Q4 2025 Altisource Portfolio Solutions SA Earnings Call

March 4, 2026

Speaker #1: Good day and thank you for standing by. Welcome to the ALTISOURCE PORTFOLIO SOLUTIONS 4th Quarter 2025 earnings call. At this time, all participants are in a listen-only mode.

Operator: Good day. Thank you for standing by. Welcome to the Altisource Portfolio Solutions Q4 2025 Earnings Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Michelle Esterman, Chief Financial Officer. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star, 1, 1 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star, 1, 1 again. Please be advised that today's conference is being recorded.

Speaker #1: I'd now like to hand the conference over to Michelle Esterman, Chief Financial Officer. Please go ahead.

Speaker #2: Thank you, Operator. We first want to remind you that the earnings release and quarterly slides are available on our website at www.altisource.com. These provide additional information investors may find useful.

Michelle Esterman: Thank you, operator. We first want to remind you that the earnings release and quarterly slides are available on our website at www.altisource.com. These provide additional information investors may find useful. Our remarks today include forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ. Please review the forward-looking statements section in the company's earnings release and quarterly slides, as well as the risk factors contained in our 2025 Form 10-K. These describe some factors that may lead to different results. We undertake no obligation to update statements, financial scenarios, and projections previously provided or provided herein as a result of a change in circumstances, new information, or future events. During this call, we will present both GAAP and non-GAAP financial measures. In our earnings release and quarterly slides, you will find additional disclosures regarding the non-GAAP measures.

Speaker #2: Our remarks today include forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ. Please review the forward-looking statements section in the company's earnings release and quarterly slides as well as the risk factors contained in our 2025 Form 10-K.

Speaker #2: These describe some factors that may lead to different results. We undertake no obligation to update statements, financial scenarios, and projections previously provided or provided herein as a result of a change in circumstances new information or future events.

Speaker #2: During this call, we will present both gap and non-gap financial measures. In our earnings release and quarterly slides, you will find additional disclosures regarding the non-gap measures.

Speaker #2: A reconciliation of gap to non-gap measures is included in the appendix to the quarterly slides. Joining me for today's call is Bill Shepro, our Chairman and Chief Executive Officer.

Michelle Esterman: A reconciliation of GAAP to non-GAAP measures is included in the appendix to the quarterly slides. Joining me for today's call is Bill Shepro, our Chairman and Chief Executive Officer. I'll now turn the call over to Bill.

Speaker #2: I'll now turn the call over to Bill.

Speaker #3: Thanks, Michelle, and good morning. I'll begin on slide 4 with our 2025 highlights. We are pleased with our full-year 2025 results. We grew service revenue, adjusted EBITDA, and GAAP earnings compared to 2024.

William Shepro: Thanks, Michelle. Good morning. I'll begin on slide four with our 2025 highlights. We are pleased with our full year 2025 results. We grew service revenue, adjusted EBITDA, and GAAP earnings compared to 2024. These improvements reflect disciplined execution, lower interest expense, and strong sales wins across both business segments. The strong sales wins, including Q4 wins estimated to generate $13.2 million in stabilized annual revenue, should put us in a strong position to mitigate the impact of anticipated legacy revenue losses, materially diversify Altisource's revenue base, and support our growth. We are particularly excited by the growth of our Hubzu inventory from recent sales wins. Hubzu's foreclosure auction and REO inventory grew by 137% since the end of Q3 to 13,500 assets as of mid-February.

Bill Shepro: Thanks, Michelle. Good morning. I'll begin on slide four with our 2025 highlights. We are pleased with our full year 2025 results. We grew service revenue, adjusted EBITDA, and GAAP earnings compared to 2024. These improvements reflect disciplined execution, lower interest expense, and strong sales wins across both business segments. The strong sales wins, including Q4 wins estimated to generate $13.2 million in stabilized annual revenue, should put us in a strong position to mitigate the impact of anticipated legacy revenue losses, materially diversify Altisource's revenue base, and support our growth. We are particularly excited by the growth of our Hubzu inventory from recent sales wins. Hubzu's foreclosure auction and REO inventory grew by 137% since the end of Q3 to 13,500 assets as of mid-February.

