Walker & Dunlop, Inc.

Walker & Dunlop arranges commercial real estate loans, brokers property sales and manages investment funds, with a focus on apartment buildings. It earns transaction fees when deals close and ongoing fees for managing existing loans. The company trades on the New York Stock Exchange as WD and has a December 31 fiscal year-end.

Quarterly financial history

Walker & Dunlop reported a third-quarter 2026 loss as its legacy loan cleanup added valuation and operating costs. Its recurring servicing-fee business grew, while a greater share of brokered lending reduced the fees earned from transaction activity.

The servicing portfolio reached $146.6 billion, versus $139.3 billion a year earlier. Servicing generates fees over the life of the loans, while some loans it arranges also leave the company responsible for a share of future credit losses.

Legacy loans and the next milestones

In November 2026, Walker & Dunlop disclosed that Fannie Mae had completed its fraud review. Freddie Mac's review was completed in the second quarter. Management expects no further repurchases or indemnifications tied to those investigations.

The company continues to target the sale of the remaining legacy assets by early 2027, a timetable already stated in August. At September 30, the indemnified and repurchased loans and associated property held for sale had a combined carrying value of $76.9 million. A subsequent completed property sale generated about $8.3 million of net proceeds.

New third-quarter valuation adjustments were approximately $37.5 million. The broader net expense associated with indemnified and repurchased loans was $56.3 million before tax after operating costs, other provisions, impairments and related credits.

Ordinary loan risk-sharing continues alongside that cleanup. The allowance for risk-sharing obligations rose to $63.2 million at September 30, 2026, from $37.5 million at December 31, 2025.

In its November presentation, the company projected 2026 adjusted EBITDA of $260 million–$280 million, excluding repurchase-related charges. Its adjusted EBITDA measure adds back corporate-debt interest, taxes, depreciation and amortization, stock compensation and selected credit costs, and deducts noncash income from newly created servicing rights. Operating-model changes target about $20 million of annual net operating income improvement, with the full run-rate benefit expected in the second half of 2027.

Cash flow and capital requirements

At September 30, 2026, cash and equivalents were $183.2 million. Restricted cash was $22.9 million, and pledged securities totaled $239.4 million. The operating subsidiary had $153.7 million of defined operational liquidity against a $72.6 million requirement.

The existing risk-sharing portfolio would require another $91.5 million of restricted liquidity over the following 48 months under the company's calculation, which assumes no further principal paydowns, prepayments or defaults.

Debt and shareholder returns

Corporate notes had a carrying value of $804.6 million at September 30. Warehouse funding of $762.5 million and $108.3 million of secured borrowing associated with indemnified loans were separate liabilities.

An October 26 amendment increased the revolving credit commitment to $150 million from $50 million and moved its scheduled maturity to October 26, 2029. The report says the company complied with its debt covenants.

There were no third-quarter purchases under the public share-buyback program, which had $61.7 million of capacity remaining. The board declared a fourth-quarter dividend of 68 cents a share, payable December 4, 2026.

Read our analysis of Walker & Dunlop's completed review and remaining loan cleanup.