UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
þ(Mark One)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017March 31, 2023
OR
o☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 1-34354
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
(Exact name of Registrantregistrant as specified in its Charter)
Luxembourg98-0554932
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

33, Boulevard Prince Henri
40, avenue Monterey
L-2163L-1724 Luxembourg
Grand Duchy of Luxembourg
(Address of principal executive offices) (Zip Code)

(352) 24 69 79 002060 2055
(Registrant’s telephone number)number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 par valueASPSNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by sectionSection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ☑  Noo☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes þ☑  No o

☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company, (as defined” and “emerging growth company” in Rule 12b-2 of the Exchange Act):
Act.
Large accelerated filer☐Accelerated filer☐
Non-accelerated filer☑Smaller reporting company☑
Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)
Smaller reporting company o
Emerging growth companyo
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided bypursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o☐  Noþ

☑
As of October 20, 2017,April 21, 2023, there were 17,904,73920,814,813 outstanding shares of the registrant’s shares of beneficial interestcommon stock (excluding 7,508,0099,147,935 shares held as treasury stock).


Table of Contents
Table of Contents

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

FORM 10-Q

Page
Page
PART I — Financial Information
Condensed Consolidated Balance Sheets
3
Condensed Consolidated Statements of Operations and Comprehensive IncomeLoss
4
Condensed Consolidated Statements of Equity (Deficit)
5
Condensed Consolidated Statements of Cash Flows
6
Notes to Condensed Consolidated Financial Statements
7
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2

Table of Contents
PART I — FINANCIAL INFORMATION

Item 1. Interim Condensed Consolidated Financial Statements (Unaudited)

ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED BALANCE SHEETSCondensed Consolidated Balance Sheets
(in thousands, except per share data)
March 31,
2023		December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$43,113 $51,025 
Accounts receivable, net14,257 12,989 
Prepaid expenses and other current assets13,061 23,544 
Total current assets70,431 87,558 
Premises and equipment, net3,500 4,222 
Right-of-use assets under operating leases5,107 5,321 
Goodwill55,960 55,960 
Intangible assets, net30,450 31,730 
Deferred tax assets, net5,031 5,048 
Other assets7,104 5,166 
Total assets$177,583 $195,005 
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable and accrued expenses$33,029 $33,507 
Warrant liability7,402 — 
Deferred revenue2,874 3,711 
Other current liabilities2,680 2,867 
Total current liabilities45,985 40,085 
Long-term debt213,879 245,230 
Deferred tax liabilities, net8,806 9,028 
Other non-current liabilities19,310 19,536 
Commitments, contingencies and regulatory matters (Note 21)
Equity (deficit):
Common stock ($1.00 par value; 100,000 shares authorized, 29,963 issued and 20,815 outstanding as of March 31, 2023; 16,129 outstanding as of December 31, 2022)29,963 25,413 
Additional paid-in capital166,704 149,348 
Retained earnings96,243 118,948 
Treasury stock, at cost (9,148 shares as of March 31, 2023 and 9,284 shares as of December 31, 2022)(404,060)(413,358)
Altisource deficit(111,150)(119,649)
Non-controlling interests753 775 
Total deficit(110,397)(118,874)
Total liabilities and deficit$177,583 $195,005 
 September 30,
2017		 December 31,
2016
    
ASSETS
Current assets:   
Cash and cash equivalents$114,123
 $149,294
Available for sale securities46,044
 45,754
Accounts receivable, net63,177
 87,821
Prepaid expenses and other current assets59,880
 42,608
Total current assets283,224
 325,477
    
Premises and equipment, net80,823
 103,473
Goodwill86,283
 86,283
Intangible assets, net128,289
 155,432
Deferred tax assets, net7,214
 7,292
Other assets10,568
 11,255
    
Total assets$596,401
 $689,212
    
LIABILITIES AND EQUITY
Current liabilities:   
Accounts payable and accrued expenses$83,352
 $83,135
Accrued litigation settlement—
 32,000
Current portion of long-term debt5,945
 5,945
Deferred revenue9,746
 8,797
Other current liabilities10,982
 19,061
Total current liabilities110,025
 148,938
    
Long-term debt, less current portion414,431
 467,600
Other non-current liabilities7,796
 10,480
    
Commitments, contingencies and regulatory matters (Note 20)

 

    
Equity:   
Common stock ($1.00 par value; 100,000 shares authorized, 25,413 issued and 17,905 outstanding as of September 30, 2017; 25,413 shares authorized and issued and 18,774 outstanding as of December 31, 2016)25,413
 25,413
Additional paid-in capital111,457
 107,288
Retained earnings342,111
 333,786
Accumulated other comprehensive loss(1,533) (1,745)
Treasury stock, at cost (7,508 shares as of September 30, 2017 and 6,639 shares as of December 31, 2016)(414,668) (403,953)
Altisource equity62,780
 60,789
    
Non-controlling interests1,369
 1,405
Total equity64,149
 62,194
    
Total liabilities and equity$596,401
 $689,212

See accompanying notes to condensed consolidated financial statements.

3
Table of Contents
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOMECondensed Statements of Operations and Comprehensive Loss
(in thousands, except per share data)
Three months ended
March 31,
20232022
Revenue$39,461 $39,516 
Cost of revenue30,957 33,869 
Gross profit8,504 5,647 
Selling, general and administrative expenses12,094 13,974 
Loss from operations(3,590)(8,327)
Other income (expense), net:
Interest expense(6,760)(3,556)
Change in fair value of warrant liability694 — 
Debt amendment costs(3,242)— 
Other income (expense), net1,560 740 
Total other income (expense), net(7,748)(2,816)
Loss before income taxes and non-controlling interests(11,338)(11,143)
Income tax provision(1,529)(886)
Net loss(12,867)(12,029)
Net income attributable to non-controlling interests(80)(161)
Net loss attributable to Altisource$(12,947)$(12,190)
Loss per share:
Basic$(0.70)$(0.76)
Diluted$(0.70)$(0.76)
Weighted average shares outstanding:
Basic18,442 15,956 
Diluted18,442 15,956 
Comprehensive loss:
Comprehensive loss, net of tax$(12,867)$(12,029)
Comprehensive income attributable to non-controlling interests(80)(161)
Comprehensive loss attributable to Altisource$(12,947)$(12,190)
  Three months ended
 September 30,		 Nine months ended
 September 30,
  2017 2016 2017 2016
         
Revenue $234,979
 $252,745
 $726,147
 $758,676
Cost of revenue 174,898
 174,002
 538,244
 517,236
         
Gross profit 60,081
 78,743
 187,903
 241,440
Selling, general and administrative expenses 46,622
 53,886
 146,793
 161,709
         
Income from operations 13,459
 24,857
 41,110
 79,731
Other income (expense), net:        
Interest expense (5,599) (5,952) (16,862) (18,481)
Other income (expense), net 2,497
 (109) 8,015
 2,608
Total other income (expense), net (3,102) (6,061) (8,847) (15,873)
         
Income before income taxes and non-controlling interests 10,357
 18,796
 32,263
 63,858
Income tax provision (2,591) (7,324) (7,615) (12,808)
         
Net income 7,766
 11,472
 24,648
 51,050
Net income attributable to non-controlling interests (805) (883) (2,107) (1,973)
         
Net income attributable to Altisource $6,961
 $10,589
 $22,541
 $49,077
         
Earnings per share:        
Basic $0.39
 $0.57
 $1.23
 $2.63
Diluted $0.38
 $0.54
 $1.20
 $2.49
         
Weighted average shares outstanding:        
Basic 18,023
 18,715
 18,337
 18,669
Diluted 18,429
 19,568
 18,854
 19,738
         
Comprehensive income:        
Net income $7,766
 $11,472
 $24,648
 $51,050
Other comprehensive income (loss), net of tax:        
Unrealized gain (loss) on securities, net of income tax benefit (provision) of $2,054, $(2,070), $(78), $889, respectively (5,530) 5,016
 212
 (2,156)
         
Comprehensive income, net of tax 2,236
 16,488
 24,860
 48,894
Comprehensive income attributable to non-controlling interests (805) (883) (2,107) (1,973)
         
Comprehensive income attributable to Altisource $1,431
 $15,605
 $22,753
 $46,921

See accompanying notes to condensed consolidated financial statements.

4
Table of Contents
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITYCondensed Consolidated Statements of Equity (Deficit)
(in thousands)
 Altisource Equity (Deficit)
Common stockAdditional paid-in capitalRetained earningsTreasury stock, at costNon-controlling interestsTotal
 Shares
Balance, December 31, 202125,413 $25,413 $144,298 $186,592 $(426,445)$1,272 $(68,870)
Net loss— — — (12,190)— 161 (12,029)
Distributions to non-controlling interest holders— — — — — (264)(264)
Share-based compensation expense— — 1,290 — — — 1,290 
Issuance of restricted share units and restricted shares— — — (6,560)6,560 — — 
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances— — — (4,046)3,032 — (1,014)
Balance, March 31, 202225,413 $25,413 $145,588 $163,796 $(416,853)$1,169 $(80,887)
Balance, December 31, 202225,413 $25,413 $149,348 $118,948 $(413,358)$775 $(118,874)
Net loss— — — (12,947)— 80 (12,867)
Distributions to non-controlling interest holders— — — — — (102)(102)
Share-based compensation expense— — 1,445 — — — 1,445 
Issuance of restricted share units and restricted shares— — — (6,058)6,058 — — 
Issuance of common stock, net of issuance costs4,550 4,550 15,911 — — — 20,461 
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances— — — (3,700)3,240 — (460)
Balance, March 31, 202329,963 $29,963 $166,704 $96,243 $(404,060)$753 $(110,397)
 Altisource Equity    
 Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost Non-controlling interests Total
 Shares              
                
Balance, December 31, 201525,413
 $25,413
 $96,321
 $369,270
 $—
 $(440,026) $1,292
 $52,270
Comprehensive income:               
Net income—
 —
 —
 49,077
 —
 —
 1,973
 51,050
Other comprehensive loss, net of tax—
 —
 —
 —
 (2,156) —
 —
 (2,156)
Distributions to non-controlling interest holders—
 —
 —
 —
 —
 —
 (1,637) (1,637)
Share-based compensation expense—
 —
 4,692
 —
 —
 —
 —
 4,692
Exercise of stock options and issuance of restricted shares—
 —
 —
 (58,912) —
 67,788
 —
 8,876
Repurchase of shares—
 —
 —
 —
 —
 (34,321) —
 (34,321)
                
Balance, September 30, 201625,413
 $25,413
 $101,013
 $359,435
 $(2,156) $(406,559) $1,628
 $78,774
                
Balance, December 31, 201625,413
 $25,413
 $107,288
 $333,786
 $(1,745) $(403,953) $1,405
 $62,194
Comprehensive income:               
Net income—
 —
 —
 22,541
 —
 —
 2,107
 24,648
Other comprehensive income, net of tax—
 —
 —
 —
 212
 —
 —
 212
Distributions to non-controlling interest holders—
 —
 —
 —
 —
 —
 (2,143) (2,143)
Share-based compensation expense—
 —
 3,237
 —
 —
 —
 —
 3,237
Cumulative effect of an accounting change (Note 1)—
 —
 932
 (932) —
 —
 —
 —
Exercise of stock options and issuance of restricted shares—
 —
 —
 (11,787) —
 13,871
 —
 2,084
Treasury shares withheld for the payment of tax on restricted share issuances—
 —
 —
 (1,497) —
 409
 —
 (1,088)
Repurchase of shares—
 —
 —
 —
 —
 (24,995) —
 (24,995)
                
Balance, September 30, 201725,413
 $25,413
 $111,457
 $342,111
 $(1,533) $(414,668) $1,369
 $64,149

See accompanying notes to condensed consolidated financial statements.

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Table of Contents
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSCondensed Consolidated Statements of Cash Flows
(in thousands)thousands)
Nine months ended
 September 30,
Three months ended
March 31,
2017 201620232022
   
Cash flows from operating activities: 
  
Cash flows from operating activities:  
Net income$24,648
 $51,050
Adjustments to reconcile net income to net cash provided by operating activities: 
  
Net lossNet loss$(12,867)$(12,029)
Adjustments to reconcile net loss to net cash used in operating activities:Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation and amortization27,411
 27,521
Depreciation and amortization699 958 
Amortization of right-of-use assets under operating leasesAmortization of right-of-use assets under operating leases472 1,144 
Amortization of intangible assets27,143
 36,432
Amortization of intangible assets1,280 1,284 
Change in the fair value of acquisition related contingent consideration24
 (1,174)
Share-based compensation expense3,237
 4,692
Share-based compensation expense1,445 1,290 
Bad debt expense3,101
 763
Bad debt expense40 343 
Gain on early extinguishment of debt(5,419) (5,464)
Amortization of debt discount225
 307
Amortization of debt discount904 166 
Amortization of debt issuance costs625
 850
Amortization of debt issuance costs627 276 
Deferred income taxes—
 17
Deferred income taxes(155)67 
Loss on disposal of fixed assets2,776
 30
Loss on disposal of fixed assets23 — 
Change in fair value of warrant liabilityChange in fair value of warrant liability(694)— 
Changes in operating assets and liabilities: 
  
Changes in operating assets and liabilities:  
Accounts receivable21,543
 3,505
Accounts receivable(1,308)(653)
Prepaid expenses and other current assets(17,272) (10,167)Prepaid expenses and other current assets10,506 (3,558)
Other assets760
 496
Other assets(2,044)143 
Accounts payable and accrued expenses165
 7,005
Accounts payable and accrued expenses(478)(4,515)
Current and non-current operating lease liabilitiesCurrent and non-current operating lease liabilities(465)(1,279)
Other current and non-current liabilities(41,838) (9,828)Other current and non-current liabilities(1,043)(547)
Net cash provided by operating activities47,129
 106,035
Net cash used in operating activitiesNet cash used in operating activities(3,058)(16,910)
   
Cash flows from investing activities: 
  
Cash flows from investing activities:  
Additions to premises and equipment(7,485) (16,525)Additions to premises and equipment— (74)
Acquisition of businesses, net of cash acquired—
 (9,617)
Purchase of available for sale securities—
 (48,219)
Change in restricted cash(73) —
Other investing activities—
 266
Net cash used in investing activities(7,558) (74,095)Net cash used in investing activities— (74)
   
Cash flows from financing activities: 
  
Cash flows from financing activities:  
Repayment and repurchases of long-term debt(48,600) (49,237)
Proceeds from stock option exercises2,084
 8,876
Purchase of treasury shares(24,995) (34,321)
Proceeds from issuance of common stock, net of issuance costsProceeds from issuance of common stock, net of issuance costs20,461 — 
Debt issuance and amendment costsDebt issuance and amendment costs(4,786)— 
Repayments of long-term debtRepayments of long-term debt(20,000)— 
Distributions to non-controlling interests(2,143) (1,637)Distributions to non-controlling interests(102)(264)
Payment of tax withholding on issuance of restricted shares(1,088) —
Payments of tax withholding on issuance of restricted share units and restricted sharesPayments of tax withholding on issuance of restricted share units and restricted shares(460)(1,014)
Net cash used in financing activities(74,742) (76,319)Net cash used in financing activities(4,887)(1,278)
   
Net decrease in cash and cash equivalents(35,171) (44,379)
Cash and cash equivalents at the beginning of the period149,294
 179,327
Net decrease in cash, cash equivalents and restricted cashNet decrease in cash, cash equivalents and restricted cash(7,945)(18,262)
Cash, cash equivalents and restricted cash at the beginning of the periodCash, cash equivalents and restricted cash at the beginning of the period54,273 102,149 
   
Cash and cash equivalents at the end of the period$114,123
 $134,948
Cash, cash equivalents and restricted cash at the end of the periodCash, cash equivalents and restricted cash at the end of the period$46,328 $83,887 
   
Supplemental cash flow information: 
  
Supplemental cash flow information:  
Interest paid$16,203
 $17,244
Interest paid$5,221 $3,090 
Income taxes paid, net15,445
 14,178
Income taxes (refunded) paid, netIncome taxes (refunded) paid, net(4,663)3,257 
Acquisition of right-of-use assets with operating lease liabilitiesAcquisition of right-of-use assets with operating lease liabilities258 29 
Reduction of right-of-use assets from operating lease modifications or reassessmentsReduction of right-of-use assets from operating lease modifications or reassessments— (173)
   
Non-cash investing and financing activities: 
  
Non-cash investing and financing activities:  
Increase in payables for purchases of premises and equipment$52
 $2,458
Net decrease in payables for purchases of premises and equipmentNet decrease in payables for purchases of premises and equipment$— $(62)
Warrants issued in connection with Amended Credit AgreementWarrants issued in connection with Amended Credit Agreement8,096 — 
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets and the unaudited condensed consolidated statements of cash flows:The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets and the unaudited condensed consolidated statements of cash flows:
March 31, 2023March 31, 2022
Cash and cash equivalentsCash and cash equivalents$43,113 $79,952 
Restricted cashRestricted cash3,215 3,935 
Total cash, cash equivalents and restricted cash reported in the statements of cash flowsTotal cash, cash equivalents and restricted cash reported in the statements of cash flows$46,328 $83,887 
See accompanying notes to condensed consolidated financial statements.

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Table of Contents
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements
NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION
Description of Business
Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing market.markets we serve.
Altisource Portfolio Solutions S.A. is organized under the laws of Luxembourg and isWe are publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” We are organized under the laws of the Grand Duchy of Luxembourg.
We conduct our operations through two reportable segments: Servicer and Real Estate and Origination. In addition, we report Corporate and Others separately (See Note 22 for a description of our business segments).
Basis of Accounting and Presentation
The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period.periods. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation.
Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. Prior year comparable period segment disclosures have been restated to conform to the current year presentation. See Note 21 for a description of our business segments.
Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One® (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option).
The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of September 30, 2017,March 31, 2023, Lenders One had total assets of $4.6$1.3 million and total liabilities of $2.0$1.2 million. As of December 31, 2016,2022, Lenders One had total assets of $3.8$1.2 million and total liabilities of $1.5$1.1 million.
These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016,2022, as filed with the SEC on February 16, 2017.March 30, 2023.
Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows:
Level 1 — Quoted prices in active markets for identical assets and liabilities
Level 2— Observable inputs other than quoted prices included in Level 1
Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities
Table of Content
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.
Recently Adopted Accounting Pronouncement
7
The Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, became effective on January 1, 2017. This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard requires companies to recognize all award-related excess tax benefits and tax deficiencies in the income statement, classify any excess tax benefits as an operating activity in the statement of cash flows, limit tax withholding up to the maximum statutory tax rates in order to continue to apply equity accounting rules and classify cash paid by employers when directly withholding shares for tax withholding purposes as an investing activity in the statement of cash flows. The standard also provides companies with the option of estimating forfeitures or recognizing forfeitures as they occur. In connection with the adoption of this standard, the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. This policy election resulted in a cumulative effect adjustment of $0.9 million to retained earnings and additional paid-in capital as of January 1, 2017 using the modified retrospective transition method. There were no other significant impacts of the adoption of this standard on the Company’s results of operations and financial position.
Future Adoption of New Accounting Pronouncements
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of this new standard is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company plans to adopt ASU No. 2014-09 retrospectively with the cumulative effect of initially applying the new standard recognized on the date of the initial application. The new standard will be effective for the Company on January 1, 2018. Based on the Company’s analysis of all sources of revenue from customers for the nine months ended September 30, 2017, the Company estimates that less than 3% of consolidated revenue, primarily related to software development professional services, would likely be deferred and recognized over future periods under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact on its results of operations and financial position.
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This standard will require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The standard also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. It also amends certain financial statement presentation and disclosure requirements associated with the fair value of financial instruments. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. Based on the Company’s analysis of this guidance, upon adoption of ASU No. 2016-01 the Company will reflect changes in the fair value of its available for sale securities in income. These changes in fair value are currently reflected in other comprehensive income. The Company will adopt ASU No. 2016-01 with a cumulative effect adjustment to the balance sheet as of the beginning of the year of adoption. The Company currently has one investment that will be impacted by this standard, its investment in Altisource Residential Corporation (“RESI”) (see Note 4). As of September 30, 2017 and December 31, 2016, the unrealized loss in accumulated other comprehensive loss related to the RESI investment was $1.5 million and $1.7 million, respectively.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard introduces a new lessee model that brings substantially all leases on the balance sheet. The standard will require companies to recognize lease assets and lease liabilities on their balance sheets and disclose key information about leasing arrangements in their financial statements. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application of this standard is permitted. The Company is currently evaluating the impact of this guidance on its results of operations and financial position. Based on the Company’s preliminary analysis of its lease arrangements as of September 30, 2017 where the Company is a lessee, less than $25.0 million, primarily related to office leases, would be recorded as right-of-use assets and
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

lease liabilities on the Company’s balance sheet under the new standard. The Company will continue to analyze the impact of this guidance and refine the estimated impact on its results of operations and financial position.
In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This standard clarifies guidance on principal versus agent considerations in connection with revenue recognition. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.
In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This standard provides guidance on identifying performance obligations in a contract with a customer and clarifying several licensing considerations, including whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time) and guidance on sales-based and usage-based royalties. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.
In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This standard addresses collectability, sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition and completed contracts at transition. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.
In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows.
In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This standard will require that companies recognize the income tax consequences of an intra-entity transfer of an asset (other than inventory) when the transfer occurs. Current guidance prohibits companies from recognizing current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.
In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This standard will require that companies include restricted cash and restricted cash equivalents in their cash and cash equivalent balances in the statement of cash flows. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its statement of cash flows. As of September 30, 2017 and December 31, 2016, restricted cash was $4.2 million and $4.1 million, respectively.
In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The FASB issued 13 technical corrections and improvements to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), including providing optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. The amendments in this standard also expand the information that is required to be disclosed when an entity applies one of the optional exemptions. This standard will be effective for annual periods beginning after December 15, 2017, including interim
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

periods within that reporting period. The Company is currently evaluating the impact this guidance may have on its results of operations and financial position in connection with its adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as described above.
In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This standard clarifies the definition of a business and provides a screen to determine if a set of inputs, processes and outputs is a business. The screen requires that when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired would not be a business. Under the new guidance, in order to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. In addition, the standard narrows the definition of the term “output” so that it is consistent with how it is described in ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.
In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard will simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Current guidance requires that companies compute the implied fair value of goodwill under Step 2 by performing procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. This standard will require companies to perform annual or interim goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This standard will be effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, and will be applied prospectively. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.
In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This standard was issued to clarify the scope of Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, and to add guidance for partial sales of nonfinancial assets. Subtopic 610-20 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, although not prior to annual periods beginning after December 15, 2016. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.
In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This standard provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting. This standard will require companies to continue to apply modification accounting, unless the fair value, vesting conditions and classification of an award all do not change as a result of the modification. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.
In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this standard better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedging results. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application is permitted. The Company currently does not expect the adoption of this guidance to have a material effect on its results of operations and financial position.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

NOTE 2 — CUSTOMER CONCENTRATION
Ocwen
Ocwen Financial Corporation (“Ocwen”(together with its subsidiaries, “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others.
During the three months ended March 31, 2023, Ocwen was our largest customer.customer, accounting for 45% of our total revenue. Ocwen purchases certain mortgage services and technology services from us under the terms of master services agreements and amendments thereto (collectively, the “Ocwen ServiceServices Agreements”) with terms extending through August 2025.2030. Certain of the Ocwen ServiceServices Agreements among other things, contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing. Certainpricing, among other things.
Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced and subserviced by Ocwen when Ocwen engages us as the service provider, and revenue earned directly from Ocwen, pursuant to the Ocwen Service Agreements also prohibitServices Agreements. For the three months ended March 31, 2023 and 2022, we recognized revenue from Ocwen of $17.6 million and $13.7 million, respectively. Revenue from establishing fee-based businesses that would directly or indirectly compete with Altisource’s services with respectOcwen as a percentage of segment and consolidated revenue was as follows:
March 31,
2023		March 31,
2022
Servicer and Real Estate55 %48 %
Origination— %— %
Corporate and Others— %— %
Consolidated revenue45 %35 %
We earn additional revenue related to the Homeward Residential, Inc.portfolios serviced and Residential Capital, LLC servicing portfolios acquiredsubserviced by Ocwen when a party other than Ocwen or the MSRs owner selects Altisource as the service provider. For the three months ended March 31, 2023 and 2022, we recognized revenue of $2.9 million and $2.4 million, respectively, of such revenue. These amounts are not included in deriving revenue from Ocwen and revenue from Ocwen as a percentage of revenue discussed above.
As of March 31, 2023, accounts receivable from Ocwen totaled $4.2 million, $3.5 million of which was billed and $0.7 million of which was unbilled. As of December 201231, 2022, accounts receivable from Ocwen totaled $4.0 million, $3.2 million of which was billed and February 2013, respectively. In addition, Ocwen purchases certain origination services from Altisource under an agreement that continues until January 23, 2019, but$0.8 million of which is subject to a 90 day termination right by Ocwen.was unbilled.
Ocwen has disclosed that on July 23, 2017 it entered into a master agreement and a transfer agreement with New Residential InvestmentRithm
Rithm Capital Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “Rithm”) (formerly New Residential Investment Corp., or “NRZ”) is a real estate investment trust that invests in and manages investments primarily related to undertake certain actions to facilitate the transfer from residential real estate, including MSRs and excess MSRs.
Ocwen to NRZhas disclosed that Rithm is a significant client of Ocwen’s remaining interests in Ocwen’s non-government-sponsored enterprise (“non-GSE”) mortgage servicing rights (“MSRs”)Ocwen’s. As of December 31, 2022, approximately 17% of loans serviced and subservicing relating to approximately $110 billionsubserviced by Ocwen (measured in unpaid principal balance as(“UPB”)) and approximately 68% of June 30, 2017. On August 28, 2017,all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”).
Rithm purchases brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the Company entered intosubservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with NRZ. As a result, we expect that over time NRZ would become our largest customer, potentially representing more than 50% of our revenues.
Revenue from Ocwen primarily consists of revenue earned directly from Ocwen and revenue earned from the loans serviced by Ocwen when Ocwen designates us as the service provider. Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows:
  Three months ended
 September 30,		 Nine months ended
 September 30,
  2017 2016 2017 2016
         
