Altisource Announces Third Quarter 2024 Financial Results

Core Viewpoint - Altisource Portfolio Solutions S.A. reported strong financial results for Q3 2024, achieving significant growth in service revenue despite a challenging market environment characterized by declining delinquency and foreclosure rates [2][3]. Company Financial Performance - Service revenue for Q3 2024 reached $38.2 million, marking an increase of $4.0 million or 11.8% compared to Q3 2023 [3][4]. - Adjusted EBITDA for the quarter was $3.6 million, a substantial improvement of $2.8 million from the same quarter last year, driven by higher service revenue and lower corporate costs [3][4]. - The adjusted EBITDA margin improved to 9.5% in Q3 2024, significantly higher than the 2.6% margin in Q3 2023 [3]. - Gross profit margin for Q3 2024 was 31.6%, up from 21.1% in the same quarter of the previous year [3][4]. - The company ended the quarter with $28.3 million in cash and cash equivalents, alongside $202.3 million in net debt [3][4]. Business Segments and Industry Trends - The Servicer and Real Estate segments reported improved adjusted EBITDA of $10.8 million, representing 28.3% of service revenue, compared to $9.5 million or 28.0% in Q3 2023 [3]. - The company generated sales wins estimated to represent potential annualized revenue of $1.7 million for the Servicer and Real Estate segment and $4.9 million for the Origination segment [3]. - The weighted average sales pipeline was estimated between $32 million and $40 million based on forecasted probabilities of closing [3]. - Industry-wide foreclosure initiations decreased by 7% and foreclosure sales declined by 14% for the eight months ending August 31, 2024, compared to the same period in 2023 [3]. - The seriously delinquent mortgage rate fell to 1.2% in August 2024, down from 1.3% in December 2023 [3].