Walker & Dunlop's stock tumbled 7.23% during Thursday's intraday session following the release of its fourth-quarter 2025 financial results, which significantly missed analyst expectations and revealed a net loss.

The commercial real estate finance firm reported a net loss of $13.9 million for the quarter, a sharp reversal from net income in the prior-year period. Adjusted earnings per share came in at $0.28, well below the consensus estimate of $1.23, while revenue of $340.0 million also fell short of expectations.

The disappointing results were driven by $66.2 million in expenses, primarily tied to asset impairment charges for underperforming assets slated for sale and costs from indemnified and repurchased loans. Furthermore, defaulted loans surged to $158.8 million, a more than threefold increase from $41.7 million a year ago, highlighting heightened credit risk in its portfolio.