Walker & Dunlop(US:WD)2025-11-06 11:01Financial Performance - Total transaction volume reached $15.5 billion, a 34% increase year-over-year[1] - Total revenues increased by 16% to $338 million, with net income rising 16% to $33.5 million, or $0.98 per diluted share[1][3] - Adjusted EBITDA was $82 million, up 4% from the same period in 2024, while adjusted core EPS increased by 3% to $1.22[1][3] - Year-to-date total transaction volume reached $36.5 billion, a 38% increase from 2024[3] - Total revenues for Q3 2025 reached $337,675,000, a 5.4% increase from Q2 2025's $319,240,000[67] - Walker & Dunlop's net income for YTD Q3 2025 was $70,158,000, an 11% increase from $63,331,000 in YTD Q3 2024[33] - Diluted EPS for YTD Q3 2025 increased to $2.05, a 10% rise from $1.87 in YTD Q3 2024[33] - Walker & Dunlop reported a net income of $33,452,000 for Q3 2025, a decrease of 1.5% from $33,952,000 in Q2 2025[85] Servicing Portfolio - The servicing portfolio grew to $139.3 billion, a 4% increase from September 30, 2024[3][11] - The total servicing portfolio at the end of Q3 2025 was $139,331,678,000, an increase from $137,349,124,000 in Q2 2025[69] - The at-risk servicing portfolio increased due to the addition of Fannie Mae loans, with ten loans in default totaling an aggregate unpaid principal balance (UPB) of $139.0 million as of September 30, 2025, compared to seven loans with a UPB of $59.6 million a year earlier[17] - Total risk-sharing servicing portfolio increased to $71,016,342 thousand as of September 30, 2025, up from $66,137,612 thousand a year earlier, representing an increase of 7.5%[73] Capital Markets Segment - Total revenues for the Capital Markets segment increased by 26% year-over-year to $180.8 million in Q3 2025, driven by a 32% increase in origination fees[19] - The net income before noncontrolling interests for the Capital Markets segment was $27.9 million in Q3 2025, reflecting a 28% increase from $21.9 million in Q3 2024[19] - Total revenues in the Capital Markets segment for YTD Q3 2025 were $456,115,000, a 33% increase from $343,779,000 in YTD Q3 2024[39] - Walker & Dunlop's net income in the Capital Markets segment surged to $63,432,000, a 142% increase from $26,167,000 in YTD Q3 2024[39] Expenses and Liabilities - Personnel expenses in the Capital Markets segment rose by 25% year-over-year to $131.1 million, driven by increased commission costs and a 6% increase in average headcount[19] - Total liabilities increased to $4,019,809,000 as of September 30, 2025, up from $2,913,242,000 in June 2025, reflecting a growth of 38%[65] - The company reported cash and cash equivalents of $274,828,000 as of September 30, 2025, an increase from $233,712,000 in June 2025, which is a rise of 17%[65] Dividends and Share Repurchase - The company declared a dividend of $0.67 per share for Q4 2025[1] - The company declared a dividend of $0.67 per share for Q4 2025, payable on December 5, 2025[49] - The company authorized a share repurchase program of up to $75.0 million starting February 21, 2025, with no shares repurchased as of September 30, 2025[50] Credit Losses and Defaults - Defaulted loans increased by 133% to $139,020, reflecting a rise in the at-risk servicing portfolio[13] - The company recorded a provision for credit losses of $0.9 million in Q3 2025, primarily related to updated loss reserves for two previously defaulted loans[17] - The provision for credit losses was $949,000 in Q3 2025, a decrease from $1,820,000 in Q2 2025[85] Market Conditions and Risks - The company anticipates potential risks including changes in interest rates and economic conditions that could impact future performance[60] - The company is focused on strategic investments and market expansion to enhance its competitive position in the commercial real estate finance sector[58]