Financial Analysis

NOTE 12 FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES Fannie Mae DUS Related Commitments Commitments for the origination and subsequent sale and delivery of loans to Fannie Mae represent those mortgage loan transactions where the borrower has locked an interest rate and scheduled closing, and the Company has entered into a mandatory delivery commitment to sell the loan to Fannie Mae. As discussed in NOTE 10, the Company accounts for these commitments as derivatives recorded at fair value. The Company is generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program. The Company is required to secure these obligations by assigning restricted cash balances and securities to Fannie Mae, which are classified as Pledged securities, at fair value on the Consolidated Balance Sheets. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level and considers the balance of the loan, the risk level of the loan, the age of the loan, and the level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. Pledged securities held in the form of money market funds holding U.S. Treasuries are discounted 5% , and Agency MBS are discounted 4% for purposes of calculating compliance with the restricted liquidity requirements. As seen below, the Company held the majority of its pledged secur …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7WAREHOUSE AND CORPORATE NOTES PAYABLE Warehouse Facilities As of December 31, 2025, to provide financing to borrowers under the Agencies programs, the Company had committed and uncommitted warehouse lines of credit in the amount of $3.8 billion with certain national banks and a $1.5 billion uncommitted facility with Fannie Mae (collectively, the Agency Warehouse Facilities). In support of these Agency Warehouse Facilities, the Company has pledged substantially all of its loans held for sale under the Company's approved programs. The Companys ability to originate mortgage loans for sale depends upon its ability to secure and maintain these types of short-term financings on acceptable terms. The interest rate for all the Companys warehouse facilities is based on an Adjusted Term Secured Overnight Financing Rate (SOFR). The interest rate for all our warehouse facilities is based on SOFR. The maximum amount and outstanding borrowings under Warehouse notes payable as of December 31, 2025 and 2024 follow: December 31, 2025 (dollars in thousands) Committed Uncommitted Total Facility Outstanding Facility Amount Amount Capacity Balance Interest rate (1) Agency Warehouse Facility #1 $ 325,000 250,000 575,000 $ 77,825 SOFR plus 1.30% Agency Warehouse Facility #2 700,000 300,000 1,000,000 382,608 SOFR plus 1.30% Agency Warehouse Facility #3 425,000 425,000 850,000 64,403 SOFR plus 1.30% Agency Warehouse Facility #4 150,000 225,000 375,000 122,711 SOFR plus 1.30% to 1.35% Agency War …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Description 2025 2024 2023 Statement of income line item Certain loan origination fees $ 125,922 $ 99,828 $ 71,445 Loan origination and debt brokerage fees, net Property sales broker fees 83,519 60,583 53,966 Property sales broker fees Investment management fees 34,629 36,976 45,381 Investment management fees Investment banking revenues, appraisal revenues, subscription revenues, syndication fees, and other revenues 75,894 67,991 87,417 Other revenues Total revenues derived from contracts with customers $ 319,964 $ 265,378 $ 258,209 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"NOTE 13SHARE-BASED PAYMENT As of December 31, 2025, there were 12.0 million shares of stock authorized for issuance to directors, officers, and employees under the 2024 Equity Incentive Plan, which was approved by the stockholders on May 2, 2024 and constitutes an amendment and restatement of the Companys 2020 Equity Incentive Plan, which entitles recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. As of December 31, 2025, 1.5 million shares remain available for grant under the 2024 Equity Incentive Plan. Under the 2024 Equity Incentive Plan (and predecessor plans), the Company granted stock options to executive officers in the past and restricted shares to executive officers, employees, and non-employee directors during the years presented in the Consolidated Statements of Income, all without cost to the grantee. For the year ended December 31, 2025, the Company granted 0.2 million RSUs to the executive officers and certain other employees in connection with PSPs (performance awards). For both the years ended 2024 and 2023, the Company granted 0.2 million RSUs to the executive officers and certain other employees in connection with PSPs. The Company granted the RSUs at the maximum performance thresholds for each metric each year. As of December 31, 2025, the