Altisource Portfolio Solutions S.A.(ASPS) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Service revenue for 2025 increased by 7% to $161.3 million, with adjusted EBITDA improving by $900,000 or 5% to $18.3 million [5][6] - GAAP loss before income taxes improved to $14.1 million from $32.9 million in 2024, primarily due to lower interest expenses [6] - Fourth quarter 2025 service revenue was $39.9 million, up 4% year-over-year [7] Business Segment Data and Key Metrics Changes - The servicer and real estate segment service revenue for 2025 was $126 million, a 5% increase from the previous year, with adjusted EBITDA rising by 6% to $44.6 million [10][11] - The origination segment service revenue grew 16% to $35.2 million, with adjusted EBITDA increasing 19% to $2.9 million [12][13] - Corporate adjusted EBITDA loss was $29.3 million, reflecting increased costs primarily due to non-recurring benefits and higher foreign currency expenses [14] Market Data and Key Metrics Changes - 90-plus day mortgage delinquency rates increased to 1.45% in December 2025, with foreclosure starts growing by 25% and foreclosure sales by 17% compared to 2024 [14][15] - Total mortgage origination unit volume increased by 19% in 2025, driven by a 92% increase in refinance volume [15] Company Strategy and Development Direction - The company aims to achieve a run rate of $45 million in adjusted EBITDA by the fourth quarter of 2028 through its Project 45 strategic initiatives [18][19] - The focus is on diversifying revenue, ramping newly won business, and maintaining cost discipline to mitigate anticipated revenue losses from Rithm and Onity [19] Management's Comments on Operating Environment and Future Outlook - The management noted a challenging operating environment with low delinquency rates and origination volume, but recent indicators show improvement [14] - For 2026, the company forecasts service revenue growth of $165 million to $185 million and adjusted EBITDA of $15 million to $20 million, reflecting anticipated growth in the origination segment [17] Other Important Information - The cooperative brokerage agreement with Rithm expired on August 31, 2025, and the company expects a reduction in service revenue from this change [9] - The company ended 2025 with $26.6 million in unrestricted cash [6] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with positive remarks about the company's performance and growth prospects [20][21]