Company - Altisource Portfolio Solutions S.A. reported a strong second quarter for 2024, with service revenue of $36.9 million, an increase of $3.7 million or 11% compared to the same quarter in 2023 [4][5] - Adjusted EBITDA for the second quarter was $4.4 million, which is $7.9 million better than the same quarter in 2023, reflecting a significant improvement in operational efficiency [4][5] - The company ended the quarter with $29.7 million in cash and cash equivalents, alongside $15.0 million available under a revolving credit facility and $198.7 million in net debt [4][5] - Altisource anticipates achieving its 2024 guidance of 13% to 32% service revenue growth over 2023 and an Adjusted EBITDA between $17.5 million and $22.5 million [2][3] Industry - The industry experienced a 9% decrease in foreclosure initiations for the first half of 2024 compared to the same period in 2023, and a 14% decrease in foreclosure sales [4] - Mortgage origination volume in the industry decreased by 13% in the second quarter of 2024 compared to the same quarter in 2023 [4] - The seriously delinquent mortgage rate (90+ days past due and loans in foreclosure) declined to 1.1% in June 2024, down from 1.3% in December 2023 [4]

[Q2 2024 Earnings Release](index=1&type=section&id=ALTISOURCE%20ANNOUNCES%20SECOND%20QUARTER%202024%20FINANCIAL%20RESULTS) Altisource's Q2 2024 earnings highlight strong financial and operational improvements, reaffirming guidance [Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) Altisource reported strong Q2 2024 results with significant year-over-year growth in service revenue and Adjusted EBITDA - The company reaffirms its 2024 guidance for service revenue growth of **13% to 32%** over 2023 and Adjusted EBITDA between **$17.5 million** and **$22.5 million**[3](index=3&type=chunk) Q2 2024 Key Financial Highlights (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Service Revenue | $36.9 million | $33.2 million | +11% | | Adjusted EBITDA | $4.4 million | $(3.5) million | +$7.9 million | | Adjusted EBITDA Margin | 11.9% | (10.5)% | +22.4 p.p. | | Gross Profit Margin | 34.0% | 16.7% | +17.3 p.p. | - The company ended Q2 with **$29.7 million** in cash, **$15.0 million** available under a revolving credit facility, and **$198.7 million** of net debt[4](index=4&type=chunk) - Generated new sales wins estimated to represent **$16.8 million** in potential annualized revenue on a stabilized basis across its segments[5](index=5&type=chunk) [Financial Results Overview](index=2&type=section&id=Second%20Quarter%202024%20Financial%20Results) Q2 2024 financial performance significantly improved, driven by increased service revenue and positive Adjusted EBITDA Q2 2024 Financial Results Summary (in thousands) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Service revenue | $36,863 | $33,173 | 11% | | Gross profit | $12,717 | $5,532 | 130% | | Income (loss) from operations | $2,083 | $(6,809) | 131% | | Adjusted EBITDA | $4,384 | $(3,491) | 226% | | Net loss attributable to Altisource | $(8,307) | $(18,850) | 56% | | Diluted loss per share | $(0.29) | $(0.90) | 68% | - The mortgage industry continues to face headwinds: Foreclosure initiations were down **9%** for the first six months of 2024 vs. 2023; Foreclosure sales were down **14%** for the first six months of 2024 vs. 2023; Mortgage origination volume decreased by **13%** in Q2 2024 vs. Q2 2023; The seriously delinquent mortgage rate declined to **1.1%** in June 2024 from **1.3%** in December 2023[8](index=8&type=chunk) [Forward-Looking Statements & Other Information](index=4&type=section&id=Forward-Looking%20Statements) This section outlines risks and uncertainties affecting future performance, including customer concentration and macroeconomic conditions - Forward-looking statements are subject to risks including, but not limited to, customer concentration, timing of default related referrals, technology disruptions, and macroeconomic conditions[10](index=10&type=chunk) - Altisource will host a webcast at **08:30 a.m. EDT** to discuss its second-quarter results[11](index=11&type=chunk) - Altisource is an integrated service provider and marketplace for the real estate and mortgage industries[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents Altisource's consolidated financial statements, detailing operations, balance sheets, and cash flows [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) Q2 2024 total revenue increased **11%** to **$39.1 million**, with reduced net loss and improved diluted loss per share Consolidated Statements of Operations (in thousands, except per share data) | Description | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | Service