ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous wording

•the level of origination volume;

Current wording

•a reduction in the level of origination volume;

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. Lenders One’s earnings are included in revenue and reduced from net income (loss) to arrive at net income (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 (loss) income to arrive at net (loss) income attributable to Altisource.

Previous wording

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 wording

Serious delinquency rates, foreclosure initiations and foreclosure sales are low relative to historical levels but have been increasing for the nine months ended September 30, 2025 relative to the same period in 2024. Additionally, foreclosure initiations and sales as a percentage of seriously delinquent loans for 2020 through 2025 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. Foreclosure initiations and sales increased during the nine months ended September 30, 2025 compared to the same period in 2024. However, both measures remain below pre-pandemic levels.

Previous 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.

Current wording

During 2024 and the nine months ended September 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 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.

Current wording

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by our 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, until May 16, 2028. As of September 30, 2025, approximately 0.4 million shares of common stock remain available for repurchase under the program. In connection with the Share Consolidation, the Company purchased 204 shares of common stock during the nine months ended September 30, 2025. There were no other purchases of shares of common stock during the nine months ended September 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 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.

Current wording

During the three and nine months ended September 30, 2025, Onity was our largest customer, accounting for 42% and 43% of our total revenue, respectively. Additionally, 5% of our revenue for the nine months ended September 30, 2025 (4% of our revenue for the third 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 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.

Current wording

Onity has disclosed that Rithm is one of its largest servicing clients. As of June 30, 2025, Onity reported that approximately 11% of loans serviced and subserviced by Onity (measured in UPB) and approximately 59% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.

Previous 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)

Current wording

•Industrywide foreclosure initiations were 19% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 21% lower than the same pre-COVID-19 period in 2019)

Previous 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)

Current wording

•Industrywide foreclosure sales were 10% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 49% lower than the same pre-COVID-19 period in 2019)

Previous 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

Current wording

•Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025 compared to the same period in 2024, comprised of a 4% decline in purchase origination and a 103% 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 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

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 $3.6 million relating to fees paid to advisors and others

Previous 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

Current wording

•The weighted average interest rate on the Company’s long-term debt was 12.35% for the nine months ended September 30, 2025 compared to 14.18% for the same period in 2024

Previous 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.

Current wording

•The Company recognized an income tax benefit (provision) of $15.1 million and $(2.2) million for the nine months ended September 30, 2025 and 2024, respectively ($(0.7) million and $(0.8) million for the third quarter of 2025 and 2024, respectively). The income tax benefit for the nine months ended September 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions. The income tax (provision) benefit for the three and nine months ended September 30, 2025 was also driven by 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 $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.

Current wording

We recognized service revenue of $121.3 million for the nine months ended September 30, 2025, an 8% increase compared to the nine months ended September 30, 2024 ($39.7 million for the third quarter of 2025, a 4% increase compared to the third quarter of 2024). The increase in service revenue for the three and nine months ended September 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, Foreclosure Trustee, Granite and Field Services businesses in the Solutions business, partially offset by fewer home sales in the Marketplace business and lower professional services revenue in the Equator business within the Technology and SaaS products. Revenue was higher in the Origination segment from growth in reseller products in the Lenders One business and, for the nine months ended September 30, 2025, higher volumes in the loan fulfillment services business within the Solutions business.

Previous 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.

Current wording

We recognized reimbursable expenses revenue of $7.1 million for the nine months ended September 30, 2025, a less than 1% decrease compared to the nine months ended September 30, 2024 ($2.2 million for the third quarter of 2025, a 6% decrease compared to the third quarter of 2024). The decrease in reimbursable expenses for the three and nine months ended September 30, 2025 was primarily driven by fewer asset resolution and asset management activities in the Marketplace business and a decrease in property preservation services in our Field Services business in the Servicer and Real Estate Solutions business partially offset by growth in the Foreclosure Trustee business in the Solutions business within the Servicer and Real Estate segment. For the nine months ended September 30, 2025, the decrease in reimbursable expenses was also from lower REO title related expenses in our Title business in the Solutions business.

Previous 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.

