| SEGMENTS |
NOTE 8—SEGMENTS The Company’s executive leadership team, which functions as the Company’s chief operating decision making body (“CODM”), makes decisions and assesses performance based on the financial measures disclosed below for each of the following three reportable segments. The reportable segments are determined based on the product or service provided and reflect the manner in which management is currently evaluating the Company’s financial information. | (i) | Capital Markets (“CM”)—CM provides a comprehensive range of commercial real estate finance products to the Company’s customers, including Agency lending, debt brokerage, property sales, and appraisal and valuation services. The Company’s long-established relationships with the Agencies and institutional investors enable CM to offer a broad range of loan products and services to the Company’s customers, including first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, and small-balance loans. CM provides property sales services to owners and developers of multifamily properties and commercial real estate and multifamily property appraisals for various lenders and investors. CM also provides real estate-related investment banking and advisory services, including housing market research. |
As part of Agency lending, CM temporarily funds the loans it originates (loans held for sale) before selling them to the Agencies and earns net interest income on the spread between the interest income on the loans and the warehouse interest expense. For Agency loans, CM recognizes the fair value of expected net cash flows from servicing, which represents the right to receive future servicing fees. CM also earns fees for origination of loans for both Agency lending and debt brokerage, fees for property sales, appraisals, and investment banking and advisory services, and subscription revenue for its housing market research. Direct internal, including compensation, and external costs that are specific to CM are included within the results of this reportable segment. | (ii) | Servicing & Asset Management (“SAM”)—SAM’s activities include: (i) servicing and asset-managing the portfolio of loans the Company (a) originates and sells to the Agencies, including indemnified and repurchased loans from the Agencies (b) brokers to certain life insurance companies, and (c) originates through its principal lending and investing activities, (ii) managing third-party capital invested in commercial real estate assets through senior secured debt or limited partnership equity instruments, e.g., preferred equity, mezzanine debt, etc., either through funds or direct investments, and (iii) managing third-party capital invested in tax credit equity funds focused on the LIHTC sector and other commercial real estate. |
SAM earns revenue mainly through fees for servicing and asset-managing the loans in the Company’s servicing portfolio and asset management fees for managing third-party capital. Direct internal, including compensation, and external costs that are specific to SAM are included within the results of this reportable segment. | (iii) | Corporate—The Corporate segment consists primarily of the Company’s treasury operations and other corporate-level activities. The Company’s treasury activities include monitoring and managing liquidity and funding requirements, including corporate debt. Other corporate-level activities include equity-method investments, accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups (“support functions”). The Company does not allocate costs from these support functions to the CM or SAM segments in presenting segment operating results. The Company allocates interest expense and income |