Mortgage Market 68% 65% 68% 65%
Real Estate Market 1% —% 1% —%
Other Businesses, Corporate and Eliminations 7% 25% 11% 24%
Consolidated revenue 58% 56% 58% 56%
terms extending through August 2025.
For the ninethree months ended September 30, 2017March 31, 2023 and 2016,2022, we generatedrecognized revenue from OcwenRithm of $422.1$0.8 million and $422.2$0.9 million, respectively, ($136.4under the Brokerage Agreement. For the three months ended March 31, 2023 and 2022, we recognized additional revenue of $3.3 million and $141.6$3.7 million, for the third quarter of 2017 and 2016, respectively). Services provided to Ocwen during such periods and reported in the Mortgage Market segment included real estate asset management and sales, residential property valuation, trustee management services, property preservation and inspection services, insurance services, mortgage charge-off collections and certain software applications. Services provided to Ocwen and reported in the Real Estate Market segment included rental property management. Services provided to Ocwen and reported as Other Businesses, Corporate and Eliminations included information technology (“IT”) infrastructure management. As of September 30, 2017, accounts receivable from Ocwen totaled $23.7 million, $18.9 million of which was billed and $4.8 million of which was unbilled. As of December 31, 2016, accounts receivable from Ocwen totaled $26.2 million, $15.8 million of which was billed and $10.4 million of which was unbilled.
We earn additional revenue relatedrespectively, relating to the portfolios serviced by OcwenSubject MSRs when a party other than Ocwen or NRZ selects Altisource as the service provider. For the nine months ended September 30, 2017 and 2016, we recognized revenue of $118.0 million and $146.0 million, respectively ($35.1 million and $48.0 million for the third quarter of 2017 and 2016, respectively), related to the portfolios serviced by Ocwen when a party other than Ocwen or NRZ selected Altisource as the service provider. These amounts are not included in deriving revenue from Ocwen as a percentage of revenue in the table above.
We earned revenue from NRZ of $0.8 million related to the MSRs transferred by Ocwen to NRZ in the third quarter of 2017. We earned additional revenue of $1.0 million in the third quarter of 2017 related to the MSRs transferred by Ocwen to NRZ when a party other than NRZRithm selects Altisource as the service provider.
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NOTE 3— ACQUISITION
Granite Acquisition
On July 29, 2016, we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for $9.5 million in cash. Granite provides residential and commercial loan disbursement processing, risk mitigation
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Notes to Condensed Consolidated Financial Statements (Continued)

and construction inspection services to lenders. The Granite acquisition is not material in relation to the Company’s results of operations or financial position.
The final allocation of the purchase price is as follows:
(in thousands)  
   
Accounts receivable, net $1,024
Prepaid expenses 22
Other assets 25
Premises and equipment, net 299
Non-compete agreements 100
Trademarks and trade names 100
Customer relationships 3,400
Goodwill 4,827
  9,797
Accounts payable and accrued expenses (57)
Other current liabilities (192)
   
Purchase price $9,548
NOTE 4 — AVAILABLE FOR SALE SECURITIES
During the nine months ended September 30, 2016, we purchased 4.1 million shares of RESI common stock for $48.2 million. This investment is classified as available for sale and reflected in the condensed consolidated balance sheets at fair value at the respective balance sheet dates ($46.0 million as of September 30, 2017 and $45.8 million as of December 31, 2016). Unrealized gains and losses on available for sale securities are reflected in other comprehensive income, unless there is an impairment that is other than temporary. In the event that a decline in market value is other than temporary, we would record a charge to earnings and a new cost basis in the investment would be established. During the nine months ended September 30, 2017 and 2016, we earned dividends of $1.9 million and $1.0 million, respectively ($0.6 million for the third quarter of 2017 and no comparative amount for the third quarter of 2016), related to this investment. In addition, during the nine months ended September 30, 2016, we incurred expenses of $3.4 million (no comparative amounts in 2017 and the third quarter of 2016) related to this investment.
NOTE 53 — ACCOUNTS RECEIVABLE, NET
Accounts receivable, net consists of the following:
(in thousands) September 30,
2017		 December 31,
2016		(in thousands)March 31,
2023		December 31,
2022
    
Billed $48,108
 $58,392
Billed$11,702 $11,993 
Unbilled 23,951
 39,853
Unbilled6,760 5,359 
 72,059
 98,245
18,462 17,352 
Less: Allowance for doubtful accounts (8,882) (10,424)
Less: Allowance for credit lossesLess: Allowance for credit losses(4,205)(4,363)
    
Total $63,177
 $87,821
Total$14,257 $12,989 
Unbilled receivablesaccounts receivable consist primarily of certain real estate asset management, REO sales, title and salesclosing services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, and default managementforeclosure trustee services, for which we generally recognize revenues over the service delivery period but bill following completion of the service. We also include amounts in unbilled receivablesaccounts receivable that are earned during a month and billed in the following month.
TableWe are exposed to credit losses through our sales of Contentproducts and services to our customers which are recorded as accounts receivable, net on the Company’s condensed consolidated financial statements. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. Estimated credit losses are written off in the period in which the financial asset is determined to be no longer collectible. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to our allowance for credit losses.
ALTISOURCE PORTFOLIO SOLUTIONS S.A.Changes in the allowance for expected credit losses consist of the following:
Notes
Additions
(in thousands)Balance at Beginning of PeriodCharged to Expenses
Deductions Note(1)
Balance at End of Period
Allowance for expected credit losses:
Three months ended March 31, 2023$4,363 $40 $198 $4,205 
Three months ended March 31, 20225,297 343 829 4,811 

(1)    Amounts written off as uncollectible or transferred to Condensed Consolidated Financial Statements (Continued)
other accounts or utilized.

NOTE 64 — PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets consist of the following:
(in thousands)March 31,
2023		December 31,
2022
Prepaid expenses$4,455 $5,165 
Income taxes receivable1,432 7,031 
Maintenance agreements, current portion1,304 1,498 
Indemnity escrow receivable from Pointillist sale3,223 3,223 
Restricted cash23 — 
Surety bond collateral— 4,000 
Other current assets2,624 2,627 
Total$13,061 $23,544 
9
(in thousands) September 30,
2017		 December 31,
2016
     
Short-term investments in real estate $24,644
 $13,025
Income taxes receivable 13,219
 5,186
Prepaid expenses 7,712
 6,919
Maintenance agreements, current portion 4,658
 6,590
Litigation settlement insurance recovery —
 4,000
Other current assets 9,647
 6,888
     
Total $59,880
 $42,608
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
NOTE 75 — PREMISES AND EQUIPMENT, NET
Premises and equipment, net consists of the following:
(in thousands) September 30,
2017		 December 31,
2016		(in thousands)March 31,
2023		December 31,
2022
    
Computer hardware and software $175,512
 $164,877
Computer hardware and software$46,859 $49,339 
Leasehold improvementsLeasehold improvements2,457 5,794 
Furniture and fixturesFurniture and fixtures1,346 3,832 
Office equipment and other 12,077
 20,188
Office equipment and other262 346 
Furniture and fixtures 13,826
 13,997
Leasehold improvements 33,570
 33,808
 234,985
 232,870
50,924 59,311 
Less: Accumulated depreciation and amortization (154,162) (129,397)Less: Accumulated depreciation and amortization(47,424)(55,089)
    
Total $80,823
 $103,473
Total$3,500 $4,222 
Depreciation and amortization expense totaled $27.4amounted to $0.7 million and $27.5$1.0 million for the ninethree months ended September 30, 2017March 31, 2023 and 2016,2022, respectively, ($8.5 million and $9.2 million for the third quarter of 2017 and 2016, respectively). These expenses areis included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive income.loss.
Premises and equipment, net consist of the following, by country:
(in thousands)March 31,
2023		December 31,
2022
Luxembourg$2,117 $2,455 
India960 1,129 
United States376 586 
Uruguay47 52 
Total$3,500 $4,222 
NOTE 86 — RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET
Right-of-use assets under operating leases, net consists of the following:
(in thousands)March 31,
2023		December 31,
2022
Right-of-use assets under operating leases$12,063 $11,808 
Less: Accumulated amortization(6,956)(6,487)
Total$5,107 $5,321 
Amortization of operating leases was $0.5 million and $1.1 million for the three months ended March 31, 2023 and 2022, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive loss.
NOTE 7 — GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
The following is a summary of goodwill by segment:
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Total(in thousands)Servicer and Real EstateOriginationCorporate and OthersTotal
        
Balance as of September 30, 2017 and December 31, 2016 $73,259
 $10,056
 $2,968
 $86,283
Balance as of March 31, 2023 and December 31, 2022Balance as of March 31, 2023 and December 31, 2022$30,681 $25,279 $— $55,960 
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

Intangible assets,Assets, net
Intangible assets, net consist of the following:
 
Weighted average estimated useful life
(in years)
 Gross carrying amount Accumulated amortization Net book value
Weighted average estimated useful life
(in years)
Gross carrying amountAccumulated amortizationNet book value
(in thousands) September 30,
2017		 December 31,
2016		 September 30,
2017		 December 31,
2016		 September 30,
2017		 December 31,
2016		(in thousands)March 31,
2023		December 31,
2022		March 31,
2023		December 31,
2022		March 31,
2023		December 31,
2022
            
Definite lived intangible assets:            Definite lived intangible assets:
Trademarks and trade names 13 $15,354
 $15,354
 $(8,630) $(7,724) $6,724
 $7,630
Customer related intangible assets 10 277,828
 277,828
 (181,019) (156,980) 96,809
 120,848
Customer related intangible assets9$214,307 $214,307 $(198,343)$(197,594)$15,964 $16,713 
Operating agreement 20 35,000
 35,000
 (13,424) (12,104) 21,576
 22,896
Operating agreement2035,000 35,000 (23,042)(22,604)11,958 12,396 
Non-compete agreements 4 1,560
 1,560
 (799) (507) 761
 1,053
Intellectual property 10 300
 300
 (108) (85) 192
 215
Other intangible assets 5 3,745
 3,745
 (1,518) (955) 2,227
 2,790
Trademarks and trade namesTrademarks and trade names169,709 9,709 (7,181)(7,088)2,528 2,621 
            
Total $333,787
 $333,787
 $(205,498) $(178,355) $128,289
 $155,432
Total$259,016 $259,016 $(228,566)$(227,286)$30,450 $31,730 
Amortization expense for definite lived intangible assets was $27.1$1.3 million and $36.4$1.3 million for the ninethree months ended September 30, 2017March 31, 2023 and 2016, respectively ($8.6 million and $11.5 million for the third quarter of 2017 and 2016, respectively). Anticipated2022, respectively. Forecasted annual definite lived intangible asset amortization expense for 20172023 through 20212027 is $34.6$5.1 million, $26.2$5.1 million, $21.8$5.1 million, $18.2$4.9 million and $12.3$4.7 million, respectively.
NOTE 98 — OTHER ASSETS
Other assets consist of the following:
(in thousands)March 31,
2023		December 31,
2022
Restricted cash$3,192 $3,248 
Security deposits600 596 
Other3,312 1,322 
Total$7,104 $5,166 
(in thousands) September 30,
2017		 December 31,
2016
     
Security deposits $5,164
 $5,508
Restricted cash 4,200
 4,127
Maintenance agreements, non-current portion 503
 853
Other 701
 767
     
Total $10,568
 $11,255
NOTE 109 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accounts payable and accrued expenses consist of the following:
(in thousands) September 30,
2017		 December 31,
2016
     
Accounts payable $12,251
 $8,787
Accrued salaries and benefits 42,312
 47,614
Accrued expenses - general 28,789
 26,426
Income taxes payable —
 308
     
Total $83,352
 $83,135
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

(in thousands)March 31,
2023		December 31,
2022
Accounts payable$14,147 $14,981 
Accrued expenses - general11,766 11,858 
Accrued salaries and benefits5,116 5,501 
Income taxes payable2,000 1,167 
Total$33,029 $33,507 
Other current liabilities consist of the following:
(in thousands)March 31,
2023		December 31,
2022
Operating lease liabilities$2,157 $2,097 
Other523 770 
Total$2,680 $2,867 
11
(in thousands) September 30,
2017		 December 31,
2016
     
Unfunded cash account balances $5,054
 $7,137
Other 5,928
 11,924
     
Total $10,982
 $19,061
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
NOTE 10 — WARRANT LIABILITY
On February 14, 2023, the lenders under the Amended Credit Agreement (See Note 11 for additional information) received warrants (the “Warrants”) to purchase 3,223,851 shares of Altisource common stock (the “Warrant Shares”). The number of Warrant Shares is subject to reduction based on the amount of par paydowns on the senior secured term loans (“SSTL”) in the aggregate using proceeds from issuances of equity interests or from junior indebtedness made prior to February 14, 2024 (“Aggregate Paydowns”) as set forth in the table below.
Aggregate PaydownsWarrant Shares
Less than $20 million3,223,851
$20 million+ but less than below2,578,743
$30 million+1,612,705
During the three months ended March 31, 2023, the Company made payments toward the determination of Aggregate Paydowns of $20 million. As a result, the number of Warrant Shares as of March 31, 2023 is 2,578,743.
The exercise price per share of common stock under each Warrant is equal to $0.01. The Warrants may be exercised at any time on and after February 14, 2024 and prior to their expiration date. The Warrants are exercisable on a cashless basis and are subject to customary anti-dilution provisions. The Warrants, if not previously exercised or terminated, will be automatically exercised on May 22, 2027. The Warrants are subject to a lock-up agreement, subject to customary exceptions, ending two business days after the Paydown Measurement Date.
The Company determined that the Warrants are free standing financial instruments that are legally detachable and separately exercisable from term loans under the Amended Credit Agreement. The Company also determined that the Warrants are not considered to be indexed to the Company’s stock because the number of Warrant Shares varies based on Aggregate Paydowns and as such required classification as a liability pursuant to ASC 815-40, Derivatives and Hedging–Contracts in Entity’s Own Equity. The outstanding Warrants are recognized as a warrant liability on the balance sheet and are measured at their inception date fair value and subsequently re-measured at each reporting period with changes being recorded as a component of other income (expense) in the statement of operations.
The fair value of the warrant liability is based on the number of Warrant Shares that are expected to be exercisable on and after February 14, 2024 and the Altisource share price less $0.01 at the measurement date.
The fair value of the warrant liability at each of the respective valuation dates is summarized below:
 Warrant LiabilityWarrant Shares based on Aggregate PaydownsExpected Warrant Shares that will be exercisable on February 14, 2024Fair Value per Warrant ShareFair Value
(in thousands)
Fair value at initial measurement date of February 14, 20233,223,8511,612,705$5.02$8,096 
Gain on change in fair value of warrant liability(694)
Fair value at March 31, 20232,578,7431,612,705$4.59$7,402 
During the three months ended March 31, 2023, the Company recorded a gain on changes in fair value of warrant liability of $0.7 million. During the three months ended March 31, 2022, there were no warrant liabilities outstanding.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
NOTE 11 — LONG-TERM DEBT
Long-term debt consists of the following:
(in thousands)March 31,
2023		December 31,
2022
Senior Secured Term Loans$227,204 $247,204 
Less: Debt issuance and amendment costs, net(5,070)(878)
Less: Unamortized discount, net(8,025)(833)
Net Senior secured term loans214,109 245,493 
Revolver— — 
Less: Debt issuance costs, net(230)(263)
Net Revolver(230)(263)
Total Long-term debt$213,879 $245,230 
(in thousands) September 30,
2017		 December 31,
2016
     
Senior secured term loan $425,067
 $479,653
Less: Debt issuance costs, net (3,445) (4,486)
Less: Unamortized discount, net (1,246) (1,622)
Net long-term debt 420,376
 473,545
Less: Current portion (5,945) (5,945)
     
Long-term debt, less current portion $414,431
 $467,600
Senior Secured Term Loans
On November 27, 2012, Altisource Solutions S.à r.l., a wholly-owned subsidiary ofIn April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a senior secured term loancredit agreement with Bank of America, N.A.Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders.lenders (the “Credit Agreement”). Under the Credit Agreement, Altisource borrowed $412 million in the form of SSTL. Effective February 14, 2023, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. entered into Amendment No. 2 to the Credit Agreement (as amended by Amendment No. 2, the “Amended Credit Agreement”). Altisource Portfolio Solutions S.A. and certain subsidiaries are guarantors of the term loanSSTL (collectively, the “Guarantors”). We subsequently entered into three amendments
The maturity date of the SSTL under the Amended Credit Agreement is April 30, 2025. If Aggregate Paydowns are equal to or greater than $30 million, then (subject to the senior secured term loan agreement to increase the principal amountrepresentations and warranties being true and correct as of the senior secured term loansuch date and among other changes, re-establish the $200.0 million incremental term loan facility accordion, lower the interest rate, extendthere being no default or event of default being in existence as of such date) the maturity date by approximately one year and increaseof the maximum amountSSTL may be extended at the Company’s option to April 30, 2026. Such extension is conditioned upon the Company’s payment of Restricted Junior Payments (as defined ina 2% payment-in-kind extension fee.
In February 2023, the senior secured term loan agreement; other capitalized terms, unless defined herein, are defined inCompany made payments of $20 million toward the senior secured term loan agreement).determination of Aggregate Paydowns.
After giving effect to the third amendment entered into on August 1, 2014, the term loan must be repaid in equal consecutive quarterly principal installments of $1.5 million, with the balance due at maturity. All amounts outstanding under the senior secured term loan agreementSSTL will become due on the earlier of (i) December 9, 2020the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Amended Credit Agreement; other capitalized terms, unless defined herein, are defined in the Amended Credit Agreement) or as otherwise provided in the senior secured term loan agreementAmended Credit Agreement upon the occurrence of any event of default underdefault. There are no mandatory repayments of the senior secured term loan agreement.SSTL except as set forth herein until the April 30, 2025 maturity when the balance is due.
In addition to the scheduled principal payments, subject to certain exceptions, the term loanSSTL is subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as from a percentage50% of Consolidated Excess Cash Flow, if the leverage ratio is greater than 3.00 to 1.00, as calculated in accordance with the provisions of the senior secured term loan agreement (the percentage increases ifAmended Credit Agreement.
Altisource may incur incremental indebtedness under the leverage ratio exceeds 3.50 to 1.00). No mandatory prepayments were owed for the nine months ended September 30, 2017.
During the nine months ended September 30, 2017, we repurchased portions of our senior secured term loan withAmended Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate par value of $50.1incremental principal amount not to exceed $50 million, at a weighted average discount of 12.2%, recognizing a net gain of $5.4 million on the early extinguishment of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5%, recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017). During the nine months ended September 30, 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt (no repurchasessubject to certain conditions set forth in the third quarter of 2016).Amended Credit Agreement. The lenders have no obligation to provide any incremental indebtedness.
The term loanThrough March 29, 2023, the SSTL’s interest rate was the Adjusted Eurodollar Rate plus 4.00%. Beginning March 30, 2023, the SSTL bears interest at rates based upon, at our option, the Adjusted EurodollarSecured Ovnernight Financing Rate (“SOFR”) or the Base Rate. Adjusted EurodollarSOFR term loans initially bear interest at a rate per annum equal to SOFR plus 5.00% payable in cash plus 5.00% payable in kind (“PIK”). Base Rate loans initially bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Adjusted EurodollarBase Rate for the applicable interest period and (y) 1.00% plus (ii) a 3.50% margin.4.00% payable in cash plus 5.00% PIK. Base Rate term loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Base Rate and (y) 2.00% plus (ii) a 2.50% margin.4.00%. The interest rate at September 30, 2017as of March 31, 2023 was 4.74%14.49%. The PIK component of the interest rate is subject to adjustment based on the amount of Aggregate Paydowns as set forth in the table below. Based on Aggregate Paydowns of $20 million through March 31, 2023, the PIK component of the interest rate declined to 4.50%.
Term loan payments are
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
Aggregate PaydownsPIK Component of Interest Rate
Less than $20 million5.00%
$20 million+ but less than below4.50%
$30 million+ but less than below3.75%
$40 million+ but less than below3.50%
$45 million+ but less than below3.00%
$50 million+ but less than below2.50%
$55 million+ but less than below2.00%
$60 million+ but less than below1.00%
$65 million+ but less than below0.50%
$70 million+0.00%
If, as of the end of any calendar quarter, (i) the amount of unencumbered cash and cash equivalents of Altisource S.à r.l. and its direct and indirect subsidiaries on a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast as of the end of the immediately subsequent calendar quarter to be, less than $35 million, then up to 2.00% in interest otherwise payable in cash in the following quarter may be paid in kind at the Company’s election.
The payment of all amounts owing by Altisource under the Amended Credit Agreement is guaranteed by the Guarantors and areis secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource Solutions S.à r.l. and the Guarantors, subject to certain exceptions.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

The senior secured term loan agreementAmended Credit Agreement includes covenants that restrict or limit, among other things, our ability, to: createsubject to certain exceptions and baskets, to incur indebtedness; incur liens and encumbrances; incur additional indebtedness;on our assets; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; change linesmake investments; dispose of business;equity interests of any Material Subsidiaries; engage in a line of business substantially different than existing businesses and businesses reasonably related, complimentary or ancillary thereto; amend material debt agreements or other material contracts; engage in certain transactions with affiliates; enter into sale/leaseback transactions; grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions; make changes to our fiscal yearyear; and engage in mergers and consolidations.
The senior secured term loan agreementAmended Credit Agreement contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the senior secured term loan agreementAmended Credit Agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described in the Amended Credit Agreement, (iv) failure to pay principal or interest on any other debt that equals or exceeds $40.0$5.0 million when due, (v) default on any other debt that equals or exceeds $40.0$5.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events, (viii) entry by a court of one or more judgments against us in an aggregate amount in excess of $40.0$10.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events, and (x) the failure of certain Loan Documents to be in full force and effect.effect and (xi) failure to comply in any material respects with the terms of the Warrants or the Warrant Purchase Agreement. If any event of default occurs and is not cured within applicable grace periods set forth in the senior secured term loan agreementCredit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated.
The lenders under the Amended Credit Agreement received Warrants to purchase 3,223,851 shares of Altisource common stock. The number of Warrant Shares is subject to reduction based on the amount of Aggregate Paydowns (See Note 10 for additional information).
The fair value of the Warrants on February 14, 2023 was $8.1 million and was recorded as an increase in debt discount. In connection with Amendment No. 2, the Company paid $4.8 million to the lenders and to third parties on behalf of the lenders. The $4.8 million payment was recorded as an increase in debt issuance and amendment costs. In connection with Amendment No. 2, the Company paid $3.2 million to advisors and recorded these payments as other expense in the condensed consolidated statements of operations and comprehensive loss.
Deer Park Road Management Company, LP (“Deer Park”), a related party, owns approximately 20% of Altisource’s common stock and $44.7 million of Altisource debt under the Amended Credit Agreement as of March 31, 2023. Deer Park’s Chief Investment Officer and managing partner was a member of Altisource’s Board of Directors until his resignation on March 1, 2022. The replacement director appointed by the Board of Directors is a current employee of Deer Park. In connection with
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
the Amended Credit Agreement, Deer Park received 583 thousand Warrants. During the three months ended March 31, 2023, Deer Park received interest of $0.9 million from the Altisource SSTL.
As of September 30, 2017,March 31, 2023, debt issuance and amendment costs were $3.4$5.1 million, net of $6.8$4.2 million of accumulated amortization. As of December 31, 2016,2022, debt issuance costs were $4.5$0.9 million, net of $5.8$3.6 million of accumulated amortization.
Revolver
On June 22, 2021 Altisource S.à r.l, a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with STS Master Fund, Ltd. (“STS”) (the “Revolver”). STS is an investment fund managed by Deer Park.
The Revolver was amended effective February 14, 2023 (the “Amended Revolver”). Under the terms of the Amended Revolver, STS will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans at any time. The Amended Revolver provides Altisource the ability to borrow a maximum amount of $15.0 million. Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below.
The maturity date of the Amended Revolver coincides with the maturity date of the SSTL under the Amended Credit Agreement, as it may be extended. The outstanding balance on the Amended Revolver is due and payable on such maturity date.
Borrowings under the Amended Revolver bear interest of 10.00% per annum in cash and 3.00% per annum PIK and are payable quarterly on the last business day of each March, June, September and December. In connection with the Amended Revolver, Altisource is required to pay a usage fee equal to $0.75 million at the initial extension of credit pursuant to the Amended Revolver.
Altisource’s obligations under the Amended Revolver are secured by a first-priority lien on substantially all of the assets of the Company, which lien will be pari passu with liens securing the SSTL under the Amended Credit Agreement.
The Amended Revolver contains additional representations, warranties, covenants, terms and conditions customary for transactions of this type, that restrict or limit, among other things, our ability to use the proceeds of credit only for general corporate purposes.
The Amended Revolver contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Revolver within three business days of becoming due, (ii) failure to perform or observe any material provisions of the Amended Revolver Documents to be performed or complied with and such failure continues for a period of 30 days after written notice is given by the Lender to the Borrower, (iii) material incorrectness of representations and warranties when made, (iv) default on any other debt that equals or exceeds $40.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (v) entry by a court of one or more judgments against us in an aggregate amount in excess of $40.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events. If any event of default occurs and is not cured within applicable grace periods set forth in the Amended Revolver or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated.
As of March 31, 2023 and December 31, 2022, there was no outstanding debt under the Amended Revolver and Revolver, respectively. As of March 31, 2023 and December 31, 2022, debt issuance costs were $0.2 million, net of $0.3 million of accumulated amortization, and $0.3 million, net of $0.3 million of accumulated amortization, respectively.
NOTE 12 — OTHER NON-CURRENT LIABILITIES
Other non-current liabilities consist of the following:
(in thousands)March 31,
2023		December 31,
2022
Income tax liabilities$16,145 $16,079 
Operating lease liabilities3,104 3,371 
Deferred revenue56 82 
Other non-current liabilities5 4 
Total$19,310 $19,536 
15
(in thousands) September 30,
2017		 December 31,
2016
     
