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]