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Dec 31, 2024
Altisource Q4 2024 Earnings Report
Altisource reported a strong Q4 2024 with the highest service revenue since Q3 2021 and a significant improvement in adjusted EBITDA.
Key Takeaways
Altisource delivered a strong Q4 2024, with service revenue rising by 19% year-over-year to $38.4 million and adjusted EBITDA increasing significantly to $4.7 million. The company improved operational efficiency, strengthened its balance sheet through debt restructuring, and ended the quarter with $29.8 million in cash and cash equivalents.
Service revenue increased by 19% YoY to $38.4 million, marking the highest quarterly service revenue since Q3 2021.
Adjusted EBITDA grew to $4.7 million, the highest level since Q3 2020.
Operating income turned positive at $0.6 million compared to a loss in the previous year.
The company closed a debt exchange transaction, reducing outstanding debt and annual interest expenses.
Altisource
Altisource
Forward Guidance
Altisource expects continued revenue growth and positive operating cash flow in 2025, supported by new business wins and cost control initiatives.
Positive Outlook
- Projected 16% growth in service revenue for 2025.
- Expected 18% growth in adjusted EBITDA.
- Diversification of revenue base with new business wins.
- Lower corporate interest expense due to debt restructuring.
- Forecasted positive operating cash flow.
Challenges Ahead
- Market headwinds in both business segments remain a challenge.
- Foreclosure initiations industry-wide were down 6% in 2024.
- Foreclosure sales were 14% lower than the previous year.
- Potential volatility in mortgage origination trends.
- Risk of macroeconomic factors affecting financial performance.