Current wording

We recognized cost of revenue of $90.9 million for the nine months ended September 30, 2025, an 11% increase compared to the nine months ended September 30, 2024 ($30.6 million for the third quarter of 2025, a 7% increase compared to the third quarter of 2024). Outside fees and services for the three and nine months ended September 30, 2025 increased primarily from service revenue growth in the Property Renovations Services, Foreclosure Trustee and Field Services businesses within the Servicer and Real Estate segment and service revenue growth in the Lenders One business in the Origination segment. Compensation and benefits for the three and nine months ended September 30, 2025 increased primarily due to growth in the Property Renovation Services business and higher annual incentive compensation accruals. Technology and telecommunications for the nine months ended September 30, 2025 increased primarily from a benefit recognized in 2024. Depreciation and amortization was lower for the three and nine months ended September 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 nine months ended September 30, 2024 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.

Previous wording

Gross profit increased to $26.4 million, representing 32% of service revenue, for the six months ended June 30, 2025 compared to $25.0 million, representing 34% of service revenue, for the six months ended June 30, 2024 (increased to $13.0 million, representing 32% of service revenue, for the second quarter of 2025, compared to $12.7 million, representing 34% 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 compared to the three and six months ended June 30, 2024 primarily from a change in revenue mix from growth in the lower margin Property Renovations Services and Lenders One businesses, partially offset by growth in the higher margin Foreclosure Trustee business.

Current wording

Gross profit increased to $37.7 million, representing 31% of service revenue, for the nine months ended September 30, 2025 compared to $37.1 million, representing 33% of service revenue, for the nine months ended September 30, 2024 (decreased to $11.3 million, representing 29% of service revenue, for the third quarter of 2025, compared to $12.1 million, representing 32% of service revenue, for the third quarter of 2024). Gross profit as a percentage of service revenue for the nine months ended September 30, 2025 decreased compared to the three and nine months ended September 30, 2024 primarily due to a change in revenue mix from greater growth in the lower margin Property Renovations Services business and Lenders One businesses than in the higher margin Foreclosure Trustee business and Hubzu business. Our margins can vary substantially depending upon the service revenue mix.

Previous 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.

Current wording

SG&A expenses for the nine months ended September 30, 2025 of $30.7 million decreased by 11% compared to the nine months ended September 30, 2024 ($10.8 million for the third quarter of 2025, a 1% decrease compared to the third quarter of 2024). The decrease in SG&A for the three and nine months ended September 30, 2025 was primarily driven by lower professional services and other SG&A expenses, partially offset by higher compensation and benefits. Professional services for the three and nine months ended September 30, 2025 decreased primarily due to lower costs related to legacy indemnification accruals. Other SG&A expenses for the three and nine months ended September 30, 2025 decreased primarily due to lower bad debt expense. Compensation and benefits for the nine months ended September 30, 2025 increased primarily from higher annual incentive compensation accruals, partially offset by lower share based compensation. Compensation and benefits for the three months ended September 30, 2025 increased from higher annual incentive compensation accruals and higher share based compensation.

Previous 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.

Current wording

Income from operations for the nine months ended September 30, 2025 was $7.0 million, representing 6% of service revenue, compared to $2.6 million, representing 2% of service revenue, for the nine months ended September 30, 2024 (decreased to $0.5 million, representing 1% of service revenue, for the third quarter of 2025, compared to $1.1 million representing 3% of service revenue for the third quarter of 2024). Income from operations as a percentage of service revenue improved for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily as a result of lower SG&A expenses as a percentage of service revenue, partially offset by lower gross profit margins. Income from operations as a percentage of service revenue decreased for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily from lower gross profit margins.

Previous 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.

Current wording

Other income (expense), net was $(13.0) million for the nine months ended September 30, 2025 compared to $(27.1) million for the nine months ended September 30, 2024 ($(2.2) million for the third quarter of 2025 and $(9.6) million for the third quarter of 2024). The change for the three and nine months ended September 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 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.

Current wording

We recognized an income tax benefit (provision) of $15.1 million and $(2.2) million for the nine months ended September 30, 2025 and 2024, respectively ($(0.7) million and $(0.8) million for the third quarter of 2025 and 2024, respectively). The income tax (provision) benefit for the nine months ended September 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions. The income tax (provision) benefit for the three and nine months ended September 30, 2025 was also driven by 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 $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.

