Core Viewpoint - Altisource Portfolio Solutions S.A. has implemented a reverse stock split at a ratio of 1-for-8, affecting its publicly traded warrants and the trading of its common stock on Nasdaq [1][3]. Share Consolidation Impact - The Share Consolidation became effective on May 28, 2025, with Altisource's common stock trading on a Share Consolidation-adjusted basis from that date [1]. - The Warrant Exercise Rate has decreased from 1.625 to 0.20313, while the Implied Per Share Exercise Price has increased from $1.20 to $9.5998 [3]. Warrant Details - Two types of warrants have been issued: Cash Exercise Stakeholder Warrants and Net Settle Stakeholder Warrants, trading under tickers ASPSZ and ASPSW respectively [2]. - The exercise of warrants can begin on July 2, 2025, or when the VWAP of the Common Stock meets or exceeds the new Implied Per Share Exercise Price of $9.5998 for fifteen consecutive trading days [4]. - Fractional shares will not be issued upon exercise; holders must aggregate their warrants to receive whole shares, requiring at least five warrants to obtain one share due to the reduced Warrant Exercise Rate [4]. Company Overview - Altisource Portfolio Solutions S.A. is a provider and marketplace for the real estate and mortgage industries, offering innovative services and technologies to meet market demands [6].

Core Viewpoint - Altisource Portfolio Solutions S.A. will implement a 1-for-8 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share, effective May 28, 2025 [1][2][4] Group 1: Share Consolidation Details - The reverse stock split will reduce the number of issued and outstanding shares from approximately 88,951,925 to about 11,118,990 [4] - The consolidation will not change the authorized number of shares, and no fractional shares will be issued; instead, shareholders will receive cash for any fractional shares [3][4] - The new CUSIP number for the shares post-consolidation will be L0175J 138, and trading will continue under the symbol "ASPS" [2][4] Group 2: Approval and Process - The board of directors approved the share consolidation on March 16, 2025, and it was subsequently approved by shareholders on May 13, 2025 [4] - Equiniti Trust Company, LLC will act as the exchange agent for the share consolidation, providing instructions to shareholders regarding the exchange of stock certificates [5]

Core Points - Altisource Portfolio Solutions S.A. announced a reverse stock split approved by shareholders, consolidating every eight shares into one, reducing outstanding shares from approximately 88.95 million to about 11.12 million [1][2] - The reverse stock split is set to take effect on May 28, 2025, following necessary administrative procedures [2] - Shareholders must hold shares in multiples of eight by market close on May 27, 2025, to avoid receiving cash for fractional shares [3][4] - Fractional shares will be redeemed for cash at the closing price on May 27, 2025, and proceeds will be distributed pro rata without interest [3][4] - The consolidation aims to help the company comply with Nasdaq's minimum bid price requirement of $1.00 [5] Share Consolidation Details - The reverse stock split will reduce the total number of outstanding shares significantly, which is a strategic move to enhance the company's stock price [2][5] - The company has filed a definitive proxy statement with the U.S. Securities and Exchange Commission detailing the rationale and effects of the share consolidation [5] Shareholder Actions - Shareholders are encouraged to check with their financial intermediaries to ensure their holdings are in amounts divisible by eight to avoid cash-out for fractional shares [4] - The company will handle fractional shares by redeeming them for cash, ensuring that shareholders are informed of the process [3][4]

Core Viewpoint - Altisource Portfolio Solutions S.A. has announced the approval and upcoming trading of two types of warrants on the Nasdaq Global Select Market, which are expected to provide investment opportunities for stakeholders [1]. Group 1: Warrants Overview - The company has distributed two types of warrants: Cash Exercise Stakeholder Warrants and Net Settle Stakeholder Warrants, which will trade under the tickers "ASPSZ" and "ASPSW" respectively [1]. - Each warrant allows the holder to purchase 1.625 shares of common stock at an exercise price of $1.95 per warrant, initially equivalent to $1.20 per share [2]. - The Cash Exercise Stakeholder Warrants will expire on April 2, 2029, while the Net Settle Stakeholder Warrants will expire on April 30, 2032 [3]. Group 2: Exercise Conditions - Warrants can be exercised starting from July 2, 2025, or the first date when the volume-weighted average price (VWAP) of the common stock meets or exceeds the implied per share exercise price of $1.20 for fifteen consecutive trading days [2]. - The company will not issue fractional shares upon exercise; any fractional shares will be rounded down to the nearest whole number [2]. Group 3: Company Background - Altisource Portfolio Solutions S.A. is a leading integrated service provider and marketplace for the real estate and mortgage industries, focusing on operational excellence and innovative services [7].

