175 | 7,313 | 35 |
| Net warehouse interest income (expense), loans held for sale ("LHFS") | (909) | (2,458) | 1,549 | (63) |
| Other revenues | 11,457 | 14,693 | (3,236) | (22) |
| Total revenues | $190,835 | $181,062 | $9,773 | 5% |
| Personnel | $141,266 | $122,601 | $18,665 | 15% |
| Amortization and depreciation | 1,146 | 1,139 | 7 | 1 |
| Interest expense on corporate debt | 4,316 | 4,451 | (135) | (3) |
| Goodwill impairment | - | 33,000 | (33,000) | (100) |
| Fair value adjustments to contingent consideration liabilities | - | (38,125) | 38,125 | (100) |
| Asset impairments and other expenses | - | 460 | (460) | (100) |
| Other operating expenses | 6,713 | 5,453 | 1,260 | 23 |
| Total expenses | $153,441 | $128,979 | $24,462 | 19% |
| Income (loss) before taxes | $37,394 | $52,083 | $(14,689) | (28)% |
| Income tax expense (benefit) | 10,170 | 11,586 | (1,416) | (12) |
| Net income before temporary equity holders | $27,224 | $40,497 | $(13,273) | (33)% |
| Less: net income (loss) attributable to temporary equity holders | 837 | - | 837 | N/A |
| Walker & Dunlop net income (loss) | $26,387 | $40,497 | $(14,110) | (35)% |
| Key revenue metrics (as a percentage of debt financing volume): | | | | |
| Origination fee rate | 0.75% | 0.94% | | |
| Agency MSR rate | 1.01 | 1.14 | | |
| Key performance metrics: | | | | |
| Operating margin | 20% | 29% | | |
| Adjusted EBITDA | $(4,212) | $4,173 | $(8,385) | (201)% |
| Diluted earnings (loss) per share | $0.77 | $1.20 | $(0.43) | (36)% |
- Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
- MSR income as a percentage of Agency debt financing volume.
CAPITAL MARKETS - DISCUSSION OF QUARTERLY RESULTS:
The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.
- Transaction volume growth of 36% this quarter was the principal driver of the 5% revenue growth for the segment. Revenues grew at a slower pace than transaction volumes principally due to (i) the increase in origination fees, driven primarily by debt brokerage and property sales transaction growth and several large transactions this quarter; and (ii) lower non-cash MSR income on our new Fannie Mae loan originations.
- Debt brokerage and property sales transactions generally carry lower origination fee rates than Agency transactions. Large portfolio transactions also generate lower origination fee rates than smaller transactions, all else equal. The combination of these two factors this quarter drove the decline in the origination fee rate to 75 basis points this quarter, compared to 94 basis points in the year ago fourth quarter.
- The decrease in MSR income was largely a result of the decrease in the Agency MSR rate. The Agency MSR rate decreased due to a decline in the weighted-average servicing fee (“WASF”) on Fannie Mae originations. Borrowers continue opting for shorter duration loans due to the shape of the yield curve and the desire to maintain optionality in the short term as interest rates continue normalizing.
- Property sales broker fees increased year over year primarily due to the 31% increase in property sales volume, coupled with an increase in the property sales broker fee rate year over year.
- Personnel expense increased in the fourth quarter of 2025 primarily due to an increase in commission costs primarily resulting from growth in origination and property sales broker fees, coupled with an increase in salaries and benefits resulting from an increase in average segment headcount.
- The change in fair value adjustments to contingent consideration liabilities year over year was due to an adjustment taken in the fourth quarter of 2024 with no comparable adjustment in the current year quarter. The adjustment for the fourth quarter of 2024 was driven by the reduction of an expected payout of earnouts associated with a technology acquisition and one of our previous brokerage acquisitions, as both were no longer expected to achieve specific long-term performance hurdles because of the sharp declines in transaction volumes in 2023 and 2024.
- The decrease in adjusted EBITDA was primarily due to the decrease in income before taxes, coupled with an increase in personnel expenses, partially offset by increases in origination fees and property sales broker fees.
| FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT |
| (in thousands) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Origination fees | $1,875 | $2,210 | $(335) | (15)% |
| Servicing fees | 86,339 | 82,961 | 3,378 | 4 |
| Investment management fees | 11,192 | (3,110) | 14,302 | (460) |
| Net warehouse interest income, loans held for investment | - | 272 | (272) | (100) |
| Placement fees and other interest income | 33,468 | 40,278 | (6,810) | (17) |
| Other revenues | 10,424 | 34,687 | (24,263) | (70) |
| Total revenues | $143,298 | $157,298 | $(14,000) | (9)% |
| Personnel | $23,959 | $23,967 | $(8) | (0)% |
| Amortization and depreciation | 58,269 | 65,155 | (6,886) | (11) |
| Provision (benefit) for credit losses | 3,105 | 4,529 | (1,424) | (31) |
| Interest expense on corporate debt | 10,200 | 9,986 | 214 | 2 |
| Fair value adjustments to contingent consideration liabilities | (8,243) | (10,830) | 2,587 | (24) |
| Indemnified and repurchased loan expenses | 35,784 | 8,455 | 27,329 | 323 |
| Asset impairments and other expenses | 26,055 | 621 | 25,434 | 4,096 |
| Other operating expenses | 6,541 | 15,526 | (8,985) | (58) |
| Total expenses | $155,670 | $117,409 | $38,261 | 33% |
| Income (loss) before taxes | $(12,372) | $39,889 | $(52,261) | (131)% |
| Income tax expense (benefit) | (3,818) | 7,007 | (10,825) | (154) |
| Net income before noncontrolling interests | $(8,554) | $32,882 | $(41,436) | (126)% |
| Less: net income (loss) from noncontrolling interests | (36) | (3,671) | 3,635 | (99) |
| Walker & Dunlop net income (loss) | $(8,518) | $36,553 | $(45,071) | (123)% |
| Key performance metrics: | | | | |
| Operating margin | (9)% | 25% | | |
| Adjusted EBITDA | $79,792 | $123,768 | $(43,976) | (36)% |
| Diluted earnings (loss) per share | $(0.26) | $1.07 | $(1.33) | (124)% |
SERVICING & ASSET MANAGEMENT - DISCUSSION OF QUARTERLY RESULTS:
The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services.