Speaker #3: These improvements reflect discipline execution, lower interest expense, and strong sales wins across both business segments. The strong sales wins including 4th Quarter wins estimated to generate $13.2 million in stabilized annual revenue should put us in a strong position to mitigate the impact of anticipated legacy revenue losses, materially diversify ALTISOURCE's revenue base and support our growth.

Speaker #3: We are particularly excited by the growth of our Hubzu inventory from recent sales wins. Hubzu's foreclosure auction and ARIO inventory grew by 137% since the end of the third quarter, to 13,500 assets as of mid-February.

Speaker #3: Turning to slide 5, service revenue for 2025 increased by 7% to $161.3 million, with sales wins in both segments contributing to the growth. The business segments adjusted EBITDA improved by $3 million or 7% to $47.6 million and total company adjusted EBITDA improved by $900,000 or 5% to $18.3 million, driven by higher revenue partially offset by revenue mix and modestly higher corporate costs.

William Shepro: Turning to slide 5, service revenue for 2025 increased by 7% to $161.3 million, with sales wins in both segments contributing to the growth. The business segment's adjusted EBITDA improved by $3 million, or 7% to $47.6 million, and total company-adjusted EBITDA improved by $900,000, or 5% to $18.3 million, driven by higher revenue, partially offset by revenue mix and modestly higher corporate costs. Moving to slide 6, we improved total company 2025 GAAP loss before income taxes to $14.1 million from $32.9 million in 2024.

Bill Shepro: Turning to slide 5, service revenue for 2025 increased by 7% to $161.3 million, with sales wins in both segments contributing to the growth. The business segment's adjusted EBITDA improved by $3 million, or 7% to $47.6 million, and total company-adjusted EBITDA improved by $900,000, or 5% to $18.3 million, driven by higher revenue, partially offset by revenue mix and modestly higher corporate costs. Moving to slide 6, we improved total company 2025 GAAP loss before income taxes to $14.1 million from $32.9 million in 2024.

Speaker #3: Moving to slide 6, we improved total company 2025 gap loss before income taxes to $14.1 million from $32.9 million in 2024. This was primarily driven by lower interest expense from the new capital structure partially offset by $3.6 million of debt exchange transaction expenses and a $7.5 million loss from a legacy litigation settlement.

William Shepro: This was primarily driven by lower interest expense from the new capital structure, partially offset by $3.6 million of debt exchange transaction expenses and a $7.5 million loss from a legacy litigation settlement. 2025 net cash used in operating activities would have been close to zero if you exclude the debt exchange transaction expenses and $1.2 million of higher Q1 cash interest expense related to the prior debt agreement. Adjusting for these items, net cash used in operating activities improved by approximately $60 million over the last five years. We ended the year with $26.6 million in unrestricted cash. Turning to slide 7. Q4 2025 service revenue was $39.9 million, up 4% from the Q4 of last year, driven by growth in the origination segment.

Bill Shepro: This was primarily driven by lower interest expense from the new capital structure, partially offset by $3.6 million of debt exchange transaction expenses and a $7.5 million loss from a legacy litigation settlement. 2025 net cash used in operating activities would have been close to zero if you exclude the debt exchange transaction expenses and $1.2 million of higher Q1 cash interest expense related to the prior debt agreement. Adjusting for these items, net cash used in operating activities improved by approximately $60 million over the last five years. We ended the year with $26.6 million in unrestricted cash. Turning to slide 7. Q4 2025 service revenue was $39.9 million, up 4% from the Q4 of last year, driven by growth in the origination segment.

Speaker #3: 2025 net cash used in operating activities would have been close to zero if you exclude the debt exchange transaction expenses and $1.2 million of higher first quarter cash interest expense related to the prior debt agreement.

Speaker #3: Adjusting for these items, net cash used in operating activities improved by approximately $60 million over the last 5 years. We ended the year with $26.6 million in unrestricted cash.

Speaker #3: Turning to slide 7, 4th Quarter 2025 service revenue was $39.9 million up 4% from the 4th Quarter of last year driven by growth in the origination segment.

