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].

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 ...