Altisource Portfolio S A : Q1 2025 Earnings Slides

Published: 2025-05-01 07:49:07 ET ASPS

Published on 05/01/2025 at 07:49

ALTISOURCE PORTFOLIO SOLUTIONS

FIRST QUARTER 2025 SUPPLEMENTARY INFORMATION

NON-GAAP MEASURES

Adjusted operating income, pretax loss attributable to Altisource, adjusted pretax (loss) income attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss per share, earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, and Segment Adjusted EBITDA, which are presented elsewhere in this presentation, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource's performance and do not purport to be alternatives to (loss) income from operations, loss before income taxes and non-controlling interests, net loss attributable to Altisource, and diluted loss per share as measures of Altisource's performance. We believe these measures are useful to management, existing shareholders, potential shareholders and other users of our financial information in evaluating operating profitability and cash flow generation more on the basis of continuing cost and cash flows as they exclude amortization expense related to acquisitions that occurred in prior periods and non-cash share-based compensation, as well as the effect of more significant non-operational items from earnings, and cash flows from operating activities. We believe these measures are also useful in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.

Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis.

It is management's intent to provide non-GAAP financial information to enhance the understanding of Altisource's GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. The non-GAAP financial information presented should not be unduly relied upon.

These non-GAAP measures are presented as supplemental information and reconciled to the appropriate GAAP measures in the Appendix.

FIRST QUARTER 2025 OVERVIEW

Continued to drive year-over-year and sequential Service revenue and Adjusted EBITDA1 growth

Grew Service revenue by 11% to $40.9 million and Adjusted EBITDA1 by 14% to $5.3 million, compared to Q1 2024

Closed an exchange and maturity extension transaction with our lenders, significantly strengthening our balance sheet and reducing interest expense

1 This is a non-GAAP measure defined and reconciled in the Appendix

FINANCIAL PERFORMANCE

$8.0

$7.0

$7.8

$31.4

$30.4

$29.0

$29.1

$32.9

$36.9 $36.9 $38.2 $38.4 $40.9

Generated $40.9 million of Service revenue, an 11% increase, driven by growth in both Business Segments1

Adjusted EBITDA2 of $5.3 million represents a 14% improvement, driven by:

− Business Segments1 Service revenue growth

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

-17.0%

($6.3)

-17.2%

($6.6)

-17.6%

($7.2)

-18.8%

($7.2)

-19.4%

($7.2)

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

29.5%

$10.9

31.3% 28.3% 29.6%

$11.4

$10.8

$11.6

30.5%

$12.5

Business Segments1Margin

$3.6 9.5%

11.9%

$4.4

12.3%

$4.7

12.6%

$4.6

12.9%

$5.3

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

− Higher Adjusted EBITDA2 margins in the Servicer and Real Estate segment

− Partially offset by an increase in the Corporate segment's Adjusted EBITDA2 loss

Business Segments1 generated $12.5 million of Adjusted EBITDA2 at 30.5% Adjusted EBITDA2 margins, representing a 14.5% or

$1.6 million improvement in Adjusted EBITDA2 and a 100-basis points margin improvement

Corporate Adjusted EBITDA2 loss increased by

$0.9 million, or 15%, to $7.2 million primarily

Note: Charts above present $ in millions and profitability measures as a % of Service revenue

1 Business Segments collectively refers to the Servicer and Real Estate segment and the Origination segment

2 This is a non-GAAP measure defined and reconciled in the Appendix

due to certain non-recurring benefits in Q1 2024 5

Disclaimer

Altisource Portfolio Solutions SA published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 11:48 UTC.