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Altisource Portfolio Solutions SA (ASPS)
NASDAQ:ASPS
US Market

Altisource Portfolio Solutions SA (ASPS) AI Stock Analysis

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Altisource Portfolio Solutions SA

(NASDAQ:ASPS)

Rating:50Neutral
Price Target:
Altisource faces significant financial challenges with persistent losses and high leverage, weighing heavily on the stock's overall score. Technical indicators show some upward momentum, but valuation metrics are unfavorable. Positive corporate actions and a generally optimistic earnings call outlook provide some support, but the risks outweigh the strengths.

Altisource Portfolio Solutions SA (ASPS) vs. SPDR S&P 500 ETF (SPY)

Altisource Portfolio Solutions SA Business Overview & Revenue Model

Company DescriptionAltisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States, India, Luxembourg, Uruguay, and internationally. It provides property preservation and inspection services, payment management technologies, and a vendor management oversight software-as-a-service (SaaS) platform. The company also offers Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; and Equator, a SaaS-based technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes. In addition, it provides mortgage loan fulfillment, certification and certification insurance services, technologies, title insurance agent, settlement, real estate valuation services, residential and commercial construction inspection and risk mitigation, foreclosure trustee, and commercial loan servicing technology services. Further, the company operates TrelixTM Connect, Vendorly, RentRange, REALSynergy, Lenders One Loan Automation, and other platform solutions. It serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, originators, correspondent lenders, and mortgage bankers. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.
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:May 01, 2025
(Q1-2025)
|
% Change Since: -25.37%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant improvements in service revenue and adjusted EBITDA, alongside strategic debt reduction and strong performance in key segments. However, challenges remain in the origination market and corporate segment losses.
Q1-2025 Updates
Positive Updates
Service Revenue Growth
Total company service revenue grew by 11% to $40.9 million compared to the first quarter of 2024.
Adjusted EBITDA Increase
Adjusted EBITDA increased by 14% to $5.3 million, outpacing service revenue growth due to scale benefits and favorable revenue mix.
Balance Sheet Strengthening
Closed the exchange and maturity extension transaction, reducing long-term debt by over $60 million and interest expense by approximately $18 million per year.
Servicer and Real Estate Segment Performance
Service revenue in this segment increased by 13% to $32.9 million, with adjusted EBITDA rising by 15% to $12 million.
New Business Wins
Estimated $4.7 million in annual service revenue from new business wins in the Servicer and Real Estate segment.
Negative Updates
Corporate Segment Adjusted EBITDA Loss
The corporate segment's adjusted EBITDA loss increased by $900,000 or 15% to $7.2 million, primarily due to non-recurring benefits in the first quarter of 2024.
Origination Market Challenges
Origination market continues to face difficulties, with mortgage origination volume flat compared to the first quarter of 2024.
Foreclosure Sales Decline
Foreclosure sales for the first quarter of 2025 declined by 2% compared to last year and are 53% lower than the same period in 2019.
Company Guidance
During the Altisource Portfolio Solutions First Quarter 2025 earnings call, the company reported strong financial performance, with service revenue growing 11% year-over-year to $40.9 million and adjusted EBITDA increasing by 14% to $5.3 million. The company highlighted the successful ramp-up of its renovation business and stronger foreclosure starts as key drivers of this growth. Additionally, the company completed a significant financial transaction that reduced long-term debt by over $60 million and decreased annual interest expenses by approximately $18 million. The Servicer and Real Estate segment saw a 13% increase in service revenue to $32.9 million and a 15% increase in adjusted EBITDA to $12 million, while the Origination segment reported a modest 3% growth in service revenue to $8 million. The company is optimistic about future growth potential, particularly in its countercyclical businesses, amid potential economic pressures that could increase mortgage delinquencies and foreclosures.

