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- **Revenue Growth**: Service revenue up 4% to $39.7 million, driven by Renovation and Lenders One. 
- **Pipeline Expansion**: $11.2 million new sales in Q3, 33% growth potential. 
- **Financial Efficiency**: $2.3 million improvement in operating cash flow. 
- **Strategic Wins**: 4 new Equator customers, 3 live implementations. 
- **Market Trends**: Foreclosure starts and sales increasing despite low delinquency rates. 


**【CEO Summary Section】**
- Delivered solid third-quarter performance with service revenue growth and improved GAAP earnings. Key growth drivers include the Renovation business and Lenders One. 
- Adjusted EBITDA margin at 32.1%, reflecting revenue mix changes. 
- Sales pipeline expansion in Lenders One and Granite Construction Risk Management. 
- Cost discipline and lower interest expense contributed to profitability. 

**【CFO Commentary】**
- GAAP net loss of $1.7 million, improved from $8.5 million prior year. 
- Operating cash flow increased by $2.3 million, ending with $28.6 million in cash. 
- Non-GAAP metrics show margin contraction in Origination segment due to product mix. 

**【Q&A Highlights】**
- **Equator Platform Wins**: 4 new customers, 3 live implementations, potential cross-selling with Hubzu. 
- **REO Asset Management**: Referrals from Onity and Rithm at record levels. 
- **Mortgage Origination Outlook**: MBA projects 5.4 million loans in 2025, 18% increase YoY. 
- **Foreclosure Trends**: Starts and sales up 19% and 10% YoY, driven by FHA delinquency rates. 


Altisource Portfolio Solutions S.A. (ASPS) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 11% YoY service revenue to $40.8M, driven by Renovation (+10%) and Lenders One (+13%).
- **Profitability**: Adjusted EBITDA up 23% to $5.4M, GAAP net income $16.6M (vs. -$8.3M prior).
- **Pipeline Strength**: $25.3M servicer pipeline and $14.7M origination pipeline.
- **Market Position**: Countercyclical growth in low delinquency environment (1.2% 90+ day rate).
- **Cash Position**: $30M unrestricted cash post-tax benefits and debt restructuring.

**【CEO Opening Remarks】**
- Q2 2025 service revenue grew 11% YoY to $40.8 million, driven by the Renovation, Lenders One, and Foreclosure Trustee businesses.
- Adjusted EBITDA increased 23% YoY to $5.4 million, with $12.8 million from business segments vs. $7.5 million corporate segment loss.
- GAAP net income improved to $16.6 million (vs. -$8.3 million in Q2  Ended quarter with $30 million in unrestricted cash.

**【Segment2024) due to tax benefits and lower interest costs.
- Performance】**
1. **Servicer & Real Estate Segment**:
- Service revenue up 10% to $32 million, EBITDA $12 million (+8% YoY).
- Renovation business growth offset by lower-margin mix, EBITDA margin 37.4% (vs. 38.1% prior).
- Won $1.1 million in new annualized service revenue, pipeline $25.3 million.

2. **Origination Segment**:
- Service revenue up 13% to $8.8 million, EBITDA $900,000 (+81% YoY).
- Lenders One growth and margin improvements drove results.
- Won $3.3 million in new annualized revenue, pipeline $14.7 million.

**【Growth Initiatives】**
- Focused on 5 key businesses: Renovation, Granite Construction Risk Management, Lenders One, Hubzu Marketplace, and Foreclosure Trustee.
- Progress despite low delinquency rates (1.2% 90+ day mortgage delinquency rate).

**【Market Environment】**
- Foreclosure starts +15% YoY (but -29% vs. 2019 levels).
- Mortgage origination volume up 27% QoQ, MBA forecasts 5.6 million loans in 2025.

**【Q&A Highlights】**
- Working capital build described as normal operational activity, no unusual trends.


Altisource Portfolio Solutions S.A. (ASPS) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 11% YoY to $40.9M, driven by renovation and foreclosure activity.
- **Profitability**: 14% EBITDA growth to $5.3M, 30.5% margin.
- **Debt Restructuring**: $60M debt reduction, annual interest savings of $8.5M.
- **Market Risk**: Rising FHA delinquencies (11%) and potential foreclosure surge from policy changes.
- **Pipeline Strength**: $38M combined annualized new business wins.

