Altisource Portfolio Solutions S.A.(US:ASPS)2025-10-23 11:04Financial Performance - Revenue for Q3 2025 was $41.9 million, a 3.4% increase from $40.5 million in Q3 2024[10] - Gross profit for Q3 2025 was $11.3 million, compared to $12.1 million in Q3 2024, reflecting a decrease of 6%[10] - Net loss attributable to Altisource for Q3 2025 was $2.4 million, an improvement from a net loss of $9.4 million in Q3 2024[10] - For the nine months ended September 30, 2025, Altisource reported a net income of $9,062 thousand, compared to a net loss of $26,731 thousand for the same period in 2024[17] - The company reported a comprehensive loss of $2.4 million for Q3 2025, compared to a comprehensive loss of $9.4 million in Q3 2024[10] - Basic loss per share for Q3 2025 was $0.22, an improvement from a loss of $2.61 per share in Q3 2024[10] - Total revenue for the nine months ended September 30, 2025, reached $128.635 million, up 7.73% from $119.121 million in the same period of 2024[133] - Service revenue for Q3 2025 was $39.666 million, a 3.96% increase from $38.150 million in Q3 2024[131] Assets and Liabilities - Total current assets increased to $54.4 million as of September 30, 2025, up from $51.1 million at the end of 2024[8] - Total liabilities decreased significantly to $230.5 million as of December 31, 2024, from $39.7 million as of September 30, 2025[8] - Long-term debt stood at $191.3 million as of September 30, 2025, indicating a substantial financial obligation[8] - The accumulated deficit increased to $355.9 million as of September 30, 2025, compared to $260.0 million at the end of 2024[8] - Total assets decreased to $139.9 million as of September 30, 2025, down from $143.6 million at the end of 2024[8] - Total current liabilities decreased significantly to $39.7 million from $271.3 million at the end of 2024[8] Cash Flow and Financing - The company experienced a net cash used in operating activities of $4,560 thousand for the nine months ended September 30, 2025, compared to $3,624 thousand for the same period in 2024[17] - Cash, cash equivalents, and restricted cash at the end of the period were $32,478 thousand, a decrease from $31,226 thousand at the end of the same period in 2024[20] - Altisource's total cash flow from financing activities for the nine months ended September 30, 2025, was a net inflow of $4,637 thousand, compared to a net outflow of $566 thousand in 2024[17] - The company issued equity worth $45,370 thousand in exchange for debt reduction during the reporting period[19] Revenue Sources - Onity accounted for 42% and 43% of the company's total revenue for the three and nine months ended September 30, 2025, respectively, with revenue from Onity recognized at $55.5 million for the nine months ended September 30, 2025, compared to $52.6 million in 2024[36] - The company recognized revenue from Rithm of $3.3 million for the nine months ended September 30, 2025, up from $1.8 million in 2024[44] - Total revenue from servicer and real estate for Q3 2025 was $33.242 million, compared to $32.549 million in Q3 2024, indicating a growth of 2.13%[133] Expenses - Cost of revenue for Q3 2025 totaled $30.561 million, an increase of 7.74% from $28.461 million in Q3 2024[138] - Selling, general and administrative expenses for Q3 2025 were $10.826 million, slightly down from $10.965 million in Q3 2024[141] - Share-based compensation expense for the nine months ended September 30, 2025, was $3,066 thousand, down from $3,916 thousand in 2024[17] Tax and Compliance - The company recognized an income tax benefit of $15.1 million for the nine months ended September 30, 2025, compared to a provision of $(2.2) million for the same period in 2024[143] - The total amount of unrecognized tax benefits, including interest and penalties, was $3.5 million as of September 30, 2025, down from $19.2 million as of December 31, 2024[150] - The company has open tax years in the United States (2017 through 2023), India (2011 through 2024), and Luxembourg (2017 through 2023)[146] Shareholder Information - The company distributed 70.5 million Stakeholder Warrants to purchase approximately 14.3 million shares of common stock at $9.5998 per share on April 3, 2025[100] - As of September 30, 2025, there were 35,222,298 outstanding Stakeholder Warrants, with 7,156,372 shares issuable upon exercise[105] - The company has a share repurchase program authorized to purchase up to 0.4 million shares until May 16, 2028[116]