Estimated $15 Million in Annual Closed-Won Contracts and Expanding Late-Stage Pipeline with over 39 ProspectsLUXEMBOURG, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource®” or the “Company”) (NASDAQ: ASPS), a leading provider of real estate and mortgage solutions, today announced significant sales momentum in its Origination Solutions business, driven by strong demand for Lenders One® Credit (“L1 Credit”) and Lenders One® Verification (“L1 Verification”) services. The Compan ...

Core Viewpoint - Altisource Portfolio Solutions S.A. has filed a Form S-3 Registration Statement with the SEC to register the resale of shares issued to lenders as part of a debt exchange agreement [1][2]. Group 1: Debt Exchange Agreement - On February 19, 2025, Altisource entered into agreements with all lenders under its senior secured term loans, exchanging loans with an outstanding balance of $232.8 million for a new first lien loan facility of $160.0 million and 7.3 million shares of common stock [2]. - The 7.3 million shares have been adjusted for a 1-for-8 share consolidation effective May 28, 2025 [3]. Group 2: Registration Statement Details - The Form S-3 includes a preliminary prospectus that is not complete and may be subject to changes, and it is not yet effective [2]. Group 3: Company Overview - Altisource Portfolio Solutions S.A. is a provider and marketplace for the real estate and mortgage industries, offering a combination of operational excellence and innovative services and technologies [4].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to Q3 2024, driven by growth in various business segments [4][5] - GAAP earnings per share and cash flow from operations improved, with a pre-tax loss of $1.7 million, an improvement of $6.8 million from the previous year [5][11] - Adjusted EBITDA was flat at $3.6 million, with a slight increase in adjusted EBITDA for the service earning real estate segment to $10 million, up 1% from the previous year [5][8] Business Line Data and Key Metrics Changes - The service earning real estate segment generated $31.2 million in revenue, a 3% increase from Q3 2024, while adjusted EBITDA margins declined to 32.1% due to a revenue mix shift [7][8] - The origination segment saw a 9% increase in service revenue to $8.5 million, but adjusted EBITDA remained flat at $900,000, with margins declining to 10.3% [9][10] Market Data and Key Metrics Changes - The residential mortgage default market showed 90-plus-day mortgage delinquency rates at 1.3%, with foreclosure starts increasing by 19% and sales by 10% year-over-year [11][12] - The real estate market is perceived to be weakening, indicated by higher inventory and extended sales timelines, affecting the percentage of homes sold at foreclosure auctions [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as renovation and risk management services [5][6] - There is an emphasis on maintaining cost discipline while pursuing growth opportunities in a low delinquency environment, positioning the company for potential revenue increases if market conditions change [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the third-quarter performance and the potential for continued growth, highlighting a strong sales pipeline and new business wins [13][17] - The company is well-positioned to benefit from increased loan delinquencies and foreclosure activity, which could enhance revenue and adjusted EBITDA in countercyclical businesses [14] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but the company continues to manage REO and receive referrals [9] - The company won four new customers for the Equator platform, which are expected to generate additional revenue as they load more assets [15] Q&A Session Summary Question: Are the new customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that three of the four new customers are live and loading properties, which should generate revenue and facilitate cross-selling with Hubzu Marketplace [15]

Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to Q3 2024, driven by growth in various business segments [4][5] - Adjusted EBITDA was flat at $3.6 million, with service revenue growth offset by lower business segment margins [5] - The pre-tax loss improved by $6.8 million to a loss of $1.7 million in Q3 2025, primarily due to lower interest expenses [5][11] Business Line Data and Key Metrics Changes - The service earning real estate segment generated $31.2 million in revenue, a 3% increase from Q3 2024, with adjusted EBITDA of $10 million, reflecting a slight margin decline [7][8] - The origination segment saw service revenue rise by 9% to $8.5 million, but adjusted EBITDA remained flat at $900,000, with a decline in margins [9][10] Market Data and Key Metrics Changes - The residential mortgage default market showed 90+ day mortgage delinquency rates at 1.3%, with foreclosure starts increasing by 19% and sales by 10% year-over-year [11][12] - The real estate market is perceived to be weakening, indicated by higher inventory and extended sales timelines [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as renovation and risk management services [5][6] - The strategy includes maintaining cost discipline while capitalizing on countercyclical business opportunities as market conditions evolve [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third-quarter results and the potential for continued growth, particularly in businesses that are expected to benefit from increasing loan delinquencies and foreclosure activity [13][14] - The company is well-positioned to leverage its strengths in a changing market environment, anticipating stronger revenue and adjusted EBITDA growth [14] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but Altisource continues to manage REO and receive referrals [9] - The company won new business that is expected to generate $3.2 million in annual service revenue, with a significant sales pipeline of $24.4 million [8][10] Q&A Session Summary Question: Are the customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that new customers for the Equator platform are now live and loading properties, which should generate revenue as assets are loaded, with historical success in cross-selling to Hubzu [15]

Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to the same quarter last year, driven by growth in various business segments [6][7] - GAAP loss before income taxes improved by $6.8 million to a pretax loss of $1.7 million, primarily due to lower interest expenses [8] - Operating cash flow improved by $2.3 million year-over-year, ending the quarter with $28.6 million in unrestricted cash [8] Business Line Data and Key Metrics Changes - The servicer and real estate segment generated $31.2 million in service revenue, a 3% increase from the previous year, with adjusted EBITDA of $10 million [10] - The origination segment saw service revenue rise by 9% to $8.5 million, although adjusted EBITDA remained flat at $900,000 [12] - The corporate segment reported an adjusted EBITDA loss of $7.3 million, slightly higher than the previous year [14] Market Data and Key Metrics Changes - The residential mortgage default market showed a 19% increase in foreclosure starts and a 10% increase in foreclosure sales for the first eight months of 2025 compared to the same period in 2024 [15] - Mortgage origination unit volume increased by 17% year-over-year, with refinance volume up by 103% [16] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as Renovation and Granite Construction Risk Management [8][9] - The strategy includes maintaining cost discipline and reducing corporate interest expenses to support long-term growth [17] Management's Comments on Operating Environment and Future Outlook - Management noted that despite low delinquency rates, foreclosure starts and sales are increasing, indicating a potential shift in the market [15] - The company believes it is well-positioned to benefit from stronger revenue and adjusted EBITDA growth if loan delinquencies and foreclosure activities rise [17] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but Altisource continues to manage REO and receive referrals [11] - The company won new business estimated to generate $3.2 million in annual service revenue, with a total weighted average sales pipeline of $24.4 million [10] Q&A Session Summary Question: Are the customer wins for the Equator platform expected to translate to more inventory on Hubzu in the future? - Yes, the company won four new customers for the Equator platform, with three now live and loading properties, which should generate revenue as more assets are loaded [19]

Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to Q3 2024, driven by growth in various business segments [4][5] - GAAP earnings before income taxes improved by $6.8 million to a pre-tax loss of $1.7 million in Q3 2025, compared to a pre-tax loss of $8.5 million in the same quarter last year [5] - Operating cash flow improved by $2.3 million year-over-year, ending the quarter with $28.6 million in unrestricted cash [5] Business Line Data and Key Metrics Changes - The service earning real estate segment generated $31.2 million in revenue, a 3% increase from Q3 2024, with adjusted EBITDA of $10 million, reflecting a slight increase of $100,000 [6][8] - The origination segment saw service revenue rise by 9% to $8.5 million, while adjusted EBITDA remained flat at $900,000, with margins declining to 10.3% [9][10] - The corporate segment reported an adjusted EBITDA loss of $7.3 million, which was $100,000 higher than the previous year [11] Market Data and Key Metrics Changes - The residential mortgage default market showed 90-plus-day mortgage delinquency rates at 1.3%, with foreclosure starts increasing by 19% and foreclosure sales by 10% year-over-year [11][12] - The real estate market is perceived to be weakening, indicated by higher inventory and extended sales timelines [12] - Mortgage origination unit volume increased by 17% year-to-date, with refinance volume up by 103% [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as renovation and Granite Construction Risk Management [5][6] - The strategy includes maintaining cost discipline while capitalizing on potential increases in loan delinquencies and foreclosure activities to drive revenue growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued growth, emphasizing the importance of new business wins and a strong sales pipeline [13] - The outlook suggests that if loan delinquencies and foreclosure activities increase, the company is well-positioned to benefit from stronger revenue and adjusted EBITDA growth [13] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but the company continues to manage REO and receive referrals [9] - The company won four new customers for the Equator platform, with three already live, which is expected to generate additional revenue [15] Q&A Session Summary Question: Are the new customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that as new customers load assets onto the Equator platform, revenue generation is anticipated, and there is a history of successful cross-selling with Hubzu Marketplace [15]

ALTISOURCE PORTFOLIO SOLUTIONS THIRD QUARTER 2025 SUPPLEMENTARY INFORMATION © 2025 Altisource All Rights Reserved. AUGUST 2022 Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis. DISCLAIMER This presentation 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 t ...

Core Viewpoint - Altisource Portfolio Solutions S.A. reported solid financial performance for the third quarter of 2025, with growth in service revenue and improvements in earnings metrics compared to the same period in 2024 [2][5]. Company Financial Performance - Service revenue for Q3 2025 was $39.7 million, an increase of $1.5 million or 4% from Q3 2024 [5][6]. - The net loss attributable to Altisource was $2.4 million, representing a $7.0 million improvement compared to the same quarter of 2024 [5][6]. - Diluted loss per share improved to $(0.22), a $2.39 improvement from the same quarter in 2024 [5][6]. - Adjusted EBITDA for Q3 2025 was $3.6 million, roughly flat compared to Q3 2024, with an adjusted EBITDA margin of 9.1%, down from 9.5% in the same quarter of 2024 [5][6]. - The company ended the quarter with $28.6 million in cash and cash equivalents [5]. Business Segments Performance - Adjusted EBITDA in the Servicer and Real Estate and Origination segments improved to $10.9 million, or 27.5% of service revenue, compared to $10.8 million, or 28.3% of service revenue in Q3 2024 [5]. - The company generated sales wins estimated to represent potential annualized service revenue of $3.2 million for the Servicer and Real Estate segment and $11.2 million for the Origination segment [5][6]. Industry Context - Industrywide foreclosure initiations were 19% higher for the eight months ended August 31, 2025, compared to the same period in 2024 [5]. - Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025, driven by a 4% decline in purchase origination and a 103% increase in refinancing origination [5].