- The $8.7 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
- Investment management fees increased primarily due to an increase in investment management fees from our LIHTC operations, due to higher asset dispositions in the fourth quarter of 2025. Our LIHTC business recognizes asset management fees through cash flows from its underlying property level investments and the sale, or realization, of those property level investments.
- The primary driver in the decrease in placement fees was a decline in the placement fee rates on escrow deposits as a result of the lower short-term interest rate environment in 2025 compared to 2024, combined with a decrease in the average replacement reserve escrow balance period over period.
- During the fourth quarter of 2024, we entered into an agreement to sell a portfolio of affordable assets, including some of the assets, which we have operated since the acquisition of Alliant in 2021. The sale of one of the assets closed in the fourth quarter of 2024, generating a gain on sale of $26.5 million included in other revenues for this segment, explaining the year over year decline in that line item. The remaining assets included in that sale were expected to close in 2025 upon receipt of customary consents. Those consents are still in process, and that sale is now expected to close in the first half of 2026. However, intangible and other assets were written off in the fourth quarter of 2024 in connection with the agreement to sell the assets, explaining most of the decline in amortization and depreciation this year.
- The change in fair value adjustments to contingent consideration liabilities was primarily due to an $8.2 million contingent consideration revaluation in the fourth quarter of 2025 compared to a $10.8 million revaluation in the fourth quarter of 2024, as the earnout targets for our LIHTC acquisition were not fully achieved.
- The increase in indemnified and repurchased loan expenses was primarily driven by the repurchase requests as outlined in the Indemnified and Repurchased Loans section above.
- The increase in asset impairments and other expenses was primarily driven by the asset impairments recorded in the fourth quarter of 2025 as outlined in the Key Performance Metrics section above.
- Other operating expenses decreased largely due to a decrease in professional fees, driven by a decline in legal costs at one of our LIHTC subsidiaries.
- The decrease in losses attributed to noncontrolling interests is the result of a change in the ownership of an entity producing losses in 2024. As part of a larger transaction with the noncontrolling interest holder, we regained full control of the entity at the end of 2024. The remaining noncontrolling interests in 2025 are immaterial.
| FINANCIAL RESULTS - CORPORATE |
| (in thousands) | Q4 2025 | Q4 2024 | $ Variance | % Variance |
| Other interest income | $3,617 | $3,684 | $(67) | (2)% |
| Other revenues | 2,274 | (593) | 2,867 | (483) |
| Total revenues | $5,891 | $3,091 | $2,800 | 91% |
| Personnel | $21,888 | $22,610 | $(722) | (3)% |
| Amortization and depreciation | 2,669 | 1,760 | 909 | 52 |
| Interest expense on corporate debt | 1,467 | 1,484 | (17) | (1) |
| Asset impairments and other expenses | 4,335 | - | 4,335 | N/A |
| Other operating expenses | 19,111 | 17,089 | 2,022 | 12 |
| Total expenses | $49,470 | $42,943 | $6,527 | 15% |
| Income (loss) before taxes | $(43,579) | $(39,852) | $(3,727) | 9% |
| Income tax expense (benefit) | (11,799) | (7,638) | (4,161) | 54 |
| Walker & Dunlop net income (loss) | $(31,780) | $(32,214) | $434 | (1)% |
| Key performance metric: | | | | |
| Adjusted EBITDA | $(36,825) | $(33,364) | $(3,461) | 10% |
| Diluted earnings (loss) per share | $(0.92) | $(0.95) | $0.03 | (3)% |
CORPORATE - DISCUSSION OF QUARTERLY RESULTS:
The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups (“support functions”). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results.
- Total revenues increased primarily due to an increase in other revenues driven by income from equity method investments resulting from improved performance.
- Personnel expenses decreased 3% in the fourth quarter of 2025 due to a decrease in variable compensation related to company performance, partially offset by an increase in salaries and benefits.
- The increase in asset impairments and other expenses was primarily due to increased legal and other professional fees related to the aforementioned borrower fraud investigation, as well as approximately $2.1 million of third party costs incurred in connection with an M&A opportunity that did not materialize.
- Other operating expenses increased largely as a result of increased software costs and travel and entertainment expenses for an annual corporate event held in the fourth quarter 2025, with no comparable event in 2024.
FULL-YEAR 2025
CONSOLIDATED OPERATING RESULTS
Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s income before taxes, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:
- Interest expense on corporate debt decreased $5.0 million, or 7% from the prior year, primarily due to lower average interest rates during 2025 compared to 2024, partially offset by an increase in the balance outstanding from the aforementioned refinancing of our debt.
