Walker & Dunlop Inc

Latest Results (08.04.2026):

Walker & Dunlop, Inc. — fourth quarter of 2025: The company reported Q4 2025 results showing strong transaction activity but a quarterly GAAP loss driven by one-time and credit-related charges. Total transaction volume rose 36% year‑over‑year to $18.3 billion and total revenues were $340.0 million (roughly flat YoY). GAAP net loss was $13.9 million (diluted loss per share $0.41), while adjusted measures were weaker: adjusted EBITDA of $38.8 million (down 59% YoY) and adjusted core EPS $0.28 (down 79% YoY). The quarter included $66.2 million of primarily non‑cash impairment and loan‑repurchase related expenses; the company ended the year with $299 million of cash and declared a $0.68 quarterly dividend for Q1 2026.

Top-line and volume

Total transaction volume in Q4 2025 was $18.33 billion (+36% vs Q4 2024). Revenues in the quarter were $340.0 million (flat YoY). For full‑year 2025, total transaction volume was $54.8 billion (+37%) and revenues were $1.234 billion (+9% YoY).

Profitability and adjusted results

Walker & Dunlop reported a GAAP net loss of $13.9 million in Q4 2025 (diluted loss per share $0.41). Adjusted EBITDA was $38.8 million (down 59% YoY) and adjusted core EPS was $0.28 (down 79% YoY). Full‑year 2025 net income was $56.2 million (diluted EPS $1.64, down ~49% YoY) and adjusted EBITDA for the year was $262.6 million (down 20%).

One‑time charges and loan repurchase activity

The quarter included about $66.2 million of expenses tied primarily to impairment charges on underperforming assets (the company plans to sell in 2026) and costs/losses from indemnified and repurchased loans. Much of the impairment was non‑cash; Walker & Dunlop noted $26.1 million of impairment related to affordable assets and $35.5 million of indemnified/repurchased loan expenses in Q4.

Servicing portfolio and recurring revenue

The servicing portfolio was $144.0 billion at December 31, 2025 (+6% YoY), driving durable recurring servicing revenues. Mortgage servicing rights are carried at $808 million (amortized cost) with an estimated fair value of $1.4 billion. The servicing portfolio added $8.7 billion net over the past 12 months.

Capital markets and sales business

Capital Markets showed strong transaction momentum: origination and debt brokerage growth helped lift segment revenues (+5% in the quarter vs Q4 2024). Property sales volume rose 31% in Q4 and property sales broker fees were up 35% YoY for the quarter. Agency MSR and origination fee rates declined moderately as borrowers favored shorter‑term loans and larger portfolio transactions.

Credit metrics, defaults and at‑risk exposure

The at‑risk servicing portfolio (loans with W&D risk‑sharing exposure) was about $68.65 billion at quarter‑end. Defaulted loans in that at‑risk portfolio rose to $158.8 million UPB (0.23% of the at‑risk portfolio). Maximum exposure to the at‑risk portfolio was ~$14.05 billion; allowance for risk‑sharing remained small (~0.05% of the at‑risk portfolio).

Indemnifications, fraud investigation and strategy shift

The company disclosed repurchases/indemnifications of $221.6 million of loans over the past two years, including $134.3 million associated with portfolios tied to borrower fraud identified in an internal investigation. Walker & Dunlop is negotiating forbearance/indemnification arrangements with Freddie Mac, has collateral posted against some exposures, and has shifted toward near‑term exit strategies for repurchased/indemnified assets.

Liquidity, capital actions and governance

Cash and cash equivalents were $299 million at year‑end. The Board declared a $0.68/share dividend for Q1 2026 (a 1.5% increase vs 2025 quarterly dividend). The Board also authorized a new $75 million share repurchase program on Feb 13, 2026 (following a $75M authorization in 2025 under which no shares were repurchased).

Market position and outlook

Management emphasized improving market share and league‑table rankings (#1 Fannie Mae DUS lender, #3 Freddie Mac Optigo lender, second‑largest combined GSE originator, and #4 multifamily property sales broker in the U.S.). They stated the business is positioned for growth in 2026, supported by a $144B servicing base, a robust Capital Markets pipeline, and an improving CRE transaction market.