Deferred revenue $3,369
 $5,680
Other non-current liabilities 4,427
 4,800
     
Total $7,796
 $10,480
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
NOTE 13 — FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of September 30, 2017March 31, 2023 and December 31, 2016.2022. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:
 September 30, 2017 December 31, 2016March 31, 2023December 31, 2022
(in thousands) Carrying amount Fair value Carrying amount Fair value(in thousands)Carrying amountFair valueCarrying amountFair value
   Level 1 Level 2 Level 3   Level 1 Level 2 Level 3Level 1Level 2Level 3Level 1Level 2Level 3
Assets:                Assets:
Cash and cash equivalents $114,123
 $114,123
 $—
 $—
 $149,294
 $149,294
 $—
 $—
Cash and cash equivalents$43,113 $43,113 $— $— $51,025 $51,025 $— $— 
Restricted cash 4,200
 4,200
 —
 —
 4,127
 4,127
 —
 —
Restricted cash3,215 3,215 — — 3,248 3,248 — — 
Available for sale securities 46,044
 46,044
 —
 —
 45,754
 45,754
 —
 —
Short-term receivableShort-term receivable3,223 — — 3,223 3,223 — — 3,223 
                
Liabilities:                Liabilities:
Acquisition contingent consideration 401
 —
 —
 401
 376
 —
 —
 376
Long-term debt 425,067
 —
 399,563
 —
 479,653
 —
 474,856
 —
Warrant liabilityWarrant liability7,402 — — 7,402 — — — — 
Senior secured term loansSenior secured term loans227,204 — 179,775 — 247,204 — 200,235 — 
Fair Value Measurements on a Recurring Basis
Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid nature of these instruments and were measured using Level 1 inputs.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

Available for sale securities are carried at fair value and consist of 4.1 million shares of RESI common stock. Available for sale securities are measured using Level 1 inputs as these securities have quoted prices in active markets.
The fair value of our long-term debtSSTL is based on quoted market prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs.
In accordance with ASC Topic 805, Business Combinations, liabilities for contingent consideration are reflected at fair value and adjusted each reporting periodconnection with the change in fair value recognized in earnings. Liabilities for acquisition related contingent consideration weresale of Pointillist on December 1, 2021, $3.5 million was deposited into an escrow account to satisfy certain indemnification claims that may arise on or prior to the first anniversary of the sale closing. The deposit was recorded in connection with acquisitions in prior years.as a short-term receivable. We measure the liabilities for acquisition related contingent consideration using Level 3 inputs as they are determinedshort-term receivables without a stated interest rate based on the present value of the future estimated payments, which include sensitivities pertainingpayments.
Warrant liability is carried at fair value. The fair value of the warrant liability is based on the number of Warrant Shares that are expected to discount ratesbe exercisable and financial projections.the Altisource share price less $0.01 at the measurement date. The Warrant liability is measured using Level 3 inputs as the determination of fair value includes various assumptions of future Aggregate Paydowns (see Note 10 for additional information).
There were no transfers between different levels during the periods presented.
Concentrations of Credit Risk
Financial instruments that subject us to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. Our policy is to deposit our cash and cash equivalents with larger, highly rated financial institutions. The Company derives the largest portionderived 45% of its revenuesrevenue from Ocwen for the three months ended March 31, 2023 (see Note 2 for additional information on Ocwen revenues and accounts receivable balance). The Company mitigatesstrives to mitigate its concentrations of credit risk with respect to accounts receivable by actively monitoring past due accounts and the economic status of larger customers, if known.
NOTE 14 — SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION
Share Repurchase Program
On May 17, 2017,15, 2018, our shareholders approved the renewal and replacement of the share repurchase program previously approved by the shareholders on May 18, 2016, which replaced the previous share repurchase program.17, 2017. Under the program, we are authorized to purchase up to 4.64.3 million shares of our common stock, based on a limit of 25% 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 $500.00 per share, for a period of five years from the date of approval. Under the existing and prior programs, we purchased 1.1 million shares of common stock at an average price of $22.48 per share during the nine months ended September 30, 2017 and 1.3 million shares at an average price of $26.94 per share during the nine months ended September 30, 2016 (0.3 million shares at an average price of $23.48 per share for the third quarter of 2017 and 0.5 million shares at an average price of $28.68 per share for the third quarter of 2016). As of September 30, 2017,March 31, 2023, approximately 3.92.4 million shares of common stock remain available for repurchase under the program. Our senior secured term loanThere were no purchases of shares of common stock during the three months ended March 31, 2023 and 2022. Luxembourg law limits share repurchases to the amountbalance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of March 31, 2023, we can spendrepurchase up to approximately $64 million of our common stock under Luxembourg law. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
Public offering of Common Stock
On February 14, 2023, Altisource closed on an underwritten public offering to sell 4,550,000 shares of its common stock, at a price of $5.00 per share, repurchases, which was approximately $403generating net proceeds of $20.5 million, as of September 30, 2017,after deducting the underwriting discounts and may prevent repurchases in certain circumstances.commissions and other offering expenses.
Share-Based Compensation
We issue share-based awards in the form of stock options, restricted shares and restricted sharesshare units for certain employees, officers and directors. We recordedrecognized share-based compensation expense of $3.2$1.4 million and $4.7$1.3 million for the ninethree months ended September 30, 2017March 31, 2023 and 2016, respectively ($1.4 million and $1.1 million for the third quarter of 2017 and 2016, respectively).2022, respectively. As of September 30, 2017,March 31, 2023, estimated unrecognized compensation costs related to share-based awards amounted to $9.4$5.1 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 2.151.58 years.
In connection with the January 1, 2017 adoption of FASB ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (see Note 1), the Company made an accounting policy election to account for forfeitures in compensation expense as they occur, rather than continuing to apply the Company’s previous policy of estimating forfeitures. Prior to this accounting change, share-based compensation expense for stock options and restricted shares was recorded net of estimated forfeiture rates ranging from 0% to 40%.
Stock Options
Stock option grants are composed of a combination of service-based, market-based and performance-based options.
Service-Based Options. These options generally vest over three or four years with equal annual vesting and generally expire on the earlier of ten years after the date of grant or following termination of service. A total of 736188 thousand service-based awardsoptions were outstanding as of September 30, 2017.March 31, 2023.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

Market-Based Options. These option grants generally have two components, each of which vests only upon the achievement of certain criteria. The first component, which we refer to as “ordinary performance” grants, generally consists of two-thirds of the market-based grant and begins to vest if the stock price is at least double the exercise price, as long as the stock price realizes a compounded annual gain of at least 20% over the exercise price. The remaining third of the market-based options, which we refer to as “extraordinary performance” grants, generally begins to vest if the stock price is at least triple the exercise price, as long as the stock price realizes a compounded annual gain of at least 25% over the exercise price. Market-based awardsoptions vest in three or four year installments with the first installment vesting upon the achievement of the criteria and the remaining installments vesting thereafter in equal annual installments. Market-based options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service or in the final three years of the option term, in which case vesting will generally continue in accordance with the provisions of the award agreement. A total of 93596 thousand market-based awardsoptions were outstanding as of September 30, 2017.March 31, 2023.
Performance-Based Options.These option grants begin togenerally will vest upon the achievement ofif certain specific financial measures. Generally, the awards begin vesting if the performance criteriameasures are achieved; one-third vesttypically with one-fourth vesting on each anniversary of the grant date. For certain other financial measures, awards cliff-vest upon the achievement of the specific performance during the period from 2017 through 2021. The award of performance-based options is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is above threshold performance levels, participants generally have the opportunity to vest in 70%50% to 150%200% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the award isoptions are canceled. The options generally expire on the earlier of ten years after the date of grant or following termination of service.service, unless the performance criteria is met prior to termination of service in which case vesting will generally continue in accordance with the provisions of the award agreement. There were 126461 thousand performance-based awardsoptions outstanding as of September 30, 2017.March 31, 2023.
There were no stock option grants during the three months ended March 31, 2023. The Company granted 216105 thousand stock options (at a weighted average exercise price of $34.07$11.86 per share) and 143 thousand stock options (at a weighted average exercise price of $29.22 per share) duringfor the ninethree months ended September 30, 2017 and 2016, respectively.March 31, 2022.
The fair values of the service-based options and performance-based options wereare determined using the Black-Scholes option pricing model and the fair values of the market-based options were determined using a lattice (binomial) model. The following assumptions were used to determine the fair values as of the grant date:
NineThree months ended
 September 30, 2017 March 31, 2022		Nine months ended
 September 30, 2016
Black-ScholesBlack-ScholesBinomialBlack-ScholesBinomial
Risk-free interest rate (%)1.62 1.89 - 2.29
0.77 - 2.38
1.25 - 1.89
0.23 - 1.97
Expected stock price volatility (%)67.75 61.49 - 71.31%
66.68 - 71.31
59.75 - 62.14
59.76 - 62.14
Expected dividend yield— —
—
—
—
Expected option life (in years)66.00 - 7.50
2.55 - 4.32
6.00 - 6.25
4.54 - 4.88
Fair value$$13.57 - $24.807.27 
$11.94 - $24.30
$11.15 - $18.60
$11.06 - $19.27
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
We determined the expected option life of all service-based stock option grants using the simplified method.method, determined based on the graded vesting term plus the contractual term of the options, divided by two. We use the simplified method because we believe that our historical data does not provide a reasonable basis upon which to estimate expected option life.
The following table summarizes the weighted average grant date fair value of stock options granted per share, the total intrinsic value of stock options exercised and the grant date fair value of stock options that vested during the periodperiods presented:
  Nine months ended September 30,
(in thousands, except per share amounts) 2017 2016
     
Weighted average grant date fair value of stock options granted per share $20.95
 $16.85
Intrinsic value of options exercised 2,524
 17,280
Grant date fair value of stock options that vested 2,063
 2,372
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

 Three months ended March 31,
(in thousands, except per share data)20232022
Weighted average grant date fair value of stock options granted per share$— $8.19 
Intrinsic value of options exercised— — 
Grant date fair value of stock options that vested83 1,031 
The following table summarizes the activity related to our stock options:
 Number of options Weighted average exercise price 
Weighted average contractual term
(in years)
 
Aggregate intrinsic value
(in thousands)
        
Outstanding at December 31, 20161,996,509
 $25.98
 5.32 $15,942
Granted216,430
 34.07
    
Exercised(192,378) 10.83
    
Forfeited(222,920) 31.21
    
        
Outstanding at September 30, 20171,797,641
 27.93
 5.14 8,413
        
Exercisable at September 30, 20171,170,148
 22.56
 3.48 7,723
 Number of optionsWeighted average exercise price
Weighted average contractual term (in years)
Aggregate intrinsic value (in thousands)
Outstanding as of December 31, 2022745,277 $27.03 4.83$— 
Granted— — 
Forfeited(500)32.64   
Outstanding as of March 31, 2023744,777 27.02 4.58— 
Exercisable as of March 31, 2023549,289 25.26 3.99— 
Other Share-Based Awards
The Company’s other share-based and similar types of awards are composedcomprised of restricted shares and through August 29, 2016, Equity Appreciation Rights (“EAR”).restricted share units. The restricted shares and restricted share units are composedcomprised of a combination of service-based awards, performance-based awards, market-based awards and performance-basedperformance and market-based awards.
Service-Based Awards. These awards generally vest over one to four years with either annual cliff-vesting, vesting of all of the restricted shares at the end of the vesting period or vesting beginning after two years of service.-to-four-year periods. A total of 272853 thousand service-based awards were outstanding as of September 30, 2017.March 31, 2023.
Performance-Based Awards.These awards generally begin to vest upon the achievement ofif certain specific financial measures. Generally, the awards begin vesting if the performance criteriameasures are achieved; generally one-third vestvests on each anniversary of the grant date or cliff-vest on the third anniversary of the grant date. The awardnumber of performance-based restricted shares and restricted share units that may vest is adjusted based on the level of achievement as specified in the award agreements. If the performance criteria achieved is above thresholdcertain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in 80%up to 150% of the restricted share unit award dependingfor certain awards. If the performance criteria achieved is below certain thresholds, the award is canceled. A total of 148 thousand performance-based awards were outstanding as of March 31, 2023.
Market-Based Awards. 50% of these awards generally vest if certain specific market conditions are achieved over a 30-day period and the remaining 50% of these awards generally vest on performancethe one year anniversary of the initial vesting. The Company estimates the grant date fair value of these awards using a lattice (binomial) model. A total of 112 thousand market-based awards were outstanding as of March 31, 2023.
Performance-Based and Market-Based Awards. These awards generally vest if certain specific financial measures are achieved and if certain specific market conditions are achieved. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 300% of the restricted share unit award for certain awards. If the performance criteria or the market criteria is below a certain threshold,thresholds, the award is canceled. The Company estimates the grant date fair value of these awards using a Monte Carlo simulation model. A total of 42127 thousand performance-based and market-based awards were outstanding as of September 30, 2017.March 31, 2023.
The Company granted 189744 thousand restricted sharesshare units (at a weighted average grant date fair value of $30.94$4.94 per share) during the ninethree months ended September 30, 2017.March 31, 2023. These grants include 57 thousand awards that include both a performance condition and a market condition and 57 thousand performance-based awards. During the three months ended March 31, 2022 the
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
Company granted 46 thousand awards that include both a performance condition and a market condition and 46 thousand performance-based awards.
The following table summarizes the activity related to our restricted shares:
shares and restricted share units:
Number of restricted shares and restricted share units
Outstanding atas of December 31, 20162022231,730755,006 
Granted188,622743,856 
Issued(49,538(136,293))
Forfeited/canceled(56,575(122,267))
Outstanding at September 30, 2017as of March 31, 2023314,2391,240,302 
Effective August 29, 2016, the EAR plans were terminated.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

NOTE 15 — REVENUE
Revenue includesWe classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services and sales of short-term investments in real estate.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, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource, and isAltisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1). Our services are provided to customers located in the United States. The components of revenue were as follows for the three months ended March 31:
(in thousands)20232022
Service revenue$37,071 $37,763 
Reimbursable expenses2,310 1,592 
Non-controlling interests80 161 
Total$39,461 $39,516 
Disaggregation of Revenue
Disaggregation of total revenues by segment and major source was as follows:
Three months ended March 31, 2023
(in thousands)Revenue recognized when services are performed or assets are soldRevenue related to technology platforms and professional servicesReimbursable expenses revenueTotal revenue
Servicer and Real Estate$26,553 $3,208 $2,184 $31,945 
Origination7,382 8 126 7,516 
Total revenue$33,935 $3,216 $2,310 $39,461 
Three months ended March 31, 2022
(in thousands)Revenue recognized when services are performed or assets are soldRevenue related to technology platforms and professional servicesReimbursable expenses revenueTotal revenue
Servicer and Real Estate$24,659 $2,498 $1,379 $28,536 
Origination10,759 8 213 10,980 
Total revenue$35,418 $2,506 $1,592 $39,516 
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
  Three months ended
 September 30,		 Nine months ended
 September 30,
(in thousands) 2017 2016 2017 2016
         
Service revenue $224,308
 $239,782
 $692,254
 $715,386
Reimbursable expenses 9,866
 12,080
 31,786
 41,317
Non-controlling interests 805
 883
 2,107
 1,973
         
Total $234,979
 $252,745
 $726,147
 $758,676
Contract Balances
Our contract assets consist of unbilled accounts receivable (see Note 3). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying condensed consolidated balance sheets. Revenue recognized that was included in the contract liability at the beginning of the period was $1.9 million and $1.8 million for the three months ended March 31, 2023 and 2022, respectively.
NOTE 16 — COST OF REVENUE
Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service, operations and operationstechnology roles, fees paid to external providers related to the provision of services, cost of real estate sold, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows:follows for the three months ended March 31:
(in thousands)20232022
Compensation and benefits$9,701 $13,521 
Outside fees and services15,094 12,903 
Technology and telecommunications3,397 5,232 
Reimbursable expenses2,310 1,592 
Depreciation and amortization455 621 
Total$30,957 $33,869 
  Three months ended
 September 30,		 Nine months ended
 September 30,
(in thousands) 2017 2016 2017 2016
         
Compensation and benefits $60,332
 $66,357
 $186,090
 $201,193
Outside fees and services 83,670
 77,445
 250,883
 222,574
Cost of real estate sold 4,411
 —
 16,461
 —
Reimbursable expenses 9,866
 12,080
 31,786
 41,317
Technology and telecommunications 10,389
 11,502
 32,681
 32,145
Depreciation and amortization 6,230
 6,618
 20,343
 20,007
         
Total $174,898
 $174,002
 $538,244
 $517,236
Transactions with Related Parties
TableIn May 2022, John G. Aldridge, Jr., the Managing Partner of ContentAldridge Pite LLP (“Aldridge Pite”), joined the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company. The Company recognized $0.2 million for the three months ended March 31, 2023 of reimbursable expenses relating to services provided to Aldridge Pite (no comparable amount for the three months ended March 31, 2022). As of March 31, 2023, the Company had no payable to Aldridge Pite.
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

NOTE 17 — SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses include payroll and employee benefits associated with personnel employed in executive, sales and marketing, finance, technology, law, compliance, human resources, vendor management, facilities and risk management sales and marketing roles. This category also includes professional services fees, occupancy costs, professional fees, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows:follows for the three months ended March 31:
(in thousands)20232022
Compensation and benefits$6,030 $5,409 
Amortization of intangible assets1,280 1,284 
Professional services1,571 2,749 
Occupancy related costs1,442 1,624 
Marketing costs382 887 
Depreciation and amortization244 337 
Other1,145 1,684 
Total$12,094 $13,974 
20
  Three months ended
 September 30,		 Nine months ended
 September 30,
(in thousands) 2017 2016 2017 2016
         
Compensation and benefits $15,068
 $14,145
 $43,115
 $42,460
Occupancy related costs 8,536
 8,903
 28,347
 26,785
Amortization of intangible assets 8,604
 11,465
 27,143
 36,432
Professional services 3,886
 4,097
 11,983
 17,533
Marketing costs 3,992
 9,275
 11,958
 21,438
Depreciation and amortization 2,286
 2,557
 7,068
 7,514
Other 4,250
 3,444
 17,179
 9,547
         
Total $46,622
 $53,886
 $146,793
 $161,709
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
NOTE 18 — OTHER INCOME (EXPENSE), NET
Other income (expense), net consists of the following:following for the three months ended March 31:
(in thousands)20232022
Interest income (expense)$434 $45 
Other, net1,126 695 
Total$1,560 $740 
  Three months ended
 September 30,		 Nine months ended
 September 30,
(in thousands) 2017 2016 2017 2016
         
Gain on early extinguishment of debt $1,482
 $—
 $5,419
 $5,464
Expenses related to the purchase of available for sale securities —
 —
 —
 (3,356)
Interest income 27
 11
 169
 28
Other, net 988
 (120) 2,427
 472
         
Total $2,497
 $(109) $8,015
 $2,608
NOTE 19 — EARNINGSINCOME TAXES
We recognized an income tax provision of $1.5 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively. The income tax provision for the three months ended March 31, 2023 was driven by income tax expense on transfer pricing income from India and the United States, reduction in deferred tax assets related to intangible assets, no tax benefit on the pretax loss from our Luxembourg operating company and uncertain tax positions.
NOTE 20 — LOSS PER SHARE
Basic earningsloss per share (“EPS”) is computed by dividing incomeloss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion ofnet loss per share excludes all dilutive securities using the treasury stock method.because their impact would be anti-dilutive, as described below.
Basic and diluted EPSloss per share are calculated as follows:follows for the three months ended March 31:
  Three months ended
 September 30,		 Nine months ended
 September 30,
(in thousands, except per share data) 2017 2016 2017 2016
         
Net income attributable to Altisource $6,961
 $10,589
 $22,541
 $49,077
         
Weighted average common shares outstanding, basic 18,023
 18,715
 18,337
 18,669
Dilutive effect of stock options and restricted shares 406
 853
 517
 1,069
         
Weighted average common shares outstanding, diluted 18,429
 19,568
 18,854
 19,738
         
Earnings per share:        
Basic $0.39
 $0.57
 $1.23
 $2.63
         
Diluted $0.38
 $0.54
 $1.20
 $2.49
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

(in thousands, except per share data)20232022
Net loss attributable to Altisource$(12,947)$(12,190)
Weighted average common shares outstanding, basic18,442 15,956 
Weighted average common shares outstanding, diluted18,442 15,956 
Loss per share:
Basic$(0.70)$(0.76)
Diluted$(0.70)$(0.76)
For the ninethree months ended September 30, 2017March 31, 2023 and 2016, 0.52022, 2.9 million and 1.5 million, respectively, warrants, stock options, restricted shares and 0.4restricted share units, were excluded from the computation of loss per share, as a result of the following:
•For both the three months ended March 31, 2023 and 2022, 1.7 million and 0.3 million, respectively, warrants, stock options, respectively, thatrestricted shares and restricted share units were anti-dilutive and have been excluded from the computation of diluted EPS (0.9loss per share because the Company incurred a net loss
•For the three months ended March 31, 2023 and 2022, 0.3 million options and 0.40.3 million, options for the third quarter of 2017 and 2016, respectively). Theserespectively, stock options were anti-dilutive and have been excluded from the computation of diluted EPSloss per share because their exercise price was greater than the average market price of our common stock. Also excluded fromstock
•For the computation of diluted EPS are 0.3three months ended March 31, 2023 and 2022, 0.9 million and 0.9 million, respectively, stock options, and restricted shares and 0.4 million options for the nine months ended September 30, 2017 and 2016, respectively (0.4 million options and restricted shares and 0.4 million options for the third quarter of 2017 and 2016, respectively),share units, which begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate ofa total shareholder return compared to shareholdersthe market benchmark, that have not yet been met.met in each period have been excluded from the computation of diluted loss per share
NOTE 2021 — COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS
We record a liability for contingencies if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range.
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
Litigation
We are currently involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows.
Regulatory Matters
Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries.
As previously disclosed, Altisource received a Notice and Opportunity to Respond and Advise (“NORA”) letter on November 10, 2016 from the Consumer Financial Protection Bureau (“CFPB”) indicating that the CFPB is considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen. The NORA letter provides the recipient an opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced. On December 5, 2016, we provided a written response to the NORA letter setting forth the legal, policy and factual reasons why we believe an enforcement action is not warranted. We are committed to resolving any potential concerns of the CFPB. If the CFPB were to bring an enforcement action against us, the resolution of such action could have a material adverse impact on our business, reputation, financial condition and results of operations. However, we believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential CFPB enforcement action.
Ocwen Related Matters
As discussed in Note 2, during the three months ended March 31, 2023, Ocwen iswas our largest customer. Ocwen disclosed that, on July 23, 2017, it entered into a master agreement and a transfer agreement with NRZ to undertake certain actions to facilitate the transfercustomer, accounting for 45% of Ocwen’s remaining interests in approximately $110 billion in unpaid principal balance (as of June 30, 2017) of its non-government-sponsored enterprise (“non-GSE”) mortgage servicing rights (the “Subject MSRs”) to NRZ. As of June 30, 2017, the Subject MSRs represented approximately 78% of Ocwen’s non-GSE MSRs. In the event the required third party consents are not obtained by July 23, 2018 or an earlier date agreed to by Ocwen and NRZ, the applicable Subject MSRs may (i) become subject to a new agreement to be negotiated between Ocwen and NRZ, (ii) be acquired by Ocwen, or, if Ocwen does not desire or is otherwise unable to purchase, sold to one or more third parties, or (iii) remain subject to their existing agreements. Ocwen also disclosed that it entered into a five year subservicing agreement with NRZ pursuant to which Ocwen will subservice the mortgage loans related to the Subject MSRs that are transferred to NRZ. In addition, Ocwen disclosed that during the five year subservicing agreement term, NRZ may terminate the subservicing agreement for convenience, subject to Ocwen’s right to receive a termination fee and proper notice.
As disclosed in our report on Form 8-K filed on August 28, 2017, REALHome Services and Solutions, Inc. and REALHome Services and Solutions - CT, Inc. (collectively, “RHSS”), two licensed real estate brokerage subsidiaries of the Company, entered into a Cooperative Brokerage Agreement (the “Brokerage Agreement”) with a licensed real estate brokerage subsidiary of NRZ pursuant to which RHSS will be the exclusive provider, irrespective of the subservicer, of real estate brokerage services for portfolios associated with Subject MSRs that are transferred to NRZ (the “Ocwen Transferred Portfolio”) and with respect to approximately $6 billion of non-Ocwen serviced non-GSE portfolios. NRZ’s brokerage subsidiary will receive a cooperative brokerage
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