- Income tax expense decreased $8.5 million, or 28% year over year, primarily driven by a 40% decrease in income before taxes, partially offset by a decrease in excess tax benefits. In 2025, we recognized a $1.4 million shortfall in excess tax benefits compared to a $1.7 million benefit in 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the year.
| FULL-YEAR OPERATING RESULTS AND KEY PERFORMANCE METRICS |
| (in thousands) | 2025 | 2024 | $ Variance | % Variance |
| Debt financing volume | $41,483,695 | $30,154,666 | $11,329,029 | 38% |
| Property sales volume | 13,349,892 | 9,751,223 | 3,598,669 | 37 |
| Total transaction volume | $54,833,587 | $39,905,889 | $14,927,698 | 37% |
| Total revenues | 1,234,306 | 1,132,490 | 101,816 | 9 |
| Total expenses | 1,155,308 | 1,000,989 | 154,319 | 15 |
| Walker & Dunlop net income (loss) | $56,247 | $108,167 | $(51,920) | (48)% |
| Adjusted EBITDA | 262,616 | 328,549 | (65,933) | (20) |
| Diluted earnings (loss) per share | $1.64 | $3.19 | $(1.55) | (49)% |
| Adjusted core EPS | $3.50 | $4.97 | $(1.47) | (30)% |
| Operating margin | 6% | 12% | | |
| Return on equity | 3 | 6 | | |
DISCUSSION OF FULL-YEAR RESULTS:
- The increase in total transaction volume was primarily driven by a 39% increase in Agency debt financing volume, a 37% increase in brokered debt financing volume, and a 37% increase in property sales volume year over year.
- The 9% growth in Walker & Dunlop total revenues in 2025 was outpaced by the 15% increase in total expenses, primarily due to increases in indemnified and repurchased loan expenses, asset impairments and other expenses, and increased variable compensation costs associated with the 37% increase in total transaction volume. The decline in net income and diluted EPS were principally attributable to a 40% decrease in income before taxes.
- Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and other revenues, coupled with increased personnel costs and indemnified and repurchased loan expenses and a decrease in losses attributable to non-controlling interest holders. These changes were partially offset by increases in origination fees, property sales broker fees, and servicing fees.
- Diluted EPS decreased 49% year over year, in tandem with the 48% decline in net income, compared to a decrease of 30% year over year for adjusted core EPS. Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased.
FULL-YEAR 2025
FINANCIAL RESULTS BY SEGMENT
| FULL-YEAR FINANCIAL RESULTS - CAPITAL MARKETS |
| (in thousands) | 2025 | 2024 | $ Variance | % Variance |
| Total revenues | $646,950 | $524,841 | $122,109 | 23% |
| Total expenses | 521,275 | 437,549 | 83,726 | 19 |
| Walker & Dunlop net income (loss) | $89,819 | $66,664 | $23,155 | 35% |
| Key revenue metrics (as a percentage of debt financing volume): | | | | |
| Origination fee rate | 0.83% | 0.92% | | |
| Agency MSR rate | 0.96 | 1.14 | | |
| Key performance metrics: | | | | |
| Operating margin | 19% | 17% | | |
| Adjusted EBITDA | $(16,980) | $(28,258) | $11,278 | (40)% |
| Diluted earnings (loss) per share | 2.62 | 1.97 | 0.65 | 33 |
- Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
- MSR income as a percentage of Agency debt financing volume.
CAPITAL MARKETS - DISCUSSION OF FULL-YEAR RESULTS:
- Total revenues increased primarily due to increases in origination fees, MSR income, and property sales broker fees due to the 37% increase in total transaction volume, partially offset by a decline in our origination fee and MSR rates. Although our Agency debt financing volume grew significantly, the competitive environment in the multifamily debt financing market throughout 2025 resulted in a reduction in the origination fee rate for Agency originations and the overall origination fee rate, particularly for Freddie Mac originations. Additionally, we originated a large Fannie Mae portfolio during the second quarter of 2025, with no comparable activity in 2024, contributing to the decline in origination fee rates as large portfolios earn lower fee margins.
- The increase in total expenses was primarily related to increases in personnel costs mostly due to (i) increased commission costs resulting from the growth in origination fees and property sales broker fees, (ii) increased salaries and benefits largely related to an increase in average segment headcount, and (iii) increased severance expense, resulting from the separation of several underperforming producers.
- Net income, Diluted EPS and adjusted EBITDA for the Capital Markets segment have improved sequentially the last three years and represent a direct reflection of the steady improvement in overall Capital Markets transaction volumes. The increases in operating margin, adjusted EBITDA, and diluted EPS were largely the result of the increased total transaction volume year over year.
| FULL-YEAR FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT |
| (in thousands) | 2025 | 2024 | $ Variance | % Variance |
| Total revenues | $566,564 | $591,649 | $(25,085) | (4)% |
| Total expenses | 448,712 | 396,024 | 52,688 | 13 |
| Walker & Dunlop net income (loss) | $85,112 | $157,750 | $(72,638) | (46)% |
| Key performance metrics: | | | | |
| Operating margin | 21% | 33% | | |
| Adjusted EBITDA | $419,049 | $485,382 | $(66,333) | (14)% |
| Diluted earnings (loss) per share | 2.48 | 4.65 | (2.17) | (47) |
SERVICING & ASSET MANAGEMENT - DISCUSSION OF FULL-YEAR RESULTS:
- The decrease in total revenues in 2025 was primarily the result of a decline in placement fees and other interest income and other revenues. Placement fees and other interest income was impacted by lower average placement fees earned on escrow
deposits resulting from lower short-term interest rates, while other revenues were impacted by the sale of an affordable asset in 2024 with no comparable activity in 2025. Partially offsetting these declines was an increase in servicing fees, driven by an increase in the average servicing portfolio period over period.
- The increase in total expenses year over year was primarily due to increases in indemnified and repurchased loan expenses and asset impairments and other expenses. The increases were primarily the result of (i) investment impairments related to assets held by one of our affordable operating subsidiaries, (ii) an increase in costs associated with the indemnified and repurchased loan portfolios from 2024 and 2025, and (iii) the write off of unamortized debt issuance costs associated with the refinancing of our corporate debt in the first quarter of 2025. Personnel costs also increased primarily due to higher salaries, benefits, and severance costs.
