Looking back on thrifts & mortgage finance stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Walker & Dunlop (NYSE: WD) and its peers.

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 13 thrifts & mortgage finance stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 2.1% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.

Walker & Dunlop (NYSE: WD)

Originating as a small mortgage banking firm during the Great Depression in 1937, Walker & Dunlop (NYSE: WD) provides commercial real estate financing, property sales, appraisal, and investment management services with a focus on multifamily properties.

Walker & Dunlop reported revenues of $340 million, flat year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates.

“We closed 2025 with strong momentum across our business after growing total transaction volume each quarter throughout the year from $7 billion in Q1’25 to $18 billion in Q4’25, up 161%” commented Walker & Dunlop Chairman and CEO Willy Walker.

Unsurprisingly, the stock is down 22.1% since reporting and currently trades at $45.87.

Read our full report on Walker & Dunlop here, it’s free.

Best Q4: Arbor Realty Trust (NYSE: ABR)

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $133.4 million, down 12.1% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $7.83.

Is now the time to buy Arbor Realty Trust? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Ladder Capital (NYSE: LADR)

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Ladder Capital reported revenues of $50.47 million, down 26.4% year on year, falling short of analysts’ expectations by 9.2%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ revenue estimates.

Ladder Capital delivered the slowest revenue growth in the group. As expected, the stock is down 7.3% since the results and currently trades at $10.25.

Read our full analysis of Ladder Capital’s results here.

PennyMac Mortgage Investment Trust (NYSE: PMT)

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

PennyMac Mortgage Investment Trust reported revenues of $93.56 million, down 13.3% year on year. This print lagged analysts' expectations by 6.3%. It was a slower quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The stock is down 13.4% since reporting and currently trades at $11.70.

Read our full, actionable report on PennyMac Mortgage Investment Trust here, it’s free.

Flagstar Financial (NYSE: FLG)

Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE: FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.

Flagstar Financial reported revenues of $548 million, down 3% year on year. This result beat analysts’ expectations by 3.2%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

The stock is down 7.5% since reporting and currently trades at $12.53.

Read our full, actionable report on Flagstar Financial here, it’s free.

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