Walker & Dunlop, Inc.

Walker & Dunlop reported Q1 2026 total revenues of $301 million, up 27% year over year, diluted EPS of $0.46, up 475%, and adjusted EBITDA of $74 million, up 14%. Total transaction volume was $13.7 billion, up 94%; debt originations were $11.8 billion, agency lending was $5.2 billion, brokered debt volumes were $6.5 billion, and investment sales were $1.9 billion, up 4%. In Capital Markets, revenue was $162 million, up 58%, while SAM revenue was $138 million, up 5%; servicing fees were $85 million, up 4%. For guidance, management said it remains confident in achieving full-year 2026 guidance, with a healthy second-quarter pipeline and expectations that capital markets activity will improve as rates stabilize.

Willy Walker described the quarter as evidence that Walker & Dunlop is benefiting from active commercial real estate capital markets and from its brand, people, and technology. He emphasized that current market volatility is pushing many borrowers toward shorter-term refinancing rather than immediate sales, which he sees as a source of near-term transaction volume. He also framed the company’s new five-year 'journey to 30' plan around growing transaction volume and reaching $2 billion of revenue by 2030, while continuing to invest in talent, technology, and new asset classes.

Greg Florkowski focused on the strong operating leverage in the business, citing Capital Markets revenue of $162 million and noting personnel expense fell to 68% of segment revenue from 84% a year ago. He said servicing assets grew to $146 billion and that SAM produced $112 million of adjusted EBITDA despite about $10 million of incremental repurchase-related and credit expenses. He also highlighted $193 million of cash on the balance sheet, $13 million spent to repurchase 283,000 shares at a weighted average price of $47.13, $62 million of remaining buyback capacity, and a quarterly dividend of $0.68 per share.

Analysts focused on the mix between 5-year and 10-year financing, and management said the recent roughly 50 basis point rise in long rates has pushed borrowers toward shorter maturities for now. Questions also centered on the drivers of volume growth, and management said the strength is mainly refinancing rather than acquisitions, with sales activity only modestly higher and many owners choosing short-term refinancings to preserve optionality. On the repurchase issue, management confirmed the remaining portfolios have been resolved through repurchase or indemnification agreements and said Freddie Mac’s review is still ongoing but should be completed in the near future. Analysts also asked about HUD, and management said the pipeline is strong and supported by faster processing and improved competitiveness at HUD.