- The increase in expenses was the primary driver of the decreases in operating margin, adjusted EBITDA, and diluted EPS.
| FULL-YEAR FINANCIAL RESULTS - CORPORATE |
| (in thousands) | 2025 | 2024 | $ Variance | % Variance |
| Total revenues | $20,792 | $16,000 | $4,792 | 30% |
| Total expenses | 185,321 | 167,416 | 17,905 | 11 |
| Walker & Dunlop net income (loss) | $(118,684) | $(116,247) | $(2,437) | 2% |
| Key performance metric: | | | | |
| Adjusted EBITDA | $(139,453) | $(128,575) | $(10,878) | 8% |
| Diluted earnings (loss) per share | (3.46) | (3.43) | (0.03) | 1 |
CORPORATE - DISCUSSION OF FULL-YEAR RESULTS:
- Total revenues increased primarily due to a change to income from equity method investments in 2025 from a loss from equity method investments in 2024.
- Total expenses increased primarily due to increased personnel costs, asset impairment and other expenses, and other operating expenses year over year. Personnel expense increased largely due to increased salaries and benefits, driven by an increase in average segment headcount, partially offset by a decrease in subjective bonus accrual related to company performance. The increase in asset impairments and other expenses was driven by increased legal and other professional fees related to increased compliance costs and other corporate initiatives, while other operating expenses saw a rise in software and travel and entertainment costs.
CAPITAL SOURCES AND USES
On February 25, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the first quarter of 2026. The dividend will be paid on March 27, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of March 13, 2026.
On February 12, 2025, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 21, 2025 (the “2025 Share Repurchase Program”). As of December 31, 2025, we had not repurchased any shares of common stock under the 2025 Share Repurchase Program. On February 13, 2026, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 26, 2026 (the “2026 Share Repurchase Program”).
Any repurchases made pursuant to the 2026 Share Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.
CONFERENCE CALL INFORMATION
Listeners can access the Company’s quarterly conference call for more information regarding our financial results via the dial-in number and webcast link below. Presentation materials related to the conference call will be posted to the Investor Relations section of the Company’s website prior to the call. An audio replay will also be available on the Investor Relations section of the Company’s website, along with the presentation materials.
ABOUT WALKER & DUNLOP
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
NON-GAAP FINANCIAL MEASURES
To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses adjusted EBITDA, adjusted core net income, and adjusted core EPS, which are non-GAAP financial measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. When analyzing our operating performance, readers should use adjusted EBITDA, adjusted core net income, and adjusted core EPS in addition to, and not as an alternative for, net income and diluted EPS.
Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, loan repurchase losses, stock-based compensation, the fair value of expected net cash flows from servicing, net, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.
We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financial information, provide useful information to investors by offering:
- the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
- the ability to better identify trends in the Company’s underlying business and perform related trend analyses; and
- a better understanding of how management plans and measures the Company’s underlying business.
We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the Company’s GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP By Segment.”
FORWARD-LOOKING STATEMENTS
Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.
Forward-looking statements notice
While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, including additional charges or losses related to loans we have already repurchased or indemnified and new repurchase requests we may receive from the GSEs related to the previously identified instances of borrower fraud, additional instances of borrower fraud, or other reasons.
For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.
CONTACT US
Walker & Dunlop, Inc. and Subsidiaries
Consolidated Balance Sheets
Unaudited
| December 31, | September 30, | June 30, | March 31, | December 31, |
|---|
| (in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 |
| Assets | | | | | |
| Cash and cash equivalents | $299,315 | $274,828 | $233,712 | $180,971 | $279,270 |
| Restricted cash | 22,772 | 44,462 | 41,090 | 32,268 | 25,156 |
| Pledged securities, at fair value | 224,954 | 221,730 | 218,435 | 214,374 | 206,904 |
| Loans held for sale, at fair value | 1,436,350 | 2,197,739 | 1,177,837 | 946,372 | 780,749 |
