Altisource Announces Second Quarter 2025 Financial 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, or 11%, 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, or 19%, higher than the same quarter of 2024
Second quarter Adjusted EBITDA(1) margin of 13.2% was stronger than the 11.9% 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, or 31.5% of Service revenue, from $11.6 million, or 31.3% 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 (and 22% 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 (and 51% 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 a 2% decline in purchase origination and a 58% 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
$ 40,787
$ 36,863
11
$81,682
$73,754
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:
ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in thousands, except per share data)(unaudited)
Three months endedJune 30,
Six months endedJune 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 $2,575 and $3,124, respectively
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
