Walker & Dunlop, Inc. reported a significant rebound in the second quarter of 2025, with total transaction volume surging 65% year-over-year to $13.95 billion. This growth drove total revenues up 18% to $319.24 million compared to Q2 2024.
Diluted earnings per share (EPS) for Q2 2025 increased 48% to $0.99. While GAAP earnings benefited significantly from non-cash Mortgage Servicing Rights (MSRs), adjusted EBITDA declined 5% to $76.81 million, and adjusted core EPS fell 7%, primarily due to a 100-basis point decrease in short-term interest rates.
For the first half of 2025, total transaction volume grew 41% to $20.99 billion, with revenues up 12% to $556.61 million and diluted EPS rising 5% to $1.07. The Servicing & Asset Management (SAM) segment's servicing portfolio grew 3% year-over-year to $137.35 billion, and assets under management (AUM) increased 6% to $18.62 billion.
Management reiterated its full-year 2025 guidance, projecting diluted EPS growth in the high single digits to double digits, and adjusted EBITDA and adjusted core EPS to be flat to up in the high single digits. This outlook reflects anticipation of non-cash MSR earnings from Capital Markets outpacing cash-driven placement fees from SAM.
CEO Willy Walker highlighted over $1 trillion of real estate-focused equity capital needing to be recycled or deployed, alongside nearly $1 trillion of commercial real estate debt maturing in 2025. He pointed to structural tailwinds in the multifamily sector, including record absorption of 227,000 units in Q2 2025 and anticipated undersupply in 2026-2027, as key drivers for future growth.
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