Walker & Dunlop Reports Third Quarter 2025 Financial Results

THIRD QUARTER 2025 HIGHLIGHTS

• Total transaction volume of $15.5 billion, up 34% from Q3'24
• Total revenues of $337.7 million, up 16% from Q3'24
• Net income of $33.5 million and diluted earnings per share of $0.98, up 16% and 15%, respectively, from Q3'24
• Adjusted EBITDA⁽¹⁾ of $82.1 million, up 4% from Q3'24
• Adjusted core EPS⁽²⁾ of $1.22, up 3% from Q3'24
• Servicing portfolio of $139.3 billion as of September 30, 2025, up 4% from September 30, 2024

YEAR-TO-DATE 2025 HIGHLIGHTS

• Total transaction volume of $36.5 billion, up 38% from 2024
• Total revenues of $894.3 million, up 13% from 2024
• Net income of $70.2 million and diluted earnings per share of $2.05, up 11% and 10%, respectively, from 2024
• Adjusted EBITDA⁽¹⁾ of $223.9 million, down 4% from 2024
• Adjusted core EPS⁽²⁾ of $3.23, down 10% from 2024

Walker & Dunlop, Inc. (NYSE:WD) (the "Company", "Walker & Dunlop" or "W&D") reported third quarter total transaction volume of $15.5 billion, a 34% increase year-over-year, reflecting the steady return of the commercial real estate capital markets. Total revenues increased 16% to $338 million in the third quarter of 2025, generating a 16% increase in net income to $33.5 million, or $0.98 per diluted share, a 15% increase year over year. Third quarter 2025 adjusted EBITDA was $82 million, up 4% over the same period in 2024. Adjusted core EPS was up 3% year over year to $1.22. Both adjusted EBITDA and adjusted core EPS remove non-recurring and non-cash revenues and expenses. The Company's Board of Directors declared a dividend of $0.67 per share for the fourth quarter of 2025.

"Our third quarter financial performance is due to Walker & Dunlop's strong brand and market position in the commercial real estate capital markets," commented Walker & Dunlop Chairman and CEO, Willy Walker. "Total transaction volume increased 34% year over year to $15.5 billion, driving 16% revenue growth and a 15% increase in diluted earnings per share. We are excited about the growth opportunities ahead as we continue to win market share, expand our client base, and deploy technology that meaningfully enhances the Walker & Dunlop customer experience."

Walker continued, "We see the combination of our exceptional people, technology, and data as the way to continue differentiating W&D. Our brand continues to grow throughout the market due to the exceptional performance of our team, allowing us to hire top talent, enter new markets, and win new clients. Walker & Dunlop's people, brand, and technology position us exceptionally well to take advantage of the next commercial real estate cycle to deliver strong, long-term value for our shareholders."

CONSOLIDATED THIRD QUARTER 2025

OPERATING RESULTS

DISCUSSION OF QUARTERLY RESULTS:

• Total transaction volume grew 34% in the third quarter of 2025, reaching $15.5 billion, reflecting growth across all transaction types in an increasingly active commercial real estate financing market.
• Fannie Mae and Freddie Mac (collectively, the "GSEs") debt financing volumes increased by 64% in the third quarter of 2025 compared to the third quarter of 2024, led by the 137% increase in our lending volumes with Freddie Mac. Our year-to-date GSE market share has remained strong at 10.8%, up 40 basis points over the same period in 2024.
• HUD debt financing volume increased 20% from the prior year as our team continues to expand and deliver strong results for our clients.
• The 12% increase in brokered debt financing volume during the third quarter of 2025 reflected a strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial-backed securities, and other private capital providers.
• Property sales volume increased 30% in the third quarter of 2025, as the macroeconomic fundamentals supporting the multifamily market, such as record supply absorptions, a significant decrease in new construction starts in most markets, and affordability of renting versus owning, continue to drive a recovery in the multifamily acquisitions market.

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 third quarter of 2025, we added $2.0 billion of net loans to our servicing portfolio, and over the past 12 months, we added $5.3 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae loans.
• $10.5 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years. These loans, with a weighted-average servicing fee of 30 basis points, represent only 9% of the total Agency loans in our portfolio. Over the next five years, 51% 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 had a fair value of $1.4 billion as of both September 30, 2025 and 2024.
• Assets under management totaled $18.5 billion as of September 30, 2025, and consisted of $15.8 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 $1.0 billion of equity funds managed by our registered investment advisor, WDIP.

