Altisource Announces Second Quarter 2025 Financial Results
Altisource Portfolio Solutions (NASDAQ: ASPS) reported strong Q2 2025 financial results, with service revenue increasing 11% to $40.8 million compared to Q2 2024. The company achieved significant improvements in profitability, posting net income of $16.6 million, a $24.9 million increase from the previous year.
Key highlights include Adjusted EBITDA of $5.4 million, up 19% year-over-year, and diluted earnings per share of $1.48. The company benefited from a $9.6 million tax reserve reversal related to India operations. Additionally, Altisource completed a 1-for-8 reverse stock split on May 28, 2025, reducing outstanding shares from 88.1 million to 11.0 million.
The company's pipeline remains strong with weighted average sales opportunities between $36-44 million. Industry foreclosure initiations were up 22% year-over-year, while mortgage origination volume increased by 14% for the first half of 2025.
Altisource Portfolio Solutions (NASDAQ: ASPS) ha riportato solidi risultati finanziari per il secondo trimestre 2025, con un aumento dell'11% dei ricavi da servizi, raggiungendo 40,8 milioni di dollari rispetto al secondo trimestre 2024. La società ha ottenuto significativi miglioramenti nella redditività, registrando un utile netto di 16,6 milioni di dollari, con un incremento di 24,9 milioni rispetto all'anno precedente.
I punti salienti includono un EBITDA rettificato di 5,4 milioni di dollari, in crescita del 19% su base annua, e un utile diluito per azione di 1,48 dollari. La società ha beneficiato di una reversale di riserva fiscale di 9,6 milioni di dollari legata alle operazioni in India. Inoltre, Altisource ha completato una scissione azionaria inversa 1-per-8 il 28 maggio 2025, riducendo le azioni in circolazione da 88,1 milioni a 11,0 milioni.
Il portafoglio ordini della società rimane solido, con opportunità di vendita medie ponderate tra 36 e 44 milioni di dollari. Le aperture di procedure di pignoramento sono aumentate del 22% su base annua, mentre il volume di erogazione mutui è cresciuto del 14% nella prima metà del 2025.
Altisource Portfolio Solutions (NASDAQ: ASPS) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso por servicios que aumentó un 11% hasta 40.8 millones de dólares en comparación con el segundo trimestre de 2024. La compañía logró mejoras significativas en la rentabilidad, registrando un ingreso neto de 16.6 millones de dólares, un incremento de 24.9 millones respecto al año anterior.
Los aspectos destacados incluyen un EBITDA ajustado de 5.4 millones de dólares, un aumento del 19% interanual, y ganancias diluidas por acción de 1.48 dólares. La empresa se benefició de una reversión de reserva fiscal de 9.6 millones de dólares relacionada con sus operaciones en India. Además, Altisource completó una división inversa de acciones 1 por 8 el 28 de mayo de 2025, reduciendo las acciones en circulación de 88.1 millones a 11.0 millones.
El pipeline de la compañía sigue fuerte con oportunidades de ventas promedio ponderadas entre 36 y 44 millones de dólares. Las iniciaciones de ejecuciones hipotecarias aumentaron un 22% interanual, mientras que el volumen de originación hipotecaria creció un 14% en la primera mitad de 2025.
Altisource Portfolio Solutions (NASDAQ: ASPS)는 2025년 2분기 강력한 재무 실적을 보고했습니다. 2024년 2분기 대비 서비스 수익이 11% 증가하여 4,080만 달러를 기록했습니다. 회사는 수익성에서 큰 개선을 이루어 순이익 1,660만 달러를 기록했으며, 이는 전년 대비 2,490만 달러 증가한 수치입니다.
주요 내용으로는 전년 대비 19% 증가한 조정 EBITDA 540만 달러와 희석 주당순이익 1.48달러가 포함됩니다. 또한 인도 사업과 관련된 960만 달러의 세금 적립금 환입으로 혜택을 받았습니다. 아울러 Altisource는 2025년 5월 28일 1대 8 역병합을 완료하여 발행 주식을 8,810만 주에서 1,100만 주로 줄였습니다.
회사의 영업 기회 파이프라인은 여전히 강세를 보이며 가중 평균 매출 기회가 3,600만 달러에서 4,400만 달러 사이입니다. 산업 내 압류 개시는 전년 대비 22% 증가했으며, 2025년 상반기 모기지 신규 발행량은 14% 증가했습니다.
Altisource Portfolio Solutions (NASDAQ : ASPS) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec une augmentation de 11 % des revenus de services, atteignant 40,8 millions de dollars par rapport au deuxième trimestre 2024. L'entreprise a réalisé des améliorations significatives de sa rentabilité, affichant un résultat net de 16,6 millions de dollars, soit une hausse de 24,9 millions par rapport à l'année précédente.
