"We delivered solid third quarter performance. We grew Service revenue and improved pre-and post-tax GAAP earnings, GAAP earnings per share, and cash flow from operations compared to the third quarter of last year. This is largely from our focus on growing our businesses that have tailwinds, cost discipline and lower interest expense," said Chairman and Chief Executive Officer William B. Shepro.
Mr. Shepro further commented, "More importantly, we are winning new business and have a strong sales pipeline, while maintaining cost discipline and significantly reducing corporate interest expense. During the third quarter of 2025, we won new business that we estimate represents $14.4 million of annual Service revenue on a stabilized basis."
Third Quarter 2025 Highlights(2)
Company, Corporate and Financial:
Third quarter Service revenue of $39.7 million was $1.5 million, or 4%, higher than the same quarter of 2024
Third quarter Loss before income taxes and non-controlling interests of $1.7 million was a $6.8 million improvement compared to the same quarter of 2024
Third quarter Net loss attributable to Altisource of $2.4 million was a $7.0 million improvement compared to the same quarter of 2024
Third quarter Diluted loss per share of $(0.22) was a $2.39 improvement compared to the same quarter of 2024
Third quarter Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA")(1) of $3.6 million was roughly flat compared to the same quarter of 2024
Third quarter Adjusted EBITDA(1) margin of 9.1% was lower than the 9.5% Adjusted EBITDA(1) margin in the same quarter of 2024 largely due to product mix
Ended the quarter with $28.6 million of cash and cash equivalents.
Business and Industry:
Improved Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together "Business Segments") to $10.9 million, or 27.5% of Service revenue, from $10.8 million, or 28.3% of Service revenue, in the same quarter of 2024 primarily from service revenue growth
Generated sales wins which we estimate represent potential annualized service revenue on a stabilized basis of $3.2 million for the Servicer and Real Estate segment and $11.2 million for the Origination segment
Ended the quarter with a weighted average sales pipeline between $33.6 million and $42.0 million of estimated potential service revenue on a stabilized basis based upon forecasted probability of closing (comprising of between $21.7 million and $27.1 million in the Servicer and Real Estate segment and between $11.9 million and $14.8 million in the Origination segment)
Industrywide foreclosure initiations were 19% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 21% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide foreclosure sales were 10% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 49% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025 compared to the same period in 2024, comprised of a 4% decline in purchase origination and a 103% increase in refinancing origination(4)
Third Quarter 2025 Financial Results
Service revenue of $39.7 million
Income from operations of $0.5 million
Loss before income taxes and non-controlling interests of $(1.7) million
Net loss attributable to Altisource of $(2.4) million
Adjusted EBITDA(1) of $3.6 million
Diluted loss per share of $(0.22)
Third Quarter and Year-to-Date 2025 Results Compared to the Third Quarter and Year-to-Date 2024 (unaudited):
(in thousands, except per share data)
Third Quarter 2025
Third Quarter 2024
% Change
Year-to-Date September 30, 2025
Year-to-Date September 30, 2024
% Change
Service revenue
$
39,666
$
38,150
4
$
121,348
$
111,904
8
Revenue
41,908
40,531
3
128,635
119,121
8
Gross profit
11,347
12,070
(6
)
37,699
37,091
2
Income from operations
521
1,105
(53
)
6,997
2,640
165
Adjusted operating income(1)
2,663
3,419
(22
)
13,297
10,587
26
Loss before income taxes and non-controlling interests
(1,665
)
(8,493
)
80
(6,007
)
(24,494
)
75
Pretax loss attributable to Altisource(1)
(1,736
)
(8,553
)
80
(6,227
)
(24,630
)
75
Adjusted pretax income (loss) attributable to Altisource(1)
1,312
(6,239
)
121
4,431
(16,683
)
127
Adjusted EBITDA(1)
3,621
3,624
—
14,265
12,640
13
Net (loss) income attributable to Altisource
(2,396
)
(9,362
)
74
8,842
(26,867
)
133
Adjusted net income (loss) attributable to Altisource(1)
1,092
(6,573
)
117
3,115
(18,134
)
117
Diluted (loss) earnings per share
(0.22
)
(2.61
)
92
0.81
(7.55
)
111
Adjusted diluted earnings (loss) per share(1)
0.10
(1.83
)
105
0.29
(5.10
)
106
Net cash provided by (used in) operating activities
718
(1,567
)
146
(4,560
)
(3,624
)
(26
)
Net cash provided by (used in) operating activities less additions to premises and equipment(1)
697
(1,567
)
144
(4,609
)
(3,624
)
(27
)
Margins:
Gross profit / service revenue
29
%
32
%
31
%
33
%
Adjusted EBITDA(1)/ service revenue
9
%
9
%
12
%
11
%
Third quarter 2025 and year-to-date 2025 loss before income taxes and non-controlling interests includes $0.2 million and $3.6 million, respectively, of Debt Exchange Transaction expenses (no comparative amount for the third quarter 2024 and year-to-date 2024).
________________________
(1)
This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein
(2)
Applies to the third quarter 2025 unless otherwise indicated
(3)
Based on data from ICE's Mortgage Monitor and First Look reports with data through August 2025
(4)
Based on estimated number of loans originated as reported by the Mortgage Bankers Association's Mortgage Finance Forecast dated October 19, 2025
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "plan," "estimate," "seek," "believe," "potential" or "continue" or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 31, 2025 and in our Forms 10-Q filed with the SEC on May 1, 2025 and October 23, 2025. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our debt agreements, including the financial and other covenants contained therein, as well as Altisource's ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events, except as required by law.
Webcast
Altisource will host a webcast at 08:30 a.m. EDT today to discuss our third quarter. A link to the live audio webcast will be available on Altisource's website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Altisource
Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.
FOR FURTHER INFORMATION CONTACT:
Michelle D. EstermanChief Financial OfficerT: (770) 612-7007E:
ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME(in thousands, except per share data)(unaudited)
Three months endedSeptember 30,
Nine months endedSeptember 30,
2025
2024
2025
2024
Service revenue
$
39,666
$
38,150
$
121,348
$
111,904
Reimbursable expenses
2,171
2,321
7,067
7,081
Non-controlling interests
71
60
220
136
Total revenue
41,908
40,531
128,635
119,121
Cost of revenue
30,561
28,461
90,936
82,030
Gross profit
11,347
12,070
37,699
37,091
Selling, general and administrative expenses
10,826
10,965
30,702
34,451
Income from operations
521
1,105
6,997
2,640
Other income (expense), net:
Interest expense
(2,368
)
(9,960
)
(9,921
)
(29,277
)
Debt exchange transaction expenses
(194
)
—
(3,646
)
—
Other income (expense), net
376
362
563
2,143
Total other income (expense), net
(2,186
)
(9,598
)
(13,004
)
(27,134
)
Loss before income taxes and non-controlling interests
(1,665
)
(8,493
)
(6,007
)
(24,494
)
Income tax (provision) benefit
(660
)
(809
)
15,069
(2,237
)
Net (loss) income
(2,325
)
(9,302
)
9,062
(26,731
)
Net income attributable to non-controlling interests
(71
)
(60
)
(220
)
(136
)
Net (loss) income attributable to Altisource
$
(2,396
)
$
(9,362
)
$
8,842
$
(26,867
)
(Loss) earnings per share:
Basic
$
(0.22
)
$
(2.61
)
$
0.91
$
(7.55
)
Diluted
$
(0.22
)
$
(2.61
)
$
0.81
$
(7.55
)
Weighted average shares outstanding:
Basic
10,988
3,584
9,755
3,559
Diluted
10,988
3,584
10,890
