Altisource Portfolio Solutions SA Q1 FY2025 earnings call

• Pleased with first quarter performance, driving year-over-year and sequential service revenue and adjusted EBITDA growth, mainly from renovation business ramp, stronger foreclosure starts, and sales wins. • Closed exchange and maturity extension transaction on February 19, strengthening balance sheet and reducing interest expense. Ended quarter with $30.8 million in unrestricted cash. • First quarter service revenue was highest since Q3 2021; adjusted EBITDA was strongest since Q3 2020. • Servicer and Real Estate segment had 13% higher service revenue in Q1 2025 from innovation business launch, stronger foreclosure starts, and sales wins. • Won new business estimating $4.7 million annual service revenue on stabilized basis over next couple of years, with significant sales wins in Granite business.

For the first quarter, total company service revenue was $40.9 million, an 11% increase from Q1 2024. Adjusted EBITDA was $5.3 million, a 14% increase. Servicer and Real Estate segment: Service revenue $32.9 million (13% higher than Q1 2024), adjusted EBITDA $12 million (15% higher than Q1 2024), margins 36.5% (up from 35.8%). Origination segment: Service revenue $8 million (3% higher than Q1 2024), adjusted EBITDA $500,000 (roughly flat). Corporate segment: Adjusted EBITDA loss $7.2 million, $900,000 more than Q1 2024 due to one-time benefits last year.

• Beginning Q2, will receive full run rate benefit of lower principal balance and interest rate from the exchange and maturity extension transaction. Estimate annual GAAP interest expense on new debt to be approximately $9.5 million. • Focusing on accelerating growth of businesses with tailwinds to support longer-term growth.

• Rise in 30-plus day delinquency rate on FHA mortgages to 11%, highest since 2013. • HUD's updates to FHA servicer guidelines, which could reduce repeated borrower loss mitigation attempts and lead to more properties entering foreclosure process. • Risk of weakening U.S. economy, which could drive higher loan delinquencies, foreclosure starts, and foreclosure sales.

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