Altisource Portfolio Solutions S.A. Q2 FY2025 earnings call

• Pleased with second quarter performance, grew service revenue, adjusted EBITDA, pre and post-tax GAAP earnings and GAAP earnings per share compared to Q2 last year. • Driven by focus on businesses with tailwinds, cost discipline, lower interest expense, and tax reserve reversal in India operations. • Total company service revenue grew 11% to $40.8 million and adjusted EBITDA grew 23% to $5.4 million in Q2 2025 vs Q2 2024. • Servicer and Real Estate segment growth from Renovation ramp, Lenders One and Foreclosure Trustee growth. • Origination segment growth from Lenders One business. • Listed 5 growth opportunity businesses (Renovation, Granite Construction Risk Management, Lenders One, Hubzu Marketplace, Foreclosure Trustee) and progress on them. • Business environment details: 90-plus day mortgage delinquency near historic lows, foreclosure starts and sales changes, origination unit volume increase.

Servicer and Real Estate segment: Second quarter 2025 service revenue was $32 million, 10% higher than Q2 2024. Adjusted EBITDA was $12 million, 8% higher than Q2 2024. Origination segment: Second quarter 2025 service revenue was $8.8 million, 13% higher than Q2 2024. Adjusted EBITDA was $900,000, 81% better than Q2 2024. Corporate segment: Second quarter 2025 adjusted EBITDA loss was $7.5 million, slightly higher than Q2 2024.

Q: I wanted to just -- one piece that sort of jumped out at me on the cash flow statement, and it looks like there's a pretty meaningful working capital build. Just trying to understand what that is?

A: Shachar, it's Bill. Yes, with respect to working capital, I think there's sort of normal working capital activities that are being managed. I wouldn't say there's anything that unusual in the quarter.