Speaker #3: 4th Quarter 2025 business segment adjusted EBITDA of $11.4 million was flat to the 4th Quarter 2024 while higher 4th Quarter 2025 corporate segment costs resulted in total company adjusted EBITDA of $4 million for the quarter.

William Shepro: Q4 2025 business segment adjusted EBITDA of $11.4 million was flat to Q4 2024, while higher Q4 2025 corporate segment costs resulted in total company adjusted EBITDA of $4 million for the quarter. The corporate segment's costs were $700,000 higher than the prior year, primarily from foreign currency fluctuations. Our Q4 GAAP loss before income taxes and non-controlling interests improved to $8.1 million from $8.4 million in Q4 2024, primarily from lower interest expense, partially offset by a $7.5 million loss from a legacy litigation settlement. Before turning to the segment updates, I want to address developments related to Rithm and Onity.

Bill Shepro: Q4 2025 business segment adjusted EBITDA of $11.4 million was flat to Q4 2024, while higher Q4 2025 corporate segment costs resulted in total company adjusted EBITDA of $4 million for the quarter. The corporate segment's costs were $700,000 higher than the prior year, primarily from foreign currency fluctuations. Our Q4 GAAP loss before income taxes and non-controlling interests improved to $8.1 million from $8.4 million in Q4 2024, primarily from lower interest expense, partially offset by a $7.5 million loss from a legacy litigation settlement. Before turning to the segment updates, I want to address developments related to Rithm and Onity.

Speaker #3: The corporate segment's costs were $700,000 higher than the prior year, primarily from foreign currency fluctuations. Our fourth quarter GAAP loss before income taxes and non-controlling interests improved to $8.1 million from $8.4 million in the fourth quarter of 2024, primarily from lower interest expense, partially offset by a $7.5 million loss from a legacy litigation settlement.

Speaker #3: Before turning to the segment updates, I want to address developments related to Rhythm and Unity. As we discussed last quarter, the cooperative brokerage agreement between Altisource and Rhythm, which I'll refer to as the CBA, expired on August 31, 2025.

William Shepro: As we discussed last quarter, the cooperative brokerage agreement between Altisource and Rithm, which I'll refer to as the CBA, expired on 31 August 2025. Despite the expiration of the CBA, at Rithm's discretion, we continue to manage CBA REO assets and receive new referrals with limited exceptions. From a 2026 guidance perspective, which I'll review shortly, we assume that this business will roll off during the first half of this year. With respect to Onity, Rithm provided notice in Q4 that it is terminating its servicing agreements with Onity. As the service transfers occur, we expect a reduction in our foreclosure trustee, title, and field service referrals from Onity tied to these portfolios. Our 2026 guidance assumes that the Onity-serviced, Rithm-owned MSRs transfer to Rithm during the first half of this year.

Bill Shepro: As we discussed last quarter, the cooperative brokerage agreement between Altisource and Rithm, which I'll refer to as the CBA, expired on 31 August 2025. Despite the expiration of the CBA, at Rithm's discretion, we continue to manage CBA REO assets and receive new referrals with limited exceptions. From a 2026 guidance perspective, which I'll review shortly, we assume that this business will roll off during the first half of this year. With respect to Onity, Rithm provided notice in Q4 that it is terminating its servicing agreements with Onity. As the service transfers occur, we expect a reduction in our foreclosure trustee, title, and field service referrals from Onity tied to these portfolios. Our 2026 guidance assumes that the Onity-serviced, Rithm-owned MSRs transfer to Rithm during the first half of this year.

Speaker #3: Despite the expiration of the CBA at RHYTHM's discretion, we continue to manage CBA ARIO assets and receive new referrals, with limited exceptions. From a 2026 guidance perspective, which I'll review shortly, we assume that this business will roll off during the first half of this year.

Speaker #3: With respect to Unity, RHYTHM provided notice in the fourth quarter that it is terminating its servicing agreements with Unity. As the service transfers occur, we expect a reduction in our foreclosure trustee title and field service referrals from Unity tied to these portfolios.

