Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q4 2024 Earnings Presentation
37 slides from Altisource Portfolio Solutions's earnings presentation, Mar 13, 2025
Slide 1: Fourth Quarter 2024 Supplementary Information
ALTISOURCE FOURTH QUARTER 2024 SUPPLEMENTARY INFORMATION MARCH 13, 2025
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that involve a number of risks and related referrals following the expiration of foreclosure and eviction moratoriums and uncertainties. These forward-looking statements include all statements that are not forbearance programs, and any
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES Adjusted operating (loss) income, pretax loss attributable to Altisource, adjusted pretax loss It is management’s intent to provide non-GAAP financial information to enhance the attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss understa
Slide 4: 2024 Company Overview
2024 COMPANY OVERVIEW 1 • Continued to improve our financial results and win new business • Grew Service revenue by 10% and Adjusted EBITDA2 by 18.3 million, compared to 2023 • Executed an exchange and maturity extension with our lenders in February 2025, significantly strengthening our balance shee
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Service Revenue Business Segments1 Adjusted EBITDA2 2024 Highlights (vs. 2023) • Generated $150 million of Service revenue, a $170.6 $150.4 10% increase, driven by growth in both Business $144.5 $136.6 Segments1 $107.8 • Adjusted EBITDA2 of $17.4 million represents an $119.9 $4
Slide 6: Q4 Highlights - Strong Finish to 2024
Q4 HIGHLIGHTS - STRONG FINISH TO 2024 • Q4 2024 Service revenue of $38.4 million marked the highest level since Q3 2021 • Q4 2024 Adjusted EBITDA1 of $4.7 million was the strongest quarter since Q3 2020 • Compared to Q4 2023: − Service revenue grew by $6.2 million, or 19% − Adjusted EBITDA1 grew by
Slide 7: Term Loan Exchange Transactions
TERM LOAN EXCHANGE TRANSACTIONS 1 • On February 19, 2025, the Company executed and closed an exchange transaction (the “Term Loan Exchange Transaction”) with 100% of lenders under the Company’s senior secured term loans whereby the lenders exchanged the Company’s senior secured term loans with an ou
Slide 8: Summary of New Facility
SUMMARY OF NEW FACILITY Exchange First Lien Loans • $110 million Interest Rate on Exchange First Lien • SOFR + 6.50% (3.50% SOFR Floor), payable quarterly in cash Loans Exit Fee on Exchange First Lien Loans • $50 million payable on Maturity Date1 Exit Fee Interest Rate • None Maturity Date • April 3
Slide 9: Summary of Super Senior Facility
SUMMARY OF SUPER SENIOR FACILITY Super Senior Credit Facility • $12.5 million Use of Proceeds • Transaction costs and general corporate purposes Original issue Discount • 10.0% Interest Rate on Super Senior Credit • SOFR + 6.50% (3.50% SOFR Floor), payable quarterly in cash Facility Maturity Date •
Slide 10: Servicer and Real Estate Segment
SERVICER AND REAL ESTATE SEGMENT Segment Service Revenue Segment Financial Performance • 2024 Service revenue of $119.9 million increased by 11% over 2023 from the launch and growth of our $119.9 renovation business and sales wins, despite a market- wide 6% decline in foreclosure starts and 14% decl
Slide 11: Servicer and Real Estate Sales Pipeline and Wins
SERVICER AND REAL ESTATE SALES PIPELINE AND WINS ($ millions) $41.7 Attractive Sales $38.6 $30.1 $29.4 $25.6 $26.7 $23.2 Pipeline1 $20.3 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 FY 2023 FY 2024 Strong Sales $25.9 Wins $58.4 Wins $
Slide 12: Origination Segment
ORIGINATION SEGMENT Segment Service Revenue Segment Financial Performance • 2024 Service revenue grew by 6%, to $30.4 million, compared to 2023 $58.0 • 2024 Adjusted EBITDA1 improved by $5.4 million, to $2.5 $32.4 $30.4 million, compared to 2023 $28.8 • Service revenue improved from revenue growth i
