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Walker & Dunlop, Inc. (WD) Discusses Whether America Faces a Housing Shortage September 1, 2026 8:00 PM EDT

Company Participants

Willy Walker - Chairman, President & CEO
Ivy Zelman - Executive Vice President

Presentation

Willy Walker
Chairman, President & CEO

Good afternoon, and welcome to another Walker Webcast. It's my great pleasure to have my friend, my colleague, the exceptional analyst, Ivy Zelman join me today. Hi, Ivy.

Ivy Zelman
Executive Vice President

Hi. Love it, thank you. Nice to be here again.

Willy Walker
Chairman, President & CEO

It's great to have you. Since I have you alone today, usually when we have Chris Mikkelsen and Aaron Appel joining us, I kind of dive right into the questions. And since I have you a loan today, I'm going to do a full bio on you because it's been a while since I've done that bio, and most people who listen to the Walker Webcast know you and know of your background, but I think it is worthwhile to run back through it today as we have a little bit more time of just a one-on-one conversation.

So Ivy bear with me as I embarrass you a little bit on how extraordinary this background is. So Ivy Zelman is one of the most influential housing analysts in the United States and is currently Executive Vice President and Co-Founder of Zelman, a Walker & Dunlop Company. She has spent more than 30 years analyzing housing, homebuilding, mortgage finance, building products, demographics and the broader residential real estate ecosystem. She began her career at Salomon Brothers in 1990, initially in investment banking before moving into equity research covering housing.

She joined Credit Suisse First Boston in 1998 when those firms were still Credit Suisse First Boston, where she became Managing Director and one of

A Look at Walker & Dunlop Inc (WD) After 3.1% Gain -- GF Value $94.33 vs Price $40.69

On August 25, 2026, Walker & Dunlop Inc WD shares rose 3.1% today, currently priced at $40.69. The stock has traded between $39.01 and $90.00 over the past year, reflecting significant volatility.

GF Value™ verdict: $40.69 vs $94.33, 56.9% undervaluedGF Score™: 64/100 (Above Average)Most notable signal: Insider activity shows net buying of $0.3M over the past 12 monthsIs WD Overvalued or Undervalued?Walker & Dunlop Inc's current price of $40.69 is significantly below the GF Value™ estimate of $94.33, which indicates a 56.9% margin of safety. GF Value™ is GuruFocus' proprietary intrinsic-value estimate that considers historical trading multiples, the company's past growth, and potential future performance. However, given that WD has been unprofitable and cash flow negative, the GF Value™ figure should be viewed as a directional warning rather than a precise fair-value target.

The GF Valuation label suggests that WD may be a possible value trap. This means that while the stock appears undervalued based on GF Value™, the underlying business fundamentals may not support a sustainable price increase. Investors need to consider this risk seriously, as the company has faced challenges that have led to its current financial state.

How Does WD's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)36.3x23.3xForward P/E17.7xN/AWalker & Dunlop's current P/E ratio of 36.3x is substantially higher than its 5-year median P/E of 23.3x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that despite a seemingly low price relative to GF Value™, the elevated P/E ratio is concerning when considering the company's unprofitability.

What Does WD's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a GF Score™ of 64/100, Walker & Dunlop Inc is rated as above average, but it has mixed signals across its sub-ranks.

MetricRatingGF Score™64Financial Strength3/10Profitability7/10Growth6/10Valuation2/10Momentum4/10Walker & Dunlop's strongest area lies in its profitability, rated at 7/10, which indicates some positive earnings quality despite the overall unprofitable status. However, the financial strength is notably weak at 3/10, raising concerns about the stability of the company's operations. The valuation rank stands at a low 2/10, reinforcing the notion that the current pricing may not reflect a sound investment opportunity.

What Are Gurus and Insiders Doing with WD?Currently, four gurus hold Walker & Dunlop Inc, with two adding to their positions and three trimming their stakes in recent quarters. This mixed activity among premium investors suggests a cautious approach toward the stock.

In terms of insider activity, there has been a net buying of $0.3 million over the past 12 months, as insiders bought $0.8 million worth of shares while selling $0.5 million. This insider buying trend typically signals confidence in the future prospects of the company, but potential investors should weigh it against the company's financial challenges.

What This Means for InvestorsBased on the current financial metrics and the GF Value™ of $94.33, Walker & Dunlop Inc appears undervalued at its current price of $40.69. However, investors should tread carefully due to the company's unprofitability and low financial strength. The risk of a value trap remains, and a thorough examination of the underlying business fundamentals is essential.

For more detailed insights, visit the Walker & Dunlop Inc WD stock page, and explore the GF Value™ page for additional valuation metrics.

Frequently Asked QuestionsWhat is WD's GF Score™?

WD's GF Score™ is 64/100, indicating that the company has above-average performance in various financial metrics, but there are areas requiring attention.

Is WD overvalued or undervalued?

WD is considered undervalued with a GF Value™ of $94.33, suggesting significant upside potential; however, caution is warranted due to the company's financial challenges.

What is WD's P/E ratio?

WD's P/E ratio (TTM) is 36.3x, which is notably higher than its 5-year median of 23.3x, indicating a premium valuation despite its unprofitability.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop arranged $147.5 million in debt and equity capitalization for the construction of 2 South Main in Port Chester, New York.

3 Real Estate Stocks to Buy on Commission CutsWalker & Dunlop NYSE: WD reported second-quarter transaction volume growth and continued expansion of its servicing portfolio, while earnings were weighed down by charges tied to previously disclosed problem loans associated with a borrower fraud investigation.

Chairman and CEO Willy Walker said the company’s core operating business “performed very well” despite an uncertain commercial real estate environment marked by geopolitical tensions and interest-rate volatility. Total transaction volume increased 3% from a year earlier to $14.4 billion, including an 8% increase in debt financing volume to $12.5 billion.

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Capital Markets Activity and Market Share 3 Mortgage Companies To Watch On Rising Home SalesHUD originations rose 43% during the quarter, while brokered lending increased 17%. Walker said the growing contribution from brokered lending reflects the company’s effort to broaden capital relationships in the United States and Europe. He said brokered volumes could continue to rise as non-multifamily loans mature and lenders maintain a broad supply of capital for commercial real estate.

Walker & Dunlop’s year-to-date combined market share with Fannie Mae and Freddie Mac increased 350 basis points to nearly 15%, according to management. Walker noted that the government-sponsored enterprises had deployed $62.5 billion during the first half of 2026, leaving $114 billion of lending capacity for the remainder of the year.

“If the agencies crank up their volume in the second half of the year, that will be very beneficial to us given our positioning with both of them,” Walker said in response to an analyst question. He added that debt funds, CMBS lenders and banks also remain active sources of commercial real estate financing.

