Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to Q3 2024, driven by growth in various business segments [4][5] - GAAP earnings per share and cash flow from operations improved, with a pre-tax loss of $1.7 million, an improvement of $6.8 million from the previous year [5][11] - Adjusted EBITDA was flat at $3.6 million, with a slight increase in adjusted EBITDA for the service earning real estate segment to $10 million, up 1% from the previous year [5][8] Business Line Data and Key Metrics Changes - The service earning real estate segment generated $31.2 million in revenue, a 3% increase from Q3 2024, while adjusted EBITDA margins declined to 32.1% due to a revenue mix shift [7][8] - The origination segment saw a 9% increase in service revenue to $8.5 million, but adjusted EBITDA remained flat at $900,000, with margins declining to 10.3% [9][10] Market Data and Key Metrics Changes - The residential mortgage default market showed 90-plus-day mortgage delinquency rates at 1.3%, with foreclosure starts increasing by 19% and sales by 10% year-over-year [11][12] - The real estate market is perceived to be weakening, indicated by higher inventory and extended sales timelines, affecting the percentage of homes sold at foreclosure auctions [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as renovation and risk management services [5][6] - There is an emphasis on maintaining cost discipline while pursuing growth opportunities in a low delinquency environment, positioning the company for potential revenue increases if market conditions change [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the third-quarter performance and the potential for continued growth, highlighting a strong sales pipeline and new business wins [13][17] - The company is well-positioned to benefit from increased loan delinquencies and foreclosure activity, which could enhance revenue and adjusted EBITDA in countercyclical businesses [14] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but the company continues to manage REO and receive referrals [9] - The company won four new customers for the Equator platform, which are expected to generate additional revenue as they load more assets [15] Q&A Session Summary Question: Are the new customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that three of the four new customers are live and loading properties, which should generate revenue and facilitate cross-selling with Hubzu Marketplace [15]

Core Viewpoint - The company has received a demand letter from the lender's legal advisor, requiring immediate repayment of outstanding loans due to failure to meet the repayment schedule [1] Group 1 - The company is required to repay a total of HKD 102 million, which includes principal, accrued interest, overdue interest, and other fees [1] - The demand letter indicates that the company's shares have been suspended from trading since February 19, 2025 [1] - The resignation of Mr. Zhang as the executive director since November 13, 2024, has triggered a default event under the loan agreement [1] Group 2 - The lender has stated that if the company fails to comply with the demand, legal actions may be taken, including lawsuits to recover the debt and enforcement of collateral [1]