Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-34354 | |
Entity Registrant Name | ALTISOURCE PORTFOLIO SOLUTIONS S.A. | |
Entity Incorporation, State or Country Code | N4 | |
Entity Tax Identification Number | 98-0554932 | |
Entity Address, Address Line One | 33, Boulevard Prince Henri | |
Entity Address, Postal Zip Code | L-1724 | |
Entity Address, City or Town | Luxembourg | |
Entity Address, Country | LU | |
City Area Code | 352 | |
Local Phone Number | 2060 2055 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | ASPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,109,831 | |
Entity Central Index Key | 0001462418 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 29,702 | $ 32,522 |
Accounts receivable, net of allowance for doubtful accounts of | 13,190 | 11,682 |
Prepaid expenses and other current assets | 8,309 | 11,336 |
Total current assets | 51,201 | 55,540 |
Premises and equipment, net | 1,124 | 1,709 |
Right-of-use assets under operating leases | 2,612 | 3,379 |
Goodwill | 55,960 | 55,960 |
Intangible assets, net | 24,008 | 26,548 |
Deferred tax assets, net | 4,983 | 4,992 |
Other assets | 6,669 | 6,730 |
Total assets | 146,557 | 154,858 |
Current liabilities: | ||
Accounts payable and accrued expenses | 30,044 | 30,088 |
Current portion of long-term debt | 223,009 | 0 |
Deferred revenue | $ 3,634 | $ 3,195 |
Other current liabilities | Other current liabilities | Other current liabilities |
Other current liabilities | $ 2,245 | $ 2,477 |
Total current liabilities | 258,932 | 35,760 |
Long-term debt | 0 | 215,615 |
Deferred tax liabilities, net | $ 9,047 | $ 9,028 |
Other non-current liabilities | Other non-current liabilities | Other non-current liabilities |
Other non-current liabilities | $ 18,778 | $ 19,510 |
Commitments, contingencies and regulatory matters (Note 21) | ||
Deficit: | ||
Common stock ($1.00 par value; 100,000 shares authorized, 29,963 issued and 27,110 outstanding as of June 30, 2024; 29,963 issued and 26,496 outstanding as of December 31, 2023) | 29,963 | 29,963 |
Additional paid-in capital | 179,937 | 177,278 |
Accumulated deficit | (234,351) | (180,162) |
Treasury stock, at cost (2,853 shares as of June 30, 2024 and 3,467 shares as of December 31, 2023) | (116,389) | (152,749) |
Altisource deficit | (140,840) | (125,670) |
Non-controlling interests | 640 | 615 |
Total deficit | (140,200) | (125,055) |
Total liabilities and deficit | $ 146,557 | $ 154,858 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,421 | $ 3,123 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 29,963 | 29,963 |
Common stock, shares outstanding (in shares) | 27,110 | 26,496 |
Treasury shares (in shares) | 2,853 | 3,467 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 |
Cost of revenue | 26,404 | 29,703 | 53,569 | 60,660 |
Gross profit | 12,717 | 5,532 | 25,021 | 14,036 |
Selling, general and administrative expenses | 10,634 | 12,341 | 23,486 | 24,435 |
Income (loss) from operations | 2,083 | (6,809) | 1,535 | (10,399) |
Other income (expense), net: | ||||
Interest expense | (9,788) | (9,904) | (19,317) | (16,664) |
Change in fair value of warrant liability | 0 | (1,774) | 0 | (1,080) |
Debt amendment costs | 0 | (101) | 0 | (3,343) |
Other income (expense), net | 139 | 390 | 1,781 | 1,950 |
Total other income (expense), net | (9,649) | (11,389) | (17,536) | (19,137) |
Loss before income taxes and non-controlling interests | (7,566) | (18,198) | (16,001) | (29,536) |
Income tax provision | (706) | (639) | (1,428) | (2,168) |
Net loss | (8,272) | (18,837) | (17,429) | (31,704) |
Net income attributable to non-controlling interests | (35) | (13) | (76) | (93) |
Net loss attributable to Altisource | $ (8,307) | $ (18,850) | $ (17,505) | $ (31,797) |
Loss per share: | ||||
Basic (in usd per share) | $ (0.29) | $ (0.90) | $ (0.62) | $ (1.62) |
Diluted (in usd per share) | $ (0.29) | $ (0.90) | $ (0.62) | $ (1.62) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Diluted (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Comprehensive loss: | ||||
Comprehensive loss, net of tax | $ (8,272) | $ (18,837) | $ (17,429) | $ (31,704) |
Comprehensive income attributable to non-controlling interests | (35) | (13) | (76) | (93) |
Comprehensive loss attributable to Altisource | $ (8,307) | $ (18,850) | $ (17,505) | $ (31,797) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFECIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Treasury stock, at cost | Non-controlling interests |
Balance (in shares) at Dec. 31, 2022 | 25,413 | |||||
Balance at Dec. 31, 2022 | $ (118,874) | $ 25,413 | $ 149,348 | $ 118,948 | $ (413,358) | $ 775 |
Increase (Decrease) in Equity | ||||||
Net loss | (12,867) | (12,947) | 80 | |||
Distributions to non-controlling interest holders | (102) | (102) | ||||
Share-based compensation expense | 1,445 | 1,445 | ||||
Issuance of restricted share units and restricted shares | 0 | (6,058) | 6,058 | |||
Issuance of common stock, net of issuance costs (in shares) | 4,550 | |||||
Issuance of common stock, net of issuance costs | 20,461 | $ 4,550 | 15,911 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (460) | (3,700) | 3,240 | |||
Balance (in shares) at Mar. 31, 2023 | 29,963 | |||||
Balance at Mar. 31, 2023 | (110,397) | $ 29,963 | 166,704 | 96,243 | (404,060) | 753 |
Balance (in shares) at Dec. 31, 2022 | 25,413 | |||||
Balance at Dec. 31, 2022 | (118,874) | $ 25,413 | 149,348 | 118,948 | (413,358) | 775 |
Increase (Decrease) in Equity | ||||||
Net loss | (31,704) | |||||
Balance (in shares) at Jun. 30, 2023 | 29,963 | |||||
Balance at Jun. 30, 2023 | (128,095) | $ 29,963 | 167,946 | 75,104 | (401,774) | 666 |
Balance (in shares) at Mar. 31, 2023 | 29,963 | |||||
Balance at Mar. 31, 2023 | (110,397) | $ 29,963 | 166,704 | 96,243 | (404,060) | 753 |
Increase (Decrease) in Equity | ||||||
Net loss | (18,837) | (18,850) | 13 | |||
Distributions to non-controlling interest holders | (100) | (100) | ||||
Share-based compensation expense | 1,242 | 1,242 | ||||
Issuance of restricted share units and restricted shares | 0 | (2,259) | 2,259 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (3) | (30) | 27 | |||
Balance (in shares) at Jun. 30, 2023 | 29,963 | |||||
Balance at Jun. 30, 2023 | (128,095) | $ 29,963 | 167,946 | 75,104 | (401,774) | 666 |
Balance (in shares) at Dec. 31, 2023 | 29,963 | |||||
Balance at Dec. 31, 2023 | (125,055) | $ 29,963 | 177,278 | (180,162) | (152,749) | 615 |
Increase (Decrease) in Equity | ||||||
Net loss | (9,157) | (9,198) | 41 | |||
Distributions to non-controlling interest holders | (19) | (19) | ||||
Share-based compensation expense | 2,213 | 2,213 | ||||
Exercise of warrants, net of costs | (90) | (398) | (3,722) | 4,030 | ||
Issuance of restricted share units and restricted shares | 0 | (15,860) | 15,860 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (590) | (9,575) | 8,985 | |||
Balance (in shares) at Mar. 31, 2024 | 29,963 | |||||
Balance at Mar. 31, 2024 | (132,698) | $ 29,963 | 179,093 | (218,517) | (123,874) | 637 |
Balance (in shares) at Dec. 31, 2023 | 29,963 | |||||
Balance at Dec. 31, 2023 | (125,055) | $ 29,963 | 177,278 | (180,162) | (152,749) | 615 |
Increase (Decrease) in Equity | ||||||
Net loss | (17,429) | |||||
Balance (in shares) at Jun. 30, 2024 | 29,963 | |||||
Balance at Jun. 30, 2024 | (140,200) | $ 29,963 | 179,937 | (234,351) | (116,389) | 640 |
Balance (in shares) at Mar. 31, 2024 | 29,963 | |||||
Balance at Mar. 31, 2024 | (132,698) | $ 29,963 | 179,093 | (218,517) | (123,874) | 637 |
Increase (Decrease) in Equity | ||||||
Net loss | (8,272) | (8,307) | 35 | |||
Distributions to non-controlling interest holders | (32) | (32) | ||||
Share-based compensation expense | 844 | 844 | ||||
Issuance of restricted share units and restricted shares | 0 | (6,427) | 6,427 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (42) | (1,100) | 1,058 | |||
Balance (in shares) at Jun. 30, 2024 | 29,963 | |||||
Balance at Jun. 30, 2024 | $ (140,200) | $ 29,963 | $ 179,937 | $ (234,351) | $ (116,389) | $ 640 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||||||
Net loss | $ (8,272) | $ (9,157) | $ (18,837) | $ (12,867) | $ (17,429) | $ (31,704) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 300 | 700 | 572 | 1,353 | |||
Amortization of right-of-use assets under operating leases | 400 | 500 | 811 | 930 | |||
Amortization of intangible assets | 1,270 | 1,280 | 2,540 | 2,560 | |||
PIK accrual | 4,269 | 2,556 | |||||
Share-based compensation expense | 800 | 1,200 | 3,057 | 2,687 | |||
Bad debt expense | (8) | 482 | 550 | 522 | |||
Amortization of debt discount | 1,901 | 1,828 | |||||
Amortization of debt issuance costs | 1,224 | 1,249 | |||||
Deferred income taxes | 18 | (203) | |||||
Loss on disposal of fixed assets | 13 | 27 | |||||
Change in fair value of warrant liability | 0 | 1,774 | 0 | 1,080 | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (2,058) | (1,214) | |||||
Prepaid expenses and other current assets | 3,027 | 12,504 | |||||
Other assets | 61 | (2,045) | |||||
Accounts payable and accrued expenses | (44) | (1,187) | |||||
Current and non-current operating lease liabilities | (838) | (960) | |||||
Other current and non-current liabilities | 269 | (923) | |||||
Net cash used in operating activities | (2,057) | (10,940) | |||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock, net of issuance costs | 0 | 20,461 | |||||
Exercise of Warrants, net of costs | (90) | 0 | |||||
Debt issuance and amendment costs | 0 | (4,886) | |||||
Repayments of long-term debt | 0 | (20,000) | |||||
Distributions to non-controlling interests | (51) | (202) | |||||
Payments of tax withholding on issuance of restricted share units and restricted shares | (632) | (463) | |||||
Net cash used in financing activities | (773) | (5,090) | |||||
Net decrease in cash, cash equivalents and restricted cash | (2,830) | (16,030) | |||||
Cash, cash equivalents and restricted cash at the beginning of the period | $ 35,416 | $ 54,273 | 35,416 | 54,273 | $ 54,273 | ||
Cash, cash equivalents and restricted cash at the end of the period | 32,586 | 38,243 | 32,586 | 38,243 | 35,416 | ||
Supplemental cash flow information: | |||||||
Interest paid | 11,870 | 11,022 | |||||
Income taxes paid (refunded), net | 1,121 | (4,509) | |||||
Acquisition of right-of-use assets with operating lease liabilities | 44 | 298 | |||||
Non-cash investing and financing activities: | |||||||
