Financial Data and Key Metrics Changes - The company reported a year-over-year increase in Adjusted EBITDA of $24.8 million, or 22.2%, for Fiscal 2025 [5][11] - Net income for Fiscal 2025 was $73.5 million, an increase of $38.2 million compared to the prior year [11] - The Adjusted EBITDA loss for the fourth quarter increased by $3.3 million to $33 million [9] Business Line Data and Key Metrics Changes - Home heating oil and propane volume increased by 29 million gallons, or 12%, to 283 million gallons for Fiscal 2025 [9][10] - Product gross profit rose by $57 million, or 12%, to $525 million due to increased volume and higher margins [10] - Installation and service revenue grew nearly 10% over Fiscal 2024 [4] Market Data and Key Metrics Changes - Temperatures in the company's operational areas were 8% colder than the prior year but 8% warmer than normal [9] - The company experienced a modest rise in net customer attrition, although internal customer satisfaction indicators improved [5][22] Company Strategy and Development Direction - The company aims to grow and diversify by continuing acquisitions in heating oil and propane, while managing customer attrition [6][12] - The acquisition program remains a key component of the business strategy, with four transactions completed in Fiscal 2025 [5][6] Management's Comments on Operating Environment and Future Outlook - Management noted the difficulty in predicting the impact of the regulatory environment, particularly in New York, on future operations [16] - The company is actively reviewing its sales and marketing strategies to attract more customers amid lower real estate activity [22] Other Important Information - The company invested approximately $81 million in acquisitions and $16 million in unit repurchases during Fiscal 2025 [6] - Delivery, branch, and G&A expenses rose by $36.6 million, largely due to recent acquisitions [10] Q&A Session Summary Question: Thoughts on the regulatory environment in New York - Management stated it is difficult to predict the impact of the regulatory environment as many plans are still in flux [16] Question: Customer attrition trends and future outlook - Management acknowledged lower customer gains and higher losses, attributing this to low prospect activity and a lack of disruptive weather [22] Question: Acquisition pipeline and free cash flow concerns - Management confirmed an active acquisition pipeline with several smaller opportunities and addressed concerns about lower-than-expected free cash flow due to working capital tied up in receivables and inventory [24][26]

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] - Adjusted EBITDA was flat at $3.6 million, with service revenue growth offset by lower business segment margins [5] - The pre-tax loss improved by $6.8 million to a loss of $1.7 million in Q3 2025, primarily due to lower interest expenses [5][11] 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, with adjusted EBITDA of $10 million, reflecting a slight margin decline [7][8] - The origination segment saw service revenue rise by 9% to $8.5 million, but adjusted EBITDA remained flat at $900,000, with a decline in margins [9][10] Market Data and Key Metrics Changes - The residential mortgage default market showed 90+ 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 [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] - The strategy includes maintaining cost discipline while capitalizing on countercyclical business opportunities as market conditions evolve [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third-quarter results and the potential for continued growth, particularly in businesses that are expected to benefit from increasing loan delinquencies and foreclosure activity [13][14] - The company is well-positioned to leverage its strengths in a changing market environment, anticipating stronger revenue and adjusted EBITDA growth [14] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but Altisource continues to manage REO and receive referrals [9] - The company won new business that is expected to generate $3.2 million in annual service revenue, with a significant sales pipeline of $24.4 million [8][10] Q&A Session Summary Question: Are the customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that new customers for the Equator platform are now live and loading properties, which should generate revenue as assets are loaded, with historical success in cross-selling to Hubzu [15]