Walker & Dunlop Q2 Revenue Misses by 9%, Net Income Plunges 91% on Legacy Loan Charges
WD sits 25% above its 52-week low of $42.115.
Summary
Q2 revenue fell 4% to $306.7M, missing consensus by $30.7M, as a shift toward brokered transactions reduced mortgage servicing rights income. Adjusted core EPS of $1.19 beat estimates, but net income collapsed 91% due to $23.2M in charges tied to legacy loan repurchases from previously identified fraudulent sponsors. The company expects to exit the remaining repurchased loan portfolio by early 2027 and sees significant GSE lending capacity for the rest of 2026. This follows a strong Q1 where EPS surged 475% and a $75M buyback was initiated, making the Q2 revenue miss and charge-driven profit drop a sharp reversal. The brokered volume growth of 17% signals expanded capital relationships, but the mix shift is pressuring near-term earnings quality.
At the time of this announcement, WD was trading at $52.54 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $42.12 to $90.00. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.