Warrants issued in connection with Amended Credit Agreement | 0 | 8,096 | |||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||||||
Cash and cash equivalents | 29,702 | 35,041 | 29,702 | 35,041 | 32,522 | ||
Restricted cash | 2,884 | 3,202 | 2,884 | 3,202 | 2,894 | ||
Total cash, cash equivalents and restricted cash reported in the statements of cash flows | $ 32,586 | $ 38,243 | $ 32,586 | $ 38,243 | $ 35,416 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | 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 markets we serve. We 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 periods. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. 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 June 30, 2024, Lenders One had total assets of $0.4 million and total liabilities of $0.5 million. As of December 31, 2023, Lenders One had total assets of $0.4 million and total liabilities of $0.6 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, 2023, as filed with the SEC on March 7, 2024. 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 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. Future Adoption of New Accounting Pronouncement In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This standard updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. This standard will be effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This standard amends the Codification to enhance the transparency and decision usefulness of income tax disclosures, to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This standard will be effective for annual periods beginning after December 15, 2024. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
CUSTOMER CONCENTRATION
CUSTOMER CONCENTRATION | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER CONCENTRATION | CUSTOMER CONCENTRATION Onity Onity Group Inc. (together with its subsidiaries, “Onity”) (formerly Ocwen Financial Corporation, or “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 and six months ended June 30, 2024, Onity was our largest customer, accounting for 44% of our total revenue. Onity purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Onity Services Agreements”) with terms extending through August 2030. Certain of the Onity Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. Revenue from Onity primarily consists of revenue earned from the loan portfolios serviced and subserviced by Onity when Onity engages us as the service provider, and revenue earned directly from Onity, pursuant to the Onity Services Agreements. For the six months ended June 30, 2024 and 2023, we recognized revenue from Onity of $34.9 million and $31.6 million, respectively ($17.2 million and $14.0 million for the second quarter of 2024 and 2023, respectively). Revenue from Onity as a percentage of segment and consolidated revenue was as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Servicer and Real Estate 55 % 52 % 56 % 54 % Origination — % — % — % — % Corporate and Others — % — % — % — % Consolidated revenue 44 % 40 % 44 % 42 % We earn additional revenue related to the portfolios serviced and subserviced by Onity when a party other than Onity or the MSR owner selects Altisource as the service provider. For the six months ended June 30, 2024 and 2023, we recognized $5.2 million and $5.0 million, respectively ($2.4 million and $2.1 million for the second quarter of 2024 and 2023, respectively), of such revenue. These amounts are not included in deriving revenue from Onity and revenue from Onity as a percentage of revenue discussed above. As of June 30, 2024, accounts receivable from Onity totaled $4.4 million, $3.5 million of which was billed and $0.9 million of which was unbilled. As of December 31, 2023, accounts receivable from Onity totaled $3.4 million, $2.2 million of which was billed and $1.2 million of which was unbilled. Rithm Rithm Capital Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “Rithm”) is an asset manager focused on the real estate and financial services industries. Onity has disclosed that Rithm is one of its largest servicing clients. As of March 31, 2024, Onity reported that approximately 15% of loans serviced and subserviced by Onity (measured in unpaid principal balance (“UPB”)) and approximately 66% of all delinquent loans that Onity 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 subservicer, 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 terms extending through August 2025. For the six months ended June 30, 2024 and 2023, we recognized revenue from Rithm of $1.3 million and $1.6 million, respectively ($0.6 million and $0.8 million for the second quarter of 2024 and 2023, respectively), under the Brokerage Agreement. For the six months ended June 30, 2024 and 2023, we recognized additional revenue of $6.1 million and $6.8 million, respectively ($3.2 million and $3.5 million for the second quarter of 2024 and 2023, respectively), relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: (in thousands) June 30, December 31, Billed $ 10,146 $ 9,826 Unbilled 6,465 4,979 16,611 14,805 Less: Allowance for credit losses (3,421) (3,123) Total $ 13,190 $ 11,682 Unbilled accounts receivable consist primarily of certain real estate asset management services, REO and foreclosure sales, title and closing services, for which we generally recognize revenue when the service is provided but collect upon closing of the sale, as well as foreclosure trustee services and the recently launched property renovation 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 accounts receivable that are earned during a month and billed in the following month. We are exposed to credit losses through our sales of products 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. Changes in the allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: Three months ended June 30, 2024 $ 3,555 $ (8) $ (126) $ 3,421 Three months ended June 30, 2023 4,205 482 (373) 4,314 Six months ended June 30, 2024 $ 3,123 $ 550 $ (252) $ 3,421 Six months ended June 30, 2023 4,363 522 (571) 4,314 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: (in thousands) June 30, December 31, Indemnity escrow receivable from Pointillist sale $ 3,126 $ 3,201 Prepaid expenses 2,743 3,722 Maintenance agreements, current portion 1,289 1,327 Income taxes receivable 689 325 Restricted cash 23 23 Other current assets 439 2,738 Total $ 8,309 $ 11,336 |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | PREMISES AND EQUIPMENT, NET Premises and equipment, net consists of the following: (in thousands) June 30, December 31, Computer hardware and software $ 46,098 $ 46,519 Leasehold improvements 709 1,011 Furniture and fixtures 72 102 Office equipment and other 17 17 46,896 47,649 Less: Accumulated depreciation and amortization (45,772) (45,940) Total $ 1,124 $ 1,709 Depreciation and amortization expense amounted to $0.6 million and $1.4 million for the six months ended June 30, 2024 and 2023, respectively ($0.3 million and $0.7 million for the second quarter of 2024 and 2023, 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. Premises and equipment, net consist of the following by country: (in thousands) June 30, December 31, Luxembourg $ 788 $ 1,131 India 296 492 United States 40 64 Uruguay — 22 Total $ 1,124 $ 1,709 |
RIGHT-OF-USE ASSETS UNDER OPERA
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET Right-of-use assets under operating leases, net consists of the following: (in thousands) June 30, December 31, Right-of-use assets under operating leases $ 7,286 $ 7,242 Less: Accumulated amortization (4,674) (3,863) Total $ 2,612 $ 3,379 Amortization of operating leases was $0.8 million and $0.9 million for the six months ended June 30, 2024 and 2023, respectively ($0.4 million and $0.5 million for the second quarter of 2024 and 2023, 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. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following is a summary of goodwill by segment: (in thousands) Servicer and Real Estate Origination Corporate and Others Total Balance as of June 30, 2024 and December 31, 2023 $ 30,681 $ 25,279 $ — $ 55,960 Intangible Assets, net Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) June 30, December 31, June 30, December 31, June 30, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 213,912 $ 214,307 $ (201,741) $ (200,656) $ 12,171 $ 13,651 Operating agreement 20 35,000 35,000 (25,229) (24,354) 9,771 10,646 Trademarks and trade names 16 9,709 9,709 (7,643) (7,458) 2,066 2,251 Total $ 258,621 $ 259,016 $ (234,613) $ (232,468) $ 24,008 $ 26,548 Amortization expense for definite lived intangible assets was $2.5 million and $2.6 million for the six months ended June 30, 2024 and 2023, respectively ($1.3 million and $1.3 million for the second quarter of 2024 and 2023, respectively). Forecasted annual definite lived intangible asset amortization expense for 2024 through 2028 is $5.1 million, $5.1 million, $4.9 million, $4.7 million and $4.4 million, respectively . |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following: (in thousands) June 30, December 31, Restricted cash $ 2,861 $ 2,871 Surety bond collateral 2,000 2,000 Security deposits 396 397 Other 1,412 1,462 Total $ 6,669 $ 6,730 |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following: (in thousands) June 30, December 31, Accounts payable $ 14,280 $ 15,275 Accrued expenses - general 8,885 8,637 Accrued salaries and benefits 5,113 5,048 Income taxes payable 1,766 1,128 Total $ 30,044 $ 30,088 Other current liabilities consist of the following: (in thousands) June 30, December 31, Operating lease liabilities $ 1,511 $ 1,570 Other 734 907 Total $ 2,245 $ 2,477 Revolving Loan Agreement In connection with the Company’s residential real estate renovation services business, on June 3, 2024 Altisource Solutions, Inc., an indirect subsidiary of Altisource Portfolio Solutions S.A, entered into a revolving loan agreement with a related party, Altisource Asset Management Corporation (“AAMC”) (the “Revolving Loan Agreement”). Under the terms of the Revolving Loan Agreement, AAMC will make loans to Altisource from time to time, as may be requested by Altisource. The Revolving Loan Agreement provides Altisource the ability to borrow an initial aggregate amount of up to $1.0 million, with the potential for this to be increased up to $3.0 million at the option of AAMC. Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below. The maturity date of the Revolving Loan Agreement is June 3, 2025 and may be automatically extended for one year on each anniversary of the maturity date. During any extension period, AAMC may terminate the Revolving Loan Agreement upon 150 days prior written notice and the loan will mature upon such termination. The outstanding balance on the Revolving Loan Agreement is due and payable on such maturity date. Borrowings under the Revolving Loan Agreement bear interest of 12.00% per annum in cash and are payable monthly in arrears on the first business day of each calendar month. Altisource will pay AAMC a monthly unused commitment fee in an amount equal to 0.25% per annum of the average amount of the unused available credit under the Revolving Loan Agreement. Altisource’s obligation under the Revolving Loan Agreement is secured by certain receivables related to the Company’s residential real estate renovation services business. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following: (in thousands) June 30, December 31, Senior secured term loans $ 228,354 $ 224,085 Less: Debt issuance and amendment costs, net (2,094) (3,318) Less: Unamortized discount, net (3,251) (5,152) Net long-term debt 223,009 215,615 Less: Current portion of long-term debt (223,009) — Total long-term debt, less current portion $ — $ 215,615 Senior Secured Term Loans In April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain 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 its subsidiaries, subject to the applicable exclusions in the Amended Credit Agreement, are guarantors on the SSTL (collectively, the “Guarantors”). Effective June 1, 2023, the administrative agent and collateral agent of the Amended Credit Agreement changed to Wilmington Trust, N.A. The maturity date of the SSTL under the Amended Credit Agreement is April 30, 2025. Since the aggregate amount of par paydowns on the SSTL made prior to February 14, 2024 using proceeds from issuances of equity interests or from junior indebtedness (“Aggregate Paydowns”) was equal to or greater than $30 million, the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026. Such extension is conditioned upon the Company’s payment of a 2% payment-in-kind extension fee on or before April 30, 2025 and subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date. All amounts outstanding under the SSTL will become due on the earlier of (i) the 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 Amended Credit Agreement upon the occurrence of any event of default. There are no mandatory repayments of the SSTL, except as set forth herein, until the April 30, 2025 maturity when the balance is due. If the maturity date is extended to April 30, 2026, the Company is required to make mandatory repayments of $5.2 million in the first quarter of 2026 with the remaining balance due at the April 2026 maturity. In addition to 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 Amended 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, as defined in the Amended Credit Agreement. SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 5.00% payable in cash plus a payable in kind (“PIK”) component. Base Rate-based term loans bear interest at a rate per annum equal to the Base Rate plus 4.00% payable in cash plus a PIK component. The PIK component of the interest rate was subject to adjustment based on the amount of Aggregate Paydowns. Since Aggregate Paydowns were $20 million in the first quarter of 2023 and an additional $10 million in the third quarter of 2023, the PIK component was 4.50% for the period March 30, 2023 through June 30, 2023 and 3.75% for periods thereafter. The interest rate as of June 30, 2024, including the PIK component, was 14.16%. 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 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 that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur indebtedness; incur liens on our assets; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; make investments; dispose of 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 year; and engage in mergers and consolidations. The Amended 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 Amended 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 $5 million when due, (v) default on any other debt that equals or exceeds $5 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 $10 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events, (x) the failure of certain Loan Documents to be in full force and 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 Amended Credit 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 shares of Altisource common stock. The number of Warrant Shares is subject to reduction based on the amount of Aggregate Paydowns (see Note 11 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 $4.9 million to the lenders and to third parties on behalf of the lenders. The $4.9 million payment was recorded as an increase in debt issuance and amendment costs. In connection with Amendment No. 2, the Company paid $3.4 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 16% and 20% of Altisource’s common stock as of June 30, 2024 and 2023, respectively, and $41.3 million and $41.6 million of Altisource debt under the Amended Credit Agreement as of June 30, 2024 and 2023, respectively. An employee of Deer Park is a member of Altisource’s Board of Directors. In connection with the Amended Credit Agreement, Deer Park received 292 thousand Warrants. During the six months ended June 30, 2024 and 2023, Deer Park received interest of $1.1 million and $2.0 million, respectively from the Altisource SSTL. As of June 30, 2024, debt issuance and amendment costs were $2.1 million, net of $7.3 million of accumulated amortization. As of December 31, 2023, debt issuance and amendment costs were $3.3 million, net of $6.1 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 As of June 30, 2024 and December 31, 2023, there was no outstanding debt under the Amended Revolver and Revolver, respectively. As of June 30, 2024 debt issuance costs were $0.1 million, net of $0.4 million of accumulated amortization. As of December 31, 2023 debt issuance costs were $0.2 million, net of $0.4 million of accumulated amortization. Debt issuance costs for the Amended Revolver and Revolver are included in other assets in the accompanying consolidated balance sheet. |
WARRANTS
WARRANTS | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
WARRANTS | WARRANTS On February 14, 2023, the lenders under the Amended Credit Agreement (see Note 10 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 was subject to reduction based on the amount of Aggregate Paydowns. During 2023, the Company made $30 million of Aggregate Paydowns. Since Aggregate Paydowns were equal to or greater than $30 million, the number of Warrant Shares was reduced to 1,612,705. The following table summarizes the activity related to our Warrant Shares: Warrant Shares Outstanding as of December 31, 2023 1,612,705 Exercised (92,077) Outstanding as of June 30, 2024 1,520,628 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, which expired on February 16, 2024. The Warrants are free standing financial instruments that are legally detachable and separately exercisable from the term loans under the Amended Credit Agreement. At inception, the Warrants were not considered to be indexed to the Company’s stock because the number of Warrant Shares varied based on Aggregate Paydowns. Pursuant to ASC 815-40, Derivatives and Hedging–Contracts in Entity’s Own Equity , the outstanding Warrants were recognized as a warrant liability on the balance sheet based on their inception date fair value and subsequently re-measured at each reporting period with changes recorded as a component of other income (expense) in the statement of operations. On September 18, 2023, the Company reached the $30 million in Aggregate Paydowns threshold and the number of Warrant Shares was no longer variable. As a result, the Warrants were considered to be indexed to the Company’s stock and the Warrant Liability was reclassified to equity. The fair value of the warrant liability was based on the number of Warrant Shares that were 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 Liability Warrant Shares based on Aggregate Paydowns Expected Warrant Shares that will be exercisable on February 14, 2024 Fair Value per Warrant Share Fair Value Fair value at initial measurement date of February 14, 2023 3,223,851 1,612,705 $5.02 $ 8,096 Gain on change in fair value of warrant liability (694) Fair value at March 31, 2023 2,578,743 1,612,705 $4.59 7,402 Loss on change in fair value of warrant liability 1,774 Fair value at June 30, 2023 2,578,743 1,612,705 $5.69 $ 9,176 During the six months ended June 30, 2023, the Company recorded a loss on changes in fair value of warrant liability of $1.1 million ($1.8 million for the second quarter of 2023) (no comparative amount for the three and six months ended June 30, 2024). |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following: (in thousands) June 30, December 31, Income tax liabilities $ 17,486 $ 17,506 Operating lease liabilities 1,215 1,950 Deferred revenue 13 9 Other non-current liabilities 64 45 Total $ 18,778 $ 19,510 |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 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 June 30, 2024 and December 31, 2023. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: June 30, 2024 December 31, 2023 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 29,702 $ 29,702 $ — $ — $ 32,522 $ 32,522 $ — $ — Restricted cash 2,884 2,884 — — 2,894 2,894 — — Short-term receivable 3,126 — — 3,126 3,201 — — 3,201 Liabilities: Senior secured term loan 228,354 — 114,177 — 224,085 — 177,027 — 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 are measured using Level 1 inputs. The fair value of our SSTL 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 connection with the sale 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 as a short-term receivable. We measure short-term receivables without a stated interest rate based on the present value of the future payments. 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 derived 44% of its revenue from Onity for the three and six months ended June 30, 2024 (see Note 2 for additional information on Onity revenues and accounts receivable balance). The Company strives 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. |
SHAREHOLDERS_ EQUITY AND SHARE-