Slide 13: Origination Sales Pipeline and Wins
ORIGINATION SALES PIPELINE AND WINS ($ millions) $24.6 $20.8 $20.4 Attractive Sales $18.0 $14.7 $13.9 $12.6 $13.2 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 FY 2023 FY 2024 Strong Sales Wins $10.3 $4.9 Wins $12.6 $4.2 Wins
Slide 14: Corporate and Others
CORPORATE AND OTHERS Corporate and Others Adjusted EBITDA1 Loss Corporate Financial Performance • Corporate and Others includes costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facili
Slide 15: Business Environment
BUSINESS ENVIRONMENT Default Market • In response to the COVID-19 pandemic, borrowers were provided various relief measures including foreclosure and eviction moratoriums, forbearance programs and loss mitigation measures − These relief measures largely expired at the end of 2021; however, the marke
Slide 16: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE 1 We believe our sales wins, improved margins and corporate cost structure position us for another year of Service revenue and Adjusted EBITDA2 growth and, for the first time since 2019, positive operating cash flow • Market expectations Service Revenue Adjusted EBITDA2 − Rou
Slide 17: Conclusion
CONCLUSION • Positioned to diversify our revenue base and ramp business we have won while maintaining cost discipline and significantly reducing corporate interest expense • Focused on accelerating the growth of certain of our businesses that we believe have tailwinds • When the default market retur
Slide 18: Appendix
APPENDIX FOURTH C O N S O L I DAT E D RETURN TO A QUARTER 2024 SALES O P E R AT I N G HISTORICAL NON-GAAP INVESTOR FINANCIAL PIPELINE AND METRICS D E FA U LT MEASURES R E L AT I O N S R E S U LT S WINS ENVIRONMENT I N F O R M AT I O N 19 21 22 25 27 36 © 2025 Altisource All Rights Reserved. 18
Slide 19: Fourth Quarter 2024 Financial Results
FOURTH QUARTER 2024 FINANCIAL RESULTS $ millions (except per share data) Q4 Q4 Vs. Full Year Full Year Vs. 2023 2024 Q4 2023 2023 2024 FY 2023 Service revenue $ 32.2 $ 38.5 19% $ 136.6 $ 150.4 10% Revenue 34.2 41.0 20% 145.1 160.1 10% Gross profit 8.4 12.4 48% 29.7 49.5 67% (Loss) income from operat
Slide 20: Progress with Select Customer Wins
PROGRESS WITH SELECT 1 CUSTOMER WINS Agreements Anticipated Began Est. Stabilized Notified of Agreements in "Go Live" receiving revenue Win Customer description Service executed negotiation Date referrals in opportunity1 Large Mortgage and Real Q4'23 Renovations √ Q2'24 Large Estate Owner Q4'23 Orig
Slide 21: Consolidated Sales Pipeline and Wins
CONSOLIDATED SALES PIPELINE AND WINS ($ millions) $62.4 $63.2 Attractive Sales $45.9 $48.2 $40.7 $42.5 $35.1 $35.8 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 FY 2023 FY 2024 $28.3 Strong Sales Wins $68.8 Wins $38.4 $17.8 $
Slide 22: Operating Metrics
OPERATING METRICS Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Default Related Services Onity1 Serviced Forward Loan Portfolio2: Service revenue3 per delinquent loan4 per quarter Non-GSE $ 158 $ 210 $ 244 $ 260 $ 241 $ 288 $ 246 $ 275 $ 262 $ 316 $ 331 $ 328 $ 308 GS
Slide 23: Operating Metrics
OPERATING METRICS Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Hubzu1: Service revenue (in millions)2 $ 5.8 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 $ 7.1 $ 7.1 $ 5.8 $ 7.1 $ 7.3 $ 6.4 $ 6.0 Number of homes sold on Hubzu: Onity serviced portfolios3 510 653 772 645 579 599 567 5
Slide 24: Hubzu Inventory
HUBZU INVENTORY Ending Inventory (in 000’s) 6.9 6.2 6.3 6.2 6.3 5.9 6.0 6.0 5.8 6.1 6.0 5.8 5.7 5.9 5.6 4.5 4.4 3.4 3.6 3.6 4.1 3.5 3.5 3.6 3.6 3.7 3.9 4.2 3.4 3.5 3.3 2.4 2.4 2.5 2.6 2.7 2.7 2.4 2.4 2.4 2.4 2.1 2.0 2.0 2.2 2.2 2.3 2.3 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'2
Slide 25: Return to a Historical Default Environment
