Altisource Portfolio Solutions S.A.(ASPS) - 2025 Q1 - Quarterly Report

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]