Speaker #3: Our 2026 guidance assumes that the unity serviced RHYTHM-owned MSRs transfer to RHYTHM during the first half of this year. Although we would prefer to retain this business, we believe that our sales wins once stabilized should more than offset the anticipated reduction in service revenue and EBITDA from the RHYTHM and unity-related changes.

William Shepro: Although we would prefer to retain this business, we believe that our sales wins, once stabilized, should more than offset the anticipated reduction in service revenue and EBITDA from the Rithm and Onity-related changes. As a result, the midpoint of our 2026 guidance reflects service revenue growth and close to flat adjusted EBITDA, with Rithm and Onity representing a significantly smaller share of our revenue base by the Q4 of 2026. Turning to slide 8 and our countercyclical servicer and real estate segment. 2025 service revenue of $126 million increased 5% from last year, reflecting a full year of the newer renovation business and growth across foreclosure trustee, Granite, and field services, partially offset by fewer home sales in the marketplace business.

Bill Shepro: Although we would prefer to retain this business, we believe that our sales wins, once stabilized, should more than offset the anticipated reduction in service revenue and EBITDA from the Rithm and Onity-related changes. As a result, the midpoint of our 2026 guidance reflects service revenue growth and close to flat adjusted EBITDA, with Rithm and Onity representing a significantly smaller share of our revenue base by the Q4 of 2026. Turning to slide 8 and our countercyclical servicer and real estate segment. 2025 service revenue of $126 million increased 5% from last year, reflecting a full year of the newer renovation business and growth across foreclosure trustee, Granite, and field services, partially offset by fewer home sales in the marketplace business.

Speaker #3: As a result, the midpoint of our 2026 guidance reflects service revenue growth and close to flat adjusted EBITDA. With RHYTHM and unity representing a significantly smaller share of our revenue base, by the 4th Quarter of 2026.

Speaker #3: Turning to slide 8 in our countercyclical servicer and real estate segment, 2025 service revenue of $126 million increased 5% from last year. Reflecting a full year of the newer renovation business and growth across foreclosure trustee granite and field services, partially offset by fewer home sales in the marketplace business.

Bill Shepro: 2025 servicer and real estate segment adjusted EBITDA increased by 6% to $44.6 million, with adjusted EBITDA margins higher due to revenue mix. Slide 9 summarizes our servicer and real estate segment wins and pipeline. In 2025, we won an estimated $20.6 million in annualized stabilized service revenue wins, including $11.5 million in Q4 wins. Two of the larger Q4 wins were in our higher margin marketplace business unit, which we also refer to as Hubzu. The first was an REO asset management and foreclosure auction agreement with a residential loan servicer, and the second, a CWCOT first chance foreclosure auction agreement with an existing customer. We ended the year with a servicer and real estate segment total weighted average sales pipeline of $19.3 million on a stabilized basis.

William Shepro: 2025 servicer and real estate segment adjusted EBITDA increased by 6% to $44.6 million, with adjusted EBITDA margins higher due to revenue mix. Slide 9 summarizes our servicer and real estate segment wins and pipeline. In 2025, we won an estimated $20.6 million in annualized stabilized service revenue wins, including $11.5 million in Q4 wins. Two of the larger Q4 wins were in our higher margin marketplace business unit, which we also refer to as Hubzu. The first was an REO asset management and foreclosure auction agreement with a residential loan servicer, and the second, a CWCOT first chance foreclosure auction agreement with an existing customer. We ended the year with a servicer and real estate segment total weighted average sales pipeline of $19.3 million on a stabilized basis.

Speaker #3: 2025 servicer and real estate segment adjusted EBITDA increased by 6% to $44.6 million with adjusted EBITDA margins higher due to revenue mix. Slide 9 summarizes our servicer and real estate segment wins, and pipeline, in 2025 we won an estimated $20.6 million in annualized stabilized service revenue wins including $11.5 million in 4th Quarter wins.

Speaker #3: Two of the larger 4th Quarter wins were in our higher margin marketplace business unit, which we also refer to as HUBZU. The first was an ARIO asset management and foreclosure auction agreement with a residential loan servicer.

