Walker & Dunlop (WD) Q2 2026 earnings summary

Executive summary

• Total transaction volume rose 3% year-over-year to $14.4 billion, with debt financing up 8% and brokered lending up 17%, while principal lending and property sales saw significant gains.

• Servicing portfolio reached a record $146 billion, up 6% year-over-year, supporting stable recurring revenues.

• GSE market share increased by 350 basis points to nearly 15% year-to-date, positioning for a strong second half.

• Net income dropped 91% to $3.0 million in Q2 2026, primarily due to elevated credit-related expenses and legacy loan repurchase charges tied to isolated fraud.

• Strategic initiatives include expanding into hospitality investment sales, opening a London office, and executing the "Journey to '30" growth plan.

Financial highlights

• Adjusted core EPS increased 3% to $1.19 in Q2 2026; diluted EPS was $0.09 due to $23M in legacy loan charges.

• Adjusted EBITDA for Q2 2026 was $62.1 million; year-to-date adjusted EBITDA was $135.9 million.

• Total revenues declined 4% to $306.7 million in Q2 2026; year-to-date revenues rose 9% to $608.0 million.

• Operating margin was 1% and return on equity was 1% for Q2 2026.

• Personnel expenses increased 11% year-to-date, reflecting higher variable compensation and headcount.

Outlook and guidance

• Excluding repurchase-related costs, core earnings outlook remains strong; full-year results depend on H2 transaction activity.

• 2026 guidance (excluding repurchase charges): diluted EPS of $3.50–$4.00, adjusted core EPS of $4.50–$5.00, and adjusted EBITDA of $300–$325 million.

• Management expects continued opportunity from GSE lending capacity and further market share gains.

• Disposition of legacy repurchased loans is expected to be completed by early next year.

• Long-term targets for 2030 include origination volume over $80B, property sales over $35B, and adjusted core EPS of $8.00–$10.00.