In This Article:
-
Service Revenue: $40.9 million, an 11% increase over Q1 2024.
-
Adjusted EBITDA: $5.3 million, a 14% increase over Q1 2024.
-
Unrestricted Cash: $30.8 million at the end of the quarter.
-
Long-term Debt: Reduced by over $60 million to $172.5 million.
-
GAAP Interest Expense: $4.9 million, down from $9.5 million in Q1 2024.
-
Servicer and Real Estate Segment Revenue: $32.9 million, a 13% increase over Q1 2024.
-
Servicer and Real Estate Segment Adjusted EBITDA: $12 million, a 15% increase over Q1 2024.
-
Origination Segment Revenue: $8 million, a 3% increase over Q1 2024.
-
Corporate Segment Adjusted EBITDA Loss: $7.2 million, a $900,000 increase over Q1 2024.
-
Foreclosure Starts: Increased by 25% in Q1 2025 compared to Q1 2024.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Altisource Portfolio Solutions SA reported a 11% year-over-year increase in total company service revenue, reaching $40.9 million.
-
Adjusted EBITDA grew by 14% to $5.3 million, outpacing service revenue growth due to scale benefits and a favorable revenue mix.
-
The company significantly strengthened its balance sheet by reducing long-term debt by over $60 million and lowering interest expenses.
-
The Servicer and Real Estate segment saw a 13% increase in service revenue, driven by the launch and growth of the renovation business and stronger foreclosure starts.
-
Altisource Portfolio Solutions SA won new business estimated to generate $4.7 million in annual service revenue, indicating strong sales performance and future growth potential.
Negative Points
-
The Corporate segment's adjusted EBITDA loss increased by $900,000 or 15% to $7.2 million, primarily due to non-recurring benefits in the previous year.
-
Despite growth in certain areas, the origination segment's adjusted EBITDA remained flat, reflecting challenges in the origination market.
-
Foreclosure sales for the first quarter of 2025 declined by 2% compared to last year and are 53% lower than the same period in 2019.
-
The origination market continues to face challenges, with first quarter 2025 mortgage origination volume relatively flat compared to the previous year.
-
The company faces potential risks from a weakening U.S. economy, which could impact loan delinquencies and foreclosure activities.
Q & A Highlights
Q: Can you provide an overview of Altisource's financial performance for the first quarter of 2025? A: William Shepro, Chairman and CEO, highlighted that Altisource achieved an 11% increase in service revenue to $40.9 million and a 14% rise in adjusted EBITDA to $5.3 million compared to the first quarter of 2024. This growth was driven by the ramp-up of the renovation business, stronger foreclosure starts, and sales wins.