Les points clés incluent un EBITDA ajusté de 5,4 millions de dollars, en hausse de 19 % sur un an, et un bénéfice dilué par action de 1,48 dollar. La société a bénéficié d'une reprise de réserve fiscale de 9,6 millions de dollars liée à ses opérations en Inde. De plus, Altisource a réalisé un regroupement d'actions inverse au ratio de 1 pour 8 le 28 mai 2025, réduisant le nombre d'actions en circulation de 88,1 millions à 11,0 millions.
Le carnet de commandes de l'entreprise reste solide avec des opportunités de vente moyennes pondérées comprises entre 36 et 44 millions de dollars. Les mises en œuvre de saisies immobilières ont augmenté de 22 % sur un an, tandis que le volume d'octroi de prêts hypothécaires a progressé de 14 % au premier semestre 2025.
Altisource Portfolio Solutions (NASDAQ: ASPS) meldete starke Finanzergebnisse für das zweite Quartal 2025, mit einem Umsatzanstieg im Servicebereich um 11 % auf 40,8 Millionen US-Dollar im Vergleich zum zweiten Quartal 2024. Das Unternehmen erzielte deutliche Verbesserungen bei der Rentabilität und verzeichnete einen Nettoertrag von 16,6 Millionen US-Dollar, was einer Steigerung von 24,9 Millionen gegenüber dem Vorjahr entspricht.
Zu den wichtigsten Highlights zählen ein bereinigtes EBITDA von 5,4 Millionen US-Dollar, ein Anstieg von 19 % im Jahresvergleich, sowie ein verwässerter Gewinn je Aktie von 1,48 US-Dollar. Das Unternehmen profitierte von einer Steuerrückstellung in Höhe von 9,6 Millionen US-Dollar, die im Zusammenhang mit den Aktivitäten in Indien aufgelöst wurde. Darüber hinaus führte Altisource am 28. Mai 2025 eine 1-zu-8 Reverse-Aktien-Split durch, wodurch die ausstehenden Aktien von 88,1 Millionen auf 11,0 Millionen reduziert wurden.
Die Vertriebspipeline des Unternehmens bleibt stark mit gewichteten durchschnittlichen Verkaufschancen zwischen 36 und 44 Millionen US-Dollar. Die Anzahl der Zwangsvollstreckungen stieg im Jahresvergleich um 22 %, während das Volumen der Hypothekenneuausgabe in der ersten Hälfte des Jahres 2025 um 14 % zunahm.
- Service revenue grew 11% year-over-year to $40.8 million
- Net income increased significantly to $16.6 million, up $24.9 million from Q2 2024
- Adjusted EBITDA improved 19% to $5.4 million with stronger margins of 13.2%
- $9.6 million tax reserve reversal and $9.0 million reversal of accrued interest from India operations
- Strong sales pipeline of $36-44 million in potential service revenue
- Industry foreclosure initiations increased 22% year-over-year
- Negative operating cash flow of $306,000 compared to positive $180,000 in Q2 2024
- Gross profit margin declined to 32% from 34% in Q2 2024
- Incurred $3.5 million in Debt Exchange Transaction expenses
- Purchase mortgage originations declined 2% industry-wide
Insights
Altisource's Q2 shows strong financial recovery with 11% revenue growth and significant profit improvement despite historically low mortgage delinquencies.
Altisource's second quarter results reflect a remarkable turnaround with 11% service revenue growth to
The headline numbers look strong, but require context. A significant portion of this profit improvement stems from a one-time
Operationally, Altisource demonstrated improved efficiency with Adjusted EBITDA increasing
The business segments show healthy performance with combined Adjusted EBITDA of
Looking at industry dynamics, the countercyclical nature of Altisource's core business becomes apparent. The company is growing despite foreclosure initiations being
The balance sheet shows
Overall, Altisource demonstrates operational improvement and strategic positioning for future growth, though investors should separate the one-time tax benefit from underlying business performance when evaluating these results.
LUXEMBOURG, July 24, 2025 (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 second quarter 2025.
“We are pleased with our second quarter performance. In a close to historically low delinquency environment, we grew Service revenue, Adjusted EBITDA(1), pre- and post-tax GAAP earnings and GAAP earnings per share compared to the second quarter of last year. This is largely from our focus on growing our businesses that have tailwinds, cost discipline, lower interest expense and the reversal of certain tax reserves related to our India operations,” said Chairman and Chief Executive Officer William B. Shepro.
Mr. Shepro further commented, “To support longer term growth, we are focusing our efforts on accelerating the growth of those businesses that we believe have tailwinds in what remains a close to historically low delinquency environment. Should loan delinquencies, foreclosure starts and foreclosure sales increase, we believe we are well positioned to also benefit from stronger revenue and Adjusted EBITDA(1) growth in our largest and most profitable countercyclical businesses.”
