ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Previous wording

•assumptions about our ability to grow our business, including executing on our strategic initiatives and improve margins;

Current wording

•assumptions about our ability to grow our business, execute on our strategic initiatives and improve margins;

Previous wording

Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in the Risk Factors section of our Form 10-K for the year ended December 31, 2024 as updated by this Form 10-Q including:

Current wording

Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in the Risk Factors section of our Form 10-K for the year ended December 31, 2024, as supplemented or amended by the Risk Factors set forth in our subsequent Form 10-Q filings, including this Form 10-Q, such as:

Previous wording

•Changes in residential mortgage delinquencies, foreclosure initiations and foreclosure sales could negatively effect demand for some of our services;

Current wording

•changes in residential mortgage delinquencies, foreclosure initiations and foreclosure sales could negatively affect demand for some of our services;

Previous wording

Our Solutions business includes property preservation and inspection services, title insurance (as an agent) and settlement services, real estate valuation services, foreclosure trustee services, residential and commercial construction inspection and risk mitigation services, and residential real estate renovation services.

Current wording

Our Solutions business includes property preservation and inspection services, foreclosure trustee services, residential real estate renovation services, residential and commercial construction inspection and risk mitigation services, title insurance (as an agent) and settlement services, and real estate valuation services.

Previous wording

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”), and certain loan manufacturing and capital markets services provided to the members of the Lenders One cooperative.

Current wording

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”), and certain loan manufacturing and capital markets solutions provided to the members of the Lenders One cooperative.

Previous wording

Our Solutions business includes title insurance (as an agent) and settlement services, real estate valuation services, loan fulfillment and insurance services.

Current wording

Our Solutions business includes loan fulfillment services, real estate valuation services, title insurance (as an agent) and settlement services, and insurance services.

Previous wording

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One. Lenders One is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net loss to arrive at net loss attributable to Altisource.

Current wording

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One. Lenders One is a mortgage cooperative managed, but not owned, by Altisource. Lenders One’s earnings are included in revenue and reduced from net income (loss) to arrive at net income (loss) attributable to Altisource.

Previous 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.

Current wording

During 2024 and the six months ended June 30, 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 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.

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 0.4 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 $8.00 per share and a maximum price of $200.00 per share, for a period of five years from the date of approval. As of June 30, 2025, approximately 0.4 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the six months ended June 30, 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 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.

Current wording

During the three and six months ended June 30, 2025, Onity was our largest customer, accounting for 43% and 44% of our total revenue, respectively. Additionally, 5% of our revenue for the six months ended June 30, 2025 (4% of our revenue for the second quarter of 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, 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.

Current wording

Onity has disclosed that it is subject to a number of ongoing federal and state 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 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.

Current wording

Onity has disclosed that Rithm is one of its largest servicing clients. As of March 31, 2025, Onity reported that approximately 11% of loans serviced and subserviced by Onity (measured in UPB) and approximately 58% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.

Previous 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)

Current wording

•Industrywide foreclosure initiations were 22% higher for the five months ended May 31, 2025 compared to the same period in 2024 (and 22% lower than the same pre-COVID-19 period in 2019)

Previous 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)

Current wording

•Industrywide foreclosure sales were 3% higher for the five months ended May 31, 2025 compared to the same period in 2024 (and 51% lower than the same pre-COVID-19 period in 2019)

Previous 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

Current wording

•Industrywide mortgage origination volume increased by 14% for the six months ended June 30, 2025 compared to the same period in 2024, comprised of a 2% decline in purchase origination and a 58% increase in refinancing origination

Previous wording

•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 wording

•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 7.3 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 $3.5 million relating to fees paid to advisors and others

Previous 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

Current wording

•The weighted average interest rate on the Company’s SSTL was 8.24% for the six months ended June 30, 2025 compared to 14.20% for the same period in 2024

Previous 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.

Current wording

•The Company recognized an income tax benefit (provision) of $15.7 million and $(1.4) million for the six months ended June 30, 2025 and 2024, respectively ($16.5 million and $(0.7) million for the second quarter of 2025 and 2024, respectively). The income tax benefit (provision) for the three and six months ended June 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions, income tax expense on transfer pricing income from India and the United States and no tax benefit on the pretax loss from our Luxembourg operating company. For further information, see Note 19.

Previous 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.