commission on the sale of certain real estate owned (“REO”) properties from these portfolios. In addition, Altisource and RHSS entered into a letter agreement with NRZ which provides for NRZ to directly appoint RHSS (or another real estate brokerage subsidiary designated by Altisource) to perform the real estate brokerage services with respect to REO properties in the Ocwen Portfolio, subject to certain specified exceptions, in the event that NRZ’s brokerage subsidiary does not refer real estate listings from the Ocwen Portfolio to RHSS. In this case, the designated Altisource brokerage subsidiary would retain the full seller’s brokerage commission. The Brokerage Agreement and the letter agreement are effective through August 31, 2025 unless earlier terminated in accordance with their respective terms. Contemporaneously with the execution of the Brokerage Agreement, Altisource Solutions S.à r.l. executed a non-binding letter of intent (“LOI”) with NRZ to enter into a Services Agreement, setting forth the terms pursuant to which Altisource Solutions S.à r.l. would remain the exclusive service provider of fee-based services on the Ocwen Transferred Portfolio through August 2025, irrespective of the subservicer. The LOI provides for the parties to negotiate in good faith toward the execution of a Services Agreement within 30 days from the date of the LOI. This term was automatically extended by a further 30 days by the parties, pursuant to the terms of the LOI, as the parties continued to negotiate in good faith toward the completion and execution of a Services Agreement (such period, including as extended, the “Standstill Period”). Furthermore, as a result of continuing good faith negotiations on a Services Agreement, effective as of October 23, 2017, the parties amended the LOI to extend the term of the LOI and Standstill Period to November 30, 2017. This term will be automatically extended until January 12, 2018 if the parties are still negotiating the terms of the Services Agreement in good faith as of November 30, 2017. Pursuant to the LOI, the parties intend to negotiate all of the definitive and binding terms of the Services Agreement. RHSS has the right to terminate the Brokerage Agreement upon 90 days’ notice (which period may be shortened by NRZ) if a services agreement is not signed between Altisource and NRZ during the Standstill Period. The Brokerage Agreement may otherwise only be terminated upon the occurrence of certain specified events. NRZ has agreed that, during such notice period and/or the Standstill Period, it will not replace or reduce the role of Altisource as a service provider with respect to the Ocwen Transferred Portfolio.
Following the execution of the Services Agreement and the transfer of the Subject MSRs from Ocwen to NRZ, we anticipate that revenue from NRZ would increase and revenue from Ocwen would decrease. As MSRs continue to transfer from Ocwen to NRZ, we anticipate that NRZ will become our largest customer. Had NRZ acquired all of the Subject MSRs and our agreements with NRZ were in place as of the beginning of the year, we estimate that approximately 50%total revenue. Additionally, 7% of our revenue would have been related to NRZ. There can be no assurance thatfor the parties will reach an agreement with respect tothree months ended March 31, 2023 was earned on the terms ofloan portfolios serviced by Ocwen, when a party other than Ocwen or the Services Agreement or that a Services Agreement will be entered into on a timely basis or at all.MSRs owner selected Altisource as the service provider.
Ocwen 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, that have or could result in adverse regulatory or other actions against Ocwen. For example, on May 15, 2017, Ocwen disclosed that on April 20, 2017, the CFPB and the Statesome of Florida filed separate complaints in the United States District Court for the Southern District of Floridawhich include claims against Ocwen alleging violations of Federal consumer financial law and, in the case of Florida, Florida statutes. As another example, on May 15, 2017, Ocwen also disclosed that on April 28, 2017, the Commonwealth of Massachusetts filed a lawsuit against Ocwen in the Superior Court for the Commonwealth of Massachusetts alleging violations of state consumer financial laws relating to Ocwen’s servicing business, including lender-placed insurance and property preservation fees. Ocwen disclosed that the complaints seek to obtain permanent injunctive relief, consumer redress, refunds, restitution, disgorgement, damages, civil penalties, costs and fees and other relief. In addition, Ocwen disclosed that a number of states publicly announced or otherwise undertook various administrativesubstantial monetary damages. Previous regulatory actions against Ocwen relatedhave subjected Ocwen to alleged violationsindependent oversight of applicable lawsits operations and regulations related to servicing residential mortgages. Certain of the allegations in the complaints andplaced certain of the state administrative actions assert that Ocwen’s use of certain Altisource services was a contributing factor to Ocwen’s purported violations. Ocwen disclosed that the state administrative actions announced or undertaken purportedly seek sanctions and various injunctive reliefs which may include restrictions on Ocwen obtaining additional mortgageits ability to acquire servicing rights, continuing mortgage servicingrights. Existing or debt collection activities, originating or funding loans, initiating foreclosures or other limitations or restrictions on Ocwen’s business operations or licenses in certain of these states. Ocwen announced in several Form 8-K filings that it reached settlements with mortgage and banking regulatory agencies from certain of the states, the District of Columbia and state attorneys general that took regulatory actions against it on April 20, 2017 or shortly thereafter. Ocwen disclosed that, as part of these settlements, Ocwen will not acquire any new residential mortgage servicing rights until April 30, 2018 and will develop a plan of action and milestones regarding its transition from the servicing system it currently uses, REALServicing®, to an alternative servicing system and will not board any new loans onto the REALServicing system, as well as other key provisions. All of the forgoingfuture similar matters could result in adverse regulatory or other actions against Ocwen. While not all inclusive, other regulatory actions to date have included subjecting Ocwen to independent oversight of its operations and placing certain restrictions on its ability to acquire servicing rights. In addition in August 2017, Ocwen disclosed in its second quarter 2017 SEC Form 10-Q that it received a letter from Ginnie Mae thatto the state regulators’ cease and desist orders discussed above, create a material change in Ocwen’s business status under Ginnie Mae’s MBS Guide and that Ginnie Mae has accordingly declared an event of default under guaranty agreements between Ginnie Mae and Ocwen. Ocwen further disclosed that in the letter it received, Ginnie Mae notified Ocwen that it will refrain from immediately exercising any
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

rights relating to this matter for a period of 90 days from the date of the letter. In addition, Ocwen has disclosed that during this period, Ginnie Mae has asked Ocwen to provide certain information regarding the cease and desist orders and certain information regarding Ocwen’s business plan, financials results and operations and Ocwen also stated that it continues to operate as a Ginnie Mae issuer in all respects and continues to participate in Ginnie Mae issuing of mortgaged-backed securities and home equity conversion loan pools in the ordinary course. Ocwen also disclosed that adverse actions by Ginnie Mae could materially and adversely impact Ocwen’s business, including if Ginnie Mae were to terminate Ocwen as an issuer or servicer of Ginnie Mae securities.
Ocwen may become subject to future federal and state regulatory investigations, inquiries, requests for information and legal proceedings, any of which could also result in adverse regulatory or other actions against Ocwen.actions.
Ocwen has disclosed that Rithm is a significant client of Ocwen’s. As of December 31, 2022, approximately 17% of loans serviced and subserviced by Ocwen (measured in UPB) and approximately 68% of all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs.
The foregoingexistence or outcome of Ocwen regulatory matters or the termination of Ocwen’s sub-servicing agreements with Rithm or other significant Ocwen clients may have significant adverse effects on Ocwen’s business and/or our continuing relationship with Ocwen.business. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services, (including information technology and software services), it may be required to seek changes to its existing pricing structure with us, it may lose its non-GSEnon-government-sponsored enterprise (“GSE”) servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or volume of services they purchase from us or the loss of other customers.
If any of the following events occurred, Altisource’s revenue wouldcould be significantly lowerreduced and our results of operations could be materially adversely affected, including from the possible impairment or write-off of goodwill, intangible assets, property and equipment, other assets and accounts receivable:
•Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
•Ocwen loses, sells or transfers a significant portion or all of its non-GSEGSE or Federal Housing Administration servicing rights or subservicing arrangements or remaining other servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
•The contractual relationship between Ocwen and Rithm changes significantly, including Ocwen’s sub-servicing arrangement with Rithm expiring without renewal, and this change results in a change in our status as a provider of services related to the Subject MSRs
•Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
Altisource fails to be retained as a service provider
•The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
Additionally, Ocwen has stated, including in connection with resolving several state administrative actions discussed above, that it plans•Altisource otherwise fails to transition from REALServicing to another mortgage servicing software platform. We anticipate that suchbe retained as a transition could be a multi-year project and Altisource would support Ocwen through such a transition. We do not anticipate that a servicing technology transition would impact the other services we provide to Ocwen. For the nine months ended September 30, 2017 and 2016, service revenue from REALServicing was $20.1 million and $25.7 million, respectively ($6.7 million and $8.2 million for the third quarter of 2017 and 2016, respectively). We estimate, with respect to income before income tax, that the REALServicing business currently operates at break-even.provider
Management cannot predict the outcomewhether any of these mattersevents will occur or the amount of any impact they may have on Altisource. However, in the event these matters materially negatively impact Altisource, we believe the variable nature
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)
Leases
We lease certain premises and equipment, primarily consisting of office space and information technology equipment. Certain of our cost structure would allow usleases include options to realignrenew at our cost structurediscretion or terminate leases early, and these options are considered in line with remaining revenue. Furthermore, inour determination of the eventexpected lease term. Certain of a significant reduction inour lease agreements include rental payments adjusted periodically for inflation. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We sublease certain office space to third parties. Sublease income was $0.1 million and $0.3 million for the volumethree months ended March 31, 2023 and 2022, respectively. The amortization periods of services purchased or loans servicedright-of-use assets are generally limited by Ocwen (suchthe expected lease term. Our leases generally have expected lease terms at adoption of one to six years.
Information about our lease terms and our discount rate assumption was as a transferfollows for the three months ended March 31:
20232022
Weighted average remaining lease term (in years)2.783.48
Weighted average discount rate5.84 %5.70 %
Our lease activity during the period was as follows for the three months ended March 31:
(in thousands)20232022
Operating lease costs:
Selling, general and administrative expense$556 $934 
Cost of revenue— 265 
Cash used in operating activities for amounts included in the measurement of lease liabilities$1,135 $1,182 
Short-term (twelve months or less) lease costs419 28 
Maturities of Ocwen’s servicing rights to a successor servicer), we believe the impact to Altisource could occur over an extended periodour lease liabilities as of time. During this period, we believe that we will continue to generate revenue from all or a portion of Ocwen’s portfolio.March 31, 2023 are as follows:
Additionally, our Servicer Solutions, Origination Solutions, Consumer Real Estate Solutions and Real Estate Investor Solutions businesses are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these businesses.
Management believes our plans, together with current liquidity and cash flows from operations would be sufficient to meet our working capital, capital expenditures, debt service and other cash needs. However, there can be no assurance that our plans will be successful or our operations will be profitable.
(in thousands)Operating lease obligations
2023$2,092 
20241,991 
20251,320 
2026638 
2027— 
Total lease payments6,041 
Less: interest(780)
Present value of lease liabilities$5,261 
Escrow and Trust Balances
We hold customers’ assets in escrow and trust accounts at various financial institutions pending completion of certain real estate activities. We also hold cash in trust accounts at various financial institutions where contractual obligations mandate maintaining dedicated bank accounts for our collections business. These amounts are held in escrow and trust accounts for limited periods of
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow and trust accounts were $39.2$15.8 million and $64.1$13.2 million at September 30, 2017as of March 31, 2023 and December 31, 2016,2022, respectively.
NOTE 2122 — SEGMENT REPORTING
Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our chief operating decision maker) to evaluate operating performance and to assess the allocation of our resources.
Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our chief operating decision maker manages our businesses, allocates resources and evaluates performance. We now reportconduct our operations through two new reportable segments: Mortgage MarketServicer and Real Estate Market and Origination. In addition, we report Other Businesses, Corporate and EliminationsOthers separately. Prior
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Condensed Consolidated Financial ServicesStatements (Continued)
The Servicer and Technology Services. The former Mortgage Services segment was separated into the Mortgage Market and Real Estate Market segments (as described below). Furthermore, certain of the software services business units that were formerly in the Technology Services segment and the mortgage charge-off collections business that was formerly in the Financial Services segment are now included in the Mortgage Market. Other Businesses, Corporate and Eliminations includes the other business that were formerly in the Financial Services segment as well as IT infrastructure management services formerly in the Technology Services segment. Prior year comparable period segment disclosures have been restated to conform to the current year presentation.
The Mortgage Market segment provides loan servicers and originatorsreal estate investors with marketplacessolutions and services and a portfolio of software, data analytics and information technologies that span the mortgage lifecycle. The Real Estate Market segment provides rental property investors and real estate consumerslifecycle. The Origination segment provides originators with marketplaces, productssolutions and servicestechnologies that span the real estatemortgage origination lifecycle. In addition, the Other Businesses, Corporate and Eliminations segment includes businesses that provide asset recovery management collection services primarily to debt originators (e.g., credit card, auto lending and retail credit), customer relationship management services primarily to the utility, insurance and hotel industries and IT infrastructure management services. Other Businesses, Corporate and Eliminations alsoOthers includes interest expense and costs related to corporate support functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, and sales and marketing costs not allocated to the business units as well as eliminations between the reportable segments.
Financial information for our segments is as follows:
 Three months ended March 31, 2023
(in thousands)Servicer and Real EstateOriginationCorporate and OthersConsolidated Altisource
Revenue$31,945 $7,516 $— $39,461 
Cost of revenue19,725 7,454 3,778 30,957 
Gross profit (loss)12,220 62 (3,778)8,504 
Selling, general and administrative expenses2,301 1,726 8,067 12,094 
Income (loss) from operations9,919 (1,664)(11,845)(3,590)
Total other income (expense), net— — (7,748)(7,748)
Income (loss) before income taxes and
non-controlling interests
$9,919 $(1,664)$(19,593)$(11,338)
 Three months ended March 31, 2022
(in thousands)Servicer and Real EstateOriginationCorporate and OthersConsolidated Altisource
Revenue$28,536 $10,980 $— $39,516 
Cost of revenue19,740 9,307 4,822 33,869 
Gross profit (loss)8,796 1,673 (4,822)5,647 
Selling, general and administrative expenses3,059 2,120 8,795 13,974 
Income (loss) from operations5,737 (447)(13,617)(8,327)
Total other income (expense), net— — (2,816)(2,816)
Income (loss) before income taxes and
non-controlling interests
$5,737 $(447)$(16,433)$(11,143)
(in thousands)Servicer and Real EstateOriginationCorporate and OthersConsolidated Altisource
Total assets:
March 31, 2023$61,898 $54,681 $61,004 $177,583 
December 31, 202263,696 53,984 77,325 195,005 
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  Three months ended September 30, 2017
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue $199,262
 $22,121
 $13,596
 $234,979
Cost of revenue 137,466
 23,497
 13,935
 174,898
Gross profit (loss) 61,796
 (1,376) (339) 60,081
Selling, general and administrative expenses 28,006
 4,208
 14,408
 46,622
Income (loss) from operations 33,790
 (5,584) (14,747) 13,459
Total other income (expense), net 26
 —
 (3,128) (3,102)
         
Income (loss) before income taxes and
non-controlling interests		 $33,816
 $(5,584) $(17,875) $10,357
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

  Three months ended September 30, 2016
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue $211,821
 $21,516
 $19,408
 $252,745
Cost of revenue 138,646
 16,634
 18,722
 174,002
Gross profit 73,175
 4,882
 686
 78,743
Selling, general and administrative expenses 29,903
 6,961
 17,022
 53,886
Income (loss) from operations 43,272
 (2,079) (16,336) 24,857
Total other income (expense), net 10
 —
 (6,071) (6,061)
         
Income (loss) before income taxes and
non-controlling interests		 $43,282
 $(2,079) $(22,407) $18,796
  Nine months ended September 30, 2017
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue $614,180
 $67,314
 $44,653
 $726,147
Cost of revenue 421,942
 72,484
 43,818
 538,244
Gross profit (loss) 192,238
 (5,170) 835
 187,903
Selling, general and administrative expenses 86,493
 14,084
 46,216
 146,793
Income (loss) from operations 105,745
 (19,254) (45,381) 41,110
Total other income (expense), net 138
 —
 (8,985) (8,847)
         
Income (loss) before income taxes and
non-controlling interests		 $105,883
 $(19,254) $(54,366) $32,263
  Nine months ended September 30, 2016
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue $626,522
 $70,229
 $61,925
 $758,676
Cost of revenue 408,412
 47,946
 60,878
 517,236
Gross profit 218,110
 22,283
 1,047
 241,440
Selling, general and administrative expenses 90,498
 18,755
 52,456
 161,709
Income (loss) from operations 127,612
 3,528
 (51,409) 79,731
Total other income (expense), net 144
 —
 (16,017) (15,873)
         
Income (loss) before income taxes and
non-controlling interests		 $127,756
 $3,528
 $(67,426) $63,858
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Total assets:  
  
  
  
September 30, 2017 $311,423
 $63,067
 $221,911
 $596,401
December 31, 2016 347,067
 47,863
 294,282
 689,212
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ALTISOURCE PORTFOLIO SOLUTIONS S.A.
Notes to Condensed Consolidated Financial Statements (Continued)

Our services are primarily provided to customers located in the United States. Premises and equipment, net consist of the following, by country:
(in thousands) September 30,
2017		 December 31,
2016
     
United States $51,900
 $71,418
India 9,657
 14,006
Luxembourg 17,117
 14,791
Philippines 1,981
 3,027
Uruguay 168
 231
     
Total $80,823
 $103,473
NOTE 22 — SUBSEQUENT EVENT
As discussed in Note 20, as a result of continuing good faith negotiations on a Services Agreement, effective as of October 23, 2017, the Company and NRZ amended the LOI to extend the term of the LOI and Standstill Period to November 30, 2017. This term will be automatically extended until January 12, 2018 if the parties are still negotiating the terms of the Services Agreement in good faith as of November 30, 2017. The parties continue to work toward executing a Services Agreement.


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is a supplement to the accompanying interim condensed consolidated financial statements and is intended to provide a reader of our financial statements with a narrative from the perspective of management on our businesses, current developments, financial condition, results of operations and liquidity. Our MD&A should be read in conjunction with our Form 10-K for the year ended December 31, 20162022 filed with the Securities and Exchange Commission (“SEC”) on February 16, 2017.March 30, 2023.
FORWARD-LOOKING STATEMENTS
Certain statements in thisThis Form 10-Q regarding anticipated financial outcomes, business and market conditions, outlook and other similarcontains forward-looking statements related to Altisource’s future financial and operational performance are “forward-looking statements” made pursuant towithin the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terminologyrelate to, among other things, future events or our future performance or financial condition. Words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “believe,” “predict,” “potential” or “continue” or the negative of these terms and other comparable terminology. Forward-lookingterminology are intended to identify such forward-looking statements. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. The following are examples of such items and are not intended to be all inclusive:
•assumptions related to the sources of liquidity and the adequacy of financial resources;
•assumptions about our ability to grow our business, including executing on our strategic initiatives;
•assumptions about our ability to improve margins;margins and affect anticipated expense reductions in response to lower revenue due to COVID-19 or other factors;
•assumptions about the variable nature of our cost structure that would allow us to realign our cost structure in line with revenue;
•assumptions regarding the impact of seasonality;
•assumptions regarding the impacts of the COVID-19 pandemic and the timeliness and effectiveness of actions taken in response thereto;
•estimates regarding our effective tax rate; and
•estimates regarding our reserves and valuations.
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” in Part II, Item 1A of this Form 10-Q and the “Risk Factors” Risk Factors section of our Form 10-K for the year ended December 31, 20162022 including:
•the timing of the anticipated increase in default related referrals following the expiration of foreclosure and includeeviction moratoriums, forbearance programs and temporary governmental or servicer loss mitigation requirements, the following:timing of the expiration of such moratoriums, programs and requirements, and any other delays occasioned by government, investor or servicer actions;
if, as a result of difficulties faced by•our ability to retain Ocwen Financial Corporation (“Ocwen”(together with its subsidiaries, “Ocwen”), we were to lose Ocwen as a customer or there is a significant reduction inour ability to receive the anticipated volume of services they purchasereferrals from us;Ocwen;
if we are unable•our ability to reach agreement with New Residential Investmentretain Rithm Capital Corp. (individually, together with one or more of its subsidiaries, or one or more of its subsidiaries individually, “Rithm”) (formerly New Residential Investment Corp., or “NRZ”) onas a Services Agreementcustomer or our ability to receive the anticipated volume of referrals from Rithm;
•our ability to comply with material agreements if a change of control is deemed to have occurred including, among other things, through the Collective Brokerage Agreement and related letter agreement are terminated;formation of a shareholder group, which may cause a termination event or event of default under certain of our agreements;
•our ability to execute on our strategic initiatives;plan;
•our ability to retain our existing customers, expand relationships and attract new customers;
the level of loan delinquencies and charge-offs;
the level of origination volume;
technology failures;
the outsourcing trends;
our ability to raise debt;
our ability to retain our directors, executive officers and key personnel;
our ability to integrate acquired businesses;
•our ability to comply with and burdens imposed by, governmental regulations and policies and any changes in such regulations and policies;
•our ability to develop, launch and gain market acceptance of new solutions or recoup our investments in developing such new solutions;
•the level of loan delinquencies and charge-offs;
•the level of origination volume;
•technology incidents, data breaches and cybersecurity risks;
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•significant changes in tax regulations and interpretations in the Luxembourg tax regimecountries, states and local jurisdictions in which we operate; and
•the risks and uncertainties related to pandemics, epidemics or interpretationsother force majeure events, including the COVID-19 pandemic, and associated impacts on the economy, supply chain, transportation, movement of the Luxembourg tax regime.people, availability of vendors and demand for our products or services as well as increased costs, recommendations or restrictions imposed by governmental entities, changes in relevant business practices undertaken or imposed by our clients, vendors or regulators, impacts on contracts and client relationships and potential litigation exposure.
We caution you not to place undue reliance on these forward-looking statements as theywhich reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

OVERVIEW
Our Business
When we refer to “Altisource,” the “Company,” “we,” “us” or “our” we mean Altisource Portfolio Solutions S.A., a Luxembourg société anonyme, or public limited liability company, and its subsidiaries.
We are an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing market.markets we serve.
Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance. We now reportconduct our operations through two new reportable segments: Mortgage MarketServicer and Real Estate Market. and Origination. In addition, we reportOther Businesses, Corporate and EliminationsOthers separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services
The Servicer and Technology Services. Prior year comparable period Real Estate segment disclosures have been restated to conform to the current year presentation.
Mortgage Market: Providesprovides loan servicers and originatorsreal estate investors with marketplaces, servicessolutions and technologies that span the mortgage lifecycle. Within the Mortgage Market segment, we provide:
Servicer Solutions - the solutions, services and technologies typically used or licensed primarily by residential loan servicers.
• Property preservation and inspection services• Residential and commercial loan servicing technologies
• Real estate brokerage and auction services• Vendor management, marketplace transaction management and payment management platforms
• Title insurance (agent and related services) and settlement services
• Document management platform
• Appraisal management services and broker and non-broker valuation services• Default services (real estate owned (“REO”), foreclosure, bankruptcy, eviction) technologies
• Foreclosure trustee services• Mortgage charge-off collections
• Non-legal processing and related services for and under the supervision of foreclosure, bankruptcy and eviction attorneys• Residential and commercial loan disbursement processing, risk mitigation and construction inspection services
Origination Solutions - the solutions, services and technologies typically used or licensed by loan originators (or other similar mortgage market participants) in originating and buying residential mortgages.
• Title insurance (agent and related services) and settlement services• Certified loan insurance and certification
• Vendor management oversight platform
• Appraisal management services and broker and non-broker valuation services
• Mortgage banker cooperative, Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”)
• Fulfillment services
• Loan origination system• Mortgage trading platform
• Document management platform
Real Estate Market: Provides real estate consumers and rental property investors with marketplaces and services that span the real estate lifecycle. Within the Servicer and Real Estate Market segment we provide:
Consumer Real Estate Solutions - the solutions,
Our Solutions business includes property preservation and inspection services, title insurance (as an agent) and settlement services, real estate valuation services, foreclosure trustee services, and residential and commercial construction inspection and risk mitigation services.
Marketplace
Our Marketplace business includes the Hubzu® online real estate auction platform and real estate auction, real estate brokerage and asset management services.
Technology and software-as-a-service (“SaaS”) Products
Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”), short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single family rental data, analytics and rent-based valuation solution), REALSynergy® (a commercial loan servicing platform), and NestRangeTM (an automated valuation model and analytics solution).
The Origination segment provides originators with solutions and technologies typically used by home buyersthat span the mortgage origination lifecycle. Within the Origination segment we provide:
Solutions
Our Solutions business includes title insurance (as an agent) and sellers to handle key aspects of buying and selling a home.
• Real estate brokerage• Mortgage brokerage
• Title insurance (agent and related services) and settlement services• Homeowners insurance