Financial Performance - Third quarter Service revenue was $39.7 million, an increase of $1.5 million or 4% compared to the same quarter of 2024[7] - Loss before income taxes and non-controlling interests improved by $6.8 million to $(1.7) million compared to the same quarter of 2024[7] - Net loss attributable to Altisource was $(2.4) million, a $7.0 million improvement compared to the same quarter of 2024[7] - Adjusted EBITDA for the third quarter was $3.6 million, roughly flat compared to the same quarter of 2024[7] - Adjusted EBITDA margin decreased to 9.1% from 9.5% in the same quarter of 2024, primarily due to product mix[7] - Adjusted diluted earnings per share improved to $0.10 from $(1.83) in the same quarter of 2024, a 105% increase[8] - Service revenue for Q3 2025 was $39.666 million, up from $38.150 million in Q3 2024, representing a growth of 3.96%[14] - Total revenue for the nine months ended September 30, 2025, reached $128.635 million, compared to $119.121 million for the same period in 2024, an increase of 8.57%[14] - Gross profit for Q3 2025 was $11.347 million, a decrease from $12.070 million in Q3 2024, reflecting a decline of 6.00%[14] - Basic loss per share improved to $(0.22) in Q3 2025 from $(2.61) in Q3 2024[14] - The company reported net cash used in operating activities of $(4.560) million for the nine months ended September 30, 2025, compared to $(3.624) million for the same period in 2024[18] - Adjusted net income attributable to Altisource for the nine months ended September 30, 2025, was not explicitly stated but is a key measure for evaluating ongoing performance[22] - For the three months ended September 30, 2025, adjusted operating income was $2,663,000, compared to $3,419,000 for the same period in 2024, representing a decrease of 22.2%[29] - The net loss attributable to Altisource for the nine months ended September 30, 2025, was $8,842,000, an improvement from a net loss of $26,867,000 in the same period of 2024[29] - Adjusted EBITDA for the three months ended September 30, 2025, was $3,621,000, slightly down from $3,624,000 in 2024, while for the nine months it increased to $14,265,000 from $12,640,000[29] - The diluted loss per share for the three months ended September 30, 2025, was $(0.22), compared to $(2.61) in 2024, indicating a significant improvement[31] - The company reported a pretax loss attributable to Altisource of $(1,736,000) for the three months ended September 30, 2025, compared to $(8,553,000) in 2024, showing a reduction of 79.7%[29] - Total income from operations for the three months ended September 30, 2025, was $521,000, down from $1,105,000 in 2024, reflecting a decline of 52.8%[29] - The adjusted pretax income attributable to Altisource for the nine months ended September 30, 2025, was $4,431,000, compared to a loss of $(16,683,000) in 2024, marking a significant turnaround[29] Cash and Debt Management - The company ended the quarter with $28.6 million in cash and cash equivalents[7] - Cash and cash equivalents at the end of Q3 2025 were $28.598 million, slightly down from $29.811 million at the end of 2024[16] - Total current liabilities decreased significantly to $39.657 million in Q3 2025 from $271.273 million at the end of 2024, indicating improved financial stability[16] - The company issued equity in exchange for debt reduction amounting to $45.370 million, reflecting strategic financial management[20] - Net debt as of September 30, 2025, stood at $143,290 million after accounting for cash and cash equivalents of $28,598 million[35] Business Development - New business won during the quarter is estimated to represent $14.4 million of annual Service revenue on a stabilized basis[5] - The weighted average sales pipeline was estimated between $33.6 million and $42.0 million for potential service revenue on a stabilized basis[7] - Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025, compared to the same period in 2024[9] Expenses and Compensation - Share-based compensation expense for Q3 2025 was $1,308 million, compared to $859 million in Q3 2024, reflecting a 52% increase[33] - Cost of cost savings initiatives for Q3 2025 was $276 million, up from $185 million in Q3 2024, indicating a 49% increase[33] - The per diluted share impact of share-based compensation expense, net of tax, was $0.11 for Q3 2025, down from $0.20 in Q3 2024[33] - Debt exchange transaction expenses for Q3 2025 amounted to $194 million, with a per diluted share impact of $0.02[33] - The company incurred debt exchange transaction expenses of $194,000 for the three months ended September 30, 2025, and $3,646,000 for the nine months, impacting overall financial performance[29] Taxation - The company recognized a full valuation allowance on its net deferred tax assets in Luxembourg, resulting in an effective tax rate of close to 0% for 2024 and 2025[23] - The company reported a significant tax benefit from certain income tax-related items of $536 million for Q3 2025, compared to $616 million in Q3 2024[33]