Altisource Portfolio Solutions SA Financial Statement Overview

Summary
Altisource's financial performance is weak, characterized by losses and high leverage. The income statement shows negative net income with low margins, and the balance sheet highlights significant solvency issues due to negative equity. Although there are slight improvements in cash flow, the overall financial health poses substantial risks.
Income Statement
45
Neutral
Altisource's income statement reveals significant challenges. The company shows a negative net income, indicating losses. Despite some revenue growth from the previous year, margins remain weak with negative net profit and low gross profit margins. The EBIT and EBITDA margins are also low, pointing to ongoing profitability issues.
Balance Sheet
30
Negative
The balance sheet reflects a high risk profile with negative stockholders' equity, signaling potential solvency issues. The company is heavily leveraged with a high debt-to-equity ratio due to negative equity. There is a lack of financial stability, which poses a significant risk to stakeholders.
Cash Flow
40
Negative
Cash flow analysis indicates struggles with negative operating and free cash flows, though there is slight improvement compared to previous periods. The operating cash flow to net income ratio is unfavorable, and the free cash flow to net income ratio is also negative, highlighting liquidity constraints.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
166.33M160.13M145.07M153.12M178.45M365.55M
Gross Profit
49.28M49.53M29.65M21.82M7.09M60.35M
EBIT
7.02M3.22M-16.77M-32.94M-59.96M-32.01M
EBITDA
10.21M11.52M-6.90M-19.63M-37.97M-121.00K
Net Income Common Stockholders
-31.78M-35.64M-56.29M-52.83M11.81M-66.31M
Balance SheetCash, Cash Equivalents and Short-Term Investments
30.82M29.81M32.52M51.02M98.13M58.26M
Total Assets
145.66M143.61M154.86M195.00M257.81M265.69M
Total Debt
197.95M233.86M219.13M245.23M243.64M242.66M
Net Debt
167.13M204.05M186.61M194.21M145.50M184.39M
Total Liabilities
264.69M300.32M279.91M313.88M326.68M348.24M
Stockholders Equity
-119.77M-157.38M-125.67M-119.65M-70.14M-83.77M
Cash FlowFree Cash Flow
-7.97M-5.03M-21.83M-45.75M-61.78M-25.11M
Operating Cash Flow
-7.76M-5.03M-21.83M-44.89M-60.41M-22.40M
Investing Cash Flow
2.20M2.25M0.00-767.00K102.76M47.22M
Financing Cash Flow
6.75M55.00K2.98M-2.22M-2.30M-49.31M

Altisource Portfolio Solutions SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.09
Price Trends
50DMA
6.61
Negative
100DMA
6.40
Negative
200DMA
7.15
Negative
Market Momentum
MACD
-0.23
Positive
RSI
47.14
Neutral
STOCH
49.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPS, the sentiment is Negative. The current price of 6.09 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 6.61, and below the 200-day MA of 7.15, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 49.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$880.47M-52.95%83.50%8.45%
65
Neutral
$236.04M-23.11%11.24%38.70%
61
Neutral
$303.59M17.492.01%-4.61%
61
Neutral
$2.82B10.840.42%8439.00%5.74%-20.95%
50
Neutral
$67.71M26.79%13.06%54.09%
48
Neutral
$27.27M-97.62%-19.80%21.22%
46
Neutral
$435.01M-47.67%2.36%-23.60%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASPS
Altisource Portfolio Solutions SA
6.34
-9.10
-58.94%
RMAX
Re/Max Holdings
7.58
-0.27
-3.44%
OPEN
Opendoor Technologies
0.63
-1.65
-72.37%
OPAD
Offerpad Solutions
1.03
-3.95
-79.32%
REAX
Real Brokerage
4.26
-0.28
-6.17%
DOUG
Douglas Elliman Inc.
2.61
1.51
137.27%

Altisource Portfolio Solutions SA Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Altisource Announces Stakeholder Warrants Distribution Date
Neutral
Apr 2, 2025

On March 31, 2025, Altisource Portfolio Solutions announced the distribution date for its Stakeholder Warrants as April 3, 2025. This distribution, which includes both Cash Exercise and Net Settle Stakeholder Warrants, is contingent upon shareholder approval and other conditions, all of which have been satisfied. The warrants will allow stakeholders to purchase shares of common stock under specific terms and are set to be listed on the Nasdaq Global Select Market, pending approval.

Executive/Board ChangesFinancial Disclosures
Altisource Approves 2025 Incentive Plan with New Metrics
Neutral
Feb 28, 2025

On February 25, 2025, Altisource Portfolio Solutions S.A.’s Compensation Committee approved the 2024 Annual Incentive Plan, which included incentive compensation awards for its executive officers. The plan, initially adopted in December 2023, set target bonuses based on performance metrics such as Consolidated Service Revenue and Adjusted EBITDA Budget Objectives. The achievements under the 2024 AIP were partially met, leading to a discretionary decision by the Committee to pay the incentives entirely in Restricted Stock Units (RSUs). Notably, CEO William B. Shepro voluntarily reduced his RSUs to benefit other employees, acknowledging their contributions to significant company transactions. Additionally, the 2025 Annual Incentive Plan was adopted, outlining new performance metrics and target bonuses for the upcoming year.

Private Placements and FinancingBusiness Operations and Strategy
Altisource Completes Major Financial Restructuring in 2025
Positive
Feb 25, 2025

On February 19, 2025, Altisource Portfolio Solutions S.A. completed a significant financial restructuring by closing its Term Loan Exchange Transactions and entering a $12.5 million Super Senior Facility. This exchange involved converting $232.8 million of senior secured term loans into a new $160 million first lien loan and issuing approximately 58.2 million common shares. The restructuring aims to strengthen Altisource’s balance sheet, positioning the company for sustainable long-term growth and value creation.

Shareholder MeetingsBusiness Operations and Strategy
Altisource Approves Key Amendments to Equity Plans
Positive
Feb 18, 2025

On February 18, 2025, Altisource Portfolio Solutions S.A. held two significant shareholder meetings where key amendments to their equity plans and share structures were approved. These decisions, including increasing the number of shares reserved under their 2009 Equity Incentive Plan and adjusting their share capital and authorization limits, aim to enhance the company’s flexibility in managing its stock and capital structure, potentially impacting shareholder value and market operations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.