Fourth Quarter 2024 Service Revenue and Adjusted EBITDA(1) was the Strongest Since the Third Quarter of 2021 and the Third Quarter of 2020, Respectively
LUXEMBOURG, March 13, 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 fourth quarter and full year 2024.
“I am pleased with our full year and fourth quarter 2024 performance as we continue to improve our financial results and win new business. In the face of serious market headwinds for both Business Segments, we had strong performance improvements across the board. For the year, we grew total Company Service revenue by 10% and Adjusted EBITDA(1) by $18.3 million, compared to 2023. In February 2025, we executed an exchange and maturity extension transaction with our lenders, significantly strengthening our balance sheet and reducing interest expense,” said Chairman and Chief Executive Officer William B. Shepro.
Mr. Shepro further commented, “As we look to 2025, we believe we are positioned to diversify our revenue base and ramp business we have won while maintaining cost discipline. Based upon our current business and market expectations, which assumes roughly flat delinquency rates and 13% growth in origination volume, we are guiding to 2025 Service revenue of $165 million to $185 million and Adjusted EBITDA(1) of $18 million to $23 million. At the midpoint, this represents 16% annual Service revenue growth and 18% Adjusted EBITDA(1) growth over 2024. We are also forecasting to generate positive operating cash flow from Service revenue and Adjusted EBITDA(1) growth and lower corporate interest expense.”
2024 Highlights(2)
Company, Corporate and Financial:
Grew Service revenue by $13.8 million, or 10%, to $150.4 million in 2024 compared to 2023
Full year 2024 total Company Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”)(1) of $17.4 million was $18.3 million higher than 2023 due to (1) improving Adjusted EBITDA(1) margins in the Servicer and Real Estate and Origination segments (together “Business Segments”) to 29.7% in 2024 from 25.1% in 2023, and (2) reducing Corporate and Others Adjusted EBITDA loss as a percentage of total Company Service revenue to (18.1)% in 2024 from (25.7)% in 2023, primarily through efficiency initiatives and cost savings measures and Service revenue growth
Improved Adjusted EBITDA(1) by almost $50 million over the last three years
Fourth quarter 2024 Service revenue of $38.4 million was $6.2 million, or 19%, higher than the fourth quarter of 2023, marking the highest quarterly Service revenue since the third quarter of 2021
Fourth quarter 2024 Adjusted EBITDA(1) of $4.7 million was $4.5 million higher than the fourth quarter of 2023, marking the highest quarterly Adjusted EBITDA(1) since the third quarter of 2020
Ended the year with $29.8 million of cash and cash equivalents
On February 19, 2025, the Company executed and closed an exchange transaction with 100% of lenders under the Company’s senior secured term loans whereby the lenders exchanged the Company’s senior secured term loans with an outstanding balance of $232.8 million for a $160.0 million new first lien loan and the issuance of approximately 58.2 million common shares of Altisource (the “Term Loan Exchange Transaction”); the new first lien loan is comprised of a $110 million term loan and a $50 million non-interest bearing exit fee which is reduced on a pro-rata basis with the repayment of the term loan
In connection with the Term Loan Exchange Transaction, Altisource will be issuing transferable warrants to holders as of February 14, 2025 of the Company’s (i) common stock, (ii) restricted share units and (iii) outstanding penny warrants, to purchase approximately 114.5 million shares of Altisource common stock for $1.20 per share (the “Stakeholder Warrants”); once issued, the Stakeholder Warrants will provide Stakeholders with the ability to purchase approximately 3.25 shares of Altisource common stock for each share of or right to common stock held6
