Altisource Portfolio Solutions (ASPS) Q4 2025 earnings summary

Executive summary

• Service revenue, adjusted EBITDA, and GAAP earnings all grew year-over-year in 2025, reflecting disciplined execution, lower interest expense, and strong sales wins across both business segments.

• Fourth quarter sales wins are expected to generate $13.2 million in stabilized annual revenue, supporting future growth and diversification.

• Hubzu foreclosure auction and REO inventory grew 137% since Q3, reaching 13,500 assets by mid-February 2026.

Financial highlights

• 2025 service revenue increased 7% year-over-year to $161.3 million, with both segments contributing.

• Adjusted EBITDA for the business segments rose 7% to $47.6 million; total company adjusted EBITDA up 5% to $18.3 million.

• GAAP loss before income taxes improved to $14.1 million from $32.9 million in 2024, aided by lower interest expense.

• Net income attributable to shareholders improved by $37.3 million to $1.6 million in 2025.

• Ended 2025 with $26.6 million in unrestricted cash.

• Fourth quarter 2025 service revenue was $39.9 million, up 4% year-over-year.

Outlook and guidance

• 2026 service revenue forecasted at $165–$185 million and adjusted EBITDA at $15–$20 million, reflecting 8.5% revenue growth at the midpoint and nearly flat adjusted EBITDA.

• Guidance assumes roll-off of Rithm and Onity business in the first half of 2026, with new sales wins expected to offset lost revenue.

• Projected to generate positive operating cash flow for 2026 at the midpoint of guidance.

• Strategic focus on Project 45, targeting $45 million run-rate adjusted EBITDA by Q4 2028 through growth in non-default businesses and new Hubzu programs.