Earnings release
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1 Walker & Dunlop Reports Third Quarter 2026 Financial Results BETHESDA, MD – NOVEMBER 5, 2026 – Walker & Dunlop, Inc. (NYSE: WD) (the “Company,” “Walker & Dunlop” or “W&D”) reported third quarter 2026 financial results. • Net loss of $3 7.3 million and diluted loss per share of $1.15 primarily reflect charges associated with the accelerated resolution of legacy loan repurchases and indemnifications. These charges reflect deliberate actions to accelerate the disposition of repurchased and indemnified assets related to the GSE investigations, which are now completed and are described in more detail below • Total revenues of $298. 4 million declined 12% from Q3’25, in line with the decrease in transaction volumes, and primarily reflecting a greater mix of brokered transactions relative to GSE lending. W&D’s year -to-date GSE market share increased 290 basis points, to 13.7%, from the prior-year period • Adjusted core EPS (1) was $0.92 and declined 25% compared to the prior year period due primarily to lower revenue and increased costs within the repurchased portfolio; these costs are expected to be eliminated by early 2027 • The servicing portfolio increased to $146.6 billion as of September 30, 2026, up 5% from the prior-year period, reinforcing the stability of W&D’s recurring revenue base, cash flow and the strength of its platform “Q3 2026 saw an 84 basis point increase in the Ten- Year Treasury rate which increased volatility and slowed down capital markets activity across the country. Despite these headwinds, our revenues remained resilient, with total debt financing volume down only 5% from Q3 2025," said Willy Walker, Chairman and CEO. "During the quarter we received notice from Fannie Mae that they have completed their fraud review of Walker & Dunlop, similar to Freddie Mac in Q2 2026, and we do not expect any further buybacks or indemnifications related to these investigations going forward. Importantly, we are taking action to address the legacy credit issue s associated with these matters and put them firmly behind us. We reclassified all of the repurchased assets and non -performing notes to "held for sale," recognized a significant charge to Q3 earnings, and intend to dispose of these assets by early 2027. W hile these actions have a meaningful near-term impact on earnings, they reflect our commitment to proactively resolving credit issues, reducing risk on our balance sheet, and strengthening our financial position for the future. We believe that the completi on of the GSE investigations and the sale of the repurchased loans, allows Walker & Dunlop to move beyond the borrower fraud issues that have consumed us, and our financial performance, for the past two years.” Walker continued, “We believe there is a tremendous opportunity ahead as commercial real estate owners navigate the upcoming wave of debt maturities and evaluate whether to refinance, sell, or recapitalize their properties. We have refined our strategy to focus on the multifamily market where W&D has a massive brand and there is nearly $1 trillion of maturing loans over the next four years. We are leveraging technology to improve productivity, strengthen client relationships, and reduce our fixed cost structure, and underwent a reduction in force and reorganization in Q3. While higher interest rates and lower asset values present significant challenges for property owners, as a scaled service provider with an enormous tangible addressable market in our company's core competency, we now have the ability to execute, grow, and get back to the outstanding shareholder returns Walker & Dunlop has been known for.” (1) 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.”
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Q3 2026 Earnings Release 2 TOTAL TRANSACTION VOLUME (dollars in millions) Q3 2026 Q3 2025 $ Change % Change Fannie Mae $ 1,282 $ 2,141 $ (859) (40) % Freddie Mac 1,354 3,664 (2,310) (63) Ginnie Mae - HUD 231 325 (94) (29) Brokered (1) 7,151 4,513 2,638 58 Principal Lending and Investing (2) 266 199 67 34 Debt financing volume $ 10,284 $ 10,842 $ (558) (5) % Property sales volume 3,494 4,673 (1,179) (25) Total transaction volume $ 13,778 $ 15,515 $ (1,737) (11) % (1) Brokered transactions for life insurance companies, commercial banks, and other capital sources. (2) Includes debt financing volumes from our interim lending platform and Walker & Dunlop Investment Partners, Inc. (“WDIP”) separate accounts. • Total debt financing volume declined 5%, as 58% growth in brokered debt volume was offset by declines in Agency lending volumes • W&D continues to grow our presence in the non-Agency multifamily market while simultaneously gaining 290 basis points of market share with the GSEs on a year-to-date basis • Property sales activity increased sequentially this quarter as activity increased despite market volatility, and while operating fundamentals are modestly improving, continued interest rate volatility delayed some investment decisions during the quarter FINANCIAL RESULTS - CAPITAL MARKETS ("CM") (in millions, unless otherwise noted) Q3 2026 Q3 2025 % Change Total revenues $ 148 $ 181 (18) % Total expenses 133 142 (7) Walker & Dunlop net income (loss) $ 11 $ 28 (59) % Key revenue metrics: Origination fee rate (1) 0.79 % 0.90 % Agency MSR rate (2) 1.02 0.79 The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders. For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.” (1) Loan origination and debt brokerage fees, net (“ Origination fees”) as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing. (2) Fair value of expected net cash flows from servicing, net of guaranty obligation (“MSR income”) as a percentage of Agency debt financing volume. • Revenues declined 18% compared to total transaction volume declines of 11% primarily due to a higher proportion of lower fee brokered transactions relative to GSE lending, resulting in lower origination fees and MSR income. While the GSE’s lending volumes declined 30% market wide this quarter, our platform diversification and expansion in the non-Agency multifamily market has strengthened our ability to serve clients across multiple financing channels, enabling us to capture more business opportunities, and enhance our competitiveness in a challenging market environment. • Net warehouse interest income improved to net income in the current quarter, reflecting the normalization of the yield curve • Other revenues for the segment improved, driven by growth in investment banking fees, appraisal and valuation services, and application fees
