Altisource Portfolio Solutions (ASPS) Q1 2025 earnings summary

Executive summary

• Service revenue grew 11% year-over-year to $40.9 million in Q1 2025, the highest since Q3 2021, driven by foreclosure activity, renovation business ramp, and sales wins.

• Adjusted EBITDA rose 14% to $5.3 million, with margin improving to 12.9%, supported by both business segments.

• Net loss attributable to Altisource narrowed to $(5.3) million from $(9.2) million year-over-year; adjusted net loss improved to $(0.1) million.

• Major debt restructuring in February 2025 reduced senior secured term loans from $232.8 million to $160 million, issued 58.2 million shares to lenders, and reduced annual interest expense by $23 million.

• Ended the quarter with $30.8 million in unrestricted cash, the highest since Q3 2021.

Financial highlights

• Total revenue increased 10% year-over-year to $43.4 million; service revenue up 11% to $40.9 million.

• Adjusted EBITDA margin improved to 12.9% of service revenue; gross profit margin held steady at 33%.

• Operating income improved to $3.2 million (8% of service revenue) from a loss of $0.5 million prior year.

• GAAP interest expense dropped to $4.9 million from $9.5 million year-over-year.

• Diluted loss per share improved to $(0.09) from $(0.33) year-over-year.

Outlook and guidance

• Management expects lower interest expense and growth in renovation and default-related businesses to support improved operating cash flow.

• Positioned to benefit from potential increases in loan delinquencies and foreclosure activity.

• Focused on accelerating growth in businesses with tailwinds and maintaining cost discipline.