Current wording

We recognized service revenue of $96.0 million for the nine months ended September 30, 2025, an 8% increase compared to the nine months ended September 30, 2024 ($31.2 million for the third quarter of 2025, a 3% increase compared to the third quarter of 2024). We also recognized reimbursable expenses revenue of $6.6 million for the nine months ended September 30, 2025, a 1% decrease compared to the nine months ended September 30, 2024 ($2.1 million for the third quarter of 2025, a 4% decrease compared to the third quarter of 2024). The increase in service revenue for the three and nine months ended September 30, 2025 was driven by growth in our Property Renovation Services, Foreclosure Trustee businesses, Granite and Field Services businesses in the Solutions business, partially offset by fewer home sales in the Marketplace business and lower professional services revenue in the Equator business within the Technology and SaaS products business. The decrease in reimbursable expenses for the three and nine months ended September 30, 2025 was primarily driven by fewer asset resolution and asset management activities in the Marketplace business and a decrease in property preservation services in our Field Services business partially offset by growth in the Foreclosure Trustee business in the Solutions business. For the nine months ended September 30, 2025, the decrease in reimbursable expenses was also from lower REO title related expenses in our Title business in the Solutions business.

Previous 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.

Current wording

Cost of revenue for the nine months ended September 30, 2025 of $65.7 million increased by 13% compared to the nine months ended September 30, 2024 ($22.0 million for the third quarter of 2025, a 7% increase compared to the third quarter of 2024). The increase in cost of revenue for the three and nine months ended September 30, 2025 was primarily driven by higher outside fees and services and compensation and benefits. The increase in cost of revenue for the nine months ended September 30, 2025 was also from higher technology and telecommunications. Outside fees and services for the three and nine months ended September 30, 2025 increased from service revenue growth in the Property Renovation Services, Foreclosure Trustee and Field Services businesses in the Solutions business. Compensation and benefits for the three and nine months ended September 30, 2025 increased primarily due to growth in the Property Renovation Services business and higher annual incentive compensation accruals. Technology and telecommunications for the nine months ended September 30, 2025 increased from higher cloud services costs from higher volumes and from a benefit recognized in the first quarter of 2024.

Previous 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.

Current wording

Gross profit increased to $36.9 million, representing 38% of service revenue, for the nine months ended September 30, 2025 compared to $36.8 million, representing 42% of service revenue, for the nine months ended September 30, 2024 (decreased to $11.3 million, representing 36% of service revenue, for the third quarter of 2025, compared to $12.0 million, representing 40% of service revenue, for the third quarter of 2024). Gross profit as a percentage of service revenue for the three and nine months ended September 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 in the Solutions business and fewer homes sales in the Marketplace business. Our margins can vary substantially depending upon the service revenue mix.

Previous wording

SG&A for the six months ended June 30, 2025 of $3.4 million decreased by 39% compared to the six months ended June 30, 2024 ($1.0 million for the second quarter of 2025, a 57% decrease compared to the second quarter of 2024). The decrease in SG&A for the three and six months ended June 30, 2025 is primarily due to lower professional services. Professional services for the three and six months ended June 30, 2025 decreased primarily due to a settlement received related to a legacy matter.

Current wording

SG&A for the nine months ended September 30, 2025 of $5.7 million decreased by 34% compared to the nine months ended September 30, 2024 ($2.3 million for the third quarter of 2025, a 27% decrease compared to the third quarter of 2024). The decrease in SG&A for the three and nine months ended September 30, 2025 was primarily due to lower professional services. Professional services for the nine months ended September 30, 2025 decreased primarily due to a settlement received related to a legacy matter and lower costs related to legacy indemnification accruals. Professional services for the three months ended September 30, 2025 decreased primarily due to lower costs related to legacy indemnification accruals.

Previous 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.

Current wording

Income from operations increased to $31.2 million, representing 32% of service revenue, for the nine months ended September 30, 2025 compared to $28.1 million, representing 32% of service revenue, for the nine months ended September 30, 2024 (increased to $8.9 million, representing 29% of service revenue, for the third quarter of 2025, compared to $8.8 million, representing 29% of service revenue for the third quarter of 2024). Operating income as a percentage of service revenue for the three and nine months ended September 30, 2025 remained flat compared to September 30, 2024 as a result of lower SG&A expenses, offset by lower gross profit margins.