The company said its property-sales pipeline improved meaningfully from the prior quarter. If clients choose to transact during 2026, Walker said the company could finish the year with property-sales volume above 2025 levels despite a slower start to the year.

Servicing Portfolio Reaches Record Walker & Dunlop’s servicing portfolio reached a record $146 billion at the end of the second quarter, up 6% year over year. The portfolio provides recurring revenue and future refinancing and sales opportunities, management said. Fifty-two percent of loans in the portfolio mature over the next five years.

Chief Financial Officer Greg Florkowski said servicing and asset management revenue declined 5% from the prior year, primarily because of lower earnings from joint-venture investments in the company’s affordable housing business. He attributed the decline to transaction timing rather than an underlying trend in the servicing business.

Florkowski said the servicing platform’s recurring revenue and cash flow remain stable and that capital markets execution in future quarters should support continued portfolio growth.

The company also highlighted WDSuite, its digital client platform, which enables borrowers to access loan documents, make payments, run payoff calculations, view property valuation data and connect with the company’s financing, appraisal, research and property-sales teams.

Legacy Loan Charges Weigh on Reported Earnings Reported diluted earnings per share were $0.09, reflecting $23 million of charges and operating costs related to the company’s repurchase loan portfolio. Adjusted core EPS increased 3% to $1.19, Florkowski said.

The charges were linked to a previously disclosed investigation involving a small group of fraudulent sponsors and a specific Walker & Dunlop banking team that is no longer with the company. Management said 95% of losses recognized to date relate to those sponsors and loans originated by that team.

Freddie Mac’s loan-level review has been completed, and the company does not expect further repurchase requests from that process. Fannie Mae’s review is nearly complete. Walker & Dunlop expects to recognize an additional $12 million to $16 million of credit-related charges in the third quarter as part of the final resolution with Fannie Mae, without needing to repurchase additional loans.

During the second quarter, a group of previously repurchased loans defaulted, leading the company to reassess property values and increase loss estimates. The company also increased loss sharing on a subset of loans reviewed by Fannie Mae instead of repurchasing them.

Since the end of the quarter, Walker & Dunlop sold $40 million of properties at prices close to its estimates and is preparing another $41 million of assets for sale later this year. Management expects sales of all repurchased assets to be completed by early next year, subject to ultimate selling prices.

Credit Performance and Outlook Management said the broader at-risk portfolio continues to perform well. At quarter-end, 28 basis points of the $71 billion at-risk portfolio was in default. The portfolio had a weighted average debt-service coverage ratio of 2.0 times and a weighted average underwritten loan-to-value ratio of 61%.

Walker said multifamily supply-and-demand conditions are improving, citing slower apartment development, first-half absorption of approximately 279,000 units and four consecutive months of rising occupancy. However, he said rent growth has emerged only in certain parts of the country and cautioned that rent-control policies could affect specific markets.

For 2026, Florkowski said the company remains confident in its core earnings outlook excluding repurchase-related costs. If current borrowing costs and market conditions persist, management expects the core business to finish toward the lower end of its original guidance range. Improved market conditions could increase transaction activity and place results in the middle to upper portion of that range.

The board approved a quarterly dividend of $0.68 per share, unchanged from the prior quarter, payable to shareholders of record as of Aug. 20.

About Walker & Dunlop (NYSE:WD)Walker & Dunlop is one of the largest providers of commercial real estate finance in the United States, specializing in the origination, servicing and sale of loans secured by multifamily, seniors housing, healthcare, student housing and manufactured housing properties. The firm offers a full suite of debt and equity solutions, including agency financing through Fannie Mae and Freddie Mac, HUD and FHA-insured loans, bridge and construction financing, mezzanine debt, preferred equity, and investment sales advisory.

With roots dating back to 1937 and its headquarters in Bethesda, Maryland, Walker & Dunlop has expanded its platform through both organic growth and strategic acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported second quarter 2026 financial results.

KEY FINANCIAL METRICS

Total transaction volume of $14.4 billion, up 3% from Q2’25 Total revenues of $306.7 million, down 4% from Q2’25 Net income of $3.0 million and diluted earnings per share of $0.09, both down 91% from Q2’25 Adjusted core EPS(1) of $1.19, up 3% from Q2’25 Servicing portfolio of $145.8 billion as of June 30, 2026, up 6% from June 30, 2025 Year-to-date GSE market share is 14.7%, compared to 11.2% in 2025 “Walker & Dunlop continues to demonstrate the strength and resilience of our commercial real estate capital markets platform by gaining market share with the GSEs, expanding our capital markets capabilities, and generating durable, recurring cash flows from our servicing and asset management businesses,” said Willy Walker, Chairman and CEO.

“While our Q2 financial results reflect the impact of the legacy repurchases and associated credit marks, we are nearing the conclusion of these reviews which have strengthened our underwriting processes along with our partnerships with Fannie Mae and Freddie Mac. The GSE’s have a tremendous amount of lending capacity for the remainder of 2026, and after expanding W&D’s market share by 3.5% in the first half of 2026 to 15%, we see plenty of opportunity going forward.”

Walker continued, “Our focus now firmly turns to the Journey to ’30, our five-year strategic growth plan to become the best commercial real estate capital markets company in the world by expanding the services we offer, the depth of our client relationships, and generating long-term value for our shareholders.”

The Capital Markets team generated $14.4 billion of total transaction volume, up 3% from a year ago. Debt financing volume increased 8%, led by 43% growth in HUD originations and 17% growth in brokered lending, reflecting the continued expansion of capital relationships beyond the Agencies. The servicing portfolio grew 6%, to $145.8 billion, providing durable recurring revenue and cash flow while deepening the client relationships that create future financing and advisory opportunities.

Year-to-date, debt financing volume increased 44% to $24.3 billion within a complex macroeconomic and interest rate environment, reinforcing our confidence in the long-term earnings power of Walker & Dunlop’s platform as improving market activity continues to create opportunities across the business.

Results this quarter include $23.2 million of operating and credit-related expenses associated with legacy indemnified and repurchased loans. A large of portion of these charges is concentrated in loans associated with a small number of fraudulent sponsors we previously identified. These charges do not reflect new or increasing repurchase exposure in our overall portfolio. We are actively executing our disposition strategy for the repurchased loan portfolio, reducing that exposure by $39.4 million since quarter end to $153.8 million, and we have $41.7 million of credit-related reserves against that remaining portfolio.

TRANSACTION VOLUME (in millions) Q2 2026   Q2 2025   $ Change % Change Fannie Mae $ 3,088

  $ 3,114

  $ (26

)

(1

)

%

Freddie Mac 1,311

  1,753

  (442

)

(25

)

Ginnie Mae - HUD 413

  288

  125

43

Brokered (1) 7,402

  6,335

  1,067

17

Principal Lending and Investing (2) 320

  148

  172

116

Debt financing volume $ 12,534

  $ 11,638

  $ 896

8

%

Property sales volume 1,897

  2,314

  (417

)

(18

)

Total transaction volume $ 14,431

  $ 13,952

  $ 479

3

%

            (1) Brokered transaction for life insurance companies, commercial banks, and other capital sources.     (2) Includes debt financing volumes from our interim lending platform and Walker & Dunlop Investment Partners, Inc. ("WDIP") separate accounts   Total transaction volume increased 3%, to $14.4 billion, as transaction activity remained healthy across the commercial real estate market. Although GSE debt financing volumes decreased 10% year over year, our market share with the GSEs increased year over year. Growth in brokered lending reflects strong lender participation across numerous third-party capital sources during the quarter, demonstrating the availability of capital at this time in the cycle, and the breadth of our financing capabilities across executions and property types. Property sales volume remained active despite continued market volatility, as investment decisions across the multifamily sector continued to be influenced by operating fundamentals, interest rate expectations and transaction timing. FINANCIAL RESULTS - CAPITAL MARKETS ("CM")

Three months ended June 30,

(in millions, unless otherwise noted)

2026

2025

% Change

Total revenues

$

169

$

173

(2

)%

Total expenses

131

127

3

Walker & Dunlop net income (loss)

$

30

$

33

(10

)%

Key revenue metrics:

Origination fee rate (1)

0.74

%

0.82

%

Agency MSR rate (2)

0.99

1.03

____________________ The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders.

(1)

Loan origination and debt brokerage fees, net (“Origination fees”) as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(2)

Fair value of expected net cash flows from servicing, net of guaranty obligation (“MSR income”) as a percentage of Agency debt financing volume. Revenues declined 2% primarily due to a greater mix of brokered transactions relative to GSE lending and a corresponding reduction to MSR income. Brokered activity increased 17% supporting the overall performance of the segment, while reflecting the scale of our capital relationships beyond the GSEs – an important driver of our long-term growth strategy. Although GSE lending volumes declined this quarter, this was driven by transaction timing, as our overall market share has increased 350 basis points year-to-date to 14.7%. Other highlights for the segment include: Net warehouse interest (expense) income improved to income in the current quarter, reflecting the normalization of the yield curve for the first time since the Great Tightening began. Improvement in other revenues was driven by investment banking, appraisal and valuation services, and application fees. MANAGED PORTFOLIO

(dollars in millions, unless otherwise noted)

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Fannie Mae

$

74,141

$

73,499

$

72,708

$

71,006

$

70,043

Freddie Mac

45,516

44,836

42,595

40,473

39,433

Ginnie Mae - HUD

11,890

11,647

11,563

11,298

11,008

Brokered

14,234

16,385

17,111

16,554

16,865

Principal Lending and Investing

18

18

-

-

-

Total Servicing Portfolio

$

145,799

$

146,385

$

143,977

$

139,331

$

137,349

Assets under management

18,675

18,531

18,631

18,522

18,623

Total Managed Portfolio

$

164,474

$

164,916

$

162,608

$

157,853

$

155,972

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

23.4

23.4

23.6

24.0

24.1

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

7.1

7.1

7.2

7.4

7.4

Continued origination activity over the past year expanded the servicing portfolio to $145.8 billion, further strengthening the recurring revenue and cash flow that supports our long term earnings growth. The portfolio also creates future opportunities to refinance, recapitalize and deepen client relationships as loans mature over time. Agency production over the past 12 months was the main driver for the addition of more than $8 billion of net loans to the servicing portfolio. Approximately $14.9 billion of Agency loans are scheduled to mature over the next two years, providing a meaningful pipeline of client engagement opportunities to support future transaction activity. The decline in brokered servicing was primarily driven by a large partner consolidating their servicing relationships. Although we bid on the opportunity, we were not selected. We will continue to source and originate deals on behalf of that lender. Mortgage servicing rights (“MSRs”) continue to deliver significant long-term value. As of June 30, 2026, MSRs associated with our servicing portfolio are reported at an amortized cost of $793.4 million, while the fair value is estimated at $1.4 billion, reflecting the inherent value of the long-term contractual nature of these assets and the recurring servicing and ancillary revenues they generate. Assets under management totaled $18.7 billion as of June 30, 2026, and consisted of $16.0 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, $1.8 billion of debt funds, and $0.9 billion of equity funds managed by our registered investment advisor, WDIP. FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT ("SAM")

Three months ended June 30,

(in millions)

2026

2025

% Change

Total revenues

$

134

$

141

(5

)%

Total expenses

124

98

27

Walker & Dunlop net income (loss)

$

8

$

38

(77

)%

The Servicing & Asset Management segment continues to benefit from the stable recurring earnings and cash flow from the servicing portfolio. Revenue declined year over year, primarily due to the timing of earnings recognized from joint venture investments in our affordable business, while the recurring servicing fees of the managed portfolio continued to steadily grow. The underlying fundamentals of the servicing platform remain strong, and continued execution from our Capital Markets business in the coming quarters should drive additional servicing portfolio expansion as we move through the year. Segment results continue to be influenced by our portfolio of indemnified and repurchased loans. That portfolio increased year over year, leading to higher operating costs and credit-related losses. KEY CREDIT TRENDS

(in millions, unless otherwise noted)

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Defaulted loans (1)

$

199

$

167

$

159

$

139

$

109

Key credit metrics (as a % of the at-risk portfolio (1)):

Defaulted loans

0.28

%

0.24

%

0.23

%

0.21

%

0.17

%

Allowance for risk-sharing

0.07

0.06

0.05

0.05

0.05

Key credit metrics (as a % of maximum exposure (1)):

Allowance for risk-sharing

0.34

%

0.27

%

0.27

%

0.25

%

0.25

%

The at-risk servicing portfolio continues to demonstrate strong underlying credit performance with low levels of delinquency. Growth in the at-risk portfolio reflects continued Fannie Mae loan production over the past year, while our credit exposure remains concentrated on loans backed by multifamily assets. Based on the latest property level financial information available, our at-risk portfolio is operating at a weighted average debt service coverage ratio two times, and the average underwritten loan-to-value is approximately 61%. Less than 5% of our loans are below a 1.0 times debt service coverage ratio, and were underwritten above a 75% loan-to-value. FINANCIAL RESULTS - CORPORATE

Three months ended June 30,

(in millions)