| Mortgage servicing rights | 808,145 | 805,975 | 817,814 | 825,761 | 852,399 |
| Goodwill | 868,710 | 868,710 | 868,710 | 868,710 | 868,710 |
| Other intangible assets | 141,877 | 145,631 | 149,385 | 153,139 | 156,893 |
| Receivables, net | 419,358 | 374,316 | 360,646 | 372,689 | 335,879 |
| Committed investments in tax credit equity | 241,401 | 257,564 | 194,479 | 337,510 | 313,230 |
| Other assets | 596,596 | 606,320 | 612,932 | 580,084 | 562,803 |
| Total assets | $5,059,478 | $5,797,275 | $4,675,040 | $4,511,878 | $4,381,993 |
| Liabilities | | | | | |
| Warehouse notes payable | $1,420,272 | $2,175,157 | $1,157,234 | $931,002 | $781,706 |
| Corporate notes payable | 829,218 | 829,909 | 828,657 | 825,556 | 768,044 |
| Allowance for risk-sharing obligations | 37,546 | 34,140 | 33,191 | 31,871 | 28,159 |
| Deferred tax liabilities, net | 237,001 | 240,912 | 240,929 | 241,456 | 241,386 |
| Commitments to fund investments in tax credit equity | 219,949 | 223,788 | 168,863 | 295,052 | 274,975 |
| Other liabilities | 569,630 | 515,903 | 484,368 | 442,852 | 527,860 |
| Total liabilities | $3,313,616 | $4,019,809 | $2,913,242 | $2,767,789 | $2,622,130 |
| Temporary Equity | | | | | |
| Profit interests of a wholly owned subsidiary subject to possible redemption | $(1,036) | $ - | $ - | $ - | $ - |
| Stockholders' Equity | | | | | |
| Common stock | $334 | $333 | $333 | $333 | $332 |
| Additional paid-in capital | 450,434 | 444,127 | 438,129 | 432,788 | 429,000 |
| Accumulated other comprehensive income (loss) | 1,876 | 1,833 | 2,764 | 1,295 | 586 |
| Retained earnings | 1,282,390 | 1,319,274 | 1,308,792 | 1,297,764 | 1,317,945 |
| Total stockholders’ equity | $1,735,034 | $1,765,567 | $1,750,018 | $1,732,180 | $1,747,863 |
| Noncontrolling interests | 11,864 | 11,899 | 11,780 | 11,909 | 12,000 |
| Total permanent equity | $1,746,898 | $1,777,466 | $1,761,798 | $1,744,089 | $1,759,863 |
| Commitments and contingencies | - | - | - | - | - |
| Total liabilities, temporary equity, and permanent equity | $5,059,478 | $5,797,275 | $4,675,040 | $4,511,878 | $4,381,993 |
Walker & Dunlop, Inc. and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
Unaudited
| Quarterly Trends | Years ended |
|---|
| | | | | | December 31, |
|---|
| (in thousands, except per share amounts) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | 2025 | 2024 |
| Revenues | | | | | | | |
| Origination fees | $103,614 | $97,845 | $94,309 | $46,381 | $93,942 | $342,149 | $276,562 |
| MSR income | 50,060 | 48,657 | 53,153 | 27,811 | 55,920 | 179,681 | 153,593 |
| Servicing fees | 86,339 | 85,189 | 83,693 | 82,221 | 82,961 | 337,442 | 325,644 |
| Property sales broker fees | 28,488 | 26,546 | 14,964 | 13,521 | 21,175 | 83,519 | 60,583 |
| Investment management fees | 11,192 | 6,178 | 7,577 | 9,682 | (3,110) | 34,629 | 36,976 |
| Net warehouse interest income (expense) | (909) | (2,035) | (1,760) | (786) | (2,186) | (5,490) | (7,033) |
| Placement fees and other interest income | 37,085 | 46,302 | 35,986 | 33,211 | 43,962 | 152,584 | 167,961 |
| Other revenues | 24,155 | 28,993 | 31,318 | 25,326 | 48,787 | 109,792 | 118,204 |
| Total revenues | $340,024 | $337,675 | $319,240 | $237,367 | $341,451 | $1,234,306 | $1,132,490 |
| Expenses | | | | | | | |
| Personnel | $187,113 | $177,418 | $161,888 | $121,390 | $169,178 | $647,809 | $559,246 |
| Amortization and depreciation | 62,084 | 60,041 | 58,936 | 57,621 | 68,054 | 238,682 | 237,549 |
| Provision (benefit) for credit losses | 3,105 | 949 | 1,820 | 3,712 | 4,529 | 9,586 | 10,839 |
| Interest expense on corporate debt | 15,983 | 16,451 | 16,767 | 15,514 | 15,921 | 64,715 | 69,686 |
| Goodwill impairment | - | - | - | - | 33,000 | - | 33,000 |
| Fair value adjustments to contingent consideration liabilities | (8,243) | - | - | - | (48,955) | (8,243) | (50,321) |
| Indemnified and repurchased loan expenses | 35,784 | 3,526 | 683 | 857 | 8,455 | 40,850 | 10,573 |
| Asset impairments and other expenses | 30,390 | 663 | 1,478 | 4,215 | 1,081 | 36,746 | 1,181 |
| Other operating expenses | 32,365 | 32,690 | 31,294 | 28,814 | 38,068 | 125,163 | 129,236 |
| Total expenses | $358,581 | $291,738 | $272,866 | $232,123 | $289,331 | $1,155,308 | $1,000,989 |
| Income (loss) before taxes | $(18,557) | $45,937 | $46,374 | $5,244 | $52,120 | $78,998 | $131,501 |
| Income tax expense (benefit) | (5,447) | 12,516 | 12,425 | 2,519 | 10,955 | 22,013 | 30,543 |
| Net income before noncontrolling interests and temporary equity holders | $(13,110) | $33,421 | $33,949 | $2,725 | $41,165 | $56,985 | $100,958 |
| Less: net income (loss) from noncontrolling interests | (36) | (31) | (3) | (29) | (3,671) | (99) | (7,209) |
| Less: net income (loss) attributable to temporary equity holders | 837 | - | - | - | - | 837 | - |
| Walker & Dunlop net income (loss) | $(13,911) | $33,452 | $33,952 | $2,754 | $44,836 | $56,247 | $108,167 |
