Press Release: Walker & Dunlop Reports Fourth Quarter 2025 Financial Results

Dow Jones
Feb 26

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)--February 26, 2026-- 

Walker & Dunlop, Inc. $(WD)$ (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. The combination of these two factors this 
      quarter drove the decline in the origination fee rate to 75 basis points 
      this quarter, compared to 94 basis points in the year ago fourth 
      quarter. 
 
   --  The decrease in MSR income was largely a result of the 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. 
      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. 
 
   --  Property sales broker fees increased year over year primarily due to 
      the 31% increase in property sales volume, coupled with an increase in 
      the property sales broker fee rate year over year. 
 
   --  Personnel expense increased in the fourth quarter of 2025 primarily due 
      to an increase in commission costs primarily resulting from growth in 
      origination and property sales broker fees, coupled with an increase in 
      salaries and benefits resulting from an 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 fourth 
      quarter of 2024 with no comparable adjustment in the current year 
      quarter. The adjustment for the fourth quarter of 2024 was driven by the 
      reduction of an expected payout of earnouts associated with a technology 
      acquisition and one of our previous brokerage acquisitions, as both were 
      no longer expected to achieve specific long-term performance hurdles 
      because of the sharp declines in transaction volumes in 2023 and 2024. 
 
   --  The decrease in adjusted EBITDA was primarily due to the decrease in 
      income before taxes, coupled with an increase in personnel expenses, 
      partially offset by increases in origination fees and property sales 
      broker fees. 
 
             FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT 
(in thousands)         Q4 2025       Q4 2024      $ Variance    % Variance 
                     ------------  ------------  ------------  ------------ 
   Origination fees  $  1,875      $  2,210       $     (335)     (15)% 
   Servicing fees      86,339        82,961            3,378        4 
   Investment 
    management 
    fees               11,192        (3,110)          14,302     (460) 
   Net warehouse 
    interest 
    income, loans 
    held for 
    investment             --           272             (272)    (100) 
   Placement fees 
    and other 
    interest 
    income             33,468        40,278           (6,810)     (17) 
   Other revenues      10,424        34,687          (24,263)     (70) 
-------------------   -------       -------          -------   ------ --- 
Total revenues       $143,298      $157,298       $  (14,000)      (9)% 
-------------------   -------       -------          -------   ------ 
   Personnel         $ 23,959      $ 23,967       $       (8)      (0)% 
   Amortization and 
    depreciation       58,269        65,155           (6,886)     (11) 
   Provision 
    (benefit) for 
    credit losses       3,105         4,529           (1,424)     (31) 
   Interest expense 
    on corporate 
    debt               10,200         9,986              214        2 
   Fair value 
    adjustments to 
    contingent 
    consideration 
    liabilities        (8,243)      (10,830)           2,587      (24) 
   Indemnified and 
    repurchased 
    loan expenses      35,784         8,455           27,329      323 
   Asset 
    impairments and 
    other expenses     26,055           621           25,434    4,096 
   Other operating 
    expenses            6,541        15,526           (8,985)     (58) 
-------------------   -------       -------          -------   ------ --- 
Total expenses       $155,670      $117,409       $   38,261       33% 
-------------------   -------       -------          -------   ------ --- 
Income (loss) 
 before taxes        $(12,372)     $ 39,889       $  (52,261)    (131)% 
   Income tax 
    expense 
    (benefit)          (3,818)        7,007          (10,825)    (154) 
                      -------       -------          -------   ------ --- 
Net income before 
 noncontrolling 
 interests           $ (8,554)     $ 32,882       $  (41,436)    (126)% 
   Less: net income 
    (loss) from 
    noncontrolling 
    interests             (36)       (3,671)           3,635      (99) 
-------------------   -------       -------          -------   ------ --- 
Walker & Dunlop net 
 income (loss)       $ (8,518)     $ 36,553       $  (45,071)    (123)% 
-------------------   -------       -------          -------   ------ 
Key performance 
metrics: 
   Operating margin        (9)%          25% 
   Adjusted EBITDA   $ 79,792      $123,768       $  (43,976)     (36)% 
   Diluted earnings 
    (loss) per 
    share            $  (0.26)     $   1.07       $    (1.33)    (124)% 
 

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 $8.7 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 increased primarily due to an increase in 
      investment management fees from our LIHTC operations, due to higher asset 
      dispositions in the fourth quarter of 2025. Our LIHTC business recognizes 
      asset management fees through cash flows from its underlying property 
      level investments and the sale, or realization, of those property level 
      investments. 
 
   --  The primary driver in the decrease in placement fees was a decline in 
      the placement fee rates on escrow deposits as a result of the lower 
      short-term interest rate environment in 2025 compared to 2024, combined 
      with a decrease in the average replacement reserve escrow balance period 
      over period. 
 
   --  During the fourth quarter of 2024, we entered into an agreement to sell 
      a portfolio of affordable assets, including some of the assets, which we 
      have operated since the acquisition of Alliant in 2021. The sale of one 
      of the assets closed in the fourth quarter of 2024, generating a gain on 
      sale of $26.5 million included in other revenues for this segment, 
      explaining the year over year decline in that line item. The remaining 
      assets included in that sale were expected to close in 2025 upon receipt 
      of customary consents. Those consents are still in process, and that sale 
      is now expected to close in the first half of 2026. However, intangible 
      and other assets were written off in the fourth quarter of 2024 in 
      connection with the agreement to sell the assets, explaining most of the 
      decline in amortization and depreciation this year. 
 
   --  The change in fair value adjustments to contingent consideration 
      liabilities was primarily due to an $8.2 million contingent consideration 
      revaluation in the fourth quarter of 2025 compared to a $10.8 million 
      revaluation in the fourth quarter of 2024, as the earnout targets for our 
      LIHTC acquisition were not fully achieved. 
 
   --  The increase in indemnified and repurchased loan expenses was primarily 
      driven by the repurchase requests as outlined in the Indemnified and 
      Repurchased Loans section above. 
 
   --  The increase in asset impairments and other expenses was primarily 
      driven by the asset impairments recorded in the fourth quarter of 2025 as 
      outlined in the Key Performance Metrics section above. 
 
