Walker & Dunlop Stock Earnings Reports

Walker & Dunlop reported strong Q3 2025 results driven by a resurgent commercial real estate capital markets environment. Total transaction volume was $15.5 billion (up 34% YoY), revenue was $338 million (+16% YoY) and diluted EPS was $0.98 (+15% YoY). Adjusted EBITDA and adjusted core EPS rose modestly. Momentum was broad-based: Freddie Mac lending surged (up 137% to $3.7B), Fannie volumes grew modestly, HUD lending rose 20%, investment sales increased 30% to $4.7B, brokered debt financing was up 12%, appraisals +21% and small-balance lending +69%. A meaningful industry shift to shorter-duration (5-year) GSE loans has reduced capitalized mortgage servicing rights (MSRs) today but sets up a large refinancing/sales opportunity over the next 2–5 years as many loans reprice or mature (agency maturities accelerate from 2025 into 2028–2029). Technology and data products (Client Navigator, WDSuite, Galaxy) are driving client wins and new relationships (16% of transaction volume from new clients; ~68% of refinancing volume was new loans to Walker & Dunlop). Credit remains strong overall—at-risk defaults are low (~21 bps) and provisions were modest—however management disclosed two Freddie Mac portfolios with apparent borrower fraud that will require indemnification. Walker & Dunlop expects to collateralize indemnification with approximately $20 million of company capital and take associated credit losses in Q4. The firm finished Q3 with $275 million cash, approved a quarterly dividend of $0.67/sh, and remains confident in meeting 2025 guidance (absent additional buybacks). Management emphasized continued hiring, tech investment, expansion of debt brokerage and fund management, and a favorable macro backdrop (lower rates, recycled equity) supporting further volume growth into 2026.