Altisource Portfolio Solutions S.A.(US:ASPS)2025-10-23 13:32Financial 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]