Shares of Walker & Dunlop (WD) plummeted 5.21% in intraday trading on Thursday after the commercial real estate finance company reported first-quarter earnings that fell short of analyst expectations. The sharp decline comes as the firm faces challenges in the current market environment.

Walker & Dunlop reported earnings per share of $0.08 for Q1 2025, down significantly from $0.35 in the same quarter last year. While revenue increased 4% year-over-year to $237.4 million, the company's profitability took a hit. Adjusted core earnings per share, which excludes certain non-cash items, came in at $0.85, compared to $1.19 in Q1 2024.

The earnings miss appears to have sparked investor concerns about Walker & Dunlop's near-term outlook. However, the company maintains that its full-year 2025 guidance remains unchanged, suggesting management believes the challenges may be temporary. As the commercial real estate market continues to evolve, investors will be closely watching how Walker & Dunlop navigates the current landscape in the coming quarters.