Altisource (ASPS) Q4 2025 Earnings Call Transcript

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Wed, March 4, 2026 astatine 8:29 AM CST 10 min read

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Wednesday, March 4, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — William B. Shepro

William B. Shepro: Thanks, Michelle, and bully morning. I volition statesman connected descent 4 with our 2025 highlights. We are pleased with our full-year 2025 results. We grew work revenue, adjusted EBITDA, and GAAP net compared to 2024. These improvements bespeak disciplined execution, little involvement expense, and beardown income wins crossed some concern segments. The beardown income wins, including 4th fourth wins estimated to make $13,200,000 successful stabilized yearly revenue, should enactment america successful a beardown presumption to mitigate the interaction of anticipated bequest gross losses, materially diversify Altisource Portfolio Solutions S.A.'s gross base, and enactment our growth. We are peculiarly excited by the maturation of our HUBZU inventory from caller income wins.

HUBZU's foreclosure auction and REO inventory grew by 137% since the extremity of the 3rd 4th to 13,500 assets arsenic of mid-February. Turning to descent five. Service gross for 2025 accrued by 7% to $161,300,000 with income wins successful some segments contributing to the growth. The concern segment's adjusted EBITDA improved by $3,000,000, oregon 7%, to $47,600,000, and full institution adjusted EBITDA improved by $900,000, oregon 5%, to $18,300,000, driven by higher revenue, partially offset by gross premix and modestly higher firm costs. Moving to descent six, we improved full institution 2025 GAAP nonaccomplishment earlier income taxes to $14,100,000 from $32,900,000 successful 2024.

This was chiefly driven by little involvement disbursal from the caller superior structure, partially offset by $3,600,000 of indebtedness speech transaction expenses and a $7,500,000 nonaccomplishment from a bequest litigation settlement. 2025 nett currency utilized successful operating activities would person been adjacent to zero if you exclude the indebtedness speech transaction expenses and $1,200,000 of higher archetypal 4th currency involvement disbursal related to the anterior indebtedness agreement. Adjusting for these items, nett currency utilized successful operating activities improved by astir $60,000,000 implicit the past 5 years. We ended the twelvemonth with $26,600,000 successful unrestricted cash. Turning to descent seven.

Fourth 4th 2025 work gross was $39,900,000, up 4% from the 4th fourth of past year, driven by maturation successful the origination segment. Fourth 4th 2025 concern conception adjusted EBITDA of $11,400,000 was level to the 4th fourth 2024, portion higher 4th fourth 2025 firm conception costs resulted successful full institution adjusted EBITDA of $4,000,000 for the quarter. The firm segment's costs were $700,000 higher than the anterior twelvemonth chiefly from overseas currency fluctuations. Our 4th fourth GAAP nonaccomplishment earlier income taxes and noncontrolling interests improved to $8,100,000 from $8,400,000 successful the 4th fourth 2024, chiefly from little involvement disbursal partially offset by a $7,500,000 nonaccomplishment from a bequest litigation settlement.