Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) reported fourth‑quarter and full‑year 2025 results that showed continued revenue growth and a modest rise in adjusted EBITDA. Service revenue for the year totaled $161.3 million, up 7 percent from $150.4 million in 2024, while adjusted EBITDA increased to $18.3 million, a 5 percent gain over the $17.4 million reported in 2024.
The fourth‑quarter service revenue was $39.9 million, up 4 percent from $38.4 million in Q4 2024, but adjusted EBITDA fell to $4.0 million from $4.7 million in the prior year’s quarter, reflecting a mix shift toward lower‑margin segments and higher corporate costs.
Revenue growth was driven by a 16 percent increase in the origination segment, which generated $35.2 million in 2025, and a 5 percent rise in the Servicer and Real Estate segment, which produced $126.1 million. The company’s Hubzu Marketplace inventory expanded 137 percent to 13,500 assets, supporting the origination win.
Interest expense was reduced through a debt‑exchange transaction completed in February 2025, while foreign‑currency fluctuations pushed corporate costs higher, partially offsetting the benefit of the interest‑expense reduction.
CEO William Shepro said, “We are pleased with our full year and fourth quarter 2025 performance driven by disciplined execution, reduced interest expense and strong sales wins across both business segments.” He added, “The strong sales wins, including fourth 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.” CFO Michelle Esterman noted the company ended the year with $26.6 million in unrestricted cash.
For 2026, Altisource is guiding service revenue of $165 million to $185 million and adjusted EBITDA of $15 million to $20 million, a midpoint revenue growth of 8.5 percent and a near‑flat EBITDA outlook. The guidance reflects management’s confidence that new sales wins will offset the loss of Rithm and Onity agreements, which are expected to reduce service revenue and EBITDA in the first half of the year.
The announcement was met with a 6.82 percent decline in pre‑market trading on March 4, 2026, and the stock closed at $7.11 on March 3. Investors focused on the anticipated loss of the Rithm and Onity agreements as the primary headwind, while tailwinds included the company’s strong sales wins and the rapid growth of the Hubzu Marketplace.
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