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Sep 30, 2023

Walker & Dunlop Q3 2023 Earnings Report

Walker & Dunlop experienced a decline in transaction volume, which led to a decrease in total revenues and net income. However, adjusted EBITDA remained relatively stable due to the strength of the servicing and asset management segment.

Key Takeaways

Walker & Dunlop reported a decrease in total transaction volume by 49% year-over-year, resulting in a 15% decrease in total revenues. Net income also decreased by 54%. However, adjusted EBITDA declined only 1% due to the stability of revenues from the servicing and asset management segment.

Total transaction volume decreased by 49% to $8.6 billion compared to Q3 2022.

Total revenues decreased by 15% to $268.7 million compared to Q3 2022.

Net income decreased by 54% to $21.5 million, with diluted earnings per share of $0.64.

Servicing portfolio increased by 7% to $129.0 billion as of September 30, 2023, compared to September 30, 2022.

Total Revenue
$251M
Previous year: $316M
-20.4%
EPS
$1.11
Previous year: $1.4
-20.7%
Total Transaction Volume
$8.56B
Previous year: $16.9B
-49.4%
Servicing Portfolio
$129B
Previous year: $121B
+6.8%
Debt Financing Volume
$6.05B
Previous year: $11.9B
-49.3%
Gross Profit
$115M
Previous year: $149M
-23.2%
Cash and Equivalents
$432M
Previous year: $152M
+183.6%
Free Cash Flow
$544M
Total Assets
$4.28B
Previous year: $6B
-28.7%

Walker & Dunlop

Walker & Dunlop

Forward Guidance

Walker & Dunlop plans to capitalize on its brand and scale as financing and sales volumes return, regardless of the rate environment in 2024.

Positive Outlook

  • Continue to invest in people
  • Continue to invest in brand
  • Continue to invest in technology
  • Capitalize on brand and scale as financing and sales volumes return
  • 73% increase in multifamily maturities between 2023 and 2024