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Q3 2026 Earnings Release 3 MANAGED PORTFOLIO (dollars in millions, unless otherwise noted) Q3 2026 Q3 2025 $ Change % Change Fannie Mae $ 74,324 $ 71,006 $ 3,318 5 % Freddie Mac 45,976 40,474 5,502 14 Ginnie Mae - HUD 12,026 11,298 728 6 Brokered 14,231 16,554 (2,323) (14) Principal Lending and Investing 74 - 74 N/A Total Servicing Portfolio $ 146,631 $ 139,332 $ 7,299 5 % Assets under management 19,192 18,522 670 4 Total Managed Portfolio $ 165,823 $ 157,854 $ 7,969 5 % Weighted-average servicing fee rate at period end (basis points) 23.2 24.0 (0.8) (3) Weighted-average remaining servicing portfolio term at period end (years) 6.9 7.4 (0.5) (7) • Continued origination activity over the past year expanded the servicing portfolio to $146.6 billion, further strengthening the recurring revenue and cash flow that supports our long-term earnings growth. The portfolio also creates future opportunities to refinance, recapitalize and deepen client relationships as loans mature over time. • Agency production over the past 12 months was the main driver for the addition of more than $7 billion of net loans to the servicing portfolio. Approximately $16.9 billion of Agency loans are scheduled to mature over the next two years, providing a meaningful pipeline of client engagement opportunities to support future transaction activity. • The decline in brokered servicing was primarily driven by a large partner consolidating its servicing relationships for one of its funds during the second quarter of 2026. We continue to have a strong servicing relationship with that lender, and we retain exclusive servicing rights for a different fund. Growing our servicing portfolio remains a key component of our strategy. • Mortgage servicing rights (“MSRs”) continued to deliver significant long-term value. As of September 30, 2026, MSRs associated with our servicing portfolio are reported at an amortized cost of $775.5 million, while the fair value is estimated at $1.4 billion, reflecting the inherent value of the long-term contractual nature of these assets and the recurring servicing and ancillary revenues they generate. • Assets under management totaled $19.2 billion as of September 30, 2026, and consisted of $16.4 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, $1.9 billion of debt funds, and $0.8 billion of equity funds managed by our registered investment adviser, WDIP
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Q3 2026 Earnings Release 4 FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT ("SAM") (in millions) Q3 2026 Q3 2025 % Change Total revenues $ 148 $ 151 (2) % Total expenses 164 100 63 Walker & Dunlop net income (loss) $ (12) $ 37 (133) % The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders. For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.” • Segment results include $63 million of repurchase related charges, comprised of $56 million of non-cash valuation adjustments related to our decision to accelerate resolution of legacy loan repurchases and $7 million of operating expenses associated with the aggregate portfolio. We are taking deliberate action to more quickly dispose of these assets and eliminate ongoing carrying costs for this portfolio, mitigate future uncertainty around the path and timing of disposition, and increase the consistency and predictability of our financial performance. • The Servicing & Asset Management segment continues to benefit from the stable recurring servicing fees from the servicing portfolio • Servicing fees increased 3% year-over-year, however, total revenue declined 2% due primarily to lower placement fee earnings from escrow accounts as a result of a decrease in the Effective Federal Funds Rate this quarter compared to the year ago quarter • The underlying fundamentals of the segment remain strong, and continued execution from our Capital Markets business in the coming quarters should drive additional servicing portfolio expansion KEY CREDIT TRENDS (in millions, unless otherwise noted) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Defaulted loans (1) $ 255 $ 199 $ 167 $ 159 $ 139 Key credit metrics (as a % of the at-risk portfolio (1)): Defaulted loans 0.36 % 0.28 % 0.24 % 0.23 % 0.21 % Allowance for risk-sharing 0.09 0.07 0.06 0.05 0.05 Key credit metrics (as a % of maximum exposure (1)): Allowance for risk-sharing 0.44 % 0.34 % 0.27 % 0.27 % 0.25 % (1) Please refer to the section of this press release below titled “Key Credit Metrics.” • The at-risk servicing portfolio continues to demonstrate strong underlying credit performance with low default levels. Growth in the at-risk portfolio reflects continued Fannie Mae loan production over the past year, while our credit exposure remains concentrated in loans backed by multifamily assets. • Based on the latest property level financial information available, our at-risk portfolio operated at a weighted average debt service coverage ratio of 2x and the weighted average underwritten loan-to-value is approximately 61%. Less than 1% of our loans were below a 1.0 times debt service coverage ratio, and were underwritten above a 75% loan-to-value, reflecting the discipline of our underwriting process.