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Share Repurchase Program On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by the shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 3.1 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $1.00 per share and a maximum price of $25.00 per share, for a period of five years from the date of approval. As of June 30, 2024, approximately 3.1 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the six months ended June 30, 2024 and 2023. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of June 30, 2024, we can repurchase up to approximately $115 million of our common stock under Luxembourg law. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances. Public offerings 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, generating net proceeds of $20.5 million, after deducting the underwriting discounts and commissions and other offering expenses. On September 7, 2023, Altisource closed on an underwritten public offering to sell 5,590,277 shares of its common stock, at a price of $3.60 per share, generating net proceeds of $18.4 million, after deducting the underwriting discounts and commissions and other offering expenses. Share-Based Compensation We issue share-based awards in the form of stock options, restricted shares and restricted share units for certain employees, officers and directors. We recognized share-based compensation expense of $3.1 million and $2.7 million for the six months ended June 30, 2024 and 2023, respectively ($0.8 million and $1.2 million for the second quarter of 2024 and 2023, respectively). The increase for the six months ended June 30, 2024 was primarily driven by the accelerated amortization for awards granted to retirement-eligible employees. As of June 30, 2024, estimated unrecognized compensation costs related to share-based awards amounted to $2.7 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 1.16 years. 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 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 options generally vest in three Performance-Based Options. These option grants generally will vest if certain specific financial measures are achieved; typically with one-fourth vesting on each anniversary of the grant date. 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 50% to 200% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the options are canceled. The 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 in which case vesting will generally continue in accordance with the provisions of the award agreement. There were 461 thousand performance-based options outstanding as of June 30, 2024. There were no stock option grants during the six months ended June 30, 2024 and 2023. The fair values of the performance-based options are determined using the Black-Scholes option pricing model. We determined the expected option life of all service-based stock option grants using the simplified 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 grant date fair value of stock options that vested during the periods presented: Six months ended June 30, (in thousands, except per share data) 2024 2023 Weighted average grant date fair value of stock options granted per share $ — $ — Intrinsic value of options exercised — — Grant date fair value of stock options that vested 83 83 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 as of December 31, 2023 739,189 $ 27.04 4.83 $ — Granted — — Forfeited (2,500) 28.95 Outstanding as of June 30, 2024 736,689 27.04 3.35 — Exercisable as of June 30, 2024 549,450 25.05 2.83 — Other Share-Based Awards The Company’s other share-based and similar types of awards are comprised of restricted shares and restricted share units. The restricted shares and restricted share units are comprised of a combination of service-based awards, performance-based awards, market-based awards and performance and market-based awards. Service-Based Awards. These awards generally vest over one Performance-Based Awards. These awards generally vest if certain specific financial measures are achieved; generally one-third vests on each anniversary of the grant date or cliff-vest on the third anniversary of the grant date. The number of performance-based restricted shares and restricted share units that may vest is based on the level of achievement as specified in the award agreements. 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 150% of the restricted share unit award for certain awards. If the performance criteria achieved is below certain thresholds, the award is canceled. A total of 190 thousand performance-based awards were outstanding as of June 30, 2024. 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 the 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 June 30, 2024. 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 certain 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 189 thousand performance-based and market-based awards were outstanding as of June 30, 2024. The Company granted 1,554 thousand restricted share units (at a weighted average grant date fair value of $2.52 per share) during the six months ended June 30, 2024. These grants included 88 thousand performance-based awards and 88 thousand awards that include both a performance condition and a market condition. The Company granted 891 thousand restricted share units (at a weighted average grant date fair value of $4.82 per share) during the six months ended June 30, 2023. These grants included 57 thousand performance-based awards and 57 thousand awards that include both a performance condition and a market condition. The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2023 1,262,742 Granted 1,554,003 Issued (522,126) Forfeited/canceled (282,178) Outstanding as of June 30, 2024 2,012,441 |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE We 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. 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. 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: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Service revenue $ 36,863 $ 33,173 $ 73,754 $ 70,244 Reimbursable expenses 2,223 2,049 4,760 4,359 Non-controlling interests 35 13 76 93 Total $ 39,121 $ 35,235 $ 78,590 $ 74,696 Disaggregation of Revenue Disaggregation of total revenue by segment and major source was as follows: Three months ended June 30, 2024 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 26,494 $ 2,531 $ 2,099 $ 31,124 Origination 7,714 159 124 7,997 Total revenue $ 34,208 $ 2,690 $ 2,223 $ 39,121 Three months ended June 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 22,538 $ 2,380 $ 1,930 $ 26,848 Origination 8,262 6 119 8,387 Total revenue $ 30,800 $ 2,386 $ 2,049 $ 35,235 Six months ended June 30, 2024 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 52,891 $ 5,215 $ 4,520 $ 62,626 Origination 15,410 314 240 15,964 Total revenue $ 68,301 $ 5,529 $ 4,760 $ 78,590 Six months ended June 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 49,091 $ 5,588 $ 4,114 $ 58,793 Origination 15,644 14 245 15,903 Total revenue $ 64,735 $ 5,602 $ 4,359 $ 74,696 Transactions with Related Parties John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), is a member of the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company and pays for the use of certain of the Company’s technology in connection with providing these services. The Company recognized less than $0.1 million for the three and six months ended June 30, 2024 and 2023, respectively, of service revenue relating to services provided to Aldridge Pite. 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 $2.2 million and $2.8 million for the six months ended June 30, 2024 and 2023, respectively ($0.9 million for the second quarter of 2024 and 2023). |
COST OF REVENUE
COST OF REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
Cost of Revenue [Abstract] | |
COST OF REVENUE | COST OF REVENUE Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service, operations and technology roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Outside fees and services $ 14,321 $ 14,057 $ 28,767 $ 29,151 Compensation and benefits 7,343 9,281 14,456 18,982 Technology and telecommunications 2,344 3,865 5,230 7,262 Reimbursable expenses 2,223 2,049 4,760 4,359 Depreciation and amortization 173 451 356 906 Total $ 26,404 $ 29,703 $ 53,569 $ 60,660 Transactions with Related Parties The Company recognized $0.4 million and $0.5 million for the six months ended June 30, 2024 and 2023, respectively ($0.2 million and $0.3 million for the second quarter of 2024 and 2023, respectively), of cost of revenue relating to services received from Aldridge Pite. As of June 30, 2024, the Company had no payable to Aldridge Pite. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 6 Months Ended |
Jun. 30, 2024 | |
Selling, General and Administrative Expense [Abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 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 roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Compensation and benefits $ 4,510 $ 5,376 $ 10,352 $ 11,406 Professional services 2,082 2,275 4,613 3,846 Amortization of intangible assets 1,270 1,280 2,540 2,560 Occupancy related costs 1,050 1,216 1,975 2,658 Marketing costs 539 559 1,047 941 Depreciation and amortization 103 204 216 448 Other 1,080 1,431 2,743 2,576 Total $ 10,634 $ 12,341 $ 23,486 $ 24,435 |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET Other income (expense), net consists of the following: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Interest income (expense) $ 206 $ 315 $ 429 $ 749 Other, net (67) 75 1,352 1,201 Total $ 139 $ 390 $ 1,781 $ 1,950 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESWe recognized an income tax provision of $1.4 million and $2.2 million for the six months ended June 30, 2024 and 2023, respectively ($0.7 million and $0.6 million for the second quarter of 2024 and 2023, respectively). Income tax provision for the three and six months ended June 30, 2024 was driven primarily by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. In accordance with ASC 260, penny warrants are included in the calculation of weighted average basic and diluted loss per share for the period that they are classified as equity. For the three and six months ended June 30, 2024, 1.5 million and 1.5 million penny warrants have been included in the calculation of weighted average basic and diluted loss per share. Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below. Basic and diluted loss per share are calculated as follows: Three months ended Six months ended (in thousands, except per share data) 2024 2023 2024 2023 Net loss attributable to Altisource $ (8,307) $ (18,850) $ (17,505) $ (31,797) Weighted average common shares outstanding, basic 28,551 20,840 28,366 19,648 Weighted average common shares outstanding, diluted 28,551 20,840 28,366 19,648 Loss per share: Basic $ (0.29) $ (0.90) $ (0.62) $ (1.62) Diluted $ (0.29) $ (0.90) $ (0.62) $ (1.62) For the six months ended June 30, 2024 and 2023, 2.2 million and 3.5 million, respectively (2.5 million and 4.1 million for the second quarter of 2024 and 2023, respectively), stock options, restricted shares and restricted share units were excluded from the computation of loss per share, as a result of the following: • For the six months ended June 30, 2024 and 2023, 0.7 million and 2.2 million, respectively (0.7 million and 2.8 million for the second quarter of 2024 and 2023, respectively), stock options, restricted shares and restricted share units were anti-dilutive and have been excluded from the computation of diluted loss per share because the Company incurred a net loss • For the six months ended June 30, 2024 and 2023, 0.6 million and 0.3 million, respectively (0.7 million and 0.3 million for the second quarter of 2024 and 2023, respectively), stock options were anti-dilutive and have been excluded from the computation of diluted loss per share because their exercise price was greater than the average market price of our common stock • |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | 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. Litigation We are currently involved in legal actions in the course of our business, most of which seek monetary damages. Although the outcome of these proceedings cannot be predicted with certainty, we currently believe that their outcome, both individually and in the aggregate, will not 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 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. Onity Related Matters As discussed in Note 2, during the three and six months ended June 30, 2024, Onity was our largest customer, accounting for 44% of our total revenue. Additionally, 7% of our revenue for the six months ended June 30, 2024 (6% of our revenue for the second quarter of 2024) was earned on the loan portfolios serviced by Onity, when a party other than Onity or the MSRs owner selected Altisource as the service provider. Onity has disclosed that it is subject to a number of ongoing regulatory examinations, orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages. Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services. Existing or future similar matters could result in adverse regulatory or other actions against Onity. In addition to the above, Onity may become subject to future adverse regulatory or other actions. Onity has disclosed that Rithm is one of its largest servicing clients. As of March 31, 2024, Onity reported that approximately 15% of loans serviced and subserviced by Onity (measured in UPB) and approximately 66% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs. The existence or outcome of Onity regulatory matters or the termination of Onity’s sub-servicing agreements with Rithm, or other significant Onity clients may have significant adverse effects on Onity’s business. For example, Onity may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-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 Onity’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 Onity as a customer or a reduction in the number and/or volume of services it purchases from us or the loss of other customers. If any of the following events occurred, Altisource’s revenue could be significantly reduced 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 Onity as a customer or there is a significant reduction in the volume of services it purchases from us • Onity loses, sells or transfers a significant portion of its GSE 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 Onity and Rithm changes significantly, including Onity’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 • Onity loses state servicing licenses in states with a significant number of loans in Onity’s servicing portfolio • Onity is subject to stays, moratoriums, suspensions or other restrictions that limit or delay default-related actions on the loans it services • The contractual relationship between Onity and Altisource changes significantly or there are significant changes to our pricing to Onity for services from which we generate material revenue • Altisource otherwise fails to be retained as a service provider. The foregoing list is not intended to be exhaustive. Management cannot predict whether any of these events or other events will occur or the amount of any impact they may have on Altisource. Leases We lease certain premises and equipment, primarily consisting of office space and information technology equipment. Certain of our leases include options to renew at our discretion or terminate leases early, and these options are considered in our determination of the expected lease term. Certain of our 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 $0.3 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively ($0.1 million and $0.1 million for the second quarter of 2024 and 2023, respectively). The amortization periods of right-of-use assets are generally limited by the expected lease term. Our leases generally have expected lease terms at adoption of one Information about our lease terms and our discount rate assumption were as follows for the six months ended June 30: 2024 2023 Weighted average remaining lease term (in years) 1.86 2.58 Weighted average discount rate 6.44 % 5.91 % Our lease activity during the period was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Operating lease costs: Selling, general and administrative expense $ 468 $ 530 $ 943 $ 1,085 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 483 $ 591 $ 966 $ 1,131 Short-term (twelve months or less) lease costs 3 430 21 849 Maturities of our lease liabilities as of June 30, 2024 are as follows: (in thousands) Operating lease obligations 2024 $ 853 2025 1,404 2026 638 2027 — 2028 — Total lease payments 2,895 Less: interest (169) Present value of lease liabilities $ 2,726 Escrow and Other Balances We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow and other accounts for limited periods of time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow and other accounts were $24.8 million and $21.6 million as of June 30, 2024 and December 31, 2023, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 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. We conduct our operations through two reportable segments: Servicer and Real Estate and Origination . In addition, we report Corporate and Others separately. The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. 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. Financial Information Financial information for our segments is as follows: Three months ended June 30, 2024 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 31,124 $ 7,997 $ — $ 39,121 Cost of revenue 18,716 6,356 1,332 26,404 Gross profit (loss) 12,408 1,641 (1,332) 12,717 Selling, general and administrative expenses 2,395 1,746 6,493 10,634 Income (loss) from operations 10,013 (105) (7,825) 2,083 Total other income (expense), net (1) — (9,648) (9,649) Income (loss) before income taxes and non-controlling interests $ 10,012 $ (105) $ (17,473) $ (7,566) Three months ended June 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 26,848 $ 8,387 $ — $ 35,235 Cost of revenue 18,038 8,018 3,647 29,703 Gross profit (loss) 8,810 369 (3,647) 5,532 Selling, general and administrative expenses 2,638 2,350 7,353 12,341 Income (loss) from operations 6,172 (1,981) (11,000) (6,809) Total other income (expense), net — — (11,389) (11,389) Income (loss) before income taxes and non-controlling interests $ 6,172 $ (1,981) $ (22,389) $ (18,198) Six months ended June 30, 2024 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 62,626 $ 15,964 $ — $ 78,590 Cost of revenue 37,848 12,489 3,232 53,569 Gross profit (loss) 24,778 3,475 (3,232) 25,021 Selling, general and administrative expenses 5,493 3,705 14,288 23,486 Income (loss) from operations 19,285 (230) (17,520) 1,535 Total other income (expense), net (1) — (17,535) (17,536) Income (loss) before income taxes and non-controlling interests $ 19,284 $ (230) $ (35,055) $ (16,001) Six months ended June 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 58,793 $ 15,903 $ — $ 74,696 Cost of revenue 37,763 15,472 7,425 60,660 Gross profit (loss) 21,030 431 (7,425) 14,036 Selling, general and administrative expenses 4,939 4,076 15,420 24,435 Income (loss) from operations 16,091 (3,645) (22,845) (10,399) Total other income (expense), net — — (19,137) (19,137) Income (loss) before income taxes and non-controlling interests $ 16,091 $ (3,645) $ (41,982) $ (29,536) Total Assets Total assets for our segments are as follows: (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Total assets: June 30, 2024 $ 57,411 $ 48,550 $ 40,596 $ 146,557 December 31, 2023 57,535 50,431 46,892 154,858 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting and Presentation | 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 periods. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. 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). |
Fair Value Measurements | 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 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. |
Future Adoption of New Accounting Pronouncements | Future Adoption of New Accounting Pronouncement In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This standard updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. This standard will be effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This standard amends the Codification to enhance the transparency and decision usefulness of income tax disclosures, to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This standard will be effective for annual periods beginning after December 15, 2024. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements. |
CUSTOMER CONCENTRATION (Tables)
