Altisource Portfolio Solutions S.A. Q4 FY2025 earnings call

We are pleased with our full-year 2025 results. We grew service revenue, adjusted EBITDA, and GAAP earnings compared to 2024. Strong sales wins including fourth quarter wins estimated to generate $13,200,000 in stabilized annual revenue. HUBZU inventory grew by 137% since the end of the third quarter to 13,500 assets as of mid-February. Servicer and Real Estate segment won an estimated $20,600,000 in annualized stabilized service revenue wins in 2025, including $11,500,000 in fourth quarter wins. Origination segment service revenue grew 16% in 2025, driven by continued expansion in the Lenders One business. Discussed business environment with mortgage delinquency rates, foreclosure starts and sales, and origination market volume

Servicer and Real Estate segment: 2025 service revenue was $126,000,000, up 5% from last year; adjusted EBITDA increased by 6% to $44,600,000. Fourth quarter 2025 service revenue was $39,900,000, up 4% from the fourth quarter of last year; business segment adjusted EBITDA of $11,400,000 was flat to the fourth quarter 2024. Origination segment: 2025 service revenue grew 16% to $35,200,000; adjusted EBITDA increased 19% to $2,900,000. Fourth quarter 2025 service revenue for Origination segment increased 40% year over year. Corporate segment: 2025 corporate adjusted EBITDA loss was $29,300,000, reflecting year-over-year increase in costs primarily related to nonrecurring benefits in 2024 and higher foreign currency expenses in 2025

Forecasting service revenue of $165,000,000 to $185,000,000 and adjusted EBITDA of $15,000,000 to $20,000,000 for 2026. Midpoint represents 8.5% service revenue growth and close to flat adjusted EBITDA. Revenue growth assumptions include industry-wide rates, MBA's forecasted origination volume growth, and sales wins ramp, partially offset by loss of business related to CBA and Onity. Projected adjusted EBITDA reflects service revenue growth and scale efficiencies, partially offset by product mix and corporate costs growth

Forward-looking statements involve risks and uncertainties that could cause actual results to differ. CBA expired on 08/31/2025 and Onity terminating servicing agreements may impact service revenue and EBITDA. Operating in challenging environment with low delinquency rates, origination volume, and real estate market softening