   --  Other operating expenses decreased largely due to a decrease in 
      professional fees, driven by a decline in legal costs at one of our LIHTC 
      subsidiaries. 
 
   --  The decrease in losses attributed to noncontrolling interests is the 
      result of a change in the ownership of an entity producing losses in 
      2024. As part of a larger transaction with the noncontrolling interest 
      holder, we regained full control of the entity at the end of 2024. The 
      remaining noncontrolling interests in 2025 are immaterial. 
 
                   FINANCIAL RESULTS - CORPORATE 
(in thousands)      Q4 2025    Q4 2024    $ Variance    % Variance 
                   ---------  ---------  ------------  ------------ 
   Other interest 
    income         $  3,617   $  3,684    $      (67)     (2)% 
   Other revenues     2,274       (593)        2,867    (483) 
-----------------   -------    -------       -------   ----- ---- 
Total revenues     $  5,891   $  3,091    $    2,800      91% 
-----------------   -------    -------       -------   ----- ---- 
   Personnel       $ 21,888   $ 22,610    $     (722)     (3)% 
   Amortization 
    and 
    depreciation      2,669      1,760           909      52 
   Interest 
    expense on 
    corporate 
    debt              1,467      1,484           (17)     (1) 
   Asset 
    impairments 
    and other 
    expenses          4,335         --         4,335     N/A 
   Other 
    operating 
    expenses         19,111     17,089         2,022      12 
-----------------   -------    -------       -------   -----  ----- 
Total expenses     $ 49,470   $ 42,943    $    6,527      15% 
-----------------   -------    -------       -------   ----- ---- 
Income (loss) 
 before taxes      $(43,579)  $(39,852)   $   (3,727)      9% 
   Income tax 
    expense 
    (benefit)       (11,799)    (7,638)       (4,161)     54 
-----------------   -------    -------       -------   -----  ----- 
Walker & Dunlop 
 net income 
 (loss)            $(31,780)  $(32,214)   $      434      (1)% 
-----------------   -------    -------       -------   -----  --- 
Key performance 
metric: 
   Adjusted 
    EBITDA         $(36,825)  $(33,364)   $   (3,461)     10% 
   Diluted 
    earnings 
    (loss) per 
    share          $  (0.92)  $  (0.95)   $     0.03      (3)% 
 

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.

   --  Total revenues increased primarily due to an increase in other revenues 
      driven by income from equity method investments resulting from improved 
      performance. 
 
   --  Personnel expenses decreased 3% in the fourth quarter of 2025 due to a 
      decrease in variable compensation related to company performance, 
      partially offset by an increase in salaries and benefits. 
 
   --  The increase in asset impairments and other expenses was primarily due 
      to increased legal and other professional fees related to the 
      aforementioned borrower fraud investigation, as well as approximately 
      $2.1 million of third party costs incurred in connection with an M&A 
      opportunity that did not materialize. 
 
   --  Other operating expenses increased largely as a result of increased 
      software costs and travel and entertainment expenses for an annual 
      corporate event held in the fourth quarter 2025, with no comparable event 
      in 2024. 

FULL-YEAR 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 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 decreased $5.0 million, or 7% 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 decreased $8.5 million, or 28% year over year, 
      primarily driven by a 40% decrease in income before taxes, partially 
      offset by a decrease in excess tax benefits. In 2025, we recognized a 
      $1.4 million shortfall in excess tax benefits compared to a $1.7 million 
      benefit in 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. 
 
           FULL-YEAR OPERATING RESULTS AND KEY PERFORMANCE METRICS 
(in thousands)         2025             2024         $ Variance    % Variance 
                  ---------------  ---------------  ------------  ------------ 
Debt financing 
 volume           $41,483,695      $30,154,666      $11,329,029     38% 
Property sales 
 volume            13,349,892        9,751,223        3,598,669     37 
----------------   ----------       ----------       ----------   ----  ------ 
Total 
 transaction 
 volume           $54,833,587      $39,905,889      $14,927,698     37% 
----------------   ----------       ----------       ----------   ---- ----- 
Total revenues      1,234,306        1,132,490          101,816      9 
Total expenses      1,155,308        1,000,989          154,319     15 
----------------   ----------       ----------       ----------   ----  ------ 
Walker & Dunlop 
 net income 
 (loss)           $    56,247      $   108,167      $   (51,920)   (48)% 
----------------   ----------       ----------       ----------   ----  ---- 
Adjusted EBITDA       262,616          328,549          (65,933)   (20) 
----------------   ----------       ----------       ----------   ---- ----- 
Diluted earnings 
 (loss) per 
 share            $      1.64      $      3.19      $     (1.55)   (49)% 
----------------   ----------       ----------       ----------   ----  ---- 
Adjusted core 
 EPS              $      3.50      $      4.97      $     (1.47)   (30)% 
----------------   ----------       ----------       ----------   ----  ---- 
Operating margin            6%              12% 
Return on equity            3                6 
 

DISCUSSION OF FULL-YEAR RESULTS:

   --  The increase in total transaction volume was primarily driven by a 39% 
      increase in Agency debt financing volume, a 37% increase in brokered debt 
      financing volume, and a 37% increase in property sales volume year over 
      year. 
 
   --  The 9% growth in Walker & Dunlop total revenues in 2025 was outpaced by 
      the 15% increase in total expenses, primarily due to increases in 
      indemnified and repurchased loan expenses, asset impairments and other 
      expenses, and increased variable compensation costs associated with the 
      37% increase in total transaction volume. The decline in net income and 
      diluted EPS were principally attributable to a 40% decrease in income 
      before taxes. 
 
   --  Adjusted EBITDA decreased primarily due to decreases in placement fees 
      and other interest income and other revenues, coupled with increased 
      personnel costs and indemnified and repurchased loan expenses and a 
      decrease in losses attributable to non-controlling interest holders. 
      These changes were partially offset by increases in origination fees, 
      property sales broker fees, and servicing fees. 
 
