Walker & Dunlop's Q2 2025: Dissecting Contradictions in Market Trends, Expenses, and Deal Activity

Transaction Volume Surge:
- Walker & Dunlop reported a significant increase in total transaction volume to $14 billion in Q2 2025, up 65% year-over-year and over twice the volume in Q1 2025.
- This was driven by strong demand in commercial real estate, particularly in multifamily, due to the need to recycle capital and deploy funds raised before the Great Tightening.

Multifamily Sector Performance:
- The multifamily sector experienced record absorption of 227,000 units in Q2 2025 and 794,000 units over the past year.
- This was attributed to unaffordable single-family housing, leading to increased demand for rental units and apartment construction collapse.

Earnings and Financial Metrics:
- GAAP earnings per share increased by 48% to $0.99, while adjusted EBITDA and adjusted core EPS declined by 5% and 7%, respectively.
- The decline in adjusted metrics was due to a 100 basis point decrease in short-term interest rates, which pressured escrow earnings.

GSE Market Share and Lending Growth:
- Walker & Dunlop's year-to-date GSE market share increased to 11.4%, with Q2 lending volume reaching $4.9 billion, the highest in 11 quarters.
- This growth is attributed to both Fannie Mae and Freddie Mac's active presence in the market, aiming to hit their multifamily caps.

Europe Expansion Strategy:
- Walker & Dunlop opened a new office in London, marking their entry into the European market.
- The expansion is aimed at growing the company's brand globally by leveraging its established reputation and seizing investment opportunities in Europe.