Speaker #3: And the second, a CWCOT first chance foreclosure auction agreement with an existing customer. We ended the year with a servicer and real estate segment total weighted average sales pipeline of $19.3 million, on a stabilized basis.

Speaker #3: The pipeline includes a couple of larger opportunities for our trustee and title businesses that we are optimistic should close in the second quarter, if not sooner.

William Shepro: The pipeline includes a couple of larger opportunities for our trustee and title businesses that we are optimistic should close in Q2, if not sooner. Turning to slide 10 and our growing Hubzu inventory. We onboarded the 2 new Hubzu wins I just discussed and are off to a strong start. As of 15 February, total Hubzu inventory stands at 13,500 assets, compared to 5,700 assets as of 30 September of last year. These 2 wins were significant contributors to this growth. We anticipate revenue from these customers to grow during the year as REO and foreclosure referrals proceed to sale. Moving to slide 11 and our origination segment. 2025 service revenue grew 16% to $35.2 million. Adjusted EBITDA increased 19% to $2.9 million, with margins improving modestly.

Bill Shepro: The pipeline includes a couple of larger opportunities for our trustee and title businesses that we are optimistic should close in Q2, if not sooner. Turning to slide 10 and our growing Hubzu inventory. We onboarded the 2 new Hubzu wins I just discussed and are off to a strong start. As of 15 February, total Hubzu inventory stands at 13,500 assets, compared to 5,700 assets as of 30 September of last year. These 2 wins were significant contributors to this growth. We anticipate revenue from these customers to grow during the year as REO and foreclosure referrals proceed to sale. Moving to slide 11 and our origination segment. 2025 service revenue grew 16% to $35.2 million. Adjusted EBITDA increased 19% to $2.9 million, with margins improving modestly.

Speaker #3: Turning to slide 10 in our growing HUBZU inventory, we onboarded the two new HUBZU wins I just discussed and are off to a strong start.

Speaker #3: As of February 15th, total Hubzu inventory stands at 13,500 assets, compared to 5,700 assets as of September 30th of last year. These two wins were significant contributors to this growth.

Speaker #3: We anticipate revenue from these customers to grow during the year as ARIO and foreclosure referrals proceed to sale. Moving to slide 11 in our origination segment, 2025 service revenue grew 16% to $35.2 million.

Speaker #3: Adjusted EBITDA increased 19% to $2.9 million, with margins improving modestly. Service revenue growth was driven by continued expansion in the lender's One business, including onboarding the forecasted $11.2 million in Q3 wins.

Bill Shepro: Service revenue growth was driven by continued expansion in the Lenders One business, including onboarding the forecasted $11.2 million in Q3 wins. Due to these wins, the origination segment service revenue growth accelerated in Q4, increasing 40% year-over-year. For 2026, we anticipate strong year-over-year service revenue and adjusted EBITDA growth for the origination segment as Lenders One business continues to grow and scale, and we convert our sales pipeline to wins. Slide 12 outlines our origination segment sales wins and pipeline. We secured an estimated $1.8 million in wins, primarily in Lenders One, and ended the year with an estimated $14.9 million weighted average sales pipeline. We are actively engaging with several large prospects and anticipate additional wins in the first half of 2026. Turning to slide 13 in our corporate segment.

William Shepro: Service revenue growth was driven by continued expansion in the Lenders One business, including onboarding the forecasted $11.2 million in Q3 wins. Due to these wins, the origination segment service revenue growth accelerated in Q4, increasing 40% year-over-year. For 2026, we anticipate strong year-over-year service revenue and adjusted EBITDA growth for the origination segment as Lenders One business continues to grow and scale, and we convert our sales pipeline to wins. Slide 12 outlines our origination segment sales wins and pipeline. We secured an estimated $1.8 million in wins, primarily in Lenders One, and ended the year with an estimated $14.9 million weighted average sales pipeline. We are actively engaging with several large prospects and anticipate additional wins in the first half of 2026. Turning to slide 13 in our corporate segment.