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Q3 2026 Earnings Release 5 FINANCIAL RESULTS - CORPORATE (in millions) Q3 2026 Q3 2025 % Change Total revenues $ 2 $ 6 (62) % Total expenses 49 49 0 Walker & Dunlop net income (loss) $ (36) $ (31) 16 % The table above excludes income tax expense (benefit). For detailed segment income, refer to the section of this press release below titled “Condensed Segments Statements of Income.” • The Corporate segment is structured to support continued scaling of our business. Revenues for the segment are down primarily due to lower earnings on co-invested capital in funds we manage. Unchanged corporate expenses this quarter reflect our disciplined cost management as the segment continues to support growth of our Capital Markets and Servicing & Asset Management businesses. INDEMNIFIED AND REPURCHASED LOANS Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2026 2025 2026 2025 Initial loan repurchase costs $ — $ — $ 1 $ — Indemnified and repurchased loan operating costs 7 4 14 5 Expected principal losses on loan repurchase ("loan repurchase losses") — — 9 — Fair value adjustments 56 — 56 — Indemnified and repurchased loan expenses, net $ 63 $ 4 $ 80 $ 5 Provision (benefit) for loan losses (1) $ (19) $ — $ (6) $ 1 Provision (benefit) for risk-sharing obligations (2) 8 — 14 — Other operating expenses (3) 4 — 6 — Other interest income (4) — — (2) — Total net expense impact of indemnified and repurchased loans $ 56 $ 4 $ 92 $ 6 (1) Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income. (2) Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income. Reflects the impact of the provision for risk-sharing obligations under our agreement with Fannie Mae to increase our loss sharing on $86.6 million of defaulted loans in lieu of repurchasing them. (3) Impairment charges related to an Other real estate owned (OREO) asset that was previously repurchased and included as a component of Other operating expenses in the Condensed Consolidated Statements of Income. (4) Included as a component of Placement fees and other interest income in the Condensed Consolidated Statements of Income. • During the third quarter, we exited $39.4 million of repurchased loans at prices that approximated our carrying values at the end of the second quarter 2026. These sales reduced total repurchased loans to $164.8 million as of September 30, 2026, down from $221.6 million as of December 31, 2025. • During the third quarter, we recognized $56 million of valuation adjustments for the remaining repurchased loan portfolio in connection with our decision to accelerate the disposition of the remaining assets. The carrying value of the repurchased portfolio is $76.9 million at September 30, 2026. We also incurred $7 million of ongoing operating expenses this quarter to operate the underlying assets. • The majority of these loans are concentrated in a small number of sponsors involved in the previously identified instances of borrower fraud. We have launched the marketing process for all non-performing repurchased loans and assets, and as of today approximately $25 million of the portfolio has already been placed under a letter of intent. We expect to fully exit the remaining assets in this portfolio by early next year, and any future fair value adjustments will be driven by the difference between the ultimate selling prices relative to our current estimates.