Real Estate Investor Solutions - the solutions,settlement services, real estate valuation services, and technologies used by buyersloan fulfillment, certification and sellerscertification insurance services.
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Table of single-family investment homes.
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• Property preservation and inspection services• Buy-renovate-sell
• Real estate brokerage and auction services• Renovation services
• Data solutions• Property management services
• Title insurance (agent and related services) and settlement services• Appraisal management services and broker and non-broker valuation services
Lenders One
Other Businesses, 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.
Technology and SaaS Products
Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process), TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment, pre and post-close quality control and service transfer processes), ADMS (a document management and data analytics delivery platform), and automated valuation technology.
Corporate and Eliminations: Our Other Businesses, Corporate and Eliminations segmentOthers includes certain non-core businesses, interest expense and costs related to corporate support functions. The businesses in this segment include post-charge-off consumer debt collection services, customer relationship management servicesfunctions including executive, infrastructure and informationcertain technology (“IT”) infrastructure management services. Interest expense relates to the Company’s senior secured term loan and corporate support functions include executive,groups, finance, law, compliance, human resources, vendor management, facilities, risk management and sales and marketing costs not allocated to the business units. This segment also includes eliminations of transactions between the reportable segments.
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 and sales of short-term investments in real estate.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 and isAltisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource.
Strategy and Core Businesses
We are focused on becoming the premier provider of mortgage and real estate marketplaces and related technology enabled solutions to a broad and diversified customer base of residential real estate and loan investors, servicers, and originators. The real estate and mortgage marketplaces represent very large markets, and we believe our scale and suite of offerings provide us with competitive advantages that could support our growth. As we navigate the COVID-19 pandemic and its impacts on our business, we continue to evaluate our strategy and core businesses and seek to position our businesses to provide long term value to our customers and shareholders.
Each of our business segments provides Altisource the potential to grow and diversify our customer and revenue base. We believe these business segments address very large markets and directly leverage our core competencies and distinct competitive advantages. Our business segments and strategic initiatives follow:
Servicer and Real Estate:
Through our offerings that support residential real estate and loan investors and servicers, we provide a suite of solutions and technologies intended to meet their growing and evolving needs. We are focused on growing referrals from our existing customer base and attracting new customers to our offerings. We have a customer base that includes government-sponsored enterprises (“GSEs”), asset managers, and several large bank and non-bank servicers including Ocwen and Rithm. We believe we are one of only a few providers with a broad suite of servicer solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers as they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.
Origination:
Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members, which includes independent mortgage bankers, credit unions, and banks, as well as bank and non-bank loan originators. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.
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Corporate and Others includes interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.
COVID-19 Pandemic Impacts
In response to the COVID-19 pandemic, beginning in March 2020, various governmental entities and servicers implemented unprecedented foreclosure and eviction moratoriums, forbearance programs and loss mitigation measures to help mitigate the impact to borrowers and renters. The Federal government’s foreclosure moratorium expired on July 31, 2021 and the Consumer Financial Protection Bureau’s (“CFPB’s”) temporary loss mitigation measures expired on December 31, 2021. Despite the expiration of such governmental measures, we believe servicers are proceeding slowly with foreclosure initiations for borrowers in default. Industrywide foreclosure initiations were 10% lower for the three months ended March 31, 2023 compared to the same period in 2022, and 28% lower than the same period in 2019. Industrywide foreclosure sales were 45% higher for the three months ended March 31, 2023 compared to the same period in 2022, although still 44% lower than the same pre-COVID-19 period in 2019. The decline in foreclosure initiations and foreclosure sales throughout the pandemic, partially offset by the restart of the default market, significantly decreased default related referrals to Altisource and continues to negatively impact virtually all of Altisource’s default related services revenue.
We cannot predict the duration of the pandemic and future governmental and industry measures. Based on the expirations of the Federal government’s foreclosure and eviction moratoriums and the CFPB’s rules on temporary loss mitigation measures, we believe the demand for our Default business will grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. Due to this timing, we anticipate that our later stage foreclosure auction and REO asset management services will not fully benefit from the early 2022 higher foreclosure initiations until late 2023 or early 2024.
During 2022 and the three months ended March 2023, to address lower revenue, 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 following the expiration of the moratoriums and forbearance plans and CFPB’s rules on temporary loss mitigation measures, and (3) grow Lenders One membership, launch new solutions and increase customer adoption of our solutions to accelerate the growth of our origination business.
Share Repurchase Program
On May 17, 2017,15, 2018, our shareholders approved the renewal and replacement of the share repurchase program previously approved by the shareholders on May 18, 2016, which replaced the previous share repurchase program.17, 2017. Under the program, we are authorized to purchase up to 4.64.3 million shares of our common stock, based on a limit of 25% 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 $500.00 per share, for a period of five years from the date of approval. Under the existing and prior programs, we purchased 1.1 million shares of common stock at an average price of $22.48 per share during the nine months ended September 30, 2017 and 1.3 million shares at an average price of $26.94 per share during the nine months ended September 30, 2016 (0.3 million shares at an average price of $23.48 per share for the third quarter of 2017 and 0.5 million shares at an average price of $28.68 per share for the third quarter of 2016). As of September 30, 2017,March 31, 2023, approximately 3.92.4 million shares of common stock remain available for repurchase under the program. Our senior secured term loanThere were no purchases of shares of common stock during the three months ended March 31, 2023 and 2022. Luxembourg law limits share repurchases to the amountbalance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of March 31, 2023, we can spend on share repurchases, which wasrepurchase up to approximately $403$64 million as of September 30, 2017, and may prevent repurchases in certain circumstances.
Strategy and Growth Businesses
We are focused on becoming one of the premier providers of mortgage and real estate marketplaces and related services to a broad and diversified customer base while continuing to strengthen our compliance management system. Within the mortgage and real estate market segments, we facilitate transactions and provide products, solutions and services related to home sales, home purchases, home rentals, home maintenance, mortgage origination and mortgage servicing.
Each of our strategic businesses provides Altisourcecommon stock under Luxembourg law. Under the potential to grow and diversify our customer and revenue base. We believe these businesses operate in very large markets and directly leverage our core competencies and distinct competitive advantages. A further description of our four strategic businesses follows.
Servicer Solutions:
Through this business, we provide a suite of services and technologies to meet the evolving and growing needs of loan servicers. We are focused on growing referrals from our existing customer base, expanding the service and proprietary technology offerings to our customer base, and attracting new customers to our offerings. We have a customer base that includes Ocwen, a government-sponsored enterprise (“GSE”), NRZ, several top ten bank servicers and non-bank servicers and asset managers. Even as loan delinquencies return to historical norms, we believe there is a very large addressable market for our offerings. We believeAmended Credit Agreement, we are one of only a few providers with a broad suite of servicer solutions, nationwide coverage and demonstrated scalability. Further,

we believe we are well positionednot permitted to gain market share as existing customers and prospects consolidate to larger, full-service providers and outsource services that have historically been performed in-house.
Origination Solutions:
Through this business, we provide a suite of services and technologies to meet the evolving and growing needs of loan originators and correspondents. We are focused on growing referrals from our existing customer base, expanding the service and proprietary technology offerings to our customer base, and attracting new customers to our offerings. We have a customer base that includes the Lenders One cooperative mortgage bankers, the Mortgage Builder loan origination system customers and mid-size and larger bank and non-bank loan originators. We believe our suite of services and technologies positions us to grow our relationships with our existing customer base by providing additional products, services and solutions to these customers. Further, we believe we are well positioned to attract new customers as prospects consolidate to larger, full-service providers and outsource services that have historically been performed in-house.
Consumer Real Estate Solutions:
Through this business, we provide a technology enabled real estate brokerage and related services that handle key aspects of buying and selling a home. We are focused on developing this business by capitalizing on our core competencies in realty services and online real estate marketing and offering consumers right-sized commission structures, smart digital tools and personalized service from local real estate agents.
Real Estate Investor Solutions:
Through this business, we provide a suite of services and technologies to support buyers and sellers of single-family investment homes. We are focused on growing referrals from our existing customer base, expanding the service and proprietary technology offerings to our customer base, and attracting new customers to our offerings. We have a customer base that includes Altisource Residential Corporation (“RESI”) and other institutional and smaller single-family rental investors. The single-family rental market is large, geographically distributed and has fragmented ownership. We believe our acquisition, renovation, property management, leasing and disposition platform provides a strong value propositionrepurchase shares except for institutional and retail investors and positions us well for growth.
There can be no assurance that growth from our strategic businesses will be successful or our operations will be profitable.limited circumstances.
Ocwen Related Matters
Revenue fromDuring the three months ended March 31, 2023, Ocwen represented 58%was our largest customer, accounting for 45% of our total revenue for the three months ended March 31, 2023. Additionally, 7% of our revenue for the ninethree months ended September 30, 2017 (58% of our revenue for the third quarter of 2017). Additionally, 16% of our revenue for the nine months ended September 30, 2017 (15% of our revenue for the third quarter of 2017)March 31, 2023 was earned on the loan portfolios serviced by Ocwen, when a party other than Ocwen or NRZthe mortgage servicing rights (“MSRs”) owner selected Altisource as the service provider.
Ocwen disclosed that, on July 23, 2017, it entered into a master agreement and a transfer agreement with NRZ to undertake certain actions to facilitate the transfer of Ocwen’s remaining interests in approximately $110 billion in unpaid principal balance (as of June 30, 2017) of its non-government-sponsored enterprise (“non-GSE”) mortgage servicing rights (the “Subject MSRs”) to NRZ. As of June 30, 2017, the Subject MSRs represented approximately 78% of Ocwen’s non-GSE MSRs. In the event the required third party consents are not obtained by July 23, 2018 or an earlier date agreed to by Ocwen and NRZ, the applicable Subject MSRs may (i) become subject to a new agreement to be negotiated between Ocwen and NRZ, (ii) be acquired by Ocwen, or, if Ocwen does not desire or is otherwise unable to purchase, sold to one or more third parties, or (iii) remain subject to their existing agreements. Ocwen also disclosed that it entered into a five year subservicing agreement with NRZ pursuant to which Ocwen will subservice the mortgage loans related to the Subject MSRs that are transferred to NRZ. In addition, Ocwen disclosed that during the five year subservicing agreement term, NRZ may terminate the subservicing agreement for convenience, subject to Ocwen’s right to receive a termination fee and proper notice.
As disclosed in our report on Form 8-K filed on August 28, 2017, REALHome Services and Solutions, Inc. and REALHome Services and Solutions - CT, Inc. (collectively, “RHSS”), two licensed real estate brokerage subsidiaries of the Company, entered into a Cooperative Brokerage Agreement (the “Brokerage Agreement”) with a licensed real estate brokerage subsidiary of NRZ pursuant to which RHSS will be the exclusive provider, irrespective of the subservicer, of real estate brokerage services for portfolios associated with Subject MSRs that are transferred to NRZ (the “Ocwen Transferred Portfolio”) and with respect to approximately $6 billion of non-Ocwen serviced non-GSE portfolios. NRZ’s brokerage subsidiary will receive a cooperative brokerage commission on the sale of certain REO properties from these portfolios. In addition, Altisource and RHSS entered into a letter agreement with NRZ which provides for NRZ to directly appoint RHSS (or another real estate brokerage subsidiary designated by Altisource) to perform the real estate brokerage services with respect to REO properties in the Ocwen Portfolio, subject to

certain specified exceptions, in the event that NRZ’s brokerage subsidiary does not refer real estate listings from the Ocwen Portfolio to RHSS. In this case, the designated Altisource brokerage subsidiary would retain the full seller’s brokerage commission. The Brokerage Agreement and the letter agreement are effective through August 31, 2025 unless earlier terminated in accordance with their respective terms. Contemporaneously with the execution of the Brokerage Agreement, Altisource Solutions S.à r.l. executed a non-binding letter of intent (“LOI”) with NRZ to enter into a Services Agreement, setting forth the terms pursuant to which Altisource Solutions S.à r.l. would remain the exclusive service provider of fee-based services on the Ocwen Transferred Portfolio through August 2025, irrespective of the subservicer. The LOI provides for the parties to negotiate in good faith toward the execution of a Services Agreement within 30 days from the date of the LOI. This term was automatically extended by a further 30 days by the parties, pursuant to the terms of the LOI, as the parties continued to negotiate in good faith toward the completion and execution of a Services Agreement (such period, including as extended, the “Standstill Period”). Furthermore, as a result of continuing good faith negotiations on a Services Agreement, effective as of October 23, 2017, the parties amended the LOI to extend the term of the LOI and Standstill Period to November 30, 2017. This term will be automatically extended until January 12, 2018 if the parties are still negotiating the terms of the Services Agreement in good faith as of November 30, 2017. Pursuant to the LOI, the parties intend to negotiate all of the definitive and binding terms of the Services Agreement. RHSS has the right to terminate the Brokerage Agreement upon 90 days’ notice (which period may be shortened by NRZ) if a services agreement is not signed between Altisource and NRZ during the Standstill Period. The Brokerage Agreement may otherwise only be terminated upon the occurrence of certain specified events. NRZ has agreed that, during such notice period and/or the Standstill Period, it will not replace or reduce the role of Altisource as a service provider with respect to the Ocwen Transferred Portfolio.
Following the execution of the Services Agreement and the transfer of the Subject MSRs from Ocwen to NRZ, we anticipate that revenue from NRZ would increase and revenue from Ocwen would decrease. As mortgage servicing rights (“MSRs”) continue to transfer from Ocwen to NRZ, we anticipate that NRZ will become our largest customer. Had NRZ acquired all of the Subject MSRs and our agreements with NRZ were in place as of the beginning of the year, we estimate that approximately 50% of our revenue would have been related to NRZ. There can be no assurance that the parties will reach an agreement with respect to the terms of the Services Agreement or that a Services Agreement will be entered into on a timely basis or at all.
Ocwen 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, that have or could result in adverse regulatory or other actions against Ocwen. For example, on May 15, 2017, Ocwen disclosed that on April 20, 2017, the Consumer Financial Protection Bureau (“CFPB”) and the Statesome of Florida filed separate complaints in the United States District Court for the Southern District of Floridawhich include claims against Ocwen alleging violations of Federal consumer financial law and, in the case of Florida, Florida statutes. As another example, on May 15, 2017, Ocwen also disclosed that on April 28, 2017, the Commonwealth of Massachusetts filed a lawsuit against Ocwen in the Superior Court for the Commonwealth of Massachusetts alleging violations of state consumer financial laws relating to Ocwen’s servicing business, including lender-placed insurance and property preservation fees. Ocwen disclosed that the complaints seek to obtain permanent injunctive relief, consumer redress, refunds, restitution, disgorgement, damages, civil penalties, costs and fees and other relief. In addition, Ocwen disclosed that a number of states publicly announced or otherwise undertook various administrativesubstantial monetary damages. Previous regulatory actions against Ocwen relatedhave subjected Ocwen to alleged violationsindependent oversight of applicable lawsits operations and regulations related to servicing residential mortgages. Certain of the allegations in the complaints andplaced certain of the state administrative actions assert that Ocwen’s use of certain Altisource services was a contributing factor to Ocwen’s purported violations. Ocwen disclosed that the state administrative actions announced or undertaken purportedly seek sanctions and various injunctive reliefs which may include restrictions on Ocwen obtaining additional mortgageits ability to acquire servicing rights, continuing mortgage servicingrights. Existing or debt collection activities, originating or funding loans, initiating foreclosures or other limitations or restrictions on Ocwen’s business operations or licenses in certain of these states. Ocwen announced in several Form 8-K filings that it reached settlements with mortgage and banking regulatory agencies from certain of the states, the District of Columbia and state attorneys general that took regulatory actions against it on April 20, 2017 or shortly thereafter. Ocwen disclosed that, as part of these settlements, Ocwen will not acquire any new residential mortgage servicing rights until April 30, 2018 and will develop a plan of action and milestones regarding its transition from the servicing system it currently uses, REALServicing®, to an alternative servicing system and will not board any new loans onto the REALServicing system, as well as other key provisions. All of the forgoingfuture similar matters could result in adverse regulatory or other actions against Ocwen. While not all inclusive, other regulatory actions to date have included subjecting Ocwen to independent oversight of its operations and placing certain restrictions on its ability to acquire servicing rights. In addition in August 2017, Ocwen disclosed in its second quarter 2017 SEC Form 10-Q that it received a letter from Ginnie Mae thatto the state regulators’ cease and desist orders discussed above, create a material change in Ocwen’s business status under Ginnie Mae’s MBS Guide and that Ginnie Mae has accordingly declared an event of default under guaranty agreements between Ginnie Mae and Ocwen. Ocwen further disclosed that in the letter it received, Ginnie Mae notified Ocwen that it will refrain from immediately exercising any rights relating to this matter for a period of 90 days from the date of the letter. In addition, Ocwen has disclosed that during this period, Ginnie Mae has asked Ocwen to provide certain information regarding the cease and desist orders and certain information regarding Ocwen’s business plan, financial results and operations and Ocwen also stated that it continues to

operate as a Ginnie Mae issuer in all respects and continues to participate in Ginnie Mae issuing of mortgage-backed securities and home equity conversion loan pools in the ordinary course. Ocwen also disclosed that adverse actions by Ginnie Mae could materially and adversely impact Ocwen’s business, including if Ginnie Mae were to terminate Ocwen as an issuer or servicer of Ginnie Mae securities.
Ocwen may become subject to future federal and state regulatory investigations, inquiries, requests for information and legal proceedings, any of which could also result in adverse regulatory or other actions against Ocwen.actions.
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Ocwen has disclosed that Rithm is a significant client of Ocwen’s. As of December 31, 2022, approximately 17% of loans serviced and subserviced by Ocwen (measured in unpaid principal balance) and approximately 68% of all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs.
The foregoingexistence or outcome of Ocwen regulatory matters or the termination of Ocwen’s sub-servicing agreements with Rithm or other significant Ocwen clients may have significant adverse effects on Ocwen’s business and/or our continuing relationship with Ocwen.business. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services, (including information technology and software services), it may be required to seek changes to its existing pricing structure with us, it may lose its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or volume of services they purchase from us or the loss of other customers.
If any of the following events occurred, Altisource’s revenue wouldcould be significantly lowerreduced and our results of operations could be materially adversely affected, including from the possible impairment or write-off of goodwill, intangible assets, property and equipment, other assets and accounts receivable:
•Altisource loses Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us
•Ocwen loses, sells or transfers a significant portion or all of its non-GSEGSE or Federal Housing Administration servicing rights or subservicing arrangements or remaining other servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider
•The contractual relationship between Ocwen and Rithm changes significantly, including Ocwen’s sub-servicing arrangement with Rithm expiring without renewal, and this change results in a change in our status as a provider of services related to the Subject MSRs
•Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio
Altisource fails to be retained as a service provider
•The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue
Additionally, Ocwen has stated, including in connection with resolving several state administrative actions discussed above, that it plans•Altisource otherwise fails to transition from REALServicing to another mortgage servicing software platform. We anticipate that suchbe retained as a transition could be a multi-year project and Altisource would support Ocwen through such a transition. We do not anticipate that a servicing technology transition would impact the other services we provide to Ocwen. For the nine months ended September 30, 2017 and 2016, service revenue from REALServicing was $20.1 million and $25.7 million, respectively ($6.7 million and $8.2 million for the third quarter of 2017 and 2016, respectively). We estimate, with respect to income before income tax, that the REALServicing business currently operates at break-even.provider
Management cannot predict the outcomewhether any of these mattersevents will occur or the amount of any impact they may have on Altisource. However,We are seeking to diversify and grow our revenue and customer base and we have a sales and marketing strategy to support these efforts. Moreover, in the event one or more of these mattersevents materially negatively impact Altisource, we believe the variable nature of our cost structure would allow us to realign our cost structure in line with remaining revenue. Furthermore, in the eventto address some of a significant reduction in the volume of services purchased or loans serviced by Ocwen (such as a transfer of Ocwen’s servicing rights to a successor servicer), we believe the impact to Altisource could occur over an extended period of time. During this period, we believe that we will continue to generate revenue from all or a portion of Ocwen’s portfolio.
Additionally, our Servicer Solutions, Origination Solutions, Consumer Real Estate Solutions and Real Estate Investor Solutions businesses are focused on diversifying and growing our revenue and customer base and we have a sales and marketing strategy to support these businesses.
Management believes our plans, together withthat current liquidity and cash flows from operations would be sufficient to meet our working capital, capital expenditures, debt service and other cash needs. However, thereThere can be no assurance that our plans will be successful or our operations will be profitable.

Factors Affecting Comparability
The following items may impact the comparability of our results:
•Industrywide foreclosure initiations were 10% lower for the three months ended March 31, 2023 compared to the same period in 2022 (and 28% lower than the pre-COVID-19 period in 2019)
•Industrywide foreclosure sales were 45% higher for the three months ended March 31, 2023 compared to the same period in 2022 (although still 44% lower than the pre-COVID-19 period in 2019)
•The average numberinterest rate on the Company’s senior secured term loans was 8.73% for the three months ended March 31, 2023 compared to 5.00% for the same period in 2022
•On February 14, 2023, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into Amendment No. 2 to the Credit Agreement. In connection with Amendment No. 2, the Company paid $3.2 million to advisors and recorded these payments as other expense in the condensed consolidated statements of loans serviced by Ocwen on REALServicing (including those MSRs owned by NRZoperations and subserviced by Ocwen) was 1.3comprehensive loss
•The Company recognized an income tax provision of $1.5 million and $0.9 million for the ninethree months ended September 30, 2017 compared to 1.5 millionMarch 31, 2023 and 2022, respectively. The income tax provision for the ninethree months ended September 30, 2016, a decrease of 13% (1.2 million for the third quarter of 2017 and 1.4 million for the third quarter of 2016, a decrease of 12%). The average number of delinquent non-GSE loans servicedMarch 31, 2023 was driven by Ocwenincome tax expense on REALServicing was 182 thousand for the nine months ended September 30, 2017 compared to 224 thousand for the nine months ended September 30, 2016, a decrease of 19% (178 thousand for the third quarter of 2017 and 211 thousand for the third quarter of 2016, a decrease of 16%). The number of loans transferred by Ocwen to NRZ and serviced by NRZ was 0.1 million for the nine months ended September 30, 2017transfer pricing income from India and the third quarter of 2017.
During the nine months ended September 30, 2017, we repurchased portions of our senior secured term loan with an aggregate par value of $50.1 million at a weighted average discount of 12.2%, recognizing a net gain of $5.4 millionUnited States, reduction in deferred tax assets related to intangible assets, no tax benefit on the early extinguishmentpretax loss from our Luxembourg operating company and uncertain tax positions
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Table of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5%, recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017). During the nine months ended September 30, 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt (no repurchases in the third quarter of 2016).Contents
During the nine months ended September 30, 2016, we purchased 4.1 million shares of RESI common stock for $48.2 million (no comparative amounts in 2017). During the nine months ended September 30, 2017 and 2016, we earned dividends of $1.9 million and $1.0 million, respectively ($0.6 million for the third quarter of 2017 and no comparative amount for the third quarter of 2016), related to this investment. In addition, during the nine months ended September 30, 2016, we incurred expenses of $3.4 million related to this investment (no comparative amounts in 2017 and the third quarter of 2016).
On July 29, 2016, we acquired certain assets and assumed certain liabilities of Granite Loan Management of Delaware, LLC (“Granite”) for $9.5 million.
The effective income tax rate increased to 23.6% for the nine months ended September 30, 2017 from 20.1% for the nine months ended September 30, 2016 (decreased to 25.0% for the third quarter of 2017 from 39.0% for the third quarter of 2016). The effective income tax rate increase for the nine months ended September 30, 2017 was primarily due to changes in the expected mix of taxable income across the jurisdictions in which we operate. The lower effective income tax rate for the third quarter of 2017 was primarily the result of adjustments made in the third quarter of 2016 to true-up the tax provision from prior quarters. This was partially offset by higher pretax income in the third quarter of 2016, which, as discussed above, changed the mix of taxable income across the jurisdictions in which we operate.

