Walker & Dunlop posts Q3 loss on accelerated resolution of legacy loan repurchases
WD•Walker & Dunlop reported a Q3 net loss of $37.30 million, or $1.15 per share, as it accelerated the resolution of legacy loan repurchases. Revenue fell 12% year over year to $298.40 million, missing the $324.47 million consensus estimate.
1. Quarterly results
Walker & Dunlop reported Q3 revenue of $298.40 million, down 12% year over year and below the $324.47 million consensus estimate. The company posted a net loss of $37.30 million, or $1.15 per share, while adjusted EPS was $0.92, below the $1.40 estimate.
2. Portfolio and outlook
Charges tied to the accelerated resolution of legacy loan repurchases and indemnifications related to GSE investigations drove the loss. The servicing portfolio grew 5% year over year to $146.6 billion. The company expects to dispose of its remaining repurchased and non-performing assets by early 2027; its CEO cited an opportunity as $1 trillion in multifamily loans mature over the next four years.