DISCUSSION OF KEY PERFORMANCE METRICS:

• The increases in Walker & Dunlop net income and diluted EPS were largely driven by the increase in total transaction volume during the quarter. Revenues increased 16%, while expenses only increased 14%, driving a year-over-year increase in our operating margin. The increase in net income was the primary factor in the growth of return on equity.
• The increase in personnel expense as a percentage of total revenues was principally the result of the increase in commissions driven by the growth in loan origination and debt brokerage fees, net ("origination fees") for the quarter.
• The 4% increase in adjusted EBITDA was largely due to higher origination fees, servicing fees, property sale broker fees, placement fees and other interest income, and other revenues, partially offset by decreases in investment management fees and increases in personnel expenses and other operating expenses.
• Adjusted core EPS increased 3%, largely for the same reasons that adjusted EBITDA increased.

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 September 30, 2025, ten at-risk loans were in default with an aggregate unpaid principal balance ("UPB") of $139.0 million, compared to seven at-risk loans in default with an aggregate UPB of $59.6 million as of September 30, 2024. The collateral-based reserves on defaulted loans were $9.4 million and $6.5 million as of September 30, 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 $0.9 million in the third quarter of 2025, primarily related to an updated loss reserve for two loans that previously defaulted.
• During 2024, the Company received requests to repurchase five GSE loans. As of September 30, 2025, the Company has repurchased four of the loans and still has a forbearance and indemnification agreement in place for the other loan ("Indemnified Loan"). The GSE that owns the Indemnified Loan foreclosed on that loan ("Other Asset"). The Other Asset must be repurchased by March 29, 2026, at which time the Company would be expected to repurchase the Indemnified Loan. As of September 30, 2025, the Other Asset has an outstanding balance of $23.2 million, net of collateral posted, and a reserve for credit losses of $9.3 million. All repurchased loans are delinquent and in non-accrual status. In the fourth quarter of 2025, the Company received requests from one of the GSEs to repurchase two additional portfolios of loans with a UPB of $100.2 million as a result of fraudulent documentation submitted by the borrower in connection with the loans. In the fourth quarter of 2025, the Company executed a forbearance and indemnification agreement with the GSE for one of the portfolios with a UPB of $50.9 million and expects to enter into a forbearance and indemnification agreement with that GSE for the second portfolio of loans with a UPB of $49.3 million. If the Company fails to reach an agreement on a forbearance and indemnification agreement on the second portfolio, the Company may be required to repurchase the loans in the fourth quarter. As the Company gains access to the underlying collateral of the loans and is able to assess their fair values, it will accrue for any expected potential losses resulting from the forbearance and indemnification agreements.

THIRD 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 from operations, 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, decreased $1.8 million, or 10% year over year, primarily due to lower average interest rates during the third quarter of 2025 compared to the third quarter of 2024, partially offset by an increase in the balance outstanding from the refinancing of our debt in the first quarter of 2025.
• Income tax expense increased $3.7 million, or 42% year over year, driven by (i) a 22% increase in income from operations, (ii) a decrease in excess tax benefits, and (iii) a one-time benefit of $1.1 million related to international taxes in the third quarter of 2024. During the third quarter of 2025, we had less than $0.1 million in excess tax benefits compared to $0.7 million in third quarter of 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the quarter.

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.