Financial Data and Key Metrics Changes - The company reported a total service revenue of $40.9 million for Q1 2025, an 11% increase compared to Q1 2024 [6][7] - Adjusted EBITDA for Q1 2025 was $5.3 million, reflecting a 14% increase year-over-year [6][7] - The company ended the quarter with $30.8 million in unrestricted cash [6] Business Segment Data and Key Metrics Changes - The servicer and real estate segment generated service revenue of $32.9 million, a 13% increase from Q1 2024, with adjusted EBITDA of $12 million, up 15% [11] - The origination segment reported service revenue of $8 million, a 3% increase year-over-year, with adjusted EBITDA remaining flat at $500,000 [13] - The corporate segment's adjusted EBITDA loss increased by $900,000 to $7.2 million, primarily due to nonrecurring benefits in the previous year [15] Market Data and Key Metrics Changes - The mortgage delinquency rate was reported at 1.3% in March 2025, slightly higher than the historical low of 1.1% in May 2024 [15] - Foreclosure starts increased by 25% in Q1 2025 compared to the same period in 2024, although they were 18% lower than in 2019 [15][16] - The origination market faced challenges, with a 1% decrease in industry-wide origination volume compared to Q1 2024 [20] Company Strategy and Development Direction - The company aims to diversify its revenue base and ramp up business won while maintaining cost discipline [21] - Focus is on accelerating growth in certain businesses that are expected to benefit from favorable market conditions [21] - The company is positioned to benefit from potential increases in mortgage delinquencies and foreclosure activity [21] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economy and consumers face pressure, this could lead to higher mortgage delinquencies and foreclosure starts, which the company is well-positioned to capitalize on [21] - The company expressed confidence in its first-quarter results and its ability to navigate the current economic landscape [21] Other Important Information - The company successfully closed a transaction that reduced long-term debt by over $60 million, significantly strengthening its balance sheet [10] - The annual cash interest cost on the new debt is estimated to be approximately $9.5 million, down from $13 million previously [10] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management expressing satisfaction with the first-quarter performance [22][23]

Financial Data and Key Metrics Changes - The company reported a total service revenue of $40.9 million for Q1 2025, an 11% increase compared to Q1 2024 [6][7] - Adjusted EBITDA for Q1 2025 was $5.3 million, reflecting a 14% increase year-over-year [6][7] - The company ended the quarter with $30.8 million in unrestricted cash [6] Business Segment Data and Key Metrics Changes - The servicer and real estate segment generated service revenue of $32.9 million, a 13% increase from Q1 2024, with adjusted EBITDA of $12 million, up 15% [11] - The origination segment reported service revenue of $8 million, a 3% increase year-over-year, with adjusted EBITDA remaining flat at $500,000 [13] - The corporate segment's adjusted EBITDA loss increased by $900,000 to $7.2 million, primarily due to nonrecurring benefits in the previous year [15] Market Data and Key Metrics Changes - The 90+ day mortgage delinquency rate was 1.3% in March 2025, slightly higher than the historical low of 1.1% in May 2024 [15] - Foreclosure starts increased by 25% in Q1 2025 compared to the same period in 2024, although they were 18% lower than in Q1 2019 [16] - The origination market faced challenges, with industry-wide origination volume decreasing by 1% year-over-year [20] Company Strategy and Development Direction - The company aims to diversify its revenue base and ramp up business won while maintaining cost discipline [21] - Focus is on accelerating growth in certain businesses that are expected to benefit from market tailwinds [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter results and the company's positioning to benefit from potential increases in mortgage delinquencies and foreclosure activity [21] - Concerns were raised about the potential weakening of the U.S. economy, which could lead to higher loan delinquencies and foreclosure starts [19][21] Other Important Information - The company successfully closed a transaction on February 19 that significantly strengthened its balance sheet and reduced interest expenses, lowering long-term debt from $232.8 million to $172.5 million [9][10] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded with management expressing satisfaction with the first quarter performance [22][23]