2026

2025

% Change

Total revenues

$

4

$

6

(25

)%

Total expenses

49

48

2

Walker & Dunlop net income (loss)

$

(35

)

$

(37

)

(4

)%

The Corporate segment is structured to support continued scaling of our business. Corporate results this quarter reflect our disciplined expense management as the segment continues to support revenue growth in our Capital Markets and Servicing & Asset Management businesses. INDEMNIFIED AND REPURCHASED LOANS

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2026

2025

2026

2025

Initial loan repurchase costs

$

—

$

—

$

1

$

—

Indemnified and repurchased loan operating costs

5

1

7

1

Expected principal losses on loan repurchase ("loan repurchase losses")

2

—

9

—

Indemnified and repurchased loan expenses

$

7

$

1

$

17

$

1

Provision (benefit) for loan losses (1)

$

11

$

1

$

13

$

1

Provision (benefit) for risk-sharing obligations (2)

6

—

6

—

Other operating expenses (3)

—

—

2

—

Other interest income (4)

(1

)

—

(2

)

—

Total net expense impact of indemnified and repurchased loans

$

23

$

2

$

36

$

2

____________________ (1)

Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income.

(2)

Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income. Reflects the impact on the provision for risk-sharing obligations for our agreement with Fannie Mae to increase our loss sharing on $15.9 million of defaulted loans in lieu of repurchasing them.

(3)

Impairment charges related to an Other real estate owned (OREO) asset that was previously repurchased and included as a component of Other operating expenses in the Condensed Consolidated Statements of Income. (4)

Included as a component of Placement fees and other interest income in the Condensed Consolidated Statements of Income.

Total repurchased loans declined to $193.3 million as of June 30, 2026, down from $221.6 million as of December 31, 2025. Since the end of the second quarter, we exited $39.4 million of loans at prices that approximated our estimates, reducing our remaining repurchase exposure to $153.8 million, against which we have $41.7 million of reserves. Of the $23.2 million of operating and credit-related charges this quarter, $18.0 million were credit-related. The credit-related charges were concentrated in loans associated with a small number of fraudulent sponsors we previously identified and were largely driven by the default of a previously repurchased portfolio of loans, and an agreement to increase our loss-sharing with Fannie Mae on a $15.9 million defaulted portfolio of loans in lieu of repurchasing them. Last year, we began a fraud investigation in coordination with Freddie Mac that identified a small group of fraudulent sponsors. 95% of the credit-related losses we have taken against our repurchased loans are associated with those sponsors. During the second quarter, we concluded that investigation with Freddie Mac, and we do not expect any further repurchases associated with the investigation. We are actively executing our disposition strategy to reduce our repurchase exposure. We expect to fully exit the remaining assets in this portfolio by early next year, and any future credit-related losses will be driven by the difference between the ultimate selling prices relative to our current estimates. CAPITAL SOURCES AND USES

On August 5, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the third quarter of 2026. The dividend will be paid on September 3, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of August 20, 2026.

On February 13, 2026, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 26, 2026 (the “2026 Stock Repurchase Program”). During the first quarter of 2026, the Company repurchased 283 thousand shares under the 2026 Stock Repurchase Program at a weighted-average price of $47.13 per share and immediately retired the shares, reducing stockholders’ equity by $13.3 million. The Company did not repurchase any shares during the second quarter of 2026. As of June 30, 2026, the Company had $61.7 million of authorized share repurchase capacity remaining under the 2026 Stock Repurchase Program.

Any repurchases made pursuant to the 2026 Stock Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.

CONFERENCE CALL INFORMATION

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

Earnings Call:

Thursday, August 6, 2026, at 8:30 a.m. EDT

Phone:

(800) 330-6710 from within the United States; (312) 471-1353 from outside the United States

Confirmation Code:

3173235

Webcast Link:

https://event.webcasts.com/starthere.jsp?ei=1752016&tp_key=91f9b11ccb

ABOUT WALKER & DUNLOP

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

NON-GAAP FINANCIAL MEASURES

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

Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net of guaranty obligation, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment, loan repurchase losses and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, loan repurchase losses, stock-based compensation, the fair value of expected net cash flows from servicing, net of guaranty obligation, 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.”

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, 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.

Walker & Dunlop, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Unaudited

June 30,

March 31,

December 31,

September 30,

June 30,

(in thousands)

2026

2026

2025

2025

2025

Assets

Cash and cash equivalents

$

160,858

$

192,527

$

299,315

$

274,828

$

233,712

Restricted cash

25,782

34,419

22,772

44,462

41,090

Pledged securities, at fair value

234,525

228,646

224,954

221,730

218,435

Loans held for sale, at fair value

1,382,958

2,546,860

1,436,350

2,197,739

1,177,837

Mortgage servicing rights

793,351

795,754

808,145

805,975

817,814

Goodwill

868,710

868,710

868,710

868,710

868,710

Other intangible assets

134,369

138,123

141,877

145,631

149,385

Receivables, net

476,851

424,393

419,358

374,316

360,646

Committed investments in tax credit equity

170,671

265,368

241,401

257,564

194,479

Other assets

645,529

670,660

596,596

606,320

612,932

Total assets

$

4,893,604

$

6,165,460

$

5,059,478

$

5,797,275

$

4,675,040

Liabilities

Warehouse notes payable

$

1,384,282

$

2,535,227

$

1,420,272

$

2,175,157

$

1,157,234

Corporate notes payable

820,948

825,816

829,218

829,909

828,657

Allowance for risk-sharing obligations

49,081

38,673

37,546

34,140

33,191

Commitments to fund investments in tax credit equity

174,093

256,121

219,949

223,788

168,863

Other liabilities

744,448

775,837

806,631

756,815

725,297

Total liabilities

$

3,172,852

$

4,431,674

$

3,313,616

$

4,019,809

$

2,913,242

Temporary Equity

Profit interests of a wholly owned subsidiary subject to possible redemption

$

909

$

752

$

(1,036

)

$

—

$

—

Stockholders' Equity

Common stock

$

333

$

332

$

334

$

333

$

333

Additional paid-in capital

462,194

454,215

450,434

444,127

438,129

Accumulated other comprehensive income (loss)

612

1,203

1,876

1,833

2,764

Retained earnings

1,243,903

1,264,446

1,282,390

1,319,274

1,308,792

Total stockholders’ equity

$

1,707,042

$

1,720,196

$

1,735,034

$

1,765,567

$

1,750,018

Noncontrolling interests

12,801

12,838

11,864

11,899

11,780

Total permanent equity

$

1,719,843

$

1,733,034

$

1,746,898

$

1,777,466

$

1,761,798

Commitments and contingencies

—

—

—

—

—

Total liabilities, temporary equity, and permanent equity

$

4,893,604

$

6,165,460

$

5,059,478

$

5,797,275

$

4,675,040

Walker & Dunlop, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

Unaudited

Quarterly Trends

Six months ended

June 30,

(in thousands, except per share amounts)