**【CEO Opening Remarks】**
- Q1 2025 service revenue: $40.9M (+11% YoY), driven by renovation business, foreclosure starts, and sales wins.
- Adjusted EBITDA: $5.3M (+14% YoY), with 30.5% margin improvement.
- $30.8M unrestricted cash post debt restructuring.

**【Financial Highlights】**
- GAAP interest expense reduced to $4.9M Q1 2025 vs $9.5M Q1 2024.
- Annualized interest cost estimate: $9.5M vs prior $18M.
- Long-term debt reduced by $60M to $172.5M.

**【Segment Performance】**
1. **Servicer & Real Estate Segment**
- Service revenue: $32.9M (+13% YoY)
- Adjusted EBITDA: $12M (+15% YoY), 36.5% margin
- New business pipeline: $26.1M annualized

2. **Origination Segment**
- Service revenue: $8M (+3% YoY)
- Adjusted EBITDA: $500K (flat YoY)
- New business pipeline: $11.9M annualized

**【Market Trends】**
- FHA delinquency rate at 11% (highest since 2013)
- Foreclosure starts +25% Q1 2025 vs Q1 2024
- Potential drivers: economic weakness, student loan collections, HUD guideline changes


Altisource Portfolio Solutions (ASPS)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 10% full-year service revenue increase to $150 million, driven by 11% growth in Servicer & Real Estate and 6% in Origination segments.
- **Debt Restructuring Success**: $60 million debt reduction lowers annual interest costs by $18 million, with warrants aligning shareholder interests.
- **2025 Outlook**: Forecast 16-33% service revenue growth ($165-$185M) and 56-109% EBITDA expansion ($18-$23M), supported by new product launches and cost efficiency.
- **Q1 Strong Start**: Unaudited January/February results show revenue in line with plan and EBITDA ahead of target, setting up for positive cash flow.

**【CEO Comprehensive Review】**
- **2024 Full-Year Performance**: Total service revenue grew 10% to $150 million, with adjusted EBITDA improving by $18.3 million to $17.4 million. The fourth quarter marked the highest service revenue ($38.4 million) and adjusted EBITDA ($4.7 million) since 2021.
- **Debt Restructuring**: Reduced debt by $60 million to $172.5 million, lowering annual interest costs by $18 million. Issued warrants to pre-transaction shareholders to align interests with long-term growth.
- **Segment Growth**: Servicer & Real Estate segment revenue rose 11% to $120 million, while Origination segment revenue increased 6% to $30.4 million. Both segments saw margin improvements through efficiency initiatives.
- **2025 Outlook**: Forecasting service revenue of $165-$185 million and adjusted EBITDA of $18-$23 million, driven by new product launches (e.g., renovation and credit services) and pipeline conversions.

**【CFO Financial Highlights】**
- **2024 Financials**: GAAP net loss of $112.8 million, with non-GAAP adjusted EBITDA of $17.4 million. The corporate segment reduced its adjusted EBITDA loss by 22% to $27.2 million through cost-saving measures.
- **Debt Transaction Impact**: The new $110 million term loan at 10.8% interest (vs. prior PIK interest) and $12.5 million super senior credit facility provide liquidity and reduce refinancing risk.
- **Liquidity**: Closed a $12.5 million credit facility to fund transaction costs and general corporate purposes, enhancing financial flexibility.

**【Q&A Key Takeaways】**
- **Market Trends**: Foreclosure starts and origination volumes remain depressed, but clients anticipate delinquency rate increases. FHA modification programs are leading to renewed default activity.
- **2025 Momentum**: Q1 revenue and EBITDA are tracking ahead of plan, with new product launches (e.g., renovation services) expected to double monthly revenue by year-end.
- **Debt Relief**: Lower interest costs and reduced refinancing risk position the company for positive operating cash flow in 2025, a first since 2019.

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