RSUs issued in connection with the 2025, 2024, and 2023 PSPs are unvested and outstanding. In 2025, the Company issued 0.4 mil …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 9GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Acquisition Activities A summary of the Companys goodwill by reportable segments as of and for the years ended December 31, 2025 and 2024 follows: For the year ended December 31, (in thousands) 2025 2024 Roll Forward of Gross Goodwill CM SAM Consolidated (1) CM SAM Consolidated (1) Beginning balance $ 524,189 439,521 $ 963,710 $ 524,189 $ 439,521 $ 963,710 Additions from acquisitions Measurement-period and other adjustments Ending gross goodwill balance $ 524,189 $ 439,521 $ 963,710 $ 524,189 $ 439,521 $ 963,710 Roll Forward of Accumulated Goodwill Impairment Beginning balance $ 95,000 $ 95,000 $ 62,000 $ $ 62,000 Impairment 33,000 33,000 Ending accumulated goodwill impairment $ 95,000 $ $ 95,000 $ 95,000 $ $ 95,000 Goodwill $ 429,189 $ 439,521 $ 868,710 $ 429,189 $ 439,521 $ 868,710 (1) As of both December 31, 2025 and 2024, no goodwill was allocated to the Corporate reportable segment. The Company did no t recognize any goodwill impairment in connection with its annual impairment evaluation performed on October 1, 2025 compared to $33.0 million of impairment during its October 1, 2024 evaluation. The estimated fair value of one reporting unit in 2024 declined below its carrying value. The Company estimated the fair value of the reporting unit based on discounted cash flow models that utilized significant unobservable inputs and assumptions. Other Intangible Assets The Companys other intangible assets consist primarily …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14INCOME TAXES Income Tax Expense The Company calculates its provision for federal, state, and international income taxes based on current tax law. The reported tax provision differs from the amounts currently receivable or payable because some income and expense items are recognized in different time periods for financial reporting purposes than for income tax purposes. The Company adopted ASU 2023-09 as of December 31, 2025. The adoption of the ASU did not have a material impact on the Companys disclosures. As permitted by the ASU, the Company prospectively adopted the disclosure requirements since the additional disclosures in prior years would not provide material new information or trends to users of the financial statements. The following is a summary of income tax expense for the years ended December 31, 2025, 2024, and 2023: For the year ended December 31, Components of Income Tax Expense (in thousands) 2025 2024 2023 Current Federal $ 20,734 $ 29,389 $ 25,712 State 7,034 5,673 8,401 International 74 (2,019) (285) Total current expense $ 27,842 $ 33,043 $ 33,828 Deferred Federal $ (2,611) $ (1,713) $ 1,250 State (1,271) (125) (434) International (1,947) (662) 382 Total deferred expense (benefit) $ (5,829) $ (2,500) $ 1,198 Total income tax expense $ 22,013 $ 30,543 $ 35,026 The following table presents a reconciliation of the statutory federal tax expense to the income tax expense in the accompanying Consolidated Statements of Income: For the year ended December …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

N OTE 15LEASES Right of use assets and lease liabilities associated with the Companys operating leases are recorded as Other assets and Other liabilities , respectively, in the Consolidated Balance Sheet. As of December 31, 2025, our leases have terms varying in duration, with the longest term ending in 2036. The following table presents information about the Companys lease arrangements: Operating Lease Arrangements (in thousands) For the year ended December 31, Operating Leases 2025 2024 2023 ROU assets $ 76,333 $ 80,024 $ 76,463 Lease liabilities 105,125 107,502 101,358 Weighted-average remaining lease term 8.4 years 9.1 years 9.8 years Weighted-average discount rate 4.8% 4.6% 4.0% Operating Lease Expenses Single lease costs $ 16,110 $ 16,061 $ 14,150 Cash paid for amounts included in the measurement of lease liabilities 16,098 14,761 12,406 Right-of-use assets obtained in exchange for new lease obligations 6,056 10,655 16,798 Maturities of lease liabilities as of December 31, 2025 are presented below (in thousands): Year Ending December 31, 2026 $ 17,500 2027 17,477 2028 15,797 2029 13,399 2030 12,012 Thereafter 51,246 Total lease payments $ 127,431 Less imputed interest (22,306) Total $ 105,125 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted and Recently Announced Accounting Pronouncements The Company is currently evaluating the following Accounting Standards Updates (ASUs): Standard Description Date of Adoption 2024-03-Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses Requires