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 EBITDA(1) of $38.8 million, down 59% from Q4’24
- Adjusted core EPS(2) 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 EBITDA(1) of $262.6 million, down 20% from 2024
- Adjusted core EPS(2) of $3.50, down 30% from 2024
BETHESDA, Md.–(BUSINESS WIRE)–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.”
| ____________________ | |
|
(1) |
Adjusted EBITDA is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of adjusted EBITDA to net income, refer to the sections of this press release below titled “Non-GAAP Financial Measures,” “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP by Segment.” |
|
(2) |
Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to diluted EPS, refer to the sections of this press release below titled “Non-GAAP Financial Measures” and “Adjusted Core EPS Reconciliation.” |
CONSOLIDATED 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 (1) |
|
|
8,675,937 |
|
|
|
4,893,643 |
|
|
|
3,782,294 |
|
|
77 |
|
|
Principal Lending and Investing (2) |
|
|
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 |
% |
|
(1) |
Brokered transactions for life insurance companies, commercial banks, and other capital sources. |
|
(2) |
Includes debt financing volumes from Walker & Dunlop Investment Partners, Inc. (“WDIP”) separate accounts. |
DISCUSSION OF QUARTERLY RESULTS:
- 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 (1) |
|
$ |
68,649,960 |
|
$ |
63,365,672 |
|
$ |
5,284,288 |
|
8 |
% |
|||
|
Maximum exposure to at-risk portfolio (2) |
|
|
14,052,667 |
|
|
12,893,593 |
|
|
1,159,074 |
|
|
9 |
|
||
|
Defaulted loans (3) |
|
$ |
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 |
% |
|
|
|
|
||||
| ____________________ | |
|
(1) |
At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing (“DUS”) loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio. |
|
For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans. |
|
|
(2) |
Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur. |
|
(3) |
Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac small balance pre-securitized loans (“SBL”) portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here. |
DISCUSSION OF KEY CREDIT METRICS:
- 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(1) |
|
|
|
|
|
|
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 (2) |
|
$ |
(300 |
) |
|
$ |
3,760 |
|
|
$ |
199 |
|
$ |
11,860 |
|
|
|
Total impact of indemnified and repurchased loans |
|
$ |
35,484 |
|
|
$ |
12,215 |
|
|
$ |
41,049 |
|
$ |
22,433 |
|
|
|
(1) |
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. |
|
(2) |
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(1) |
|
|
0.75 |
% |
|
0.94 |
% |
|
|
|
|
||||
|
Agency MSR rate(2) |
|
|
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 |
)% |
||
| ____________________ | |
|
(1) |
Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing. |
|
(2) |
MSR income as a percentage of Agency debt financing volume. |
CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS:
The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.
- 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.
Contacts
Headquarters:
7272 Wisconsin Avenue, Suite 1300
Bethesda, Maryland 20814
Phone 301.215.5500
[email protected]
Investors:
Kelsey Duffey
Senior Vice President, Investor Relations
Phone 301.202.3207
[email protected]
Media:
Carol McNerney
Chief Marketing Officer
Phone 301.215.5515
[email protected]
