Financial Performance - Revenue for Q1 2025 was $43,439,000, representing a 10.0% increase from $39,469,000 in Q1 2024[10] - Gross profit for Q1 2025 was $13,325,000, up from $12,304,000 in Q1 2024, indicating a gross margin improvement[10] - Net loss attributable to Altisource for Q1 2025 was $5,344,000, a reduction from a net loss of $9,198,000 in Q1 2024, reflecting a 42.5% improvement[10] - Basic loss per share improved to $(0.09) in Q1 2025 from $(0.33) in Q1 2024[10] - For the three months ended March 31, 2025, total revenue was $43,439,000, an increase of 10.0% from $39,469,000 in the same period of 2024[123] - Service revenue for the three months ended March 31, 2025, was $40,895,000, up from $36,891,000 in 2024, reflecting a growth of 8.2%[123] - The company reported a comprehensive loss of $5,344 million for the three months ended March 31, 2025, compared to a comprehensive loss of $9,198 million in the prior year[10] Assets and Liabilities - Total assets increased to $145,659,000 as of March 31, 2025, compared to $143,606,000 as of December 31, 2024[8] - Total current liabilities decreased significantly to $42,177,000 in Q1 2025 from $271,273,000 in Q4 2024, primarily due to a reduction in long-term debt[8] - Cash and cash equivalents at the end of Q1 2025 were $30,817,000, up from $29,811,000 at the end of Q4 2024[8] - Altisource's accumulated deficit increased to $(363,082,000) as of March 31, 2025, from $(259,977,000) as of December 31, 2024[8] - Total assets of Lenders One as of March 31, 2025, were $0.4 million, with total liabilities of $0.1 million[21] - Total non-current liabilities as of March 31, 2025, amount to $19.705 million, a slight decrease from $20.016 million as of December 31, 2024[99] Customer and Revenue Sources - Onity was the largest customer, accounting for 45% of total revenue for the three months ended March 31, 2025, with revenue recognized from Onity amounting to $19.4 million, up from $17.6 million in the same period of 2024[28][29] - Revenue from Rithm for the three months ended March 31, 2025, was $0.6 million, down from $0.7 million in the same period of 2024[37] - The Servicer and Real Estate segment generated revenue of $35.2 million, while the Origination segment contributed $8.3 million for the three months ended March 31, 2025[159] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $4,972,000 for Q1 2025, compared to $2,237,000 in Q1 2024[15] - Cash used in operating activities for lease liabilities was $407,000 for the three months ended March 31, 2025, compared to $483,000 in 2024[153] Debt and Financing - Total long-term debt as of March 31, 2025, was $193.73 million, down from $230.54 million as of December 31, 2024[60] - The company entered into a revolving loan agreement allowing borrowing up to $1.0 million, potentially increasing to $3.0 million, with an interest rate of 12.00% per annum[54][56] - The outstanding balance on the revolving loan agreement was $1.0 million as of March 31, 2025[57] - Senior secured term loans decreased from $232.8 million to $160.0 million following a debt exchange transaction completed on February 19, 2025[63] - The company incurred $3.0 million in expenses related to the debt exchange transaction, recorded as other expenses[66] Stock and Equity - The company issued 58,167 shares of common stock in Q1 2025, raising $582,000 in additional paid-in capital[13] - The company distributed 70.5 million Stakeholder Warrants to purchase approximately 114.5 million shares of common stock for $1.20 per share on April 3, 2025[94] - The company has a share repurchase program authorized to purchase up to 3.1 million shares, with no purchases made during the three months ended March 31, 2025[108] Other Financial Metrics - The allowance for expected credit losses decreased to $2.6 million as of March 31, 2025, from $3.1 million at the beginning of the period[41] - Depreciation and amortization expense for the three months ended March 31, 2025, was $0.2 million, compared to $0.3 million for the same period in 2024[43] - The company adopted ASU 2023-09 effective January 1, 2025, which did not have a material impact on the condensed consolidated financial statements[25]