Speaker #3: Due to these wins, the origination segment service revenue growth accelerated in the 4th Quarter, increasing 40% year over year. For 2026, we anticipate strong year over year service revenue and adjusted EBITDA growth for the origination segment as recently one business continues to grow and scale and we convert our sales pipeline to wins.

Speaker #3: Slide 12 outlines our origination segment sales wins and pipeline. We secured an estimated $1.8 million in wins primarily in lenders one and ended the year with an estimated $14.9 million weighted average sales pipeline.

Speaker #3: We are actively engaging with several large prospects and anticipate additional wins in the first half of 2026. Turning to slide 13 in our corporate segment, 2025 corporate adjusted EBITDA loss was $29.3 million.

William Shepro: 2025 corporate adjusted EBITDA loss was $29.3 million, reflecting a year-over-year increase in costs primarily related to non-recurring benefits in Q1 2024 and higher foreign currency expenses in 2025. We believe corporate costs should remain relatively stable as revenue grows. Moving to slide 14 in the business environment. We've been operating in a challenging environment with both low delinquency rates and origination volume, though recent indicators are improving. 90-plus day mortgage delinquency rates modestly increased to 1.45% in December 2025. As of 31 December 2025, there were 560,000 late-stage delinquent mortgages, the highest level since February 2023. In 2025, foreclosure starts grew by 25% and foreclosure sales grew by 17% compared to 2024, although still significantly below pre-pandemic levels.

Bill Shepro: 2025 corporate adjusted EBITDA loss was $29.3 million, reflecting a year-over-year increase in costs primarily related to non-recurring benefits in Q1 2024 and higher foreign currency expenses in 2025. We believe corporate costs should remain relatively stable as revenue grows. Moving to slide 14 in the business environment. We've been operating in a challenging environment with both low delinquency rates and origination volume, though recent indicators are improving. 90-plus day mortgage delinquency rates modestly increased to 1.45% in December 2025. As of 31 December 2025, there were 560,000 late-stage delinquent mortgages, the highest level since February 2023. In 2025, foreclosure starts grew by 25% and foreclosure sales grew by 17% compared to 2024, although still significantly below pre-pandemic levels.

Speaker #3: Reflecting a year-over-year increase in costs, primarily related to non-recurring benefits in the first quarter of 2024 and higher foreign currency expenses in 2025.

Speaker #3: We believe corporate costs should remain relatively stable as revenue grows. Moving to slide 14 in the business environment, we've been operating in a challenging environment with both low delinquency rates and low origination volume.

Speaker #3: Though recent indicators are improving, 90-plus-day mortgage delinquency rates modestly increased to 1.45% in December 2025. As of December 31, 2025, there were 560,000 late-stage delinquent mortgages.

Speaker #3: The highest level since February 2023. In 2025, foreclosure starts grew by 25% and foreclosure sales grew by 17% compared to 2024, although still significantly below pre-pandemic levels.

Speaker #3: We believe the increase over 2024 reflects the end of the voluntary VA foreclosure moratoriums, rising FHA delinquency rates, and a softening real estate market.

William Shepro: We believe the increase over 2024 reflects the end of the voluntary VA foreclosure moratoriums, rising FHA delinquency rates, and a softening real estate market. We anticipate that borrowers may face additional pressure in 2026, given the Q4 implementation of the April 2025 FHA Mortgagee Letter that extends the time between loan modifications from every 18 months to every 24 months. For the origination market, total 2025 mortgage origination unit volume increased 19%, driven by a 92% increase in refinance volume, partially offset by a 2% decline in purchase volume. For 2026, the MBA projects 5.8 million loans originated, or 7% year-over-year growth, with a forecasted 8% increase in refinance volume and a 6% increase in purchase volume. Turning to slide 15 and our 2026 outlook.

