In This Article:
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Total Transaction Volume: $7 billion, up 10% from last year.
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Total Revenue Growth: 4% increase in Q1 2025.
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GAAP EPS: $0.08, down significantly due to increased personnel costs and loan loss reserves.
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Adjusted EBITDA: $65 million.
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Adjusted Core EPS: $0.85.
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Fannie Mae Originations: Up 67% from Q1 last year.
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Investment Sales Volume: Up 58% from a slow start last year.
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Debt Brokerage Volume: $2.6 billion, down from $3.3 billion in Q1 2024.
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Capital Markets Segment Revenue: Grew 25% to $103 million.
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Zelman Revenue Growth: 129% increase to $11 million.
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Capital Markets Segment Net Income: $2 million, a $9 million improvement from Q1 2024.
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Servicing and Asset Management Revenue: Declined 7% from Q1 2024.
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At-Risk Loan Portfolio: $64 billion, with 17 basis points in default.
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Quarterly Dividend: $0.67 per share.
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Appraisal Business Revenue Growth: 50% increase in Q1 over last year.
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Small Balance Lending Volume Growth: 28% increase in Q1 with 58% revenue growth.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Walker & Dunlop Inc (NYSE:WD) reported a 10% increase in total transaction volume to $7 billion, driving a 4% revenue growth in Q1 2025.
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The company saw a significant 67% increase in Fannie Mae originations, indicating strong performance in the multifamily sector.
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Investment sales volume increased by 58% from the previous year, showcasing the strength of the Walker & Dunlop Inc (NYSE:WD) brand.
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Walker & Dunlop Inc (NYSE:WD) expanded its strategic footprint by opening a new office in London and entering the hospitality investment sales space.
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The company successfully refinanced its corporate debt, reducing the weighted average cost of capital and adding over $50 million of liquidity to the balance sheet.
Negative Points
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GAAP EPS dropped significantly to $0.08 due to increased personnel costs and fees associated with debt offerings.
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Adjusted EBITDA declined to $65 million, and adjusted core earnings per share fell to $0.85.
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The debt brokerage team experienced a decline in Q1 volume to $2.6 billion from $3.3 billion in Q1 2024, primarily due to timing issues.
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Walker & Dunlop Inc (NYSE:WD) incurred $10 million in expenses related to refinancing, loan loss provisions, and personnel separations.
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The Servicing and Asset Management segment saw a 7% decline in total segment revenues due to lower investment management fees and placement fees.
Q & A Highlights
Q: In today's current market, could you provide further insight into what you're seeing from investors? Are they underwriting more conservative assumptions due to the macro-outlook? A: William Walker, CEO: We have not seen deal flow fall out due to market volatility, which is surprising given the massive gyrations in the 10-year treasury. Larger transactions are being questioned, but unless someone plans to wait 4 years, they might as well go into the market today. The 10-year treasury's movement is more determinative for volumes than tariffs.