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Altisource Q1 2025 Earnings Report
Estimated Revenue:$NaN
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Estimated EPS:$NaN
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Key Takeaways
Altisource Portfolio Solutions S.A. reported a strong first quarter in 2025, with service revenue increasing by 11% to $40.9 million and Adjusted EBITDA growing by 14% to $5.3 million, primarily due to the ramp-up of its Renovation Business, increased foreclosure starts, and new sales. The company also significantly strengthened its balance sheet by completing a debt exchange and maturity extension transaction in February 2025, reducing interest expense.
Service revenue increased by 10.8% year-over-year to $40.9 million, marking the highest quarterly service revenue since Q3 2021.
Adjusted EBITDA grew by 13.6% year-over-year to $5.3 million, the highest since Q3 2020.
The company completed a debt exchange transaction, reducing annual cash and payment-in-kind interest by approximately $18 million to $13 million.
Industrywide foreclosure initiations were 25% higher compared to the same period in 2024.
Altisource
Altisource
Forward Guidance
Altisource is focused on accelerating the growth of businesses with tailwinds, anticipating stronger revenue and Adjusted EBITDA growth if loan delinquencies, foreclosure starts, and sales increase.
Positive Outlook
- Focus on accelerating growth in businesses with tailwinds.
- Well-positioned to benefit from increased loan delinquencies, foreclosure starts, and sales.
- Debt exchange transaction reduces annual cash and payment-in-kind interest.
- Debt exchange transaction reduces annual GAAP interest expense.
- Debt exchange transaction extends maturity dates of senior secured debt.
Challenges Ahead
- Industrywide foreclosure sales were 2% lower for the three months ended March 31, 2025, compared to the same period in 2024.
- Industrywide mortgage origination volume decreased by 1% for the three months ended March 31, 2025, compared to the same period in 2024.
- Decline in purchase origination by 11%.
- Adjusted EBITDA loss in Corporate and Others increased by $0.9 million due to certain non-recurring benefits in Q1 2024.
- The company's financial projections and scenarios are subject to risks and uncertainties, and should not be unduly relied upon.
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Key Statistics
Market Cap
$126M
P/E Ratio
-9.68
Sector
Finance
Industry
Finance Or Rental Or Leasing
52-Week High
$14.8
52-Week Low
$3.87
Adjusted EBITDA
$5.26M
Adjusted Operating Income
$5.2M
Gross Profit Margin
33%
Adjusted EBITDA Margin
13%
Net Debt
$142M