revenue | $36,863 | $33,173 | | Total revenue | $39,121 | $35,235 | | Gross profit | $12,717 | $5,532 | | Income (loss) from operations | $2,083 | $(6,809) | | Net loss attributable to Altisource | $(8,307) | $(18,850) | | Diluted loss per share | $(0.29) | $(0.90) | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2024, total assets were **$146.6 million**, with **$223.0 million** long-term debt reclassified to current Consolidated Balance Sheet Highlights (in thousands) | Description | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $29,702 | $32,522 | | Total current assets | $51,201 | $55,540 | | Total assets | $146,557 | $154,858 | | **Liabilities and Deficit** | | | | Current portion of long-term debt | $223,009 | $— | | Total current liabilities | $258,932 | $35,760 | | Long-term debt | $— | $215,615 | | Total liabilities and deficit | $146,557 | $154,858 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash used in operating activities improved to **$(2.1) million** for H1 2024, with a total cash decrease of **$2.8 million** Consolidated Statements of Cash Flows Highlights (in thousands) | Description | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,057) | $(10,940) | | Net cash used in financing activities | $(773) | $(5,090) | | Net decrease in cash, cash equivalents and restricted cash | $(2,830) | $(16,030) | | Cash, cash equivalents and restricted cash at the end of the period | $32,586 | $38,243 | [Non-GAAP Financial Measures](index=8&type=section&id=NON-GAAP%20MEASURES) This section defines and reconciles Altisource's non-GAAP financial measures for clearer operational performance insights [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Net Debt to provide a clearer view of continuous operational performance - Management uses non-GAAP measures to evaluate operating profitability and cash flow on a continuing basis by excluding items like prior-period acquisition amortization, non-cash share-based compensation, and significant non-operational items[22](index=22&type=chunk) - Key non-GAAP measures are defined as follows: **Adjusted operating income (loss)** excludes intangible amortization, share-based compensation, cost savings initiatives, debt amendment costs, and unrealized warrant loss from operating income; **Adjusted EBITDA** is calculated by removing taxes, interest, D&A, and other specified non-cash or non-recurring items from net loss; **Net debt** is calculated as long-term debt (including current portion) minus cash and cash equivalents[23](index=23&type=chunk)[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP, showing Q2 2024 Adjusted EBITDA of **$4.4 million** and Net Debt of **$198.7 million** Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | Net loss attributable to Altisource | $(8,307) | $(18,850) | | Adjustments: | | | | Income tax provision | 706 | 639 | | Interest expense (net) | 9,582 | 9,589 | | Depreciation and amortization | 276 | 654 | | Intangible asset amortization expense | 1,270 | 1,280 | | Share-based compensation expense | 844 | 1,242 | | Other adjustments | 13 | 1,954 | | **Adjusted EBITDA** | **$4,384** | **$(3,491)** | Reconciliation of GAAP to Non-GAAP Loss Per Share | Description | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | Diluted loss per share (GAAP) | $(0.29) | $(0.90) | | Adjustments (per share) | $0.08 | $0.22 | | **Adjusted diluted loss per share (Non-GAAP)** | **$(0.21)** | **$(0.68)** | Net Debt Calculation (in thousands) | Description | June 30, 2024 | | :--- | :--- | | Senior Secured Term Loans | $228,354 | | Less: Cash and cash equivalents | $(29,702) | | **Net debt** | **$198,652** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 o ...

LUXEMBOURG, July 23, 2024 (GLOBE NEWSWIRE) -- On Thursday, July 25, 2024, Altisource Portfolio Solutions S.A. (“Altisource”) (NASDAQ: ASPS) will report earnings for the second quarter 2024. A press release and presentation will be available on Altisource’s website in the Investor Relations section. Altisource will also host a conference call at 8:30 a.m. EDT on the same day to discuss its second quarter 2024 results. A link to the live audio webcast will be available on Altisource’s website in the Investor ...

EL PASO, Texas, May 22, 2024 (GLOBE NEWSWIRE) -- Lenders One® Cooperative (“L1” or “Lenders One”), a national alliance of independent mortgage bankers, banks and credit unions, managed by a subsidiary of Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), today announces the availability of Lenders One Insurance (“L1 Insurance”), a homeowners and automobile insurance solution offered to Lenders One members. L1 Insurance is a new member benefit that provides borrowers with mul ...