CUSTOMER CONCENTRATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue from Major Customers by Reporting Segments | Revenue from Onity as a percentage of segment and consolidated revenue was as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Servicer and Real Estate 55 % 52 % 56 % 54 % Origination — % — % — % — % Corporate and Others — % — % — % — % Consolidated revenue 44 % 40 % 44 % 42 % |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Change in Allowance for Doubtful Accounts and Expected Credit Losses | Accounts receivable, net consists of the following: (in thousands) June 30, December 31, Billed $ 10,146 $ 9,826 Unbilled 6,465 4,979 16,611 14,805 Less: Allowance for credit losses (3,421) (3,123) Total $ 13,190 $ 11,682 Changes in the allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: Three months ended June 30, 2024 $ 3,555 $ (8) $ (126) $ 3,421 Three months ended June 30, 2023 4,205 482 (373) 4,314 Six months ended June 30, 2024 $ 3,123 $ 550 $ (252) $ 3,421 Six months ended June 30, 2023 4,363 522 (571) 4,314 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: (in thousands) June 30, December 31, Indemnity escrow receivable from Pointillist sale $ 3,126 $ 3,201 Prepaid expenses 2,743 3,722 Maintenance agreements, current portion 1,289 1,327 Income taxes receivable 689 325 Restricted cash 23 23 Other current assets 439 2,738 Total $ 8,309 $ 11,336 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment, Net | Premises and equipment, net consists of the following: (in thousands) June 30, December 31, Computer hardware and software $ 46,098 $ 46,519 Leasehold improvements 709 1,011 Furniture and fixtures 72 102 Office equipment and other 17 17 46,896 47,649 Less: Accumulated depreciation and amortization (45,772) (45,940) Total $ 1,124 $ 1,709 |
Schedule of Premises and Equipment, Net by Country | Premises and equipment, net consist of the following by country: (in thousands) June 30, December 31, Luxembourg $ 788 $ 1,131 India 296 492 United States 40 64 Uruguay — 22 Total $ 1,124 $ 1,709 |
RIGHT-OF-USE ASSETS UNDER OPE_2
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Right-of-Use Assets Under Operating Leases | Right-of-use assets under operating leases, net consists of the following: (in thousands) June 30, December 31, Right-of-use assets under operating leases $ 7,286 $ 7,242 Less: Accumulated amortization (4,674) (3,863) Total $ 2,612 $ 3,379 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following is a summary of goodwill by segment: (in thousands) Servicer and Real Estate Origination Corporate and Others Total Balance as of June 30, 2024 and December 31, 2023 $ 30,681 $ 25,279 $ — $ 55,960 |
Schedule of Intangible Assets | Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) June 30, December 31, June 30, December 31, June 30, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 213,912 $ 214,307 $ (201,741) $ (200,656) $ 12,171 $ 13,651 Operating agreement 20 35,000 35,000 (25,229) (24,354) 9,771 10,646 Trademarks and trade names 16 9,709 9,709 (7,643) (7,458) 2,066 2,251 Total $ 258,621 $ 259,016 $ (234,613) $ (232,468) $ 24,008 $ 26,548 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: (in thousands) June 30, December 31, Restricted cash $ 2,861 $ 2,871 Surety bond collateral 2,000 2,000 Security deposits 396 397 Other 1,412 1,462 Total $ 6,669 $ 6,730 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: (in thousands) June 30, December 31, Accounts payable $ 14,280 $ 15,275 Accrued expenses - general 8,885 8,637 Accrued salaries and benefits 5,113 5,048 Income taxes payable 1,766 1,128 Total $ 30,044 $ 30,088 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: (in thousands) June 30, December 31, Operating lease liabilities $ 1,511 $ 1,570 Other 734 907 Total $ 2,245 $ 2,477 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: (in thousands) June 30, December 31, Senior secured term loans $ 228,354 $ 224,085 Less: Debt issuance and amendment costs, net (2,094) (3,318) Less: Unamortized discount, net (3,251) (5,152) Net long-term debt 223,009 215,615 Less: Current portion of long-term debt (223,009) — Total long-term debt, less current portion $ — $ 215,615 |
WARRANTS (Tables)
WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Warrant Activity | The following table summarizes the activity related to our Warrant Shares: Warrant Shares Outstanding as of December 31, 2023 1,612,705 Exercised (92,077) Outstanding as of June 30, 2024 1,520,628 |
Fair Value of Warrant Liability | The fair value of the warrant liability at each of the respective valuation dates is summarized below: Warrant Liability Warrant Shares based on Aggregate Paydowns Expected Warrant Shares that will be exercisable on February 14, 2024 Fair Value per Warrant Share Fair Value Fair value at initial measurement date of February 14, 2023 3,223,851 1,612,705 $5.02 $ 8,096 Gain on change in fair value of warrant liability (694) Fair value at March 31, 2023 2,578,743 1,612,705 $4.59 7,402 Loss on change in fair value of warrant liability 1,774 Fair value at June 30, 2023 2,578,743 1,612,705 $5.69 $ 9,176 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following: (in thousands) June 30, December 31, Income tax liabilities $ 17,486 $ 17,506 Operating lease liabilities 1,215 1,950 Deferred revenue 13 9 Other non-current liabilities 64 45 Total $ 18,778 $ 19,510 |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: June 30, 2024 December 31, 2023 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 29,702 $ 29,702 $ — $ — $ 32,522 $ 32,522 $ — $ — Restricted cash 2,884 2,884 — — 2,894 2,894 — — Short-term receivable 3,126 — — 3,126 3,201 — — 3,201 Liabilities: Senior secured term loan 228,354 — 114,177 — 224,085 — 177,027 — |
SHAREHOLDERS_ EQUITY AND SHAR_2
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the Weighted Average Fair Value of Stock Options Granted, the Total Intrinsic Value of Stock Options Exercised and the Fair Value of Options Vested | The following table summarizes the grant date fair value of stock options that vested during the periods presented: Six months ended June 30, (in thousands, except per share data) 2024 2023 Weighted average grant date fair value of stock options granted per share $ — $ — Intrinsic value of options exercised — — Grant date fair value of stock options that vested 83 83 |
Summary of the Activity of the Entity's Stock Options | 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 as of December 31, 2023 739,189 $ 27.04 4.83 $ — Granted — — Forfeited (2,500) 28.95 Outstanding as of June 30, 2024 736,689 27.04 3.35 — Exercisable as of June 30, 2024 549,450 25.05 2.83 — |
Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2023 1,262,742 Granted 1,554,003 Issued (522,126) Forfeited/canceled (282,178) Outstanding as of June 30, 2024 2,012,441 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | The components of revenue were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Service revenue $ 36,863 $ 33,173 $ 73,754 $ 70,244 Reimbursable expenses 2,223 2,049 4,760 4,359 Non-controlling interests 35 13 76 93 Total $ 39,121 $ 35,235 $ 78,590 $ 74,696 |
Disaggregation of Revenue | Disaggregation of total revenue by segment and major source was as follows: Three months ended June 30, 2024 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 26,494 $ 2,531 $ 2,099 $ 31,124 Origination 7,714 159 124 7,997 Total revenue $ 34,208 $ 2,690 $ 2,223 $ 39,121 Three months ended June 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 22,538 $ 2,380 $ 1,930 $ 26,848 Origination 8,262 6 119 8,387 Total revenue $ 30,800 $ 2,386 $ 2,049 $ 35,235 Six months ended June 30, 2024 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 52,891 $ 5,215 $ 4,520 $ 62,626 Origination 15,410 314 240 15,964 Total revenue $ 68,301 $ 5,529 $ 4,760 $ 78,590 Six months ended June 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 49,091 $ 5,588 $ 4,114 $ 58,793 Origination 15,644 14 245 15,903 Total revenue $ 64,735 $ 5,602 $ 4,359 $ 74,696 |
COST OF REVENUE (Tables)
COST OF REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cost of Revenue [Abstract] | |
Schedule of Components of Cost of Revenue | The components of cost of revenue were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Outside fees and services $ 14,321 $ 14,057 $ 28,767 $ 29,151 Compensation and benefits 7,343 9,281 14,456 18,982 Technology and telecommunications 2,344 3,865 5,230 7,262 Reimbursable expenses 2,223 2,049 4,760 4,359 Depreciation and amortization 173 451 356 906 Total $ 26,404 $ 29,703 $ 53,569 $ 60,660 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Selling, General and Administrative Expense [Abstract] | |
Schedule of the Components of Selling, General and Administrative Expenses | The components of selling, general and administrative expenses were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Compensation and benefits $ 4,510 $ 5,376 $ 10,352 $ 11,406 Professional services 2,082 2,275 4,613 3,846 Amortization of intangible assets 1,270 1,280 2,540 2,560 Occupancy related costs 1,050 1,216 1,975 2,658 Marketing costs 539 559 1,047 941 Depreciation and amortization 103 204 216 448 Other 1,080 1,431 2,743 2,576 Total $ 10,634 $ 12,341 $ 23,486 $ 24,435 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Expense) Income, Net | Other income (expense), net consists of the following: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Interest income (expense) $ 206 $ 315 $ 429 $ 749 Other, net (67) 75 1,352 1,201 Total $ 139 $ 390 $ 1,781 $ 1,950 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS Calculation | Basic and diluted loss per share are calculated as follows: Three months ended Six months ended (in thousands, except per share data) 2024 2023 2024 2023 Net loss attributable to Altisource $ (8,307) $ (18,850) $ (17,505) $ (31,797) Weighted average common shares outstanding, basic 28,551 20,840 28,366 19,648 Weighted average common shares outstanding, diluted 28,551 20,840 28,366 19,648 Loss per share: Basic $ (0.29) $ (0.90) $ (0.62) $ (1.62) Diluted $ (0.29) $ (0.90) $ (0.62) $ (1.62) |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Term and Assumption | Information about our lease terms and our discount rate assumption were as follows for the six months ended June 30: 2024 2023 Weighted average remaining lease term (in years) 1.86 2.58 Weighted average discount rate 6.44 % 5.91 % |
Lease Activity During Period | Our lease activity during the period was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Operating lease costs: Selling, general and administrative expense $ 468 $ 530 $ 943 $ 1,085 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 483 $ 591 $ 966 $ 1,131 Short-term (twelve months or less) lease costs 3 430 21 849 |
