Altisource Portfolio Solutions (ASPS, Financial) has announced a reverse stock split, consolidating its shares in a 1-for-8 ratio effective at 12:01 a.m. CET on May 28, 2025. As a result, the company's common stock will adjust for this change when trading begins on the same day on The Nasdaq Global Select Market. The trading symbol, "ASPS," will remain unchanged, though the stock will carry a new CUSIP number, L0175J 138, following the consolidation.
This strategic move aims to help Altisource meet the Nasdaq Global Select Market's minimum bid price requirement, which mandates a minimum value of $1.00 per share for continued listing. The share consolidation will significantly reduce the number of Altisource’s issued and outstanding common shares from approximately 88.95 million to about 11.12 million, aligning with the company's goals for compliance and stabilization.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Altisource Portfolio Solutions SA (ASPS, Financial) is $10.00 with a high estimate of $10.00 and a low estimate of $10.00. The average target implies an upside of 1,104.82% from the current price of $0.83. More detailed estimate data can be found on the Altisource Portfolio Solutions SA (ASPS) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Altisource Portfolio Solutions SA's (ASPS, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ASPS Key Business Developments
Release Date: May 01, 2025
- Service Revenue: $40.9 million, an 11% increase over Q1 2024.
- Adjusted EBITDA: $5.3 million, a 14% increase over Q1 2024.
- Unrestricted Cash: $30.8 million at the end of the quarter.
- Long-term Debt: Reduced by over $60 million to $172.5 million.
- GAAP Interest Expense: $4.9 million, down from $9.5 million in Q1 2024.
- Servicer and Real Estate Segment Revenue: $32.9 million, a 13% increase over Q1 2024.
- Servicer and Real Estate Segment Adjusted EBITDA: $12 million, a 15% increase over Q1 2024.
- Origination Segment Revenue: $8 million, a 3% increase over Q1 2024.
- Corporate Segment Adjusted EBITDA Loss: $7.2 million, a $900,000 increase over Q1 2024.
- Foreclosure Starts: Increased by 25% in Q1 2025 compared to Q1 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Altisource Portfolio Solutions SA reported a 11% year-over-year increase in total company service revenue, reaching $40.9 million.
- Adjusted EBITDA grew by 14% to $5.3 million, outpacing service revenue growth due to scale benefits and a favorable revenue mix.
- The company significantly strengthened its balance sheet by reducing long-term debt by over $60 million and lowering interest expenses.
- The Servicer and Real Estate segment saw a 13% increase in service revenue, driven by the launch and growth of the renovation business and stronger foreclosure starts.
- Altisource Portfolio Solutions SA won new business estimated to generate $4.7 million in annual service revenue, indicating strong sales performance and future growth potential.
Negative Points
- The Corporate segment's adjusted EBITDA loss increased by $900,000 or 15% to $7.2 million, primarily due to non-recurring benefits in the previous year.
- Despite growth in certain areas, the origination segment's adjusted EBITDA remained flat, reflecting challenges in the origination market.
- Foreclosure sales for the first quarter of 2025 declined by 2% compared to last year and are 53% lower than the same period in 2019.
- The origination market continues to face challenges, with first quarter 2025 mortgage origination volume relatively flat compared to the previous year.
- The company faces potential risks from a weakening U.S. economy, which could impact loan delinquencies and foreclosure activities.