   --  Diluted EPS decreased 49% year over year, in tandem with the 48% 
      decline in net income, compared to a decrease of 30% year over year for 
      adjusted core EPS. Adjusted core EPS decreased largely for the same 
      reasons that adjusted EBITDA decreased. 

FULL-YEAR 2025

FINANCIAL RESULTS BY SEGMENT

 
              FULL-YEAR FINANCIAL RESULTS - CAPITAL MARKETS 
(in thousands)          2025          2024       $ Variance    % Variance 
                    ------------  ------------  ------------  ------------ 
Total revenues      $646,950      $524,841       $   122,109    23% 
Total expenses       521,275       437,549            83,726    19 
------------------   -------       -------          --------  ----  ------ 
Walker & Dunlop 
 net income 
 (loss)             $ 89,819      $ 66,664       $    23,155    35% 
------------------   -------       -------          --------  ---- ----- 
Key revenue 
metrics (as a 
percentage of 
debt financing 
volume): 
   Origination fee 
    rate(1)             0.83%         0.92% 
   Agency MSR 
    rate(2)             0.96          1.14 
Key performance 
metrics: 
   Operating 
    margin                19%           17% 
   Adjusted EBITDA  $(16,980)     $(28,258)      $    11,278   (40)% 
   Diluted 
    earnings 
    (loss) per 
    share               2.62          1.97              0.65    33 
 
 
____________________ 
(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 FULL-YEAR RESULTS:

   --  Total revenues increased primarily due to increases in origination fees, 
      MSR income, and property sales broker fees due to the 37% increase in 
      total transaction volume, partially offset by a decline in our 
      origination fee and MSR rates. Although our Agency debt financing volume 
      grew significantly, the competitive environment in the multifamily debt 
      financing market throughout 2025 resulted in a reduction in the 
      origination fee rate for Agency originations and the overall origination 
      fee rate, particularly for Freddie Mac originations. Additionally, we 
      originated a large Fannie Mae portfolio during the second quarter of 
      2025, with no comparable activity in 2024, contributing to the decline in 
      origination fee rates as large portfolios earn lower fee margins. 
 
   --  The increase in total expenses was primarily related to increases in 
      personnel costs mostly due to (i) increased commission costs resulting 
      from the growth in origination fees and property sales broker fees, (ii) 
      increased salaries and benefits largely related to an increase in average 
      segment headcount, and (iii) increased severance expense, resulting from 
      the separation of several underperforming producers. 
 
   --  Net income, Diluted EPS and adjusted EBITDA for the Capital Markets 
      segment have improved sequentially the last three years and represent a 
      direct reflection of the steady improvement in overall Capital Markets 
      transaction volumes. The increases in operating margin, adjusted EBITDA, 
      and diluted EPS were largely the result of the increased total 
      transaction volume year over year. 
 
       FULL-YEAR FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT 
(in thousands)        2025          2024       $ Variance    % Variance 
                  ------------  ------------  ------------  ------------ 
Total revenues    $566,564      $591,649       $  (25,085)    (4)% 
Total expenses     448,712       396,024           52,688     13 
----------------   -------       -------          -------   ----  ------ 
Walker & Dunlop 
 net income 
 (loss)           $ 85,112      $157,750       $  (72,638)   (46)% 
----------------   -------       -------          -------   ----  ---- 
Key performance 
metrics: 
   Operating 
    margin              21%           33% 
   Adjusted 
    EBITDA        $419,049      $485,382       $  (66,333)   (14)% 
   Diluted 
    earnings 
    (loss) per 
    share             2.48          4.65            (2.17)   (47) 
 

SERVICING & ASSET MANAGEMENT - DISCUSSION OF FULL-YEAR RESULTS:

   --  The decrease in total revenues in 2025 was primarily the result of a 
      decline in placement fees and other interest income and other revenues. 
      Placement fees and other interest income was impacted by lower average 
      placement fees earned on escrow deposits resulting from lower short-term 
      interest rates, while other revenues were impacted by the sale of an 
      affordable asset in 2024 with no comparable activity in 2025. Partially 
      offsetting these declines was an increase in servicing fees, driven by an 
      increase in the average servicing portfolio period over period. 
 
   --  The increase in total expenses year over year was primarily due to 
      increases in indemnified and repurchased loan expenses and asset 
      impairments and other expenses. The increases were primarily the result 
      of (i) investment impairments related to assets held by one of our 
      affordable operating subsidiaries, (ii) an increase in costs associated 
      with the indemnified and repurchased loan portfolios from 2024 and 2025, 
      and (iii) the write off of unamortized debt issuance costs associated 
      with the refinancing of our corporate debt in the first quarter of 2025. 
      Personnel costs also increased primarily due to higher salaries, benefits, 
      and severance costs. 
 
   --  The increase in expenses was the primary driver of the decreases in 
      operating margin, adjusted EBITDA, and diluted EPS. 
 
              FULL-YEAR FINANCIAL RESULTS - CORPORATE 
(in thousands)       2025        2024      $ Variance    % Variance 
                  ----------  ----------  ------------  ------------ 
Total revenues    $  20,792   $  16,000    $    4,792    30% 
Total expenses      185,321     167,416        17,905    11 
----------------   --------    --------       -------   ---  ------- 
Walker & Dunlop 
 net income 
 (loss)           $(118,684)  $(116,247)   $   (2,437)    2% 
----------------   --------    --------       -------   --- ------ 
Key performance 
metric: 
   Adjusted 
    EBITDA        $(139,453)  $(128,575)   $  (10,878)    8% 
   Diluted 
    earnings 
    (loss) per 
    share             (3.46)      (3.43)        (0.03)    1 
 

CORPORATE - DISCUSSION OF FULL-YEAR RESULTS:

   --  Total revenues increased primarily due to a change to income from 
      equity method investments in 2025 from a loss from equity method 
      investments in 2024. 
 
   --  Total expenses increased primarily due to increased personnel costs, 
      asset impairment and other expenses, and other operating expenses year 
      over year. Personnel expense increased largely due to increased salaries 
      and benefits, driven by an increase in average segment headcount, 
      partially offset by a decrease in subjective bonus accrual related to 
      company performance. The increase in asset impairments and other expenses 
      was driven by increased legal and other professional fees related to 
      increased compliance costs and other corporate initiatives, while other 
      operating expenses saw a rise in software and travel and entertainment 
      costs. 

