Altisource Portfolio Solutions S.A. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $40.5 million for the third quarter, marking a 12% increase from $36.2 million in the same period of 2023. This growth was driven by a rise in service revenue, which reached $38.2 million, up from $34.1 million year-over-year. The gross profit for the quarter also saw a substantial increase, rising 68% to $12.1 million, compared to $7.2 million in the prior year, resulting in a gross profit margin of 32%.
Despite the revenue growth, Altisource reported a net loss of $9.3 million for the third quarter, although this was an improvement from the $11.3 million loss recorded in the same quarter of 2023. The basic loss per share decreased to $(0.33) from $(0.51) year-over-year. For the nine months ended September 30, 2024, the net loss was $26.7 million, a 38% reduction from the $43.0 million loss in the same period of 2023.
The company’s total assets decreased to $144.5 million as of September 30, 2024, down from $154.9 million at the end of 2023. Cash and cash equivalents also declined to $28.3 million from $32.5 million over the same period. Accounts receivable increased to $14.2 million, reflecting a growing customer base, particularly from Onity Group Inc., which accounted for 43% of total revenue in the third quarter.
Strategically, Altisource has focused on reducing its cost structure in response to lower revenue levels. The company anticipates increased demand for its default services following the expiration of moratoriums and forbearance plans. The Servicer and Real Estate segment generated $32.5 million in revenue for the quarter, while the Origination segment contributed $8.0 million.
In terms of operational efficiency, Altisource reported a decrease in selling, general, and administrative expenses, which totaled $11.0 million for the third quarter, a slight increase from $10.7 million in the previous year. The company has also made efforts to streamline its operations, resulting in a reduction in costs associated with compensation and benefits.
Overall, Altisource's financial performance reflects a strategic pivot towards enhancing operational efficiency while navigating a challenging market environment. The company continues to leverage its core segments to drive revenue growth and improve profitability.
About ALTISOURCE PORTFOLIO SOLUTIONS S.A.
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