EL PASO, Texas, May 22, 2024 (GLOBE NEWSWIRE) -- Lenders One® Cooperative ("L1" or "Lenders One"), a national alliance of independent mortgage bankers, banks and credit unions, managed by a subsidiary of Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS), today announces the availability of Lenders One Insurance ("L1 Insurance"), a homeowners and automobile insurance solution offered to Lenders One members. L1 Insurance is a new member benefit that provides borrowers with mult ...

ALTISOURCE FIRST QUARTER 2024 SUPPLEMENTARY INFORMATION APRIL 25, 2024 1 DISCLAIMER This presentation contains forward-looking statements that involve a number of risks pandemic, customer concentration, the timing of the anticipated increase in default and uncertainties. These forward-looking statements include all statements that are related referrals following the expiration offoreclosureand eviction moratoriums and not historical fact, including statements that relate to, among other things, future forbe ...

Financial Data and Key Metrics Changes - The company generated $4.6 million of adjusted EBITDA, marking the best quarterly performance since Q3 2020, on $36.9 million of service revenue [6] - Adjusted EBITDA improved by more than $30 million over the last two calendar years despite low origination volume and historically low mortgage delinquency rates [6] - For 2024, the company forecasts revenue growth of 23% and adjusted EBITDA growth of $21 million compared to last year [7] - Adjusted EBITDA margins expanded to 12.6% in Q1 2024, compared to 0.7% in Q4 2023 and 4% in Q1 2023 [9] Business Line Data and Key Metrics Changes - Total company service revenue grew 15% compared to Q4 2023, with 11% growth in the Servicer and Real Estate segment and 30% in the Origination segment [8] - In the Servicer and Real Estate segment, service revenue was 11% higher than Q4 2023 but 2% lower than Q1 2023 [12] - The Origination segment outperformed the market with service revenue growth of 30% despite a 6% decline in industry-wide residential origination volume [16] Market Data and Key Metrics Changes - The company continues to see early signs of consumer financial stress, which could lead to a rise in mortgage delinquency rates [15] - The Origination segment's revenue growth was driven by customer wins from newer solutions and price increases [16] Company Strategy and Development Direction - The company is focused on winning new business and improving operational efficiency in a challenging market [20] - The strategy includes ramping sales wins and expanding services to existing customers, particularly in the Servicer and Real Estate segment [14] - The company is not waiting for the default market to recover to grow revenue and earnings, indicating a proactive approach to business development [23] Management's Comments on Operating Environment and Future Outlook - Management believes the market is recovering at a slower pace than expected, with mortgage delinquency rates remaining flat [24] - The company anticipates that as the economy normalizes, the operating environment for recent loan originations will improve [25] - Management is optimistic about the potential for significant EBITDA growth if the market returns to normal conditions [26] Other Important Information - The company ended the quarter with a total weighted average sales pipeline of $26.7 million of annual revenue on a stabilized basis [15] - The corporate adjusted EBITDA loss was $6.3 million, which was 22% better than Q4 2023 and 30% better than Q1 2023 [19] Q&A Session Summary Question: When might foreclosure sales ramp up? - Management indicated they are not waiting for the market to recover and noted that the market is recovering slower than expected, with current indicators showing flat delinquency rates [23][24] Question: How should the remaining $60 million in sales pipeline flow into revenue? - Management expects to ramp sales wins throughout the year, with an anticipated EBITDA run rate north of $30 million by Q4 [28] Question: Is the current sales pipeline satisfactory? - Management expressed a desire for a larger sales pipeline but is pleased with the progress made in a tough market [30][31] Question: How is the $88 million in annualized revenue increase split between segments? - A significant portion of the increase is tied to the growth of the renovation business and trustee wins, with some contribution from the Origination side [34] Question: Are there more cost cuts to come? - Management indicated that while there were one-time benefits in Q1, they expect modest savings in corporate costs moving forward, with some hiring anticipated in Q2 [42]

Altisource Portfolio Solutions (ASPS) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.26. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.08%. A quarter ago, it was expected that this real estate services firm would post a loss of $0.33 per share when it actually produced a loss of $0.37, delivering a surprise of -12.12%.Over the last four ...

LUXEMBOURG, April 25, 2024 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the first quarter 2024. "I am very pleased with our first quarter performance. We generated $4.6 million of Adjusted EBITDA(1), marking our best quarterly performance since the third quarter of 2020, on $36.9 million of service revenue. We are winning meaningful ne ...