Altisource Portfolio Solutions (NASDAQ:ASPS) reported improved full-year 2025 results on its fourth-quarter earnings call, citing higher service revenue, better profitability metrics, and strong sales wins across both of its operating segments. Chairman and CEO Bill Shepro said the company grew service revenue, adjusted EBITDA, and GAAP earnings versus 2024, attributing the gains to “disciplined execution,” lower interest expense from a new capital structure, and new customer wins.
Full-year 2025 results and cash position
Shepro said 2025 service revenue increased 7% year over year to $161.3 million, with contributions from wins in both business segments. Business segment adjusted EBITDA improved by $3.0 million, or 7%, to $47.6 million, while total company adjusted EBITDA increased by $0.9 million, or 5%, to $18.3 million. He said higher revenue was partially offset by revenue mix and modestly higher corporate costs.
On cash flow, Shepro noted that 2025 net cash used in operating activities “would have been close to zero” excluding debt exchange transaction expenses and $1.2 million of higher first-quarter cash interest expense associated with the prior debt agreement. He added that, adjusting for these items, net cash used in operating activities improved by approximately $60 million over the last five years. The company ended 2025 with $26.6 million in unrestricted cash.
Fourth-quarter performance
In the fourth quarter, Altisource posted service revenue of $39.9 million, up 4% from the prior-year quarter, driven by growth in the origination segment. Business segment adjusted EBITDA was $11.4 million, flat year over year, while total company adjusted EBITDA was $4.0 million due to higher corporate segment costs.
Management said corporate segment costs rose by $0.7 million versus the fourth quarter of 2024, primarily due to foreign currency fluctuations. The GAAP loss before income taxes and non-controlling interests improved to $8.1 million from $8.4 million, with lower interest expense partially offset by the $7.5 million legacy litigation settlement loss.
Rithm and Onity changes factor into 2026 assumptions
Shepro discussed two developments tied to Rithm and Onity that are embedded in the company’s 2026 outlook. He said the cooperative brokerage agreement (CBA) between Altisource and Rithm expired on Aug. 31, 2025. Despite the expiration, Altisource continues to manage CBA REO assets and still receives new referrals “with limited exceptions,” at Rithm’s discretion. However, for guidance purposes, the company assumes this business will roll off during the first half of 2026.
Separately, Shepro said Rithm provided notice in the fourth quarter that it is terminating its servicing agreements with Onity. As the related service transfers occur, Altisource expects reduced foreclosure trustee, title, and field service referrals from Onity tied to those portfolios. The company’s 2026 guidance assumes Onity-serviced, Rithm-owned MSRs transfer to Rithm during the first half of 2026.
While management said it would prefer to retain the business, Shepro said Altisource believes its sales wins, once stabilized, “should more than offset” the anticipated reduction in service revenue and EBITDA from the Rithm- and Onity-related changes. He added that by the fourth quarter of 2026, Rithm and Onity are expected to represent a significantly smaller share of Altisource’s revenue base.
Segment highlights: Servicer and real estate, and origination
In the company’s countercyclical servicer and real estate segment, 2025 service revenue rose 5% to $126.0 million. Shepro said results reflected 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. Segment adjusted EBITDA increased 6% to $44.6 million, with margins improving due to revenue mix.
Altisource highlighted sales wins in the segment totaling an estimated $20.6 million in annualized stabilized service revenue during 2025, including $11.5 million in the fourth quarter. Shepro said two of the larger fourth-quarter wins were in the higher-margin marketplace business unit, Hubzu: an REO asset management and foreclosure auction agreement with a residential loan servicer, and a CWCOT “first chance” foreclosure auction agreement with an existing customer. The servicer and real estate segment ended 2025 with a total weighted-average sales pipeline of $19.3 million on a stabilized basis, including opportunities in trustee and title that management said it was optimistic could close in the second quarter “if not sooner.”
Management also emphasized Hubzu inventory growth following the new wins. As of Feb. 15, total Hubzu inventory was 13,500 assets, up from 5,700 assets as of Sept. 30. Shepro said Hubzu’s foreclosure auction and REO inventory increased 137% since the end of the third quarter to 13,500 assets as of mid-February. The company expects revenue from these customers to rise during 2026 as referrals proceed to sale.
In the origination segment, 2025 service revenue increased 16% to $35.2 million, while adjusted EBITDA rose 19% to $2.9 million, with modest margin improvement. Shepro attributed growth to continued expansion in the Lenders One business, including onboarding the forecasted $11.2 million in third-quarter wins. He said origination segment service revenue growth accelerated in the fourth quarter, rising 40% year over year. For 2026, management anticipates strong year-over-year service revenue and adjusted EBITDA growth in the origination segment as recently won business scales and as pipeline converts to wins.
The origination segment recorded an estimated $1.8 million in wins in 2025, primarily in Lenders One, and ended the year with an estimated $14.9 million weighted-average sales pipeline. Management said it is engaging with several large prospects and expects additional wins in the first half of 2026.
2026 guidance and Project 45 target
Altisource forecast 2026 service revenue of $165 million to $185 million and adjusted EBITDA of $15 million to $20 million. At the midpoint, Shepro said this implies 8.5% service revenue growth and “close to flat” adjusted EBITDA. The outlook assumes roughly flat industry-wide delinquency rates, Mortgage Bankers Association (MBA) forecast origination volume growth, and contributions from onboarding and ramping recent wins, converting pipeline opportunities, and implementing price increases for certain services, partially offset by assumed losses related to the CBA roll-off and Onity-related service transfers.
Altisource said the primary drivers of variability in the guidance range are timing differences tied to potential CBA and Onity roll-offs and the ramp of sales wins and pipeline conversions. At the midpoint of guidance, the company expects to generate positive operating cash flow in 2026.
Shepro also pointed to “Project 45,” Altisource’s strategic initiative targeting a $45 million adjusted EBITDA run rate by the fourth quarter of 2028. Management said the plan is supported by momentum in several areas, including Lenders One, Hubzu Marketplace, Foreclosure Trustee, Title, Granite, Renovation, and Field Services.
The call included no analyst questions. In closing remarks, Shepro said the company was pleased with its 2025 performance and believes it is positioned for continued growth.
About Altisource Portfolio Solutions (NASDAQ:ASPS)
Altisource Portfolio Solutions SA (NASDAQ: ASPS) is a provider of proprietary technology and specialized services to the mortgage and real estate industries. Founded in 2009, the company helps financial institutions, investors and loan servicers streamline processes across the full loan lifecycle, from origination and valuation through default management, asset disposition and investor reporting.
Core offerings include loan servicing and asset management solutions, property preservation and inspection services, valuation and due diligence, title and settlement services, as well as vendor management platforms.