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

2026

2025

Revenues

Origination fees

$

92,893

$

88,532

$

103,614

$

97,845

$

94,309

$

181,425

$

140,690

MSR income

47,817

46,773

50,060

48,657

53,153

94,590

80,964

Servicing fees

86,700

85,437

86,339

85,189

83,693

172,137

165,914

Property sales broker fees

12,787

13,179

28,488

26,546

14,964

25,966

28,485

Investment management fees

6,907

10,226

11,192

6,178

7,577

17,133

17,259

Net warehouse interest income (expense)

369

25

(909

)

(2,035

)

(1,760

)

394

(2,546

)

Placement fees and other interest income

32,440

32,704

37,085

46,302

35,986

65,144

69,197

Other revenues

26,777

24,455

24,155

28,993

31,318

51,232

56,644

Total revenues

$

306,690

$

301,331

$

340,024

$

337,675

$

319,240

$

608,021

$

556,607

Expenses

Personnel

$

162,909

$

152,829

$

187,113

$

177,418

$

161,888

$

315,738

$

283,278

Amortization and depreciation

60,699

62,964

62,084

60,041

58,936

123,663

116,557

Provision (benefit) for credit losses

20,966

4,118

3,105

949

1,820

25,084

5,532

Interest expense on corporate debt

15,260

14,902

15,983

16,451

16,767

30,162

32,281

Indemnified and repurchased loan expenses

6,884

10,061

35,784

3,526

683

16,945

1,540

Other operating expenses

37,898

30,507

54,512

33,353

32,772

68,405

65,801

Total expenses

$

304,616

$

275,381

$

358,581

$

291,738

$

272,866

$

579,997

$

504,989

Income (loss) before taxes

$

2,074

$

25,950

$

(18,557

)

$

45,937

$

46,374

$

28,024

$

51,618

Income tax expense (benefit)

(764

)

8,022

(5,447

)

12,516

12,425

7,258

14,944

Net income (loss) before noncontrolling interests and temporary equity holders

$

2,838

$

17,928

$

(13,110

)

$

33,421

$

33,949

$

20,766

$

36,674

Less: net income (loss) from noncontrolling interests

12

974

(36

)

(31

)

(3

)

986

(32

)

Less: net income (loss) attributable to temporary equity holders

(180

)

1,083

837

—

—

903

—

Walker & Dunlop net income (loss)

$

3,006

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

18,877

$

36,706

Other comprehensive income (loss), net of tax

(591

)

(673

)

43

(931

)

1,469

(1,264

)

2,178

Walker & Dunlop comprehensive income (loss)

$

2,415

$

15,198

$

(13,868

)

$

32,521

$

35,421

$

17,613

$

38,884

Effective Tax Rate

(37

)%

31

%

29

%

27

%

27

%

26

%

29

%

Basic earnings (loss) per share

$

0.09

$

0.46

$

(0.41

)

$

0.98

$

1.00

$

0.55

$

1.08

Diluted earnings (loss) per share

0.09

0.46

(0.41

)

0.98

0.99

0.55

1.07

Cash dividends paid per common share

0.68

0.68

0.67

0.67

0.67

1.36

1.34

Basic weighted-average shares outstanding

33,263

33,394

33,388

33,376

33,358

33,328

33,311

Diluted weighted-average shares outstanding

33,275

33,411

33,410

33,397

33,371

33,343

33,333

SUPPLEMENTAL OPERATING DATA

Unaudited

Quarterly Trends

Six months ended

June 30,

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

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

2026

2025

Transaction Volume:

Components of Debt Financing Volume

Fannie Mae

$

3,087,806

$

1,553,899

$

2,785,231

$

2,141,092

$

3,114,308

$

4,641,705

$

4,626,102

Freddie Mac

1,310,879

3,124,128

2,023,592

3,664,380

1,752,597

4,435,007

2,560,844

Ginnie Mae - HUD

413,839

481,384

153,748

325,169

288,449

895,223

436,607

Brokered (1)

7,402,029

6,503,051

8,675,937

4,512,729

6,335,071

13,905,080

8,888,014

Principal Lending and Investing (2)

319,650

87,900

167,700

199,250

147,800

407,550

323,300

Total Debt Financing Volume

$

12,534,203

$

11,750,362

$

13,806,208

$

10,842,620

$

11,638,225

$

24,284,565

$

16,834,867

Property Sales Volume

1,897,246

1,910,300

4,524,142

4,672,875

2,313,585

3,807,546

4,152,875

Total Transaction Volume

$

14,431,449

$

13,660,662

$

18,330,350

$

15,515,495

$

13,951,810

$

28,092,111

$

20,987,742

Key Performance Metrics:

Operating margin

1

%

9

%

(5

)

%

14

%

15

%

5

%

9

%

Return on equity

1

4

(3

)

8

8

2

4

Walker & Dunlop net income (loss)

$

3,006

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

18,877

$

36,706

Adjusted EBITDA (3)

62,129

73,782

38,755

82,084

76,811

135,911

141,777

Diluted earnings (loss) per share

0.09

0.46

(0.41

)

0.98

0.99

0.55

1.07

Adjusted core EPS (4)

1.19

1.02

0.28

1.22

1.15

2.19

2.00

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

Personnel expense

53

%

51

%

55

%

53

%

51

%

52

%

51

%

Other operating expenses

12

10

16

10

10

11

12

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

Origination fee rate (5)

0.74

%

0.76

%

0.75

%

0.90

%

0.82

%

0.75

%

0.84

%

Agency MSR rate (6)

0.99

0.91

1.01

0.79

1.03

0.95

1.06

Other Data:

Market capitalization at period end

$

1,877,955

$

1,522,458

$

2,048,798

$

2,847,907

$

2,395,939

Closing share price at period end

$

54.70

$

44.38

$

60.15

$

83.62

$

70.48

Average headcount

1,479

1,471

1,464

1,438

1,400

Components of Servicing Portfolio (end of period):

Fannie Mae

$

74,141,705

$

73,498,820

$

72,708,372

$

71,006,342

$

70,042,909

Freddie Mac

45,515,813

44,836,263

42,595,441

40,473,401

39,433,013

Ginnie Mae - HUD

11,890,066

11,646,914

11,563,020

11,298,108

11,008,314

Brokered (7)

14,233,764

16,385,040

17,111,320

16,553,827

16,864,888

Principal Lending and Investing (8)

17,500

17,500

—

—

—

Total Servicing Portfolio

$

145,798,848

$

146,384,537

$

143,978,153

$

139,331,678

$

137,349,124

Assets under management (9)

18,674,671

18,530,780

18,631,100

18,521,907

18,623,451

Total Managed Portfolio

$

164,473,519

$

164,915,317

$

162,609,253

$

157,853,585

$

155,972,575

Key Servicing Portfolio Metrics (end of period):

Custodial escrow account deposits (in billions)

$

3.1

$

2.5

$

3.1

$

2.8

$

2.7

Weighted-average servicing fee rate (basis points)

23.4

23.4

23.6

24.0

24.1

Weighted-average remaining servicing portfolio term (years)

7.1

7.1

7.2

7.4

7.4

____________________

(1)

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

(2)

Includes debt financing volumes from our interim lending platform and WDIP separate accounts.