Bill Shepro: We believe the increase over 2024 reflects the end of the voluntary VA foreclosure moratoriums, rising FHA delinquency rates, and a softening real estate market. We anticipate that borrowers may face additional pressure in 2026, given the Q4 implementation of the April 2025 FHA Mortgagee Letter that extends the time between loan modifications from every 18 months to every 24 months. For the origination market, total 2025 mortgage origination unit volume increased 19%, driven by a 92% increase in refinance volume, partially offset by a 2% decline in purchase volume. For 2026, the MBA projects 5.8 million loans originated, or 7% year-over-year growth, with a forecasted 8% increase in refinance volume and a 6% increase in purchase volume. Turning to slide 15 and our 2026 outlook.

Speaker #3: We anticipate that borrowers may face additional pressure in 2026 given the 4th Quarter implementation of the April 2025 FHA mortgagee letter that extends the time between loan modifications from every 18 months to every 24 months.

Speaker #3: For the origination market, total 2025 mortgage origination unit volume increased 19%, driven by a 92% increase in refinance volume, partially offset by a 2% decline in purchase volume.

Speaker #3: For 2026, the MBA projects $5.8 million loans originated or 7% year over year growth. With a forecasted 8% increase in refinance volume and a 6% increase in purchase volume.

Speaker #3: Turning to slide 15 in our 2026 outlook, we are forecasting service revenue of $165 million to $185 million and adjusted EBITDA of $15 to $20 million.

Bill Shepro: We are forecasting service revenue of $165 million to $185 million and adjusted EBITDA of $15 to 20 million. At the midpoint, this represents 8.5% service revenue growth and close to flat adjusted EBITDA. Revenue growth assumptions include roughly flat industry-wide delinquency rates, the MBA's forecasted origination volume growth, and our estimated timing for the onboarding and ramp of sales wins, conversion of pipeline opportunities, and price increases for certain services, partially offset by the assumed loss of business related to the CBA and Rithm's termination of its servicing agreements with Onity. The projected adjusted EBITDA reflects forecasted service revenue growth and scale efficiencies, partially offset by product mix and modest growth in corporate segment costs.

William Shepro: We are forecasting service revenue of $165 million to $185 million and adjusted EBITDA of $15 to 20 million. At the midpoint, this represents 8.5% service revenue growth and close to flat adjusted EBITDA. Revenue growth assumptions include roughly flat industry-wide delinquency rates, the MBA's forecasted origination volume growth, and our estimated timing for the onboarding and ramp of sales wins, conversion of pipeline opportunities, and price increases for certain services, partially offset by the assumed loss of business related to the CBA and Rithm's termination of its servicing agreements with Onity. The projected adjusted EBITDA reflects forecasted service revenue growth and scale efficiencies, partially offset by product mix and modest growth in corporate segment costs.

Speaker #3: At the midpoint, this represents 8.5% service revenue growth and close to flat adjusted EBITDA. Revenue growth assumptions include roughly flat industry-wide delinquency rates the MBA's forecasted origination volume growth and our estimated timing for the onboarding and ramp of sales wins conversion of pipeline opportunities and price increases for certain services.

Speaker #3: Partially offset by the assumed loss of business related to the CBA and rhythms termination of its servicing agreements with Onity. The projected adjusted EBITDA reflects forecasted service revenue growth and scale efficiencies partially offset by product mix and modest growth in corporate segment costs.

Speaker #3: The forecast range for service revenue and adjusted EBITDA primarily reflects timing differences in the potential loss of business related to the CBA and Onity service transfer and the ramp in business from sales wins and pipeline conversion.

Bill Shepro: The forecast range for service revenue and adjusted EBITDA primarily reflects timing differences in the potential loss of business related to the CBA and Onity service transfer and the ramp in business from sales wins and pipeline conversion. At the midpoint of the guidance, we are forecasting to generate positive operating cash flow for the year. Moving to slide 16 and 17. Our 2026 outlook is supported by momentum in the businesses we believe offer the greatest long-term growth potential: Lenders One, Hubzu Marketplace, Foreclosure Trustee, Title, Granite, Renovation, and Field Services. The anticipated growth of these businesses forms the foundation for Altisource's Project Forty-Five strategic initiatives. Our company-wide objective to achieve a run rate of $45 million in adjusted EBITDA by Q4 of 2028.