Current wording

We recognized service revenue of $81.7 million for the six months ended June 30, 2025, an 11% increase compared to the six months ended June 30, 2024 ($40.8 million for the second quarter of 2025, an 11% increase compared to the second quarter of 2024). The increase in service revenue for the three and six months ended June 30, 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 growth in reseller products in the Lenders One business and higher volumes in the loan fulfillment services business within the Solutions business.

Previous 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.

Current wording

We recognized reimbursable expenses revenue of $4.9 million for the six months ended June 30, 2025, a 3% increase compared to the six months ended June 30, 2024 ($2.4 million for the second quarter of 2025, a 9% increase compared to the second quarter of 2024). The increase in reimbursable expenses for the three and six months ended June 30, 2025 was primarily driven by growth in the Foreclosure Trustee business in the Solutions business within the Servicer and Real Estate segment and certain Title orders within the Origination segment. The increase in reimbursable expenses for the six months ended June 30, 2025 was partially offset 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.

Previous wording

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 wording

We recognized cost of revenue of $60.4 million for the six months ended June 30, 2025, a 13% increase compared to the six months ended June 30, 2024 ($30.3 million for the second quarter of 2025, a 15% increase compared to the second quarter of 2024). Outside fees and services for the three and six months ended June 30, 2025 increased primarily from service revenue growth in the Property Renovations Services and Foreclosure Trustee businesses and higher preservation services in the Field Services business within the Servicer and Real Estate segment and service revenue growth in the Lenders One business in the Origination segment. Technology and telecommunications for the three and six months ended June 30, 2025 increased primarily from a benefit recognized in 2024. Compensation and benefits for the six months ended June 30, 2025 increased primarily due to higher share-based compensation. Depreciation and amortization was lower for the three and six months ended June 30, 2025 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 and six months ended June 30, 2024 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.

Previous wording

Selling, general and administrative (“SG&A”) expenses includes payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, audit, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses.

Current wording

Selling, general and administrative (“SG&A”) expenses include payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, audit, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses.

Previous 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.

Current wording

SG&A expenses for the six months ended June 30, 2025 of $19.9 million decreased by 15% compared to the six months ended June 30, 2024 ($9.8 million for the second quarter of 2025, an 8% decrease compared to the second quarter of 2024). The decrease in SG&A for the six months ended June 30, 2025 was primarily driven by lower professional services, other SG&A expenses and compensation and benefits. Professional services for the six months ended June 30, 2025 decreased primarily due to lower costs related to legacy indemnification accruals. Other SG&A expenses for the six months ended June 30, 2025 decreased primarily due to lower bad debt expense. Compensation and benefits for the six months ended June 30, 2025 decreased from lower share-based compensation. The decrease in SG&A for the three months ended June 30, 2025 was driven by lower professional services, partially offset by higher Compensation and benefits. Professional services for the three months ended June 30, 2025, decreased primarily from lower costs related to legacy indemnification accruals. Compensation and benefits for the three months ended June 30, 2025 increased primarily due to higher annual incentive compensation accruals.

Previous 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.

Current wording

Income from operations for the six months ended June 30, 2025 was $6.5 million, representing 8% of service revenue, compared to $1.5 million, representing 2% of service revenue, for the six months ended June 30, 2024 (increased to $3.2 million, representing 8% of service revenue, for the second quarter of 2025, compared to $2.1 million representing 6% of service revenue for the second quarter of 2024). Income from operations as a percentage of service revenue improved for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily as a result of lower SG&A expenses as a percentage of service revenue.

Previous 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.

Current wording

Other income (expense), net was $(10.8) million for the six months ended June 30, 2025 compared to $(17.5) million for the six months ended June 30, 2024 ($(3.0) million for the second quarter of 2025 and $(9.6) million for the second quarter of 2024). The change for the three and six months ended June 30, 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 outstanding debt and a lower interest rate from the February 19, 2025 Debt Exchange Transaction.

Previous 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.

Current wording

We recognized an income tax benefit (provision) of $15.7 million and $(1.4) million for the six months ended June 30, 2025 and 2024, respectively ($16.5 million and $(0.7) million for the second quarter of 2025 and 2024, respectively). The income tax benefit (provision) for the six months ended June 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions, income tax expense on transfer pricing income from India and the United States and no tax benefit on the pretax loss from our Luxembourg operating company. For further information, see Note 19.

Previous 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.

Current wording

We recognized service revenue of $64.8 million for the six months ended June 30, 2025, a 12% increase compared to the six months ended June 30, 2024 ($32.0 million for the second quarter of 2025, a 10% increase compared to the second quarter of 2024). We also recognized reimbursable expenses revenue of $4.5 million for the six months ended June 30, 2025, a less than 1% increase compared to the six months ended June 30, 2024 ($2.2 million for the second quarter of 2025, a 7% increase compared to the second quarter of 2024). The increase in service revenue for the three and six months ended June 30, 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 relatively flat reimbursable expenses revenue for the six months ended June 30, 2025 was driven by growth in the Foreclosure Trustee business in the Solutions business largely offset by fewer asset resolution and asset management activities in the Marketplace business. The increase in reimbursable expenses for the three months ended June 30, 2025 was primarily driven by growth in the Foreclosure Trustee business in the Solutions business and higher asset resolution and asset management activities in the Marketplace business.

Previous 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.

Current wording

Cost of revenue for the six months ended June 30, 2025 of $43.7 million increased by 16% compared to the six months ended June 30, 2024 ($21.9 million for the second quarter of 2025, a 17% increase compared to the second quarter of 2024). The increase in cost of revenue for the three and six months ended June 30, 2025 is primarily driven by higher outside fees and services, technology and telecommunications and compensation and benefits. Outside fees and services for the three and six months ended June 30, 2025 increased from higher revenue in the Property Renovation Services and Foreclosure Trustee businesses and higher preservation services in the Field Services business in the Solutions business. Technology and telecommunications for the three and six months ended June 30, 2025 increased from higher cloud services costs from higher volumes and, for the six months ended June 30, 2025, from a benefit recognized in the first quarter of 2024. Compensation and benefits for the three and six months ended June 30, 2025 increased primarily due to higher annual incentive compensation accruals.

Previous 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.

Current wording

Gross profit increased to $25.6 million, representing 40% of service revenue, for the six months ended June 30, 2025 compared to $24.8 million, representing 43% of service revenue, for the six months ended June 30, 2024 (decreased to $12.3 million, representing 39% of service revenue, for the second quarter of 2025, compared to $12.4 million, representing 43% of service revenue, for the second quarter of 2024). Gross profit as a percentage of service revenue for the three and six months ended June 30, 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 Trustee business. Our margins can vary substantially depending upon the service revenue mix.

Previous 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.

Current wording

Income from operations increased to $22.2 million, representing 34% of service revenue, for the six months ended June 30, 2025 compared to $19.3 million, representing 33% of service revenue, for the six months ended June 30, 2024 (increased to $11.3 million, representing 35% of service revenue, for the second quarter of 2025, compared to $10.0 million, representing 34% of service revenue for the second quarter of 2024). The increase in operating income as a percentage of service revenue for the three and six months ended June 30, 2025 is primarily the result of lower SG&A expenses, partially offset by lower gross profit margins.

Previous 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.

Current wording

We recognized service revenue of $16.9 million for the six months ended June 30, 2025, an 8% increase compared to the six months ended June 30, 2024 ($8.8 million for the second quarter of 2025, a 13% increase compared to the second quarter of 2024). We also recognized reimbursable expenses revenue of $0.4 million for the six months ended June 30, 2025, a 49% increase compared to the six months ended June 30, 2024 ($0.2 million for the second quarter of 2025, a 44% increase compared to the second quarter of 2024). The increase in service revenue in the Origination segment for the three and six months ended June 30, 2025 is primarily driven by growth in reseller products in the Lenders One business and higher volumes in the loan fulfillment services business within the Solutions business. The increase in reimbursable expenses for the three and six months ended June 30, 2025 was primarily driven by certain Title orders within the Solutions business.

Previous wording

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 wording

Cost of revenue for the six months ended June 30, 2025 of $13.5 million increased by 8% compared to the six months ended June 30, 2024 ($6.8 million for the second quarter of 2025, a 7% increase compared to the second quarter of 2024). The increase in cost of revenue for the three and six months ended June 30, 2025 was primarily driven by higher outside fees and services from a growth in the reseller products in the Lenders One business.

Previous wording

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 wording

Gross profit increased to $3.9 million, representing 23% of service revenue, for the six months ended June 30, 2025 compared to $3.5 million, representing 22% of service revenue, for the six months ended June 30, 2024 (increased to $2.3 million, representing 26% of service revenue, for the second quarter of 2025, compared to $1.6 million, representing 21% of service revenue for the second quarter of 2024). Gross profit as a percentage of service revenue for the three and six months ended

Previous wording

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 wording

SG&A for the six months ended June 30, 2025 of $3.4 million decreased by 8% compared to the six months ended June 30, 2024 ($1.8 million for the second quarter of 2025, a 1% increase compared to the second quarter of 2024). The decrease in SG&A for the six months ended June 30, 2025 is primarily due to lower other expenses from lower bad debt expense, partially offset by higher professional services from higher legal-related costs. SG&A for the three months ended June 30, 2025 was relatively flat compared to the three months ended June 30, 2024.

Previous wording

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 wording

Income (loss) from operations was $0.5 million, representing 3% of service revenue, for the six months ended June 30, 2025 compared to $(0.2) million, representing (1)% of service revenue, for the six months ended June 30, 2024 (increased to $0.6 million, representing 6% of service revenue for the second quarter of 2025, compared to $(0.1) million, representing (1)% of service revenue for the second quarter of 2024). The improvement in operating income as a percentage of service revenue for the three and six months ended June 30, 2025 is primarily from higher gross profit margins and, for the six months ended June 30, 2025, lower SG&A expenses on higher revenue.

Previous 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.

Current wording

Cost of revenue for the six months ended June 30, 2025 of $3.2 million decreased by 2% compared to the six months ended June 30, 2024 ($1.6 million for the second quarter of 2025, a 20% increase compared to the second quarter of 2024). The decrease in cost of revenue for the six months ended June 30, 2025 is primarily driven by lower depreciation and amortization from the completion of the depreciation periods for certain premises and equipment. The increase in cost of revenue for the three months ended June 30, 2025 is primarily driven by a benefit recognized in 2024, partially offset by lower licensing costs for certain third party technology.

Previous wording

SG&A in Corporate and Others include costs related to the corporate functions including executive, finance, technology, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.

Current wording

SG&A in Corporate and Others includes costs related to the corporate functions including executive, finance, technology, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.

Previous 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.

Current wording

SG&A for the six months ended June 30, 2025 of $13.1 million decreased by 8% compared to the six months ended June 30, 2024 ($7.0 million for the second quarter of 2025, an 8% increase compared to the second quarter of 2024). The decrease in SG&A for the six months ended June 30, 2025 is primarily driven by lower professional services from lower accruals for estimated legal matters and lower compensation and benefits driven by lower share-based compensation. The increase for the three months ended June 30, 2025 is primarily driven by the grant of RSUs to executive officers, which were awarded in connection with the debt refinancing.

Previous 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.

Current wording

Other income (expense), net was $(10.8) million for the six months ended June 30, 2025 compared to $(17.5) million for the six months ended June 30, 2024 ($(3.0) million for the second quarter of 2025 and $(9.6) million for the second quarter of 2024). The change for the three and six months ended June 30, 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 outstanding debt and a lower interest rate from the February 19, 2025 Debt Exchange Transaction.

Previous wording

Our primary source of liquidity has historically been cash flow from operations, cash proceeds from sales of businesses, cash proceeds from the sale of equity securities and cash on hand. However, primarily due to lower delinquency and foreclosure rates, and higher home equity, revenue has declined significantly compared to pre-pandemic levels. The lower revenue, partially offset by efficiency initiatives and cost savings initiatives, has resulted in negative operating cash flow from operations. We believe lower interest expense as a result of the February 2025 Debt Exchange Transaction, anticipated growth from the renovation business launched in 2024, the anticipated improvement in the default market, on-boarding sales wins, and revenue mix together with our reduced cost structure, should help improve operating cash flow.

Current wording

Our primary source of liquidity has historically been cash flow from operations, cash proceeds from sales of businesses, cash proceeds from the sale of equity securities and cash on hand. However, primarily due to lower delinquency and foreclosure rates, and higher home equity, revenue has declined significantly compared to pre-pandemic levels (although revenue grew in 2024 compared to 2023 and for the first six months of 2025 compared to the first six months of 2024). The lower revenue, partially offset by efficiency initiatives and cost savings initiatives, has resulted in negative operating cash flow from operations. We believe lower interest expense as a result of the February 2025 Debt Exchange Transaction, more recent revenue growth from the renovation business launched in 2024, the anticipated improvement in the default market, on-boarding sales wins, and revenue mix together with our reduced cost structure, should help improve operating cash flow.