8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

​

FORM 8-K

​

CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

​

Date of Report (Date of earliest event reported): August 7, 2025

​

Walker & Dunlop, Inc.

​

(Exact name of registrant as specified in its charter)

​

​	​	​	​	​
Maryland		001-35000		80-0629925
(State or other Jurisdiction of Incorporation)	​	(Commission File Number)		(IRS Employer Identification No.)

​

​	​	​
7272 Wisconsin Avenue , Suite 1300 Bethesda , MD		20814
(Address of Principal Executive Offices)		(Zip Code)

​

Registrant’s telephone number, including area code: (301) 215-5500

​

Not applicable

(Former name or former address if changed since last report.)

​

	​		​
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	​	Trading Symbol	​	Name of each exchange on which registered
Common Stock, $0.01 Par Value Per Share	​	WD	​	New York Stock Exchange

​

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

​

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

​

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

​

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

​

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

​

☐ Emerging growth company

​

☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 1

Item 2.02.  Results of Operations and Financial Condition.

​

On August 7, 2025, Walker & Dunlop, Inc. (the “Company”) issued a press release reporting its financial results for the quarter and year-to-date period ended June 30, 2025. A copy of this press release is furnished herewith as Exhibit 99.1 and is hereby incorporated by reference into this Item 2.02.

​

The information contained in this current report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

​

Item 9.01. Financial Statements and Exhibits.

​

(d)	Exhibits.

​

The exhibit contained in this current report on Form 8-K shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

​

Exhibit Number		Description
99.1	​	Press Release dated August 7, 2025
104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document)

​

​ 2

SIGNATURES

​

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​

​	​	​	​
​	​	​	Walker & Dunlop, Inc.
​	​	​	(Registrant)
​	​	​	​
​	​	​	​
Date: August 7, 2025	​	By:	/s/ Gregory A. Florkowski
​	​	​	Gregory A. Florkowski<br><br>Executive Vice President and Chief Financial Officer

​

​

​

​

​ 3

Second quarter 2025 Earnings Release

​

Exhibit 99.1

Walker & Dunlop Reports Second Quarter 2025 Financial Results

​

SECOND QUARTER 2025 HIGHLIGHTS

●	Total transaction volume of $14.0 billion, up 65% from Q2’24
●	Total revenues of $319.2 million, up 18% from Q2’24
---	---
●	Net income of $34.0 million and diluted earnings per share of $0.99, up 50% and 48%, respectively, from Q2’24
---	---
●	Adjusted EBITDA^(1)^of $76.8 million, down 5% from Q2’24
---	---
●	Adjusted core EPS^(2)^ of $1.15, down 7% from Q2’24
---	---
●	Servicing portfolio of $137.3 billion as of June 30, 2025, up 3% from June 30, 2024
---	---

​

YEAR-TO-DATE 2025 HIGHLIGHTS

●	Total transaction volume of $21.0 billion, up 41% from 2024
●	Total revenues of $556.6 million, up 12% from 2024
---	---
●	Net income of $36.7 million and diluted earnings per share of $1.07, up 6% and 5%, respectively, from 2024
---	---
●	Adjusted EBITDA^(1)^of $141.8 million, down 9% from 2024
---	---
●	Adjusted core EPS^(2)^ of $2.00, down 16% from 2024
---	---

​

BETHESDA, MD – AUGUST 7, 2025 – Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported quarterly total transaction volume of $14.0 billion, a 65% increase from the second quarter of the prior year, reflecting W&D’s execution on the rebounding demand for financing and capital deployment in the commercial real estate market after a slow start to the year. Total revenues increased 18% to $319.2 million in the second quarter of 2025, generating a 50% increase in net income to $34.0 million, or $0.99 per diluted share, a 48% increase year over year. Second quarter 2025 adjusted EBITDA was $76.8 million, down 5% over the same period in 2024. Adjusted core EPS was down 7% year over year to $1.15. Both adjusted EBITDA and adjusted core EPS remove non-recurring and non-cash revenues and expenses. One of the biggest sources of the increases in net income and diluted EPS for the quarter was an increase in the fair value of expected net cash flows from servicing, net ("MSR income"), non-cash revenue that did not benefit adjusted EBITDA or adjusted core EPS. The Company’s Board of Directors declared a dividend of $0.67 per share for the third quarter of 2025.

​

“Walker & Dunlop’s second quarter results demonstrate terrific performance by our team in what appears to be the advent of the next commercial real estate investment cycle,” commented Walker & Dunlop Chairman and CEO, Willy Walker. "Total transaction volume increased 65% year over year, driving 18% revenue growth and a 48% rise in diluted earnings per share. We are gaining market share with our largest capital partners while broadening our Capital Markets capabilities into hospitality, data centers, and Europe. This strong performance underscores the momentum we are seeing across the capital markets as investors begin to recycle equity, refinance assets, and deploy a significant amount of capital that sat on the sidelines during the Great Tightening.”

Walker continued, “Walker & Dunlop’s strategic investments, scale, and brand position us well to meet our clients’ needs and grow over the next several years. We remain focused on scaling our technology and data-enabled businesses -- such as appraisals and small balance lending -- to make us more insightful to our clients and efficient as a provider of services. We expect continued growth in our Capital Markets platform as the next cycle gains momentum.”

​

---

(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.”
---	---

1

​

Second quarter 2025 Earnings Release

​

CONSOLIDATED SECOND QUARTER 2025

OPERATING RESULTS

​

​	​	​	​	​	​	​	​	​	​	​	​
TRANSACTION VOLUMES
(in thousands)	​	​	Q2 2025	​	​	Q2 2024	​	Variance	​	% Variance
Fannie Mae	​	$	3,114,308	​	$	1,510,804	​		​	106	%
Freddie Mac	​	​	1,752,597	​	​	1,153,190	​	​	​	52	​
Ginnie Mae - HUD	​	​	288,449	​	​	185,898	​	​	​	55	​
Brokered ^(1)^	​	​	6,335,071	​	​	3,852,851	​	​	​	64	​
Principal Lending and Investing ^(2)^	​	​	147,800	​	​	214,975	​	​	​	(31)	​
Debt financing volume	​	$	11,638,225	​	$	6,917,718	​		​	68	%
Property sales volume	​	​	2,313,585	​	​	1,530,783	​	​	​	51	​
Total transaction volume	​	$	13,951,810	​	$	8,448,501	​		​	65	%

All values are in US Dollars.

(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 65% in the second quarter of 2025, reaching $14.0 billion, reflecting broad-based strength across nearly all transaction types and underscored by our strong debt financing activity with Fannie Mae and Freddie Mac (collectively, the “GSEs”).
●	GSE debt financing volume increased 83% year over year, led by a 106% increase in Fannie Mae debt financing volume, one of our most-profitable products. Our year-to-date GSE lending volumes drove market share gains to 11.4%, up from 10.3% in 2024.
---	---
●	Fannie Mae lending volumes in the second quarter included the refinancing of a $941 million loan portfolio. Large, structured transactions generate lower margins on loan origination and debt brokerage fees, net (“origination fees”) and MSR income. We are seeing an increase in large transactions in the market and expect origination fee and MSR income margins to be in line with our second quarter results as we move into the second half of 2025.
---	---
●	HUD debt financing volumes increased 55% in the second quarter of 2025, as our team continues to execute well in the market, evidenced by our ranking as the second largest HUD lender in 2024.
---	---
●	The 64% increase in brokered debt financing volume during the second quarter of 2025 reflected the strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial-backed securities, and other private capital providers amid the ongoing rebound of the commercial real estate market after a slow start to the year.
---	---
●	Property sales volume increased 51% in the second quarter of 2025, as the macroeconomic fundamentals supporting the multifamily market; such as record supply absorptions, a significant decrease in new construction starts in most markets, and affordability of renting versus owning, continue to drive a recovery in the multifamily acquisitions market.
---	---

2

​

Second quarter 2025 Earnings Release

​

​	​	​	​	​	​	​	​	​	​	​	​
MANAGED PORTFOLIO
(dollars in thousands, unless otherwise noted)	​	​	Q2 2025	​	​	Q2 2024	​	Variance	​	% Variance
Fannie Mae	​	$	70,042,909	​	$	64,954,426	​		​	8	%
Freddie Mac	​	​	39,433,013	​	​	39,938,411	​	​	​	(1)	​
Ginnie Mae - HUD	​	​	11,008,314	​	​	10,619,764	​	​	​	4	​
Brokered	​	​	16,864,888	​	​	17,239,417	​	​	​	(2)	​
Principal Lending and Investing	​	​	-	​	​	25,893	​	​	​	(100)	​
Total Servicing Portfolio	​	$	137,349,124	​	$	132,777,911	​		​	3	%
Assets under management	​	​	18,623,451	​	​	17,566,666	​	​	​	6	​
Total Managed Portfolio	​	$	155,972,575	​	$	150,344,577	​		​	4	%
Custodial escrow account deposits at period end (in billions)	​	$	2.7	​	$	2.7	​	​	​	​	​
Weighted-average servicing fee rate (basis points)	​	​	24.1	​	​	24.1	​	​	​	​	​
Weighted-average remaining servicing portfolio term (years)	​	​	7.4	​	​	7.9	​	​	​	​	​

All values are in US Dollars.

