SEGMENTS

12 Months Ended

Dec. 31, 2025

SEGMENTS

SEGMENTS

NOTE 8—SEGMENTS

Reportable 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, (b) brokers to certain life insurance companies, and (c) originates through its principal lending and investing activities, and (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 and balances as of and for the years ended December 31, 2025, 2024, and 2023.  

Segment Results and Total Assets (dollars in thousands, except per share data and ratios)	As of and for the year ended December 31, 2025
Revenues		CM			SAM			Corporate			Consolidated
Loan origination and debt brokerage fees, net	$	336,947		$	5,202		$	—		$	342,149
Fair value of expected net cash flows from servicing, net of guaranty obligation		179,681			—			—			179,681
Servicing fees		—			337,442			—			337,442
Property sales broker fees		83,519			—			—			83,519
Investment management fees		—			34,629			—			34,629
Net warehouse interest income (expense)		(5,490)			—			—			(5,490)
Placement fees and other interest income		—			137,864			14,720			152,584
Other revenues		52,293			51,427			6,072			109,792
Total revenues	$	646,950		$	566,564		$	20,792		$	1,234,306
Expenses
Personnel(1)	$	475,286		$	89,552		$	82,971		$	647,809
Amortization and depreciation		4,579			225,640			8,463			238,682
Provision (benefit) for credit losses		—			9,586			—			9,586
Interest expense on corporate debt		17,506			41,345			5,864			64,715
Goodwill impairment		—			—			—			—
Fair value adjustments to contingent consideration liabilities		—			(8,243)			—			(8,243)
Indemnified and repurchased loan expenses		—			40,850			—			40,850
Asset impairments and other expenses		2,742			28,584			5,420			36,746
Other operating expenses		21,162			21,398			82,603			125,163
Total expenses	$	521,275		$	448,712		$	185,321		$	1,155,308
Income (loss) before taxes	$	125,675		$	117,852		$	(164,529)		$	78,998
Income tax expense (benefit)		35,019			32,839			(45,845)			22,013
Net income (loss) before noncontrolling interests and temporary equity holders	$	90,656		$	85,013		$	(118,684)		$	56,985
Less: net income (loss) from noncontrolling interests	$	—		$	(99)		$	—		$	(99)
Less: net income (loss) attributable to temporary equity holders		837			—			—			837
Walker & Dunlop net income (loss)	$	89,819		$	85,112		$	(118,684)		$	56,247
Total assets	$	2,031,815		$	2,425,954		$	601,709		$	5,059,478
Diluted EPS	$	2.62		$	2.48		$	(3.46)		$	1.64
Operating margin		19	%		21	%		(791)	%		6	%

Segment Results and Total Assets (dollars in thousands, except per share data and ratios)	As of and for the year ended December 31, 2024
Revenues		CM			SAM			Corporate			Consolidated
Loan origination and debt brokerage fees, net	$	271,996		$	4,566		$	—		$	276,562
Fair value of expected net cash flows from servicing, net of guaranty obligation		153,593			—			—			153,593
Servicing fees		—			325,644			—			325,644
Property sales broker fees		60,583			—			—			60,583
Investment management fees		—			36,976			—			36,976
Net warehouse interest income (expense)		(8,780)			1,747			—			(7,033)
Placement fees and other interest income		—			153,350			14,611			167,961
Other revenues		47,449			69,366			1,389			118,204
Total revenues	$	524,841		$	591,649		$	16,000		$	1,132,490
Expenses
Personnel(1)	$	399,256		$	83,050		$	76,940		$	559,246
Amortization and depreciation		4,551			226,067			6,931			237,549
Provision (benefit) for credit losses		—			10,839			—			10,839
Interest expense on corporate debt		19,489			43,834			6,363			69,686
Goodwill impairment		33,000			—			—			33,000
Fair value adjustments to contingent consideration liabilities		(39,491)			(10,830)			—			(50,321)
Indemnified and repurchased loan expenses		—			10,573			—			10,573
Asset impairments and other expenses		460			721			—			1,181
Other operating expenses		20,284			31,770			77,182			129,236
Total expenses	$	437,549		$	396,024		$	167,416		$	1,000,989
Income (loss) before taxes	$	87,292		$	195,625		$	(151,416)		$	131,501
Income tax expense (benefit)		20,275			45,437			(35,169)			30,543
Net income (loss) before noncontrolling interests	$	67,017		$	150,188		$	(116,247)		$	100,958
Less: net income (loss) from noncontrolling interests		353			(7,562)			—			(7,209)
Walker & Dunlop net income (loss)	$	66,664		$	157,750		$	(116,247)		$	108,167
Total assets	$	1,407,206		$	2,439,986		$	534,801		$	4,381,993
Diluted EPS	$	1.97		$	4.65		$	(3.43)		$	3.19
Operating margin		17	%		33	%		(946)	%		12	%

