Walker & Dunlop, Inc. (WD)

Over the past six months, Walker & Dunlop's stock price has declined, but there have been some positive developments. The company reported better-than-expected Q3 CY2025 results, with revenue up 15.5% year-on-year and diluted earnings per share also rose by 15%. The company posted strong Q2 2025 earnings, with revenue of $319.2 million and adjusted EPS of $1.15, both beating analyst estimates. Walker & Dunlop and Pretium announced a US$250 million joint venture to provide short-term first-mortgage bridge loans for multifamily properties transitioning into long-term affordable housing programs. Walker & Dunlop announced the expansion of its Capital Markets Institutional Advisory presence in South Florida with the addition of Michael Stepniewski. Jefferies initiated coverage of Walker & Dunlop with a "Buy" recommendation. The company is facing a $20 million indemnification related to borrower fraud in two loan portfolios, which is expected to impact its financials in the fourth quarter of 2025.

The demand for Walker & Dunlop's products and services is influenced by broader economic conditions, interest rates, and market volatility. The company operates in a highly volatile and cyclical market. The company's revenue streams are diversified, with net interest income forming a smaller portion of total revenue, suggesting a reliance on fee-based services. The company's focus on multifamily properties ties its demand to the dynamics of these specific housing sectors. The company's management has noted a "sharp rebound in transaction volumes" in Q2 2025, driven by pent-up demand for capital recycling and deployment, and anticipates ongoing momentum.

Walker & Dunlop, Inc. is a commercial real estate finance and advisory services firm operating in the Mortgage Finance industry. It provides commercial real estate debt and equity financing products and services to owners and developers in the United States. The company's major products and services include capital markets, servicing and asset management, investment management, advisory services, and specialized groups for land brokerage, hospitality property sales and advisory, and data infrastructure advisory.

Walker & Dunlop primarily operates in the United States with a network of regional offices. It has expanded internationally with a London-based office launched in February 2025.

Walker & Dunlop has been recognized as one of Fortune's Great Places to Work®. The company was ranked the #1 Fannie Mae DUS® Lender, #4 Freddie Mac Multifamily Optigo® Lender, and #2 HUD Lender in 2024. The new US$250 million joint venture with Pretium for affordable bridge lending reinforces Walker & Dunlop's growing focus on affordable housing finance. The launch of its first international office in London in February 2025 and the expansion of its Capital Markets presence in Miami in January 2026 demonstrate growth and a proactive approach. The $20 million indemnification related to borrower fraud in two loan portfolios could potentially have a minor negative impact on its reputation.

Walker & Dunlop, Inc. has significant institutional ownership, with institutions holding approximately 76.64% of the company's shares. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc., and State Street Corp. Fortress Investment Group LLC is the largest individual shareholder, owning 32.66 million shares. The CEO, William Walker, directly holds 2.9% of the total shares outstanding.