William Shepro: The forecast range for service revenue and adjusted EBITDA primarily reflects timing differences in the potential loss of business related to the CBA and Onity service transfer and the ramp in business from sales wins and pipeline conversion. At the midpoint of the guidance, we are forecasting to generate positive operating cash flow for the year. Moving to slide 16 and 17. Our 2026 outlook is supported by momentum in the businesses we believe offer the greatest long-term growth potential: Lenders One, Hubzu Marketplace, Foreclosure Trustee, Title, Granite, Renovation, and Field Services. The anticipated growth of these businesses forms the foundation for Altisource's Project Forty-Five strategic initiatives. Our company-wide objective to achieve a run rate of $45 million in adjusted EBITDA by Q4 of 2028.

Speaker #3: At the midpoint of the guidance, we are forecasting to generate positive operating cash flow for the year. Moving to slide 16 and 17, our 2026 outlook is supported by momentum in the businesses we believe offer the greatest long-term growth potential.

Speaker #3: Lenders one hub zoo marketplace foreclosure trustee title granite renovation and field services. The anticipated growth of these businesses forms the foundation for out the sources project 45 strategic initiatives.

Speaker #3: Our company-wide objective is to achieve a run rate of $45 million in adjusted EBITDA by the fourth quarter of 2028. While individual businesses and support group contributions to this initiative may vary, we believe the businesses we identified are best positioned to source meaningful, diversified growth.

Bill Shepro: While individual businesses and support group contributions to this initiative may vary, we believe the businesses we identified best position Altisource for meaningful, diversified growth. Turning to slide 18. We believe we are positioned to diversify our revenue base, ramp newly won business, maintain cost discipline, and lower corporate interest expense in 2026. The Project Forty-Five initiatives, supported by our 2025 sales wins, should help mitigate the impact from anticipated Rithm Capital-related revenue losses and support a stronger, more resilient Altisource. I am proud of what the team has accomplished in 2025 and am excited about our prospects for 2026 and beyond. I'll now open up the call for questions. Operator?

William Shepro: While individual businesses and support group contributions to this initiative may vary, we believe the businesses we identified best position Altisource for meaningful, diversified growth. Turning to slide 18. We believe we are positioned to diversify our revenue base, ramp newly won business, maintain cost discipline, and lower corporate interest expense in 2026. The Project Forty-Five initiatives, supported by our 2025 sales wins, should help mitigate the impact from anticipated Rithm Capital-related revenue losses and support a stronger, more resilient Altisource. I am proud of what the team has accomplished in 2025 and am excited about our prospects for 2026 and beyond. I'll now open up the call for questions. Operator?

Speaker #3: Turning to slide 18, we believe we are positioned to diversify our revenue base, ramp newly won business, maintain cost discipline, and lower corporate interest expense in 2026.

Speaker #3: The project 45 initiatives supported by our 2025 sales wins should help mitigate the impact from anticipated rhythm-related revenue losses and support a stronger, more resilient Altisource.

Speaker #3: I'm proud of what the team has accomplished in 2025, and I'm excited about our prospects for 2026 and beyond. I'll now open up the call for questions.

Speaker #3: Operator.

Speaker #2: As a reminder, if you'd like to ask a question at this time, please press *11 on your Touchdown phone and wait for your name to be announced.

Operator: As a reminder, if you'd like to ask a question at this time, please press star one one on your touchtone phone and wait for your name to be announced. To withdraw your question, please press star one one again. I'm showing no questions at this time. I'd like to turn the call back to Bill Shepro for closing remarks.

Speaker #2: To withdraw your question, please press star one one again. I'm showing no questions at this time. I'd like to turn the call back to Bill Shepro for closing remarks.

Speaker #3: Thank you, operator. We're pleased with our 2025 performance and believe we're set up well for continued growth. Thanks for joining our call today.

Bill Shepro: Thank you, operator. We're pleased with our 2025 performance and believe we're set up well for continued growth. Thanks for joining our call today.

William Shepro: Thank you, operator. We're pleased with our 2025 performance and believe we're set up well for continued growth. Thanks for joining our call today.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Q4 2025 Altisource Portfolio Solutions SA Earnings Call

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