Previous 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.

Current wording

We recognized service revenue of $25.4 million for the nine months ended September 30, 2025, an 8% increase compared to the nine months ended September 30, 2024 ($8.5 million for the third quarter of 2025, a 9% increase compared to the third quarter of 2024). We also recognized reimbursable expenses revenue of $0.5 million for the nine months ended September 30, 2025, a 15% increase compared to the nine months ended September 30, 2024 ($0.1 million for the third quarter of 2025, a 35% decrease compared to the third quarter of 2024). The increase in service revenue in the Origination segment for the nine months ended September 30, 2025 was 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 service revenue for the three months ended September 30, 2025 was primarily driven by growth in reseller products in the Lenders One business partially offset by lower volumes in the loan fulfillment services business within the Solutions business. The increase in reimbursable expenses for the nine months ended September 30, 2025 was primarily driven by certain Title orders partially offset by lower volumes in the loan fulfillment services business within the Solutions business. The decrease in reimbursable expenses for the three months ended September 30, 2025 was primarily driven by lower volumes in the loan fulfillment services business within the Solutions business.

Previous 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.

Current wording

Cost of revenue for the nine months ended September 30, 2025 of $20.5 million increased by 9% compared to the nine months ended September 30, 2024 ($7.0 million for the third quarter of 2025, an 11% increase compared to the third quarter of 2024). The increase in cost of revenue for the three and nine months ended September 30, 2025 was primarily driven by higher outside fees and services from growth in the reseller products in the Lenders One business.

Previous 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.

Current wording

Cost of revenue for the nine months ended September 30, 2025 of $4.8 million decreased by 2% compared to the nine months ended September 30, 2024 ($1.6 million for the third quarter of 2025, a 2% decrease compared to the third quarter of 2024). The decrease in cost of revenue for the three and nine months ended September 30, 2025 was primarily driven by lower depreciation and amortization from the completion of the depreciation periods for certain premises and equipment.

Previous 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.

Current wording

SG&A for the nine months ended September 30, 2025 of $19.5 million decreased by 6% compared to the nine months ended September 30, 2024 ($6.4 million for the third quarter of 2025, a less than 1% decrease compared to the third quarter of 2024). The decrease in SG&A for the nine months ended September 30, 2025 was primarily driven by lower professional services from lower accruals for estimated legal matters. The decrease in professional services for the three months ended September 30, 2025 was primarily driven by lower accruals for estimated legal matters. The increase in compensation and benefits for the three months ended September 30, 2025 was primarily from higher share based compensation.

Previous 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.

Current wording

Other income (expense), net was $(13.0) million for the nine months ended September 30, 2025 compared to $(27.1) million for the nine months ended September 30, 2024 ($(2.2) million for the third quarter of 2025 and $(9.6) million for the third quarter of 2024). The change for the three and nine months ended September 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 (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.

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 nine months of 2025 compared to the first nine 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.

Previous wording

The following table presents our cash flows for the six months ended June 30:

Current wording

The following table presents our cash flows for the nine months ended September 30:

Previous wording

Cash flows from operating activities generally consist of the cash effects of transactions and events that enter into the determination of net income (loss). For the six months ended June 30, 2025, net cash used in operating activities was $(5.3) million compared to net cash used in operating activities of $(2.1) million for the six months ended June 30, 2024. The increase in cash used in operating activities was driven by a $5.1 million higher use of cash for accounts receivable, prepaid expenses and other current assets and accounts payable and accrued expenses, $7.9 million lower non-cash interest expense and $1.3 million lower non-cash share based compensation, partially offset by $11.7 million higher income (loss) before income taxes and non-controlling interests. Operating cash flows can be negatively impacted because of the nature of some of our services and the mix of services provided. Certain services are performed immediately following or shortly after the referral, but the collection of the receivable does not occur until a specific event occurs (e.g., the foreclosure is complete, the REO asset is sold, etc.). Furthermore, lower margin services generate lower income and cash flows from operations. Consequently, our cash flows from operations may be negatively impacted when comparing one period to another.