CONSOLIDATED RESULTS OF OPERATIONS
Summary Consolidated Results
The following is a discussion of our consolidated results of operations for the periods indicated. For a more detailed discussion of the factors that affected the results of our business segments in these periods, see “Segment Results of Operations” below.
The following table sets forth information regardingon our consolidated results of operations:operations for the three months ended March 31:
(in thousands, except per share data)20232022% Increase (decrease)
Service revenue
Servicer and Real Estate$29,761 $27,157 10 
Origination7,310 10,606 (31)
Total service revenue37,071 37,763 (2)
Reimbursable expenses2,310 1,592 45 
Non-controlling interests80 161 (50)
Total revenue39,461 39,516 — 
Cost of revenue30,957 33,869 (9)
Gross profit8,504 5,647 51 
Selling, general and administrative expenses12,094 13,974 (13)
Loss from operations(3,590)(8,327)57 
Other income (expense), net:
Interest expense(6,760)(3,556)90 
Change in fair value of warrant liability694 — N/M
Debt amendment costs(3,242)— N/M
Other income (expense), net1,560 740 111 
Total other income (expense), net(7,748)(2,816)175 
Loss before income taxes and non-controlling interests(11,338)(11,143)(2)
Income tax provision(1,529)(886)73 
Net loss(12,867)(12,029)(7)
Net income attributable to non-controlling interests(80)(161)50 
Net loss attributable to Altisource$(12,947)$(12,190)(6)
Margins:   
Gross profit / service revenue23 %15 % 
Loss from operations / service revenue(10)%(22)% 
Loss per share:
Basic$(0.70)$(0.76)8 
Diluted$(0.70)$(0.76)8 
Weighted average shares outstanding:
Basic18,442 15,956 16 
Diluted18,442 15,956 16 
  Three months ended September 30, Nine months ended September 30,
(in thousands, except per share data) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Service revenue        
  
  
Mortgage Market $189,615
 $199,176
 (5) $583,002
 $584,740
 —
Real Estate Market 21,113
 21,231
 (1) 64,649
 68,805
 (6)
Other Businesses, Corporate and Eliminations 13,580
 19,375
 (30) 44,603
 61,841
 (28)
Total service revenue 224,308
 239,782
 (6) 692,254
 715,386
 (3)
Reimbursable expenses 9,866
 12,080
 (18) 31,786
 41,317
 (23)
Non-controlling interests 805
 883
 (9) 2,107
 1,973
 7
Total revenue 234,979
 252,745
 (7) 726,147
 758,676
 (4)
Cost of revenue 174,898
 174,002
 1
 538,244
 517,236
 4
Gross profit 60,081
 78,743
 (24) 187,903
 241,440
 (22)
Selling, general and administrative expenses 46,622
 53,886
 (13) 146,793
 161,709
 (9)
Income from operations 13,459
 24,857
 (46) 41,110
 79,731
 (48)
Other income (expense), net:            
Interest expense (5,599) (5,952) (6) (16,862) (18,481) (9)
Other income (expense), net 2,497
 (109) N/M
 8,015
 2,608
 207
Total other income (expense), net (3,102) (6,061) (49) (8,847) (15,873) (44)
             
Income before income taxes and non-controlling interests 10,357
 18,796
 (45) 32,263
 63,858
 (49)
Income tax provision (2,591) (7,324) (65) (7,615) (12,808) (41)
             
Net income 7,766
 11,472
 (32) 24,648
 51,050
 (52)
Net income attributable to non-controlling interests (805) (883) (9) (2,107) (1,973) 7
             
Net income attributable to Altisource $6,961
 $10,589
 (34) $22,541
 $49,077
 (54)
             
Margins:        
  
  
Gross profit/service revenue 27% 33%   27% 34%  
Income from operations/service revenue 6% 10%   6% 11%  
             
Earnings per share:            
Basic $0.39
 $0.57
 (32) $1.23
 $2.63
 (53)
Diluted $0.38
 $0.54
 (30) $1.20
 $2.49
 (52)

N/M — not meaningful.
30
Table of Contents
Revenue
We recognized service revenue of $692.3$37.1 million for the ninethree months ended September 30, 2017,March 31, 2023, a 3%2% decrease compared to the ninethree months ended September 30, 2016 ($224.3 million for the third quarter of 2017, a 6% decrease compared to the third quarter of 2016).March 31, 2022. The decreases in service revenue for the nine months ended September 30, 2017 and the third quarter of 2017 weredecline is primarily fromdriven by lower service revenue in our customer relationship management and IT infrastructure services businesses in the Other Businesses, Corporate and EliminationsOrigination segment the normal runoff of Ocwen’s portfolio in the Mortgage Market and RESI’s smaller portfolio of non-performing loans and REO in the Real Estate Market. Customer relationship management revenue declined primarily because during 2016 we severed relationships with certain clients that were not profitable to us and we experienced a

reduction in volume from the transition of services from one customer to another. IT infrastructure services revenue declined from the transition of resources supporting Ocwen’s technology infrastructure to Ocwen. These decreases were largelyoverall market decline in mortgage originations partially offset by growth in referralsthe Servicer and Real Estate segment from the continuing recovery of certain higher feethe default market.
We recognized reimbursable expense revenue of $2.3 million for the three months ended March 31, 2023, a 45% increase compared to the three months ended March 31, 2022. The increase in reimbursable expenses for the three months ended March 31, 2023 is primarily driven by an increase in property preservation, servicesasset resolution and growth in home sales revenue in the buy-renovate-sell business, which began operations in the second half of 2016. Reimbursable expenses revenue declined from a 2015 change in the pricing and billing model for preservation services on new Ocwen REO referrals that resulted in certain services that were historically reimbursable expenses revenue becoming service revenue.asset management activities.
Certain of our revenues arecan be impacted by seasonality. More specifically, revenues from property sales, loan originations and certain property preservation services in Field Services typically tend to be at their lowest level during the fall and winter months and at their highest level during the spring and summer months. In addition, the asset recovery management business tends to be higher in the first quarter,However, as borrowers may utilize tax refunds and bonuses to pay debts, and generally declines throughout the resta result of the year.pandemic and related measures and the rapid rise in mortgage interest rates the seasonal impact to revenue may not follow historical patterns.
Cost of Revenue and Gross Profit
Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service, operations and operationstechnology roles, fees paid to external providers related to the provision of services, and the cost of real estate sold, reimbursable expenses, technology and telecommunications costs andas well as depreciation and amortization of operating assets.
Cost of revenue consistedconsists of the following:
Three months ended March 31,
(in thousands)20232022% Increase (decrease)
Outside fees and services$15,094 $12,903 17 
Compensation and benefits9,701 13,521 (28)
Technology and telecommunications3,397 5,232 (35)
Reimbursable expenses2,310 1,592 45 
Depreciation and amortization455 621 (27)
Cost of revenue$30,957 $33,869 (9)
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Compensation and benefits $60,332
 $66,357
 (9) $186,090
 $201,193
 (8)
Outside fees and services 83,670
 77,445
 8
 250,883
 222,574
 13
Cost of real estate sold 4,411
 —
 N/M
 16,461
 —
 N/M
Reimbursable expenses 9,866
 12,080
 (18) 31,786
 41,317
 (23)
Technology and telecommunications 10,389
 11,502
 (10) 32,681
 32,145
 2
Depreciation and amortization 6,230
 6,618
 (6) 20,343
 20,007
 2
             
Cost of revenue $174,898
 $174,002
 1
 $538,244
 $517,236
 4
N/M — not meaningful.
CostWe recognized cost of revenue of $31.0 million for the ninethree months ended September 30, 2017 of $538.2 million increased 4%March 31, 2023, a 9% decrease compared to the ninethree months ended September 30, 2016 ($174.9 millionMarch 31, 2022. Compensation and benefits for the third quarterthree months ended March 31, 2023 decreased primarily due to cost savings measures taken in 2022 and early 2023 and the alignment of 2017, a 1% increase compared to the third quarter of 2016). The increases in cost of revenue were primarily driven by higher outside fees and services and cost of real estate sold, partially offset by decreases in compensation and benefits in the Origination segment with lower revenue. Technology and reimbursable expenses.telecommunications decreased primarily due to the renegotiation of certain contracts and lower overall headcount. Outside fees and services for the three months ended March 31, 2023 increased primarily from higher Field Services revenue in the Mortgage Market due to growth in referralsSolutions business of certain higher cost property preservation services in the Servicer Solutions business, partially offset by lower costs related to RESI’s smaller portfolio of non-performing loans and REO in the Real Estate Investor Solutions business. Thesegment. In addition, the increases in cost of real estate sold were the result of properties sold in connection with our buy-renovate-sell program, which began operations in the second half of 2016.
Compensation and benefits declined in the Mortgage Market in the Servicer Solutions business as we reduced headcount levels in certain businesses,reimbursable expenses are consistent with the declinechanges in servicereimbursable expense revenue discussed in the revenue section above and benefited from efficiency initiatives. In the Other Businesses, Corporate and Eliminations segment, compensation and benefits decreased in connection with the transition of resources supporting Ocwen’s technology infrastructure to Ocwen and lower headcount levels in our customer relationship management business from a decrease in client relationships, as discussed in the revenue section above. In the Real Estate Market, compensation and benefits increased in the Consumer Real Estate Solutions business to support growth of this business, partially offset by lower headcount levels in the Real Estate Investor Solutions business driven by lower customer volumes in certain business units.
Reimbursable expenses declined in the Mortgage Market’s Servicer Solutions business primarily as a result of the change in the pricing and billing model discussed in the revenue section above.
Gross profit decreasedincreased to $187.9$8.5 million, representing 27%23% of service revenue, for the ninethree months ended September 30, 2017March 31, 2023 compared to $241.4$5.6 million, representing 34%15% of service revenue, for the ninethree months ended September 30, 2016 (decreased to $60.1 million, representing 27% of service revenue, for the third quarter of 2017 compared to $78.7 million, representing 33% of service revenue, for the third quarter of 2016).March 31, 2022. Gross profit as a percentage of service revenue decreasedfor the three months ended March 31, 2023 increased compared to the three months ended March 31, 2022 primarily due to margin expansion in the Servicer and Real Estate segment from efficiency initiatives and cost savings measures partially offset by revenue

mix and investments in our growth businesses. Revenue mix changed from growthlower gross profit margin in the Origination segment from product mix and lower margin property preservation and buy-renovate-sell businesses and declines in other higher margin businesses.revenue.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (“SG&A”) includeexpenses includes payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, human resources, vendor management, facilities and risk management sales and marketing roles. This category also includes occupancy related costs, amortization of intangible assets, professional services fees, occupancy costs, marketing costs, and depreciation and amortization of non-operating assets and other expenses.
31
Table of Contents
SG&A expense consistedexpenses consist of the following:
 Three months ended September 30, Nine months ended September 30,Three months ended March 31,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)(in thousands)20232022% Increase (decrease)
            
Compensation and benefits $15,068
 $14,145
 7
 $43,115
 $42,460
 2
Compensation and benefits$6,030 $5,409 11 
Professional servicesProfessional services1,571 2,749 (43)
Occupancy related costs 8,536
 8,903
 (4) 28,347
 26,785
 6
Occupancy related costs1,442 1,624 (11)
Amortization of intangible assets 8,604
 11,465
 (25) 27,143
 36,432
 (25)Amortization of intangible assets1,280 1,284 — 
Professional services 3,886
 4,097
 (5) 11,983
 17,533
 (32)
Marketing costs 3,992
 9,275
 (57) 11,958
 21,438
 (44)Marketing costs382 887 (57)
Depreciation and amortization 2,286
 2,557
 (11) 7,068
 7,514
 (6)Depreciation and amortization244 337 (28)
Other 4,250
 3,444
 23
 17,179
 9,547
 80
Other1,145 1,684 (32)
            
Selling, general and administrative expenses $46,622
 $53,886
 (13) $146,793
 $161,709
 (9)Selling, general and administrative expenses$12,094 $13,974 (13)
SG&A expenses for the ninethree months ended September 30, 2017March 31, 2023 of $146.8$12.1 million decreased 9%by 13% compared to the ninethree months ended September 30, 2016 ($46.6 millionMarch 31, 2022. The decrease was primarily driven by lower professional services, marketing costs and Other expenses. Professional services for the third quarter of 2017, a 13% decrease compared to the third quarter of 2016). The decreases in SG&A werethree months ended March 31, 2023 decreased primarily due to lower marketinglegal and litigation fees. Marketing costs driven by initial non-recurring Owners.com market launch costs incurred duringfor the ninethree months ended September 30, 2016,March 31, 2023 decreased from efficiency measures primarily in the reduction in Owners.com recurring marketing spending asOrigination segment. The decreases for the business unit focuses on improving the lead to closing conversion rate and lower amortization of intangible assets driventhree months ended March 31, 2023 were partially offset by an increase in total projected revenue to be generated bycompensation and benefits in the Homeward Residential, Inc. (“Homeward”) and Residential Capital, LLC (“ResCap”) portfolios over the livesfirst quarter of these portfolios (revenue-based amortization). In addition, professional services legal costs were lower2023.
Loss from Operations
Loss from operations for the ninethree months ended September 30, 2017 in connection with the resolution of, and reduction in activities related to, several litigation and regulatory matters. The decrease in SG&A for the nine months ended September 30, 2017March 31, 2023 was partially offset by unfavorable loss accrual adjustments of $2.7 million relating to facility closures and litigation related costs in other SG&A in the second quarter of 2017 (no comparative amount for the nine months ended September 30, 2016). In addition, the decreases in SG&A for the nine month ended September 30, 2017 were partially offset by a $3.0 million favorable loss accrual adjustment in other SG&A in the nine months ended September 30, 2016 (no comparative amounts for the nine months ended September 30, 2017 and the third quarter of 2017 and 2016).
Income from Operations
Income from operations decreased to $41.1$(3.6) million, representing 6%(10)% of service revenue, compared to $(8.3) million, representing (22)% of service revenue, for the ninethree months ended September 30, 2017 compared to $79.7 million, representing 11% of service revenue, for the nine months ended September 30, 2016 (decreased to $13.5 million, representing 6% of service revenue, for the third quarter of 2017 compared to $24.9 million, representing 10% of service revenue, for the third quarter of 2016). The decrease in operating incomeMarch 31, 2022. Loss from operations as a percentage of service revenue wasimproved for the three months ended March 31, 2023 compared to the three months ended March 31, 2022, primarily as a result of the decrease inhigher gross profit margin, partially offset by lowermargins and the percentage reduction in SG&A expenses asin excess of the percentage change in revenue, discussed above.
Other Income (Expense), net
Other income (expense), net principally includes interest expense and other non-operating gains and losses. Interest expense
Other income (expense), net was $16.9$(7.7) million for the ninethree months ended September 30, 2017, a decrease of $1.6 millionMarch 31, 2023 compared to the nine months ended September 30, 2016 ($5.6$(2.8) million for the third quarterthree months ended March 31, 2022. The change for the three months ended March 31, 2023 was primarily driven by an increase of 2017, a decrease$3.2 million in interest expense driven by higher interest rates on our SSTL and higher amortization of $0.4debt discount and debt issuance and amendment costs, and $3.2 million compared toof debt amendment costs in the third quarter of 2016), primarily due to the 2017 and 2016 repurchases of portions of our senior secured term loan with an aggregate par value of $101.1 million,three months ended March 31, 2023, partially offset by an increase in the senior secured term loanhigher interest rate from 4.50% as of December 31, 2016 and 4.72% as of June 30, 2017 to 4.74% as of September 30, 2017. Other non-operating gains and losses primarily represent gains on the early extinguishment of debt and income and expenses related to our investment in RESI common stock.

During the nine months ended September 30, 2017, we repurchased portions of our senior secured term loan with an aggregate par value of $50.1 million at a weighted average discount of 12.2%, recognizing a net gain of $5.4 million on the early extinguishment of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5%, recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017). During the nine months ended September 30, 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt (no repurchases in the third quarter of 2016).
During the nine months ended September 30, 2017 and 2016, we earned dividends of $1.9 million and $1.0 million, respectively ($0.6 million for the third quarter of 2017 and no comparative amount for the third quarter of 2016) related to our investment in RESI. In addition, during the nine months ended September 30, 2016, we incurred expenses of $3.4 million related to this investment (no comparative amounts in 2017 and the third quarter of 2016).other income.
Income Tax Provision
We recognized an income tax provision of $7.6$1.5 million and $0.9 million for the ninethree months ended September 30, 2017 compared to $12.8 millionMarch 31, 2023 and 2022, respectively. The income tax provision for the ninethree months ended September 30, 2016 ($2.6 million and $7.3 million for the third quarter of 2017 and 2016, respectively). Our effectiveMarch 31, 2023 was driven by income tax rate was 23.6% and 20.1% for the nine months ended September 30, 2017 and September 30, 2016, respectively (25.0% and 39.0% for the third quarter of 2017 and 2016, respectively). Our effective tax rates differexpense on transfer pricing income from the Luxembourg statutory tax rate of 27.1% and 29.2% in 2017 and 2016, respectively, primarily due to the effect of certain deductions in LuxembourgIndia and the mixUnited States, reduction in deferred tax assets related to intangible assets, no tax benefit on the pretax loss from our Luxembourg operating company and uncertain tax positions.
32
Table of income and losses with varying tax rates in multiple taxing jurisdictions. The higher effective income tax rate for the nine months ended September 30, 2017 was primarily the result of lower pretax income, which changed the mix of taxable income across the jurisdictions in which we operate. The lower effective income tax rate for the third quarter of 2017 was primarily the result of adjustments made in the third quarter of 2016 to true-up the tax provision from prior quarters. This was partially offset by higher pretax income in the third quarter of 2016, which, as discussed above, changed the mix of taxable income across the jurisdictions in which we operate.Contents
SEGMENT RESULTS OF OPERATIONS
Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. The former Mortgage Services segment was separated into the Mortgage Market and Real Estate Market segments (see Overview - Our Business). Furthermore, certain of the software services business units that were formerly in the Technology Services segment and the mortgage charge-off collections business that was formerly in the Financial Services segment are now included in the Mortgage Market. Other Businesses, Corporate and Eliminations includes the asset recovery management services and customer relationship management services that were formerly in the Financial Services segment as well as IT infrastructure management services formerly in the Technology Services segment (see Overview - Our Business). Prior year comparable period segment disclosures have been restated to conform to the current year presentation.
The following section provides a discussion of pretax results of operations of our business segments. Transactions between segments are accounted for as third party arrangements for purposes of presenting segment results of operations and eliminated in consolidation.operations.
Financial information for our segments was as follows:
 Three months ended March 31, 2023
(in thousands)Servicer and Real EstateOriginationCorporate and OthersConsolidated Altisource
Revenue    
Service revenue$29,761 $7,310 $— $37,071 
Reimbursable expenses2,184 126 — 2,310 
Non-controlling interests— 80 — 80 
31,945 7,516 — 39,461 
Cost of revenue19,725 7,454 3,778 30,957 
Gross profit (loss)12,220 62 (3,778)8,504 
Selling, general and administrative expenses2,301 1,726 8,067 12,094 
Income (loss) from operations9,919 (1,664)(11,845)(3,590)
Total other income (expense), net— — (7,748)(7,748)
Income (loss) before income taxes and
non-controlling interests
$9,919 $(1,664)$(19,593)$(11,338)
Margins:
Gross profit (loss) / service revenue41 %1 %N/M23 %
Income (loss) from operations / service revenue33 %(23)%N/M(10)%
_____________________________________
N/M — not meaningful.
 Three months ended March 31, 2022
(in thousands)Servicer and Real EstateOriginationCorporate and OthersConsolidated Altisource
Revenue    
Service revenue$27,157 $10,606 $— $37,763 
Reimbursable expenses1,379 213 — 1,592 
Non-controlling interests— 161 — 161 
28,536 10,980 — 39,516 
Cost of revenue19,740 9,307 4,822 33,869 
Gross profit (loss)8,796 1,673 (4,822)5,647 
Selling, general and administrative expenses3,059 2,120 8,795 13,974 
Income (loss) from operations5,737 (447)(13,617)(8,327)
Total other income (expense), net— — (2,816)(2,816)
Income (loss) before income taxes and
non-controlling interests
$5,737 $(447)$(16,433)$(11,143)
Margins:
Gross profit (loss) / service revenue32 %16 %N/M15 %
Income (loss) from operations / service revenue21 %(4)%N/M(22)%
_____________________________________
N/M — not meaningful.
33
  Three months ended September 30, 2017
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue  
  
  
  
Service revenue $189,615
 $21,113
 $13,580
 $224,308
Reimbursable expenses 8,842
 1,008
 16
 9,866
Non-controlling interests 805
 —
 —
 805
  199,262
 22,121
 13,596
 234,979
Cost of revenue 137,466
 23,497
 13,935
 174,898
Gross profit (loss) 61,796
 (1,376) (339) 60,081
Selling, general and administrative expenses 28,006
 4,208
 14,408
 46,622
Income (loss) from operations 33,790
 (5,584) (14,747) 13,459
Total other income (expense), net 26
 —
 (3,128) (3,102)
         
Income (loss) before income taxes and
non-controlling interests		 $33,816
 $(5,584) $(17,875) $10,357
         
Margins:  
  
  
  
Gross profit (loss)/service revenue 33% (7)% (2)% 27%
Income (loss) from operations/service revenue 18% (26)% (109)% 6%

Table of Contents
  Three months ended September 30, 2016
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue  
  
  
  
Service revenue $199,176
 $21,231
 $19,375
 $239,782
Reimbursable expenses 11,762
 285
 33
 12,080
Non-controlling interests 883
 —
 —
 883
  211,821
 21,516
 19,408
 252,745
Cost of revenue 138,646
 16,634
 18,722
 174,002
Gross profit 73,175
 4,882
 686
 78,743
Selling, general and administrative expenses 29,903
 6,961
 17,022
 53,886
Income (loss) from operations 43,272
 (2,079) (16,336) 24,857
Total other income (expense), net 10
 —
 (6,071) (6,061)
         
Income (loss) before income taxes and
non-controlling interests		 $43,282
 $(2,079) $(22,407) $18,796
         
Margins:  
  
  
  
Gross profit/service revenue 37% 23 % 4 % 33%
Income (loss) from operations/service revenue 22% (10)% (84)% 10%

  Nine months ended September 30, 2017
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue  
  
  
  
Service revenue $583,002
 $64,649
 $44,603
 $692,254
Reimbursable expenses 29,071
 2,665
 50
 31,786
Non-controlling interests 2,107
 —
 —
 2,107
  614,180
 67,314
 44,653
 726,147
Cost of revenue 421,942
 72,484
 43,818
 538,244
Gross profit (loss) 192,238
 (5,170) 835
 187,903
Selling, general and administrative expenses 86,493
 14,084
 46,216
 146,793
Income (loss) from operations 105,745
 (19,254) (45,381) 41,110
Total other income (expense), net 138
 —
 (8,985) (8,847)
         
Income (loss) before income taxes and
non-controlling interests		 $105,883
 $(19,254) $(54,366) $32,263
         
Margins:  
  
  
  
Gross profit (loss)/service revenue 33% (8)% 2 % 27%
Income (loss) from operations/service revenue 18% (30)% (102)% 6%

  Nine months ended September 30, 2016
(in thousands) Mortgage Market Real Estate Market Other Businesses, Corporate and Eliminations Consolidated Altisource
         
Revenue  
  
  
  
Service revenue $584,740
 $68,805
 $61,841
 $715,386
Reimbursable expenses 39,809
 1,424
 84
 41,317
Non-controlling interests 1,973
 —
 —
 1,973
  626,522
 70,229
 61,925
 758,676
Cost of revenue 408,412
 47,946
 60,878
 517,236
Gross profit 218,110
 22,283
 1,047
 241,440
Selling, general and administrative expenses 90,498
 18,755
 52,456
 161,709
Income (loss) from operations 127,612
 3,528
 (51,409) 79,731
Total other income (expense), net 144
 —
 (16,017) (15,873)
         
Income (loss) before income taxes and
non-controlling interests		 $127,756
 $3,528
 $(67,426) $63,858
         
Margins:  
  
  
  
Gross profit/service revenue 37% 32% 2 % 34%
Income (loss) from operations/service revenue 22% 5% (83)% 11%


Mortgage MarketServicer and Real Estate
Revenue
Revenue by line of business unit was as follows:follows for the three months ended March 31:
 Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)(in thousands)20232022% Increase (decrease)
            
Service revenue:  
      
    
Service revenue:  
Servicer Solutions $176,258
 $183,804
 (4) $545,447
 $546,736
 —
Origination Solutions 13,357
 15,372
 (13) 37,555
 38,004
 (1)
SolutionsSolutions$18,534 $16,306 14 
MarketplaceMarketplace7,712 8,091 (5)
Technology and SaaS ProductsTechnology and SaaS Products3,515 2,760 27 
Total service revenue 189,615
 199,176
 (5) 583,002
 584,740
 —
Total service revenue29,761 27,157 10 
            
Reimbursable expenses:            Reimbursable expenses:
Servicer Solutions 8,803
 11,684
 (25) 28,854
 39,632
 (27)
Origination Solutions 39
 78
 (50) 217
 177
 23
SolutionsSolutions1,004 568 77 
MarketplaceMarketplace1,180 811 45 
Total reimbursable expenses 8,842
 11,762
 (25) 29,071
 39,809
 (27)Total reimbursable expenses2,184 1,379 58 
            
Non-controlling interests 805
 883
 (9) 2,107
 1,973
 7
            
Total revenue $199,262
 $211,821
 (6) $614,180
 $626,522
 (2)Total revenue$31,945 $28,536 12 
We recognized service revenue of $583.0$29.8 million for the ninethree months ended September 30, 2017,March 31, 2023, a less than 1% decrease10% increase compared to the ninethree months ended September 30, 2016 ($189.6March 31, 2022. We also recognized reimbursable expense revenue of $2.2 million for the third quarter of 2017,three months ended March 31, 2023, a 5% decrease58% increase compared to the third quarter of 2016). Service revenue for the ninethree months ended September 30, 2017 declined primarily as a result of the normal run-off of Ocwen’s loan servicing portfolioMarch 31, 2022. The increase in service revenue in the Servicer and Real Estate segment for the three months ended March 31, 2023 was driven by the continuing recovery of the default market. The increase in our Solutions business. This decline was almost entirely offsetbusiness is primarily driven by growth in referrals of certain higher fee property preservation services, a change in 2015referrals in the pricing and billing model for preservation services on new Ocwen REO referrals that resulted in certain services that were historically reimbursable expenses revenue becoming service revenue, the acquisition of Granite in July 2016 and growth in non-Ocwen service revenues from new and existing customersField Services business. The increase in the Servicer Solutions business. ServiceTechnology and SaaS Products business was from higher professional services revenue for the third quarter of 2017 declined primarily as a result of the normal run-off of Ocwen’s loan servicing portfolio in the Servicer SolutionsEquator business. This decline was partially offset by growth in referrals of certain higher fee property preservation services, a change in 2015 in the pricing and billing model for preservation services as discussed above and growth in non-Ocwen service revenues from new and existing customers in the Servicer Solutions business.
The decreases in reimbursable expenses revenue were primarily due to the change in 2015 in the pricing and billing model for preservation services on new Ocwen REO referrals described above.
Certain of our Mortgage MarketServicer and Real Estate businesses are impacted by seasonality. Revenues from property sales loan originations and certain property preservation services are generally lowest during the fall and winter months and highest during the spring and summer months. However, as a result of the pandemic and related measures and the rapid rise in mortgage interest rates the seasonal impact to revenue may not follow historical patterns.
Cost of Revenue and Gross Profit
Cost of revenue consisted of the following:following for the three months ended March 31:
 Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)(in thousands)20232022% Increase (decrease)
            
Outside fees and servicesOutside fees and services$10,255 $8,624 19 
Compensation and benefits $41,475
 $44,876
 (8) $126,153
 $134,693
 (6)Compensation and benefits5,719 7,098 (19)
Outside fees and services 74,902
 70,506
 6
 228,982
 199,737
 15
Reimbursable expenses 8,842
 11,762
 (25) 29,071
 39,809
 (27)Reimbursable expenses2,184 1,379 58 
Technology and telecommunications 7,708
 7,372
 5
 23,589
 21,795
 8
Technology and telecommunications1,351 2,391 (43)
Depreciation and amortization 4,539
 4,130
 10
 14,147
 12,378
 14
Depreciation and amortization216 248 (13)
            