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 second quarter of 2025, we added $1.7 billion of net loans to our servicing portfolio, and over the past 12 months, we added $4.6 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae loans.
---	---
●	$10.9 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years. These loans, with a weighted-average servicing fee of 28.1 basis points, represent only 9% of the total Agency loans in our portfolio. Over the next five years, 50% of Agency loans will mature, providing an opportunity for us to refinance these loans in the coming years.
---	---
●	The mortgage servicing rights (“MSRs”) associated with our servicing portfolio had a fair value of $1.4 billion as of both June 30, 2025 and 2024.
---	---
●	Assets under management totaled $18.6 billion as of June 30, 2025 and consisted of $16.0 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, and $1.7 billion of debt funds and $0.9 billion of equity funds managed by our registered investment advisor, WDIP. The 6% increase in assets under management was primarily driven by increases in all three fund categories.
---	---
​	​	​	​	​	​	​	​	​	​	​	​
---	---	---	---	---	---	---	---	---	---	---	---
KEY PERFORMANCE METRICS
(in thousands, except per share amounts)	​	​	Q2 2025	​	​	Q2 2024	​	Variance	​	% Variance
Walker & Dunlop net income	​	$	33,952	​	$	22,663	​		​	50	%
Adjusted EBITDA	​	​	76,811	​	​	80,931	​	​	​	(5)	​
Diluted EPS	​	$	0.99	​	$	0.67	​		​	48	%
Adjusted core EPS	​	$	1.15	​	$	1.23	​		​	(7)	%
Operating margin	​	​	15	%	​	10	%	​	​	​	​
Return on equity	​	​	8	​	​	5	​	​	​	​	​
Key Expense Metrics (as a % of total revenues):	​	​	​	​	​	​	​	​	​	​	​
Personnel expense	​	​	51	%	​	49	%	​	​	​	​
Other operating expenses	​	​	10	​	​	12	​	​	​	​	​

All values are in US Dollars.

DISCUSSION OF KEY PERFORMANCE METRICS :

●	The increases in Walker & Dunlop net income and diluted EPS were largely driven by the increase in total transaction volume during the quarter. Revenues increased 18%, while expenses only increased 13%, driving the expansion in our operating margin. The increase in net income was the primary factor in the growth of return on equity.

3

​

Second quarter 2025 Earnings Release

​

●	The increase in personnel expense as a percentage of total revenues was primarily the result of the increase in commissions due to the growth in total transaction volume for the quarter. The increase in revenues significantly outpaced a 3% rise in other operating expenses, lowering our other operating expenses as a percentage of total revenues.
●	Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and investment management fees and an increase in personnel expense. These changes were partially offset by increases in origination fees, servicing fees, property sales broker fees, and other revenues.
---	---
●	Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased.
---	---
​	​	​	​	​	​	​	​	​	​	​	​
---	---	---	---	---	---	---	---	---	---	---	---
KEY CREDIT METRICS
(in thousands)	​	​	Q2 2025	​	​	Q2 2024	​	Variance	​	% Variance
At-risk servicing portfolio ^(1)^	​	$	65,378,944	​	$	60,122,274	​		​	9	%
Maximum exposure to at-risk portfolio ^(2)^	​	​	13,382,410	​	​	12,222,290	​	​	​	9	​
Defaulted loans ^(3)^	​	$	108,530	​	$	48,560	​		​	123	%
Key credit metrics (as a % of the at-risk portfolio):	​	​	​	​	​	​	​	​	​	​	​
Defaulted loans	​	​	0.17	%	​	0.08	%	​	​	​	​
Allowance for risk-sharing	​	​	0.05	​	​	0.05	​	​	​	​	​
Key credit metrics (as a % of maximum exposure):	​	​	​	​	​	​	​	​	​	​	​
Allowance for risk-sharing	​	​	0.25	%	​	0.25	%	​	​	​	​

All values are in US Dollars.

---

(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 June 30, 2025, eight at-risk loans were in default with an aggregate unpaid principal balance (“UPB”) of $108.5 million, unchanged from March 31, 2025, compared to five at-risk loans in default with an aggregate UPB of $48.6 million as of June 30, 2024. The collateral-based reserves on defaulted loans were $8.6 million and $5.6 million as of June 30, 2025 and 2024, respectively. The approximately 3,200 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio.
---	---
●	During 2024, the Company received requests to repurchase five GSE loans. As of June 30, 2025, the Company has repurchased four of the loans and has a forbearance and indemnification agreement in place for the other loan. The Company foreclosed on one of the repurchased loans and now holds an Other Real Estate Owned asset. The asset not yet repurchased, which must be repurchased by March 29, 2026, has a balance of $23.2 million, net of collateral posted. All repurchased and indemnified loans are delinquent and in non-accrual status.
---	---
●	We recorded a provision for credit losses of $1.8 million in the second quarter of 2025, primarily related to an updated loss reserve for a loan that previously defaulted, combined with a slight increase related to growth in the at-risk servicing portfolio.
---	---

4

​

Second quarter 2025 Earnings Release

​

SECOND QUARTER 2025

FINANCIAL RESULTS BY SEGMENT

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

●	Interest expense on corporate debt, which pays a variable interest rate, decreased $1.1 million, or 6% year over year, primarily due to a decrease in short-term interest rates, partially offset by an increase in the balance of corporate debt outstanding due to our refinancing our debt in the first quarter of 2025. Our corporate debt carries a floating rate of interest tied to one-month Secured Overnight Financing Rate (“SOFR”) that resets monthly and changes in that index rate directly impact our cost of borrowing.
●	Income tax expense increased $4.5 million, or 57% year over year, driven by a 64% increase in income from operations and a $0.1 million shortfall in excess tax benefits in Q2 2025 compared to a $0.4 million benefit in Q2 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the quarter. Absent the $0.5 million difference in excess tax benefits year over year, income tax expense would have increased 49%. Partially offsetting the increase due to income from operations was a reduction in losses from noncontrolling interests year over year. Losses from noncontrolling interest increase operating income upon which tax expense is calculated.
---	---
​	​	​	​	​	​	​	​	​	​	​	​	​
---	---	---	---	---	---	---	---	---	---	---	---	---
FINANCIAL RESULTS - CAPITAL MARKETS
(in thousands)		​	Q2 2025		​	Q2 2024		​	$ Variance	​	% Variance
Origination fees	​	$	93,764	​	$	63,841	​	$	29,923	​	47	%
MSR income	​	​	53,153	​	​	33,349	​	​	19,804	​	59	​
Property sales broker fees	​	​	14,964	​	​	11,265	​	​	3,699	​	33	​
Net warehouse interest income (expense), loans held for sale ("LHFS")	​		(1,760)	​		(1,950)	​		190	​	(10)	​
Other revenues	​		12,670	​		11,665	​		1,005	​	9	​
Total revenues	​	$	172,791	​	$	118,170	​	$	54,621	​	46	%
Personnel	​	$	116,441	​	$	92,480	​	$	23,961	​	26	%
Amortization and depreciation	​		1,146	​		1,138	​		8	​	1	​
Interest expense on corporate debt	​	​	4,468	​	​	5,299	​	​	(831)	​	(16)	​
Other operating expenses	​		5,309	​		4,642	​		667	​	14	​
Total expenses	​	$	127,364	​	$	103,559	​	$	23,805	​	23	%
Income (loss) from operations	​	$	45,427	​	$	14,611	​	$	30,816	​	211	%
Income tax expense (benefit)	​		12,285	​		3,359	​		8,926	​	266	​
Net income (loss) before noncontrolling interests	​	$	33,142	​	$	11,252	​	$	21,890	​	195	%
Less: net income (loss) from noncontrolling interests	​	​	—	​	​	213	​	​	(213)	​	(100)	​
Walker & Dunlop net income (loss)	​	$	33,142	​	$	11,039	​	$	22,103	​	200	%
Key revenue metrics (as a % of debt financing volume):	​	​	​	​	​	​	​	​	​	​	​	​
Origination fee rate ^(1)^	​	​	0.82	%	​	0.95	%	​	​	​	​	​
Agency MSR rate ^(2)^	​	​	1.03	​	​	1.17	​	​	​	​	​	​
Key performance metrics:	​	​	​	​	​	​	​	​	​	​	​	​
Operating margin	​	​	26	%	​	12	%	​	​	​	​	​
Adjusted EBITDA	​	$	1,323	​	$	(8,532)	​	$	9,855	​	(116)	%
Diluted EPS	​	$	0.97	​	$	0.33	​	$	0.64	​	194	%