Second Quarter 2025 Highlights(2)
Company, Corporate and Financial:
- Second quarter Service revenue of
$40.8 million was$3.9 million , or11% , higher than the same quarter of 2024 - Second quarter Income (loss) before income taxes and non-controlling interests of
$0.2 million was$7.8 million higher than the same quarter of 2024 - Second quarter Net income (loss) attributable to Altisource of
$16.6 million was$24.9 million higher than the same quarter of 2024 - Second quarter Diluted earnings per share of
$1.48 was$3.81 higher than the same quarter of 2024 - Second quarter Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”)(1) of
$5.4 million was$1.0 million , or19% , higher than the same quarter of 2024 - Second quarter Adjusted EBITDA(1) margin of
13.2% was stronger than the11.9% Adjusted EBITDA(1) margin in the same quarter of 2024 - During the second quarter of 2025, Management concluded that certain of its India tax positions for several years were more likely than not to be sustained based on current quarter developments. As a result, the Company recognized a
$9.6 million reversal of its reserve for uncertain tax positions related to its India operations and a$9.0 million reversal of associated accrued interest - Ended the quarter with
$30.0 million of cash and cash equivalents - On May 28, 2025, Altisource effected a consolidation of its shares (also known as a reverse stock split) at a ratio of 1-for-8 (the “Share Consolidation”). As a result of the Share Consolidation, every 8 shares of common stock outstanding immediately prior to effectiveness of the Share Consolidation were combined and converted into one share of common stock, reducing the total number of issued and outstanding shares from 88,129,766 to 11,016,220. No fractional shares were issued in connection with the Share Consolidation. Instead, shareholders received cash in lieu of fractional shares, based on the closing price of Altisource’s common stock on May 27, 2025.
Business and Industry:
- Improved Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together “Business Segments”) to
$12.9 million , or31.5% of Service revenue, from$11.6 million , or31.3% of Service revenue, in the same quarter of 2024 primarily from Service revenue growth - Generated sales wins which we estimate represent potential annualized Service revenue on a stabilized basis of
$1.1 million for the Servicer and Real Estate segment and$3.3 million for the Origination segment - Ended the quarter with a weighted average sales pipeline between
$36 million and$44 million of estimated potential Service revenue on a stabilized basis based upon forecasted probability of closing (comprising of between$22 million and$28 million in the Servicer and Real Estate segment and between$13 million and$16 million in the Origination segment) - Industrywide foreclosure initiations were
22% higher for the five months ended May 31, 2025 compared to the same period in 2024 (and22% lower than the same pre-COVID-19 period in 2019)(3) - Industrywide foreclosure sales were
3% higher for the five months ended May 31, 2025 compared to the same period in 2024 (and51% lower than the same pre-COVID-19 period in 2019)(3) - Industrywide mortgage origination volume increased by
14% for the six months ended June 30, 2025 compared to the same period in 2024, comprised of a2% decline in purchase origination and a58% increase in refinancing origination(4)
Second Quarter 2025 Financial Results
- Service revenue of
$40.8 million - Income from operations of
$3.2 million - Income before income taxes and non-controlling interests of
$0.2 million - Net income attributable to Altisource of
$16.6 million - Adjusted EBITDA(1) of
$5.4 million - Diluted earnings per share of
$1.48
Second Quarter and Year-to-Date 2025 Results Compared to the Second Quarter and Year-to-Date 2024 (unaudited):
| (in thousands, except per share data) | Second Quarter 2025 | Second Quarter 2024 | % Change | Year-to-Date June 30, 2025 | Year-to-Date June 30, 2024 | % Change | |||||||||||
| Service revenue | 11 | 11 | |||||||||||||||
| Revenue | 43,288 | 39,121 | 11 | 86,727 | 78,590 | 10 | |||||||||||
| Gross profit | 13,027 | 12,717 | 2 | 26,352 | 25,021 | 5 | |||||||||||
| Income from operations | 3,231 | 2,083 | 55 | 6,476 | 1,535 | 322 | |||||||||||
| Adjusted operating income(1) | 5,435 | 4,210 | 29 | 10,634 | 7,168 | 48 | |||||||||||
| Income (loss) before income taxes and non-controlling interests | 187 | (7,566 | ) | 102 | (4,342 | ) | (16,001 | ) | 73 | ||||||||
| Pretax income (loss) attributable to Altisource(1) | 111 | (7,601 | ) | 101 | (4,491 | ) | (16,077 | ) | 72 | ||||||||
| Adjusted pretax income (loss) attributable to Altisource(1) | 2,787 | (5,474 | ) | 151 | 3,119 | (10,444 | ) | 130 | |||||||||
| Adjusted EBITDA(1) | 5,382 | 4,384 | 23 | 10,644 | 9,016 | 18 | |||||||||||
| Net income (loss) attributable to Altisource | 16,582 | (8,307 | ) | 300 | 11,238 | (17,505 | ) | 164 | |||||||||
| Adjusted net income (loss) attributable to Altisource(1) | 2,166 | (5,963 | ) | 136 | 2,023 | (11,561 | ) | 118 | |||||||||
| Diluted earnings (loss) per share | 1.48 | (2.33 | ) | 164 | 1.19 | (4.94 | ) | 124 | |||||||||
| Adjusted diluted earnings (loss) per share(1) | 0.19 | (1.67 | ) | 111 | 0.22 | (3.26 | ) | 107 | |||||||||
| Net cash (used in) provided by operating activities | (306 | ) | 180 | (270 | ) | (5,278 | ) | (2,057 | ) | (157 | ) | ||||||
| Net cash (used in) provided by operating activities less additions to premises and equipment(1) | (309 | ) | 180 | (272 | ) | (5,306 | ) | (2,057 | ) | (158 | ) | ||||||
| Margins: | |||||||||||||||||
| Gross profit / service revenue | 32 | % | 34 | % | 32 | % | 34 | % | |||||||||
| Adjusted EBITDA(1)/ service revenue | 13 | % | 12 | % | 13 | % | 12 | % | |||||||||
________________________
- Second quarter 2025 income before income taxes and non-controlling interests includes
$3.5 million of Debt Exchange Transaction expenses (no comparative amount for the second quarter 2024). - Second quarter 2025 net income attributable to Altisource includes an
$18.5 million income tax benefit related to the reversal of a portion of its reserves for uncertain India tax positions and related accrued interest (no comparable amount for the second quarter of 2024).