Cost of revenue $137,466
 $138,646
 (1) $421,942
 $408,412
 3
Cost of revenue$19,725 $19,740 — 
Cost of revenue for the ninethree months ended September 30, 2017March 31, 2023 of $421.9$19.7 million increased by 3%was relatively flat compared to the ninethree months ended September 30, 2016 ($137.5 million for the third quarter of 2017, a 1% decrease compared to the third quarter of 2016).March 31, 2022. The increase instable cost of revenue for the ninethree months ended September 30, 2017 wasMarch 31, 2023 is primarily driven by lower compensation and benefits primarily due to cost savings initiatives and lower technology and telecommunications due to a change in the terms of a vendor agreement for property management technologies and other cost savings initiatives. These decreases are largely offset by higher outside fees and services in the Field Services business in the Solutions business from revenue growth and an increase in reimbursable expenses largely due to revenue growth and a higher volume of asset resolution and asset management activities.
Gross profit increased to $12.2 million, representing 41% of service revenue, for the three months ended March 31, 2023 compared to $8.8 million, representing 32% of service revenue, for the three months ended March 31, 2022. Gross profit as a
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percentage of service revenue for the three months ended March 31, 2023 increased primarily due to efficiency initiatives and cost savings measures, partially offset by decreasesrevenue mix with revenue growth in reimbursableour lower margin Field Services business. Our margins can vary substantially depending upon the service revenue mix.
Selling, General and Administrative Expenses
SG&A expenses and compensation and benefits. Outside fees and services increasedconsisted of the following for the three months ended March 31:
(in thousands)20232022% Increase (decrease)
Amortization of intangible assets$740 $744 (1)
Compensation and benefits642 653 (2)
Professional services281 559 (50)
Marketing costs299 357 (16)
Occupancy related costs174 311 (44)
Depreciation and amortization1 3 (67)
Other164 432 (62)
Selling, general and administrative expenses$2,301 $3,059 (25)
SG&A for the three months ended March 31, 2023 of $2.3 million decreased by 25% compared to the three months ended March 31, 2022. The decrease in SG&A for the three months ended March 31, 2023 is primarily due to lower professional services driven by certain non-recurring expenses incurred in the first quarter of 2022, lower Other expenses, including reversal of bad debt expense from collection of aged receivables in the first quarter of 2023, and lower occupancy related costs relating to cost savings initiatives.
Income from Operations
Income from operations increased to $9.9 million, representing 33% of service revenue, for the three months ended March 31, 2023 compared to $5.7 million, representing 21% of service revenue, for the three months ended March 31, 2022. The increase in operating income as a percentage of service revenue for the three months ended March 31, 2023 is primarily the result of higher gross profit margins and a reduction in SG&A expenses with growth in referralsrevenue, discussed above.
Origination
Revenue
Revenue by business unit was as follows for the three months ended March 31:
(in thousands)20232022% Increase (decrease)
Service revenue:  
Lenders One$5,624 $5,674 (1)
Solutions1,510 4,746 (68)
Technology and SaaS Products176 186 (5)
Total service revenue7,310 10,606 (31)
Reimbursable expenses:
Solutions126 213 (41)
Total reimbursable expenses126 213 (41)
Non-controlling interests80 161 (50)
Total revenue$7,516 $10,980 (32)
We recognized service revenue of certain higher cost property preservation services in$7.3 million for the Servicer Solutions business, consistent withthree months ended March 31, 2023, a 31% decrease compared to the growththree months ended March 31, 2022. We also recognized reimbursable expense revenue of $0.1 million for the three months ended March 31, 2023, a 41% decrease compared to the three months ended March 31, 2022. The decrease in service revenue discussed
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in the Origination segment for the three months ended March 31, 2023 is primarily driven by the overall market decline in mortgage originations. The 1% decline in Lenders One revenue section above, particularly duringis lower than the first half of 2017. Reimbursable expenses declined primarilyestimated 52% overall market decline as we onboarded sales wins with our solutions that are designed to help our members save money. The decline in the Solutions business revenue was greater than the overall market decline as a resultgreater percentage of revenue in some of our Solutions businesses was derived from refinance transactions which declined at a greater rate than the overall market.
Cost of Revenue and Gross Profit
Cost of revenue consisted of the change in billing discussed infollowing for the three months ended March 31:
(in thousands)20232022% Increase (decrease)
Outside fees and services$4,839 $4,279 13 
Compensation and benefits2,148 4,305 (50)
Technology and telecommunications332 501 (34)
Reimbursable expenses126 213 (41)
Depreciation and amortization9 9 — 
Cost of revenue$7,454 $9,307 (20)
Cost of revenue section above. Compensation and benefits declined in certainfor the three months ended March 31, 2023 of $7.5 million decreased by 20% compared to the Servicer Solutions businesses as we reduced headcount levels in certain businesses, consistent with the decline in service revenue discussed in the revenue section above and benefited from efficiency initiatives.three months ended March 31, 2022. The decrease in cost of revenue for the third quarter of 2017three months ended March 31, 2023 was primarily due to a decrease indriven by the alignment of compensation and benefits in certain of the Servicer Solutions businesses and reimbursable expenses,with lower service revenue discussed above, partially offset by an increase in outside fees and services consistent with the service revenue discussion above.from growth in sales of certain Lenders One reseller solutions.
Gross profit decreased to $192.2$0.1 million, representing 33%1% of service revenue, for the ninethree months ended September 30, 2017March 31, 2023 compared to $218.1$1.7 million, representing 37%16% of service revenue, for the ninethree months ended September 30, 2016 (decreased to $61.8 million, representing 33% of service revenue for the third quarter of 2017, compared to $73.2 million, representing 37% of service revenue for the third quarter of 2016).March 31, 2022. Gross profit as a percentage of service revenue declineddecreased primarily due toas costs did not decline at the same rate that revenue mix from growth in the lower margin property preservation services and declines in other higher margin businesses. Our margins can vary substantially depending upon service revenue mix.declined.
Selling, General and Administrative Expenses and Income from Operations
SG&A expenses consisted of the following:following for the three months ended March 31:
 Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)(in thousands)20232022% Increase (decrease)
            
Compensation and benefits $6,292
 $5,492
 15
 $17,393
 $16,368
 6
Compensation and benefits$665 $403 65 
Occupancy related costs 5,648
 4,997
 13
 17,687
 15,187
 16
Amortization of intangible assets 7,975
 10,761
 (26) 25,119
 34,179
 (27)Amortization of intangible assets540 540 — 
Professional services 2,319
 2,186
 6
 7,018
 9,314
 (25)Professional services181 222 (18)
Marketing costs 2,170
 3,443
 (37) 6,405
 7,859
 (19)Marketing costs94 530 (82)
Depreciation and amortization 1,012
 1,053
 (4) 2,881
 2,964
 (3)
Occupancy related costsOccupancy related costs78 183 (57)
Other 2,590
 1,971
 31
 9,990
 4,627
 116
Other168 242 (31)
            
Selling, general and administrative expenses $28,006
 $29,903
 (6) $86,493
 $90,498
 (4)Selling, general and administrative expenses$1,726 $2,120 (19)
SG&A for the ninethree months ended September 30, 2017March 31, 2023 of $86.5$1.7 million decreased by 4%19% compared to the ninethree months ended September 30, 2016 ($28.0 millionMarch 31, 2022. The decrease in SG&A for the third quarter of 2017, a 6%three months ended March 31, 2023 is primarily due to lower marketing costs from efficiency measures and lower occupancy related costs. The decrease compared tofor the third quarter of 2016). The decreases in SG&A were primarily driven by lower amortization of intangible assets, driventhree months ended March 31, 2023 was partially offset by an increase in total projected revenue to be generated by the Homeward and ResCap portfolios over the livesnumber of these portfolios (revenue-based amortization). In addition, professional services legal costs were lower for the nine months ended September 30, 2017 in connection with the resolution of, and reduction in activities related to, several litigation and regulatory matters. The decreases in SG&A for the nine months ended September 30, 2017 were partially offset by a $3.0 million favorable loss accrual adjustment in other SG&A in the nine months ended September 30, 2016 (no comparative amounts for the nine months ended September 30, 2017 and the third quarter of 2017 and 2016).sales employees.
IncomeLoss from Operations
Loss from operations decreasedincreased to $105.7$(1.7) million, representing 18%(23)% of service revenue, for the ninethree months ended September 30, 2017March 31, 2023 compared to $127.6$(0.4) million, representing 22%(4)% of service revenue, for the ninethree months ended September 30, 2016 (decreased to $33.8 million, representing 18% of service revenue for the third quarter of 2017, compared to $43.3 million, representing 22% of service revenue for the third quarter of 2016).March 31, 2022. The decreasesincrease in operating incomeloss as a percentage of service revenue werefor the three months ended March 31, 2023 is primarily the result of lower gross profit margins, from the decrease in revenue, partially offset by lower SG&A, as discussed above.above, and the percentage reduction in SG&A expenses was lower than the percentage change in revenue.

Real Estate Market
Revenue
Revenue by business unit was as follows:
36
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Service revenue:  
      
    
Consumer Real Estate Solutions $1,441
 $213
 N/M
 $3,440
 $732
 N/M
Real Estate Investor Solutions 19,672
 21,018
 (6) 61,209
 68,073
 (10)
Total service revenue 21,113
 21,231
 (1) 64,649
 68,805
 (6)
             
Reimbursable expenses:            
Real Estate Investor Solutions 1,008
 285
 254
 2,665
 1,424
 87
Total reimbursable expenses 1,008
 285
 254
 2,665
 1,424
 87
             
Total revenue $22,121
 $21,516
 3
 $67,314
 $70,229
 (4)
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N/M — not meaningful.
We recognized service revenue of $64.6 million for the nine months ended September 30, 2017, a 6% decrease compared to the nine months ended September 30, 2016 ($21.1 million for the third quarter of 2017, a 1% decrease compared to the third quarter of 2016). The decreases in service revenue were primarily due to RESI’s lower property preservation referralsCorporate and REO sales in the Real Estate Investor Solutions business as RESI continues its transition from buying non-performing loans to directly acquiring rental homes. These decreases were partially offset by growth in home sales revenue in our buy-renovate-sell program in the Real Estate Investor Solutions business, which began operations in the second half of 2016, and growth in the Consumer Real Estate Solutions business from higher transaction volumes.Others
Cost of Revenue and Gross Profit (Loss)
Cost of revenue consisted of the following:following for the three months ended March 31:
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Compensation and benefits $8,777
 $8,173
 7
 $28,167
 $21,335
 32
Outside fees and services 7,865
 6,229
 26
 19,249
 20,751
 (7)
Cost of real estate sold 4,411
 —
 N/M
 16,461
 —
 N/M
Reimbursable expenses 1,008
 285
 254
 2,665
 1,424
 87
Technology and telecommunications 1,203
 1,766
 (32) 4,659
 3,874
 20
Depreciation and amortization 233
 181
 29
 1,283
 562
 128
             
Cost of revenue $23,497
 $16,634
 41
 $72,484
 $47,946
 51
N/M — not meaningful.
(in thousands)20232022% Increase (decrease)
Compensation and benefits$1,834 $2,118 (13)
Technology and telecommunications1,714 2,340 (27)
Depreciation and amortization230 364 (37)
Cost of revenue$3,778 $4,822 (22)
Cost of revenue for the ninethree months ended September 30, 2017March 31, 2023 of $72.5$3.8 million increaseddecreased by 51%22% compared to the ninethree months ended September 30, 2016 ($23.5 million for the third quarter of 2017, a 41% increase compared to the third quarter of 2016).March 31, 2022. The increasesdecrease in cost of revenue werefor the three months ended March 31, 2023 is primarily due to increased cost of real estate sold in the Real Estate Investor Solutions business from real estate sold in connection with our buy-renovate-sell program, partially offset by lower property preservation referrals. Compensation and benefits increased in the Consumer Real Estate Solutions business to support growth of this business, partially offset by lower headcount levels in the Real Estate Investor Solutions business driven by lower customer volumes in certain business units, consistent with the decline in service revenue discussed in the revenue section above.
Gross profit decreasedcompensation and benefits and technology and telecommunications due to a loss of $5.2 million, representing (8)% of service revenue, for the nine months ended September 30, 2017, compared to gross profit of $22.3 million, representing 32% of service revenue, for the nine months ended September 30, 2016 (decreased to a loss of $1.4 million, representing (7)% of service revenue for the third quarter of 2017, compared to gross

profit of $4.9 million, representing 23% of service revenue for the third quarter of 2016). Gross profit declined primarily as a result of growth of the lower margin buy-renovate-sell program and lower brokerage commissions from higher margin REO sales.cost savings initiatives.
Selling, General and Administrative Expenses
SG&A in Corporate and Income (Loss) from OperationsOthers 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.
SG&A expenses consisted of the following:following for the three months ended March 31:
(in thousands)20232022% Increase (decrease)
Compensation and benefits$4,723 $4,353 8 
Occupancy related costs1,190 1,130 5 
Professional services1,109 1,968 (44)
Marketing costs(11)— N/M
Depreciation and amortization243 334 (27)
Other813 1,010 (20)
Selling, general and administrative expenses$8,067 $8,795 (8)
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Compensation and benefits $732
 $541
 35
 $2,469
 $1,451
 70
Occupancy related costs 631
 615
 3
 2,353
 1,681
 40
Amortization of intangible assets 211
 204
 3
 633
 752
 (16)
Professional services 339
 368
 (8) 974
 972
 —
Marketing costs 1,786
 5,751
 (69) 5,390
 13,231
 (59)
Depreciation and amortization 180
 92
 96
 561
 342
 64
Other 329
 (610) 154
 1,704
 326
 N/M
             
Selling, general and administrative expenses $4,208
 $6,961
 (40) $14,084
 $18,755
 (25)

N/M — not meaningful.
SG&A for the ninethree months ended September 30, 2017March 31, 2023 of $14.1$8.1 million decreased by 25%8% compared to the ninethree months ended September 30, 2016 ($4.2 millionMarch 31, 2022. The decrease was primarily driven by lower professional services and Other expenses. Professional services for the third quarter of 2017, a 40% decrease comparedthree months ended March 31, 2023 decreased due to the third quarter of 2016).lower insurance, legal and audit related expenses. The decreases in SG&A were primarily the result of lower marketing costs as a result of initial non-recurring Owners.com market launch costs incurred in 2016 and the reduction in Owners.com recurring marketing spending as the business unit focuses on improving the lead to closing conversion rate.
Income from operations decreased to a loss from operations of $19.3 million, representing (30)% of service revenue, for the ninethree months ended September 30, 2017 compared to income from operations of $3.5 million, representing 5% of service revenue, for the nine months ended September 30, 2016 (loss from operations of $5.6 million, representing (26)% of service revenue for the third quarter of 2017, compared to a loss from operations of $2.1 million, representing (10)% of service revenue for the third quarter of 2016). The decrease in operating income as a percentage of service revenue was primarily the result of lower gross profit margins,March 31, 2023 were partially offset by lower SG&A, as discussed above.
Other Businesses, Corporatean increase in compensation and Eliminations
Revenue
Revenue by business unit was as follows:
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Service revenue:  
      
    
Customer relationship management $6,822
 $8,777
 (22) $21,682
 $29,052
 (25)
Asset recovery management 5,743
 5,849
 (2) 17,940
 18,609
 (4)
IT infrastructure services 1,015
 4,749
 (79) 4,981
 14,180
 (65)
Total service revenue 13,580
 19,375
 (30) 44,603
 61,841
 (28)
             
Reimbursable expenses:            
Asset recovery management 16
 33
 (52) 50
 84
 (40)
Total reimbursable expenses 16
 33
 (52) 50
 84
 (40)
             
Total revenue $13,596
 $19,408
 (30) $44,653
 $61,925
 (28)
We recognized service revenue of $44.6 million for the nine months ended September 30, 2017, a 28% decrease compared to the nine months ended September 30, 2016 ($13.6 million for the third quarter of 2017, a 30% decrease compared to the third quarter of 2016). The decreases were primarily due to a decline in IT infrastructure services, which are typically billed on a cost plus basis, due to the transition of resources supporting Ocwen’s technology infrastructure to Ocwen. In addition, customer relationship management revenues were lower as we severed relationships with certain clients that were not profitable and we experienced a reduction in volume from the transition of services from one customer to another.
Certain of our other businesses are impacted by seasonality. Revenue in the asset recovery management business tends to be higherbenefits in the first quarter as borrowers may utilize tax refunds and bonuses to pay debts, and generally declines throughout the remainder of the year.2023.
Cost of Revenue and Gross Profit (Loss)
Cost of revenue consisted of the following:
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Compensation and benefits $10,080
 $13,308
 (24) $31,770
 $45,165
 (30)
Outside fees and services 903
 710
 27
 2,652
 2,086
 27
Reimbursable expenses 16
 33
 (52) 50
 84
 (40)
Technology and telecommunications 1,478
 2,364
 (37) 4,433
 6,476
 (32)
Depreciation and amortization 1,458
 2,307
 (37) 4,913
 7,067
 (30)
             
Cost of revenue $13,935
 $18,722
 (26) $43,818
 $60,878
 (28)
Cost of revenue for the nine months ended September 30, 2017 of $43.8 million decreased by 28% compared to the nine months ended September 30, 2016 ($13.9 million for the third quarter of 2017, a 26% decrease compared to the third quarter of 2016). The decreases in cost of revenue were primarily due to a decrease in compensation and benefits associated with the transition of resources supporting Ocwen’s technology infrastructure to Ocwen and reduced headcount levels in our customer relationship management business from a decrease in client relationships, as discussed in the revenue section above.
Gross profit decreased to $0.8 million, representing 2% of service revenue, for the nine months ended September 30, 2017 compared to $1.0 million, representing 2% of service revenue, for the nine months ended September 30, 2016 (decrease to gross loss of $0.3 million, representing (2)% of service revenue for the third quarter of 2017, compared to gross profit of $0.7 million, representing 4% of service revenue for the third quarter of 2016). Gross profit as a percentage of service revenue decreased due to the decrease in IT infrastructure and customer relationship management revenue, largely offset by a reduction in compensation and benefits.
Selling, General and Administrative Expenses, Loss from Operations and Other Expenses,Income (Expense), net
SG&A in Other Businesses, Corporate and Eliminations include SG&A expenses of the customer relationship management, asset recovery management and IT infrastructure services business. It also includes costs related to corporate support functions not allocated to the Mortgage Market and Real Estate Market segments.
Other income (expense), net includes interest expense and non-operating gains and losses.
Other Businesses, Corporate and Eliminations also include eliminations of transactions between the reportable segments.
SG&A expenses consisted of the following:
  Three months ended September 30, Nine months ended September 30,
(in thousands) 2017 2016 % Increase (decrease) 2017 2016 % Increase (decrease)
             
Compensation and benefits $8,044
 $8,112
 (1) $23,253
 $24,641
 (6)
Occupancy related costs 2,257
 3,291
 (31) 8,307
 9,917
 (16)
Amortization of intangible assets 418
 500
 (16) 1,391
 1,501
 (7)
Professional services 1,228
 1,543
 (20) 3,991
 7,247
 (45)
Marketing costs 36
 81
 (56) 163
 348
 (53)
Depreciation and amortization 1,094
 1,412
 (23) 3,626
 4,208
 (14)
Other 1,331
 2,083
 (36) 5,485
 4,594
 19
             
Selling, general and administrative expenses 14,408
 17,022
 (15) 46,216
 52,456
 (12)
             
Other expenses, net 3,128
 6,071
 (48) 8,985
 16,017
 (44)
             
Total corporate costs $17,536
 $23,093
 (24) $55,201
 $68,473
 (19)
SG&A for the nine months ended September 30, 2017 of $46.2 million decreased by 12% compared to the nine months ended September 30, 2016 ($14.4 million for the third quarter of 2017, a 15% decrease compared to the third quarter of 2016). The decrease in SG&A for the nine months ended September 30, 2017 was primarily due to lower professional services legal costs in connection with the resolution of, and reduction in activities related to, several legal and regulatory matters and lower occupancy costs driven by subleasing certain office facilities during the fourth quarter of 2016 and the first half of 2017, partially offset by unfavorable loss accrual adjustments of $2.7 million related to facility closures and litigation related costs in other SG&A in the first half of 2017. The decrease in SG&A for the third quarter of 2017 was primarily due to lower occupancy costs, as discussed above.
Loss from operations decreased to $45.4 million for the nine months ended September 30, 2017 compared to a loss of $51.4 million for the nine months ended September 30, 2016 (decreased to $14.7 million for the third quarter of 2017 compared to a loss of $16.3 million for the third quarter of 2016). The decreases in loss from operations were primarily driven by decreases in SG&A, as discussed above.
Other expenses, net principally includes interest expense and other non-operating gains and losses. For the nine months ended September 30, 2017, other expenses,
Other income (expense), net of $9.0 million decreased by 44% compared to the nine months ended September 30, 2016 ($3.1was $(7.7) million for the third quarter of 2017, decreased by 48%three months ended March 31, 2023 compared to the third quarter of 2016) due to lower interest expense in 2017 and non-recurring expenses incurred in the first half of 2016, relating to our investment in RESI. In addition, other expenses, net decreased for the third quarter of 2017 from increased gains on the early extinguishment of debt and income related to our investment in RESI.
Interest expense was $16.9$(2.8) million for the ninethree months ended September 30, 2017, a decrease of $1.6 million compared toMarch 31, 2022. The change for the ninethree months ended September 30, 2016 ($5.6March 31, 2023 was primarily driven by an increase of $3.2 million forin interest expense driven by higher interest rates on our SSTL and higher amortization of debt discount and debt issuance and amendment costs, and $3.2 million of debt amendment costs in the third quarter of 2017, a decrease of $0.4 million compared to the third quarter of 2016), primarily due to the 2017 and 2016 repurchases of portions of our senior secured term loan with an aggregate par value of $101.1 million,three months ended March 31, 2023, partially offset by an increase in the senior secured term loanhigher interest rate from 4.50% asand other income.
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Table of December 31, 2016 and 4.72% as of June 30, 2017 to 4.74% as of September 30, 2017.Contents
During the nine months ended September 30, 2017, we repurchased portions of our senior secured term loan with an aggregate par value of $50.1 million at a weighted average discount of 12.2%, recognizing a net gain of $5.4 million on the early extinguishment of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5%, recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017). During the nine months ended September 30, 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt (no repurchases in the third quarter of 2016).
During the nine months ended 2017 and 2016, we earned dividends of $1.9 million and $1.0 million, respectively ($0.6 million for the third quarter of 2017 and no comparative amount for the third quarter of 2016) related to our investment in RESI. In addition, during the nine months ended September 30, 2016, we incurred expenses of $3.4 million related to this investment (no comparative amounts in 2017 and the third quarter of 2016).

