Shares of Walker & Dunlop (WD) plummeted 7.39% in early trading on Thursday following the release of its third-quarter 2025 financial results. The commercial real estate finance company reported earnings that fell short of analyst expectations, overshadowing positive revenue growth and increased transaction volumes.

Walker & Dunlop reported earnings per share (EPS) of $0.98 for the quarter ended September 30, significantly below the mean expectation of $1.17 from three analysts. This disappointing result came despite a 15.5% year-over-year increase in revenue to $337.68 million, which surpassed the analyst consensus of $321.52 million. The company's adjusted EPS of $1.22 did beat its own guidance, but this was not enough to offset investor concerns about the earnings miss.

Despite the negative market reaction, Walker & Dunlop highlighted some positive aspects of its performance. Total transaction volume grew by 34% year-over-year to $15.5 billion, driven by growth across all transaction types in an active commercial real estate financing market. The company's servicing portfolio also expanded by 4% compared to the previous year, reaching $139.3 billion. However, these achievements were not sufficient to prevent the sharp decline in stock price, as investors appeared to focus on the bottom-line performance relative to expectations.