| | tax expense. Corporate debt and the related interest expense are allocated first based on specific acquisitions where debt was directly used to fund the acquisition, such as the acquisition of Alliant, and then based on the remaining segment assets. Income tax expense is allocated proportionally based on income before taxes at each segment, except for significant one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. |
The following tables provide a summary and reconciliation of each segment’s results for the three months ended June 30, 2026 and 2025. | | | | | | | | | | | | | | Segment Results (dollars in thousands, except per share data and ratios) | | For the three months ended June 30, 2026 | | Revenues | | | CM | | | SAM | | | Corporate | | | Consolidated | | Loan origination and debt brokerage fees, net | | $ | 90,647 | | $ | 2,246 | | $ | — | | $ | 92,893 | | Fair value of expected net cash flows from servicing, net of guaranty obligation | | | 47,817 | | | — | | | — | | | 47,817 | | Servicing fees | | | — | | | 86,700 | | | — | | | 86,700 | | Property sales broker fees | | | 12,787 | | | — | | | — | | | 12,787 | | Investment management fees | | | — | | | 6,907 | | | — | | | 6,907 | | Net warehouse interest income (expense) | | | 140 | | | 229 | | | — | | | 369 | | Placement fees and other interest income | | | — | | | 30,065 | | | 2,375 | | | 32,440 | | Other revenues | | | 17,395 | | | 7,447 | | | 1,935 | | | 26,777 | | Total revenues | | $ | 168,786 | | $ | 133,594 | | $ | 4,310 | | $ | 306,690 | | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | | | Personnel(1) | | $ | 116,058 | | $ | 21,741 | | $ | 25,110 | | $ | 162,909 | | Amortization and depreciation | | | 1,146 | | | 57,181 | | | 2,372 | | | 60,699 | | Provision (benefit) for credit losses | | | — | | | 20,966 | | | — | | | 20,966 | | Interest expense on corporate debt | | | 4,025 | | | 9,893 | | | 1,342 | | | 15,260 | | Indemnified and repurchased loan expenses | | | — | | | 6,884 | | | — | | | 6,884 | | Other operating expenses | | | 10,530 | | | 7,640 | | | 19,728 | | | 37,898 | | Total expenses | | $ | 131,759 | | $ | 124,305 | | $ | 48,552 | | $ | 304,616 | | Income (loss) before taxes | | $ | 37,027 | | $ | 9,289 | | $ | (44,242) | | $ | 2,074 | | Income tax expense (benefit) | | | 7,486 | | | 780 | | | (9,030) | | | (764) | | Net income (loss) before noncontrolling interests and temporary equity holders | | $ | 29,541 | | $ | 8,509 | | $ | (35,212) | | $ | 2,838 | | Less: net income (loss) from noncontrolling interests | | $ | — | | | 12 | | | — | | $ | 12 | | Less: net income (loss) attributable to temporary equity holders | | | (180) | | | — | | | — | | | (180) | | Walker & Dunlop net income (loss) | | $ | 29,721 | | $ | 8,497 | | $ | (35,212) | | $ | 3,006 | | | | | | | | | | | | | | | | Diluted EPS | | $ | 0.89 | | $ | 0.25 | | $ | (1.05) | | $ | 0.09 | | Operating margin | | | 22 | % | | 7 | % | | (1,026) | % | | 1 | % |
| (1) | Personnel expense is primarily composed of the cost of salaries and benefits, payroll taxes, subjective and objective bonuses, commissions, retention bonuses, and stock-based compensation. |
| | | | | | | | | | | | | | Segment Results (dollars in thousands, except per share data and ratios) | | For the three months ended June 30, 2025 | | Revenues | | | CM | | | SAM | | | Corporate | | | Consolidated | | Loan origination and debt brokerage fees, net | | $ | 93,764 | | $ | 545 | | $ | — | | $ | 94,309 | | Fair value of expected net cash flows from servicing, net of guaranty obligation | | | 53,153 | | | — | | | — | | | 53,153 | | Servicing fees | | | — | | | 83,693 | | | — | | | 83,693 | | Property sales broker fees | | | 14,964 | | | — | | | — | | | 