Q2 2025 Walker & Dunlop Inc Earnings Call Transcript
Key Points
- Walker & Dunlop Inc (WD) reported a significant increase in transaction volume, reaching $14 billion in Q2 2025, up 65% from Q2 2024.
- The company's diluted earnings per share increased by 48% year-over-year, reaching $0.99.
- WD's GSE lending volume reached $4.9 billion, marking the highest GSE volume in 11 quarters.
- The multi-family sector is well-positioned, with record absorption of 227,000 units in Q2 2025, driven by a 2.7% growth in renter households.
- WD's technology-enabled businesses, including small balance lending and appraisals, showed strong growth, with appraisal revenues up 61% and small balance lending revenue up 99%.
- Adjusted EBITDA declined by 5% in Q2 2025, and adjusted core EPS declined by 7%, primarily due to a 100 basis point decrease in short-term rates.
- Investment management fees were down 49% in Q2 2025, partly due to fewer affordable asset dispositions.
- Total SAM revenues declined by 5% in Q2 2025, primarily due to a 12% decrease in placement fees tied to lower Fed funds rates.
- The company recognized a $1.8 million provision for loan losses related to updated valuations for previously defaulted loans.
- Despite strong transaction volumes, the growth in adjusted metrics continues to lag GAAP earnings growth due to lower short-term interest rates.
Good day and welcome to the Second Quarter 2025 Walker & Dunlop Incorporated Earnings Call. Today's conference is being recorded at this time. I would like to turn the conference over to Kelsey Duffey. Please go ahead.
Thank you and good morning, everyone. Thank you for joining Walker & Dunlop Second Quarter 2025 Earnings Call. I have with me this morning our Chairman and CEO, Willy Walker; and our CFO, Greg Florkowski.
This call is being webcast live on our website, and a recording will be available later today. Both our earnings press release and website provide details on accessing the archive webcast. This morning, we posted our earnings release and presentation to the Investor Relations section of our website, www.walkerdunlop.com. These slides serve as a reference point for some of what Willy and Greg will touch on during the call.
Please also note that we will reference the non-GAAP
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