ALTISOURCE PORTFOLIO SOLUTIONS S.A. SEC 10-Q Report

Altisource Portfolio Solutions S.A., a leading provider of services and technology for the mortgage and real estate industries, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both the challenges and opportunities faced by the company in the current market environment.

Financial Highlights

• Revenue: $41.9 million, reflecting a slight increase from the previous year, indicating stable sales performance.
• Gross Profit: $11.3 million, showing a decrease compared to the previous year, suggesting a potential increase in cost of revenue.
• Income from Operations: $0.5 million, a decrease from the previous year, highlighting challenges in managing operating expenses.
• Net Income: $(2.3) million, indicating a net loss, primarily driven by high interest expenses and debt exchange transaction costs.
• Basic EPS: $(0.22), reflecting the net loss per share attributable to common shareholders.
• Diluted EPS: $(0.22), consistent with Basic EPS due to the anti-dilutive effect of potential common shares.

Business Highlights

• Revenue Segments: Altisource operates through two main segments: Servicer and Real Estate, and Origination. The Servicer and Real Estate segment accounted for a significant portion of the revenue, focusing on services performed or assets sold, technology platforms, and professional services. The Origination segment also contributed to the revenue, albeit to a lesser extent, with similar service offerings.
• Customer Concentration: Onity Group Inc. was the largest customer, contributing 42% and 43% of total revenue for the three and nine months ended September 30, 2025, respectively. Revenue from Onity primarily consists of services related to loan portfolios serviced and subserviced by Onity.
• Geographical Performance: The company's operations are primarily based in the United States, with additional activities in Luxembourg, India, and Uruguay. The majority of premises and equipment are located in Luxembourg, followed by India and the United States.
• Operational Performance: The company has seen a shift in its operational focus with a significant reduction in premises and equipment, indicating a possible move towards more efficient or outsourced operations.
• Future Outlook: The management agreement with Lenders One, a mortgage cooperative managed by Altisource, extends through December 31, 2025, with options for renewal. This agreement represents a variable interest in a variable interest entity, indicating potential future revenue streams.
• Customer Agreements: The Onity Services Agreements, which extend through August 2030, include provisions for renegotiating pricing and a 'most favored nation' clause, suggesting stable long-term revenue from this customer.
• Service Offerings: Altisource continues to provide a range of services including foreclosure trustee services, SaaS-based technology for REO management, vendor management transactions, and residential real estate renovation services, with revenue recognized over time as services are performed.
• Contractual Developments: The Rithm Brokerage Agreement, which expired on August 31, 2025, allowed Altisource to manage REO and receive referrals from portfolios previously under the agreement, indicating continued business relationships despite the expiration.
• Operational Adjustments: The company has adjusted its operations to reflect changes in customer demand and market conditions, as evidenced by the reduction in accounts receivable and the strategic management of its debt and equity positions.

SEC Filing: ALTISOURCE PORTFOLIO SOLUTIONS S.A. [ ASPS ] - 10-Q - Oct. 23, 2025