WDMEDIUM SIGNALFINANCIAL10-K

WD experienced a meaningful decline in net income despite improved operating performance, while expanding its balance sheet and clarifying risk-sharing obligations with Fannie Mae.

The disconnect between improved operating income and substantially lower net income suggests significant non-operating charges or tax impacts that warrant investor scrutiny. The company appears to be growing its lending operations given the expansion in total assets and liabilities, while maintaining measured share repurchase activity.

Comparing 2026-02-26 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

WD's financial performance presents a mixed picture with operating income growing meaningfully to $56.7M while net income declined substantially to $56.2M, indicating significant non-operating headwinds. The balance sheet expanded notably with total assets growing 15.5% to $5.1B and liabilities increasing 26.4% to $3.3B, reflecting the company's continued lending growth. Share buybacks modestly decreased to $10.5M, suggesting disciplined capital allocation amid the challenging earnings environment.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-48%
$108.2M$56.2M

Net income declined 48% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
+41.2%
$40.1M$56.7M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Total Liabilities
Balance Sheet
+26.4%
$2.6B$3.3B

Liabilities increased 26.4% — monitor debt-to-equity ratio and interest coverage.

Share Buybacks
Cash Flow
-15.6%
$12.4M$10.5M

Buyback activity reduced 15.6% — capital being redeployed elsewhere or cash conservation underway.

Total Assets
Balance Sheet
+15.5%
$4.4B$5.1B

Asset base grew 15.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-25
ADDED
As of January 31, 2026, there were 34,060,397 total shares of common stock outstanding.
While forward-looking statements reflect our good-faith projections, assumptions, and expectations, they do not guarantee future results.
Additionally, 19%, 20%, and 22% of total transaction volumes came from new customers for the years ended December 31, 2025, 2024, and 2023, respectively.
For loans originated pursuant to the Fannie Mae DUS program, we generally are required to share the risk of loss, with our maximum loss capped at 20% of the loan amount at origination, except for rare instances when we negotiate a cap that may be higher, including up to 100% of a loan s unpaid principal balance or lower for loans with unique attributes.
For more information regarding our risk-sharing agreements with Fannie Mae, see Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Credit Quality, Allowance for Risk-Sharing Obligations, and Loan Repurchases below.
In addition to identifying potential borrowers and key principals (the individual or individuals directing the activities of the borrowing entity), our correspondents assist us in evaluating loans, including pre-screening the borrowers, key principals, and properties for program eligibility, coordinating due diligence, and generally providing market intelligence.
At times, we may agree to indemnify the relevant Agency pursuant to a forbearance and indemnification agreement.
See Management s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources Credit Quality, Allowance for Risk-Sharing Obligations, and Loan Repurchases below for additional details.
We have broadened the types of assets we sell, increased the number of property sales brokers, and expanded the geographical reach of this platform through hiring and acquisitions and intend to continue this expansion in support of our growth strategy.
Life insurance companies, whose loans we may service, may perform some or all of the activities identified in the list above.
REMOVED
As of January 31, 2025, there were 33,798,252 total shares of common stock outstanding.
While forward-looking statements reflect our good-faith projections, assumptions, and expectations, they are not guarantees of future results.
Additionally, 20%, 22%, and 24% of total transaction volumes coming from new customers for the years ended December 31, 2024, 2023, and 2022, respectively.
For loans originated pursuant to the Fannie Mae DUS program, we generally are required to share the risk of loss, with our maximum loss capped at 20% of the loan amount at origination, except for rare instances when we negotiate a cap that may be higher or lower for loans with unique attributes.
For more information regarding our risk-sharing agreements with Fannie Mae, see Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Credit Quality and Allowance for Risk-Sharing Obligations below.
This network of correspondents helps us extend our geographic reach into new and/or smaller markets on a cost-effective basis; however, we do not source a material proportion of our total originations from correspondents.
See Management s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources Credit Quality and Allowance for Risk-Sharing Obligations below for additional details.
Private Client (Small Balance) Lending We generally define private clients in the multifamily sector as customers that operate less than 2,000 units.
Private clients make up a substantial portion of the ownership of multifamily assets in the United States.
As part of our overall growth strategy, we are focused on significantly growing and investing in our private client, or small-balance, multifamily lending platform, which involves a high volume of transactions with smaller loan balances.
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