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Q3 2026 Earnings Release 6 CAPITAL SOURCES AND USES On November 4, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the fourth quarter of 2026. The dividend will be paid on December 4, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of November 20, 2026. 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 Stock Repurchase Program”). During the first quarter o f 2026, the Company repurchased 283 thousand shares under the 2026 Stock Repurchase Program at a weighted -average price of $47.13 per share and immediately retired the shares, reducing stockholders’ equity by $13.3 million. The Company did not repurchase any shares during the second or third quarters of 2026. As of September 30, 2026, the Company had $61.7 million of authorized share repurchase capacity remaining under the 2026 Stock Repurchase Program. Any repurchases made pursuant to the 2026 Stock 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, November 5, 2026, at 8:30 a.m. EST Phone: (800) 330-6710 from within the United States; (312) 471-1353 from outside the United States Confirmation Code: 1116356 Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1752018&tp_key=ac902a78b6 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 expe cted net cash flows from servicing, net of guaranty obligation, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment, loan repurchase losses 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 of guaranty obligation,
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Q3 2026 Earnings Release 7 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 finan cial 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 i nformation 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 Core EPS Reconciliation.” 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 chan ges 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 and any potential losses we may incur as a result, including in connection with our decision to accelerate our disposition and liquidation strategy for previously repurchased and indemnified loans and associated collateral. 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
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Q3 2026 Earnings Release 8 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: 7272 Wisconsin Avenue, Suite 1300 Bethesda, Maryland 20814 Phone 301.215.5500 info@walkeranddunlop.com Investors: Amy Hopkins SVP, Investor Relations Phone 443.873.5536 investorrelations@walkeranddunlop.com Media: Carol McNerney Chief Marketing Officer Phone 301.215.5515 info@walkeranddunlop.com
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Q3 2026 Earnings Release 9 Walker & Dunlop, Inc. and Subsidiaries Condensed Consolidated Balance Sheets Unaudited September 30, June 30, March 31, December 31, September 30, (in thousands) 2026 2026 2026 2025 2025 Assets Cash and cash equivalents $ 183,241 $ 160,858 $ 192,527 $ 299,315 $ 274,828 Restricted cash 22,889 25,782 34,419 22,772 44,462 Pledged securities, at fair value 239,350 234,525 228,646 224,954 221,730 Loans held for sale, at fair value 694,127 1,382,958 2,546,860 1,436,350 2,197,739 Mortgage servicing rights 775,540 793,351 795,754 808,145 805,975 Goodwill 868,710 868,710 868,710 868,710 868,710 Other intangible assets 130,615 134,369 138,123 141,877 145,631 Receivables, net 460,102 476,851 424,393 419,358 374,316 Committed investments in tax credit equity 226,879 170,671 265,368 241,401 257,564 Other assets 658,560 645,529 670,660 596,596 606,320 Total assets $ 4,260,013 $ 4,893,604 $ 6,165,460 $ 5,059,478 $ 5,797,275 Liabilities Warehouse notes payable $ 762,518 $ 1,384,282 $ 2,535,227 $ 1,420,272 $ 2,175,157 Corporate notes payable 804,609 820,948 825,816 829,218 829,909 Allowance for risk-sharing obligations 63,156 49,081 38,673 37,546 34,140 Commitments to fund investments in tax credit equity 221,474 174,093 256,121 219,949 223,788 Other liabilities 741,369 744,448 775,837 806,631 756,815 Total liabilities $ 2,593,126 $ 3,172,852 $ 4,431,674 $ 3,313,616 $ 4,019,809 Temporary Equity Profit interests of a wholly owned subsidiary subject to possible redemption $ 1,784 $ 909 $ 752 $ (1,036) $ — Stockholders' Equity Common stock $ 333 $ 333 $ 332 $ 334 $ 333 Additional paid-in capital 469,748 462,194 454,215 450,434 444,127 Accumulated other comprehensive income (loss) (759) 612 1,203 1,876 1,833 Retained earnings 1,182,969 1,243,903 1,264,446 1,282,390 1,319,274 Total stockholders’ equity $ 1,652,291 $ 1,707,042 $ 1,720,196 $ 1,735,034 $ 1,765,567 Noncontrolling interests 12,812 12,801 12,838 11,864 11,899 Total permanent equity $ 1,665,103 $ 1,719,843 $ 1,733,034 $ 1,746,898 $ 1,777,466 Commitments and contingencies — — — — — Total liabilities, temporary equity, and permanent equity $ 4,260,013 $ 4,893,604 $ 6,165,460 $ 5,059,478 $ 5,797,275