CAPITAL SOURCES AND USES

On February 25, 2026, the Company's Board of Directors declared a dividend of $0.68 per share for the first quarter of 2026. The dividend will be paid on March 27, 2026, to all holders of record of the Company's restricted and unrestricted common stock as of March 13, 2026.

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 December 31, 2025, we had not repurchased any shares of common stock under the 2025 Share Repurchase Program. On February 13, 2026, 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 26, 2026 (the "2026 Share Repurchase Program").

Any repurchases made pursuant to the 2026 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.

 
 
     Earnings Call:    Thursday, February 26, 2026, at 8:30 a.m. EST 
                       (800) 330-6710 from within the United States; (312) 
             Phone:    471-1353 from outside the United States 
 Confirmation Code:    1125082 
      Webcast Link:    https://event.webcasts.com/starthere.jsp?ei=1751166&tp_ 
                       key=b177df1a08 
 

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, loan repurchase losses, 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, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, including additional charges or losses related to loans we have already repurchased or indemnified and new repurchase requests we may receive from the GSEs related to the previously identified instances of borrower fraud, additional instances of borrower fraud, or other reasons.

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.

 
                     Walker & Dunlop, Inc. and Subsidiaries 
                           Consolidated Balance Sheets 
                                    Unaudited 
 
                     December    September 
                        31,         30,       June 30,   March 31,   December 31, 
(in thousands)         2025         2025        2025        2025         2024 
                    -----------  ----------  ----------  ----------  ------------ 
Assets 
   Cash and cash 
    equivalents     $  299,315   $  274,828  $  233,712  $  180,971  $  279,270 
   Restricted cash      22,772       44,462      41,090      32,268      25,156 
   Pledged 
    securities, at 
    fair value         224,954      221,730     218,435     214,374     206,904 
   Loans held for 
    sale, at fair 
    value            1,436,350    2,197,739   1,177,837     946,372     780,749 
   Mortgage 
    servicing 
    rights             808,145      805,975     817,814     825,761     852,399 
   Goodwill            868,710      868,710     868,710     868,710     868,710 
   Other 
    intangible 
    assets             141,877      145,631     149,385     153,139     156,893 
   Receivables, 
    net                419,358      374,316     360,646     372,689     335,879 
   Committed 
    investments in 
    tax credit 
    equity             241,401      257,564     194,479     337,510     313,230 
   Other assets        596,596      606,320     612,932     580,084     562,803 
                     ---------    ---------   ---------   ---------   --------- 
Total assets        $5,059,478   $5,797,275  $4,675,040  $4,511,878  $4,381,993 
                     =========    =========   =========   =========   ========= 
 
Liabilities 
   Warehouse notes 
    payable         $1,420,272   $2,175,157  $1,157,234  $  931,002  $  781,706 
   Corporate notes 
    payable            829,218      829,909     828,657     825,556     768,044 
   Allowance for 
    risk-sharing 
    obligations         37,546       34,140      33,191      31,871      28,159 
   Deferred tax 
    liabilities, 
    net                237,001      240,912     240,929     241,456     241,386 
   Commitments to 
    fund 
    investments in 
    tax credit 
    equity             219,949      223,788     168,863     295,052     274,975 
   Other 
    liabilities        569,630      515,903     484,368     442,852     527,860 
                     ---------    ---------   ---------   ---------   --------- 
Total liabilities   $3,313,616   $4,019,809  $2,913,242  $2,767,789  $2,622,130 
                     ---------    ---------   ---------   ---------   --------- 
 
Temporary Equity 
   Profit 
    interests of a 
    wholly owned 
    subsidiary 
    subject to 
    possible 
    redemption      $   (1,036)  $       --  $       --  $       --  $       -- 
 
Stockholders' 
Equity 
   Common stock     $      334   $      333  $      333  $      333  $      332 
   Additional 
    paid-in 
    capital            450,434      444,127     438,129     432,788     429,000 
   Accumulated 
    other 
    comprehensive 
    income (loss)        1,876        1,833       2,764       1,295         586 
   Retained 
    earnings         1,282,390    1,319,274   1,308,792   1,297,764   1,317,945 
                     ---------    ---------   ---------   ---------   --------- 
Total 
 stockholders' 
 equity             $1,735,034   $1,765,567  $1,750,018  $1,732,180  $1,747,863 
                     ---------    ---------   ---------   ---------   --------- 
   Noncontrolling 
    interests           11,864       11,899      11,780      11,909      12,000 
                     ---------    ---------   ---------   ---------   --------- 
Total permanent 
 equity             $1,746,898   $1,777,466  $1,761,798  $1,744,089  $1,759,863 
                     ---------    ---------   ---------   ---------   --------- 
Commitments and 
contingencies               --           --          --          --          -- 
                     ---------    ---------   ---------   ---------   --------- 
Total liabilities, 
 temporary equity, 
 and permanent 
 equity             $5,059,478   $5,797,275  $4,675,040  $4,511,878  $4,381,993 
                     =========    =========   =========   =========   ========= 
 
 
                                         Walker & Dunlop, Inc. and Subsidiaries 
                               Consolidated Statements of Income and Comprehensive Income 
                                                        Unaudited 
 