(3)

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

(4)

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

(5)

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

(6)

MSR income as a percentage of Agency debt financing volume.

(7)

Brokered loans serviced primarily for life insurance companies.

(8)

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

(9)

Walker & Dunlop Affordable Equity assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.

KEY CREDIT METRICS

Unaudited

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2026

2025

2025

2025

Risk-sharing servicing portfolio:

Fannie Mae Full Risk

$

67,515,995

$

65,886,235

$

65,087,136

$

63,382,256

$

61,486,070

Fannie Mae Modified Risk

6,625,710

7,612,585

7,621,236

7,624,086

8,556,839

Freddie Mac Modified Risk

15,000

15,000

15,000

10,000

10,000

Total risk-sharing servicing portfolio

$

74,156,705

$

73,513,820

$

72,723,372

$

71,016,342

$

70,052,909

Non-risk-sharing servicing portfolio:

Freddie Mac No Risk

$

45,500,813

$

44,821,263

$

42,580,441

$

40,463,401

$

39,423,013

GNMA - HUD No Risk

11,890,066

11,646,914

11,563,020

11,298,108

11,008,314

Brokered

14,233,764

16,385,040

17,111,320

16,553,827

16,864,888

Total non-risk-sharing servicing portfolio

$

71,624,643

$

72,853,217

$

71,254,781

$

68,315,336

$

67,296,215

Total loans serviced for others

$

145,781,348

$

146,367,037

$

143,978,153

$

139,331,678

$

137,349,124

Loans held for investment (full risk)

$

160,391

$

56,203

$

36,926

$

36,926

$

36,926

Interim Loan Joint Venture Managed Loans (1)

17,099

17,099

32,965

76,215

76,215

At-risk servicing portfolio (2)

$

70,499,346

$

69,444,656

$

68,649,960

$

66,946,180

$

65,378,944

Maximum exposure to at-risk portfolio (3)

14,433,243

14,221,298

14,052,667

13,704,585

13,382,410

Defaulted loans (4)

198,638

167,456

158,821

139,020

108,530

Defaulted loans as a percentage of the at-risk portfolio

0.28

%

0.24

%

0.23

%

0.21

%

0.17

%

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

0.07

0.06

0.05

0.05

0.05

Allowance for risk-sharing as a percentage of maximum exposure

0.34

0.27

0.27

0.25

0.25

____________________ (1)

This balance consisted entirely of Interim Program JV managed loans. We indirectly share in a portion of the risk of loss associated with Interim Program JV managed loans through our 15% equity ownership in the Interim Program JV. We have no exposure to risk of loss for the loans serviced directly for the Interim Program JV partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table above.

  (2)

At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing (“DUS”) loans subject to 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.

  (3)

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

  (4)

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

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP

Unaudited

Quarterly Trends

Six months ended

June 30,

(in thousands)

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

2026

2025

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

$

3,006

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

18,877

$

36,706

Income tax expense (benefit)

(764

)

8,022

(5,447

)

12,516

12,425

7,258

14,944

Interest expense on corporate debt

15,260

14,902

15,983

16,451

16,767

30,162

32,281

Amortization and depreciation

60,699

62,964

62,084

60,041

58,936

123,663

116,557

Provision (benefit) for credit losses

20,966

4,118

3,105

949

1,820

25,084

5,532

Loan repurchase losses (1)

1,664

6,950

20,092

—

—

8,614

—

Net write-offs

—

(491

)

—

—

—

(491

)

—

Stock-based compensation expense

9,115

8,219

6,909

7,332

6,064

17,334

12,506

Write-off of unamortized issuance costs from corporate debt paydown (2)

—

—

—

—

—

—

4,215

MSR income

(47,817

)

(46,773

)

(50,060

)

(48,657

)

(53,153

)

(94,590

)

(80,964

)

Adjusted EBITDA

$

62,129

$

73,782

$

38,755

$

82,084

$

76,811

$

135,911

$

141,777

CONDENSED SEGMENTS STATEMENTS OF INCOME

Unaudited

Segment Results (dollars in thousands, except per share data and ratios)

For the three months ended June 30, 2026

Revenues

CM

SAM

Corporate

Consolidated

Loan origination and debt brokerage fees, net

$

90,647

$

2,246

$

—

$

92,893

Fair value of expected net cash flows from servicing, net of guaranty obligation

47,817

—

—

47,817

Servicing fees

—

86,700

—

86,700

Property sales broker fees

12,787

—

—

12,787

Investment management fees

—

6,907

—

6,907

Net warehouse interest income (expense)

140

229

—

369

Placement fees and other interest income

—

30,065

2,375

32,440

Other revenues

17,395

7,447

1,935

26,777

Total revenues

$

168,786

$

133,594

$

4,310

$

306,690

Expenses

Personnel

$

116,058

$

21,741

$

25,110

$

162,909

Amortization and depreciation

1,146

57,181

2,372

60,699

Provision (benefit) for credit losses

—

20,966

—

20,966

Interest expense on corporate debt (1)

4,025

9,893

1,342

15,260

Indemnified and repurchased loan expenses

—

6,884

—

6,884

Other operating expenses

10,530

7,640

19,728

37,898

Total expenses

$

131,759

$

124,305

$

48,552

$

304,616

Income (loss) before taxes

$

37,027

$

9,289

$

(44,242

)

$

2,074

Income tax expense (benefit) (2)

7,486

780

(9,030

)

(764

)

Net income (loss) before noncontrolling interests and temporary equity holders

$

29,541

$

8,509

$

(35,212

)

$

2,838

Less: net income (loss) from noncontrolling interests

$

—

12

—

$

12

Less: net income (loss) attributable to temporary equity holders

(180

)

—

—

(180

)

Walker & Dunlop net income (loss)

$

29,721

$

8,497

$

(35,212

)

