Financial Data and Key Metrics Changes - Total transaction volume for Q2 reached $14 billion, up 65% year-over-year, with revenue growth of 18% and diluted earnings per share of $0.99, up 48% year-over-year [10][11][17] - Adjusted EBITDA declined 5% in the quarter, while adjusted core EPS declined 7%, largely due to a 100 basis point decrease in short-term rates [12][13] - Year-to-date diluted earnings per share increased to $1.07, up 5% over 2024, while adjusted EBITDA totaled $142 million, down 9% from 2024 [26] Business Line Data and Key Metrics Changes - The Capital Markets segment saw significant momentum with 68% more debt financing volume and 51% more property sales volume than the prior year, resulting in segment revenues growing 46% year-over-year [18][19] - The Servicing and Asset Management (SAM) segment generated servicing fees of $84 million, up 4% year-over-year, but total SAM revenues declined 5% due to a 12% decrease in placement fees [20][21] - HUD lending volumes grew 55% to $288 million in Q2, and appraisal revenues increased by 61% [15][20] Market Data and Key Metrics Changes - The multifamily sector is well-positioned with record absorption of 227,000 units in the past year, driven by a widening gap between renting and homeownership costs [8][9] - The occupancy rate in the multifamily industry is currently at 96%, indicating strong demand [10] - GSE market share increased to 11.4%, up from 10.3% at the end of the previous year, with both Fannie Mae and Freddie Mac remaining active in the market [13][14] Company Strategy and Development Direction - The company aims to achieve an average of $200 million in transaction volume per banker or broker, with current production at $189 million per banker broker [28] - Expansion into European markets is a strategic focus, with plans to build operations and capitalize on investment flows into Europe [44][45] - The company is committed to growing its affordable housing platform and increasing capital deployment in its investment management business [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Q3 pipeline, indicating sustained market velocity and a shift from a wait-and-see attitude to a proactive approach among clients [41][42] - The company anticipates continued strong demand for commercial real estate assets and positive underlying market fundamentals [27] - Management emphasized the importance of teamwork and collaboration in achieving future growth and maintaining a competitive edge [35][36] Other Important Information - The company ended the quarter with $234 million in cash, reflecting strong cash generation and rebounding capital markets activity [25] - A quarterly dividend of $0.67 per share was approved, marking seven years of steady dividend growth [25] Q&A Session Summary Question: How does the pipeline look for Q3 and potential growth rates for the second half? - Management indicated that the Q3 pipeline looks great, with sustained market velocity and no signs of a slowdown in transaction volumes [41][42] Question: What is the strategy for the European initiative? - The strategy involves building operations in Europe to capture investment flows and expand the Walker and Dunlop brand globally, with a focus on long-term growth [44][45]