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Walker & Dunlop Q1 2025 Earnings Report
Walker & Dunlop reported its financial results for the first quarter of 2025, showing an increase in total transaction volume and revenues, but a decrease in net income and diluted EPS.
Key Takeaways
Walker & Dunlop's first quarter of 2025 saw a 10% increase in total transaction volume to $7.0 billion and a 4% increase in total revenues to $237.4 million compared to Q1 2024. However, net income and diluted earnings per share significantly decreased by 77% due to increased personnel expenses, a write-off of unamortized issuance costs, and a rise in the provision for credit losses. Adjusted EBITDA and adjusted core EPS also saw declines.
Total transaction volume increased 10% year-over-year to $7.0 billion.
Total revenues grew 4% year-over-year to $237.4 million.
Net income and diluted EPS both decreased 77% from Q1 2024, primarily due to higher expenses.
The servicing portfolio grew 3% to $135.6 billion as of March 31, 2025.
Revenue by Segment
Forward Guidance
Walker & Dunlop anticipates continued growth in transaction volumes and financing activity, driven by pent-up demand in commercial real estate and favorable regulatory changes. The company plans to invest in its Capital Markets platform to meet client needs and expand with the next cycle.
Positive Outlook
- Continued improvement in transaction volumes and revenues expected.
- Growing sense of pent-up demand for financing and capital deployment in commercial real estate.
- Initial deregulatory changes at HUD and GSEs are welcomed.
- Assumption that the Trump Administration continues to work on lowering short and long-term interest rates.
- Continued investment in Capital Markets platform to meet growing client needs and expand.
Challenges Ahead
- Increased severance expense impacted Q1 2025 net income.
- Fees associated with a corporate debt issuance impacted Q1 2025 net income.
- Credit losses are considered normal for this time in the credit cycle.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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