Real estate and mortgage services provider has racked up $363 million in cumulative losses and ended the first quarter with $30.8 million of cash and cash equivalents following a $232.8 million debt restructuring.
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Hubzu operator Altisource Portfolio Solutions will undertake a 1-for-8 reverse stock split on Wednesday to bring the company’s share price back above $1 and prevent delisting from the Nasdaq Global Select Market.
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The reserve stock split, scheduled to be completed before markets open on May 28, was approved by shareholders on May 13. Once complete, the share consolidation will reduce the number of issued and outstanding Altisource common stock shares from 88.95 million to 11.12 million, Altisource announced Friday.
Shares in Altisource, which in the last 12 months have changed hands for as much as $2.03 and as little as 43 cents, closed at 85 cents Friday.
Incorporated in 1999 and headquartered in Luxembourg, Altisource last year trimmed its annual loss by 37 percent, to $35.6 million.
The company has racked up $363 million in cumulative losses through March 31, and ended the first quarter with $30.8 million of cash and cash equivalents following a $232.8 million debt restructuring on Feb. 19 that included the issuance of 58.2 million common shares.
In reporting a $5.3 million Q1 loss on May 1, Altisource said it had grown service revenue by 11 percent from a year ago, to $40.9 million, and generated positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $5.3 million.
Altisource Chairman and CEO William Shepro attributed the growth in revenue and adjusted earnings to the 2024 launch of the company’s renovation business, and stronger foreclosure starts and sales wins.
William Shepro
“To support longer-term growth, we are focusing on accelerating the growth of certain of our businesses that we believe have tailwinds,” Shepro said in a statement. “Should loan delinquencies, foreclosure starts and foreclosure sales increase, we believe we are well-positioned to benefit from stronger revenue and adjusted EBITDA growth in our largest and most profitable countercyclical businesses.”
Altisource’s marketplace business includes the Hubzu online real estate auction platform and real estate auction, real estate brokerage, and asset management services.
Altisource provides solutions to mortgage loan servicers and real estate investors that include property preservation and inspection services, title and settlement services, real estate valuation services, foreclosure trustee services, and residential and commercial construction inspection and risk mitigation services.
The company’s tech offerings for loan servicers and real estate investors include:
- Equator, a platform for managing real estate owned (REO) properties, short sales, foreclosure, bankruptcy and eviction processes
- REALHome Services and Solutions, a national real estate brokerage specializing in institutional sellers and buyers
- RentRange, a single-family rental data, analytics and rent-based valuation solution
- REALSynergy, a commercial loan-servicing platform
- NestRange, an automated valuation model and analytics solution
On the mortgage origination side, Altisource manages the Lenders One Cooperative and provides title and settlement services, real estate valuation services, loan fulfillment, certification and certification insurance services.
Altisource’s tech offerings for mortgage originators include:
- Vendorly, a vendor management platform
- Lenders One Loan Automation (LOLA), a marketplace to order services and a tool to automate loan originations
- TrelixAI, workflow automation for the loan fulfillment, pre- and post-close quality control and service transfer processes.
Most of Altisource’s 1,160 employees as of Dec. 31 were located in India (892), with another 192 based in the U.S. and 68 in Uruguay. Although the company is based in Luxembourg, it only has eight employees there.
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