• The increase in origination fees was primarily the result of the increase in total debt financing volume, partially offset by a decline in the origination fee rate. Although there was a favorable change in the mix of debt financing volume, the competitive environment in the multifamily debt financing market resulted in a reduction in the origination fee rate for Agency originations and the overall origination fee rate.
• The increase in MSR income was largely a result of the increase in Agency debt financing volume year over year, partially offset by a decrease in the Agency MSR rate. The Agency MSR rate decreased due to a decline in the weighted-average servicing fee ("WASF") on Fannie Mae originations, and a decrease in the weighted average loan term for GSE originations. Borrowers continue opting for shorter duration loans due to the shape of the yield curve and the desire to maintain optionality in the short-term as interest rates continue normalizing, and we expect this trend to continue.
• Property sales broker fees increased year over year primarily due to the 30% increase in property sales volume, coupled with an increase in the property sales broker fee rate year over year.
• Personnel expense increased in the third quarter of 2025 primarily due to an increase in commission costs resulting from growth in origination and property sales broker fees, and an increase in salaries and benefits and subjective bonus largely related to a 6% increase in average segment headcount.
• The change in fair value adjustments to contingent consideration liabilities year over year was due to an adjustment taken in the third quarter of 2024 with no comparable adjustment in the current year quarter. The adjustment for the third quarter of 2024 was driven by the reduction of an expected payout of an earnout associated with one of our previous brokerage acquisitions, driven by declines in transaction volumes over the last several years.
• The increase in adjusted EBITDA was primarily due to increases in origination fees and property sales broker fees, partially offset by increased personnel expense.

SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS:

The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services.

• The $5.3 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
• Investment management fees decreased primarily due to a decline in investment management fees from our LIHTC operations, which resulted from lower expected asset dispositions in 2025 than in 2024 within the LIHTC funds. Additionally, revenues from our private credit investment management strategies decreased due to one-time activity in 2025.
• Placement fees and other interest income increased due to higher average escrow balances during the third quarter of 2025 compared to the year ago quarter and higher interest income earned on loans to one of our joint venture partners, partially offset by declines in placement fee rates paid on escrow deposits as a result of lower short-term interest rates to which those placement fee rates are tied.
• The increase in other revenues was primarily due to increases in syndication and other fees, prepayment fees, and income from equity method investments. The increase in syndication fees and other fees was primarily driven by an increase in equity syndication volume year over year. Prepayment fees increased due to an increase in refinancing activity compared to the year ago quarter, while income from equity method investments increased due to improved performance from our equity method investments.
• Personnel costs increased primarily due to an increase in severance costs, salaries and benefits and bonus accruals due to a small increase in average segment headcount, and commissions.
• The increase in amortization and depreciation was primarily driven by increases in amortization of MSRs and MSR write-offs due to prepayment.
• The change in our provision for credit losses was primarily driven by a reduction in collateral based reserves for indemnified and defaulted loans year over year.
• Other operating expenses increased largely due to an increase in the operating costs related to indemnified and repurchased loans.

CORPORATE – DISCUSSION OF QUARTERLY RESULTS:

The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups ("support functions"). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results.

• The increase in total revenues was primarily related to an increase in income from equity method investments due to their improved performance.
• The rise in personnel costs was driven by an increase in salaries and benefits resulting from an 11% increase in average segment headcount.
• The increase in other operating expenses was primarily due to an increase in software expenses, increases in travel and entertainment, and an increase in professional fees.

YEAR-TO-DATE 2025

CONSOLIDATED OPERATING RESULTS

Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's income from operations, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:

• Interest expense on corporate debt decreased $5.0 million, or 9% from the prior year, primarily due to lower average interest rates during 2025 compared to 2024, partially offset by an increase in the balance outstanding from the aforementioned refinancing of our debt.
• Income tax expense increased $7.9 million, or 40% year over year, driven by (i) a 23% increase in income from operations, (ii) a decrease in excess tax benefits, and (iii) one-time benefits of $1.1 million related to international taxes in the third quarter of 2024. During the nine months ended September 30, 2025, we had a $1.4 million shortfall in excess tax benefits compared to a $1.7 million benefit for the nine months ended September 30, 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the year.

DISCUSSION OF YEAR-TO-DATE-RESULTS:

• The increase in total transaction volume was primarily driven by a 61% increase in Agency debt financing volume, a 20% increase in brokered debt financing volume, and a 40% increase in property sales volume year over year.
• The growth in Walker & Dunlop net income and diluted EPS were principally attributable to a 23% increase in income from operations, partially offset by the increase in income taxes noted above. The increase in income from operations was the result of higher origination fees, MSR income, and property sales broker fees associated with the increased total transaction volume seen above, partially offset by (i) increased compensation costs due to higher average headcount and commissions, (ii) an increase in other operating expenses primarily due to the write-off of unamortized debt issuance costs resulting from the refinancing of our corporate debt in the first quarter of 2025, and (iii) increases in operating expenses related to repurchased and indemnified loans, software costs, and other miscellaneous expenses.
• Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and investment management fees, coupled with the increases in personnel expense and other operating expenses. These changes were partially offset by increases in origination fees, property sales broker fees, servicing fees, and other revenues.
• Diluted EPS increased 10% year over year, compared to a decrease of 10% for adjusted core EPS. Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased.