---

(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.
---	---

​

5

​

Second quarter 2025 Earnings Release

​

CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS :

The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.

​

●	The increase in origination fees was primarily the result of the increase in our overall debt financing volume, particularly the 81% increase in our Agency debt financing volume during the second quarter of 2025 (Agency debt financing volume has higher origination fees than our brokered volume), partially offset by a decline in the origination fee rate due to (i) the competitive environment in the multifamily debt financing market during the quarter and (ii) the aforementioned large Fannie Mae portfolio originated in the second quarter of 2025, with no comparable activity in the second quarter of 2024.
●	The increase in MSR income was largely a result of the increase in Agency debt financing volume year over year, partially offset by a decrease in the Agency MSR rate. The Agency MSR rate decreased due to a decline in the weighted-average servicing fee (“WASF”) on Fannie Mae originations and a decrease in the loan term. The WASF on our Fannie Mae loans declined due to (i) the aforementioned competitive environment and (ii) the aforementioned large Fannie Mae portfolio originated in the second quarter of 2025. The loan term has decreased as more of our borrowers are opting for five-year loan terms in light of the volatility and uncertainty surrounding long-term interest rates, and we expect this trend to continue.
---	---
●	Property sales broker fees increased year over year primarily due to the 51% increase in property sales volume, partially offset by a decline in the margin on the sales due to the competitive multifamily environment noted previously.
---	---
●	Personnel expense increased in the second quarter of 2025 primarily due to (i) an increase in variable compensation expenses, resulting from the growth in transaction volume year over year, (ii) salaries and benefits costs due largely to a 5% increase in average segment headcount, and (iii) an increase in severance expense resulting from the separation of several underperforming producers.
---	---
●	The increase in adjusted EBITDA was primarily due to increases in origination fees and property sales broker fees, primarily driven by the improvement in transaction volumes, partially offset by increased personnel expense.
---	---

6

​

Second quarter 2025 Earnings Release

​

​	​	​	​	​	​	​	​	​	​	​	​	​
FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT
(in thousands)		​	Q2 2025		​	Q2 2024		​	$ Variance	​	% Variance
Origination fees	​	$	545	​	$	1,493	​	$	(948)	​	(63)	%
Servicing fees	​	​	83,693	​	​	80,418	​	​	3,275	​	4	​
Investment management fees	​	​	7,577	​	​	14,822	​	​	(7,245)	​	(49)	​
Net warehouse interest income, loans held for investment	​	​	—	​	​	366	​	​	(366)	​	(100)	​
Placement fees and other interest income	​	​	32,651	​	​	37,170	​	​	(4,519)	​	(12)	​
Other revenues	​		16,269	​		13,963	​		2,306	​	17	​
Total revenues	​	$	140,735	​	$	148,232	​	$	(7,497)	​	(5)	%
Personnel	​	$	22,743	​	$	20,077	​	$	2,666	​	13	%
Amortization and depreciation	​		55,882	​		53,173	​		2,709	​	5	​
Provision (benefit) for credit losses	​	​	1,820	​	​	2,936	​	​	(1,116)	​	(38)	​
Interest expense on corporate debt	​	​	10,810	​	​	10,946	​	​	(136)	​	(1)	​
Other operating expenses	​		6,514	​		6,728	​		(214)	​	(3)	​
Total expenses	​	$	97,769	​	$	93,860	​	$	3,909	​	4	%
Income (loss) from operations	​	$	42,966	​	$	54,372	​	$	(11,406)	​	(21)	%
Income tax expense (benefit)	​		5,428	​		16,521	​		(11,093)	​	(67)	​
Net income (loss) before noncontrolling interests	​	$	37,538	​	$	37,851	​	$	(313)	​	(1)	%
Less: net income (loss) from noncontrolling interests	​	​	(3)	​	​	(2,581)	​	​	2,578	​	(100)	​
Walker & Dunlop net income (loss)	​	$	37,541	​	$	40,432	​	$	(2,891)	​	(7)	%
Key performance metrics:	​	​	​	​	​	​	​	​	​	​	​	​
Operating margin	​	​	31	%	​	37	%	​	​	​	​	​
Adjusted EBITDA	​	$	111,931	​	$	124,502	​	$	(12,571)	​	(10)	%
Diluted EPS	​	$	1.10	​	$	1.19	​	$	(0.09)	​	(8)	%

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 $4.6 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
●	Investment management fees decreased primarily due to a reduction in the accrual for investment management fees from our LIHTC funds that are driven by asset dispositions within the funds, partially offset by an increase in revenues from our private credit investment management strategies. The reduction in the accrual for LIHTC investment management fees was due to fewer expected asset dispositions in 2025 than 2024 and a reduction in the expected collections for the year due to the challenging market dynamics in the LIHTC space.
---	---
●	Placement fees and other interest income decreased primarily due to a lower average placement fee rate driven by lower short-term interest rates year over year.
---	---
●	The increase in other revenues was primarily related to an increase in syndication fees earned from our LIHTC operations as we syndicated a large fund in 2025, resulting in a 45% increase in gross equity placed.
---	---
●	Personnel costs increased due to a combination of incremental increases in salaries and benefits, commissions, and bonus accruals.
---	---
●	The increase in amortization and depreciation was primarily driven by an increase in amortization of MSRs.
---	---
●	The decrease in adjusted EBITDA was primarily related to decreases in placement fees and other interest income and investment management fees.
---	---

7

​

Second quarter 2025 Earnings Release

​

​	​	​	​	​	​	​	​	​	​	​	​	​
FINANCIAL RESULTS - CORPORATE
(in thousands)		​	Q2 2025		​	Q2 2024		​	$ Variance	​	% Variance
Other interest income	​	$	3,335	​	$	3,870	​	$	(535)	​	(14)	%
Other revenues	​		2,379	​		404	​		1,975	​	489	​
Total revenues	​	$	5,714	​	$	4,274	​	$	1,440	​	34	%
Personnel	​	$	22,704	​	$	20,510	​	$	2,194	​	11	%
Amortization and depreciation	​		1,908	​		1,732	​		176	​	10	​
Interest expense on corporate debt	​	​	1,489	​	​	1,629	​	​	(140)	​	(9)	​
Other operating expenses	​		21,632	​		21,189	​		443	​	2	​
Total expenses	​	$	47,733	​	$	45,060	​	$	2,673	​	6	%
Income (loss) from operations	​	$	(42,019)	​	$	(40,786)	​	$	(1,233)	​	3	%
Income tax expense (benefit)	​		(5,288)	​		(11,978)	​		6,690	​	(56)	​
Walker & Dunlop net income (loss)	​	$	(36,731)	​	$	(28,808)	​	$	(7,923)	​	28	%
Key performance metric:	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDA	​	$	(36,443)	​	$	(35,039)	​	$	(1,404)	​	4	%
Diluted EPS	​	$	(1.08)	​	$	(0.85)	​	$	(0.23)	​	27	%

