Walker & Dunlop (WD) shares plummeted 7.39% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The commercial real estate finance company's earnings per share (EPS) fell short of analyst expectations, overshadowing its revenue growth and adjusted earnings beat.

The company reported Q3 EPS of $0.98, significantly below the mean expectation of $1.17 from three analysts. This disappointing figure came despite a 15.5% year-over-year increase in revenue to $337.68 million, which surpassed the analyst consensus of $321.52 million. Walker & Dunlop's adjusted EPS of $1.22 did beat expectations, but it wasn't enough to offset investor concerns about the headline earnings miss.

While Walker & Dunlop highlighted positive developments, including a 34% year-over-year increase in total transaction volume to $15.5 billion and growth across all transaction types, the market's reaction suggests investors were anticipating stronger overall performance. The company's servicing portfolio grew 4% year-over-year, reaching $139.3 billion, and it saw significant increases in Fannie Mae and Freddie Mac debt financing volumes. However, these achievements appear to have been overshadowed by the earnings shortfall, leading to the sharp decline in the stock price.