Tue, May 6, 8:04 PM (9 days ago)
### Summary of Walker & Dunlop, Inc. (WD) Q1 2025 Financial Performance **Ticker:** WD **Quarter Ended:** March 31, 2025 **Revenue:** $237.4 million, up 4% from Q1 2024. **Net Income:** $2.75 million, down 77% from $11.87 million in Q1 2024. **Earnings per Share (EPS):** $0.08, down from $0.35 in Q1 2024. **Key Financial Metrics:** - **Operating Margin:** 2%, down from 6% in Q1 2024. - **Return on Equity:** 1%, down from 3% in Q1 2024. - **Adjusted EBITDA:** $64.97 million, down 12% from $74.14 million in Q1 2024. **Segment Performance:** - **Capital Markets:** Revenue $102.57 million, up 25%; Net Income $2.36 million, up from a loss of $6.70 million in Q1 2024. - **Servicing & Asset Management:** Revenue $131.90 million, down 7%; Net Income $19.13 million, down 56%. - **Corporate:** Revenue $2.89 million, down 41%; Net Income loss of $18.73 million, improved from a loss of $24.72 million in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** Negative $281.11 million, down from positive $38.40 million in Q1 2024. - **Investing Cash Flow:** Negative $39.38 million, down from negative $25.05 million in Q1 2024. - **Financing Cash Flow:** Positive $222.03 million, up from negative $124.15 million in Q1 2024. **Balance Sheet Highlights:** - **Total Assets:** $4.51 billion, up from $3.83 billion in Q1 2024. - **Total Liabilities:** $2.77 billion, up from $2.62 billion in Q1 2024. - **Stockholders' Equity:** $1.74 billion, up from $1.76 billion in Q1 2024. **Trends and Uncertainties:** - **Interest Rates & Cost of Capital:** Stabilizing but elevated, impacting transaction volumes and capital markets activity. - **Capital Availability:** Abundant but selective, with a preference for high-quality assets. - **Multifamily Rent Growth & Asset Values:** Slowing rent growth but improving operating fundamentals. - **Macroeconomic Considerations:** Low unemployment and stable vacancies, but uncertainty around trade policies. **Future Operations Impact:** - **Growth Strategy:** Focus on small-balance multifamily lending and technology investments. - **Liquidity and Capital Resources:** Adequate to meet short-term needs and obligations. **Conclusion:** Walker & Dunlop, Inc. faced challenges in Q1 2025, with a significant drop in net income and operating cash flow. However, the company showed resilience in its Capital Markets segment and maintained a strong balance sheet. The outlook remains cautious due to macroeconomic uncertainties, but the company's strategic focus on technology and small-balance lending positions it for potential growth.