CORPORATE – DISCUSSION OF QUARTERLY RESULTS :

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

​

●	The increase in total revenues was primarily driven by (i) interest income on invested capital outstanding during the quarter, with no comparable activity in the prior year, and (ii) an increase in income from our deferred compensation plan that drives an equal and offsetting increase in personnel expense.
●	The rise in personnel costs was driven by higher salaries and benefits associated with an 8% increase in the average segment headcount and the aforementioned increase in expense from our deferred compensation plan, partially offset by a year-over-year decline in our subjective bonus compensation accrual.
---	---

8

​

Second quarter 2025 Earnings Release

​

YEAR-TO-DATE 2025

CONSOLIDATED OPERATING RESULTS

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

●	Interest expense on corporate debt decreased $3.3 million, or 9%, from the first half of 2024, primarily due to a decrease in interest rates year over year, as our term loan carries a floating interest rate tied to one-month SOFR. Additionally, in the first quarter of 2025, we refinanced our corporate debt, increasing the debt balance outstanding and resulting in the write off of $4.2 million of unamortized debt issuance costs. The impact of this write-off is included in other operating expenses and allocated to each of the segments proportionally in the same manner as corporate debt expense.
●	Income tax expense increased $4.2 million, or 39%, from the first half of 2024, primarily as a result of the 23% increase in income from operations and a $1.4 million shortfall in realizable excess tax benefits in the first half of 2025 compared to a $1.0 million benefit last year. The shortfall resulted from the difference between the grant date and vesting date fair values of share-based awards. Absent the $2.4 million difference in excess tax benefits year over year, income tax expense would have increased 15%. Partially offsetting the increase due to income from operations was a reduction in losses from noncontrolling interests year over year. Losses from noncontrolling interest increase operating income upon which tax expense is calculated.
---	---
​	​	​	​	​	​	​	​	​	​	​	​
---	---	---	---	---	---	---	---	---	---	---	---
OPERATING RESULTS AND KEY PERFORMANCE METRICS
(in thousands)	​	​	YTD Q2 2025	​	​	YTD Q2 2024	​	Variance	​	% Variance
Debt financing volume	​	$	16,834,867	​	$	12,145,026	​		​	39	%
Property sales volume	​	​	4,152,875	​	​	2,697,934	​	​	​	54	​
Total transaction volume	​	$	20,987,742	​	$	14,842,960	​		​	41	%
Total revenues	​	​	556,607	​	​	498,735	​	​	​	12	​
Total expenses	​	​	504,989	​	​	456,859	​	​	​	11	​
Walker & Dunlop net income	​	$	36,706	​	$	34,529	​		​	6	%
Adjusted EBITDA	​	​	141,777	​	​	155,067	​	​	​	(9)	​
Diluted EPS	​	$	1.07	​	$	1.02	​		​	5	%
Adjusted core EPS	​	$	2.00	​	$	2.39	​		​	(16)	%
Operating margin	​	​	9	%	​	8	%	​	​	​	​
Return on equity	​	​	4	​	​	4	​	​	​	​	​

All values are in US Dollars.

DISCUSSION OF YEAR-TO-DATE-RESULTS:

●	The increase in total transaction volume was primarily driven by a 61% increase in Agency debt financing volume, a 24% increase in brokered debt financing volume, and a 54% increase in property sales volume year over year.
●	The growth in Walker & Dunlop’s net income and diluted EPS were principally attributable to a 23% increase in income from operations, driven by higher origination fees and MSR income associated with increased transaction volume, partially offset by increased compensation costs due to higher average headcount and commissions on transactions. This growth was partially offset by the year-over-year increase in our effective tax rate, as discussed above.
---	---
●	Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and investment management fees, coupled with an increase in personnel expense. These changes were partially offset by increases in origination fees, property sales broker fees, and servicing fees.
---	---
●	Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased.
---	---

9

​

Second quarter 2025 Earnings Release

​

YEAR-TO-DATE 2025

FINANCIAL RESULTS BY SEGMENT

​	​	​	​	​	​	​	​	​	​	​	​	​
FINANCIAL RESULTS - CAPITAL MARKETS
(in thousands)	​	​	YTD Q2 2025		​	YTD Q2 2024	​	​	$ Variance	​	% Variance	​
Origination fees	​	$	139,061	​	$	107,541	​	$	31,520	​	29	%
MSR income	​	​	80,964	​	​	54,247	​	​	26,717	​	49	​
Property sales broker fees	​	​	28,485	​	​	20,086	​	​	8,399	​	42	​
Net warehouse interest income (expense), LHFS	​		(2,546)	​		(3,524)	​		978	​	(28)	​
Other revenues	​		29,397	​		21,717	​		7,680	​	35	​
Total revenues	​	$	275,361	​	$	200,067	​	$	75,294	​	38	%
Personnel	​	$	202,907	​	$	171,667	​	$	31,240	​	18	%
Amortization and depreciation	​		2,287	​		2,275	​		12	​	1	​
Interest expense on corporate debt	​	​	8,655	​		10,150	​	​	(1,495)	​	(15)	​
Other operating expenses	​		11,544	​		9,694	​		1,850	​	19	​
Total expenses	​	$	225,393	​	$	193,786	​	$	31,607	​	16	%
Income (loss) from operations	​	$	49,968	​	$	6,281	​	$	43,687	​	696	%
Income tax expense (benefit)	​		14,466	​		1,615	​		12,851	​	796	​
Net income (loss) before noncontrolling interests	​	$	35,502	​	$	4,666	​	$	30,836	​	661	%
Less: net income (loss) from noncontrolling interests	​	​	—	​	​	327	​	​	(327)	​	(100)	​
Walker & Dunlop net income (loss)	​	$	35,502	​	$	4,339	​	$	31,163	​	718	%
Key revenue metrics (as a % of debt financing volume):	​	​	​	​	​	​	​	​	​	​	​	​
Origination fee rate	​	​	0.84	%	​	0.90	%	​	​	​	​	​
Agency MSR rate	​	​	1.06	​	​	1.14	​	​	​	​	​	​
Key performance metrics:	​	​	​	​	​	​	​	​	​	​	​	​
Operating margin	​	​	18	%	​	3	%	​	​	​	​	​
Adjusted EBITDA	​	$	(12,004)	​	$	(27,829)	​	$	15,825	​	(57)	%
Diluted EPS	​	$	1.04	​	$	0.13	​	$	0.91	​	700	%

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

●	The increase in origination fees was primarily the result of the 39% increase in our debt financing volume. Origination fees did not grow on pace with transaction volumes because of a tightening in our origination fee rate from 90 basis points in 2024 to 84 basis points in 2025 that was driven by the aforementioned large Fannie Mae transaction originated in the second quarter of 2025 and the competitive environment in the multifamily debt financing market.
●	The increase in MSR income is primarily attributable to a 92% increase in Fannie Mae debt financing volume, partially offset by a decline in the Agency MSR rate. The Agency MSR rate declined primarily as a result of the aforementioned large Fannie Mae transaction.
---	---
●	Property sales broker fees increased year over year primarily due to the 54% increase in property sales volume, partially offset by a decline in the margin on the sales due to the competitive multifamily environment noted previously.
---	---
●	The increase in other revenues was primarily related to increases in investment banking revenues and appraisal revenues year over year. The increase in investment banking revenues was primarily driven by increased M&A activity in the first half of 2025 compared to 2024. Appraisal revenues increased due to increased market activity year over year.
---	---
●	Personnel expense increased primarily due to increases in (i) commission costs resulting from growth in transaction volume, (ii) salaries and benefits, largely related to a 4% increase in average segment headcount, and (iii) increased severance expense, primarily resulting from the separation of several underperforming producers. Partially offsetting these increases was a decrease in stock-based compensation.
---	---
●	The increase in adjusted EBITDA was primarily due to increases in origination fees, property sales broker fees, and other revenues, partially offset by increased personnel expense.
---	---