________________________
| (1) | This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein | |
| (2) | Applies to the second quarter 2025 unless otherwise indicated | |
| (3) | Based on data from ICE’s Mortgage Monitor and First Look reports with data through May 2025 | |
| (4) | Based on estimated number of loans originated as reported by the Mortgage Bankers Association’s Mortgage Finance Forecast dated July 17, 2025 | |
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “seek,” “believe,” “potential” or “continue” or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 31, 2025 and in our Form 10-Q filed with the SEC on May 1, 2025. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our debt agreements, including the financial and other covenants contained therein, as well as Altisource’s ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events, except as required by law.
Webcast
Altisource will host a webcast at 08:30 a.m. EDT today to discuss our second quarter. A link to the live audio webcast will be available on Altisource’s website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Altisource
Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.
FOR FURTHER INFORMATION CONTACT:
Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
E: Michelle.Esterman@altisource.com
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in thousands, except per share data) (unaudited) | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Service revenue | $ | 40,787 | $ | 36,863 | $ | 81,682 | $ | 73,754 | |||||||
| Reimbursable expenses | 2,425 | 2,223 | 4,896 | 4,760 | |||||||||||
| Non-controlling interests | 76 | 35 | 149 | 76 | |||||||||||
| Total revenue | 43,288 | 39,121 | 86,727 | 78,590 | |||||||||||
| Cost of revenue | 30,261 | 26,404 | 60,375 | 53,569 | |||||||||||
| Gross profit | 13,027 | 12,717 | 26,352 | 25,021 | |||||||||||
| Selling, general and administrative expenses | 9,796 | 10,634 | 19,876 | 23,486 | |||||||||||
| Income from operations | 3,231 | 2,083 | 6,476 | 1,535 | |||||||||||
| Other income (expense), net: | |||||||||||||||
| Interest expense | (2,615 | ) | (9,788 | ) | (7,553 | ) | (19,317 | ) | |||||||
| Debt exchange transaction expenses | (472 | ) | — | (3,452 | ) | — | |||||||||
| Other income (expense), net | 43 | 139 | 187 | 1,781 | |||||||||||
| Total other income (expense), net | (3,044 | ) | (9,649 | ) | (10,818 | ) | (17,536 | ) | |||||||
| Income (loss) before income taxes and non-controlling interests | 187 | (7,566 | ) | (4,342 | ) | (16,001 | ) | ||||||||
| Income tax benefit (provision) | 16,471 | (706 | ) | 15,729 | (1,428 | ) | |||||||||
| Net income (loss) | 16,658 | (8,272 | ) | 11,387 | (17,429 | ) | |||||||||
| Net income attributable to non-controlling interests | (76 | ) | (35 | ) | (149 | ) | (76 | ) | |||||||
| Net income (loss) attributable to Altisource | $ | 16,582 | $ | (8,307 | ) | $ | 11,238 | $ | (17,505 | ) | |||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | $ | 1.51 | $ | (2.33 | ) | $ | 1.22 | $ | (4.94 | ) | |||||
| Diluted | $ | 1.48 | $ | (2.33 | ) | $ | 1.19 | $ | (4.94 | ) | |||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 10,966 | 3,569 | 9,178 | 3,546 | |||||||||||
| Diluted | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Comprehensive income (loss): | |||||||||||||||
| Net income (loss) | $ | 16,658 | $ | (8,272 | ) | $ | 11,387 | $ | (17,429 | ) | |||||
| Comprehensive income attributable to non-controlling interests | (76 | ) | (35 | ) | (149 | ) | (76 | ) | |||||||
| Comprehensive income (loss) attributable to Altisource | $ | 16,582 | $ | (8,307 | ) | $ | 11,238 | $ | (17,505 | ) | |||||
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED BALANCE SHEETS (in thousands, except for per share data) (unaudited) | |||||||
| June 30, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 29,985 | $ | 29,811 | |||
| Accounts receivable, net of allowance for credit losses of | 18,442 | 15,050 | |||||
| Prepaid expenses and other current assets | 5,503 | 6,240 | |||||
| Total current assets | 53,930 | 51,101 | |||||
| Premises and equipment, net | 366 | 701 | |||||
| Right-of-use assets under operating leases | 1,612 | 2,243 | |||||
| Goodwill | 55,960 | 55,960 | |||||
| Intangible assets, net | 18,928 | 21,468 | |||||
| Deferred tax assets, net | 5,632 | 5,629 | |||||
| Other assets | 6,513 | 6,504 | |||||
| Total assets | $ | 142,941 | $ | 143,606 | |||
| LIABILITIES AND DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 31,991 | $ | 33,512 | |||
| Current portion of long-term debt | 1,225 | 230,544 | |||||
| Deferred revenue | 3,401 | 3,979 | |||||
| Other current liabilities | 3,507 | 3,238 | |||||
| Total current liabilities | 40,124 | 271,273 | |||||
| Long-term debt | 192,641 | — | |||||
| Deferred tax liabilities, net | 9,098 | 9,028 | |||||
| Other non-current liabilities | 3,008 | 20,016 | |||||
| Commitments, contingencies and regulatory matters | |||||||
| Deficit: | |||||||
| Common stock ( | 110 | 37 | |||||
| Additional paid-in capital | 255,228 | 211,523 | |||||
| Accumulated deficit | (352,608 | ) | (259,977 | ) | |||