Segment Results and Total Assets (dollars in thousands, except per share data and ratios)	As of and for the year ended December 31, 2023
Revenues			CM			SAM			Corporate			Consolidated
Loan origination and debt brokerage fees, net		$	232,625		$	1,784		$	—		$	234,409
Fair value of expected net cash flows from servicing, net of guaranty obligation			141,917			—			—			141,917
Servicing fees			—			311,914			—			311,914
Property sales broker fees			53,966			—			—			53,966
Investment management fees			—			45,381			—			45,381
Net warehouse interest income (expense)			(9,497)			3,864			—			(5,633)
Placement fees and other interest income			—			141,374			13,146			154,520
Other revenues			57,755			59,526			685			117,966
Total revenues		$	476,766		$	563,843		$	13,831		$	1,054,440
Expenses
Personnel(1)		$	375,450		$	74,407		$	64,433		$	514,290
Amortization and depreciation			4,550			214,978			7,224			226,752
Provision (benefit) for credit losses			—			(10,452)			—			(10,452)
Interest expense on corporate debt			18,779			42,489			7,208			68,476
Goodwill impairment			62,000			—			—			62,000
Fair value adjustments to contingent consideration liabilities			(62,500)			—			—			(62,500)
Indemnified and repurchased loan expenses			—			—			—			—
Asset impairments and other expenses			(1,157)			550			—			(607)
Other operating expenses			21,151			28,032			69,101			118,284
Total expenses		$	418,273		$	350,004		$	147,966		$	916,243
Income (loss) before taxes		$	58,493		$	213,839		$	(134,135)		$	138,197
Income tax expense (benefit)			14,824			54,198			(33,996)			35,026
Net income (loss) before noncontrolling interests		$	43,669		$	159,641		$	(100,139)		$	103,171
Less: net income (loss) from noncontrolling interests			2,489			(6,675)			—			(4,186)
Walker & Dunlop net income (loss)		$	41,180		$	166,316		$	(100,139)		$	107,357
Total assets		$	1,193,137		$	2,273,033		$	586,177		$	4,052,347
Diluted EPS		$	1.22		$	4.93		$	(2.97)		$	3.18
Operating margin			12	%		38	%		(970)	%		13	%

(1) Personnel expense is primarily composed of the cost of salaries and benefits, payroll taxes, subjective and objective bonuses, commissions, retention bonuses, and share-based compensation.

Concentrations

The Company is one of the leading commercial real estate services and finance companies in the United States, with a primary focus on multifamily lending. The Company originates a range of multifamily and other commercial real estate loans that are sold to the Agencies or placed with institutional investors. The Company also services nearly all of the loans it sells to the Agencies and some of the loans that it places with institutional investors. The majority of the Company’s operations involve the delivery and servicing of loan products for its customers through its Capital Markets and Servicing & Asset Management reportable segments, respectively. A single customer represented 36.9%, 35.6%, and 34.8% of total revenues for the years ended December 31, 2025, 2024, and 2023, respectively, as reported through the CM and SAM reportable segments.

As of both December 31, 2025 and 2024, no one borrower/key principal accounted for more than 3% of our total risk-sharing loan portfolio.

An analysis of the product concentrations that impact the Company’s debt financing and servicing revenues is shown in the following tables. This information is based on the distribution of the loans sold or serviced for others.

The principal balance of the loans serviced for others, by product, as of December 31, 2025, 2024, and 2023 follows:

	As of December 31,
Loan Servicing Portfolio by Product (in thousands)	2025		2024		2023
Fannie Mae	$	72,708,372	$	68,196,744	$	63,699,106
Freddie Mac		42,595,441		39,185,091		39,330,545
Ginnie Mae-HUD		11,563,020		10,847,265		10,460,884
Other		17,111,320		17,057,912		16,980,989
Total	$	143,978,153	$	135,287,012	$	130,471,524

The volume of debt financing by product for the years ended December 31, 2025, 2024, and 2023 follows:

	For the year ended December 31,
Debt Financing by Product (in thousands)	2025		2024		2023
Fannie Mae	$	9,552,425	$	7,641,161	$	7,021,397
Freddie Mac		8,248,816		5,227,550		4,568,935
Ginnie Mae-HUD		915,524		588,529		678,889
Brokered		22,076,680		16,093,776		11,714,888
Principal Lending and Investing		690,250		603,650		218,750
Total	$	41,483,695	$	30,154,666	$	24,202,859