Walker & Dunlop (WD) Q3 2024 earnings summary

Executive summary

• Q3 2024 total transaction volume reached $11.6 billion, up 36% year-over-year, driving a 34% increase in net income to $28.8 million and a 33% rise in diluted EPS to $0.85 per share.

• Strong property sales, GSE lending, and technology-enabled business lines like Apprise and Small Balance Lending contributed to revenue growth.

• Servicing portfolio expanded 4% year-over-year to $134.1 billion, supporting robust cash generation.

• Investments in people, brand, and technology position the company for continued top- and bottom-line growth.

• Quarterly dividend of $0.65 per share declared for Q4 2024.

Financial highlights

• Q3 2024 revenues increased 9% year-over-year to $292.3 million, with adjusted EBITDA up 7% to $78.9 million and adjusted core EPS up 7% to $1.19.

• Year-to-date 2024 total transaction volume was $26.5 billion, up 12% from 2023; adjusted EBITDA up 10% to $234 million and adjusted core EPS up 11% to $3.60.

• Year-to-date net income was $63.3 million, down 16% year-over-year; diluted EPS down 17% to $1.87.

• Operating margin for Q3 2024 increased to 13% from 10% in Q3 2023; return on equity rose to 7%.

• MSR revenue rose 23% year-over-year due to higher GSE loan volumes.

Outlook and guidance

• Management expects continued growth as the commercial real estate market enters a new cycle, with increased refinancing and capital deployment anticipated.

• Targeting full-year growth in diluted EPS, adjusted EBITDA, and adjusted core EPS in the mid-single digits to low teens.

• Q4 momentum and a strong pipeline are expected to offset a $4–$5 million decline in net interest earnings due to lower Fed funds rate.

• Guidance remains subject to market and interest rate volatility, CRE asset demand, and macroeconomic/geopolitical factors.

• The Mortgage Bankers Association forecasts a 25% increase in multifamily lending for 2024, supporting continued growth in property sales and GSE lending.