| Other comprehensive income (loss), net of tax | 43 | (931) | 1,469 | 709 | (880) | 1,290 | 1,065 |
| Walker & Dunlop comprehensive income (loss) | $(13,868) | $32,521 | $35,421 | $3,463 | $43,956 | $57,537 | $109,232 |
| Effective Tax Rate | 29% | 27% | 27% | 48% | 21% | 28% | 23% |
| Basic earnings (loss) per share | $(0.41) | $0.98 | $1.00 | $0.08 | $1.32 | $1.65 | $3.19 |
| Diluted earnings (loss) per share | (0.41) | 0.98 | 0.99 | 0.08 | 1.32 | 1.64 | 3.19 |
| Cash dividends paid per common share | 0.67 | 0.67 | 0.67 | 0.67 | 0.65 | 2.68 | 2.60 |
| Basic weighted-average shares outstanding | 33,388 | 33,376 | 33,358 | 33,264 | 33,192 | 33,347 | 33,116 |
| Diluted weighted-average shares outstanding | 33,410 | 33,397 | 33,371 | 33,296 | 33,223 | 33,369 | 33,158 |
SUPPLEMENTAL OPERATING DATA
Unaudited
| Quarterly Trends | Years ended |
|---|
| | | | | | December 31, |
|---|
| (in thousands, except per share data and unless otherwise noted) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | 2025 | 2024 |
| Transaction Volume: | | | | | | | |
| Components of Debt Financing Volume | | | | | |
| Fannie Mae | $2,785,231 | $2,141,092 | $3,114,308 | $1,511,794 | $3,225,633 | $9,552,425 | $7,641,161 |
| Freddie Mac | 2,023,592 | 3,664,380 | 1,752,597 | 808,247 | 1,553,495 | 8,248,816 | 5,227,550 |
| Ginnie Mae - HUD | 153,748 | 325,169 | 288,449 | 148,158 | 116,437 | 915,524 | 588,529 |
| Brokered | 8,675,937 | 4,512,729 | 6,335,071 | 2,552,943 | 4,893,643 | 22,076,680 | 16,093,776 |
| Principal Lending and Investing | 167,700 | 199,250 | 147,800 | 175,500 | 207,000 | 690,250 | 603,650 |
| Total Debt Financing Volume | $13,806,208 | $10,842,620 | $11,638,225 | $5,196,642 | $9,996,208 | $41,483,695 | $30,154,666 |
| Property Sales Volume | 4,524,142 | 4,672,875 | 2,313,585 | 1,839,290 | 3,450,614 | 13,349,892 | 9,751,223 |
| Total Transaction Volume | $18,330,350 | $15,515,495 | $13,951,810 | $7,035,932 | $13,446,822 | $54,833,587 | $39,905,889 |
| Key Performance Metrics: | | | | | | | |
| Operating margin | (5)% | 14% | 15% | 2% | 15% | 6% | 12% |
| Return on equity | (3) | 8 | 8 | 1 | 10 | 3 | 6 |
| Walker & Dunlop net income (loss) | $(13,911) | $33,452 | $33,952 | $2,754 | $44,836 | $56,247 | $108,167 |
| Adjusted EBITDA | 38,755 | 82,084 | 76,811 | 64,966 | 94,577 | 262,616 | 328,549 |
| Diluted earnings (loss) per share | (0.41) | 0.98 | 0.99 | 0.08 | 1.32 | 1.64 | 3.19 |
| Adjusted core EPS | 0.28 | 1.22 | 1.15 | 0.85 | 1.34 | 3.50 | 4.97 |
| Key Expense Metrics (as a percentage of total revenues): | | | | | |
| Personnel expense | 55% | 53% | 51% | 51% | 50% | 52% | 49% |
| Other operating expenses | 10 | 10 | 10 | 12 | 11 | 10 | 11 |
| Key Revenue Metrics (as a percentage of debt financing volume): | | | | | |
| Origination fee rate | 0.75% | 0.90% | 0.82% | 0.90% | 0.94% | 0.83% | 0.92% |
| Agency MSR rate | 1.01 | 0.79 | 1.03 | 1.13 | 1.14 | 0.96 | 1.14 |
| Other Data: | | | | | | | |
| Market capitalization at period end | $2,048,798 | $2,847,907 | $2,395,939 | $2,901,726 | $3,282,018 | | |
| Closing share price at period end | $60.15 | $83.62 | $70.48 | $85.36 | $97.21 | | |
| Average headcount | 1,464 | 1,438 | 1,400 | 1,394 | 1,391 | | |
| Components of Servicing Portfolio (end of period): | | | | | |
| Fannie Mae | $72,708,372 | $71,006,342 | $70,042,909 | $69,176,839 | $68,196,744 | | |
| Freddie Mac | 42,595,441 | 40,473,401 | 39,433,013 | 38,556,682 | 39,185,091 | | |
| Ginnie Mae - HUD | 11,563,020 | 11,298,108 | 11,008,314 | 10,882,857 | 10,847,265 | | |
| Brokered | 17,111,320 | 16,553,827 | 16,864,888 | 17,032,338 | 17,057,912 | | |
| Total Servicing Portfolio | $143,978,153 | $139,331,678 | $137,349,124 | $135,648,716 | $135,287,012 | | |
| Assets under management | 18,631,100 | 18,521,907 | 18,623,451 | 18,518,413 | 18,423,463 | | |
| Total Managed Portfolio | $162,609,253 | $157,853,585 | $155,972,575 | $154,167,129 | $153,710,475 | | |
| Key Servicing Portfolio Metrics (end of period): | | | | | |
| Custodial escrow account deposits (in billions) | $3.1 | $2.8 | $2.7 | $2.4 | $2.7 | | |
| Weighted-average servicing fee rate (basis points) | 23.6 | 24.0 | 24.1 | 24.4 | 24.2 | | |
| Weighted-average remaining servicing portfolio term (years) | 7.2 | 7.4 | 7.4 | 7.5 | 7.7 | | |
- Brokered transactions for life insurance companies, commercial banks, and other capital sources.
- Includes debt financing volumes from our WDIP separate accounts.
- This is a non-GAAP financial measure. For more information on adjusted EBITDA, refer to the section above titled “Non-GAAP Financial Measures.”
- This is a non-GAAP financial measure. For more information on adjusted core EPS, refer to the section above titled “Non-GAAP Financial Measures.”
- Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
- MSR income as a percentage of Agency debt financing volume.
- Brokered loans serviced primarily for life insurance companies.
- WDAE assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.
