Core Insights - Altisource Portfolio Solutions reported improved financial results for 2025, with service revenue increasing by 7% year over year to $161.3 million, driven by growth in both business segments [5][6] - The company narrowed its GAAP loss before income taxes to $14.1 million in 2025 from $32.9 million in 2024, primarily due to lower interest expenses from a revised capital structure [4][6] - Altisource's adjusted EBITDA for the total company increased by 5% to $18.3 million, despite higher corporate segment costs [5][6] Financial Performance - In Q4 2025, Altisource posted service revenue of $39.9 million, a 4% increase from the prior-year quarter, with adjusted EBITDA remaining flat at $11.4 million [2][6] - The company ended 2025 with $26.6 million in unrestricted cash, indicating improved cash flow management [3] Segment Performance - The servicer and real estate segment saw a 5% increase in service revenue to $126.0 million, with adjusted EBITDA rising 6% to $44.6 million [10] - The origination segment experienced a 16% increase in service revenue to $35.2 million, with adjusted EBITDA rising 19% to $2.9 million [12] Strategic Developments - Altisource is adjusting its 2026 outlook based on the expiration of the cooperative brokerage agreement with Rithm and the termination of servicing agreements with Onity, which are expected to reduce service revenue [7][8][9] - The company anticipates strong growth in the origination segment as recent wins scale and pipeline opportunities convert [12][14] Future Guidance - For 2026, Altisource forecasts service revenue between $165 million and $185 million, with adjusted EBITDA expected to be between $15 million and $20 million [14][15] - The company aims for a $45 million adjusted EBITDA run rate by Q4 2028 as part of "Project 45," supported by growth in various business areas [16]

ALTISOURCE PORTFOLIO SOLUTIONS THIRD QUARTER 2025 SUPPLEMENTARY INFORMATION © 2025 Altisource All Rights Reserved. AUGUST 2022 Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis. DISCLAIMER This presentation contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate t ...

Financial Performance Highlights - Total Company Service revenue grew by 11% to $40.8 million compared to Q2 2024[19] - Total Company Adjusted EBITDA increased by 23% to $5.4 million compared to Q2 2024[19] - Servicer and Real Estate segment service revenue increased by 10% to $32.0 million[24] - Origination segment service revenue increased by 13% to $8.8 million[32] - Q2 2025 net income attributable to Altisource reflects an income tax benefit from the reversal of certain tax reserves related to India operations[19] Segment Performance - Servicer and Real Estate segment Adjusted EBITDA increased by 8% to $12.0 million, with margins declining slightly to 37.4% due to revenue mix[24] - Origination segment Adjusted EBITDA increased by 81% to $0.9 million, driven by stronger margins and service revenue growth[32] - Corporate Adjusted EBITDA loss was $7.5 million, $0.3 million higher than Q2 2024[40] Market Environment - Despite low delinquency rates, foreclosure starts increased by 15% in April and May 2025 compared to the same period in 2024, but were 29% lower than the same period in 2019[44] - Foreclosure sales in April and May 2025 were 10% higher than the same period in 2024 but were 47% lower than the same period in 2019[44] - Q2 2025 mortgage origination unit volume increased 27% compared to Q2 2024, with refinance activity increasing 89%[44]