LIQUIDITY AND CAPITAL RESOURCES
Liquidity
Our primary source of liquidity ishas historically been cash flowsflow from operations.operations, cash proceeds from sales of businesses and cash on hand. However, due to governmental and market responses to the COVID-19 pandemic, revenue has declined significantly. The lower revenue, partially offset by cost savings initiatives, resulted in negative operating cash flow from operations for the three months ended March 31, 2023 and 2022. We believe our anticipated revenue growth from the return of the default market, on-boarding sales wins, and revenue mix together with our reduced cost structure, should help reduce negative operating cash flow. We seek to deploy cash generated in a disciplined manner. Principally, we intend to use cash to develop and grow complementary services and businesses that we believe will generate attractive margins in line with our core capabilities and strategy.strategy and fund negative operating cash flow. We also use cash for scheduled repayments of our senior secured term loanlong-term debt and seek to use cashcapital investments. In addition, from time to time to repurchase shares of our common stock and repurchase portions of our senior secured term loan. In addition, we consider and evaluate business acquisitions, that may arise from time to timedispositions, closures or other similar actions that are aligned with our strategy.
For the nine months ended September 30, 2017, we used $48.6 million to repay and repurchase portions of the senior secured term loan ($23.8 million for the third quarter of 2017) and $25.0 million to repurchase shares of our common stock ($9.5 million for the third quarter of 2017).
Senior Secured Term LoanLoans
On November 27, 2012, Altisource Solutions S.à r.l., a wholly-owned subsidiary ofIn April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a senior secured term loancredit agreement with Bank of America, N.A.Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders.lenders (the “Credit Agreement”). Under the Credit Agreement, Altisource borrowed $412 million in the form of senior secured term loans (“SSTL”). Effective February 14, 2023, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. entered into Amendment No. 2 to the Credit Agreement (as amended by Amendment No. 2, the “Amended Credit Agreement”). Altisource Portfolio Solutions S.A. and certain subsidiaries are guarantors of the term loan. We subsequently entered into three amendmentsSSTL (collectively, the “Guarantors”).
The maturity date of the SSTL under the Amended Credit Agreement is April 30, 2025. If Aggregate Paydowns are equal to or greater than $30 million, then (subject to the senior secured term loan agreement to increase the principal amountrepresentations and warranties being true and correct as of the senior secured term loansuch date and among other changes, re-establish the $200.0 million incremental term loan facility accordion, lower the interest rate, extendthere being no default or event of default being in existence as of such date) the maturity date by approximately one year and increase the maximum amount of Restricted Junior Payments (as defined in the senior secured term loan agreement; other capitalized terms, unless defined herein, are defined in the senior secured term loan agreement). The lenders of the senior secured term loan, as amended, have no obligationSSTL may be extended at the Company’s option to provide any such additional debt underApril 30, 2026. Such extension is conditioned upon the accordion provision. AsCompany’s payment of September 30, 2017, $425.1a 2% payment-in-kind extension fee.
In February 2023, the Company made payments of $20 million was outstanding undertoward the senior secured term loan agreement, as amended, compared to $479.7 million asdetermination of December 31, 2016.Aggregate Paydowns.
After giving effect to the third amendment entered into on August 1, 2014, the term loan must be repaid in equal consecutive quarterly principal installments of $1.5 million, with the balance due at maturity. All amounts outstanding under the senior secured term loan agreementSSTL will become due on the earlier of (i) December 9, 2020the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Amended Credit Agreement; other capitalized terms, unless defined herein, are defined in the Amended Credit Agreement) or as otherwise provided in the senior secured term loan agreementAmended Credit Agreement upon the occurrence of any event of default underdefault. There are no mandatory repayments of the senior secured term loan agreement. However, ifSSTL except as set forth herein until the leverage ratio exceeds 3.00April 30, 2025 maturity when the balance is due.
In addition to 1.00,the scheduled principal payments, subject to certain exceptions, the SSTL is subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as 50% of Consolidated Excess Cash Flow, as calculated in accordance with the provisions of the senior securedAmended Credit Agreement.
Altisource may incur incremental indebtedness under the Amended Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $50 million, subject to certain conditions set forth in the Amended Credit Agreement. The lenders have no obligation to provide any incremental indebtedness.
Through March 29, 2023, the SSTL’s interest rate was the Adjusted Eurodollar Rate plus 4.00%. Beginning March 30, 2023, the SSTL bears interest at rates based upon, at our option, the Secured Overnight Financing Rate (“SOFR”) or the Base Rate. SOFR term loan agreement,loans initially bear interest at a percentagerate per annum equal to SOFR plus 5.00% payable in cash plus 5.00% payable in kind (“PIK”). Base Rate loans initially bear interest at a rate per annum equal to the Base Rate plus 4.00% payable in cash plus 5.00% PIK. Base Rate term loans bear interest at a rate per annum equal to the sum of cash flows must be used to repay principal (the percentage increases if(i) the leverage ratio exceeds 3.50 to 1.00). No mandatory prepayments were required forgreater of (x) the nine months ended September 30, 2017.Base Rate and (y) 2.00% plus (ii) 4.00%. The interest rate as of September 30, 2017March 31, 2023 was 4.74%14.49%.
During The PIK component of the nine months ended September 30, 2017, we repurchased portions of our senior secured term loan with an aggregate par value of $50.1 million at a weighted average discount of 12.2%, recognizing a net gain of $5.4 millioninterest rate is subject to adjustment based on the early extinguishmentamount of debt (repurchased aggregate par value of $24.1 million at a weighted average discount of 7.5%, recognizing a net gain of $1.5 million on the early extinguishment of debt for the third quarter of 2017). During the nine months ended September 30, 2016, we repurchased portions of our senior secured term loan with an aggregate par value of $51.0 million at a weighted average discount of 13.2%, recognizing a net gain of $5.5 million on the early extinguishment of debt (no repurchasesAggregate Paydowns as set forth in the thirdtable below. Based on Aggregate Paydowns of $20 million through March 31, 2023, the PIK component of the interest rate declined to 4.50%.
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Aggregate PaydownsPIK Component of Interest Rate
Less than $20 million5.00%
$20 million+ but less than below4.50%
$30 million+ but less than below3.75%
$40 million+ but less than below3.50%
$45 million+ but less than below3.00%
$50 million+ but less than below2.50%
$55 million+ but less than below2.00%
$60 million+ but less than below1.00%
$65 million+ but less than below0.50%
$70 million+0.00%
If, as of the end of any calendar quarter, (i) the amount of 2016).unencumbered cash and cash equivalents of Altisource S.à r.l. and its direct and indirect subsidiaries on a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast as of the end of the immediately subsequent calendar quarter to be, less than $35 million, then up to 2.00% in interest otherwise payable in cash in the following quarter may be paid in kind at the Company’s election.
The debtpayment of all amounts owing by Altisource under the Amended Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions.
The Amended Credit Agreement includes covenants in the senior secured term loan agreementthat restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur additional debt, pay dividends and repurchase shares of our common stock. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances. In the event we require additional liquidity, our ability to obtain it may be limited by the seniorCredit Agreement.
As of March 31, 2023, the outstanding principal balance of the SSTL was $227.2 million.
Revolver
On June 22, 2021 Altisource S.à r.l, a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with a related party, STS Master Fund, Ltd. (“STS”) (the “Revolver”). STS is an investment fund managed by Deer Park. Deer Park owns approximately 20% of Altisource’s common stock as of March 31, 2023 and owns Altisource debt as a lender under the Amended Credit Agreement. Deer Park’s Chief Investment Officer and managing partner was a member of Altisource’s Board of Directors until his resignation on March 1, 2022. The replacement director appointed by the Board of Directors is a current employee of Deer Park.
The Revolver was amended effective February 14, 2023 (the “Amended Revolver”). Under the terms of the Amended Revolver, STS will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans at any time. The Amended Revolver provides Altisource the ability to borrow a maximum amount of $15.0 million. Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below.
The maturity date of the Amended Revolver coincides with the maturity date of the SSTL under the Amended Credit Agreement, as it may be extended. The outstanding balance on the Amended Revolver is due and payable on such maturity date.
Borrowings under the Amended Revolver bear interest of 10.00% per annum in cash and 3.00% per annum PIK and are payable quarterly on the last business day of each March, June, September and December. In connection with the Amended Revolver, Altisource is required to pay a usage fee equal to $0.75 million at the initial extension of credit pursuant to the Amended Revolver.
Altisource’s obligations under the Amended Revolver are secured term loan.by a first-priority lien on substantially all of the assets of the Company, which lien will be pari passu with liens securing the SSTL under the Amended Credit Agreement.

The Amended Revolver contains additional representations, warranties, covenants, terms and conditions customary for transactions of this type, that restrict or limit, among other things, our ability to use the proceeds of credit only for general corporate purposes.
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As of March 31, 2023, there was no outstanding debt under the Amended Revolver.
Cash Flows
The following table presents our cash flows for the ninethree months ended September 30:March 31:
(in thousands) 2017 2016 % Increase (decrease)
       
Net income adjusted for non-cash items $83,771
 $115,024
 (27)
Changes in operating assets and liabilities (36,642) (8,989) N/M
Net cash provided by operating activities 47,129
 106,035
 (56)
Net cash used in investing activities (7,558) (74,095) 90
Net cash used in financing activities (74,742) (76,319) 2
Net decrease in cash and cash equivalents (35,171) (44,379) 21
Cash and cash equivalents at the beginning of the period 149,294
 179,327
 (17)
       
Cash and cash equivalents at the end of the period $114,123
 $134,948
 (15)
N/M — not meaningful.
(in thousands)20232022% Increase (decrease)
Net cash used in operating activities$(3,058)$(16,910)82 
Net cash used in investing activities— (74)100 
Net cash used in financing activities(4,887)(1,278)(282)
Net decrease in cash, cash equivalents and restricted cash(7,945)(18,262)(56)
Cash, cash equivalents and restricted cash at the beginning of the period54,273 102,149 (47)
Cash, cash equivalents and restricted cash at the end of the period$46,328 $83,887 (45)
Cash Flows from Operating Activities
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 ninethree months ended September 30, 2017,March 31, 2023, net cash flows provided byused in operating activities were $47.1was $(3.1) million or $0.07 for every dollar of service revenue ($34.6 million, or $0.15 for every dollar of service revenue for the third quarter of 2017) compared to net cash flows generated fromused in operating activities of $106.0$(16.9) million or $0.15 for every dollar of service revenue for the ninethree months ended September 30, 2016 ($36.6March 31, 2022. During the three months ended March 31, 2023, the decrease in cash used in operating activities was driven by a $14.8 million or $0.15decrease in cash used for every dollarworking capital and a $1.1 million increase in non-cash interest expense (amortization of servicedebt discount and amortization of debt issuance and amendment costs), partially offset by a $0.8 million increase in net loss and a $0.3 million decrease in non-cash depreciation, amortization of intangibles, stock based compensation expenses and deferred income tax expenses. The increase in net loss was primarily due to higher interest expense driven by higher interest rates on our SSTL, debt amendment costs and lower gross profit in the Origination segment from lower revenue, forpartially offset by higher gross profit in the third quarter of 2016).Servicer and Real Estate segment from revenue growth, our cash cost savings measures, and lower SG&A expenses. The decrease in cash flows from operationsused for the nine months ended September 30, 2017, compared to the nine months ended September 30, 2016,changes in working capital was principallyprimarily driven by the $28.0$4.7 million net collection of taxes receivable in the first quarter of 2023 compared to a net payment forof taxes of $3.3 million in the previously accrued litigation settlement, an $11.6first quarter of 2022, a $2.0 million increasereturn of surety bonds, and no cash bonuses paid in short-term investments in real estate and lower net income, partially offset by higher collectionsthe three months ended March 31, 2023. Non-cash interest expense increased as a result of accounts receivable, primarily driven by timing of collections.
the February 2023 Amended Credit Agreement. 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. In addition, annual incentive compensation bonuses are typically paid during the first quarter of each year. Consequently, our cash flows from operations may be negatively impacted when comparing one interim period to another.
Cash Flows from Investing Activities
Cash flows from investing activities for the ninethree months ended September 30, 2017March 31, 2022 consisted of additions to premises and 2016 primarily included capital expendituresequipment and purchases and salesproceeds from the sale of availablea business. Net cash used in investing activities was $(0.1) million for sale securities. For the ninethree months ended September 30, 2017 and 2016,March 31, 2022 (no comparable amount for the three months ended March 31, 2023). In addition, we used $7.5$(0.1) million for the three months ended March 31, 2022 for additions to premises and $16.5 million, respectively, for capital expendituresequipment primarily related to investments in the development of certain software applications IT infrastructure and facility build-outs. The decrease in capital expenditures primarily related toimprovements (no comparable amount for the completion of several software development projects and facility build-outs in 2016. In addition, during the ninethree months ended September 30, 2016, we purchased 4.1 million shares of RESI common stock for $48.2 million including brokers’ commissions and acquired Granite for $9.6 million, prior to a $0.1 million purchase price adjustment (no comparative amounts in 2017)March 31, 2023).
Cash Flows from Financing Activities
Cash flows fromNet cash used in financing activities were $(4.9) million and $(1.3) million for the ninethree months ended September 30, 2017March 31, 2023 and 2016 primarily included activities associated with share repurchases, debt repayments and repurchases, stock option exercises and payments to non-controlling interests. During the nine months ended September 30, 2017 and 2016, we used $25.0 million and $34.3 million, respectively, to repurchase our common stock. In addition, during the nine months ended September 30, 2017 and 2016, we used $48.6 million and $49.2 million, respectively, to repurchase portions of our senior secured term loan and make scheduled repayments of our senior secured term loan. During the nine months ended September 30, 2017 and 2016, stock option exercises provided proceeds of $2.1 million and $8.9 million,2022, respectively. During the ninethree months ended September 30, 2017 and 2016,March 31, 2023, we distributed $2.1received proceeds from the issuance of common stock, net of issuance costs of $20.5 million and $1.6used $(20.0) million respectively, to non-controlling interests.of the proceeds for repayment of debt. Also during the ninethree months ended September 30, 2017,March 31, 2023, we paid $(4.8) million to lenders or others on behalf of the lenders related to the debt amendment. During the three months ended March 31, 2023 and 2022, we made payments of $1.1$(0.5) million and $(1.0) million, respectively, to satisfy employee tax withholding obligations on the issuance of restricted share units 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 three months ended March 31, 2023 and 2022, we distributed $(0.1) million and $(0.3) million, respectively, to non-controlling interests.

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Liquidity Requirements after September 30, 2017Future Uses of Cash
On September 12, 2014, we acquired certain assets and assumed certain liabilities of Mortgage Builder Software, Inc. (“Mortgage Builder”). The Mortgage Builder purchase agreement provides for the payment of up to $7.0 million in potential additional consideration based on Adjusted Revenue (as defined in the purchase agreement). As of September 30, 2017, we have recorded $0.4 million of potential additional consideration relatedOur significant future liquidity obligations primarily pertain to the Mortgage Builder acquisition. The amount ultimately paid will depend on Mortgage Builder’s Adjusted Revenue in the lastmaturity of the three consecutive 12-month periods following acquisition, which concludes during the fourth quarter of 2017.
On July 17, 2015, we acquired CastleLine Holdings, LLC and its subsidiaries. A portion of the purchase consideration totaling $10.5 million is payable to the sellers over four years from the acquisition date, including $3.8 million to be paid to certain of the sellers that is contingent on future employment. As of September 30, 2017, we have paid $8.0 million of the up to $10.5 million that is payable over four years from the acquisition date and $1.3 million of the $3.8 million purchase consideration that is contingent on future employment.
During the next 12 months, we expect to distribute approximately $2.5 million to the Lenders One members representing non-controlling interest, make mandatory repayments of $5.9 million of the senior secured term loan and pay $20.0 million ofAmended Credit Agreement, interest expense under the senior secured term loan agreement.Amended Credit Agreement (see Liquidity section above), distributions to Lenders One members and operating lease payments on certain of our premises and equipment.
Significant future uses of cash include the following:
Payments Due by Period
(in thousands)Total20232024-20252026-2027
Senior secured term loans (1)
$249,409 $— $249,409 $— 
Interest expense payments (2)
50,017 17,537 32,480 — 
Lease payments6,041 2,092 3,311 638 
Total$305,467 $19,629 $285,200 $638 

(1)    The outstanding balance of our SSTL as of March 31, 2023 is $227.2 million and is due on April 30, 2025. The maturity date of the SSTL may be extended to April 30, 2026 at the Company’s option if Aggregate Paydowns made prior to February 14, 2024 total $30 million or more. In the first quarter of 2023, the Company made $20 million of payments toward the determination of Aggregate Paydowns. The table herein reflects a maturity of April 2025 as the Company has not made Aggregate Paydowns of $30 million or more at the time of this filing. The increase in outstanding balance is from the PIK component of our interest expense and is assumed to be paid in kind.
(2)    Estimated future interest payments based on the SOFR interest rate as of March 31, 2023 and the April 30, 2025 maturity date. Based on the April 30, 2025 maturity date, no interest expense has been included beyond April 30, 2025.
We believe that ouranticipate to fund future liquidity requirements with a combination of existing cash balances, cash anticipated to be generated by operating activities and, cash equivalent balancesas needed, proceeds from the Amended Revolver. For further information, see Note 11 and our anticipated cash flows from operations will be sufficientNote 21 to meet our liquidity needs, including to fund capital expendituresthe condensed consolidated financial statements.
Off-Balance Sheet Arrangements
Our off-balance sheet arrangements consist of escrow arrangements.
We hold customers’ assets in escrow accounts at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow accounts for limited periods of time and required debtare not included in the condensed consolidated balance sheets. Amounts held in escrow accounts were $15.8 million and interest payments, for the next 12 months.$13.2 million as of March 31, 2023 and December 31, 2022, respectively.
Contractual Obligations, Commitmentsand Contingencies
For the ninethree months ended September 30, 2017,March 31, 2023, there were no significant changes to our contractual obligations from those identified in our Form 10-K for the fiscal year ended December 31, 2016,2022 and this Form 10-Q, other than those that occur in the normal course of business. See Note 2021 to the condensed consolidated financial statements.
CRITICAL ACCOUNTING POLICIES, ESTIMATES AND RECENT ACCOUNTING PRONOUNCEMENTPRONOUNCEMENTS
We prepare our interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. In applying many of these accounting principles, we need to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses in our condensed consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates and judgments, however, are often subjective. Actual results may be negatively affected based on changing circumstances. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known.
Our critical accounting policies are described in the MD&A section of our Form 10-K for the year ended December 31, 20162022 filed with the SEC on February 16, 2017. ThoseMarch 30, 2023. There have been no material changes to our critical accounting policies have not changed during the ninethree months ended September 30, 2017.March 31, 2023.
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Recently Adopted and Future Adoption of New Accounting Pronouncements
See Note 1 to the condensed consolidated financial statements for a discussion of recently issued accounting pronouncements, including pronouncements that were adopted in the future adoption of new accounting pronouncements.current period.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Market Risk
Our financial market risk consists primarily of interest rate and foreign currency exchange rate risk.
Interest Rate Risk
AsUnder the terms of September 30, 2017,the Amended Credit Agreement, the interest rate charged on the senior secured term loan was 4.74%. The interest rateSSTL is calculated based on the Adjusted Eurodollar RateSOFR (as defined in the senior secured term loan agreement)Amended Credit Agreement) with a minimum floor of 1.00% plus 3.50%.5.00% paid in cash plus 5.00% PIK. Based on the first quarter 2023 par paydown of $20 million, the PIK component was reduced to 4.50% and may be further reduced on a prospective basis based on the Aggregate Paydowns made prior to February 14, 2024.
Based on the principal amount outstanding at September 30, 2017,and SOFR as of March 31, 2023, a one percentage point increase in SOFR above the Eurodollar Rateminimum floor would increase our annual interest expense by approximately $4.3 million, based on the September 30, 2017 Adjusted Eurodollar Rate.$2.3 million. There would be a $1.0$2.3 million decrease in our annual interest expense if there was a one percentage point decrease in the Eurodollar Rate.

SOFR.
Currency Exchange Risk
We are exposed to currency risk from potential changes in currency values of our non-United States dollar denominated expenses, assets, liabilities and cash flows. Our most significant currency exposure relates to the Indian rupee. Based on expenses incurred in Indian rupees duringfor the thirdfirst quarter of 2017,2023, a one percentage point increase or decrease in value of the Indian rupee in relation to the United States dollar would increase or decrease our annual expenses by approximately $1.1$0.1 million.
Item 4. Controls and Procedures
a)Evaluation of Disclosure Controls and Procedures
a)    Evaluation of Disclosure Controls and Procedures
Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is accumulated and communicated to our management, including the Chairman and Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of September 30, 2017,March 31, 2023, an evaluation was conducted under the supervision and with the participation of our management, including our Chairman and Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on this evaluation, such officers have concluded that our disclosure controls and procedures were effective as of September 30, 2017.March 31, 2023.
b)Internal Control over Financial Reporting
b)    Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the quarter ended September 30, 2017,March 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION
Item 1. Legal Proceedings
We record a liability for contingencies if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range.
Litigation
We are currently involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows.
Regulatory Matters
Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries.
As previously disclosed, Altisource received a Notice and Opportunity to Respond and Advise (“NORA”) letter on November 10, 2016 from the CFPB indicating that the CFPB is considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen. The NORA letter provides the recipient an opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced. On December 5, 2016, we provided a written response to the NORA letter setting forth the legal, policy and factual reasons why we believe an enforcement action is not warranted. We are committed to resolving any potential concerns of the CFPB. If the CFPB were to bring an enforcement action against us, the resolution of such action could have a material adverse impact on our business, reputation, financial condition and results of operations. However, we believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential CFPB enforcement action.
Item 1A. Risk Factors
As of the date of this filing, there have been no material changes in our risk factors from those disclosed in Part I, Item 1A, of our Form 10-K for the year ended December 31, 20162022 filed with the SEC on February 16, 2017, except as follows:March 30, 2023.
We are negotiating a Services Agreement with NRZ to provide certain-fee based services on the Ocwen Transferred Portfolio. If we are not able to reach an agreement with respect to the terms of the Services Agreement, our business and results of operations could be affected.
We executed a non-binding LOI, as amended, with NRZ to enter into a Services Agreement, setting forth the terms pursuant to which Altisource Solutions S.à r.l. would be the exclusive service provider of certain fee-based services with respect to the Ocwen Transferred Portfolio through August 2025. If we are not able to reach an agreement with respect to the terms of the Services Agreement, and our role as a service provider with respect to the Ocwen Transferred Portfolio is replaced or reduced, our revenue could be lower and our results of operations could be materially adversely affected.
We have entered into a Brokerage Agreement with NRZ’s licensed brokerage subsidiary with respect to the Ocwen Transferred Portfolio. If the Brokerage Agreement is terminated, our business and results of operations could be affected.
We have entered into a Brokerage Agreement with NRZ’s licensed brokerage subsidiary, and in a related letter agreement with NRZ, to provide real estate brokerage services on the Ocwen Transferred Portfolio and with respect to approximately $6 billion of non-Ocwen serviced non-GSE portfolios. The Brokerage Agreement and the letter agreement are effective through August 31, 2025 but may be terminated early upon certain termination events (including by us if we are not able to enter into a Services Agreement with NRZ), some of which are not subject to a cure period. If any one of these termination events occurs and the Brokerage Agreement is terminated, this could have a material adverse impact on our future revenueand results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table presents information related to our repurchasesThere were no purchases of our equity securitiesshares of common stock during the three months ended September 30, 2017:March 31, 2023. On May 15, 2018, our shareholders approved the renewal and replacement of the share repurchase program previously approved by the shareholders on May 17, 2017. Under the program, we are authorized to purchase up to 4.3 million shares of our common stock in the open market, subject to certain parameters, for a period of five years from the date of approval. As of March 31, 2023, the maximum number of shares that may be purchased under the repurchase program is 2.4 million shares of the Company’s common stock. In addition to the share repurchase program, during the three months ended March 31, 2023, 83,250 common shares were withheld from employees to satisfy tax withholding obligations that arose from the vesting of restricted shares.
On February 14, 2023, the lenders under the Amended Credit Agreement received warrants to purchase 3,223,851 shares of Altisource common stock (the “Warrant Shares”). The exercise price per share of common stock under each Warrant is equal to $0.01. The number of Warrant Shares is subject to reduction based on the amount of par paydowns on the SSTL in the aggregate using proceeds from issuances of equity interests or from junior indebtedness made prior to February 14, 2024 (“Aggregate Paydowns”) as set forth in the table below.
Period Total number of shares purchased Weighted average price paid per share 
Total number of shares purchased as part of publicly announced plans or programs(1)
 
Maximum number of shares that may yet be purchased under the plans or programs(1)
         
Common stock:        
July 1 – 31, 2017 —
 $—
 —
 4,219,665
August 1 – 31, 2017 22,200
 22.46
 22,200
 4,197,465
September 1 – 30, 2017 250,920
 23.57
 250,920
 3,946,545
         
  273,120
 $23.48
 273,120
 3,946,545
(1)
Aggregate Paydowns		On May 17, 2017, our shareholders approved the renewal of the share repurchase program originally approved by the shareholders on May 18, 2016, which replaced the previous share repurchase program and authorizes us to purchase up to 4.6Warrant Shares
Less than $20 million shares of our common stock in the open market, subject to certain parameters.3,223,851
$20 million+ but less than below2,578,743
$30 million+1,612,705


During the three months ended March 31, 2023, the Company made payments toward the determination of Aggregate Paydowns of $20 million. As a result, the number of Warrant Shares as of March 31, 2023 is 2,578,743.
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Item 6. Exhibits

3.1
Exhibit Number
Amended and Restated Articles of Incorporation of Altisource Portfolio Solutions S.A. (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q filed on August 9, 2017)
Description

†
Form of Non-Qualified Stock Option Award Agreement (2017 Performance-Based Stock Options) (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on April 13, 2017)
10.2

†
Form of Non-Qualified Stock Option Award Agreement (Service Revenue Stock Options) (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on April 13, 2017)
10.3

†
Form of Restricted Stock Award Agreement (2017 Performance-Based Restricted Shares) (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K filed on April 13, 2017)
10.4

†
Form of Restricted Stock Award Agreement (Service-Based Restricted Shares) (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K filed on April 13, 2017)
10.5

*†
Employment Agreement dated August 3, 2017 between Altisource Solutions S.à r.l. and Indroneel Chatterjee
10.6

*†
Non-Qualified Stock Option Award Agreement between the Company and Indroneel Chatterjee dated as of October 5, 2017
10.7

*†
Restricted Stock Award Agreement between the Company and Indroneel Chatterjee dated as of October 5, 2017
10.8

**
Cooperative Brokerage Agreement, dated as of August 28, 2017, between REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp.
10.9

**
Letter Agreement, dated as of August 28, 2017, between New Residential Investment Corp., New Residential Mortgage LLC, REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and Altisource Solutions S.à r.l.
31.1

*
Section 302 Certification of the Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a)

*
Section 302 Certification of the Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a)

*
Certification by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*

*Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2017March 31, 2023 is formatted in Inline XBRL interactive data files: (i) Condensed Consolidated Balance Sheets at September 30, 2017as of March 31, 2023 and December 31, 2016;2022; (ii) Condensed Consolidated Statements of Operations and Comprehensive IncomeLoss for the three and nine months ended September 30, 2017March 31, 2023 and 2016;2022; (iii) Condensed Consolidated Statements of Equity for the ninethree months ended September 30, 2017March 31, 2023 and 2016;2022; (iv) Condensed Consolidated Statements of Cash Flows for the ninethree months ended September 30, 2017March 31, 2023 and 2016;2022; and (v) Notes to Condensed Consolidated Financial Statements.
†104 *
Denotes a management contract or compensatory arrangementCover Page Interactive Data File formatted as Inline XBRL and contained in Exhibit 101
*
Filed herewith
______________________________________
**
Filed herewith. Portions of this exhibit have been redacted pursuant to a request for confidential treatment. The non-public information has been filed separately with the Securities and Exchange Commission.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
(Registrant)
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
(Registrant)
Date:October 26, 2017By:/s/ William B. Shepro
William B. Shepro
Director and Chief Executive Officer
Date:April 27, 2023(Principal Executive Officer)
By:
Date:October 26, 2017By:/s/ Michelle D. Esterman
Michelle D. Esterman
Executive Vice President, FinanceChief Financial Officer
(On behalf of the Registrant and as its Principal Financial Officer and Principal Accounting Officer)






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