Maturities of Operating Lease Liabilities | Maturities of our lease liabilities as of June 30, 2024 are as follows: (in thousands) Operating lease obligations 2024 $ 853 2025 1,404 2026 638 2027 — 2028 — Total lease payments 2,895 Less: interest (169) Present value of lease liabilities $ 2,726 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Segments | Financial Information Financial information for our segments is as follows: Three months ended June 30, 2024 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 31,124 $ 7,997 $ — $ 39,121 Cost of revenue 18,716 6,356 1,332 26,404 Gross profit (loss) 12,408 1,641 (1,332) 12,717 Selling, general and administrative expenses 2,395 1,746 6,493 10,634 Income (loss) from operations 10,013 (105) (7,825) 2,083 Total other income (expense), net (1) — (9,648) (9,649) Income (loss) before income taxes and non-controlling interests $ 10,012 $ (105) $ (17,473) $ (7,566) Three months ended June 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 26,848 $ 8,387 $ — $ 35,235 Cost of revenue 18,038 8,018 3,647 29,703 Gross profit (loss) 8,810 369 (3,647) 5,532 Selling, general and administrative expenses 2,638 2,350 7,353 12,341 Income (loss) from operations 6,172 (1,981) (11,000) (6,809) Total other income (expense), net — — (11,389) (11,389) Income (loss) before income taxes and non-controlling interests $ 6,172 $ (1,981) $ (22,389) $ (18,198) Six months ended June 30, 2024 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 62,626 $ 15,964 $ — $ 78,590 Cost of revenue 37,848 12,489 3,232 53,569 Gross profit (loss) 24,778 3,475 (3,232) 25,021 Selling, general and administrative expenses 5,493 3,705 14,288 23,486 Income (loss) from operations 19,285 (230) (17,520) 1,535 Total other income (expense), net (1) — (17,535) (17,536) Income (loss) before income taxes and non-controlling interests $ 19,284 $ (230) $ (35,055) $ (16,001) Six months ended June 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 58,793 $ 15,903 $ — $ 74,696 Cost of revenue 37,763 15,472 7,425 60,660 Gross profit (loss) 21,030 431 (7,425) 14,036 Selling, general and administrative expenses 4,939 4,076 15,420 24,435 Income (loss) from operations 16,091 (3,645) (22,845) (10,399) Total other income (expense), net — — (19,137) (19,137) Income (loss) before income taxes and non-controlling interests $ 16,091 $ (3,645) $ (41,982) $ (29,536) Total Assets Total assets for our segments are as follows: (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Total assets: June 30, 2024 $ 57,411 $ 48,550 $ 40,596 $ 146,557 December 31, 2023 57,535 50,431 46,892 154,858 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) installment segment | Dec. 31, 2023 USD ($) | |
Summary of significant accounting policies | ||
Number of reporting segments | segment | 2 | |
Total assets: | $ 146,557 | $ 154,858 |
Variable Interest Entity, Primary Beneficiary | ||
Summary of significant accounting policies | ||
Number of terms | installment | 3 | |
Agreement term | 5 years | |
Total assets: | $ 400 | 400 |
Total liabilities | $ 500 | $ 600 |
CUSTOMER CONCENTRATION - Narrat
CUSTOMER CONCENTRATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Concentration Risk | ||||||
Revenue | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 | ||
Customer Concentration Risk | RITM | Revenue | ||||||
Concentration Risk | ||||||
Revenue | 600 | 800 | 1,300 | 1,600 | ||
Customer Concentration Risk | Highly Correlated - RITM | Revenue | ||||||
Concentration Risk | ||||||
Revenue | 3,200 | $ 3,500 | 6,100 | $ 6,800 | ||
Customer Concentration Risk | Onity Financial Corporation | ||||||
Concentration Risk | ||||||
Accounts receivable | 4,400 | 4,400 | $ 3,400 | |||
Customer Concentration Risk | Onity Financial Corporation | Billed | ||||||
Concentration Risk | ||||||
Accounts receivable | 3,500 | 3,500 | 2,200 | |||
Customer Concentration Risk | Onity Financial Corporation | Unbilled | ||||||
Concentration Risk | ||||||
Accounts receivable | $ 900 | $ 900 | $ 1,200 | |||
Customer Concentration Risk | Onity Financial Corporation | Revenue | ||||||
Concentration Risk | ||||||
Concentration percentage (in percent) | 44% | 40% | 44% | 42% | ||
Revenue | $ 17,200 | $ 14,000 | $ 34,900 | $ 31,600 | ||
Customer Concentration Risk | Highly Correlated - Onity | Revenue | ||||||
Concentration Risk | ||||||
Concentration percentage (in percent) | 6% | 7% | ||||
Revenue | $ 2,400 | $ 2,100 | $ 5,200 | $ 5,000 | ||
Customer Concentration Risk | Onity Financial Corporation | RITM | Revenue | ||||||
Concentration Risk | ||||||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 15% | |||||
Percentage of delinquent loans Onity services (in percent) | 0.66 |
CUSTOMER CONCENTRATION - Schedu
CUSTOMER CONCENTRATION - Schedule of Revenue from Onity (Details) - Onity Financial Corporation - Revenue - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 44% | 40% | 44% | 42% |
Corporate and Others | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 0% | 0% | 0% | 0% |
Servicer and Real Estate | Operating Segments | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 55% | 52% | 56% | 54% |
Origination | Operating Segments | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 0% | 0% | 0% | 0% |
ACCOUNTS RECEIVABLE, NET - Sche
ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, net | ||||||
Accounts receivable, gross | $ 16,611 | $ 14,805 | ||||
Less: Allowance for credit losses | (3,421) | $ (3,555) | (3,123) | $ (4,314) | $ (4,205) | $ (4,363) |
Total | 13,190 | 11,682 | ||||
Billed | ||||||
Accounts receivable, net | ||||||
Accounts receivable, gross | 10,146 | 9,826 | ||||
Unbilled | ||||||
Accounts receivable, net | ||||||
Accounts receivable, gross | $ 6,465 | $ 4,979 |
ACCOUNTS RECEIVABLE, NET - Sc_2
ACCOUNTS RECEIVABLE, NET - Schedule of Allowance for Doubtful Accounts and Expected Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance for expected credit losses: | ||||
Balance at Beginning of Period | $ 3,555 | $ 4,205 | $ 3,123 | $ 4,363 |
Additions Charged to Expenses | (8) | 482 | 550 | 522 |
Deductions | (126) | (373) | (252) | (571) |
Balance at End of Period | $ 3,421 | $ 4,314 | $ 3,421 | $ 4,314 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Indemnity escrow receivable from Pointillist sale | $ 3,126 | $ 3,201 |
Prepaid expenses | 2,743 | 3,722 |
Maintenance agreements, current portion | 1,289 | 1,327 |
Income taxes receivable | 689 | 325 |
Restricted cash | 23 | 23 |
Other current assets | 439 | 2,738 |
Total | $ 8,309 | $ 11,336 |
PREMISES AND EQUIPMENT, NET - S
PREMISES AND EQUIPMENT, NET - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 46,896 | $ 47,649 |
Less: Accumulated depreciation and amortization | (45,772) | (45,940) |
Total | 1,124 | 1,709 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 46,098 | 46,519 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 709 | 1,011 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 72 | 102 |
Office equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 17 | $ 17 |
PREMISES AND EQUIPMENT, NET - N
PREMISES AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 300 | $ 700 | $ 572 | $ 1,353 |
PREMISES AND EQUIPMENT, NET -_2
PREMISES AND EQUIPMENT, NET - Summary by Country (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,124 | $ 1,709 |
Luxembourg | ||
Property, Plant and Equipment [Line Items] | ||
Total | 788 | 1,131 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Total | 296 | 492 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total | 40 | 64 |
Uruguay | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 0 | $ 22 |
RIGHT-OF-USE ASSETS UNDER OPE_3
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET - Summary of Right-Of-Use Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Right-of-use assets under operating leases | $ 7,286 | $ 7,242 |
Less: Accumulated amortization | (4,674) | (3,863) |
Total | $ 2,612 | $ 3,379 |
RIGHT-OF-USE ASSETS UNDER OPE_4
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets under operating leases | $ 400 | $ 500 | $ 811 | $ 930 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible Assets, Net | ||
Goodwill | $ 55,960 | $ 55,960 |
Corporate and Others | ||
Intangible Assets, Net | ||
Goodwill | 0 | 0 |
Servicer and Real Estate | Operating Segments | ||
Intangible Assets, Net | ||
Goodwill | 30,681 | 30,681 |
Origination | Operating Segments | ||
Intangible Assets, Net | ||
Goodwill | $ 25,279 | $ 25,279 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible Assets, Net | ||
Gross carrying amount | $ 258,621 | $ 259,016 |
Accumulated amortization | (234,613) | (232,468) |
Net book value | 24,008 | 26,548 |
Customer related intangible assets | ||
Intangible Assets, Net | ||
Gross carrying amount | 213,912 | 214,307 |
Accumulated amortization | (201,741) | (200,656) |
Net book value | 12,171 | 13,651 |
Operating agreement | ||
Intangible Assets, Net | ||
Gross carrying amount | 35,000 | 35,000 |
Accumulated amortization | (25,229) | (24,354) |
Net book value | 9,771 | 10,646 |
Trademarks and trade names | ||
Intangible Assets, Net | ||
Gross carrying amount | 9,709 | 9,709 |
Accumulated amortization | (7,643) | (7,458) |
Net book value | $ 2,066 | $ 2,251 |
Weighted Average | Customer related intangible assets | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 9 years | |
Weighted Average | Operating agreement | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 20 years | |
Weighted Average | Trademarks and trade names | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 16 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 1,270 | $ 1,280 | $ 2,540 | $ 2,560 |
Expected amortization, remainder of year | 5,100 | 5,100 | ||
Expected amortization, year 1 | 5,100 | 5,100 | ||
Expected amortization, year 2 | 4,900 | 4,900 | ||
Expected amortization, year 3 | 4,700 | 4,700 | ||
Expected amortization, year 4 | $ 4,400 | $ 4,400 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Restricted cash | $ 2,861 | $ 2,871 |
Surety bond collateral | 2,000 | 2,000 |
Security deposits | 396 | 397 |
Other | 1,412 | 1,462 |
Total | $ 6,669 | $ 6,730 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 14,280 | $ 15,275 |
Accrued expenses - general | 8,885 | 8,637 |
Accrued salaries and benefits | 5,113 | 5,048 |
Income taxes payable | 1,766 | 1,128 |
Total | $ 30,044 | $ 30,088 |
ACCOUNTS PAYABLE, ACCRUED EXP_4