10

​

Second quarter 2025 Earnings Release

​

​	​	​	​	​	​	​	​	​	​	​	​	​
FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT
(in thousands)	​	​	YTD Q2 2025		​	YTD Q2 2024	​	​	$ Variance	​	% Variance	​
Origination fees	​	$	1,629	​	$	1,533	​	$	96	​	6	%
Servicing fees	​	​	165,914	​	​	160,461	​	​	5,453	​	3	​
Investment management fees	​	​	17,259	​	​	28,342	​	​	(11,083)	​	(39)	​
Net warehouse interest income, LHFI	​	​	—	​	​	824	​	​	(824)	​	(100)	​
Placement fees and other interest income	​	​	62,273	​	​	72,773	​	​	(10,500)	​	(14)	​
Other revenues	​		25,563	​		25,534	​		29	​	0	​
Total revenues	​	$	272,638	​	$	289,467	​	$	(16,829)	​	(6)	%
Personnel	​	$	42,289	​	$	38,132	​	$	4,157	​	11	%
Amortization and depreciation	​		110,380	​		106,244	​		4,136	​	4	​
Provision (benefit) for credit losses	​	​	5,532	​	​	3,460	​	​	2,072	​	60	​
Interest expense on corporate debt	​	​	20,741	​	​	22,137	​	​	(1,396)	​	(6)	​
Other operating expenses	​		13,982	​		11,851	​		2,131	​	18	​
Total expenses	​	$	192,924	​	$	181,824	​	$	11,100	​	6	%
Income (loss) from operations	​	$	79,714	​	$	107,643	​	$	(27,929)	​	(26)	%
Income tax expense (benefit)	​		23,079	​		27,674	​		(4,595)	​	(17)	​
Net income (loss) before noncontrolling interests	​	$	56,635	​	$	79,969	​	$	(23,334)	​	(29)	%
Less: net income (loss) from noncontrolling interests	​	​	(32)	​	​	(3,746)	​	​	3,714	​	(99)	​
Walker & Dunlop net income (loss)	​	$	56,667	​	$	83,715	​	$	(27,048)	​	(32)	%
Key performance metrics:	​	​	​	​	​	​	​	​	​	​	​	​
Operating margin	​	​	29	%	​	37	%	​	​	​	​	​
Adjusted EBITDA	​	$	219,833	​	$	244,159	​	$	(24,326)	​	(10)	%
Diluted EPS	​	$	1.65	​	$	2.47	​	$	(0.82)	​	(33)	%

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

●	The $4.6 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
●	Investment management fees decreased primarily as a result of a decline in revenue from our LIHTC funds that are driven by asset dispositions within the funds due to fewer expected dispositions in 2025 than 2024, and a reduction in the expected collections for the full year due to the challenging market dynamics in the LIHTC space.
---	---
●	Placement fees and other interest income decreased largely as a result of lower average placement fees earned on escrow deposits due to lower short-term interest rates.
---	---
●	The increase in personnel expense was primarily driven by increases in salaries and benefits, primarily resulting from a 7% increase in average segment headcount year over year, and several smaller increases in variable compensation such as severance expense, production bonuses, and company bonuses.
---	---
●	Amortization and depreciation expense increased primarily as a result of an increase in the amortization of MSRs.
---	---
●	The decrease in adjusted EBITDA was primarily related to decreases in placement fees and other interest income and investment management fees.
---	---

11

​

Second quarter 2025 Earnings Release

​

​	​	​	​	​	​	​	​	​	​	​	​	​
FINANCIAL RESULTS - CORPORATE
(in thousands)	​	​	YTD Q2 2025		​	YTD Q2 2024	​	​	$ Variance	​	% Variance	​
Other interest income	​	$	6,924	​	$	7,669	​	$	(745)	​	(10)	%
Other revenues	​		1,684	​		1,532	​		152	​	10	​
Total revenues	​	$	8,608	​	$	9,201	​	$	(593)	​	(6)	%
Personnel	​	$	38,082	​	$	34,731	​	$	3,351	​	10	%
Amortization and depreciation	​		3,890	​		3,415	​		475	​	14	​
Interest expense on corporate debt	​	​	2,885	​	​	3,246	​	​	(361)	​	(11)	​
Other operating expenses	​		41,815	​		39,857	​		1,958	​	5	​
Total expenses	​	$	86,672	​	$	81,249	​	$	5,423	​	7	%
Income (loss) from operations	​	$	(78,064)	​	$	(72,048)	​	$	(6,016)	​	8	%
Income tax expense (benefit)	​		(22,601)	​		(18,523)	​		(4,078)	​	22	​
Walker & Dunlop net income (loss)	​	$	(55,463)	​	$	(53,525)	​	$	(1,938)	​	4	%
Key performance metric:	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted EBITDA	​	$	(66,052)	​	$	(61,263)	​	$	(4,789)	​	8	%
Diluted EPS	​	$	(1.62)	​	$	(1.58)	​	$	(0.04)	​	3	%

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

●	The increase in personnel expense was primarily due to an increase in salaries and benefits, driven by an 7% increase in our average segment headcount year over year, partially offset by a decrease in our subjective bonus accrual.

12

​

Second quarter 2025 Earnings Release

​

CAPITAL SOURCES AND USES

On August 6, 2025, the Company’s Board of Directors declared a dividend of $0.67 per share for the third quarter of 2025. The dividend will be paid on September 5, 2025, to all holders of record of the Company’s restricted and unrestricted common stock as of August 21, 2025.

​

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

.

​

CONFERENCE CALL INFOR MATION

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, August 7, 2025, at 8:30 a.m. EST
Phone:	(888) 394-8218 **** from within the United States; (773) 305-6853 from outside the United States
Confirmation Code:	1660785
Webcast Link:	https://event.webcasts.com/starthere.jsp?ei=1703886&tp_key=534299e204<br><br>​

ABOUT WALKER & DUNLOP

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

​

NON-GAAP FINANCIAL MEASURES

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

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

13

​

Second quarter 2025 Earnings Release

​

our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.

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

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

​

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

FORWARD-LOOKING STATEMENTS

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

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

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, and (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations.

For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.

CONTACT US

​	​	​
Headquarters:<br><br>7272 Wisconsin Avenue, Suite 1300<br><br>Bethesda, Maryland 20814<br><br>Phone 301.215.5500<br><br>info@walkeranddunlop.com	Investors:<br><br>Kelsey Duffey<br><br>Senior Vice President, Investor Relations<br><br>Phone 301.202.3207<br><br>investorrelations@walkeranddunlop.com	Media:<br><br>Carol McNerney<br><br>Chief Marketing Officer<br><br>Phone 301.215.5515<br><br>info@walkeranddunlop.com

​

14

​

Second quarter 2025 Earnings Release

​

Walker & Dunlop, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	June 30,			March 31,			December 31,			September 30,			June 30,
(in thousands)	2025		​	2025		​	2024		​	2024		​	2024
Assets	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	$	233,712	​	$	180,971	​	$	279,270	​	$	179,759	​	$	208,095
Restricted cash		41,090	​		32,268	​		25,156	​		39,827	​		35,460
Pledged securities, at fair value		218,435	​		214,374	​		206,904	​		203,945	​		197,936
Loans held for sale, at fair value		1,177,837	​		946,372	​		780,749	​		1,024,984	​		814,883
Mortgage servicing rights		817,814	​		825,761	​		852,399	​		836,896	​		850,831
Goodwill	​	868,710	​	​	868,710	​	​	868,710	​	​	901,710	​	​	901,710
Other intangible assets		149,385	​		153,139	​		156,893	​		170,713	​		174,467
Receivables, net		360,646	​		372,689	​		335,879	​		307,407	​		272,827
Committed investments in tax credit equity	​	194,479	​	​	337,510	​	​	313,230	​	​	333,713	​	​	151,674
Other assets		612,932	​		580,084	​		562,803	​		580,277	​		567,515
Total assets	$	4,675,040	​	$	4,511,878	​	$	4,381,993	​	$	4,579,231	​	$	4,175,398
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Warehouse notes payable	$	1,157,234	​	$	931,002	​	$	781,706	​	$	1,019,850	​	$	810,114
Notes payable		828,657	​		825,556	​		768,044	​		769,376	​		770,707
Allowance for risk-sharing obligations		33,191	​		31,871	​		28,159	​		29,859	​		30,477
Commitments to fund investments in tax credit equity	​	168,863	​	​	295,052	​	​	274,975	​	​	289,250	​	​	134,493
Other liabilities	​	725,297	​	​	684,308	​	​	769,246	​	​	724,543	​	​	695,813
Total liabilities	$	2,913,242	​	$	2,767,789	​	$	2,622,130	​	$	2,832,878	​	$	2,441,604
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockholders' Equity	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common stock	$	333	​	$	333	​	$	332	​	$	332	​	$	331
Additional paid-in capital		438,129	​		432,788	​		429,000	​		412,570	​		407,426
Accumulated other comprehensive income (loss)	​	2,764	​	​	1,295	​	​	586	​	​	1,466	​	​	415
Retained earnings		1,308,792	​		1,297,764	​		1,317,945	​		1,295,459	​		1,288,728
Total stockholders’ equity	$	1,750,018	​	$	1,732,180	​	$	1,747,863	​	$	1,709,827	​	$	1,696,900
Noncontrolling interests		11,780	​		11,909	​		12,000	​		36,526	​		36,894
Total equity	$	1,761,798	​	$	1,744,089	​	$	1,759,863	​	$	1,746,353	​	$	1,733,794
Commitments and contingencies		—	​		—	​		—	​		—	​		—
Total liabilities and stockholders' equity	$	4,675,040	​	$	4,511,878	​	$	4,381,993	​	$	4,579,231	​	$	4,175,398

​

15

​

Second quarter 2025 Earnings Release

​

Walker & Dunlop, Inc. and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarterly Trends														​	Six months ended
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	June 30,
(in thousands, except per share amounts)	Q2 2025		​	Q1 2025		​	Q4 2024		​	Q3 2024		​	Q2 2024		​	2025		​	2024
Revenues	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Origination fees	$	94,309	​	$	46,381	​	$	93,942	​	$	73,546	​	$	65,334	​	$	140,690	​	$	109,074
MSR income	​	53,153	​	​	27,811	​	​	55,920	​	​	43,426	​	​	33,349	​	​	80,964	​	​	54,247
Servicing fees		83,693	​		82,221	​		82,961	​		82,222	​		80,418	​		165,914	​		160,461
Property sales broker fees	​	14,964	​	​	13,521	​	​	21,175	​	​	19,322	​	​	11,265	​	​	28,485	​	​	20,086
Investment management fees	​	7,577	​	​	9,682	​	​	(3,110)	​	​	11,744	​	​	14,822	​	​	17,259	​	​	28,342
Net warehouse interest income (expense)		(1,760)	​		(786)	​		(2,186)	​		(2,147)	​		(1,584)	​		(2,546)	​		(2,700)
Placement fees and other interest income		35,986	​		33,211	​		43,962	​		43,557	​		41,040	​		69,197	​		80,442
Other revenues		31,318	​		25,326	​		48,787	​		20,634	​		26,032	​		56,644	​		48,783
Total revenues	$	319,240	​	$	237,367	​	$	341,451	​	$	292,304	​	$	270,676	​	$	556,607	​	$	498,735
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Personnel	$	161,888	​	$	121,390	​	$	169,178	​	$	145,538	​	$	133,067	​	$	283,278	​	$	244,530
Amortization and depreciation		58,936	​		57,621	​		68,054	​		57,561	​		56,043	​		116,557	​		111,934
Provision (benefit) for credit losses		1,820	​		3,712	​		4,529	​		2,850	​		2,936	​		5,532	​		3,460
Interest expense on corporate debt		16,767	​		15,514	​		15,921	​		18,232	​		17,874	​		32,281	​		35,533
Goodwill impairment	​	—	​	​	—	​	​	33,000	​	​	—	​	​	—	​	​	—	​	​	—
Fair value adjustments to contingent consideration liabilities	​	—	​	​	—	​	​	(48,955)	​	​	(1,366)	​	​	—	​	​	—	​	​	—
Other operating expenses		33,455	​		33,886	​		47,604	​		31,984	​		32,559	​		67,341	​		61,402
Total expenses	$	272,866	​	$	232,123	​	$	289,331	​	$	254,799	​	$	242,479	​	$	504,989	​	$	456,859
Income from operations	$	46,374	​	$	5,244	​	$	52,120	​	$	37,505	​	$	28,197	​	$	51,618	​	$	41,876
Income tax expense		12,425	​		2,519	​		10,955	​		8,822	​		7,902	​		14,944	​		10,766
Net income before noncontrolling interests	$	33,949	​	$	2,725	​	$	41,165	​	$	28,683	​	$	20,295	​	$	36,674	​	$	31,110
Less: net income (loss) from noncontrolling interests		(3)	​		(29)	​		(3,671)	​		(119)	​		(2,368)	​		(32)	​		(3,419)
Walker & Dunlop net income	$	33,952	​	$	2,754	​	$	44,836	​	$	28,802	​	$	22,663	​	$	36,706	​	$	34,529
Other comprehensive income (loss), net of tax	​	1,469	​	​	709	​	​	(880)	​	​	1,051	​	​	907	​	​	2,178	​	​	894
Walker & Dunlop comprehensive income	$	35,421	​	$	3,463	​	$	43,956	​	$	29,853	​	$	23,570	​	$	38,884	​	$	35,423
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Effective Tax Rate	​	27%	​	​	48%	​	​	21%	​	​	24%	​	​	28%	​	​	29%	​	​	26%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic earnings per share	$	1.00	​	$	0.08	​	$	1.32	​	$	0.85	​	$	0.67	​	$	1.08	​	$	1.02
Diluted earnings per share	​	0.99	​	​	0.08	​	​	1.32	​	​	0.85	​	​	0.67	​	​	1.07	​	​	1.02
Cash dividends paid per common share	​	0.67	​	​	0.67	​	​	0.65	​	​	0.65	​	​	0.65	​	​	1.34	​	​	1.30
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic weighted-average shares outstanding		33,358	​		33,264	​		33,192	​		33,169	​		33,121	​		33,311	​		33,050
Diluted weighted-average shares outstanding		33,371	​		33,296	​		33,223	​		33,203	​		33,154	​		33,333	​		33,101

