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 strong contributions from both business segments [5] - Adjusted EBITDA improved by $900,000 or 5% to $18.3 million, driven by higher revenue [5] - GAAP loss before income taxes improved to $14.1 million from $32.9 million in 2024, primarily due to lower interest expenses [6] Business Segment Data and Key Metrics Changes - The servicer and real estate segment service revenue increased by 5% to $126 million, 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 segment adjusted EBITDA loss was $29.3 million, reflecting increased costs [14] Market Data and Key Metrics Changes - 90+ day mortgage delinquency rates increased to 1.45% in December 2025, with 560,000 late-stage delinquent mortgages [14] - Foreclosure starts grew by 25% and foreclosure sales increased by 17% compared to 2024 [14] - 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 Q4 2028 through its Project 45 strategic initiatives [17][18] - Focus on diversifying revenue base and ramping newly won business while maintaining cost discipline [18] Management's Comments on Operating Environment and Future Outlook - The company is operating in a challenging environment with low delinquency rates and origination volume, but recent indicators show improvement [14] - For 2026, the company forecasts service revenue of $165 million-$185 million and adjusted EBITDA of $15 million-$20 million, reflecting anticipated growth despite potential losses from Rithm and Onity [16][17] Other Important Information - Hubzu's foreclosure auction and REO inventory grew by 137% to 13,500 assets as of mid-February [4][12] - The cooperative brokerage agreement with Rithm expired, and the company expects a reduction in service revenue from this change [9] 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 [19][20]