| Treasury stock, at cost (33 shares as of June 30, 2025 and 342 shares as of December 31, 2024) | (5,419 | ) | (108,959 | ) | |||
| Altisource deficit | (102,689 | ) | (157,376 | ) | |||
| Non-controlling interests | 759 | 665 | |||||
| Total deficit | (101,930 | ) | (156,711 | ) | |||
| Total liabilities and deficit | $ | 142,941 | $ | 143,606 | |||
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Six months ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 11,387 | $ | (17,429 | ) | ||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
| Depreciation and amortization | 363 | 572 | |||||
| Amortization of right-of-use assets under operating leases | 546 | 811 | |||||
| Amortization of intangible assets | 2,540 | 2,540 | |||||
| Paid-in-kind accrual | — | 4,269 | |||||
| Share-based compensation expense | 1,758 | 3,057 | |||||
| Bad debt expense | (38 | ) | 550 | ||||
| Amortization of debt premium | (1,677 | ) | — | ||||
| Amortization of debt discount | 718 | 1,901 | |||||
| Amortization of debt issuance costs | 448 | 1,224 | |||||
| Deferred income taxes | 70 | 18 | |||||
| Loss on disposal of fixed assets | — | 13 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,354 | ) | (2,058 | ) | |||
| Prepaid expenses and other current assets | 737 | 3,027 | |||||
| Other assets | (23 | ) | 61 | ||||
| Accounts payable and accrued expenses | (1,521 | ) | (44 | ) | |||
| Current and non-current operating lease liabilities | (563 | ) | (838 | ) | |||
| Other current and non-current liabilities | (16,669 | ) | 269 | ||||
| Net cash used in operating activities | (5,278 | ) | (2,057 | ) | |||
| Cash flows from investing activities: | |||||||
| Additions to premises and equipment | (28 | ) | — | ||||
| Net cash used in investing activities | (28 | ) | — | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from the Super Senior Facility | 11,250 | — | |||||
| Debt issuance costs | (1,741 | ) | — | ||||
| Repayments of long-term debt | (306 | ) | — | ||||
| Equity issuance costs | (3,350 | ) | — | ||||
| Purchase of fractional shares | (1 | ) | — | ||||
| Exercise of Warrants, net of costs | — | (90 | ) | ||||
| Distributions to non-controlling interests | (55 | ) | (51 | ) | |||
| Payments of tax withholding on issuance of restricted share units and restricted shares | (328 | ) | (632 | ) | |||
| Net cash provided by (used in) financing activities | 5,469 | (773 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 163 | (2,830 | ) | ||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 32,700 | 35,416 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 32,863 | $ | 32,586 | |||
| Supplemental cash flow information: | |||||||
| Interest paid | $ | 7,910 | $ | 11,870 | |||
| Income taxes (refunded) paid, net | (682 | ) | 1,121 | ||||
| Acquisition of right-of-use assets with operating lease liabilities | 77 | 65 | |||||
| Reduction of right-of-use assets from operating lease modifications or reassessments | (162 | ) | (21 | ) | |||
| Non-cash investing and financing activities: | |||||||
| Equity issued in exchange for debt reduction | 45,370 | — | |||||
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. NON-GAAP MEASURES (in thousands, except per share data) (unaudited) |
Adjusted operating income, pretax income (loss) attributable to Altisource, adjusted pretax income (loss) attributable to Altisource, adjusted net income (loss) attributable to Altisource, adjusted diluted earnings (loss) per share, net cash (used in) provided by operating activities less additions to premises and equipment, Adjusted EBITDA, Business Segments Adjusted EBITDA and net debt, which are presented elsewhere in this earnings release, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource’s performance and do not purport to be alternatives to income from operations, income (loss) before income taxes and non-controlling interests, net income (loss) attributable to Altisource, diluted earnings (loss) per share, net cash (used in) provided by operating activities and long-term debt, including current portion, as measures of Altisource’s performance. We believe these measures are useful to management, existing shareholders, potential shareholders and other users of our financial information in evaluating operating profitability and cash flow generation more on the basis of continuing cost and cash flows as they exclude amortization expense related to acquisitions that occurred in prior periods and non-cash share-based compensation, as well as the effect of more significant non-operational items from earnings, cash flows from operating activities and long-term debt net of cash on-hand. We believe these measures are also useful in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis. Specifically, management uses adjusted net income (loss) attributable to Altisource to measure the on-going after tax performance of the Company because the measure adjusts for the after tax impact of more significant non-recurring items, amortization expense relating to prior acquisitions (some of which fluctuates with revenue from certain customers and some of which is amortized on a straight-line basis) and non-cash share-based compensation expense which can fluctuate based on vesting