Walker & Dunlop's stock tumbled 5.79% in pre-market trading following the release of its fourth-quarter 2025 financial results, which fell short of analyst expectations on key metrics.

The real estate finance firm reported adjusted earnings per share of $0.28 for the quarter, significantly below the consensus estimate of $1.23. Revenue of $340 million also missed expectations of $343.66 million. The company posted a net loss of $13.9 million, a stark reversal from net income in the same period last year.

Management attributed the disappointing results to significant expenses related to asset impairment charges and costs associated with indemnified and repurchased loans. The company also noted a substantial increase in defaulted loans, which jumped to $158.8 million from $41.7 million a year earlier.