Current wording

Cash flows from operating activities generally consist of the cash effects of transactions and events that enter into the determination of net (loss) income. For the nine months ended September 30, 2025, net cash used in operating activities was $(4.6) million compared to net cash used in operating activities of $(3.6) million for the nine months ended September 30, 2024. The increase in cash used in operating activities was driven by a $5.4 million higher use of cash for working capital (accounts receivable, prepaid expenses and other current assets, other assets, and accounts payable and accrued expenses), $12.7 million lower non-cash interest expense and $0.9 million lower non-cash share based compensation, partially offset by an $18.5 million improvement in income (loss) before income taxes and non-controlling interests. Operating cash flows can be negatively impacted because of the nature of some of our services and the mix of services provided. Certain services are performed immediately following or shortly after the referral, but the collection of the receivable does not occur until a specific event occurs (e.g., the foreclosure is complete, the REO asset is sold, etc.). Furthermore, lower margin services generate lower income and cash flows from operations. Consequently, our cash flows from operations may be negatively impacted when comparing one period to another.

Previous wording

Net cash provided by (used in) financing activities was $5.5 million and $(0.8) million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we received $11.3 million in proceeds from the Super Senior Credit Facility, net of the original issuance discount. We used $(1.7) million for debt issuance costs and $(3.4) million related to the issuance of equity, in connection to the Debt Exchange Transaction. During the six months ended June 30, 2025, we used $0.3 million to make scheduled repayments of our senior secured term loan (no comparative amount for the six months ended June 30, 2024). During the six months ended June 30, 2025 and 2024, we made payments of $0.3 million and $0.6 million, respectively, to satisfy employee tax withholding obligations on the issuance of restricted share units (“RSUs”) and restricted shares. These payments were made to tax authorities, at the employees’ direction, to satisfy the employees’ tax obligations rather than issuing a portion of vested restricted share units and restricted shares to employees. In addition, during both the six months ended June 30, 2025 and 2024, we distributed less than $0.1 million to non-controlling interests.

Current wording

Net cash provided by (used in) financing activities was $4.6 million and $(0.6) million for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025, we received $11.3 million in proceeds from the Super Senior Credit Facility, net of the original issuance discount. We used $(1.7) million for debt issuance costs and $(3.8) million related to the issuance of equity, in connection to the Debt Exchange Transaction. During the nine months ended September 30, 2025, we used $0.6 million to make scheduled repayments of our senior secured term loan (no comparative amount for the nine months ended September 30, 2024). During the nine months ended September 30, 2024, we received proceeds from the issuance of short-term debt of $0.3 million in connection with borrowings under the Revolving Loan Agreement (no comparative amount for the nine months ended September 30, 2025). During the nine months ended September 30, 2025 and 2024, we made payments of $0.3 million and $0.7 million, respectively, to satisfy employee tax withholding obligations on the issuance of restricted share units (“RSUs”) and restricted shares. These payments were made to tax authorities, at the employees’ direction, to satisfy the employees’ tax obligations rather than issuing a portion of vested restricted share units and restricted shares to employees. In addition, during the nine months ended September 30, 2025 and 2024, we distributed $0.1 million and less than $0.1 million, respectively, to non-controlling interests.

Previous wording

(1) $158.3 million of the New Facility matures on April 30, 2030 and $1.4 million of the New Facility matures on January 15, 2029.

Current wording

(1) $158.1 million of the New Facility matures on April 30, 2030 and $1.4 million of the New Facility matures on January 15, 2029.

Previous wording

We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate and construction review activities. These amounts are held in escrow and other accounts for limited periods of time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow and other accounts were $41.2 million and $24.9 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate and construction review activities. These amounts are held in escrow and other accounts for limited periods of time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow and other accounts were $52.5 million and $27.1 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

For the six months ended June 30, 2025, there were no significant changes to our contractual obligations from those identified in our Form 10-K for the fiscal year ended December 31, 2024 and this Form 10-Q, other than those that occur in the normal course of business. See Note 21 to the condensed consolidated financial statements.

Current wording

For the nine months ended September 30, 2025, there were no significant changes to our contractual obligations from those identified in our Form 10-K for the fiscal year ended December 31, 2024 and this Form 10-Q, other than those that occur in the normal course of business. See Note 21 to the condensed consolidated financial statements.