14,964 | | Investment management fees | | | — | | | 7,577 | | | — | | | 7,577 | | Net warehouse interest income (expense) | | | (1,760) | | | — | | | — | | | (1,760) | | Placement fees and other interest income | | | — | | | 32,651 | | | 3,335 | | | 35,986 | | Other revenues | | | 12,670 | | | 16,269 | | | 2,379 | | | 31,318 | | Total revenues | | $ | 172,791 | | $ | 140,735 | | $ | 5,714 | | $ | 319,240 | | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | | | Personnel(1) | | $ | 116,441 | | $ | 22,743 | | $ | 22,704 | | $ | 161,888 | | Amortization and depreciation | | | 1,146 | | | 55,882 | | | 1,908 | | | 58,936 | | Provision (benefit) for credit losses | | | — | | | 1,820 | | | — | | | 1,820 | | Interest expense on corporate debt | | | 4,468 | | | 10,810 | | | 1,489 | | | 16,767 | | Indemnified and repurchased loan expenses | | | — | | | 683 | | | — | | | 683 | | Other operating expenses | | | 5,309 | | | 5,831 | | | 21,632 | | | 32,772 | | Total expenses | | $ | 127,364 | | $ | 97,769 | | $ | 47,733 | | $ | 272,866 | | Income (loss) before taxes | | $ | 45,427 | | $ | 42,966 | | $ | (42,019) | | $ | 46,374 | | Income tax expense (benefit) | | | 12,285 | | | 5,428 | | | (5,288) | | | 12,425 | | Net income (loss) before noncontrolling interests | | $ | 33,142 | | $ | 37,538 | | $ | (36,731) | | $ | 33,949 | | Less: net income (loss) from noncontrolling interests | | | — | | | (3) | | | — | | | (3) | | Walker & Dunlop net income (loss) | | $ | 33,142 | | $ | 37,541 | | $ | (36,731) | | $ | 33,952 | | | | | | | | | | | | | | | | Diluted EPS | | $ | 0.97 | | $ | 1.10 | | $ | (1.08) | | $ | 0.99 | | Operating margin | | | 26 | % | | 31 | % | | (735) | % | | 15 | % |
| (1) | Personnel expense is primarily composed of the cost of salaries and benefits, payroll taxes, subjective and objective bonuses, commissions, retention bonuses, and stock-based compensation. |
The following tables provide a summary and reconciliation of each segment’s results and balances as of and for the six months ended June 30, 2026 and 2025. | | | | | | | | | | | | | | Segment Results and Total Assets (dollars in thousands, except per share data and ratios) | | As of and for the six months ended June 30, 2026 | | Revenues | | | CM | | | SAM | | | Corporate | | | Consolidated | | Loan origination and debt brokerage fees, net | | $ | 178,723 | | $ | 2,702 | | $ | — | | $ | 181,425 | | Fair value of expected net cash flows from servicing, net of guaranty obligation | | | 94,590 | | | — | | | — | | | 94,590 | | Servicing fees | | | — | | | 172,137 | | | — | | | 172,137 | | Property sales broker fees | | | 25,966 | | | — | | | — | | | 25,966 | | Investment management fees | | | — | | | 17,133 | | | — | | | 17,133 | | Net warehouse interest income (expense) | | | (126) | | | 520 | | | — | | | 394 | | Placement fees and other interest income | | | — | | | 59,559 | | | 5,585 | | | 65,144 | | Other revenues | | | 32,074 | | | 19,846 | | | (688) | | | 51,232 | | Total revenues | | $ | 331,227 | | $ | 271,897 | | $ | 4,897 | | $ | 608,021 | | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | | | Personnel(1) | | $ | 225,909 | | $ | 40,864 | | $ | 48,965 | | $ | 315,738 | | Amortization and depreciation | | | 2,292 | | | 116,575 | | | 4,796 | | | 123,663 | | Provision (benefit) for credit losses | | | — | | | 25,084 | | | — | | | 25,084 | | Interest expense on corporate debt | | | 8,010 | | | 19,482 | | | 2,670 | | | 30,162 | | Indemnified and repurchased loan expenses | | | — | | | 16,945 | | | — | | | 16,945 | | Other operating expenses | | | 16,000 | | | 11,199 | | | 41,206 | | | 68,405 | | Total expenses | | $ | 252,211 | | $ | 230,149 | | $ | 97,637 | | $ | 579,997 | | Income (loss) before taxes | | $ | 79,016 | | $ | 41,748 | | $ | (92,740) | | $ | 28,024 | | Income tax expense (benefit) | | | 20,466 | | | 10,813 | | | (24,021) | | | 7,258 | | Net income (loss) before noncontrolling interests and temporary equity holders | | $ | 58,550 | | $ | 30,935 | | $ | (68,719) | | $ | 20,766 | | Less: net income (loss) from noncontrolling interests | | $ | — | | | 986 | | | — | | $ | 986 | | Less: net income (loss) attributable to temporary equity holders | | | 903 | | | — | | | — | | | 903 | | Walker & Dunlop net income (loss) | | $ | 57,647 | | $ | 29,949 | | $ | (68,719) | | $ | 18,877 | | | | | | | | | | | | | | | | Total assets | | $ | 2,003,230 | | $ | 2,455,813 | | $ | 434,561 | | $ | 4,893,604 | | Diluted EPS | | $ | 1.68 | | $ | 0.87 | | $ | (2.00) | | $ | 0.55 | | Operating margin | | | 24 | % | | 15 | % | | (1,894) | % | | 5 | % |
| (1) | Personnel expense is primarily composed of the cost of salaries and benefits, payroll taxes, subjective and objective bonuses, commissions, retention bonuses, and stock-based compensation. |
| | | | | | | | | | | | | | Segment Results and Total Assets (dollars in thousands, except per share data and ratios) | | As of and for the six months ended June 30, 2025 | | Revenues | | | CM | | | SAM | | | Corporate | | | Consolidated | | Loan origination and debt brokerage fees, net | | $ | 139,061 | | $ | 1,629 | | $ | — | | $ | 140,690 | | Fair value of expected net cash flows from servicing, net of guaranty obligation | | | 80,964 | | | — | | | — | | | 80,964 | | Servicing fees | | | — | | | 165,914 | | | — | | | 165,914 | | Property sales broker fees | | | 28,485 | | | — | | | — | | | 28,485 | | Investment management fees | | | — | | | 17,259 | | | — | | | 17,259 | | Net warehouse interest income (expense) | | | (2,546) | | | — | | | — | | | (2,546) | | Placement fees and other interest income | | | — | | | 62,273 | | | 6,924 | | | 69,197 | | Other revenues | | | 29,397 | | | 25,563 | | | 1,684 | | | 56,644 | | Total revenues | | $ | 275,361 | | $ | 272,638 | | $ | 8,608 | | $ | 556,607 | | | | | | | | | | | | | | | | Expenses | | | | | | | | | | | | | | Personnel(1) | | $ | 202,907 | | $ | 42,289 | | $ | 38,082 | | $ | 283,278 | | Amortization and depreciation | | | 2,287 | | | 110,380 | | | 3,890 | | | 116,557 | | Provision (benefit) for credit losses | | | — | | | 5,532 | | | — | | | 5,532 | | Interest expense on corporate debt | | | 8,655 | | | 20,741 | | | 2,885 | | | 32,281 | | Indemnified and repurchased loan expenses | | | — | | | 1,540 | | | — | | | 1,540 | | Other operating expenses | | | 11,544 | | | 12,442 | | | 41,815 | | | 65,801 | | Total expenses | | $ | 225,393 | | $ | 192,924 | | $ | 86,672 | | $ | 504,989 | | Income (loss) before taxes | | $ | 49,968 | | $ | 79,714 | | $ | (78,064) | | $ | 51,618 | | Income tax expense (benefit) | | | 14,466 | | | 23,079 | | | (22,601) | | | 14,944 | | Net income (loss) before noncontrolling interests | | $ | 35,502 | | $ | 56,635 | | $ | (55,463) | | $ | 36,674 | | Less: net income (loss) from noncontrolling interests | | | — | | | (32) | | | — | | | (32) | | Walker & Dunlop net income (loss) | | $ | 35,502 | | $ | 56,667 | | $ | (55,463) | | $ | 36,706 | | | | | | | | | | | | | | | | Total assets | | $ | 1,851,055 | | $ | 2,337,205 | | $ | 486,780 | | $ | 4,675,040 | | Diluted EPS | | $ | 1.04 | | $ | 1.65 | | $ | (1.62) | | $ | 1.07 | | Operating margin | | | 18 | % | | 29 | % | | (907) | % | | 9 | % |
| (1) | Personnel expense is primarily composed of the cost of salaries and benefits, payroll taxes, subjective and objective bonuses, commissions, retention bonuses, and stock-based compensation. |
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