[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** |

Company Overview - Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries, combining operational excellence with innovative services and technologies [3] Upcoming Earnings Report - Altisource will report earnings for the first quarter of 2025 on May 1, 2025, with a press release and presentation available on its website [1] - A conference call to discuss the first quarter 2025 results will be held at 8:30 a.m. EDT on the same day, with a live audio webcast accessible on the company's website [2] Additional Information - A replay of the conference call will be available approximately two hours after the call concludes and will remain accessible for about 30 days [2] - For further inquiries, the Chief Financial Officer, Michelle D. Esterman, can be contacted via phone or email [4]

Core Viewpoint - Altisource Portfolio Solutions S.A. is set to distribute Stakeholder Warrants on April 3, 2025, following the satisfaction of necessary conditions, including shareholder approval and completion of related transactions [1] Summary of Warrant Distribution - The Warrant Distribution will provide two types of warrants to stakeholders, allowing them to purchase shares of Common Stock at an exercise price of $1.95 per Warrant, with each Warrant entitling the holder to purchase 1.625 shares [2][4] - The Cash Exercise Stakeholder Warrants will expire on April 2, 2029, while the Net Settle Stakeholder Warrants will expire on April 30, 2032 [3] Listing Information - The Company has applied to list the Cash Exercise Stakeholder Warrants and the Net Settle Stakeholder Warrants on the Nasdaq Global Select Market under the symbols ASPSZ and ASPSW, respectively [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 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) Luxembourg 98-0554932 (State or other ...

Core Insights - Hubzu, a leading online real estate auction marketplace, has expanded into the commercial real estate market, aiming to provide a seamless solution for buying and selling commercial properties through auctions [1][2] Company Overview - Hubzu is part of Altisource Portfolio Solutions S.A. and has over 2.6 million registered users, having facilitated the sale of over 280,000 homes since its inception in 2009 [9] - The company is known for its transparent online marketing and auction process, which benefits both buyers and sellers in the real estate market [9] Strategic Collaboration - Hubzu has partnered with the Birdsey Group, a provider of commercial underwriting and due diligence services, to enhance its offerings in the commercial real estate sector [3][4] - This collaboration aims to combine Birdsey Group's market expertise with Hubzu's auction platform, creating a more efficient and transparent experience for users [4] Benefits for Sellers - Hubzu's auction platform helps sellers maximize property exposure and streamline the sales process, offering features such as: - Nationwide reach with robust marketing capabilities to attract a broad audience [6] - Simplified selling process with real-time updates for monitoring bids [6] - Customizable marketing listings to showcase property features [6] - Efficient transaction tools to reduce time and effort in closing sales [6] Benefits for Buyers - The platform enhances the property search and acquisition process for buyers, providing: - Access to a wide range of property types, including office, retail, multifamily, and industrial [6] - A transparent bidding process with clear instructions and comprehensive property information [6] - Customizable search tools with real-time updates on bidding activity [6] - Online due diligence resources to facilitate informed property transactions [6]

Empowering Commercial Real Estate Buyers and Sellers with Hubzu's Proven Auction Experience and ExpertiseLUXEMBOURG, March 24, 2025 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource®” or the “Company”) (NASDAQ: ASPS), a leading solutions provider for the real estate and mortgage industries, proudly announces that Hubzu®, a leading online real estate marketplace, has entered the commercial real estate market. Leveraging its extensive experience in real estate transactions and auctions, Hub ...