Financial Performance - Altisource's service revenue grew by 11% to $40.9 million compared to Q1 2024[10] - Adjusted EBITDA increased by 14% to $5.3 million compared to Q1 2024[10] - Business Segments Adjusted EBITDA was $12.5 million with a 30.5% margin, a $1.6 million improvement and a 100-basis point margin increase[17] - Corporate Adjusted EBITDA loss increased by $0.9 million, or 15%, to $7.2 million[17] Debt and Interest Expense - Long-term debt reduced by over $60 million, from $232.8 million to $172.5 million[19] - Annual cash and payment-in-kind interest expense reduced by approximately $18 million to $13 million on a pro forma basis[19] - Annual GAAP interest expense reduced by $23 million to approximately $9.5 million on a pro forma basis[19] Segment Performance - Servicer and Real Estate segment service revenue increased 13% to $32.9 million[22] - Servicer and Real Estate segment Adjusted EBITDA increased 15% to $12.0 million, with margins improving to 36.5%[22] - Origination segment service revenue increased 3% to $8.0 million[28] - Origination segment Adjusted EBITDA was flat at $0.5 million[28] Market Environment - Market-wide foreclosure starts increased 25% in Q1 2025 compared to Q1 2024, while foreclosure sales were 2% lower[22]

Company Overview - Altisource Portfolio Solutions S.A. reported financial results for Q1 2025, showing a strong performance with service revenue growth of 11% year-over-year to $40.9 million and Adjusted EBITDA growth of 14% to $5.3 million [2][5][6]. Financial Performance - The company achieved its highest quarterly service revenue since Q3 2021, driven by stronger foreclosure starts, sales wins, and the ramp-up of its Renovation business [5][6]. - Adjusted EBITDA margin improved to 12.9%, up from 12.6% in the same quarter of 2024 [5][6]. - The company ended the quarter with $30.8 million in cash and cash equivalents [5][6]. Debt Management - In February 2025, Altisource executed a debt exchange transaction, reducing its senior secured term loans from $232.8 million to a new first lien loan of $160 million, significantly lowering annual interest expenses [5][6][8]. - The debt exchange transaction is expected to reduce annual cash interest expenses by approximately $18 million and GAAP interest expense by $23 million [5][6]. Business Segments - The Servicer and Real Estate and Origination segments improved Adjusted EBITDA to $12.5 million, representing 30.5% of service revenue, up from 29.5% in Q1 2024 [4][5]. - The company generated estimated potential annualized service revenue of $4.7 million for both the Servicer and Real Estate segment and the Origination segment [7]. Industry Context - Industrywide foreclosure initiations increased by 25% year-over-year for the three months ended March 31, 2025, while foreclosure sales decreased by 2% [7]. - Mortgage origination volume saw a slight decline of 1%, with an 11% drop in purchase origination and a 25% increase in refinancing origination [7].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Grand Duchy of Luxembourg OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-34354 ALTISOURCE PORTFOLIO SOLUTIONS S.A. (Exact name of registrant as specified in its Charter) Luxemb ...

