Thrifts & Mortgage Finance Stocks Q1 Teardown: Walker & Dunlop (NYSE:WD) Vs The Rest

July 14, 2025 at 23:36 PM EDT

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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Walker & Dunlop (NYSE: WD) and the best and worst performers in the thrifts & mortgage finance industry.

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 22 thrifts & mortgage finance stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 17.7%.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average 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 $237.4 million, up 4.1% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a miss of analysts’ tangible book value per share estimates.

“2025 began with continued improvement in transaction volumes and revenues, up 10% and 4%, respectively, from Q1 2024, as the US commercial real estate market began to transition from higher rates and dramatically lower transaction activity to the beginning of the next investment cycle," commented Walker & Dunlop Chairman and CEO Willy Walker.

Interestingly, the stock is up 3.4% since reporting and currently trades at $76.36.

Is now the time to buy Walker & Dunlop? Access our full analysis of the earnings results here, it’s free.

Best Q1: Northwest Bancshares (NASDAQ: NWBI)

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Northwest Bancshares reported revenues of $156.2 million, up 19% year on year, outperforming analysts’ expectations by 9.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.

The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $13.53.

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

Weakest Q1: 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 $51.28 million, down 18.9% year on year, falling short of analysts’ expectations by 7.1%. 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’ EPS estimates.

Interestingly, the stock is up 5% since the results and currently trades at $11.19.

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

Rithm Capital (NYSE: RITM)

Evolving from a mortgage-focused REIT to a diversified asset manager with its 2023 acquisition of Sculptor Capital, Rithm Capital (NYSE: RITM) is a global asset manager focused on real estate, credit, and financial services that invests in mortgage servicing rights, residential properties, and loan portfolios.

Rithm Capital reported revenues of $565.8 million, down 31.9% year on year. This number came in 35.1% below analysts' expectations. Overall, it was a slower quarter as it also produced a miss of analysts’ tangible book value per share estimates.

The stock is flat since reporting and currently trades at $11.77.

Read our full, actionable report on Rithm Capital here, it’s free.

Mr. Cooper Group (NASDAQ: COOP)

Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ: COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.

Mr. Cooper Group reported revenues of $560 million, flat year on year. This print missed analysts’ expectations by 9.1%. It was a disappointing quarter as it also recorded a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.

The stock is up 12.9% since reporting and currently trades at $149.01.

Read our full, actionable report on Mr. Cooper Group here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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