​

​

16

​

Second quarter 2025 Earnings Release

​

SUPPLEMENTAL OPERATING DATA

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarterly Trends														​	Six months ended					​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	June 30,					​
(in thousands, except per share data and unless otherwise noted)	Q2 2025		​	Q1 2025		​	Q4 2024		​	Q3 2024		​	Q2 2024		​	2025		​	2024		​
Transaction Volume:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Components of Debt Financing Volume						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Fannie Mae	$	3,114,308	​	$	1,511,794	​	$	3,225,633	​	$	2,001,356	​	$	1,510,804	​	$	4,626,102	​	$	2,414,172	​
Freddie Mac		1,752,597	​		808,247	​		1,553,495	​		1,545,939	​		1,153,190	​		2,560,844	​		2,128,116	​
Ginnie Mae - HUD		288,449	​		148,158	​		116,437	​		272,054	​		185,898	​		436,607	​		200,038	​
Brokered ^(1)^		6,335,071	​		2,552,943	​		4,893,643	​		4,028,208	​		3,852,851	​		8,888,014	​		7,171,925	​
Principal Lending and Investing ^(2)^		147,800	​		175,500	​		207,000	​		165,875	​		214,975	​		323,300	​		230,775	​
Total Debt Financing Volume	$	11,638,225	​	$	5,196,642	​	$	9,996,208	​	$	8,013,432	​	$	6,917,718	​	$	16,834,867	​	$	12,145,026	​
Property Sales Volume		2,313,585	​		1,839,290	​		3,450,614	​		3,602,675	​		1,530,783	​		4,152,875	​		2,697,934	​
Total Transaction Volume	$	13,951,810	​	$	7,035,932	​	$	13,446,822	​	$	11,616,107	​	$	8,448,501	​	$	20,987,742	​	$	14,842,960	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Key Performance Metrics:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating margin	​	15	%	​	2	%	​	15	%	​	13	%	​	10	%	​	9	%	​	8	%
Return on equity	​	8	​	​	1	​	​	10	​	​	7	​	​	5	​	​	4	​	​	4	​
Walker & Dunlop net income	$	33,952	​	$	2,754	​	$	44,836	​	$	28,802	​	$	22,663	​	$	36,706	​	$	34,529	​
Adjusted EBITDA ^(3)^	​	76,811	​	​	64,966	​	​	94,577	​	​	78,905	​	​	80,931	​	​	141,777	​	​	155,067	​
Diluted EPS	​	0.99	​	​	0.08	​	​	1.32	​	​	0.85	​	​	0.67	​	​	1.07	​	​	1.02	​
Adjusted core EPS ^(4)^	​	1.15	​	​	0.85	​	​	1.34	​	​	1.19	​	​	1.23	​	​	2.00	​	​	2.39	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Key Expense Metrics (as a percentage of total revenues):						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Personnel expense	​	51	%	​	51	%	​	50	%	​	50	%	​	49	%	​	51	%	​	49	%
Other operating expenses	​	10	​	​	14	​	​	14	​	​	11	​	​	12	​	​	12	​	​	12	​
Key Revenue Metrics (as a percentage of debt financing volume):						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Origination fee rate ^(5)^	​	0.82	%	​	0.90	%	​	0.94	%	​	0.93	%	​	0.95	%	​	0.84	%	​	0.90	%
Agency MSR rate ^(6)^	​	1.03	​	​	1.13	​	​	1.14	​	​	1.14	​	​	1.17	​	​	1.06	​	​	1.14	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Other Data:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market capitalization at period end	$	2,395,939	​	$	2,901,726	​	$	3,282,018	​	$	3,834,715	​	$	3,311,629	​	​	​	​	​	​	​
Closing share price at period end	$	70.48	​	$	85.36	​	$	97.21	​	$	113.59	​	$	98.20	​	​	​	​	​	​	​
Average headcount	​	1,400	​	​	1,394	​	​	1,391	​	​	1,356	​	​	1,321	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Components of Servicing Portfolio (end of period):						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Fannie Mae	$	70,042,909	​	$	69,176,839	​	$	68,196,744	​	$	66,068,212	​	$	64,954,426	​	​	​	​	​	​	​
Freddie Mac		39,433,013	​		38,556,682	​		39,185,091	​		40,090,158	​		39,938,411	​	​	​	​	​	​	​
Ginnie Mae - HUD		11,008,314	​		10,882,857	​		10,847,265	​		10,727,323	​		10,619,764	​	​	​	​	​	​	​
Brokered ^(7)^		16,864,888	​		17,032,338	​		17,057,912	​		17,156,810	​		17,239,417	​	​	​	​	​	​	​
Principal Lending and Investing ^(8)^		—	​		—	​		—	​		38,043	​		25,893	​	​	​	​	​	​	​
Total Servicing Portfolio	$	137,349,124	​	$	135,648,716	​	$	135,287,012	​	$	134,080,546	​	$	132,777,911	​	​	​	​	​	​	​
Assets under management ^(9)^	​	18,623,451	​	​	18,518,413	​	​	18,423,463	​	​	18,210,452	​	​	17,566,666	​	​	​	​	​	​	​
Total Managed Portfolio	$	155,972,575	​	$	154,167,129	​	$	153,710,475	​	$	152,290,998	​	$	150,344,577	​	​	​	​	​	​	​
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Key Servicing Portfolio Metrics (end of period):						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Custodial escrow account deposits at period end (in billions)	$	2.7	​	$	2.4	​	$	2.7	​	$	3.1	​	$	2.7	​	​	​	​	​	​	​
Weighted-average servicing fee rate (basis points)	​	24.1	​	​	24.4	​	​	24.2	​	​	24.1	​	​	24.1	​	​	​	​	​	​	​
Weighted-average remaining servicing portfolio term (years)	​	7.4	​	​	7.5	​	​	7.7	​	​	7.7	​	​	7.9	​	​	​	​	​	​	​

---

(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)	Consists of interim loans not managed for our interim loan joint venture.
---	---
(9)	WDAE assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.
---	---

17

​

Second quarter 2025 Earnings Release

​

KEY CREDIT METRICS

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2025		​	2025		​	2024		​	2024		​	2024		​
Risk-sharing servicing portfolio:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Fannie Mae Full Risk	$	61,486,070	​	$	60,493,946	​	$	59,304,888	​	$	57,032,839	​	$	55,915,670	​
Fannie Mae Modified Risk		8,556,839	​		8,682,893	​		8,891,856	​		9,035,373	​		9,038,756	​
Freddie Mac Modified Risk		10,000	​		15,000	​		15,000	​		69,400	​		69,510	​
Total risk-sharing servicing portfolio	$	70,052,909	​	$	69,191,839	​	$	68,211,744	​	$	66,137,612	​	$	65,023,936	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Non-risk-sharing servicing portfolio:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Fannie Mae No Risk	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​
Freddie Mac No Risk		39,423,013	​		38,541,682	​		39,170,091	​		40,020,758	​		39,868,901	​
GNMA - HUD No Risk		11,008,314	​		10,882,857	​		10,847,265	​		10,727,323	​		10,619,764	​
Brokered		16,864,888	​		17,032,338	​		17,057,912	​		17,156,810	​		17,239,417	​
Total non-risk-sharing servicing portfolio	$	67,296,215	​	$	66,456,877	​	$	67,075,268	​	$	67,904,891	​	$	67,728,082	​
Total loans serviced for others	$	137,349,124	​	$	135,648,716	​	$	135,287,012	​	$	134,042,503	​	$	132,752,018	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Loans held for investment (full risk)	$	36,926	​	$	36,926	​	$	36,926	​	$	38,043	​	$	25,893	​
Interim Loan Joint Venture Managed Loans ^(1)^	​	76,215	​	​	173,315	​	​	173,315	​	​	424,774	​	​	570,299	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
At-risk servicing portfolio ^(2)^	$	65,378,944	​	$	64,450,319	​	$	63,365,672	​	$	61,237,535	​	$	60,122,274	​
Maximum exposure to at-risk portfolio ^(3)^		13,382,410	​		13,200,846	​		12,893,593	​		12,454,158	​		12,222,290	​
Defaulted loans^(4)^	​	108,530	​	​	108,530	​	​	41,737	​	​	59,645	​	​	48,560	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Defaulted loans as a percentage of the at-risk portfolio		0.17	%		0.17	%		0.07	%		0.10	%		0.08	%
Allowance for risk-sharing as a percentage of the at-risk portfolio	​	0.05	​	​	0.05	​	​	0.04	​	​	0.05	​	​	0.05	​
Allowance for risk-sharing as a percentage of maximum exposure	​	0.25	​	​	0.24	​	​	0.22	​	​	0.24	​	​	0.25	​

​

---

(1)	This balance consists entirely of interim loan joint venture managed loans. We indirectly share in a portion of the risk of loss associated with interim loan joint venture managed loans through our 15% equity ownership in the joint venture. We had no exposure to risk of loss for the loans serviced directly for our interim loan joint venture partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table.
(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.
---	---