KEY CREDIT METRICS
Unaudited
| December 31, | September 30, | June 30, | March 31, | December 31, |
|---|
| (dollars in thousands) | 2025 | 2025 | 2025 | 2025 | 2024 |
| Risk-sharing servicing portfolio: | | | | | |
| Fannie Mae Full Risk | $65,087,136 | $63,382,256 | $61,486,070 | $60,493,946 | $59,304,888 |
| Fannie Mae Modified Risk | 7,621,236 | 7,624,086 | 8,556,839 | 8,682,893 | 8,891,856 |
| Freddie Mac Modified Risk | 15,000 | 10,000 | 10,000 | 15,000 | 15,000 |
| Total risk-sharing servicing portfolio | $72,723,372 | $71,016,342 | $70,052,909 | $69,191,839 | $68,211,744 |
| Non-risk-sharing servicing portfolio: | | | | | |
| Freddie Mac No Risk | $42,580,441 | $40,463,401 | $39,423,013 | $38,541,682 | $39,170,091 |
| GNMA - HUD No Risk | 11,563,020 | 11,298,108 | 11,008,314 | 10,882,857 | 10,847,265 |
| Brokered | 17,111,320 | 16,553,827 | 16,864,888 | 17,032,338 | 17,057,912 |
| Total non-risk-sharing servicing portfolio | $71,254,781 | $68,315,336 | $67,296,215 | $66,456,877 | $67,075,268 |
| Total loans serviced for others | $143,978,153 | $139,331,678 | $137,349,124 | $135,648,716 | $135,287,012 |
| Loans held for investment (full risk) | $36,926 | $36,926 | $36,926 | $36,926 | $36,926 |
| Indemnification reserves | 23,920 | - | - | - | 5,527 |
| Interim Loan Joint Venture Managed Loans | 32,965 | 76,215 | 76,215 | 173,315 | 173,315 |
| At-risk servicing portfolio | $68,649,960 | $66,946,180 | $65,378,944 | $64,450,319 | $63,365,672 |
| Maximum exposure to at-risk portfolio | 14,052,667 | 13,704,585 | 13,382,410 | 13,200,846 | 12,893,593 |
| Defaulted loans | 158,821 | 139,020 | 108,530 | 108,530 | 41,737 |
| Defaulted loans as a percentage of the at-risk portfolio | 0.23% | 0.21% | 0.17% | 0.17% | 0.07% |
| Allowance for risk-sharing as a percentage of the at-risk portfolio | 0.05 | 0.05 | 0.05 | 0.05 | 0.04 |
| Allowance for risk-sharing as a percentage of maximum exposure | 0.27 | 0.25 | 0.25 | 0.24 | 0.22 |
- 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.
- At-risk servicing portfolio is defined as the balance of Fannie Mae DUS loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.
For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.
- 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.
- Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac SBL portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e. loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.
ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP
Unaudited
| Quarterly Trends | Years ended |
|---|
| | | | | | December 31, |
|---|
| (in thousands) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | 2025 | 2024 |
| Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA | | | | | |
| Walker & Dunlop Net Income (Loss) | $(13,911) | $33,452 | $33,952 | $2,754 | $44,836 | $56,247 | $108,167 |
| Income tax expense (benefit) | (5,447) | 12,516 | 12,425 | 2,519 | 10,955 | 22,013 | 30,543 |
| Interest expense on corporate debt | 15,983 | 16,451 | 16,767 | 15,514 | 15,921 | 64,715 | 69,686 |
| Amortization and depreciation | 62,084 | 60,041 | 58,936 | 57,621 | 68,054 | 238,682 | 237,549 |
| Provision (benefit) for credit losses | 3,105 | 949 | 1,820 | 3,712 | 4,529 | 9,586 | 10,839 |
| Loan repurchase losses | 20,092 | - | - | - | - | 20,092 | - |
| Net write-offs | - | - | - | - | - | - | (468) |
| Stock-based compensation expense | 6,909 | 7,332 | 6,064 | 6,442 | 7,702 | 26,747 | 27,326 |
| Goodwill impairment, net of contingent consideration liability fair value adjustments | - | - | - | - | (1,500) | - | (1,500) |
| Write-off of unamortized issuance costs from corporate debt paydown | - | - | - | 4,215 | - | 4,215 | - |
| MSR income | (50,060) | (48,657) | (53,153) | (27,811) | (55,920) | (179,681) | (153,593) |
| Adjusted EBITDA | $38,755 | $82,084 | $76,811 | $64,966 | $94,577 | $262,616 | $328,549 |
- Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income.
- For the three months and year ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million.
- Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.
ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT
Unaudited
| Capital Markets |
|---|
| Three months ended December 31, | For the year ended December 31, |
|---|
| (in thousands) | 2025 | 2024 | 2025 | 2024 |
| Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA | | |
| Walker & Dunlop Net Income (Loss) | $26,387 | $40,497 | $89,819 | $66,664 |
| Income tax expense (benefit) | 10,170 | 11,586 | 35,019 | 20,275 |
| Interest expense on corporate debt | 4,316 | 4,451 | 17,506 | 19,489 |
| Amortization and depreciation | 1,146 | 1,139 | 4,579 | 4,551 |
| Stock-based compensation expense | 3,829 | 3,920 | 14,514 | 15,856 |
| Goodwill impairment, net of contingent consideration liability fair value adjustments | - | (1,500) | - | (1,500) |
| Write-off of unamortized issuance costs from corporate debt paydown | - | - | 1,264 | - |
| MSR income | (50,060) | (55,920) | (179,681) | (153,593) |
| Adjusted EBITDA | $(4,212) | $4,173 | $(16,980) | $(28,258) |
| Servicing & Asset Management |
| Three months ended December 31, | For the year ended December 31, |
| (in thousands) | 2025 | 2024 | 2025 | 2024 |
| Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA | | |
| Walker & Dunlop Net Income (Loss) | $(8,518) | $36,553 | $85,112 | $157,750 |
| Income tax expense (benefit) | (3,818) | 7,007 | 32,839 | 45,437 |
| Interest expense on corporate debt | 10,200 | 9,986 | 41,345 | 43,834 |
| Amortization and depreciation | 58,269 | 65,155 | 225,640 | 226,067 |
| Provision (benefit) for credit losses | 3,105 | 4,529 | 9,586 | 10,839 |
| Loan repurchase losses | 20,092 | - | 20,092 | - |
| Net write-offs | - | - | - | (468) |
| Stock-based compensation expense | 462 | 538 | 1,906 | 1,923 |
| Write-off of unamortized issuance costs from corporate debt paydown | - | - | 2,529 | - |
| Adjusted EBITDA | $79,792 | $123,768 | $419,049 | $485,382 |
| Corporate |
| Three months ended December 31, | For the year ended December 31, |
| (in thousands) | 2025 | 2024 | 2025 | 2024 |
| Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA | | |
| Walker & Dunlop Net Income (Loss) | $(31,780) | $(32,214) | $(118,684) | $(116,247) |
| Income tax expense (benefit) | (11,799) | (7,638) | (45,845) | (35,169) |
| Interest expense on corporate debt | 1,467 | 1,484 | 5,864 | 6,363 |
| Amortization and depreciation | 2,669 | 1,760 | 8,463 | 6,931 |
| Stock-based compensation expense | 2,618 | 3,244 | 10,327 | 9,547 |
| Write-off of unamortized issuance costs from corporate debt paydown | - | - | 422 | - |
| Adjusted EBITDA | $(36,825) | $(33,364) | $(139,453) | $(128,575) |
- For the three months and year ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million.
- Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.
- Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income.
ADJUSTED CORE EPS RECONCILIATION
Unaudited
| Quarterly Trends | Years ended |
|---|
| | | | | | December 31, |
|---|
| (in thousands) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | 2025 | 2024 |
| Reconciliation of Walker & Dunlop Net Income to Adjusted Core Net Income | | | | | | | |
| Walker & Dunlop Net Income (Loss) | $(13,911) | $33,452 | $33,952 | $2,754 | $44,836 | $56,247 | $108,167 |
| Provision (benefit) for credit losses | 3,105 | 949 | 1,820 | 3,712 | 4,529 | 9,586 | 10,839 |
| Loan repurchase losses | 20,092 | - | - | - | - | 20,092 | - |
| Net write-offs | - | - | - | - | - | - | (468) |
| Amortization and depreciation | 62,084 | 60,041 | 58,936 | 57,621 | 68,054 | 238,682 | 237,549 |
| MSR income | (50,060) | (48,657) | (53,153) | (27,811) | (55,920) | (179,681) | (153,593) |
| Goodwill impairment | - | - | - | - | 33,000 | - | 33,000 |
| Contingent consideration accretion and fair value adjustments | (8,226) | 18 | 41 | 40 | (48,822) | (8,127) | (48,692) |
| Write-off of unamortized issuance costs from corporate debt paydown | - | - | - | 4,215 | - | 4,215 | - |
| Income tax expense adjustment | (3,662) | (3,856) | (2,429) | (11,355) | (177) | (21,302) | (18,264) |
| Adjusted Core Net Income | $9,422 | $41,947 | $39,167 | $29,176 | $45,500 | $119,712 | $168,538 |
| Reconciliation of Diluted EPS to Adjusted core EPS | | | | | | | |
| Walker & Dunlop Net Income | $(13,911) | $33,452 | $33,952 | $2,754 | $44,836 | $56,247 | $108,167 |
| Diluted weighted-average shares outstanding | 33,410 | 33,397 | 33,371 | 33,296 | 33,223 | 33,369 | 33,158 |
| Diluted earnings (loss) per share | $(0.41) | $0.98 | $0.99 | $0.08 | $1.32 | $1.64 | $3.19 |
| Adjusted Core Net Income | $9,422 | $41,947 | $39,167 | $29,176 | $45,500 | $119,712 | $168,538 |
| Diluted weighted-average shares outstanding | 33,410 | 33,397 | 33,371 | 33,296 | 33,223 | 33,369 | 33,158 |
| Adjusted Core EPS | $0.28 | $1.22 | $1.15 | $0.85 | $1.34 | $3.50 | $4.97 |
(1)Presented as a component of Indemnified and repurchased loan expenses on the Consolidated Statements of Income and Comprehensive Income(2)Presented as a component of Asset impairments and other expenses on the Consolidated Statements of Income.(3)Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Consolidated Statements of Income and Comprehensive Income in this press release, (ii) estimated annual effective rate, or (iii) annual marginal tax rate.
Contacts
Earnings Call: Phone: Confirmation Code: Webcast Link:
Thursday, February 26, 2026, at 8:30 a.m. EST · (800) 330-6710 from within the United States; (312) 471-1353 from outside the United States · 1125082 · https://event.webcasts.com/starthere.jsp?ei=1751166&tp_key=b177df1a08
Headquarters:7272 Wisconsin Avenue, Suite 1300Bethesda, Maryland 20814Phone 301.215.5500info@walkeranddunlop.com
Investors:Kelsey DuffeySenior Vice President, Investor RelationsPhone 301.202.3207investorrelations@walkeranddunlop.com
Media:Carol McNerneyChief Marketing OfficerPhone 301.215.5515info@walkeranddunlop.com