disaggregation of expense categories within an entitys statement of income January 1, 2027 2025-05-Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets Introduces a practical expedient for measuring credit losses for accounts receivable under Topic 326. January 1, 2026 2025-06-Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software Clarifies the starting point for capitalization of software costs. January 1, 2028 2025-08-Financial Instruments-Credit Losses (Topic 326): Purchased Loans Requires the gross-up approach for seasoned acquired financial assets similar to the accounting for purchased credit deteriorated financial assets. January 1, 2027 2025-09-Derivatives and Hedging (Topic 815): Hedge Accounting Improvements Addresses hedge accounting issues that will allow entities to achieve and maintain hedge accounting. January 1, 2028 2025-11-Interim Reporting (Topic 270): Narrow-Scope Improvements Clarifies interim disclosure requirements by providing a comprehensive list of requir …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 19RELATED PARTY TRANSACTION The Company, through its WDAE subsidiaries, has related party loans with its affordable housing project partners, which include property developers and managers. To facilitate the development of affordable housing projects prior to syndication into a tax credit fund, the Company extends pre-development and working capital loans to its partners in affordable housing project partnerships. The outstanding balance of these loans was $193.4 million and $137.0 million as of December 31, 2025 and 2024, respectively, and the related interest income was $12.5 million for the year ended December 31, 2025 and was insignificant for the year ended December 31, 2024. The balance of these receivables is included as Receivables, net in the Consolidated Balance Sheets. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8SEG MENTS Reportable Segments The Companys executive leadership team, which functions as the Companys chief operating decision making body (CODM), makes decisions and assesses performance based on the financial measures disclosed below for each of the following three reportable segments. The reportable segments are determined based on the product or service provided and reflect the manner in which management is currently evaluating the Companys financial information. (i) Capital Markets (CM) CM provides a comprehensive range of commercial real estate finance products to the Companys customers, including Agency lending, debt brokerage, property sales, and appraisal and valuation services. The Companys long-established relationships with the Agencies and institutional investors enable CM to offer a broad range of loan products and services to the Companys customers, including first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, and small-balance loans. CM provides property sales services to owners and developers of multifamily properties and commercial real estate and multifamily property appraisals for various lenders and investors. CM also provides real estate-related investment banking and advisory services, including housing market research. As part of Agency lending, CM temporarily funds the loans it originates (loans held for sale) before selling them to the Agencies and earns net interest income on the spread between the interest i …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Walker & Dunlop, Inc., its wholly owned subsidiaries, and its majority owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. The Company consolidates entities in which it has a controlling financial interest based on either the variable interest entity (VIE) or the voting interest model. The Company is required to first apply the VIE model to determine whether it holds a variable interest in an entity, and if so, whether the entity is a VIE. If the Company determines it holds a variable interest in a VIE and has a controlling financial interest as it is considered the primary beneficiary, the Company consolidates the entity. In instances where the Company holds a variable interest in a VIE but is not the primary beneficiary, it then applies the voting interest model. Under the voting interest model, the Company consolidates an entity when it holds a majority voting interest in an entity. If the Company does not have a majority voting interest but has significant influence, it uses the equity method of accounting. In instances where the Company owns less than 100% of the equity interests of an entity but owns a majority of the voting interests or has control over an entity, the Company accounts for the portion of equity not attributable to Walker & Dunlop, Inc. as Noncontrolling interests on …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing