ALTISOURCE PORTFOLIO SOLUTIONS S.A.
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
ASPS$5.85+2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-24.
0001462418-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001462418-25-000075
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 188 previous paragraphs and 167 current paragraphs.
98 unchanged; 53 reworded; 15 added; 37 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
•Changes in residential mortgage delinquencies, foreclosure initiations and foreclosure sales could negatively effect demand for some of our services;
Current report
Default Related Mortgage Market
Current report
Serious delinquency rates, foreclosure initiations and foreclosure sales are low relative to historical levels. Additionally, foreclosure initiations and sales as a percentage of seriously delinquent loans for 2020 through 2024 are significantly lower than prior years. During 2020 and 2021, these percentages were significantly impacted by COVID-19 borrower relief measures, including foreclosure moratoriums and forbearance programs. These measures largely expired at the end of 2021. Beginning in 2022, we believe these percentages were impacted by servicer practices, home price appreciation, the interest rate environment, housing supply, the general state of the economy, and other factors. In 2021 and 2022, a low interest environment drove a high volume of refinance transactions and home prices appreciated significantly. Although interest rates began to increase in 2022, home prices remained high. With greater home equity from home price appreciation, we believe troubled borrowers have more options to avoid foreclosure.
Current report
•On February 19, 2025, Altisource Portfolio Solutions S.A and Altisource S.à r.l. (the “Borrower”) entered into agreements with 100% of the lenders under the SSTL (the “Lenders”). Under these agreements, the Lenders exchanged the senior secured term loans (“SSTL”) with an outstanding balance of $232.8 million for a $160.0 million New Facility and 58.2 million shares of common stock (the “Debt Exchange Shares”) (collectively, the “Debt Exchange Transaction”). The New Facility is comprised of a $110.0 million interest-bearing loan (the “New Debt”) and a $50.0 million non-interest-bearing exit fee. In connection with the Debt Exchange Transaction, the Company expensed $3.0 million relating to fees paid to advisors and others
Current report
Cost of revenue consists of the following:
Current report
We recognized cost of revenue of $30.1 million for the three months ended March 31, 2025, an 11% increase compared to the three months ended March 31, 2024. Outside fees and services increased primarily from higher revenue in both Segments. Compensation and benefits for the three months ended March 31, 2025 increased primarily due to higher annual incentive compensation accruals. Depreciation and amortization was lower from the completion of the depreciation periods of certain premises and equipment with only modest additions. In addition, changes in reimbursable expenses for the three months ended March 31, 2024 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.
Current report
Gross profit increased to $13.3 million, representing 33% of service revenue, for the three months ended March 31, 2025 compared to $12.3 million, representing 33% of service revenue, for the three months ended March 31, 2024. Gross profit as a percentage of service revenue for the three months ended March 31, 2025 was relatively flat compared to the three months ended March 31, 2024.
Current report
Cost of revenue for the three months ended March 31, 2025 of $6.7 million increased by 9% compared to the three months ended March 31, 2024. The increase in cost of revenue for the three months ended March 31, 2025 was primarily driven by higher outside fees and services from a change in revenue mix and higher compensation and benefits from an increase in headcount to support growth in the Trelix business.
Current report
Gross profit decreased to $1.6 million, representing 20% of service revenue, for the three months ended March 31, 2025 compared to $1.8 million, representing 23% of service revenue, for the three months ended March 31, 2024. Gross profit as a percentage of service revenue for the three months ended March 31, 2025 decreased from a change in revenue mix.
Current report
SG&A for the three months ended March 31, 2025 of $1.7 million decreased by 15% compared to the three months ended March 31, 2024. The decrease in SG&A for the three months ended March 31, 2025 is primarily due to lower other expenses from lower bad debt expense, partially offset by higher professional services from higher legal-related costs.
Current report
Loss from operations
Current report
Loss from operations was $(0.1) million, representing (1)% of service revenue, for the three months ended March 31, 2025 compared to $(0.1) million, representing (2)% of service revenue, for the three months ended March 31, 2024. The improvement in operating income as a percentage of service revenue for the three months ended March 31, 2025 is primarily from lower SG&A expenses, partially offset by lower gross profit margins.
Current report
(1) $158.6 million of the New Facility matures on April 30, 2030 and $1.4 million of the New Facility matures on January 15, 2029.
Current report
(2) The Super Senior Facility matures on February 19, 2029.
Current report
(4) Estimated future interest payments for the New Facility and the Super Senior Facility based on the three-month Secured Overnight Financing Rate (“SOFR”) interest rate as of March 31, 2025.
Removed paragraphs (37)
Previous report
•assumptions about our ability to improve margins and affect anticipated expense reductions in response to lower revenue due to the impacts of COVID-19 or other factors;
Previous report
•assumptions regarding the impacts of the COVID-19 pandemic and the timeliness and effectiveness of actions taken in response thereto;
Previous report
•the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums, forbearance programs and temporary governmental or servicer loss mitigation requirements, the timing of the expiration of such moratoriums, programs and requirements, and any other delays occasioned by government, investor or servicer actions;
Previous report
•the level of loan delinquencies and charge-offs;
Previous report
•the risks and uncertainties related to pandemics, epidemics or other force majeure events, including the COVID-19 pandemic, and associated impacts and the duration of such impacts on the economy, supply chain, transportation, movement of people, availability of vendors and demand for our products or services as well as increased costs, recommendations or restrictions imposed by governmental entities, changes in relevant business practices undertaken or imposed by our clients, vendors or regulators, impacts on contracts and client relationships and potential litigation exposure.
Previous report
COVID-19 Pandemic Impacts
Previous report
Actions taken by federal, state and local governments, GSEs and mortgage servicers in connection with the COVID-19 pandemic continue to have a profound impact on our business, our customers, and the industries in which we operate. Despite the expiration of certain such measures, we believe servicers are proceeding slowly with foreclosure initiations for borrowers in default and foreclosure initiations may not convert to foreclosure sales and REO at the same rate or pace as prior to the pandemic due to improved home equity and borrower relief options. The decline in foreclosure initiations and foreclosure sales throughout the pandemic, partially offset by the restart of the default market, significantly decreased default related referrals to Altisource and continue to negatively impact virtually all of Altisource’s default related services revenue.
Previous report
•Temporary delay in certain California foreclosures during the three months ended June 30, 2023 negatively impacted revenue in the Servicer and Real Estate segment
Previous report
•On February 14, 2023, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into Amendment No. 2 to the Credit Agreement. In connection with Amendment No. 2, the Company paid $3.4 million for the nine months ended September 30, 2023, to advisors and recorded these payments as other expense in the condensed consolidated statements of operations and comprehensive loss (no comparative amount for the nine months ended September 30, 2024)
Previous report
We recognized cost of revenue of $82.0 million for the nine months ended September 30, 2024, a 9% decrease compared to the nine months ended September 30, 2023 ($28.5 million for the third quarter of 2024, a 2% decrease compared to the third quarter of 2023). Compensation and benefits for the three and nine months ended September 30, 2024 decreased primarily due to efficiency initiatives and cost savings measures taken in 2023. Technology and telecommunications for the three and nine months ended September 30, 2024 decreased primarily due to lower overall headcount. Outside fees and services for the three and nine months ended September 30, 2024 increased primarily from higher revenue in the Solutions business within the Servicer and Real Estate segment partially offset by lower outside fees and services in the Origination segment from a change in revenue mix. In addition, changes in reimbursable expenses for the three and nine months ended September 30, 2024 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.
Previous report
Gross profit increased to $37.1 million, representing 33% of service revenue, for the nine months ended September 30, 2024 compared to $21.2 million, representing 20% of service revenue, for the nine months ended September 30, 2023 (increased to $12.1 million, representing 32% of service revenue, for the third quarter of 2024, compared to $7.2 million, representing 21% of service revenue, for the third quarter of 2023). Gross profit as a percentage of service revenue for the three and nine months ended September 30, 2024 increased compared to the three and nine months ended September 30, 2023 primarily due to margin expansion in both the Servicer and Real Estate segment and the Origination segment from efficiency initiatives and lower corporate costs as a percentage of revenue, partially offset by service revenue mix in the Servicer and Real Estate segment.
Previous report
SG&A expenses for the nine months ended September 30, 2024 of $34.5 million decreased by 2% compared to the nine months ended September 30, 2023 ($11.0 million for the third quarter of 2024, a 2% increase compared to the third quarter of 2023). The decrease for the nine months ended September 30, 2024 was primarily driven by lower compensation and benefits and occupancy related costs, partially offset by higher professional services. The increase for the three months ended September 30, 2024 was primarily driven by higher professional services, partially offset by lower compensation and benefits and occupancy related costs. Compensation and benefits and occupancy related costs for the three and nine months ended September 30, 2024 decreased from efficiency and cost reductions measures. Professional services for the three and nine months ended September 30, 2024 increased primarily due to accruals for potential settlements of certain legacy indemnity claims and estimated legal matters.
Previous report
Income from operations increased to $28.1 million, representing 32% of service revenue, for the nine months ended September 30, 2024 compared to $24.5 million, representing 30% of service revenue, for the nine months ended September 30, 2023 (increased to $8.8 million, representing 29% of service revenue, for the third quarter of 2024, compared to $8.4 million, representing 31% of service revenue for the third quarter of 2023). The increase in operating income as a percentage of service revenue for the nine months ended September 30, 2024 is primarily the result of higher gross profit margins, partially offset by higher SG&A expenses. The decrease in operating income as a percentage of service revenue for the three months ended September 30, 2024 is primarily the result of higher SG&A expenses.
Previous report
Cost of revenue for the nine months ended September 30, 2024 of $18.8 million decreased by 17% compared to the nine months ended September 30, 2023 ($6.3 million for the third quarter of 2024, a 12% decrease compared to the third quarter of 2023). The decrease in cost of revenue for the three and nine months ended September 30, 2024 was primarily driven by the prior year alignment of compensation and benefits with lower origination volume and lower outside fees and services from a change in revenue mix.
Previous report
Gross profit increased to $5.1 million, representing 22% of service revenue, for the nine months ended September 30, 2024 compared to $0.8 million, representing 3% of service revenue, for the nine months ended September 30, 2023 (increased to $1.7 million, representing 22% of service revenue, for the third quarter of 2024, compared to $0.4 million, representing 5% of service revenue for the third quarter of 2023). Gross profit as a percentage of service revenue for the three and nine months ended September 30, 2024 increased from efficiency initiatives, cost savings measures and price increase for certain services.
Previous report
Income (loss) from operations
Previous report
Senior Secured Term Loans
Previous report
In April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders (the “Credit Agreement”). Under the Credit Agreement, Altisource borrowed $412 million in the form of senior secured term loans (“SSTL”). Effective February 14, 2023, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. entered into Amendment No. 2 to the Credit Agreement (as amended by Amendment No. 2, the “Amended Credit Agreement”). Altisource Portfolio Solutions S.A. and its subsidiaries, subject to the applicable exclusions in the Amended Credit Agreement, are guarantors on the SSTL (collectively, the “Guarantors”). Effective June 1, 2023, the administrative agent and collateral agent of the Amended Credit Agreement changed to Wilmington Trust, N.A.
Previous report
The maturity date of the Amended Credit Agreement is April 30, 2025. Since Aggregate Paydowns under the Amended Credit Agreement were equal to or greater than $30 million, the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026 (subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date). Such extension is conditioned upon the Company’s payment of a 2% payment-in-kind extension fee on or before April 30, 2025.
Previous report
All amounts outstanding under the SSTL become due on the earlier of (i) the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Amended Credit Agreement; other capitalized terms, unless defined herein, are defined in the Amended Credit Agreement) or as otherwise provided in the Amended Credit Agreement upon the occurrence of any event of default. There are no mandatory repayments of the SSTL, except as set forth herein, until the April 30, 2025 maturity when the balance is due. If the maturity date is extended to April 30, 2026, the Company is required to make mandatory repayments of $5.2 million in the first quarter of 2026 with the remaining balance due at the April 2026 maturity.
Previous report
In addition to the scheduled principal payments, subject to certain exceptions, the SSTL is subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as from 50% of Consolidated Excess Cash Flow, as calculated in accordance with the provisions of the Amended Credit Agreement.
Previous report
Altisource may incur incremental indebtedness under the Amended Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $50 million, subject to certain conditions set forth in the Amended Credit Agreement. The lenders have no obligation to provide any incremental indebtedness.
Previous report
Through March 29, 2023, the SSTL’s interest rate was the Adjusted Eurodollar Rate plus 4.00%. Beginning March 30, 2023, the SSTL bears interest at rates based upon, at our option, the Secured Overnight Financing Rate (“SOFR”) or the Base Rate, as defined in the Amended Credit Agreement. SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 5.00% payable in cash plus a payable in kind (“PIK”) component. Base Rate-based term loans bear interest at a rate per annum equal to the Base Rate plus 4.00% payable in cash plus a PIK component. The PIK component of the interest rate was subject to adjustment based on the amount of Aggregate Paydowns. Since Aggregate Paydowns were $20 million in the first quarter of 2023 and an additional $10 million in the third quarter of 2023, the PIK component was 4.50% for the period March 30, 2023 through June 30, 2023 and 3.75% for periods thereafter. The interest rate as of September 30, 2024, including the PIK component, was 14.18%.
Previous report
If, as of the end of any calendar quarter, (i) the amount of unencumbered cash and cash equivalents of Altisource S.à r.l. and its direct and indirect subsidiaries on a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast as of the end of the immediately subsequent calendar quarter to be, less than $35 million, then up to 2.00% in interest otherwise payable in cash in the following quarter may be paid in kind at the Company’s election.
Previous report
The payment of all amounts owing by Altisource under the Amended Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions.
Previous report
The Amended Credit Agreement includes covenants that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur additional debt, pay dividends and repurchase shares of our common stock. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances. In the event we require additional liquidity, our ability to obtain it may be limited by the Amended Credit Agreement.
Previous report
As of September 30, 2024, the outstanding principal balance of the SSTL was $230.6 million.
Previous report
Revolver
Previous report
On June 22, 2021 Altisource S.à r.l, a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with a related party, STS Master Fund, Ltd. (“STS”) (the “Revolver”). STS is an investment fund managed by Deer Park. Deer Park owns approximately 16% of Altisource’s common stock as of September 30, 2024 and owns Altisource debt as a lender under the Amended Credit Agreement. An employee of Deer Park is a member of Altisource’s Board of Directors.
Previous report
The Revolver was amended effective February 14, 2023 (the “Amended Revolver”). Under the terms of the Amended Revolver, STS will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans at any time. The Amended Revolver provides Altisource the ability to borrow a maximum amount of $15.0 million. Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below.
Previous report
The maturity date of the Amended Revolver coincides with the maturity date of the SSTL under the Amended Credit Agreement, as it may be extended. The outstanding balance on the Amended Revolver is due and payable on such maturity date.
Previous report
Borrowings under the Amended Revolver bear interest of 10.00% per annum in cash and 3.00% per annum PIK and are payable quarterly on the last business day of each March, June, September and December. In connection with the Amended Revolver, Altisource is required to pay a usage fee equal to $0.75 million at the initial extension of credit pursuant to the Amended Revolver.
Previous report
Altisource’s obligations under the Amended Revolver are secured by a first-priority lien on substantially all of the assets of the Company, which lien will be pari passu with liens securing the SSTL under the Amended Credit Agreement.
Previous report
The Amended Revolver contains additional representations, warranties, covenants, terms and conditions customary for transactions of this type, that restrict or limit, among other things, our ability to use the proceeds of credit only for general corporate purposes.
Previous report
As of September 30, 2024, there was no outstanding debt under the Amended Revolver, and since amending the Revolver, the Company has not borrowed any amount under the Amended Revolver.
Previous report
(1) The outstanding balance of our SSTL as of September 30, 2024 is $230.6 million and is due on April 30, 2025. Since Aggregate Paydowns were equal to or greater than $30 million, the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026 (subject to a payment of a 2% payment-in-kind extension fee on or before April 30, 2025 and subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date). The table herein reflects a maturity of April 2025. The increase in outstanding balance is from the PIK component of our interest expense and is assumed to be paid in kind through the April 2025 maturity date.
Previous report
(3) Estimated future interest payments based on the SOFR interest rate as of September 30, 2024 and the April 30, 2025 maturity date. Based on the April 30, 2025 maturity date, no interest expense has been included beyond April 30, 2025.
Reworded paragraphs (53)
Previous wording
•assumptions about our ability to grow our business, including executing on our strategic initiatives;
Current wording
•assumptions about our ability to grow our business, including executing on our strategic initiatives and improve margins;
Previous wording
•technology incidents, data breaches and cybersecurity risks;
Current wording
•technology incidents, data breaches and cybersecurity risks; and
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•significant changes in tax regulations and interpretations in the countries, states and local jurisdictions in which we operate; and
Current wording
•significant changes in tax regulations and interpretations in the countries, states and local jurisdictions in which we operate.
Previous wording
Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”), short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single and multi-family rental data, analytics and rent-based valuation solution), REALSynergy® (a commercial loan servicing platform), and NestRange TM (a single-family automated valuation model and analytics solution).
Current wording
Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”) and investor homes, short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single and multi-family rental data, analytics and rent-based valuation solution), REALSynergy® (a commercial loan servicing platform), and NestRange TM (a single-family automated valuation model and analytics solution).
Previous wording
Our Solutions business includes title insurance (as an agent) and settlement services, real estate valuation services, and loan fulfillment, certification and certification insurance services.
Current wording
Our Solutions business includes title insurance (as an agent) and settlement services, real estate valuation services, loan fulfillment and insurance services.
Previous wording
Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process), TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment, pre and post-close quality control and service transfer processes), and ADMS (a document management and data analytics delivery platform).
Current wording
Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process), TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment and pre and post-close quality control), and ADMS (a document management and data analytics delivery platform).
Previous wording
We are focused on becoming the premier provider of mortgage and real estate marketplaces and related technology enabled solutions to a broad and diversified customer base of residential real estate and loan investors, servicers, and originators. The real estate and mortgage marketplaces represent very large markets, and we believe our scale and suite of offerings provide us with competitive advantages that could support our growth. As we navigate the continuing unsettled nature of the housing and mortgage servicing markets in the wake of governmental mandates taken in connection with the COVID-19 pandemic and other macro-economic trends, we continue to evaluate our strategy and core businesses and seek to position our businesses to provide long term value to our customers and shareholders.
Current wording
We are focused on becoming the premier provider of mortgage and real estate marketplaces and related technology enabled solutions to a broad and diversified customer base of residential real estate and loan investors, servicers, and originators. The real estate and mortgage marketplaces represent very large markets, and we believe our scale and suite of offerings provide us with competitive advantages that could support our growth. As we navigate the current state of the economy, interest rate environment, housing supply, and other macro-economic trends, we continue to evaluate our strategy and core businesses and seek to position our businesses to provide long term value to our customers and shareholders.
Previous wording
Through our offerings that support residential real estate and loan investors and forward and reverse servicers, we provide a suite of solutions and technologies intended to meet their growing and evolving needs. We are focused on growing referrals from our existing customer base and attracting new customers to our offerings. We have a customer base that includes government-sponsored enterprises (“GSEs”), asset managers, and several large bank and non-bank servicers including Onity and Rithm. We believe we are one of only a few providers with a broad suite of solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers if they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.
Current wording
Through our offerings that support residential real estate and loan investors and forward and reverse servicers, we provide a suite of loan default and real estate investor solutions and technologies intended to meet their growing and evolving needs. We are focused on gaining market share on existing solutions and launching new solutions with our existing customer base and attracting new customers to our offerings. We have a customer base that includes government-sponsored enterprises (“GSEs”), asset managers, and several large bank and non-bank servicers including Onity and Rithm. We believe we are one of only a few providers with a broad suite of solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers if loan delinquency rates and foreclosure initiations and sales rise, or if they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.
Previous wording
Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members, which includes independent mortgage bankers, credit unions, and banks, as well as bank and non-bank loan originators. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.
Current wording
Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members (Lenders One is a residential mortgage cooperative managed by Altisource), which includes independent mortgage bankers, credit unions, and banks, as well as bank and non-bank loan originators. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.
Previous wording
While we cannot predict whether the default market will return to a pre-pandemic operating environment, we believe the demand for our Default business will grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. The foreclosure timelines could vary significantly based upon, for example, upon the state where the property is located and whether the foreclosure is contested. The REO sale timelines could also vary significantly based upon, for example, the local real estate market, whether the home is located in a redemption state and whether the home is occupied post foreclosure.
Current wording
While we cannot predict whether the default market will return to a pre-pandemic operating environment, we believe the demand for our Default business is likely to grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. The foreclosure timelines could vary significantly based upon, for example, the state where the property is located, whether the foreclosure is contested, amount of borrower equity in the home and available borrower relief programs. The REO sale timelines could also vary significantly based upon, for example, mortgage interest rates, the local real estate market, whether the home is located in a redemption state and whether the home is occupied post foreclosure.
Previous wording
During 2023 and the nine months ended September 30, 2024, to address lower revenue, we worked to (1) reduce our cost structure, (2) maintain the infrastructure to deliver default related services for our customer base and support the anticipated increase in demand following the expiration of the moratoriums and forbearance plans and CFPB’s rules on temporary loss mitigation measures, and (3) add new Lenders One members, launch new solutions and increase customer adoption of our solutions to accelerate the growth of our origination business.
Current wording
During 2024 and the three months ended March 31, 2025, to address the close to historically low delinquency rates, we worked to (1) reduce our cost structure, (2) maintain the infrastructure to deliver default related services for our customer base and support the anticipated increase in demand should delinquency rates, foreclosure initiations and/or foreclosure sales rise, (3) launch a residential renovation business to renovate single family homes and launch a commercial real estate auction business on Hubzu, our online auction platform, and (4) launch new solutions and increase customer adoption of our existing solutions to accelerate the growth of our Origination segment.
Previous wording
On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by the shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 3.1 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $1.00 per share and a maximum price of $25.00 per share, for a period of five years from the date of approval. As of September 30, 2024, approximately 3.1 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the nine months ended September 30, 2024 and 2023. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of September 30, 2024, we can repurchase up to approximately $114 million of our common stock under Luxembourg law. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances.
Current wording
On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by the shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 3.1 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $1.00 per share and a maximum price of $25.00 per share, for a period of five years from the date of approval. As of March 31, 2025, approximately 3.1 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the three months ended March 31, 2025 and 2024. Under the new first lien loan facility (the “New Facility”) and the super senior credit facility (the “Super Senior Facility”), we are not permitted to repurchase shares except for limited circumstances.
Previous wording
During the three and nine months ended September 30, 2024, Onity was our largest customer, accounting for 43% and 44% respectively, of our total revenue. Additionally, 6% of our revenue for the nine months ended September 30, 2024 (6% of our revenue for the third quarter of 2024) was earned on the loan portfolios serviced by Onity, when a party other than Onity or the mortgage servicing rights (“MSRs”) owner selected Altisource as the service provider.
Current wording
During the three months ended March 31, 2025, Onity was our largest customer, accounting for 45% of our total revenue. Additionally, 5% of our revenue for the three months ended March 31, 2025 was earned on the loan portfolios serviced by Onity, when a party other than Onity or the mortgage servicing rights (“MSRs”) owner selected Altisource as the service provider.
Previous wording
Onity has disclosed that it is subject to a number of ongoing regulatory examinations, orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages. Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services. Existing or future similar matters could result in adverse regulatory or other actions against Onity. In addition to the above, Onity may become subject to future adverse regulatory or other actions.
Current wording
Onity has disclosed that it is subject to a number of ongoing regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages. Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services. Existing or future similar matters could result in adverse regulatory or other actions against Onity. In addition to the above, Onity may become subject to future adverse regulatory or other actions.
Previous wording
Onity has disclosed that Rithm is one of its largest servicing clients. As of June 30, 2024, Onity reported that approximately 14% of loans serviced and subserviced by Onity (measured in UPB) and approximately 64% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.
Current wording
Onity has disclosed that Rithm is one of its largest servicing clients. As of December 31, 2024, Onity reported that approximately 14% of loans serviced and subserviced by Onity (measured in UPB) and approximately 63% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.
Previous wording
The foregoing list is not intended to be exhaustive. Management cannot predict whether any of these events or other events will occur or the amount of any impact they may have on Altisource. We are seeking to diversify and grow our revenue and customer base and we have a sales and marketing strategy to support these efforts. Moreover, in the event one or more of these events materially negatively impact Altisource, we believe the variable nature of our cost structure would allow us to realign our cost structure to address some of the impact to revenue and that current liquidity would be sufficient to meet our working capital, capital expenditures, debt service and other cash needs. There can be no assurance that our plans will be successful or our operations will be profitable.
Current wording
The foregoing list is not intended to be exhaustive. Management cannot predict whether any of these events or other events will occur or the amount of any impact they may have on Altisource.
Previous wording
•Industrywide foreclosure initiations were 7% lower for the eight months ended August 31, 2024 compared to the same period in 2023 (and 34% lower than the same pre-COVID-19 period in 2019)
Current wording
•Industrywide foreclosure initiations were 25% higher for the three months ended March 31, 2025 compared to the same period in 2024 (and 18% lower than the same pre-COVID-19 period in 2019)
Previous wording
•Industrywide foreclosure sales were 14% lower for the eight months ended August 31, 2024 compared to the same period in 2023 (and 54% lower than the same pre-COVID-19 period in 2019)
Current wording
•Industrywide foreclosure sales were 2% lower for the three months ended March 31, 2025 compared to the same period in 2024 (and 53% lower than the same pre-COVID-19 period in 2019)
Previous wording
•Industrywide mortgage origination volume increased by 1% for the nine months ended September 30, 2024 compared to the same period in 2023
Current wording
•Industrywide mortgage origination volume decreased by 1% for the three months ended March 31, 2025 compared to the same period in 2024, comprised of an 11% decline in purchase origination and a 25% increase in refinancing origination
Previous wording
•The interest rate on the Company’s senior secured term loans was 14.18% for the nine months ended September 30, 2024 compared to 12.44% for the same period in 2023
Current wording
•The weighted average interest rate on the Company’s SSTL was 8.75% for the three months ended March 31, 2025 compared to 14.20% for the same period in 2024
Previous wording
•The Company recognized an income tax provision of $2.2 million and $2.6 million for the nine months ended September 30, 2024 and 2023, respectively ($0.8 million and $0.4 million for the third quarter of 2024 and 2023, respectively). The income tax provision for the three and nine months ended September 30, 2024 was driven primarily by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions.
Current wording
•The Company recognized an income tax provision of $0.7 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively. The income tax provision for the three months ended March 31, 2025 was driven primarily by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions.
Previous wording
We recognized service revenue of $111.9 million for the nine months ended September 30, 2024, a 7% increase compared to the nine months ended September 30, 2023 ($38.2 million for the third quarter of 2024, a 12% increase compared to the third quarter of 2023). The increase in service revenue for the three and nine months ended September 30, 2024 is primarily driven by higher revenue in both segments. Revenue was higher in the Servicer and Real Estate segment from growth in our field services, foreclosure trustee and property renovation services businesses in the Solutions business, partially offset by $0.8 million of first quarter 2023 non-recurring professional services revenue in the Equator business within the Technology and SaaS Products business and fewer home sales in the Marketplace business. Revenue was higher in the Origination segment from growth of reseller products in the Lenders One business.
Current wording
We recognized service revenue of $40.9 million for the three months ended March 31, 2025, an 11% increase compared to the three months ended March 31, 2024. The increase in service revenue for the three months ended March 31, 2025 was primarily driven by higher revenue in both segments. Revenue was higher in the Servicer and Real Estate segment from growth in our Property Renovation Services and Foreclosure Trustee businesses in the Solutions business, partially offset by fewer home sales in the Marketplace business. Revenue was higher in the Origination segment from higher volumes in the Trelix business within the Solutions business.
Previous wording
We recognized reimbursable expenses revenue of $7.1 million for the nine months ended September 30, 2024, an 11% increase compared to the nine months ended September 30, 2023 ($2.3 million for the third quarter of 2024, a 14% increase compared to the third quarter of 2023). The increase in reimbursable expenses for the nine months ended September 30, 2024 was primarily driven by higher-value REO title related expenses in the Solutions business within the Servicer and Real Estate segment. The increase in reimbursable expenses for the three months ended September 30, 2024 was primarily driven by an increase in property preservation services in the Solutions business within the Servicer and Real Estate segment.
Current wording
We recognized reimbursable expenses revenue of $2.5 million for the three months ended March 31, 2025, a 3% decrease compared to the three months ended March 31, 2024. The decrease in reimbursable expenses for the three months ended March 31, 2025 was primarily driven by lower REO title related expenses in the Servicer and Real Estate Solutions business and fewer asset resolution and asset management activities in the Marketplace business, partially offset by an increase in property preservation services in the Solutions business within the Servicer and Real Estate segment.
Previous wording
Certain of our revenues can be impacted by seasonality. More specifically, revenues from property sales, loan originations and certain property preservation services in field services typically tend to be at their lowest level during the fall and winter months and at their highest level during the spring and summer months. However, as a result of the COVID-19 pandemic and related measures and the rapid rise in mortgage interest rates, the seasonal impact to revenue may not follow historical patterns.
Current wording
Certain of our revenues can be impacted by seasonality. More specifically, revenues from property sales, loan originations and certain property preservation services in field services typically tend to be at their lowest level during the fall and winter months and at their highest level during the spring and summer months. However, as a result of the current default market, home price appreciation and higher mortgage interest rates, the seasonal impact to revenue may not follow historical patterns.
Previous wording
SG&A for the nine months ended September 30, 2024 of $8.7 million increased by 26% compared to the nine months ended September 30, 2023 ($3.2 million for the third quarter of 2024, a 62% increase compared to the third quarter of 2023). The increase in SG&A for the three and nine months ended September 30, 2024 is primarily due to higher professional services and other expenses, partially offset by lower compensation and benefits. Professional services for the three and nine months ended September 30, 2024 increased primarily due to accruals for potential settlements of certain legacy indemnity claims. Other expenses for the three and nine months ended September 30, 2024 increased from higher bad debt expense. Compensation and benefits for the three and nine months ended September 30, 2024 decreased from efficiency and cost reduction measures.
Current wording
SG&A expenses for the three months ended March 31, 2025 of $10.1 million decreased by 22% compared to the three months ended March 31, 2024. The decrease for the three months ended March 31, 2024 was primarily driven by lower compensation and benefits, professional services and other costs. Compensation and benefits for the three months ended March 31, 2025 decreased from efficiency and cost reductions measures. Professional services for the three months ended March 31, 2025 decreased primarily due to lower costs related to legacy indemnification accruals. Other SG&A expenses for the three months ended March 31, 2025 decreased primarily due to lower bad debt expense.
Previous wording
Income (loss) from operations for the nine months ended September 30, 2024 was $2.6 million, representing 2% of service revenue, compared to $(13.9) million, representing (13)% of service revenue, for the nine months ended September 30, 2023 ($1.1 million, representing 3% of service revenue, for the third quarter of 2024, compared to $(3.5) million representing (10)% of service revenue for the third quarter of 2023). Income (loss) from operations as a percentage of service revenue improved for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, primarily as a result of higher gross profit margins and lower SG&A expenses as a percentage of service revenue.
Current wording
Income (loss) from operations for the three months ended March 31, 2025 was $3.2 million, representing 8% of service revenue, compared to $(0.5) million, representing (1)% of service revenue, for the three months ended March 31, 2024. Income (loss) from operations as a percentage of service revenue improved for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily as a result of lower SG&A expenses as a percentage of service revenue.
Previous wording
Other income (expense), net was $(27.1) million for the nine months ended September 30, 2024 compared to $(26.5) million for the nine months ended September 30, 2023 ($(9.6) million for the third quarter of 2024 and $(7.3) million for the third quarter of 2023). The change for the nine months ended September 30, 2024 was primarily driven by higher interest expense and a gain on the change in fair value of the warrant liability for the nine months ended September 30, 2023 (no comparable amount for the nine months ended September 30, 2024), partially offset by lower debt amendment costs. The higher interest expense was driven by higher interest rates on our amended SSTL.
Current wording
Other income (expense), net was $(7.8) million for the three months ended March 31, 2025 compared to $(7.9) million for the three months ended March 31, 2024. The change for the three months ended March 31, 2025 was primarily driven by lower interest expense, partially offset by higher debt exchange transaction expenses. The lower interest expense was driven by the decrease in the SSTL balance and a lower interest rate from the February 19, 2025 Debt Exchange Transaction.
Previous wording
We recognized an income tax provision of $2.2 million and $2.6 million for the nine months ended September 30, 2024 and 2023, respectively ($0.8 million and $0.4 million for the third quarter of 2024 and 2023, respectively). The income tax provision for the three and nine months ended September 30, 2024 was driven primarily by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions.
Current wording
We recognized an income tax provision of $0.7 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively. The income tax provision for the three months ended March 31, 2025 was driven primarily by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions.
Previous wording
Financial information for our segments is as follows:
Current wording
Financial information for our segments was as follows:
Previous wording
Revenue by line of business is as follows:
Current wording
Revenue by line of business was as follows:
Previous wording
We recognized service revenue of $88.5 million for the nine months ended September 30, 2024, an 8% increase compared to the nine months ended September 30, 2023 ($30.4 million for the third quarter of 2024, a 13% increase compared to the third quarter of 2023). We also recognized reimbursable expenses revenue of $6.7 million for the nine months ended September 30, 2024, a 13% increase compared to the nine months ended September 30, 2023 ($2.2 million for the third quarter of 2024, a 20% increase compared to the third quarter of 2023). The increase in service revenue for the three and nine months ended September 30, 2024 was driven by growth in our field services, property renovation services and foreclosure trustee businesses in the Solutions business, partially offset by fewer home sales in the Marketplace business. The increase in service revenue for the nine months ended was also partially offset by $0.8 million of first quarter 2023 non-recurring professional services revenue in the Equator business within the Technology and SaaS Products business.
Current wording
We recognized service revenue of $32.9 million for the three months ended March 31, 2025, a 13% increase compared to the three months ended March 31, 2024. We also recognized reimbursable expenses revenue of $2.3 million for the three months ended March 31, 2025, a 5% decrease compared to the three months ended March 31, 2024. The increase in service revenue for the three months ended March 31, 2025 was driven by growth in our Property Renovation Services and Foreclosure Trustee businesses in the Solutions business, partially offset by fewer home sales in the Marketplace business. The decrease in reimbursable expenses for the three months ended March 31, 2025 was primarily driven by fewer assets resolution and asset management activities in the Marketplace business and lower REO title related expenses in our Title business in the Solutions business, partially offset by an increase in property preservation services in our Field Services business in the Solutions business.
Previous wording
Certain of our Servicer and Real Estate businesses are impacted by seasonality. Revenues from property sales and certain property preservation services are generally lowest during the fall and winter months and highest during the spring and summer months. However, as a result of the COVID-19 pandemic and related measures and the rapid rise in mortgage interest rates the seasonal impact to revenue may not follow historical patterns.
Current wording
Certain of our Servicer and Real Estate businesses are impacted by seasonality. Revenues from property sales and certain property preservation services are generally lowest during the fall and winter months and highest during the spring and summer months. However, as a result of the current default market, home price appreciation and higher mortgage interest rates, the seasonal impact to revenue may not follow historical patterns.
Previous wording
Cost of revenue for the nine months ended September 30, 2024 of $58.4 million increased by 4% compared to the nine months ended September 30, 2023 ($20.5 million for the third quarter of 2024, a 12% increase compared to the third quarter of 2023). The increase in cost of revenue for the three and nine months ended September 30, 2024 is primarily driven by higher outside fees and services from higher revenue in the field services, property renovation services and foreclosure trustee businesses in the Solutions business and higher reimbursable expenses, partially offset by lower compensation and benefits from efficiency initiatives and cost savings measures.
Current wording
Cost of revenue for the three months ended March 31, 2025 of $21.9 million increased by 14% compared to the three months ended March 31, 2024. The increase in cost of revenue for the three months ended March 31, 2025 is primarily driven by higher outside fees and services from higher revenue in the Property Renovation Services and Foreclosure Trustee businesses in the Solutions business and higher compensation and benefits primarily due to higher annual incentive compensation accruals and higher technology and telecommunications from a benefit recognized in 2024, partially offset by lower reimbursable expenses discussed above.
Previous wording
Gross profit increased to $36.8 million, representing 42% of service revenue, for the nine months ended September 30, 2024 compared to $31.4 million, representing 39% of service revenue, for the nine months ended September 30, 2023 (increased to $12.0 million, representing 40% of service revenue, for the third quarter of 2024, compared to $10.4 million, representing 39% of service revenue, for the third quarter of 2023). Gross profit as a percentage of service revenue for the three and nine months ended September 30, 2024 increased primarily due to price increases for certain services and efficiency initiatives and cost savings measures partially offset by a change in revenue mix from fewer homes sold in our higher margin Hubzu business and growth in the lower margin Field Services and recently launched Renovation businesses. Our margins can vary substantially depending upon the service revenue mix.
Current wording
Gross profit increased to $13.3 million, representing 40% of service revenue, for the three months ended March 31, 2025 compared to $12.4 million, representing 43% of service revenue, for the three months ended March 31, 2024. Gross profit as a percentage of service revenue for the three months ended March 31, 2025 decreased primarily due to a change in revenue mix from greater growth in the lower margin Property Renovations Services business than in the higher margin Foreclosure Trsutee business. Our margins can vary substantially depending upon the service revenue mix.
Previous wording
SG&A for the nine months ended September 30, 2024 of $5.0 million decreased by 14% compared to the nine months ended September 30, 2023 ($1.3 million for the third quarter of 2024, a 26% decrease compared to the third quarter of 2023). The decrease in SG&A for the three and nine months ended September 30, 2024 is primarily due to lower professional services from lower legal-related costs and lower compensation and benefits from efficiency and cost reduction measures.
Current wording
SG&A for the three months ended March 31, 2025 of $2.3 million decreased by 24% compared to the three months ended March 31, 2024. The decrease in SG&A for the three months ended March 31, 2025 is primarily due to lower professional services and other expenses. Professional services for the three months ended March 31, 2025 decreased primarily due to lower legal-related costs. Other expenses for the three months ended March 31, 2025 decreased from lower bad debt expense.
Previous wording
Income (loss) from operations increased to $0.1 million, representing less than 1% of service revenue, for the nine months ended September 30, 2024 compared to $(5.1) million, representing (22)% of service revenue, for the nine months ended September 30, 2023 (increased to $0.3 million, representing 4% of service revenue for the third quarter of 2024, compared to $(1.4) million, representing (20)% of service revenue for the third quarter of 2023). The improvement in operating income as a percentage of service revenue for the three and nine months ended September 30, 2024 is primarily from higher gross profit margins and lower SG&A expenses.
Current wording
Income from operations increased to $11.0 million, representing 33% of service revenue, for the three months ended March 31, 2025 compared to $9.3 million, representing 32% of service revenue, for the three months ended March 31, 2024. The increase in operating income as a percentage of service revenue for the three months ended March 31, 2025 is primarily the result of lower SG&A expenses, partially offset by lower gross profit margins.
Previous wording
Revenue by business unit is as follows:
Current wording
Revenue by business unit was as follows:
Previous wording
We recognized service revenue of $23.4 million for the nine months ended September 30, 2024, a 3% increase compared to the nine months ended September 30, 2023 ($7.8 million for the third quarter of 2024, an 8% increase compared to the third quarter of 2023). We also recognized reimbursable expenses revenue of $0.4 million for the nine months ended September 30, 2024, a 17% decrease compared to the nine months ended September 30, 2023 ($0.2 million for the third quarter of 2024, a 32% decrease compared to the third quarter of 2023). The increase in service revenue in the Origination segment for the three and nine months ended September 30, 2024 is primarily driven by growth of reseller products in the Lenders One business.
Current wording
We recognized service revenue of $8.0 million for the three months ended March 31, 2025, a 3% increase compared to the three months ended March 31, 2024. We also recognized reimbursable expenses revenue of $0.2 million for the three months ended March 31, 2025, a 54% increase compared to the three months ended March 31, 2024. The increase in service revenue in the Origination segment for the three months ended March 31, 2025 is primarily driven by higher volumes in the Trelix business within the Solutions business.
Previous wording
Cost of revenue for the nine months ended September 30, 2024 of $4.9 million decreased by 56% compared to the nine months ended September 30, 2023 ($1.6 million for the third quarter of 2024, a 54% decrease compared to the third quarter of 2023). The decrease in cost of revenue for the three and nine months ended September 30, 2024 is primarily driven by lower compensation and benefits and technology and telecommunications due to efficiency initiatives and cost savings initiatives.
Current wording
Cost of revenue for the three months ended March 31, 2025 of $1.6 million decreased by 18% compared to the three months ended March 31, 2024. The decrease in cost of revenue for the three months ended March 31, 2025 is primarily driven by lower technology and telecommunications due to efficiency initiatives and cost savings initiatives and lower depreciation and amortization from the completion of the depreciation periods for certain premises and equipment.
Previous wording
SG&A for the nine months ended September 30, 2024 of $20.7 million decreased by 7% compared to the nine months ended September 30, 2023 ($6.4 million for the third quarter of 2024, an 8% decrease compared to the third quarter of 2023). The decrease for the three and nine months ended September 30, 2024 is primarily driven by lower occupancy related costs and compensation and benefits driven by efficiency initiatives and cost savings measures.
Current wording
SG&A for the three months ended March 31, 2025 of $6.1 million decreased by 22% compared to the three months ended March 31, 2024. The decrease for the three months ended March 31, 2025 is primarily driven by lower compensation and benefits driven by efficiency initiatives and cost savings initiatives and lower professional services from lower accruals for estimated legal matters.
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Current report — wording carried from elsewhere
We seek to deploy cash generated in a disciplined manner. Principally, we intend to use cash to develop and grow complementary services and businesses that we believe will generate attractive margins in line with our core capabilities and strategy and fund negative operating cash flow, if necessary. We also use cash for repayments of our long-term debt and capital investments. In addition, from time to time we may consider and evaluate business acquisitions, dispositions, closures, sales of equity securities or other similar actions that are aligned with our strategy.