schedules, grant date timing and the value attributable to awards. We believe adjusted net income (loss) attributable to Altisource is useful to existing shareholders, potential shareholders and other users of our financial information because it provides an after-tax measure of Altisource’s on-going performance that enables these users to perform trend analysis using comparable data. Management uses adjusted diluted earnings (loss) per share to further evaluate adjusted net income (loss) attributable to Altisource while taking into account changes in the number of diluted shares over the comparable periods. We believe adjusted diluted earnings (loss) per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income (loss) attributable to Altisource on a per share basis. Management uses Adjusted EBITDA to measure the Company’s overall performance and Business Segments Adjusted EBITDA to measure the segments overall performance (with the adjustments discussed earlier with regard to adjusted net income (loss) attributable to Altisource) without regard to its capitalization (debt vs. equity) or its income taxes and to perform trend analysis of the Company’s performance over time. Our effective income tax rate can vary based on the jurisdictional mix of our income. Additionally, as the Company’s capital expenditures have significantly declined over time, it provides a measure for management to evaluate the Company’s performance without regard to prior capital expenditures. Management also uses Adjusted EBITDA as one of the measures in determining bonus compensation for certain employees. We believe Adjusted EBITDA and Business Segments Adjusted EBITDA are useful to existing shareholders, potential shareholders and other users of our financial information for the same reasons that management finds the measure useful. Management uses net debt in evaluating the amount of debt the Company has that is in excess of cash and cash equivalents. We believe net debt is useful to existing shareholders, potential shareholders and other users of our financial information for the same reasons management finds the measure useful.
Altisource operates in several countries, including Luxembourg, India, the United States and Uruguay. The Company has differing effective tax rates in each country and these rates may change from year to year. In determining the tax effects related to the adjustments in calculating adjusted net income (loss) attributable to Altisource and adjusted diluted earnings (loss) per share, we use the tax rate in the country in which the adjustment applies or, if the adjustment is recognized in more than one country, we separate the adjustment by country, apply the relevant tax rate for each country to the applicable adjustment, and then sum the result to arrive at the total adjustment, net of tax. In 2019, the Company recognized a full valuation allowance on its net deferred tax assets in Luxembourg. Accordingly, for 2025 and 2024, the Company has an effective tax rate of close to
It is management’s intent to provide non-GAAP financial information to enhance the understanding of Altisource’s GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. The non-GAAP financial information should not be unduly relied upon.
Adjusted operating income is calculated by removing intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other from income from operations. Pretax income (loss) attributable to Altisource is calculated by removing non-controlling interests from income (loss) before income taxes and non-controlling interests. Adjusted pretax income (loss) attributable to Altisource is calculated by removing non-controlling interests, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other and debt exchange transaction expenses from income (loss) before income taxes and non-controlling interests. Adjusted net income (loss) attributable to Altisource is calculated by removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt exchange transaction expenses (net of tax) and certain income tax related items from net income (loss) attributable to Altisource. Adjusted diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt exchange transaction expenses (net of tax) and certain income tax related items by the weighted average number of diluted shares. Net cash used in operating activities less additions to premises and equipment is calculated by removing additions to premises and equipment from net cash (used in) provided by operating activities. Adjusted EBITDA is calculated by removing the income tax provision, interest expense (net of interest income), depreciation and amortization, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other and debt exchange transaction expenses from net income (loss) attributable to Altisource. Business Segments Adjusted EBITDA is calculated by removing non-controlling interests, interest expense (net of interest income), depreciation and amortization, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other from income before income taxes and non-controlling interests. Net debt is calculated as long-term debt, including current portion, minus cash and cash equivalents.
| Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows: | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income from operations | $ | 3,231 | $ | 2,083 | $ | 6,476 | $ | 1,535 | |||||||
| Intangible asset amortization expense | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Share-based compensation expense | 664 | 844 | 1,758 | 3,057 | |||||||||||
| Cost of cost savings initiatives and other | 270 | 13 | (140 | ) | 36 | ||||||||||
| Adjusted operating income | $ | 5,435 | $ | 4,210 | $ | 10,634 | $ | 7,168 | |||||||
| Income (loss) before income taxes and non-controlling interests | $ | 187 | $ | (7,566 | ) | $ | (4,342 | ) | $ | (16,001 | ) | ||||
| Non-controlling interests | (76 | ) | (35 | ) | (149 | ) | (76 | ) | |||||||
| Pretax income (loss) attributable to Altisource | 111 | (7,601 | ) | (4,491 | ) | (16,077 | ) | ||||||||
| Intangible asset amortization expense | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Share-based compensation expense | 664 | 844 | 1,758 | 3,057 | |||||||||||
| Cost of cost savings initiatives and other | 270 | 13 | (140 | ) | 36 | ||||||||||
| Debt exchange transaction expenses | 472 | — | 3,452 | — | |||||||||||
| Adjusted pretax income (loss) attributable to Altisource | $ | 2,787 | $ | (5,474 | ) | $ | 3,119 | $ | (10,444 | ) | |||||
| Net income (loss) attributable to Altisource | $ | 16,582 | $ | (8,307 | ) | $ | 11,238 | $ | (17,505 | ) | |||||
| Income tax (benefit) provision | (16,471 | ) | 706 | (15,729 | ) | 1,428 | |||||||||
| Interest expense (net of interest income) | 2,417 | 9,582 | 7,162 | 18,888 | |||||||||||
| Depreciation and amortization | 178 | 276 | 363 | 572 | |||||||||||
| Intangible asset amortization expense | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Share-based compensation expense | 664 | 844 | 1,758 | 3,057 | |||||||||||
| Cost of cost savings initiatives and other | 270 | 13 | (140 | ) | 36 | ||||||||||
| Debt exchange transaction expenses | 472 | — | 3,452 | — | |||||||||||
| Adjusted EBITDA | $ | 5,382 | $ | 4,384 | $ | 10,644 | $ | 9,016 | |||||||
| Business Segments: | |||||||||||||||
| Income before income taxes and non-controlling interests | $ | 11,824 | $ | 9,907 | $ | 22,680 | $ | 19,054 | |||||||
| Non-controlling interests | (76 | ) | (35 | ) | (149 | ) | (76 | ) | |||||||
| Depreciation and amortization | 76 | 88 | 154 | 185 | |||||||||||
| Intangible asset amortization expense | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Share-based compensation expense | (364 | ) | 314 | (85 | ) | 710 | |||||||||
| Cost of cost savings initiatives and other | 102 | 9 | 131 | 28 | |||||||||||
| Interest expense (net of interest income) | 19 | 1 | 46 | 1 | |||||||||||
| Business Segments Adjusted EBITDA | $ | 12,851 | $ | 11,554 | $ | 25,317 | $ | 22,442 | |||||||
| Corporate and Others: | |||||||||||||||
| Loss before income taxes and non-controlling interests | $ | (11,637 | ) | $ | (17,473 | ) | $ | (27,022 | ) | $ | (35,055 | ) | |||
| Depreciation and amortization | 102 | 188 | 209 | 387 | |||||||||||
| Share-based compensation expense | 1,028 | 530 | 1,843 | 2,347 | |||||||||||
| Cost of cost savings initiatives and other | 168 | 4 | (271 | ) | 8 | ||||||||||
| Debt exchange transaction expenses | 472 | — | 3,452 | — | |||||||||||
| Interest expense (net of interest income) | 2,398 | 9,581 | 7,116 | 18,887 | |||||||||||
| Corporate and Others Adjusted EBITDA | $ | (7,469 | ) | $ | (7,170 | ) | $ | (14,673 | ) | $ | (13,426 | ) | |||
| Net income (loss) attributable to Altisource | $ | 16,582 | $ | (8,307 | ) | $ | 11,238 | $ | (17,505 | ) | |||||
| Intangible asset amortization expense, net of tax | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Share-based compensation expense, net of tax | 701 | 710 | 1,655 | 2,672 | |||||||||||
| Cost of cost savings initiatives and other, net of tax | 297 | 10 | (99 | ) | 27 | ||||||||||
| Debt exchange transaction expenses, net of tax | 472 | — | 3,452 | — | |||||||||||
| Certain income tax related items | (17,156 | ) | 354 | (16,763 | ) | 705 | |||||||||
| Adjusted net income (loss) attributable to Altisource | $ | 2,166 | $ | (5,963 | ) | $ | 2,023 | $ | (11,561 | ) | |||||
| Diluted earnings (loss) per share | $ | 1.48 | $ | (2.33 | ) | $ | 1.19 | $ | (4.94 | ) | |||||
| Intangible asset amortization expense, net of tax, per diluted share | 0.11 | 0.36 | 0.27 | 0.72 | |||||||||||