                                              Quarterly Trends                                     Years ended 
                    -------------------------------------------------------------------- 
                                                                                                   December 31, 
                                                                                          ------------------------------ 
(in thousands, 
except per share 
amounts)              Q4 2025       Q3 2025       Q2 2025       Q1 2025       Q4 2024          2025            2024 
                    ------------  ------------  ------------  ------------  ------------  --------------  -------------- 
Revenues 
   Origination 
    fees            $103,614      $ 97,845      $ 94,309      $ 46,381      $ 93,942      $  342,149      $  276,562 
   MSR income         50,060        48,657        53,153        27,811        55,920         179,681         153,593 
   Servicing fees     86,339        85,189        83,693        82,221        82,961         337,442         325,644 
   Property sales 
    broker fees       28,488        26,546        14,964        13,521        21,175          83,519          60,583 
   Investment 
    management 
    fees              11,192         6,178         7,577         9,682        (3,110)         34,629          36,976 
   Net warehouse 
    interest 
    income 
    (expense)           (909)       (2,035)       (1,760)         (786)       (2,186)         (5,490)         (7,033) 
   Placement fees 
    and other 
    interest 
    income            37,085        46,302        35,986        33,211        43,962         152,584         167,961 
   Other revenues     24,155        28,993        31,318        25,326        48,787         109,792         118,204 
                     -------       -------       -------       -------       -------       ---------       --------- 
Total revenues      $340,024      $337,675      $319,240      $237,367      $341,451      $1,234,306      $1,132,490 
                     -------       -------       -------       -------       -------       ---------       --------- 
 
Expenses 
   Personnel        $187,113      $177,418      $161,888      $121,390      $169,178      $  647,809      $  559,246 
   Amortization 
    and 
    depreciation      62,084        60,041        58,936        57,621        68,054         238,682         237,549 
   Provision 
    (benefit) for 
    credit losses      3,105           949         1,820         3,712         4,529           9,586          10,839 
   Interest 
    expense on 
    corporate 
    debt              15,983        16,451        16,767        15,514        15,921          64,715          69,686 
   Goodwill 
    impairment            --            --            --            --        33,000              --          33,000 
   Fair value 
    adjustments to 
    contingent 
    consideration 
    liabilities       (8,243)           --            --            --       (48,955)         (8,243)        (50,321) 
   Indemnified and 
    repurchased 
    loan expenses     35,784         3,526           683           857         8,455          40,850          10,573 
   Asset 
    impairments 
    and other 
    expenses          30,390           663         1,478         4,215         1,081          36,746           1,181 
   Other operating 
    expenses          32,365        32,690        31,294        28,814        38,068         125,163         129,236 
                     -------       -------       -------       -------       -------       ---------       --------- 
Total expenses      $358,581      $291,738      $272,866      $232,123      $289,331      $1,155,308      $1,000,989 
                     -------       -------       -------       -------       -------       ---------       --------- 
Income (loss) 
 before taxes       $(18,557)     $ 45,937      $ 46,374      $  5,244      $ 52,120      $   78,998      $  131,501 
                     -------       -------       -------       -------       -------       ---------       --------- 
   Income tax 
    expense 
    (benefit)         (5,447)       12,516        12,425         2,519        10,955          22,013          30,543 
                     -------       -------       -------       -------       -------       ---------       --------- 
Net income before 
 noncontrolling 
 interests and 
 temporary equity 
 holders            $(13,110)     $ 33,421      $ 33,949      $  2,725      $ 41,165      $   56,985      $  100,958 
                     -------       -------       -------       -------       -------       ---------       --------- 
   Less: net 
    income (loss) 
    from 
    noncontrolling 
    interests            (36)          (31)           (3)          (29)       (3,671)            (99)         (7,209) 
   Less: net 
    income (loss) 
    attributable 
    to temporary 
    equity 
    holders              837            --            --            --            --             837              -- 
                     -------       -------       -------       -------       -------       ---------       --------- 
Walker & Dunlop 
 net income 
 (loss)             $(13,911)     $ 33,452      $ 33,952      $  2,754      $ 44,836      $   56,247      $  108,167 
                     =======       =======       =======       =======       =======       =========       ========= 
   Other 
    comprehensive 
    income (loss), 
    net of tax            43          (931)        1,469           709          (880)          1,290           1,065 
                     -------       -------       -------       -------       -------       ---------       --------- 
Walker & Dunlop 
 comprehensive 
 income (loss)      $(13,868)     $ 32,521      $ 35,421      $  3,463      $ 43,956      $   57,537      $  109,232 
                     =======       =======       =======       =======       =======       =========       ========= 
 
Effective Tax Rate        29%           27%           27%           48%           21%             28%             23% 
 
Basic earnings 
 (loss) per share   $  (0.41)     $   0.98      $   1.00      $   0.08      $   1.32      $     1.65      $     3.19 
Diluted earnings 
 (loss) per share      (0.41)         0.98          0.99          0.08          1.32            1.64            3.19 
Cash dividends 
 paid per common 
 share                  0.67          0.67          0.67          0.67          0.65            2.68            2.60 
 
Basic 
 weighted-average 
 shares 
 outstanding          33,388        33,376        33,358        33,264        33,192          33,347          33,116 
Diluted 
 weighted-average 
 shares 
 outstanding          33,410        33,397        33,371        33,296        33,223          33,369          33,158 
 
 
                                                         SUPPLEMENTAL OPERATING DATA 
                                                                  Unaudited 
 
                                                       Quarterly Trends                                                Years ended 
                   ---------------------------------------------------------------------------------------- 
                                                                                                                       December 31, 
                                                                                                             -------------------------------- 
(in thousands, 
except per share 
data and unless 
otherwise noted)       Q4 2025           Q3 2025           Q2 2025           Q1 2025           Q4 2024            2025             2024 
                   ----------------  ----------------  ----------------  ----------------  ----------------  ---------------  --------------- 
Transaction 
Volume: 
Components of Debt Financing Volume 
   Fannie Mae      $  2,785,231      $  2,141,092      $  3,114,308      $  1,511,794      $  3,225,633      $ 9,552,425      $ 7,641,161 
   Freddie Mac        2,023,592         3,664,380         1,752,597           808,247         1,553,495        8,248,816        5,227,550 
   Ginnie Mae - 
    HUD                 153,748           325,169           288,449           148,158           116,437          915,524          588,529 
   Brokered (1)       8,675,937         4,512,729         6,335,071         2,552,943         4,893,643       22,076,680       16,093,776 
   Principal 
    Lending and 
    Investing 
    (2)                 167,700           199,250           147,800           175,500           207,000          690,250          603,650 
                    -----------       -----------       -----------       -----------       -----------       ----------       ---------- 
Total Debt 
 Financing 
 Volume            $ 13,806,208      $ 10,842,620      $ 11,638,225      $  5,196,642      $  9,996,208      $41,483,695      $30,154,666 
                    -----------       -----------       -----------       -----------       -----------       ----------       ---------- 
   Property Sales 
    Volume            4,524,142         4,672,875         2,313,585         1,839,290         3,450,614       13,349,892        9,751,223 
                    -----------       -----------       -----------       -----------       -----------       ----------       ---------- 
Total Transaction 
 Volume            $ 18,330,350      $ 15,515,495      $ 13,951,810      $  7,035,932      $ 13,446,822      $54,833,587      $39,905,889 
                    ===========       ===========       ===========       ===========       ===========       ==========       ========== 
 
