Core Viewpoint - Altisource Portfolio Solutions S.A. reported strong financial performance for the full year and fourth quarter of 2025, driven by disciplined execution, reduced interest expenses, and significant sales wins, positioning the company for future growth despite anticipated legacy revenue losses [2][3]. Financial Performance - For the full year 2025, Service revenue increased by $10.9 million, or 7%, reaching $161.3 million, while Adjusted EBITDA rose by $0.9 million, or 5%, to $18.3 million [2][5]. - The company improved its GAAP loss before income taxes by $18.7 million to $14.1 million, and net income attributable to Altisource was $1.6 million, a $37.3 million improvement compared to 2024 [5][9]. - Diluted earnings per share for 2025 were $0.15, reflecting a significant improvement of $10.14 compared to the previous year [5][9]. Fourth Quarter Highlights - In Q4 2025, Service revenue was $39.9 million, a 4% increase from $38.5 million in Q4 2024 [8][9]. - The company reported a loss before income taxes of $(8.1) million, which was an improvement from $(8.4) million in Q4 2024 [8][9]. - Adjusted EBITDA for Q4 2025 was $4.0 million, down 15% from $4.7 million in Q4 2024 [8][9]. Inventory and Sales Pipeline - As of February 15, 2026, the company reported a foreclosure auction inventory of 10.1 thousand, a 154% increase from 4.0 thousand in September 2025 [4]. - The total REO inventory reached 13.5 thousand, up 137% from 5.7 thousand in September 2025 [4]. - The weighted average sales pipeline was estimated between $30.4 million and $38.0 million, indicating strong potential for future revenue generation [4]. Industry Context - Industrywide foreclosure initiations were 25% higher in 2025 compared to 2024, although still 19% lower than pre-COVID-19 levels in 2019 [9]. - Mortgage origination unit volume increased by 19% in 2025, driven by a 92% increase in refinance origination [9].