Financial Data and Key Metrics Changes - For 2024, the company generated $150 million in service revenue, a 10% increase over 2023, driven by growth in both business segments [8][10] - Adjusted EBITDA for 2024 was $17.4 million, representing an $18.3 million improvement over 2023 [8][10] - The company reduced its debt by over $60 million, from $233 million to $172.5 million, significantly strengthening its balance sheet [12][14] Business Line Data and Key Metrics Changes - The Servicer and Real Estate segment reported service revenue of $120 million, an 11% increase from 2023, with adjusted EBITDA of $42.1 million, up $5 million or 14% [17][18] - The Origination segment achieved service revenue of $30.4 million, a 6% increase from 2023, with adjusted EBITDA improving by $5.4 million to $2.5 million [20][21] - The Corporate segment's adjusted EBITDA loss decreased by $7.9 million or 22% to $27.2 million, reflecting efficiency initiatives [22] Market Data and Key Metrics Changes - Foreclosure starts in 2024 were 35% lower than 2019 levels, and foreclosure sales were 53% lower than 2019 levels, indicating a challenging market environment [23] - The origination market faced difficulties, with 2024 mortgage origination volume 35% lower than 2019 levels, primarily due to higher interest rates [24] Company Strategy and Development Direction - The company aims to diversify its revenue base and ramp up business won while maintaining cost discipline and significantly reducing corporate interest expense [28] - Focus areas for growth include the renovation business, Lenders One solutions, and expanding the Hubzu platform to include commercial auctions [38][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, forecasting service revenue between $165 million and $185 million, representing 16% annual growth, and adjusted EBITDA of $18 million to $23 million [26][27] - The company anticipates positive operating cash flow for the first time since 2019, driven by sales wins and improved margins [26][27] Other Important Information - The company completed a significant transaction with lenders in February 2025, which is expected to be accretive to pre-transaction shareholders in the medium to long term [16][28] - The interest rate on the new term loan and super senior credit facility is SOFR plus 650 basis points, resulting in a substantial reduction in annual cash interest costs [12][13] Q&A Session Summary Question: Can you comment on the nature of some of the wins you've had across originations and servicing? - Management highlighted successful initiatives in the construction renovation and Lenders One businesses, with both achieving over $1 million a month in revenue [34][35] Question: How are things trending thus far in 2025? - Management reported a strong start to 2025, with January revenue and EBITDA results aligning with plans, and February revenue also on target [42][43] Question: When do you think the increase in foreclosure starts will be reflected in results? - Management noted that while they are being conservative in forecasting, anecdotal evidence suggests clients expect an increase in foreclosure starts [48][50] Question: Are there other agencies implementing unfriendly creditor policies that might impact the business? - Management mentioned the FHA's new programs and indicated that borrowers are continuing to default on modified loans, which could lead to increased business in the future [54][56] Question: Will there be a sizable gain in Q1 that could reduce the negative equity position on the balance sheet? - Management confirmed that interest expense will decrease significantly, and they expect strong revenue and EBITDA results in Q1 [60][62]