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Q3 2026 Earnings Release 10 Walker & Dunlop, Inc. and Subsidiaries Condensed Consolidated Statements of Income and Comprehensive Income Unaudited Quarterly Trends Nine months ended September 30, (in thousands, except per share amounts) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Revenues Origination fees $ 81,257 $ 92,893 $ 88,532 $ 103,614 $ 97,845 $ 262,682 $ 238,535 MSR income 29,196 47,817 46,773 50,060 48,657 123,786 129,621 Servicing fees 87,690 86,700 85,437 86,339 85,189 259,827 251,103 Property sales broker fees 19,780 12,787 13,179 28,488 26,546 45,746 55,031 Investment management fees 8,583 6,907 10,226 11,192 6,178 25,716 23,437 Net warehouse interest income (expense) 888 369 25 (909) (2,035) 1,282 (4,581) Placement fees and other interest income 37,141 32,440 32,704 37,085 46,302 102,285 115,499 Other revenues 33,914 26,777 24,455 24,155 28,993 85,146 85,637 Total revenues $ 298,449 $ 306,690 $ 301,331 $ 340,024 $ 337,675 $ 906,470 $ 894,282 Expenses Personnel $ 164,693 $ 162,909 $ 152,829 $ 187,113 $ 177,418 $ 480,431 $ 460,696 Amortization and depreciation 61,562 60,699 62,964 62,084 60,041 185,225 176,598 Provision (benefit) for credit losses (4,232) 20,966 4,118 3,105 949 20,852 6,481 Interest expense on corporate debt 15,330 15,260 14,902 15,983 16,451 45,492 48,732 Indemnified and repurchased loan expenses, net 63,072 6,884 10,061 35,784 3,526 80,017 5,066 Other operating expenses 45,198 37,898 30,507 54,512 33,353 113,603 99,154 Total expenses $ 345,623 $ 304,616 $ 275,381 $ 358,581 $ 291,738 $ 925,620 $ 796,727 Income (loss) before taxes $ (47,174) $ 2,074 $ 25,950 $ (18,557) $ 45,937 $ (19,150) $ 97,555 Income tax expense (benefit) (10,306) (764) 8,022 (5,447) 12,516 (3,048) 27,460 Net income (loss) before noncontrolling interests and temporary equity holders $ (36,868) $ 2,838 $ 17,928 $ (13,110) $ 33,421 $ (16,102) $ 70,095 Less: net income (loss) from noncontrolling interests 32 12 974 (36) (31) 1,018 (63) Less: net income (loss) attributable to temporary equity holders 358 (180) 1,083 837 — 1,261 — Walker & Dunlop net income (loss) $ (37,258) $ 3,006 $ 15,871 $ (13,911) $ 33,452 $ (18,381) $ 70,158 Other comprehensive income (loss), net of tax (1,371) (591) (673) 43 (931) (2,635) 1,247 Walker & Dunlop comprehensive income (loss) $ (38,629) $ 2,415 $ 15,198 $ (13,868) $ 32,521 $ (21,016) $ 71,405 Effective Tax Rate 22% (37)% 31% 29% 27% 16% 28% Basic earnings (loss) per share $ (1.15) $ 0.09 $ 0.46 $ (0.41) $ 0.98 $ (0.63) $ 2.05 Diluted earnings (loss) per share (1.15) 0.09 0.46 (0.41) 0.98 (0.63) 2.05 Cash dividends paid per common share 0.68 0.68 0.68 0.67 0.67 2.04 2.01 Basic weighted-average shares outstanding 33,284 33,263 33,394 33,388 33,376 33,313 33,333 Diluted weighted-average shares outstanding 33,284 33,275 33,411 33,410 33,397 33,313 33,355
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Q3 2026 Earnings Release 11 SUPPLEMENTAL OPERATING DATA Unaudited Quarterly Trends Nine months ended September 30, (in thousands, except per share data and unless otherwise noted) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Transaction Volume: Components of Debt Financing Volume Fannie Mae $ 1,281,920 $ 3,087,806 $ 1,553,899 $ 2,785,231 $ 2,141,092 $ 5,923,625 $ 6,767,194 Freddie Mac 1,353,487 1,310,879 3,124,128 2,023,592 3,664,380 5,788,494 6,225,224 Ginnie Mae - HUD 230,965 413,839 481,384 153,748 325,169 1,126,188 761,776 Brokered (1) 7,151,472 7,402,029 6,503,051 8,675,937 4,512,729 21,056,552 13,400,743 Principal Lending and Investing (2) 266,250 319,650 87,900 167,700 199,250 673,800 522,550 Total Debt Financing Volume $ 10,284,094 $ 12,534,203 $ 11,750,362 $ 13,806,208 $ 10,842,620 $ 34,568,659 $ 27,677,487 Property Sales Volume 3,493,541 1,897,246 1,910,300 4,524,142 4,672,875 7,301,087 8,825,750 Total Transaction Volume $ 13,777,635 $ 14,431,449 $ 13,660,662 $ 18,330,350 $ 15,515,495 $ 41,869,746 $ 36,503,237 Key Performance Metrics: Operating