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 second quarter of 2025. The report highlights significant improvements in both financial and operational performance, underscoring the company's strategic focus on cost management and operational efficiency.

Financial Highlights

• Revenue: $43.3 million, reflecting a 10.7% increase compared to the same period in 2024, driven by higher service revenue.
• Gross Profit: $13.0 million, showing an improvement over the previous year's $12.7 million, indicating better cost management.
• Income from Operations: $3.2 million, a significant increase from $2.1 million in the prior year, highlighting improved operational efficiency.
• Net Income: $16.7 million, compared to a net loss of $8.3 million in the previous year, primarily due to a substantial income tax benefit.
• Earnings Per Share (Basic): $1.51, compared to a loss of $2.33 per share in the previous year, reflecting the positive net income.
• Earnings Per Share (Diluted): $1.48, compared to a loss of $2.33 per share in the previous year, indicating improved profitability.

Business Highlights

• Revenue Segments: The company 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, with a notable contribution from Onity, the largest customer, which accounted for 43% of total revenue for the three months ended June 30, 2025.
• Customer Concentration: Onity remains the largest customer, contributing 43% and 44% of total revenue for the three and six months ended June 30, 2025, respectively. The company has long-term service agreements with Onity extending through August 2030.
• Geographical Performance: The company operates globally, with premises and equipment located in Luxembourg, India, the United States, and Uruguay. The majority of premises and equipment are located in Luxembourg.
• Operational Efficiency: The company has managed to reduce its operating lease liabilities and right-of-use assets, indicating a focus on optimizing operational costs.
• Future Outlook: The company is focused on maintaining its relationship with Onity and expanding its service offerings to other clients in the real estate and mortgage industries. The management is also evaluating the impact of new accounting standards on its financial statements.
• Segment Performance: The Servicer and Real Estate segment showed strong performance, contributing significantly to the company's revenue, while the Origination segment also provided a steady revenue stream.
• Operational Adjustments: The company has undergone a share consolidation, reducing the total number of issued and outstanding shares, which may impact future operational strategies and shareholder value.

SEC Filing: ALTISOURCE PORTFOLIO SOLUTIONS S.A. [ ASPS ] - 10-Q - Jul. 24, 2025