​

​

18

​

Second quarter 2025 Earnings Release

​

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarterly Trends														​	Six months ended					​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	June 30,					​
(in thousands)	Q2 2025		​	Q1 2025		​	Q4 2024		​	Q3 2024		​	Q2 2024		​	2025		​	2024		​
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA						​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Walker & Dunlop Net Income	$	33,952	​	$	2,754	​	$	44,836	​	$	28,802	​	$	22,663	​	$	36,706	​	$	34,529	​
Income tax expense		12,425	​		2,519	​		10,955	​		8,822	​		7,902	​		14,944	​		10,766	​
Interest expense on corporate debt		16,767	​		15,514	​		15,921	​		18,232	​		17,874	​		32,281	​		35,533	​
Amortization and depreciation		58,936	​		57,621	​		68,054	​		57,561	​		56,043	​		116,557	​		111,934	​
Provision (benefit) for credit losses	​	1,820	​	​	3,712	​	​	4,529	​	​	2,850	​	​	2,936	​	​	5,532	​	​	3,460	​
Net write-offs	​	—	​	​	—	​	​	—	​	​	(468)	​	​	—	​	​	—	​	​	—	​
Stock-based compensation expense	​	6,064	​	​	6,442	​	​	7,702	​	​	6,532	​	​	6,862	​	​	12,506	​	​	13,092	​
MSR income	​	(53,153)	​	​	(27,811)	​	​	(55,920)	​	​	(43,426)	​	​	(33,349)	​	​	(80,964)	​	​	(54,247)	​
Write-off of unamortized issuance costs from corporate debt paydown	​	—	​	​	4,215	​	​	—	​	​	—	​	​	—	​	​	4,215	​	​	—	​
Goodwill impairment, net of contingent consideration liability fair value adjustments^(1)^	​	—	​	​	—	​	​	(1,500)	​	​	—	​	​	—	​	​	—	​	​	—	​
Adjusted EBITDA	$	76,811	​	$	64,966	​	$	94,577	​	$	78,905	​	$	80,931	​	$	141,777	​	$	155,067	​

​

---

(1)	For the three months ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million.

​

​

19

​

Second quarter 2025 Earnings Release

​

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​
​	Capital Markets
​	Three months ended June 30,					​	​	Six months ended June 30,
(in thousands)	2025		​	2024		​	2025		​	2024
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA						​	​	​	​	​	​
Walker & Dunlop Net Income (Loss)	$	33,142	​	$	11,039	​	$	35,502	​	$	4,339
Income tax expense (benefit)	​	12,285	​	​	3,359	​	​	14,466	​	​	1,615
Interest expense on corporate debt		4,468	​	​	5,299	​		8,655	​	​	10,150
Amortization and depreciation	​	1,146	​	​	1,138	​	​	2,287	​	​	2,275
Stock-based compensation expense	​	3,435	​	​	3,982	​	​	6,786	​	​	8,039
MSR income		(53,153)	​		(33,349)	​		(80,964)	​		(54,247)
Write-off of unamortized issuance costs from corporate debt paydown	​	—	​	​	—	​	​	1,264	​	​	—
Adjusted EBITDA	$	1,323	​	$	(8,532)	​	$	(12,004)	​	$	(27,829)
​	​	​	​	​	​	​	​	​	​	​	​
​	Servicing & Asset Management
​	Three months ended June 30,					​	​	Six months ended June 30,
(in thousands)	2025		​	2024		​	2025		​	2024
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA						​	​	​	​	​	​
Walker & Dunlop Net Income (Loss)	$	37,541	​	$	40,432	​	$	56,667	​	$	83,715
Income tax expense (benefit)	​	5,428	​	​	16,521	​	​	23,079	​	​	27,674
Interest expense on corporate debt	​	10,810	​	​	10,946	​	​	20,741	​	​	22,137
Amortization and depreciation	​	55,882	​	​	53,173	​	​	110,380	​	​	106,244
Provision (benefit) for credit losses	​	1,820	​	​	2,936	​	​	5,532	​	​	3,460
Net write-offs	​	—	​	​	—	​	​	—	​	​	—
Stock-based compensation expense	​	450	​	​	494	​	​	905	​	​	929
Write-off of unamortized issuance costs from corporate debt paydown	​	—	​	​	—	​	​	2,529	​	​	—
Adjusted EBITDA	$	111,931	​	$	124,502	​	$	219,833	​	$	244,159
​	​	​	​	​	​	​	​	​	​	​	​
​	Corporate
​	Three months ended June 30,					​	​	Six months ended June 30,
(in thousands)	2025		​	2024		​	2025		​	2024
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA						​	​	​	​	​	​
Walker & Dunlop Net Income (Loss)	$	(36,731)	​	$	(28,808)	​	$	(55,463)	​	$	(53,525)
Income tax expense (benefit)	​	(5,288)	​	​	(11,978)	​	​	(22,601)	​	​	(18,523)
Interest expense on corporate debt		1,489	​	​	1,629	​		2,885	​	​	3,246
Amortization and depreciation	​	1,908	​	​	1,732	​	​	3,890	​	​	3,415
Stock-based compensation expense	​	2,179	​	​	2,386	​	​	4,815	​	​	4,124
Write-off of unamortized issuance costs from corporate debt paydown	​	—	​	​	—	​	​	422	​	​	—
Adjusted EBITDA	$	(36,443)	​	$	(35,039)	​	$	(66,052)	​	$	(61,263)
​	​	​	​	​	​	​	​	​	​	​	​

​

​
​

​

​

​

​

​

​

20

​

Second quarter 2025 Earnings Release

​

ADJUSTED CORE EPS RECONCILIATION

Unaudited

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Quarterly Trends														​	Six months ended
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	June 30,
(in thousands)	Q2 2025		​	Q1 2025		​	Q4 2024		​	Q3 2024		​	Q2 2024		​	2025		​	2024
Reconciliation of Walker & Dunlop Net Income to Adjusted Core Net Income	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Walker & Dunlop Net Income	$	33,952	​	$	2,754	​	$	44,836	​	$	28,802	​	$	22,663	​	$	36,706	​	$	34,529
Provision (benefit) for credit losses		1,820	​		3,712	​		4,529	​		2,850	​		2,936	​		5,532	​		3,460
Net write-offs	​	—	​	​	—	​	​	—	​	​	(468)	​	​	—	​	​	—	​	​	—
Amortization and depreciation		58,936	​		57,621	​		68,054	​		57,561	​		56,043	​		116,557	​		111,934
MSR income	​	(53,153)	​	​	(27,811)	​	​	(55,920)	​	​	(43,426)	​	​	(33,349)	​	​	(80,964)	​	​	(54,247)
Goodwill impairment	​	—	​	​	—	​	​	33,000	​	​	—	​	​	—	​	​	—	​	​	—
Contingent consideration accretion and fair value adjustments	​	41	​	​	40	​	​	(48,822)	​	​	(1,204)	​	​	822	​	​	81	​	​	1,334
Write-off of unamortized issuance costs from corporate debt paydown	​	—	​	​	4,215	​	​	—	​	​	—	​	​	—	​	​	4,215	​	​	—
Income tax expense adjustment^(1)^	​	(2,429)	​	​	(11,355)	​	​	(177)	​	​	(3,602)	​	​	(7,413)	​	​	(13,784)	​	​	(16,063)
Adjusted Core Net Income	$	39,167	​	$	29,176	​	$	45,500	​	$	40,513	​	$	41,702	​	$	68,343	​	$	80,947
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Reconciliation of Diluted EPS to Adjusted core EPS	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Walker & Dunlop Net Income	$	33,952	​	$	2,754	​	$	44,836	​	$	28,802	​	$	22,663	​	$	36,706	​	$	34,529
Diluted weighted-average shares outstanding	​	33,371	​	​	33,296	​	​	33,223	​	​	33,203	​	​	33,154	​	​	33,333	​	​	33,101
Diluted EPS	$	0.99	​	$	0.08	​	$	1.32	​	$	0.85	​	$	0.67	​	$	1.07	​	$	1.02
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted Core Net Income	$	39,167	​	$	29,176	​	$	45,500	​	$	40,513	​	$	41,702	​	$	68,343	​	$	80,947
Diluted weighted-average shares outstanding	​	33,371	​	​	33,296	​	​	33,223	​	​	33,203	​	​	33,154	​	​	33,333	​	​	33,101
Adjusted Core EPS	$	1.15	​	$	0.85	​	$	1.34	​	$	1.19	​	$	1.23	​	$	2.00	​	$	2.39

---

​
(1)<br><br>Income tax impact of the above adjustments to adjusted core net income. Uses quarterly or annual effective tax rate as disclosed in the Condensed Consolidated Statements of Income and Comprehensive Income in this press release. The effective rate is adjusted for the impacts of excess tax benefits and shortfalls.

​

21

​