$

3,006

Diluted EPS

$

0.89

$

0.25

$

(1.05

)

$

0.09

Operating margin

22

%

7

%

(1,026

)%

1

%

Segment Results (dollars in thousands, except per share data and ratios)

For the three months ended June 30, 2025

Revenues

CM

SAM

Corporate

Consolidated

Loan origination and debt brokerage fees, net

$

93,764

$

545

$

—

$

94,309

Fair value of expected net cash flows from servicing, net of guaranty obligation

53,153

—

—

53,153

Servicing fees

—

83,693

—

83,693

Property sales broker fees

14,964

—

—

14,964

Investment management fees

—

7,577

—

7,577

Net warehouse interest income (expense)

(1,760

)

—

—

(1,760

)

Placement fees and other interest income

—

32,651

3,335

35,986

Other revenues

12,670

16,269

2,379

31,318

Total revenues

$

172,791

$

140,735

$

5,714

$

319,240

Expenses

Personnel

$

116,441

$

22,743

$

22,704

$

161,888

Amortization and depreciation

1,146

55,882

1,908

58,936

Provision (benefit) for credit losses

—

1,820

—

1,820

Interest expense on corporate debt (1)

4,468

10,810

1,489

16,767

Indemnified and repurchased loan expenses

—

683

—

683

Other operating expenses

5,309

5,831

21,632

32,772

Total expenses

$

127,364

$

97,769

$

47,733

$

272,866

Income (loss) before taxes

$

45,427

$

42,966

$

(42,019

)

$

46,374

Income tax expense (benefit) (2)

12,285

5,428

(5,288

)

12,425

Net income (loss) before noncontrolling interests

$

33,142

$

37,538

$

(36,731

)

$

33,949

Less: net income (loss) from noncontrolling interests

—

(3

)

—

(3

)

Walker & Dunlop net income (loss)

$

33,142

$

37,541

$

(36,731

)

$

33,952

Diluted EPS

$

0.97

$

1.10

$

(1.08

)

$

0.99

Operating margin

26

%

31

%

(735

)%

15

%

ADJUSTED CORE EPS RECONCILIATION

Unaudited

Quarterly Trends

Six months ended

June 30,

(in thousands)

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

2026

2025

Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income

Walker & Dunlop Net Income (Loss)

$

3,006

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

18,877

$

36,706

Provision (benefit) for credit losses

20,966

4,118

3,105

949

1,820

25,084

5,532

Loan repurchase losses (1)

1,664

6,950

20,092

—

—

8,614

—

Net write-offs

—

(491

)

—

—

—

(491

)

—

Amortization and depreciation

60,699

62,964

62,084

60,041

58,936

123,663

116,557

MSR income

(47,817

)

(46,773

)

(50,060

)

(48,657

)

(53,153

)

(94,590

)

(80,964

)

Contingent consideration accretion and fair value adjustments

434

(299

)

(8,226

)

18

41

135

81

Write-off of unamortized issuance costs from corporate debt paydown (2)

—

—

—

—

—

—

4,215

Income tax expense adjustment (3)

719

(6,908

)

(3,662

)

(3,856

)

(2,429

)

(6,189

)

(13,784

)

Adjusted Core Net Income

$

39,671

$

35,432

$

9,422

$

41,947

$

39,167

$

75,103

$

68,343

Reconciliation of Diluted EPS to Adjusted core EPS

Walker & Dunlop Net Income (Loss)

$

3,006

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

18,877

$

36,706

Diluted weighted-average shares outstanding

33,275

33,411

33,410

33,397

33,371

33,343

33,333

Diluted earnings (loss) per share

$

0.09

$

0.46

$

(0.41

)

$

0.98

$

0.99

$

0.55

$

1.07

Adjusted Core Net Income

$

39,671

$

35,432

$

9,422

$

41,947

$

39,167

$

75,103

$

68,343

Diluted weighted-average shares outstanding

33,275

33,411

33,410

33,397

33,371

33,343

33,333

Adjusted core EPS

$

1.19

$

1.02

$

0.28

$

1.22

$

1.15

$

2.19

$

2.00

____________________

(1)

Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.

(2)

Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.

(3)

Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Condensed Consolidated Statements of Income in this press release or (ii) estimated annual effective rate. Category: Earnings

More News From Walker & Dunlop, Inc.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop arranged a $137.5 million refinancing for 12 Halsey, a newly completed Class A mixed-use multifamily property in Brooklyn, New York.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop arranged $228.9 million in financing to refinance a newly redeveloped, 19-story Class A office tower in Manhattan.

BETHESDA, Md.--(BUSINESS WIRE)--As investors, developers, lenders and corporate leaders navigate one of the most consequential periods for housing and commercial real estate in decades, Zelman, a Walker & Dunlop company, today announced the launch of the Zelman Speakers Bureau, providing organizations with direct access to some of the industry's most respected analysts and thought leaders.

From interest rate volatility and affordability pressures to capital markets, demographic shifts and evolving investment strategies, audiences are looking for more than market commentary. They want informed perspectives from experts who shape industry conversations. Through the Speakers Bureau, conference organizers, corporate boards, trade associations and executive teams can engage Zelman's nationally recognized experts for keynote presentations, panel discussions, executive briefings and custom workshops.

"Today's market demands informed views grounded in data, industry relationships and real-world experience," said Ivy Zelman, EVP and co-founder of Zelman, a Walker & Dunlop Company. "Our team is in constant dialogue with builders, developers, investors and operators across the country, giving us a front-row seat to the trends reshaping housing and commercial real estate. Our Speakers Bureau brings those insights directly to organizations so they can make those strategic decisions."

Recognized throughout the industry, Zelman's analysts cover every segment of the housing ecosystem, including homebuilding, multifamily, single-family rentals, manufactured housing, building products, consumer, real estate services and mortgage finance. The Speakers Bureau features several of Zelman's leading analysts, including Alan Ratner, Ryan McKeveny, McClaran Hayes, Marius Morar, and Jesse Lederman. Collectively, they bring decades of industry experience and are frequent speakers at leading conferences and contributors to national business media, including CNBC, Barron’s and The Wall Street Journal.

Supported by the broader expertise of Walker & Dunlop, one of the nation's largest commercial real estate finance and advisory firms, speakers can also provide perspective on commercial real estate capital markets, demographics and the broader macroeconomic forces influencing real estate performance.

Speaking engagements can be tailored to virtually any audience, with topics ranging from U.S. housing market trends and homebuilding to multifamily, mortgage finance, building products, housing policy and investment strategy.

For more information on this opportunity or to request a speaker, visit our website.

