Commercial real estate finance company Walker & Dunlop (NYSE: WD) fell short of the market’s revenue expectations in Q4 CY2025, with sales flat year on year at $340 million. Its non-GAAP profit of $0.28 per share was 80.8% below analysts’ consensus estimates.
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Walker & Dunlop (WD) Q4 CY2025 Highlights:
- Revenue: $340 million vs analyst estimates of $343.5 million (flat year on year, 1% miss)
- Adjusted EPS: $0.28 vs analyst expectations of $1.46 (80.8% miss)
- Market Capitalization: $2.01 billion
“We closed 2025 with strong momentum across our business after growing total transaction volume each quarter throughout the year from $7 billion in Q1’25 to $18 billion in Q4’25, up 161%” commented Walker & Dunlop Chairman and CEO Willy Walker.
Company Overview
Originating as a small mortgage banking firm during the Great Depression in 1937, Walker & Dunlop (NYSE: WD) provides commercial real estate financing, property sales, appraisal, and investment management services with a focus on multifamily properties.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, Walker & Dunlop’s revenue grew at a sluggish 2.6% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a rough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Walker & Dunlop’s annualized revenue growth of 8.2% over the last two years is above its five-year trend, which is encouraging. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Walker & Dunlop missed Wall Street’s estimates and reported a rather uninspiring 0.4% year-on-year revenue decline, generating $340 million of revenue.
Net interest income made up -4% of the company’s total revenue during the last five years, meaning Walker & Dunlop is well diversified and has a variety of income streams driving its overall growth. Nevertheless, net interest income is critical to analyze for banks because they’re considered a higher-quality, more recurring revenue source by investors.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.
Key Takeaways from Walker & Dunlop’s Q4 Results
We struggled to find many positives in these results. Its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $58.91 immediately after reporting.
Walker & Dunlop didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
