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Altisource Portfolio Solutions (ASPS)
NASDAQ:ASPS
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Altisource Portfolio Solutions SA
(NASDAQ:ASPS)
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Rating:45Neutral
Price Target:
$7.00
▼(-24.73% Downside)
The score is held down primarily by stressed financial fundamentals (negative equity, leverage, and negative cash flow) and weak technical trend signals. The latest earnings call provides some offset with improving results and pipeline commentary, while valuation is difficult to assess due to a negative P/E and no dividend support.
Positive Factors
Revenue Growth
The 11% growth in service revenue indicates strong demand for Altisource's offerings, suggesting a robust market position and potential for sustained growth.
Debt Reduction
Reducing long-term debt by over $60 million enhances financial stability and reduces interest expenses, improving cash flow and balance sheet health.
Financial Restructuring
The financial restructuring strengthens Altisource's balance sheet, positioning the company for sustainable long-term growth and value creation.
Negative Factors
High Leverage
High leverage and negative equity indicate financial instability, posing risks to long-term viability and limiting strategic flexibility.
Negative Cash Flows
Negative cash flows highlight liquidity constraints, potentially affecting the company's ability to invest in growth and meet financial obligations.
Profitability Challenges
Ongoing profitability challenges with negative net income and low margins threaten Altisource's ability to generate sustainable earnings.
Altisource Portfolio Solutions SA (ASPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.83M
Dividend YieldN/A
Average Volume (3M)17.89K
Price to Earnings (P/E)―
Beta (1Y)-0.96
Revenue Growth7.80%
EPS Growth83.33%
CountryUS
Employees1,160
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding10,993,549
10 Day Avg. Volume26,843
30 Day Avg. Volume17,892
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-0.95
Price to Sales (P/S)0.94
P/FCF Ratio-29.85
Enterprise Value/Market Cap3.78
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit5.87
Enterprise Value/Ebitda24.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Altisource Portfolio Solutions SA Business Overview & Revenue Model
Company DescriptionAltisource Portfolio Solutions SA (ASPS) is a Luxembourg-based company that offers a wide range of services and technology products for the real estate and mortgage industries. The company's core offerings include asset management, origination, and default services, which are designed to enhance the efficiency and effectiveness of real estate operations and mortgage servicing. Altisource's solutions are utilized by mortgage servicers, real estate investors, and financial institutions to streamline processes, reduce costs, and manage risk in the management and disposition of real estate assets.
How the Company Makes MoneyAltisource Portfolio Solutions generates revenue primarily through service fees and technology solutions provided to its clients in the real estate and mortgage sectors. The company's revenue streams include mortgage and real estate services, such as property valuation, asset management, and foreclosure services. Additionally, Altisource earns income from its technology platforms, which support mortgage originations and servicing operations. Key partnerships with financial institutions and real estate companies, as well as a diversified client base, contribute significantly to its earnings. The company's focus on efficiency improvements and cost reductions in real estate transactions allows it to maintain steady revenue streams from ongoing service contracts and technology subscriptions.
Altisource Portfolio Solutions SA Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The call highlighted positive growth in service revenue, improved financial metrics, and a strong sales pipeline, particularly in the Origination segment. However, there were challenges with declining adjusted EBITDA margins, a corporate segment loss, and a weakening real estate market. Despite these challenges, the positive aspects seem to outweigh the negatives.Q3-2025 Updates
Positive Updates
Service Revenue Growth
Total company service revenue grew by 4% to $39.7 million compared to the third quarter of last year.
Improved Financial Metrics
Pre-tax loss improved by $6.8 million to $1.7 million compared to a pretax loss of $8.5 million in the same quarter last year.
Increased Operating Cash Flow
Operating cash flow improved by $2.3 million compared to last year.
Growth in Origination Segment
Third quarter service revenue of $8.5 million was 9% higher than the third quarter of 2024. New sales in the Origination segment could increase annualized third quarter service revenue by 33%.
Foreclosure and REO Asset Management Opportunities
Third quarter sales wins estimated to generate $3.2 million in annual service revenue, with a sales pipeline of $24.4 million in annual service revenue.
Negative Updates
Decline in Adjusted EBITDA Margins
Adjusted EBITDA margins in the Servicer and Real Estate segment declined to 32.1% from 32.5% due to revenue mix with higher growth in the lower-margin Renovation business.
Corporate Segment Loss
Third quarter 2025 Corporate adjusted EBITDA loss of $7.3 million was $100,000 higher than the third quarter of 2024.
Decline in Purchase Origination Volume
Purchase origination volume declined by 4% for the 9 months ended September 30, 2025, compared to the same period in 2024.
Weakening Real Estate Market
The real estate market is weakening, as demonstrated by higher for-sale inventory, extended sales timelines, and rising sale cancellation rates.