[Financial Highlights and CEO Commentary](index=1&type=section&id=First%20Quarter%202025%20Highlights) Altisource reported strong Q1 2025 results with an 11% year-over-year increase in Service revenue to $40.9 million and a 14% rise in Adjusted EBITDA to $5.3 million, driven by renovation business growth, increased foreclosure starts, and new sales wins Q1 2025 Key Performance Indicators (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Service Revenue | $40.9 million | $36.9 million | +10.8% | | Adjusted EBITDA | $5.3 million | $4.6 million | +13.6% | | Adjusted EBITDA Margin | 12.9% | 12.6% | +0.3 p.p. | - The company executed a Debt Exchange Transaction in February 2025, exchanging **$232.8 million** of senior secured term loans for a new **$160.0 million** first lien loan and approximately **58.2 million** common shares, expected to reduce annual cash and PIK interest by approximately **$18 million**[5](index=5&type=chunk)[7](index=7&type=chunk) - Management is focusing on accelerating growth in businesses with tailwinds, believing the company is well-positioned to benefit from potential increases in loan delinquencies, foreclosure starts, and foreclosure sales[4](index=4&type=chunk) Industry Trends (Q1 2025 vs. Q1 2024) | Industry Metric | YoY Change | | :--- | :--- | | Foreclosure Initiations | +25% | | Foreclosure Sales | -2% | | Mortgage Origination Volume | -1% | - The company generated new sales wins estimated to represent **$9.4 million** in potential annualized Service revenue and ended the quarter with a weighted average sales pipeline of **$34 million to $42 million**[7](index=7&type=chunk) [Detailed Financial Results Summary](index=3&type=section&id=First%20Quarter%202025%20Financial%20Results) The company's financial performance in Q1 2025 showed significant improvement over Q1 2024, with total revenue growing by 10% to $43.4 million and a shift from an operating loss to an operating income of $3.2 million Q1 2025 Financial Results vs. Q1 2024 (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Service revenue | $40,895 | $36,891 | 11% | | Income (loss) from operations | $3,245 | $(548) | N/M | | Adjusted operating income | $5,199 | $2,958 | 76% | | Net loss attributable to Altisource | $(5,344) | $(9,198) | 42% | | Adjusted net loss attributable to Altisource | $(144) | $(5,598) | 97% | | Diluted loss per share | $(0.09) | $(0.33) | 73% | - The Q1 2025 loss before income taxes includes **$3.0 million** of expenses related to the Debt Exchange Transaction, which did not have a comparable amount in Q1 2024[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Altisource's consolidated financial statements, including statements of operations, balance sheets, and cash flows, providing a comprehensive overview of the company's financial position and performance [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For Q1 2025, Altisource reported total revenues of $43.4 million, an increase from Q1 2024, and a significant turnaround to income from operations of $3.2 million, contributing to a narrowed net loss Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $43,439 | $39,469 | | Gross profit | $13,325 | $12,304 | | Income (loss) from operations | $3,245 | $(548) | | Interest expense | $(4,938) | $(9,529) | | Net loss attributable to Altisource | $(5,344) | $(9,198) | | Diluted loss per share | $(0.09) | $(0.33) | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Altisource's balance sheet reflects total assets of $145.7 million and a significantly improved liquidity profile due to debt reclassification, reducing the total deficit to $119.0 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $30,817 | $29,811 | | Total assets | $145,659 | $143,606 | | Current portion of long-term debt | $1,225 | $230,544 | | Long-term debt | $193,732 | $0 | | Total deficit | $(119,029) | $(156,711) | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company used $5.0 million in cash from operating activities, with financing activities providing a net cash inflow of $6.0 million, resulting in a $1.0 million increase in cash and cash equivalents Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,972) | $(2,237) | | Net cash used in investing activities | $(25) | $0 | | Net cash provided by (used in) financing activities | $5,990 | $(699) | | Net increase (decrease) in cash | $993 | $(2,936) | - A significant non-cash financing activity in Q1 2025 was the issuance of **$45.37 million** in equity in exchange for debt reduction as part of the Debt Exchange Transaction[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=8&type=section&id=NON-GAAP%20MEASURES) This section details the non-GAAP financial measures used by management, such as Adjusted EBITDA, Adjusted operating income, and Adjusted net loss, providing reconciliations to GAAP figures for a clearer view of ongoing operational performance - Management uses non-GAAP measures to evaluate operating profitability and cash flow on a continuing basis, excluding non-cash expenses and significant non-operational items to better assess underlying business trends[22](index=22&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss attributable to Altisource** | **$(5,344)** | **$(9,198)** | | Income tax provision | 742 | 722 | | Interest expense (net) | 4,745 | 9,306 | | Depreciation and amortization | 185 | 296 | | Intangible asset amortization expense | 1,270 | 1,270 | | Share-based compensation expense | 1,094 | 2,213 | | Debt exchange transaction expenses | 2,980 | — | | Cost of cost savings initiatives and other | (410) | 23 | | **Adjusted EBITDA** | **$5,262** | **$4,632** | Reconciliation of Net Loss to Adjusted Net Loss (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss attributable to Altisource** | **$(5,344)** | **$(9,198)** | | Intangible asset amortization expense, net of tax | 1,270 | 1,270 | | Share-based compensation expense, net of tax | 953 | 1,962 | | Debt exchange transaction expenses, net of tax | 2,980 | — | | Other adjustments, net of tax | 393 | 368 | | **Adjusted net loss attributable to Altisource** | **$(144)** | **$(5,598)** | Net Debt Calculation as of March 31, 2025 (in thousands) | Component | Amount | | :--- | :--- | | Senior Secured Term Loans | $160,000 | | Super senior term loan | $12,500 | | Less: Cash and cash equivalents | $(30,817) | | **Net debt** | **$141,683** |