Altisource Announces Second Quarter 2025 Financial Results

Company Overview - Altisource Portfolio Solutions S.A. reported financial results for the second quarter of 2025, highlighting growth in service revenue, adjusted EBITDA, and net income compared to the same quarter in 2024 [1][2][5] - The company experienced a significant increase in net income attributable to Altisource, reaching $16.6 million, which is $24.9 million higher than the same quarter of 2024 [5][8] Financial Performance - Service revenue for the second quarter of 2025 was $40.8 million, an increase of $3.9 million or 11% compared to the second quarter of 2024 [5][7] - Adjusted EBITDA for the second quarter was $5.4 million, representing a 19% increase from the same quarter in 2024 [5][8] - Diluted earnings per share rose to $1.48, a significant increase of $3.81 compared to the same quarter of 2024 [5][8] Operational Highlights - The company ended the quarter with $30.0 million in cash and cash equivalents [5] - A share consolidation was executed at a ratio of 1-for-8, reducing the total number of issued and outstanding shares from 88,129,766 to 11,016,220 [5] - The adjusted EBITDA margin improved to 13.2%, up from 11.9% in the same quarter of 2024 [5] Industry Context - Industrywide foreclosure initiations increased by 22% for the five months ended May 31, 2025, compared to the same period in 2024 [5][8] - Mortgage origination volume across the industry rose by 14% for the six months ended June 30, 2025, driven by a 58% increase in refinancing origination [8] - The company is well-positioned to benefit from potential increases in loan delinquencies and foreclosure activities, which could enhance revenue and adjusted EBITDA growth in its countercyclical businesses [3][5]