| Share-based compensation expense, net of tax, per diluted share | 0.06 | 0.20 | 0.18 | 0.75 | |||||||||||
| Cost of cost savings initiatives and other, net of tax, per diluted share | 0.03 | 0.00 | (0.01 | ) | 0.01 | ||||||||||
| Debt exchange transaction expenses, per diluted share | 0.04 | — | 0.37 | — | |||||||||||
| Certain income tax related items, per diluted share | (1.53 | ) | 0.10 | (1.78 | ) | 0.20 | |||||||||
| Adjusted diluted earnings (loss) per share | $ | 0.19 | $ | (1.67 | ) | $ | 0.22 | $ | (3.26 | ) | |||||
| Calculation of the per share impact of intangible asset amortization expense, net of tax | |||||||||||||||
| Intangible asset amortization expense | $ | 1,270 | $ | 1,270 | $ | 2,540 | $ | 2,540 | |||||||
| Tax benefit from intangible asset amortization | — | — | — | — | |||||||||||
| Intangible asset amortization expense, net of tax | 1,270 | 1,270 | 2,540 | 2,540 | |||||||||||
| Diluted share count | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Intangible asset amortization expense, net of tax, per diluted share | $ | 0.11 | $ | 0.36 | $ | 0.27 | $ | 0.72 | |||||||
| Calculation of the per share impact of share-based compensation expense, net of tax | |||||||||||||||
| Share-based compensation expense | $ | 664 | $ | 844 | $ | 1,758 | $ | 3,057 | |||||||
| Tax provision (benefit) from share-based compensation expense | 38 | (134 | ) | (103 | ) | (385 | ) | ||||||||
| Share-based compensation expense, net of tax | 701 | 710 | 1,655 | 2,672 | |||||||||||
| Diluted share count | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Share-based compensation expense, net of tax, per diluted share | $ | 0.06 | $ | 0.20 | $ | 0.18 | $ | 0.75 | |||||||
| Calculation of the per share impact of debt exchange transaction expenses, net of tax | |||||||||||||||
| Debt exchange transaction expenses | $ | 472 | $ | — | $ | 3,452 | $ | — | |||||||
| Tax benefit from debt exchange transaction expenses | — | — | — | — | |||||||||||
| Debt exchange transaction expenses, net of tax | 472 | — | 3,452 | — | |||||||||||
| Diluted share count | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Debt exchange transaction expenses, net of tax, per diluted share | $ | 0.04 | $ | — | $ | 0.37 | $ | — | |||||||
| Calculation of the per share impact of cost of cost savings initiatives and other, net of tax | |||||||||||||||
| Cost of cost savings initiatives and other | $ | 270 | $ | 13 | $ | (140 | ) | $ | 36 | ||||||
| Tax provision (benefit) from cost of cost savings initiatives and other | 27 | (3 | ) | 41 | (9 | ) | |||||||||
| Cost of cost savings initiatives and other, net of tax | 297 | 10 | (99 | ) | 27 | ||||||||||
| Diluted share count | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Cost of cost savings initiatives and other, net of tax, per diluted share | $ | 0.03 | $ | 0.00 | $ | (0.01 | ) | $ | 0.01 | ||||||
| Calculation of the per share impact of certain income tax related items resulting from: | |||||||||||||||
| Foreign income tax reserves / other | $ | (17,156 | ) | $ | 354 | $ | (16,763 | ) | $ | 705 | |||||
| Certain income tax related items | (17,156 | ) | 354 | (16,763 | ) | 705 | |||||||||
| Diluted share count | 11,206 | 3,569 | 9,439 | 3,546 | |||||||||||
| Certain income tax related items, per diluted share | $ | (1.53 | ) | $ | 0.10 | $ | (1.78 | ) | $ | 0.20 | |||||
| Net cash (used in) provided by operating activities | $ | (306 | ) | $ | 180 | $ | (5,278 | ) | $ | (2,057 | ) | ||||
| Less: additions to premises and equipment | (3 | ) | — | (28 | ) | — | |||||||||
| Net cash (used in) provided by operating activities less additions to premises and equipment | $ | (309 | ) | $ | 180 | $ | (5,306 | ) | $ | (2,057 | ) | ||||
| June 30, 2025 | |||
| Senior secured term loans | $ | 159,725 | |
| Super senior term loan | 12,469 | ||
| Less: Cash and cash equivalents | (29,985 | ) | |
| Net debt | $ | 142,209 | |
____________________________
Note: Amounts may not add to the total due to rounding.
FAQ
What were Altisource's (ASPS) key financial results for Q2 2025?
How did the reverse stock split affect Altisource (ASPS) shares in May 2025?
What was the impact of the India tax position reversal for Altisource (ASPS) in Q2 2025?
What is Altisource's (ASPS) current sales pipeline as of Q2 2025?
How much cash does Altisource (ASPS) have as of Q2 2025?