Founded in 2007, Zelman, a Walker & Dunlop Company, is the leading institutional research advisory and investment banking firm dedicated exclusively to the U.S. housing industry. Zelman provides distinguished institutional research and investment banking capabilities with the highest levels of client service, trust, sophistication and credibility unique to the housing, institutional research and investment banking industries.

All securities offered through Zelman Partners LLC, a registered broker dealer and member of FINRA and SIPC.

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.

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BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop announced that Frank Cassidy has rejoined following his tenure as commissioner of FHA and assistant secretary for housing at HUD.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. Capital Markets EMEA announced today that it arranged a $191 million (€168.14 million) refinancing for Project Dutch Lion, a diversified portfolio of 19 office assets located across eight municipalities throughout the Netherlands.

Led by Claudio Sgobba and Patrick Smith, the financing was arranged on behalf of Time Equities (TEI), a privately held global real estate investment, development, and asset management company headed by Francis Greenburger. The debt capital was secured from U.K.-based insurer Aviva Investors, the global asset management business of Aviva plc. The transaction, which closed at 55% loan-to-value, consists of $134.5 million (€118 million) refinancing and a $57 million (€50 million) accordion facility for future acquisitions and portfolio growth.

“Successfully arranging long-term financing for a large-scale Dutch office portfolio in today’s market requires a lender that understands both the strength of the underlying real estate and the sponsor’s long-term business plan,” said Claudio Sgobba, senior managing director and co-head of Capital Markets EMEA at Walker & Dunlop. “Project Dutch Lion represents a highly diversified portfolio with strong occupancy, substantial government-backed income, and excellent sustainability credentials. Aviva Investors recognized the quality of the assets and TEI’s proven track record as an owner and operator, resulting in a financing solution that supports both the existing portfolio and future growth initiatives.”

Project Dutch Lion comprises approximately 1.5 million square feet of net internal area across 19 office assets strategically located throughout the Netherlands, including Amsterdam, The Hague, Utrecht, Rotterdam, Arnhem, Apeldoorn, and other established regional office markets. The portfolio benefits from significant geographic and tenant diversification, with occupancy of approximately 90% and more than 65 tenants spanning government, professional services, healthcare, technology, logistics, and other sectors.

“This financing demonstrates Time Equities’ continued growth and long-term investment strategy in Europe. We are most excited about Aviva’s interest in lending against our growing portfolio in Europe,” said Aaron Medeiros, director at TEI. “We expect to be very active in the coming year with a focus specifically in the Netherlands, Belgium, and the UK. Claudio Sgobba and Patrick Smith not only met our financing objectives but exceeded in both terms and quality of lender with a new institutional lending relationship with Aviva.”

The refinancing was completed to replace existing debt and provide TEI with additional flexibility to execute its long-term asset management strategy. Walker & Dunlop conducted a broad financing process involving both banks and insurance companies active in the Dutch office sector. Following competitive lender engagement, Aviva was selected based on its ability to provide the most attractive combination of leverage, pricing, structural flexibility, and certainty of execution.

“As we continue to grow our activity in Europe, we are focusing on engaging with high-quality sponsors which can combine a longer-term investment horizon with a strong focus on energy efficiency and sustainability, making assets relevant further into the future. We think Time Equities is an excellent example of this and we are delighted to be working with it on this refinancing,” said Gregor Bamert, head of Real Estate Debt at Aviva Investors.

Sustainability has been a key component of the portfolio’s value creation strategy. All assets hold Dutch energy ratings of A or higher, with more than half achieving A+ or better. These credentials far exceed the Netherlands’ minimum office energy requirements and position the portfolio well as occupiers continue to demand energy-efficient workplaces. The sponsor has invested in building upgrades, amenity enhancements, and operational improvements designed to support tenant retention, leasing velocity, and long-term asset relevance.

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.

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BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today that it has arranged $128.23 million in refinancing for a four-property, 986-unit multifamily portfolio in Eugene, Oregon.

Walker & Dunlop Capital Markets Real Estate Finance arranged the transaction on behalf of an experienced local client. Led by Steven Natale, the refinancing included four multifamily communities located throughout Eugene. Utilizing Fannie Mae’s Streamline Early Rate Lock (SRL) program, the four loans were rate locked only 25 days after receipt of a signed application. Speed to rate lock is especially critical in today’s volatile rate market and the SRL program allows clients to significantly reduce transactional risk early in the loan process.

“We continue to see strong demand for well-located multifamily communities that offer a compelling combination of affordability, operational stability, and long-term market fundamentals,” said Natale, managing director of Capital Markets Real Estate Finance at Walker & Dunlop. “This portfolio benefits from strong occupancy, attainable rent levels, and favorable supply dynamics within one of the Pacific Northwest’s most stable multifamily markets.”

The portfolio includes:

River Terrace | 280 units Parkside | 254 units The Bailey at Amazon Creek | 252 units Crescent Park | 200 units Eugene’s multifamily market continues to benefit from steady household formation, supported by relative affordability, the University of Oregon’s stable employment base, and access to outdoor recreation amenities throughout the region. Limited new supply deliveries have also contributed to tightening vacancy rates and sustained rental demand across the market.

Walker & Dunlop is one of the top providers of capital to the U.S. multifamily market and was recognized as the largest Fannie Mae DUS® lender by volume in 2025. That same year, the firm originated nearly $19 billion in Agency volume. To learn more about our capabilities and financing options, visit our website.

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.

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SG Americas Securities LLC lifted its position in Walker and Dunlop, Inc. (NYSE: WD) by 632.8% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 49,604 shares of the financial services provider's stock after acquiring an additional 42,835 shares during the

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop announced the expansion of its Low Income Housing Tax Credit (LIHTC) equity team with the addition of Jack Hodgkins and Stacie Nekus.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop arranged $105 million to refinance Maeve, a newly delivered 297-unit luxury high-rise community in Raleigh's Warehouse District.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop Reports First Quarter 2026 Financial Results.

BETHESDA, Md.--(BUSINESS WIRE)--As a leader in HUD financing, Walker & Dunlop, Inc. shares emerging news and regulatory updates in its newly published 2026 HUD Outlook, “Modernization, Competitiveness, and Strategic Opportunity.” The report comes as HUD recently issued its Mortgagee Letter aimed at reducing friction and improving execution for FHA-insured transactions, further strengthening its position as a competitive financing solution for multifamily and seniors housing investors. After.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop has arranged $128.5 million financing for The Arno, a 168-unit luxury residential community located in Houston.

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BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop and Pretium announced today that they have closed their first bridge loan with Walker & Dunlop Affordable Bridge Capital.

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop released its first Hospitality Outlook, “Capital, Divergence, and the Search for Durable Returns.”.