margin (16) % 1 % 9 % (5) % 14 % (2) % 11 % Return on equity (9) 1 4 (3) 8 (1) 5 Walker & Dunlop net income (loss) $ (37,258) $ 3,006 $ 15,871 $ (13,911) $ 33,452 $ (18,381) $ 70,158 Adjusted EBITDA (3) 61,093 62,129 73,782 38,755 82,084 197,004 223,861 Diluted earnings (loss) per share (1.15) 0.09 0.46 (0.41) 0.98 (0.63) 2.05 Adjusted core EPS (4) 0.92 1.19 1.02 0.28 1.22 3.60 3.23 Key Expense Metrics (as a percentage of total revenues): Personnel expense 55 % 53 % 51 % 55 % 53 % 53 % 52 % Other operating expenses 15 12 10 16 10 13 11 Key Revenue Metrics (as a percentage of debt financing volume): Origination fee rate (5) 0.79 % 0.74 % 0.76 % 0.75 % 0.90 % 0.76 % 0.87 % Agency MSR rate (6) 1.02 0.99 0.91 1.01 0.79 0.96 0.94 Other Data: Market capitalization at period end $ 1,209,737 $ 1,877,955 $ 1,522,458 $ 2,048,798 $ 2,847,907 Closing share price at period end $ 35.11 $ 54.70 $ 44.38 $ 60.15 $ 83.62 Average headcount 1,488 1,479 1,471 1,464 1,438 Components of Servicing Portfolio (end of period): Fannie Mae $ 74,324,325 $ 74,141,705 $ 73,498,820 $ 72,708,372 $ 71,006,342 Freddie Mac 45,976,529 45,515,813 44,836,263 42,595,441 40,473,401 Ginnie Mae - HUD 12,025,739 11,890,066 11,646,914 11,563,020 11,298,108 Brokered (7) 14,230,739 14,233,764 16,385,040 17,111,320 16,553,827 Principal Lending and Investing (8) 73,500 17,500 17,500 — — Total Servicing Portfolio $ 146,630,832 $ 145,798,848 $ 146,384,537 $ 143,978,153 $ 139,331,678 Assets under management (9) 19,191,703 18,674,671 18,530,780 18,631,100 18,521,907 Total Managed Portfolio $ 165,822,535 $ 164,473,519 $ 164,915,317 $ 162,609,253 $ 157,853,585 Key Servicing Portfolio Metrics (end of period): Custodial escrow account deposits (in billions) $ 2.9 $ 3.1 $ 2.5 $ 3.1 $ 2.8 Weighted-average servicing fee rate (basis points) 23.2 23.4 23.4 23.6 24.0 Weighted-average remaining servicing portfolio term (years) 6.9 7.1 7.1 7.2 7.4 (1) Brokered transactions for life insurance companies, commercial banks, and other capital sources. (2) Includes debt financing volumes from our interim lending platform and 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 , commercial banks, and other capital sources. (8) Consists of interim loans not managed for our interim loan joint venture. (9) Walker & Dunlop Affordable Equity assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim l oan joint venture.
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Q3 2026 Earnings Release 12 KEY CREDIT METRICS Unaudited September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Risk-sharing servicing portfolio: Fannie Mae Full Risk $ 67,786,267 $ 67,515,995 $ 65,886,235 $ 65,087,136 $ 63,382,256 Fannie Mae Modified Risk 6,538,058 6,625,710 7,612,585 7,621,236 7,624,086 Freddie Mac Modified Risk 15,000 15,000 15,000 15,000 10,000 Total risk-sharing servicing portfolio $ 74,339,325 $ 74,156,705 $ 73,513,820 $ 72,723,372 $ 71,016,342 Non-risk-sharing servicing portfolio: Freddie Mac No Risk $ 45,961,529 $ 45,500,813 $ 44,821,263 $ 42,580,441 $ 40,463,401 GNMA - HUD No Risk 12,025,739 11,890,066 11,646,914 11,563,020 11,298,108 Brokered 14,230,739 14,233,764 16,385,040 17,111,320 16,553,827 Total non-risk-sharing servicing portfolio $ 72,218,007 $ 71,624,643 $ 72,853,217 $ 71,254,781 $ 68,315,336 Total loans serviced for others $ 146,557,332 $ 145,781,348 $ 146,367,037 $ 143,978,153 $ 139,331,678 Loans held for investment (full risk) $ 73,500 $ 160,391 $ 56,203 $ 36,926 $ 36,926 Interim Loan Joint Venture Managed Loans (1) 17,099 17,099 17,099 32,965 76,215 At-risk servicing portfolio (2) $ 70,704,547 $ 70,499,346 $ 69,444,656 $ 68,649,960 $ 66,946,180 Maximum exposure to at-risk portfolio (3) 14,470,064 14,433,243 14,221,298 14,052,667 13,704,585 Defaulted loans (4) 255,025 198,638 167,456 158,821 139,020 Defaulted loans as a percentage of the at-risk portfolio 0.36 % 0.28 % 0.24 % 0.23 % 0.21 % Allowance for risk -sharing as a percentage of the at -risk portfolio 0.09 0.07 0.06 0.05 0.05 Allowance for risk -sharing as a percentage of maximum exposure 0.44 0.34 0.27 0.27 0.25 (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 Delegated Underwriting and Servicing (“ DUS”) loans subject to risk-sharing, 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 pe rcentage 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 pre-securitized 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 re sult in a loss to us are not included here.