Key Performance 
Metrics: 
Operating margin             (5)%              14%               15%                2%               15%               6%              12% 
Return on equity             (3)                8                 8                 1                10                3                6 
Walker & Dunlop 
 net income 
 (loss)            $    (13,911)     $     33,452      $     33,952      $      2,754      $     44,836      $    56,247      $   108,167 
Adjusted EBITDA 
 (3)                     38,755            82,084            76,811            64,966            94,577          262,616          328,549 
Diluted earnings 
 (loss) per 
 share                    (0.41)             0.98              0.99              0.08              1.32             1.64             3.19 
Adjusted core EPS 
 (4)                       0.28              1.22              1.15              0.85              1.34             3.50             4.97 
 
Key Expense Metrics (as a percentage of total 
revenues): 
Personnel expense            55%               53%               51%               51%               50%              52%              49% 
Other operating 
 expenses                    10                10                10                12                11               10               11 
Key Revenue Metrics (as a percentage of debt 
financing volume): 
Origination fee 
 rate (5)                  0.75%             0.90%             0.82%             0.90%             0.94%            0.83%            0.92% 
Agency MSR rate 
 (6)                       1.01              0.79              1.03              1.13              1.14             0.96             1.14 
 
Other Data: 
Market 
 capitalization 
 at period end     $  2,048,798      $  2,847,907      $  2,395,939      $  2,901,726      $  3,282,018 
Closing share 
 price at period 
 end               $      60.15      $      83.62      $      70.48      $      85.36      $      97.21 
Average headcount         1,464             1,438             1,400             1,394             1,391 
 
Components of Servicing Portfolio (end of period): 
   Fannie Mae      $ 72,708,372      $ 71,006,342      $ 70,042,909      $ 69,176,839      $ 68,196,744 
   Freddie Mac       42,595,441        40,473,401        39,433,013        38,556,682        39,185,091 
   Ginnie Mae - 
    HUD              11,563,020        11,298,108        11,008,314        10,882,857        10,847,265 
   Brokered (7)      17,111,320        16,553,827        16,864,888        17,032,338        17,057,912 
                    -----------       -----------       -----------       -----------       ----------- 
Total Servicing 
 Portfolio         $143,978,153      $139,331,678      $137,349,124      $135,648,716      $135,287,012 
                    -----------       -----------       -----------       -----------       ----------- 
   Assets under 
    management 
    (8)              18,631,100        18,521,907        18,623,451        18,518,413        18,423,463 
                    -----------       -----------       -----------       -----------       ----------- 
Total Managed 
 Portfolio         $162,609,253      $157,853,585      $155,972,575      $154,167,129      $153,710,475 
                    ===========       ===========       ===========       ===========       =========== 
 
Key Servicing Portfolio Metrics (end of period): 
Custodial escrow 
 account deposits 
 (in billions)     $        3.1      $        2.8      $        2.7      $        2.4      $        2.7 
Weighted-average 
 servicing fee 
 rate (basis 
 points)                   23.6              24.0              24.1              24.4              24.2 
Weighted-average 
 remaining 
 servicing 
 portfolio term 
 (years)                    7.2               7.4               7.4               7.5               7.7 
 
 
____________________ 
(1)   Brokered transactions for life insurance companies, commercial banks, 
      and other capital sources. 
(2)   Includes debt financing volumes from our WDIP separate accounts. 
(3)   This is a non-GAAP financial measure. For more information on adjusted 
      EBITDA, refer to the section above titled "Non-GAAP Financial 
      Measures." 
(4)   This is a non-GAAP financial measure. For more information on adjusted 
      core EPS, refer to the section above titled "Non-GAAP Financial 
      Measures." 
(5)   Origination fees as a percentage of debt financing volume. Excludes the 
      income and debt financing volume from Principal Lending and Investing. 
(6)   MSR income as a percentage of Agency debt financing volume. 
(7)   Brokered loans serviced primarily for life insurance companies. 
(8)   WDAE assets under management, commercial real estate loans and funds 
      managed by WDIP, and interim loans serviced for our interim loan joint 
      venture. 
 
 
                                               KEY CREDIT METRICS 
                                                    Unaudited 
 
                           December 31,     September 30,        June 30,         March 31,        December 31, 
(dollars in thousands)         2025              2025              2025              2025              2024 
                         ----------------  ----------------  ----------------  ----------------  ---------------- 
Risk-sharing servicing 
portfolio: 
   Fannie Mae Full Risk  $ 65,087,136      $ 63,382,256      $ 61,486,070      $ 60,493,946      $ 59,304,888 
   Fannie Mae Modified 
    Risk                    7,621,236         7,624,086         8,556,839         8,682,893         8,891,856 
   Freddie Mac Modified 
    Risk                       15,000            10,000            10,000            15,000            15,000 
                          -----------       -----------       -----------       -----------       ----------- 
Total risk-sharing 
 servicing portfolio     $ 72,723,372      $ 71,016,342      $ 70,052,909      $ 69,191,839      $ 68,211,744 
                          -----------       -----------       -----------       -----------       ----------- 
 
Non-risk-sharing 
servicing portfolio: 
   Freddie Mac No Risk   $ 42,580,441      $ 40,463,401      $ 39,423,013      $ 38,541,682      $ 39,170,091 
   GNMA - HUD No Risk      11,563,020        11,298,108        11,008,314        10,882,857        10,847,265 
   Brokered                17,111,320        16,553,827        16,864,888        17,032,338        17,057,912 
                          -----------       -----------       -----------       -----------       ----------- 
Total non-risk-sharing 
 servicing portfolio     $ 71,254,781      $ 68,315,336      $ 67,296,215      $ 66,456,877      $ 67,075,268 
                          -----------       -----------       -----------       -----------       ----------- 
Total loans serviced 
 for others              $143,978,153      $139,331,678      $137,349,124      $135,648,716      $135,287,012 
                          ===========       ===========       ===========       ===========       =========== 
 