On February 19, 2025, Altisource also executed and closed on a $12.5 million super senior credit facility to fund transaction costs related to the Term Loan Exchange Transaction and for general corporate purposes (the “Super Senior Facility Transaction”)
The Term Loan Exchange Transaction and the Super Senior Facility Transaction reduce annual cash and payment-in-kind interest by approximately $18 million to $13.4 million(5) and extend the maturity dates of the Company’s senior secured debt
Business and Industry:
In the face of serious market headwinds for both Business Segments, Service revenue in the Servicer and Real Estate segment increased by 11% to $120 million and Service revenue in the Origination segment increased by 6% to $30 million
Improved Adjusted EBITDA(1) in the Business Segments by $10.4 million to $44.6 million in 2024 compared to $34.2 million in 2023; improved Adjusted EBITDA as a percentage of Service revenue in the Business Segments to 29.7% in 2024 from 25.1% in 2023; improvements were primarily through scale benefits and efficiency and cost cutting initiatives
Ended 2024 with a weighted average sales pipeline between $38 million and $47 million of potential estimated revenue on a stabilized basis based upon forecasted probability of closing (comprised of between $26 million and $33 million in the Servicer and Real Estate segment and between $12 million and $15 million in the Origination segment)
Generated 2024 sales wins which we estimate represent potential annualized Service revenue on a stabilized basis of $25.8 million for the Servicer and Real Estate segment and $13.6 million for the Origination segment
Industrywide foreclosure initiations were 6% lower in 2024 compared to 2023 (and 35% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide foreclosure sales were 14% lower in 2024 compared to 2023 (and 53% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide mortgage origination volume increased by 20% in 2024 compared to 2023, comprised of a 2% decline in purchase origination and a 112% increase in refinance origination(4)
Industrywide seriously delinquent mortgage rate (90+ day past due and loans in foreclosure) increased to 1.4% in December 2024 compared to 1.3% in December 2023(3)
2024 Financial Results
Full Year 2024
Service revenue of $150.4 million
Income from operations of $3.2 million
Loss before income taxes and non-controlling interests of $(32.9) million
Net loss attributable to Altisource of $(35.6) million
Adjusted EBITDA(1) of $17.4 million
Fourth Quarter 2024
Service revenue of $38.4 million
Income from operations of $0.6 million
Loss before income taxes and non-controlling interests of $(8.4) million
Net loss attributable to Altisource of $(8.8) million
Adjusted EBITDA(1) of $4.7 million
Fourth Quarter and Full Year 2024 Results Compared to the Fourth Quarter and Full Year 2023 (unaudited):
(in thousands, except per share data)
Fourth Quarter 2024
Fourth Quarter 2023
% Change
Full Year 2024
Full Year 2023
% Change
Service revenue
$
38,450
$
32,209
19
$
150,354
$
136,565
10
Income (loss) from operations
584
(2,824
)
121
3,224
(16,768
)
119
Adjusted operating income (loss)(1)
4,234
(269
)
N/M
14,821
(2,282
)
N/M
Loss before income taxes and non-controlling interests
(8,373
)
(11,950
)
30
(32,867
)
(52,348
)
37
Pretax loss attributable to Altisource(1)
(8,425
)
(12,023
)
30
(33,055
)
(52,576
)
37
Adjusted pretax loss attributable to Altisource(1)
(4,775
)
(9,468
)
50
(21,458
)
(38,090
)
44
Adjusted EBITDA(1)
4,747
237
N/M
17,387
(909
)
N/M
Net loss attributable to Altisource
(8,769
)
(13,151
)
33
(35,636
)
(56,290
)
37
Adjusted net loss attributable to Altisource(1)
(5,013
)
(10,301
)
51
(23,147
)
(41,348
)
44
Diluted loss per share
(0.31
)
(0.47
)
34
(1.25
)
(2.51
)
50
Adjusted diluted loss per share(1)
(0.18
)
(0.37
)
51
(0.81
)
(1.84
)
56
Net cash used in operating activities
(1,401
)
(4,238
)
67
(5,025
)
(21,833
)
77
Net cash used in operating activities less additions to premises and equipment(1)
(1,404
)
(4,238
)
67
(5,028
)
(21,833
)
77
N/M — not meaningful.