Financial Performance - For 2024, the company generated $150 million in service revenue, a 10% increase over 2023, driven by growth in both business segments [8][10] - Total adjusted EBITDA for 2024 was $17.4 million, representing an $18.3 million improvement over 2023, largely from service revenue growth and higher adjusted EBITDA margins [8][10] - The business segments generated $44.6 million of adjusted EBITDA at 29.7% margins, reflecting a $10.4 million improvement and a 462 basis points increase in margins compared to 2023 [9][10] - The corporate segment's adjusted EBITDA loss declined by $7.9 million or 22% to $27.2 million, primarily due to efficiency initiatives [10][22] Business Segment Performance - The Servicer and Real Estate segment had service revenue of $120 million, an 11% increase from 2023, with adjusted EBITDA of $42.1 million, up $5 million or 14% [17][18] - The Origination segment reported service revenue of $30.4 million, a 6% increase from 2023, with adjusted EBITDA improving by $5.4 million to $2.5 million [20][21] - The corporate segment's adjusted EBITDA loss improved due to cost savings and efficiency initiatives [22] Market Conditions - The default market has faced challenges, with 2024 foreclosure starts 35% lower than 2019 levels and 6% lower than 2023 [23] - The origination market also struggled, with 2024 mortgage origination volume 35% lower than 2019 levels, although it was higher than 2023 due to refinance activity [24] Company Strategy and Outlook - The company aims to diversify its revenue base and ramp up business won while maintaining cost discipline and reducing corporate interest expense [28] - For 2025, the company forecasts service revenue between $165 million and $185 million, representing 16% growth, and adjusted EBITDA of $18 million to $23 million, indicating 18% growth [26][27] - The company is focusing on accelerating growth in certain businesses that have favorable market conditions and expects to benefit from a return to normalcy in the default market [28] Management Commentary - Management expressed optimism about the company's strong start to 2025, with January revenue and EBITDA results exceeding expectations [42] - The company is monitoring market conditions closely, particularly regarding delinquency rates and potential increases in foreclosure starts [50][51] Other Important Information - In February 2025, the company executed a transaction with lenders that significantly strengthened its balance sheet, reducing debt from $233 million to $172.5 million [12][14] - The interest rate on the new term loan is SOFR plus 650 basis points, resulting in a significant reduction in annual cash interest costs [13][62] Q&A Session Summary Question: Can you comment on the nature of some of the wins you've had across originations and servicing? - Management highlighted successful initiatives in the construction renovation and Lenders One origination businesses, with both achieving over $1 million in monthly revenue [34][36] Question: How are things trending thus far in 2025? - Management reported a strong start to the year, with January revenue and EBITDA results aligning with or exceeding plans [42] Question: When do you expect foreclosure starts to impact results? - Management noted that while they are being conservative in forecasting, there are indications from clients that foreclosure starts may increase [48][50] Question: Are there other agencies implementing policies that might impact the business? - Management mentioned the FHA's new programs and the potential for increased delinquencies as borrowers exhaust modification options [54][56] Question: Will there be a sizable gain in Q1 that could reduce negative equity? - Management indicated that while interest expenses will decrease significantly, they are still finalizing accounting related to the recent transaction [60][62]

Financial Performance Highlights - Altisource's service revenue increased by 10% to $150.4 million in 2024 compared to $136.6 million in 2023[14, 49] - Adjusted EBITDA improved by $18.3 million to $17.4 million in 2024, compared to a loss of $0.9 million in 2023[9, 14, 49] - Business Segments generated $44.6 million of Adjusted EBITDA at 29.7% Adjusted EBITDA margins, representing a $10.4 million improvement and a 462-basis points margin improvement[14] - Corporate Adjusted EBITDA loss declined by $7.9 million, or 22%, to $27.2 million, primarily from efficiency initiatives[14] - Q4 2024 service revenue reached $38.4 million, the highest since Q3 2021, with Adjusted EBITDA at $4.7 million, the strongest quarter since Q3 2020[16] Debt Restructuring - Altisource executed a Term Loan Exchange Transaction, reducing debt by over $60 million from $232.8 million to $172.5 million[9, 18] - The Term Loan Exchange Transaction reduced annual cash and payment-in-kind interest by approximately $18 million to $13.4 million[18] - The company also closed on a $12.5 million super senior credit facility to fund transaction costs and for general corporate purposes[18, 21] Segment Performance - Servicer and Real Estate segment service revenue increased by 11% to $119.9 million in 2024 compared to $107.8 million in 2023[23] - Servicer and Real Estate segment Adjusted EBITDA increased by 14% to $42.1 million in 2024 compared to $37.1 million in 2023, with margins improving to 35.1% from 34.4%[23] - Origination segment service revenue grew by 6% to $30.4 million in 2024 compared to $28.8 million in 2023[29, 31] - Origination segment Adjusted EBITDA improved by $5.4 million to $2.5 million in 2024 compared to a loss of $2.9 million in 2023[29, 31] 2025 Financial Guidance - Altisource anticipates service revenue between $165 million and $185 million and Adjusted EBITDA between $18 million and $23 million in 2025[42] - The guidance midpoint represents 16% annual service revenue and 18% Adjusted EBITDA growth over 2024[42] - The company expects positive operating cash flow in 2025[41, 43]