Loans held for 
 investment (full 
 risk)                   $     36,926      $     36,926      $     36,926      $     36,926      $     36,926 
Indemnification 
 reserves                      23,920                --                --                --             5,527 
Interim Loan Joint 
 Venture Managed Loans 
 (1)                           32,965            76,215            76,215           173,315           173,315 
 
At-risk servicing 
 portfolio (2)           $ 68,649,960      $ 66,946,180      $ 65,378,944      $ 64,450,319      $ 63,365,672 
Maximum exposure to 
 at-risk portfolio (3)     14,052,667        13,704,585        13,382,410        13,200,846        12,893,593 
Defaulted loans(4)            158,821           139,020           108,530           108,530            41,737 
 
Defaulted loans as a 
 percentage of the 
 at-risk portfolio               0.23%             0.21%             0.17%             0.17%             0.07% 
Allowance for 
 risk-sharing as a 
 percentage of the 
 at-risk portfolio               0.05              0.05              0.05              0.05              0.04 
Allowance for 
 risk-sharing as a 
 percentage of maximum 
 exposure                        0.27              0.25              0.25              0.24              0.22 
 
 
____________________ 
(1)   This balance consisted entirely of Interim Program JV managed loans. We 
      indirectly share in a portion of the risk of loss associated with 
      Interim Program JV managed loans through our 15% equity ownership in the 
      Interim Program JV. We have no exposure to risk of loss for the loans 
      serviced directly for the Interim Program JV partner. The balance of 
      this line is included as a component of assets under management in the 
      Supplemental Operating Data table above. 
(2)   At-risk servicing portfolio is defined as the balance of Fannie Mae 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. 
(3)   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. 
(4)   Defaulted loans represent loans in our Fannie Mae at-risk portfolio or 
      Freddie Mac 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. 
 
 
                       ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP 
                                            Unaudited 
 
                                   Quarterly Trends                           Years ended 
                 ----------------------------------------------------- 
                                                                              December 31, 
                                                                        ------------------------ 
(in thousands)    Q4 2025    Q3 2025    Q2 2025    Q1 2025    Q4 2024      2025         2024 
                 ---------  ---------  ---------  ---------  ---------  ----------  ------------ 
Reconciliation of Walker & Dunlop Net 
Income to Adjusted EBITDA 
Walker & Dunlop 
 Net Income 
 (Loss)          $(13,911)  $ 33,452   $ 33,952   $  2,754   $ 44,836   $  56,247   $ 108,167 
Income tax 
 expense 
 (benefit)         (5,447)    12,516     12,425      2,519     10,955      22,013      30,543 
Interest 
 expense on 
 corporate 
 debt              15,983     16,451     16,767     15,514     15,921      64,715      69,686 
Amortization 
 and 
 depreciation      62,084     60,041     58,936     57,621     68,054     238,682     237,549 
Provision 
 (benefit) for 
 credit losses      3,105        949      1,820      3,712      4,529       9,586      10,839 
Loan repurchase 
 losses (1)        20,092         --         --         --         --      20,092          -- 
Net write-offs         --         --         --         --         --          --        (468) 
Stock-based 
 compensation 
 expense            6,909      7,332      6,064      6,442      7,702      26,747      27,326 
Goodwill 
 impairment, 
 net of 
 contingent 
 consideration 
 liability fair 
 value 
 adjustments(2)        --         --         --         --     (1,500)         --      (1,500) 
Write-off of 
 unamortized 
 issuance costs 
 from corporate 
 debt 
 paydown(3)            --         --         --      4,215         --       4,215          -- 
MSR income        (50,060)   (48,657)   (53,153)   (27,811)   (55,920)   (179,681)   (153,593) 
                  -------    -------    -------    -------    -------    --------    -------- 
Adjusted EBITDA  $ 38,755   $ 82,084   $ 76,811   $ 64,966   $ 94,577   $ 262,616   $ 328,549 
                  =======    =======    =======    =======    =======    ========    ======== 
 
 
____________________ 
(1)   Presented as a component of Indemnified and repurchased loan expenses on 
      the Consolidated Statements of Income and Comprehensive Income. 
(2)   For the three months and year ended December 31, 2024, includes goodwill 
      impairment of $33.0 million and contingent consideration liability fair 
      value adjustments of $34.5 million. 
(3)   Presented as a component of Asset impairments and other expenses on the 
      Consolidated Statements of Income. 
 
 
 ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT 
                           Unaudited 
 
                                Capital Markets 
                 ---------------------------------------------- 
                  Three months ended      For the year ended 
                     December 31,            December 31, 
                 --------------------  ------------------------ 
(in thousands)     2025       2024        2025         2024 
                 ---------  ---------  ----------  ------------ 
Reconciliation of Walker & Dunlop Net 
Income to Adjusted EBITDA 
Walker & Dunlop 
 Net Income 
 (Loss)          $ 26,387   $ 40,497   $  89,819   $  66,664 
Income tax 
 expense 
 (benefit)         10,170     11,586      35,019      20,275 
Interest 
 expense on 
 corporate 
 debt               4,316      4,451      17,506      19,489 
Amortization 
 and 
 depreciation       1,146      1,139       4,579       4,551 
Stock-based 
 compensation 
 expense            3,829      3,920      14,514      15,856 
Goodwill 
 impairment, 
 net of 
 contingent 
 consideration 
 liability fair 
 value 
 adjustments 
 (1)                   --     (1,500)         --      (1,500) 
Write-off of 
unamortized 
issuance costs 
from corporate 
debt 
paydown(2)             --         --       1,264          -- 
MSR income        (50,060)   (55,920)   (179,681)   (153,593) 
                  -------    -------    --------    -------- 
Adjusted EBITDA  $ (4,212)  $  4,173   $ (16,980)  $ (28,258) 
                  =======    =======    ========    ======== 
 