RETURN TO A HISTORICAL DEFAULT ENVIRONMENT Foreclosure Starts and Timing Shaded area • In response to the COVID-19 pandemic, borrowers were provided represents period of various relief measures including foreclosure and eviction Foreclosure Starts borrower relief % moratoriums, forbearance programs
Slide 26: Return to a Historical Default Environment
RETURN TO A HISTORICAL DEFAULT ENVIRONMENT Foreclosures that Convert to Foreclosure Sales • Foreclosure sales remain significantly lower than pre-pandemic and Shaded area represents period of 2023 levels Foreclosure borrower relief % Sales measures − 2024 Foreclosure sales were 53% lower than 2019 a
Slide 27: Non-GAAP Measures
NON-GAAP MEASURES Adjusted operating (loss) income, pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss per share, EBITDA, Adjusted EBITDA and Segment Adjusted EBITDA are non-GAAP measures used b
Slide 28: Non-GAAP Measures
NON-GAAP MEASURES • Adjusted diluted loss per share is calculated by dividing net loss attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), loss on sale of business (net of tax), cost of cost savings initiatives
Slide 29: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q4 2023 Q4 2024 FY 2023 FY 2024 ($ in millions except per share data) (Loss) income from operations $ (2.8) $ 0.6 $ (16.8) $ 3.2 Intangible asset amortization expense 1.3 1.3 5.2 5.1 Share-based compensation expense 1.2 0.8 5.1 4.7 Loss on sale of business - 0.7 - 0.
Slide 30: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q4 2023 Q4 2024 FY 2023 FY 2024 ($ in millions except per share data) Net loss attributable to Altisource $ (13.2) $ (8.8) $ (56.3) $ (35.6) Intangible asset amortization expense, net of tax 1.3 1.3 5.2 5.1 Share-based compensation expense, net of tax 1.0 0.7 4.4 4.1
Slide 31: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q4 2023 Q4 2024 FY 2023 FY 2024 ($ in millions except per share data) Calculation of the impact of intangible asset amortization expense, net of tax Intangible asset amortization expense $ 1.3 $ 1.3 $ 5.2 $ 5.1 Tax benefit from intangible asset amortization - - (0.0)
Slide 32: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q4 2023 Q4 2024 FY 2023 FY 2024 ($ in millions except per share data) Calculation of the impact of cost of cost savings initiatives and other, net of tax Cost of cost savings initiatives and other $ 0.1 $ 0.9 $ 2.0 $ 1.1 Tax (benefit) provision from cost of cost savi
Slide 33: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES 2025 2025 Reconciliation Q4 2023 Q4 2024 FY 2021 FY 2022 FY 2023 FY 2024 Guidance Guidance ($ in millions except per share data) Low High Net loss attributable to Altisource $ (13.2) $ (8.8) $ 11.8 $ (53.4) $ (56.3) $ (35.6) $ (7.0) $ (3.0) Income tax provision 1.1 0.3 3.2 5.3 3.7
Slide 34: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation FY 2021 FY 2022 FY 2023 FY 2024 ($ in millions except per share data) Servicer and Real Estate: Income before income taxes and non-controlling interests $ 13.7 $ 26.5 $ 32.1 $ 38.0 1 Interest expense, net of interest income - - - (0.1) Depreciation and amortization 1
Slide 35: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation FY 2021 FY 2022 FY 2023 hn FY 2024 ($ in millions except per share data) Corporate and Others: Loss before income taxes and non-controlling interests $ (3.7) $ (66.6) $ (78.4) $ (71.0) Non-controlling interests 1.0 - - - 1 Interest expense, net of interest income 14.
Slide 36: Investor Relations Information
INVESTOR RELATIONS INFORMATION Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of ABOUT ALTISOURCE innovative services and technologies, Altisource helps solve the demands
Slide 37: Altisource - Your One Source
a oN Altisource YOUR ONE SOURCE™
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