Company Guidance
During the Altisource Portfolio Solutions Third Quarter 2025 earnings call, the company reported several positive metrics, including a 4% increase in service revenue to $39.7 million, primarily driven by growth in the Renovation, Lenders One, Foreclosure Trustee, Granite Construction Risk Management, and Field Services businesses. Adjusted EBITDA for business segments reached $10.9 million, reflecting modest year-over-year growth, while the Corporate segment reported an adjusted EBITDA loss of $7.3 million. The company's pre-tax loss improved by $6.8 million to $1.7 million compared to the previous year, attributed to reduced interest expenses. Operating cash flow saw an enhancement of $2.3 million, ending the quarter with $28.6 million in unrestricted cash. The Servicer and Real Estate segment's revenue rose by 3% to $31.2 million, and the Origination segment's revenue increased by 9% to $8.5 million, with a significant sales pipeline indicating strong future growth. The company also highlighted its strategic focus on businesses with growth potential, such as Renovation and Lenders One, while emphasizing the countercyclical nature of certain segments amid a changing market environment.Altisource Portfolio Solutions SA Financial Statement Overview
Summary
Operational momentum is improving (TTM revenue +81.8% and profitability better versus prior years), but financial risk remains high with negative equity (~-$104M), meaningful debt (~$195M), and still-negative TTM operating/free cash flow (~-$6.1M).Income Statement
TTM (Trailing-Twelve-Months) revenue rebounded sharply (+81.8%) and profitability improved materially versus prior years, with positive operating profit and a solid gross margin (~29.6%). However, the bottom line remains essentially break-even in TTM (net margin ~0.1%), and the business has a recent history of sizable annual losses (e.g., 2024 net loss with a -22.3% net margin). Overall, momentum is improving, but earnings quality and consistency are still weak.Balance Sheet
The balance sheet is stressed by persistently negative equity (TTM equity around -$104M) alongside a large debt load (TTM total debt about $195M). Negative equity meaningfully limits financial flexibility and raises refinancing/solvency risk, even though total debt has come down from 2024 levels. Overall leverage remains a key overhang.Cash Flow
Cash generation remains a clear weakness: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (roughly -$6.1M each), and free cash flow deterioration is significant versus the prior period (TTM free cash flow growth about -27.7%). While the accounting loss has narrowed, the company is still not consistently converting operations into cash, which pressures liquidity and increases dependence on external funding.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 169.65M | 160.13M | 145.07M | 153.12M | 178.45M | 365.55M |
| Gross Profit | 50.14M | 49.53M | 29.65M | 21.82M | 7.09M | 60.35M |
| EBITDA | 12.13M | 13.62M | -6.90M | -19.63M | 51.83M | -121.00K |
| Net Income | 73.00K | -35.64M | -56.29M | -53.42M | 11.81M | -67.16M |
Balance Sheet | ||||||
| Total Assets | 139.91M | 143.61M | 154.86M | 195.00M | 257.81M | 265.69M |
| Cash, Cash Equivalents and Short-Term Investments | 28.60M | 29.81M | 32.52M | 51.02M | 98.13M | 58.26M |
| Total Debt | 194.83M | 233.86M | 219.13M | 250.96M | 251.56M | 262.55M |
| Total Liabilities | 243.38M | 300.32M | 279.91M | 313.88M | 326.68M | 348.24M |
| Stockholders Equity | -104.21M | -157.38M | -125.67M | -119.65M | -70.14M | -83.77M |
Cash Flow | ||||||
| Free Cash Flow | -6.09M | -5.03M | -21.83M | -45.75M | -61.78M | -25.11M |
| Operating Cash Flow | -6.06M | -5.03M | -21.83M | -44.89M | -60.41M | -22.40M |
| Investing Cash Flow | 1.93M | 2.25M | 0.00 | -767.00K | 102.76M | 47.22M |
| Financing Cash Flow | 5.47M | 55.00K | 2.98M | -2.22M | -2.30M | -49.31M |
Altisource Portfolio Solutions SA Technical Analysis
Neutral
9.30
Price Trends
8.18
Negative
9.92
Negative
9.26
Negative
Market Momentum
-0.38
Negative
44.71
Neutral
55.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPS, the sentiment is Neutral. The current price of 9.3 is above the 20-day moving average (MA) of 6.72, above the 50-day MA of 8.18, and above the 200-day MA of 9.26, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASPS.
Altisource Portfolio Solutions SA Risk Analysis
Altisource Portfolio Solutions SA disclosed 49 risk factors in its most recent earnings report. Altisource Portfolio Solutions SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Altisource Portfolio Solutions SA Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $249.84M | 12.48 | 2.87% | ― | -6.06% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $219.38M | -3.53 | -41.11% | ― | 6.62% | 30.94% | |
51 Neutral | $42.11M | -1.61 | -43.75% | ― | 32.78% | 36.50% | |
46 Neutral | $56.03M | -0.78 | -104.99% | ― | -36.25% | 11.92% | |
45 Neutral | $77.83M | -3.70 | ― | ― | 7.80% | 83.33% | |
44 Neutral | $21.95M | ― | ― | ― | ― | ― |
* Real Estate Sector Average
ASPS
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.