                          Servicing & Asset Management 
                 ---------------------------------------------- 
                  Three months ended      For the year ended 
                     December 31,            December 31, 
                 --------------------  ------------------------ 
(in thousands)     2025       2024        2025         2024 
                 ---------  ---------  ----------  ------------ 
Reconciliation of Walker & Dunlop Net 
Income to Adjusted EBITDA 
Walker & Dunlop 
 Net Income 
 (Loss)          $ (8,518)  $ 36,553   $  85,112   $ 157,750 
Income tax 
 expense 
 (benefit)         (3,818)     7,007      32,839      45,437 
Interest 
 expense on 
 corporate 
 debt              10,200      9,986      41,345      43,834 
Amortization 
 and 
 depreciation      58,269     65,155     225,640     226,067 
Provision 
 (benefit) for 
 credit losses      3,105      4,529       9,586      10,839 
Loan repurchase 
 losses (3)        20,092         --      20,092          -- 
Net write-offs         --         --          --        (468) 
Stock-based 
 compensation 
 expense              462        538       1,906       1,923 
Write-off of 
unamortized 
issuance costs 
from corporate 
debt 
paydown(2)             --         --       2,529          -- 
                  -------    -------    --------    -------- 
Adjusted EBITDA  $ 79,792   $123,768   $ 419,049   $ 485,382 
                  =======    =======    ========    ======== 
 
                                   Corporate 
                 ---------------------------------------------- 
                  Three months ended      For the year ended 
                     December 31,            December 31, 
                 --------------------  ------------------------ 
(in thousands)     2025       2024        2025         2024 
                 ---------  ---------  ----------  ------------ 
Reconciliation of Walker & Dunlop Net 
Income to Adjusted EBITDA 
Walker & Dunlop 
 Net Income 
 (Loss)          $(31,780)  $(32,214)  $(118,684)  $(116,247) 
Income tax 
 expense 
 (benefit)        (11,799)    (7,638)    (45,845)    (35,169) 
Interest 
 expense on 
 corporate 
 debt               1,467      1,484       5,864       6,363 
Amortization 
 and 
 depreciation       2,669      1,760       8,463       6,931 
Stock-based 
 compensation 
 expense            2,618      3,244      10,327       9,547 
Write-off of 
unamortized 
issuance costs 
from corporate 
debt 
paydown(2)             --         --         422          -- 
                  -------    -------    --------    -------- 
Adjusted EBITDA  $(36,825)  $(33,364)  $(139,453)  $(128,575) 
                  =======    =======    ========    ======== 
 
 
 
____________________ 
(1)   For the three months and year ended December 31, 2024, includes goodwill 
      impairment of $33.0 million and contingent consideration liability fair 
      value adjustments of $34.5 million. 
(2)   Presented as a component of Asset impairments and other expenses on the 
      Consolidated Statements of Income. 
(3)   Presented as a component of Indemnified and repurchased loan expenses on 
      the Consolidated Statements of Income and Comprehensive Income. 
 
 
                                 ADJUSTED CORE EPS RECONCILIATION 
                                             Unaudited 
 
                                     Quarterly Trends                           Years ended 
                   ----------------------------------------------------- 
                                                                                December 31, 
                                                                          ------------------------ 
(in thousands)      Q4 2025    Q3 2025    Q2 2025    Q1 2025    Q4 2024      2025         2024 
                   ---------  ---------  ---------  ---------  ---------  ----------  ------------ 
Reconciliation of 
Walker & Dunlop 
Net Income to 
Adjusted Core Net 
Income 
Walker & Dunlop 
 Net Income 
 (Loss)            $(13,911)  $ 33,452   $ 33,952   $  2,754   $ 44,836   $  56,247   $ 108,167 
Provision 
 (benefit) for 
 credit losses        3,105        949      1,820      3,712      4,529       9,586      10,839 
Loan repurchase 
 losses(1)           20,092         --         --         --         --      20,092          -- 
Net write-offs           --         --         --         --         --          --        (468) 
Amortization and 
 depreciation        62,084     60,041     58,936     57,621     68,054     238,682     237,549 
MSR income          (50,060)   (48,657)   (53,153)   (27,811)   (55,920)   (179,681)   (153,593) 
Goodwill 
 impairment              --         --         --         --     33,000          --      33,000 
Contingent 
 consideration 
 accretion and 
 fair value 
 adjustments         (8,226)        18         41         40    (48,822)     (8,127)    (48,692) 
Write-off of 
 unamortized 
 issuance costs 
 from corporate 
 debt paydown(2)         --         --         --      4,215         --       4,215          -- 
Income tax 
 expense 
 adjustment(3)       (3,662)    (3,856)    (2,429)   (11,355)      (177)    (21,302)    (18,264) 
                    -------    -------    -------    -------    -------    --------    -------- 
Adjusted Core Net 
 Income            $  9,422   $ 41,947   $ 39,167   $ 29,176   $ 45,500   $ 119,712   $ 168,538 
                    =======    =======    =======    =======    =======    ========    ======== 
 
Reconciliation of 
Diluted EPS to 
Adjusted core 
EPS 
Walker & Dunlop 
 Net Income        $(13,911)  $ 33,452   $ 33,952   $  2,754   $ 44,836   $  56,247   $ 108,167 
Diluted 
 weighted-average 
 shares 
 outstanding         33,410     33,397     33,371     33,296     33,223      33,369      33,158 
                    -------    -------    -------    -------    -------    --------    -------- 
Diluted earnings 
 (loss) per 
 share             $  (0.41)  $   0.98   $   0.99   $   0.08   $   1.32   $    1.64   $    3.19 
                    =======    =======    =======    =======    =======    ========    ======== 
 
Adjusted Core Net 
 Income            $  9,422   $ 41,947   $ 39,167   $ 29,176   $ 45,500   $ 119,712   $ 168,538 

(MORE TO FOLLOW) Dow Jones Newswires

February 26, 2026 06:00 ET (11:00 GMT)

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