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Altisource Announces Third Quarter 2025 Financial Results

Core Viewpoint - Altisource Portfolio Solutions S.A. reported solid financial performance for the third quarter of 2025, with growth in service revenue and improvements in earnings metrics compared to the same period in 2024 [2][5]. Company Financial Performance - Service revenue for Q3 2025 was $39.7 million, an increase of $1.5 million or 4% from Q3 2024 [5][6]. - The net loss attributable to Altisource was $2.4 million, representing a $7.0 million improvement compared to the same quarter of 2024 [5][6]. - Diluted loss per share improved to $(0.22), a $2.39 improvement from the same quarter in 2024 [5][6]. - Adjusted EBITDA for Q3 2025 was $3.6 million, roughly flat compared to Q3 2024, with an adjusted EBITDA margin of 9.1%, down from 9.5% in the same quarter of 2024 [5][6]. - The company ended the quarter with $28.6 million in cash and cash equivalents [5]. Business Segments Performance - Adjusted EBITDA in the Servicer and Real Estate and Origination segments improved to $10.9 million, or 27.5% of service revenue, compared to $10.8 million, or 28.3% of service revenue in Q3 2024 [5]. - The company generated sales wins estimated to represent potential annualized service revenue of $3.2 million for the Servicer and Real Estate segment and $11.2 million for the Origination segment [5][6]. Industry Context - Industrywide foreclosure initiations were 19% higher for the eight months ended August 31, 2025, compared to the same period in 2024 [5]. - Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025, driven by a 4% decline in purchase origination and a 103% increase in refinancing origination [5].