YEAR-TO-DATE 2025

FINANCIAL RESULTS BY SEGMENT

CAPITAL MARKETS - DISCUSSION OF YEAR-TO-DATE-RESULTS:

• Total revenues increased primarily due to increases in origination fees, MSR income, and property sales broker fees due to the 38% increase in total transaction volume, partially offset by a decline in MSR margins and higher other revenues. The increase in other revenues was principally due to an increase in investment banking revenues primarily due to more M&A transactions year over year.
• The increase in total expenses was primarily related to increases in personnel costs mostly due to (i) an increase in commission costs resulting from the growth in origination fees, property sales broker fees, and investment banking revenues, (ii) an increase in salaries and benefits largely related to an increase in average segment headcount, and (iii) an increase severance expense, largely as a result of the separation of several underperforming producers.
• The increases in operating margin, adjusted EBITDA, and diluted EPS were largely the result of the increased total transaction volume.

SERVICING & ASSET MANAGEMENT - DISCUSSION OF YEAR-TO-DATE-RESULTS:

• The decrease in total revenues was primarily the result of a decline in investment management fees and placement fees and other interest income. Investment management fees decreased primarily as a result of a decline in revenue from our LIHTC funds, while placement fees and other income was impacted by lower average placement fees earned on escrow deposits resulting from lower short-term interest rates. Partially offsetting these declines were increases in servicing fees, driven by an increase in the average servicing portfolio period over period, and other revenues, the result of increase syndication fee revenue from an increase in equity syndication volume, primarily due to the largest fund syndicated in the Company's history during 2025.
• The increase in total expenses year over year was primarily due to increases in personnel costs and amortization and depreciation. Personnel costs increased primarily due to higher salaries and benefits and bonus accruals tied to a 4% increase in average segment headcount, increased severance costs, and larger production bonuses related to the increased syndication volume.
• The decrease in revenues was the primary driver of the decreases in operating margin, adjusted EBITDA, and diluted EPS.

CORPORATE - DISCUSSION OF YEAR-TO-DATE-RESULTS:

• Total revenues increased year over year primarily due to an increase in interest income on invested capital outstanding during the quarter, with no comparable activity in the prior year and a small increase in income from equity method investments.
• The increase in total expenses was primarily driven by an increase in personnel costs and other operating expenses. Personnel expense increased primarily due to an increase in salaries and benefits, driven by a 10% increase in average segment headcount, partially offset by a decrease in subjective bonus accrual. The increase in other operating expenses was driven by an increase in professional fees related to compliance costs and software expense due to the Company's growth.

CAPITAL SOURCES AND USES

On November 5, 2025, the Company's Board of Directors declared a dividend of $0.67 per share for the fourth quarter of 2025. The dividend will be paid on December 5, 2025, to all holders of record of the Company's restricted and unrestricted common stock as of November 21, 2025.

On February 12, 2025, our Board of Directors authorized the repurchase of up to $75.0 million of the Company's outstanding common stock over a 12-month period starting from February 21, 2025 (the "2025 Share Repurchase Program"). As of September 30, 2025, we have not repurchased any shares of common stock under the 2025 Share Repurchase Program. Any repurchases made pursuant to the 2025 Share Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.

CONFERENCE CALL INFORMATION

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

ABOUT WALKER & DUNLOP

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

NON-GAAP FINANCIAL MEASURES

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

Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, stock-based compensation, the fair value of expected net cash flows from servicing, net, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management's discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.

We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financial information, provide useful information to investors by offering:

• the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results;
• the ability to better identify trends in the Company's underlying business and perform related trend analyses; and
• a better understanding of how management plans and measures the Company's underlying business.

We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company's results of operations in conjunction with the Company's GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled "Adjusted Financial Measure Reconciliation to GAAP" and "Adjusted Financial Measure Reconciliation to GAAP By Segment."

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.

The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

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, and (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations.

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.