Q4 2025 Altisource Portfolio Solutions SA Earnings Call Transcript
Key Points
- Altisource Portfolio Solutions SA reported a 7% increase in service revenue for 2025, reaching $161.3 million, driven by strong sales wins in both business segments.
- The company's Hubzu inventory grew significantly by 137% since the end of the third quarter, indicating strong performance in foreclosure auction and REO inventory.
- Altisource improved its total company GAAP loss before income taxes to $14.1 million from $32.9 million in 2024, primarily due to lower interest expenses.
- The Origination segment saw a 16% increase in service revenue to $35.2 million, with adjusted EBITDA rising by 19%, reflecting strong growth in the Lenders One business.
- The company ended 2025 with $26.6 million in unrestricted cash, showcasing improved cash management and financial stability.
- Altisource faced a $7.5 million loss from a legacy litigation settlement, impacting its financial results.
- The expiration of the cooperative brokerage agreement with Rithm and the termination of servicing agreements with Onity are expected to reduce service revenue and EBITDA in 2026.
- Corporate segment costs increased by $700,000 in the fourth quarter of 2025, primarily due to foreign currency fluctuations.
- The company reported a corporate adjusted EBITDA loss of $29.3 million for 2025, reflecting higher costs compared to the previous year.
- Despite improvements, Altisource still reported a GAAP loss before income taxes of $8.1 million in the fourth quarter of 2025.
Good day, and thank you for standing by. Welcome to the Altisource Portfolio Solutions fourth quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to Michelle Esterman, Chief Financial Officer. Please go ahead.
Thank you, operator. We first want to remind you that the earnings release and quarterly slides are available on our website at www.altisource.com. These provide additional information investors may find useful.
Our remarks today include forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ. Please review the forward-looking statements section in the company's earnings release and quarterly slides as well as the risk factors contained in our 2025 Form 10-K. These describe some factors that may lead to different results. We
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