•
Fourth quarter and full year 2023 loss before income taxes and non-controlling interests includes less than $0.1 million and $3.4 million, respectively, of debt amendment costs (no comparative amount for the fourth quarter and full year 2024). Full year 2023 loss before income taxes and non-controlling interests includes $1.1 million of other income related to the change in fair value of warrant liability (no comparative amount for the fourth quarter 2023 and the fourth quarter and full year 2024)
(1)
This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein
(2)
Applies to full year 2024 unless otherwise indicated
(3)
Based on data from ICE’s Mortgage Monitor and First Look reports with data through December 2024
(4)
Based on estimated number of loans originated as reported by the Mortgage Bankers Association’s Mortgage Finance Forecast dated February 19, 2025
(5)
Reduction in annual interest is based on SOFR of 4.29% as of March 7, 2025 and the outstanding balance on the senior secured term loans as of December 31, 2024. GAAP interest expense may differ from amounts presented herein
(6)
Stakeholder Warrants are subject to the previously disclosed vesting requirements
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 on March 7, 2024. 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 8:30 a.m. EDT today to discuss our fourth quarter and full year 2024 results. 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 LOSS
(in thousands, except per share data)
(unaudited)
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Service revenue
$
38,450
$
32,209
$
150,354
$
136,565
Reimbursable expenses
2,511
1,875
9,592
8,273
Non-controlling interests
52
73
188
228
Total revenue
41,013
34,157
160,134
145,066
Cost of revenue
28,575
25,730
110,605
115,414
Gross profit
12,438
8,427
49,529
29,652
Operating expense:
Selling, general and administrative expenses
11,169
11,251
45,620
46,420
Loss on sale of business
685
—
685
—
Income (loss) from operations
584
(2,824
)
3,224
(16,768
)
Other income (expense), net:
Interest expense
(9,600
)
(9,549
)
(38,877
)
(36,103
)
Change in fair value of warrant liability
—
—
—
1,145
Debt amendment costs
—
(8
)
—
(3,410
)
Other income (expense), net
643
431
2,786
2,788
Total other income (expense), net
(8,957
)
(9,126
)
(36,091
)
(35,580
)
Loss before income taxes and non-controlling interests
(8,373
)
(11,950
)
(32,867
)
(52,348
)
Income tax provision
(344
)
(1,128
)
(2,581
)
(3,714
)
Net loss
(8,717
)
(13,078
)
(35,448
)
(56,062
)
Net income attributable to non-controlling interests
(52
)
(73
)
(188
)
(228
)
Net loss attributable to Altisource
$
(8,769
)
$
(13,151
)
$
(35,636
)
$
(56,290
)
Loss per share:
Basic
$
(0.31
)
$
(0.47
)
$
(1.25
)
$
(2.51
)
Diluted
$
(0.31
)
$
(0.47
)
$
(1.25
)
$
(2.51
)
Weighted average shares outstanding:
Basic
28,729
28,106
28,534
22,418
Diluted
28,729
28,106
28,534
22,418
Comprehensive loss:
Comprehensive loss, net of tax
$
(8,717
)
$
(13,078
)
$
(35,448
)
$
(56,062
)
Comprehensive income attributable to non-controlling interests
(52
)
(73
)
(188
)
(228
)
Comprehensive loss attributable to Altisource
$
(8,769
)
$
(13,151
)
$
(35,636
)
$
(56,290
)
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
29,811
$
32,522
Accounts receivable, net of allowance for credit losses of $3,124 and $3,123, respectively
15,050
11,682
Prepaid expenses and other current assets
6,240
11,336
Total current assets
51,101
55,540
Premises and equipment, net
701
1,709
Right-of-use assets under operating leases
2,243
3,379
Goodwill
55,960
55,960
Intangible assets, net
21,468
26,548
Deferred tax assets, net
5,629
4,992
Other assets
6,504
6,730
Total assets
$
143,606
$
154,858
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable and accrued expenses
$
33,512
$
30,088
Current portion of long-term debt
230,544
—
Deferred revenue
3,979
3,195
Other current liabilities
3,238
2,477
Total current liabilities
271,273
35,760