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Q3 2026 Earnings Release 13 ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP Unaudited Quarterly Trends Nine months ended September 30, (in thousands) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA Walker & Dunlop Net Income (Loss) $ (37,258) $ 3,006 $ 15,871 $ (13,911) $ 33,452 $ (18,381) $ 70,158 Income tax expense (benefit) (10,306) (764) 8,022 (5,447) 12,516 (3,048) 27,460 Interest expense on corporate debt 15,330 15,260 14,902 15,983 16,451 45,492 48,732 Amortization and depreciation 61,562 60,699 62,964 62,084 60,041 185,225 176,598 Provision (benefit) for credit losses (4,232) 20,966 4,118 3,105 949 20,852 6,481 Loan repurchase losses and fair value adjustments (1) 56,252 1,664 6,950 20,092 — 64,866 — Net write-offs (161) — (491) — — (652) — Stock-based compensation expense 9,102 9,115 8,219 6,909 7,332 26,436 19,838 Write-off of unamortized issuance costs from corporate debt paydown (2) — — — — — — 4,215 MSR income (29,196) (47,817) (46,773) (50,060) (48,657) (123,786) (129,621) Adjusted EBITDA $ 61,093 $ 62,129 $ 73,782 $ 38,755 $ 82,084 $ 197,004 $ 223,861 (1) Presented as a component of Indemnified and repurchased loan expenses, net on the Condensed Consolidated Statements of Income. (2) Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.
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Q3 2026 Earnings Release 14 CONDENSED SEGMENTS STATEMENTS OF INCOME Unaudited Segment Results (dollars in thousands, except per share data and ratios) For the three months ended September 30, 2026 Revenues CM SAM Corporate Consolidated Loan origination and debt brokerage fees, net $ 79,528 $ 1,729 $ — $ 81,257 Fair value of expected net cash flows from servicing, net of guaranty obligation 29,196 — — 29,196 Servicing fees — 87,690 — 87,690 Property sales broker fees 19,780 — — 19,780 Investment management fees — 8,583 — 8,583 Net warehouse interest income (expense) 630 258 — 888 Placement fees and other interest income — 34,785 2,356 37,141 Other revenues 18,631 15,256 27 33,914 Total revenues $ 147,765 $ 148,301 $ 2,383 $ 298,449 Expenses Personnel $ 119,671 $ 21,598 $ 23,424 $ 164,693 Amortization and depreciation 1,146 57,636 2,780 61,562 Provision (benefit) for credit losses — (4,232) — (4,232) Interest expense on corporate debt (1) 4,154 9,561 1,615 15,330 Indemnified and repurchased loan expenses, net — 63,072 — 63,072 Other operating expenses 7,739 16,013 21,446 45,198 Total expenses $ 132,710 $ 163,648 $ 49,265 $ 345,623 Income (loss) before taxes $ 15,055 $ (15,347) $ (46,882) $ (47,174) Income tax expense (benefit) (2) 3,302 (3,148) (10,460) (10,306) Net income (loss) before noncontrolling interests and temporary equity holders $ 11,753 $ (12,199) $ (36,422) $ (36,868) Less: net income (loss) from noncontrolling interests $ — 32 — $ 32 Less: net income (loss) attributable to temporary equity holders 358 — — 358 Walker & Dunlop net income (loss) $ 11,395 $ (12,231) $ (36,422) $ (37,258) Diluted EPS $ 0.35 $ (0.38) $ (1.12) $ (1.15) Operating margin 10 % (10) % (1,967) % (16) % Segment Results (dollars in thousands, except per share data and ratios) For the three months ended September 30, 2025 Revenues CM SAM Corporate Consolidated Loan origination and debt brokerage fees, net $ 96,147 $ 1,698 $ — $ 97,845 Fair value of expected net cash flows from servicing, net of guaranty obligation 48,657 — — 48,657 Servicing fees — 85,189 — 85,189 Property sales broker fees 26,546 — — 26,546 Investment management fees — 6,178 — 6,178 Net warehouse interest income (expense) (2,035) — — (2,035) Placement fees and other interest income — 42,123 4,179 46,302 Other revenues 11,439 15,440 2,114 28,993 Total revenues $ 180,754 $ 150,628 $ 6,293 $ 337,675 Expenses Personnel $ 131,113 $ 23,304 $ 23,001 $ 177,418 Amortization and depreciation 1,146 56,991 1,904 60,041 Provision (benefit) for credit losses — 949 — 949 Interest expense on corporate debt (1) 4,535 10,404 1,512 16,451 Indemnified and repurchased loan expenses, net — 3,526 — 3,526 Other operating expenses 5,647 4,944 22,762 33,353 Total expenses $ 142,441 $ 100,118 $ 49,179 $ 291,738 Income (loss) before taxes $ 38,313 $ 50,510 $ (42,886) $ 45,937 Income tax expense (benefit) (2) 10,383 13,578 (11,445) 12,516 Net income (loss) before noncontrolling interests $ 27,930 $ 36,932 $ (31,441) $ 33,421 Less: net income (loss) from noncontrolling interests — (31) — (31) Walker & Dunlop net income (loss) $ 27,930 $ 36,963 $ (31,441) $ 33,452 Diluted EPS $ 0.81 $ 1.09 $ (0.92) $ 0.98 Operating margin 21 % 34 % (681) % 14 % (1) Interest expense on corporate debt is allocated to each segment based on proportional usage. E xpense decreased due to lower average interest rates. (2) Income tax expense is allocated to each segment based on income (loss) before taxes, except for significant one -time tax items. T ax expense decreased to a benefit due to lower income before taxes and a lower estimated annual effective tax rate driven by higher low-income housing tax c redits.
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Q3 2026 Earnings Release 15 ADJUSTED CORE EPS RECONCILIATION Unaudited Quarterly Trends Nine months ended September 30, (in thousands) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income Walker & Dunlop Net Income (Loss) $ (37,258) $ 3,006 $ 15,871 $ (13,911) $ 33,452 $ (18,381) $ 70,158 Provision (benefit) for credit losses (4,232) 20,966 4,118 3,105 949 20,852 6,481 Loan repurchase losses and fair value adjustments(1) 56,252 1,664 6,950 20,092 — 64,866 — Net write-offs (161) — (491) — — (652) — Amortization and depreciation 61,562 60,699 62,964 62,084 60,041 185,225 176,598 MSR income (29,196) (47,817) (46,773) (50,060) (48,657) (123,786) (129,621) Contingent consideration accretion and fair value adjustments 9 434 (299) (8,226) 18 144 99 Write-off of unamortized issuance costs from corporate debt paydown (2) — — — — — — 4,215 Income tax expense adjustment (3) (17,152) 719 (6,908) (3,662) (3,856) (23,341) (17,640) Adjusted Core Net Income $ 29,824 $ 39,671 $ 35,432 $ 9,422 $ 41,947 $ 104,927 $ 110,290 Reconciliation of Diluted EPS to Adjusted core EPS Walker & Dunlop Net Income (Loss) $ (37,258) $ 3,006 $ 15,871 $ (13,911) $ 33,452 $ (18,381) $ 70,158 Diluted weighted-average shares outstanding 33,284 33,275 33,411 33,410 33,397 33,313 33,355 Diluted earnings (loss) per share $ (1.15) $ 0.09 $ 0.46 $ (0.41) $ 0.98 $ (0.63) $ 2.05 Adjusted Core Net Income $ 29,824 $ 39,671 $ 35,432 $ 9,422 $ 41,947 $ 104,927 $ 110,290 Diluted weighted-average shares outstanding 33,284 33,275 33,411 33,410 33,397 33,313 33,355 Adjusted core EPS $ 0.92 $ 1.19 $ 1.02 $ 0.28 $ 1.22 $ 3.60 $ 3.23 (1) Presented as a component of Indemnified and repurchased loan expenses, net on the Condensed Consolidated Statements of Income. (2) Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income. (3) Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Condensed Consolidated Statements of Income in this press release or (ii) estimated annual effective tax rate.