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other current liabilities | ||
Operating lease liabilities | $ 1,511 | $ 1,570 |
Other | 734 | 907 |
Total | $ 2,245 | $ 2,477 |
ACCOUNTS PAYABLE, ACCRUED EXP_5
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - Credit Facility - USD ($) | Jun. 03, 2024 | Jun. 30, 2024 | Feb. 14, 2023 |
Debt Instrument [Line Items] | |||
Interest rate (in percent) | 10% | ||
Revolving Loan Agreement | Line of Credit | Altisource Asset Management Corporation ("AAMC") | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Line of credit facility, accordion feature, increase limit | $ 3,000,000 | ||
Debt instrument, extended term (in years) | 1 year | ||
Debt instrument, maturity date, days after notice to terminate | 150 days | ||
Interest rate (in percent) | 12% | ||
Line of credit facility, commitment fee percentage (in percent) | 0.25% | ||
Long-term line of credit | $ 0 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Less: Current portion | $ (223,009) | $ 0 |
Long-term debt | 0 | 215,615 |
Senior secured term loans | ||
Debt Instrument [Line Items] | ||
Senior secured term loans | 228,354 | 224,085 |
Less: Debt issuance and amendment costs, net | (2,094) | (3,318) |
Less: Unamortized discount, net | (3,251) | (5,152) |
Net long-term debt | $ 223,009 | $ 215,615 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Feb. 14, 2024 USD ($) | Sep. 18, 2023 USD ($) | Mar. 29, 2023 | Feb. 14, 2023 USD ($) | Jun. 22, 2021 USD ($) | Apr. 30, 2018 USD ($) lender | Mar. 31, 2026 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) shares | |
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 0 | $ 20,000,000 | ||||||||||
Cash and cash equivalents (less than) | $ 29,702,000 | $ 35,041,000 | $ 32,522,000 | |||||||||
Warrants (in shares) | shares | 1,520,628 | 1,612,705 | ||||||||||
Debt issuance and amendment costs | $ 2,100,000 | $ 3,300,000 | ||||||||||
Accumulated amortization of debt issuance and amendment costs | $ 7,300,000 | 6,100,000 | ||||||||||
Altisource S.A.R.L. | Deer Park Road Management Company, LP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Noncontrolling ownership percentage (in percent) | 16% | 20% | ||||||||||
Warrant | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Warrants and Rights Outstanding | $ 8,100,000 | |||||||||||
Term B Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of consolidated excess cash flow requiring mandatory prepayments (in percent) | 0.50 | |||||||||||
April 3, 2018 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of incremental lenders | lender | 1 | |||||||||||
Accordion feature, potential increase in additional borrowings | $ 50,000,000 | |||||||||||
April 3, 2018 Credit Agreement | Term B Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | 412,000,000 | |||||||||||
Interest rate at the end of the period (in percent) | 14.16% | |||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Deer Park Road Management Company, LP | Altisource S.A.R.L. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Net long-term debt | $ 41,300,000 | $ 41,600,000 | ||||||||||
Interest received | $ 1,100,000 | $ 2,000,000 | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Altisource S.A.R.L. | Deer Park Road Management Company, LP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Warrants (in shares) | shares | 292,000 | |||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount of principal or interest if failed to pay considered as event of default | 5,000,000 | |||||||||||
Amount of debt which results in acceleration of debt if failed to pay considered as event of default | 5,000,000 | |||||||||||
Amount of unbonded, undischarged or unstayed debt under entry by court of one or more judgments for certain period to determine as event of default | $ 10,000,000 | |||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Variable Rate Component One, Paid In Cash | Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (in percent) | 4% | |||||||||||
Secured Debt | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 10,000,000 | $ 20,000,000 | 30,000,000 | |||||||||
PIK Component of Interest Rate (in percent) | 0.0375 | 0.0450 | ||||||||||
Secured Debt | Line of Credit | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of senior debt | $ 5,200,000 | |||||||||||
Secured Debt | Line of Credit | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 30,000,000 | |||||||||||
Secured Debt | Term B Loans | Adjusted Eurodollar Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (in percent) | 4% | |||||||||||
Secured Debt | Second Amended Credit Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 30,000,000 | |||||||||||
Secured Debt | Second Amended Credit Facility | Line of Credit | Variable Rate Component One, Paid In Cash | Secured Overnight Financing Rate (SOFR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (in percent) | 5% | |||||||||||
Secured Debt | Credit agreement, par paydown, greater than $30 million | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
PIK Component of Interest Rate (in percent) | 0.02 | |||||||||||
Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payment due date default period (in days) | 3 days | |||||||||||
Interest rate (in percent) | 10% | |||||||||||
Failure to perform period (in days) | 30 days | |||||||||||
Covenant threshold | $ 40,000,000 | |||||||||||
Borrowings under revolving credit facility | $ 0 | 0 | ||||||||||
Debt issuance costs, net | 100,000 | 200,000 | ||||||||||
Accumulated amortization | $ 400,000 | $ 400,000 | ||||||||||
Credit Facility | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
PIK Component of Interest Rate (in percent) | 0.0200 | |||||||||||
Cash and cash equivalents (less than) | $ 35,000,000 | |||||||||||
Credit Facility | April 3, 2018 Credit Agreement | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payment due date default period (in days) | 5 days | |||||||||||
Credit Facility | Second Revolver Amendment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | 4,900,000 | |||||||||||
Other expenses | 3,400,000 | |||||||||||
Credit Facility | Credit Facility Borrowings Through June 22, 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 15,000,000 | |||||||||||
Credit Facility | First Revolver Amendment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
PIK interest rate (in percent) | 0.0300 | |||||||||||
Upfront fee | $ 750,000 |
WARRANTS - Narrative (Details)
WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 18, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Feb. 14, 2024 | Feb. 14, 2023 | |
Warrant Liability [Line Items] | |||||||||
Repayments of long-term debt | $ 0 | $ 20,000 | |||||||
Price of warrant or right (in usd per share) | $ 0.01 | ||||||||
Warrant Shares based on Aggregate Paydowns | |||||||||
Warrant Liability [Line Items] | |||||||||
Gain (loss) on changes in fair value of warrant liability | $ (1,800) | $ (1,100) | |||||||
Line of Credit | Secured Debt | |||||||||
Warrant Liability [Line Items] | |||||||||
Repayments of long-term debt | $ 10,000 | $ 20,000 | $ 30,000 | ||||||
Line of Credit | Secured Debt | Maximum | |||||||||
Warrant Liability [Line Items] | |||||||||
Repayments of long-term debt | $ 30,000 | ||||||||
Line of Credit | Secured Debt | Common stock | |||||||||
Warrant Liability [Line Items] | |||||||||
Warrant shares (in shares) | 3,223,851 | ||||||||
Paydown Agreement | Credit Facility | |||||||||
Warrant Liability [Line Items] | |||||||||
Warrant shares (in shares) | 1,612,705 |
WARRANTS - Warrant Rollforward
WARRANTS - Warrant Rollforward (Details) | 6 Months Ended |
Jun. 30, 2024 shares | |
Class Of Warrant Or Right [Roll Forward] | |
Beginning balance, Outstanding (in shares) | 1,612,705 |
Exercised (in shares) | (92,077) |
Ending balance, Outstanding (in shares) | 1,520,628 |
WARRANTS - Fair Value of Warran
WARRANTS - Fair Value of Warrant Liability (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Feb. 14, 2023 | |
Warrant Shares based on Aggregate Paydowns | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance (in shares) | 2,578,743 | |||
Fair value measurement (in shares) | 2,578,743 | 2,578,743 | 2,578,743 | 3,223,851 |
Gain (loss) on changes in fair value of warrant liability | $ 1,800 | $ 1,100 | ||
Ending balance (in shares) | 2,578,743 | 2,578,743 | 2,578,743 | |
Expected Warrant Shares that will be exercisable on February 14, 2024 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance (in shares) | 1,612,705 | |||
Fair value measurement (in shares) | 1,612,705 | 1,612,705 | 1,612,705 | 1,612,705 |
Ending balance (in shares) | 1,612,705 | 1,612,705 | 1,612,705 | |
Warranty Liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance (in usd per share) | $ 4.59 | |||
Beginning balance Fair Value | $ 7,402 | |||
Fair value per Warrant Share (in usd per share) | $ 4.59 | $ 5.69 | $ 5.69 | $ 5.02 |
Fair value of warrants | $ 7,402 | $ 9,176 | $ 9,176 | $ 8,096 |
Gain (loss) on changes in fair value of warrant liability | $ (694) | $ 1,774 | ||
Ending balance (in usd per share) | $ 4.59 | $ 5.69 | $ 5.69 | |
Ending balance Fair Value | $ 7,402 | $ 9,176 | $ 9,176 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Income tax liabilities | $ 17,486 | $ 17,506 |
Operating lease liabilities | 1,215 | 1,950 |
Deferred revenue | 13 | 9 |
Other non-current liabilities | 64 | 45 |
Total | $ 18,778 | $ 19,510 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Assets: | |||
Cash and cash equivalents | $ 29,702 | $ 32,522 | $ 35,041 |
Restricted cash | 2,884 | 2,894 | $ 3,202 |
Short-term receivable | 3,126 | 3,201 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 29,702 | 32,522 | |
Restricted cash | 2,884 | 2,894 | |
Short-term receivable | 0 | 0 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Short-term receivable | 0 | 0 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Short-term receivable | 3,126 | 3,201 | |
Senior secured term loan | |||
Liabilities: | |||
Senior secured term loan | 228,354 | 224,085 | |
Senior secured term loan | Level 1 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loan | 0 | 0 | |
Senior secured term loan | Level 2 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loan | 114,177 | 177,027 | |
Senior secured term loan | Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loan | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 01, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Customer Concentration Risk | Onity Financial Corporation | Revenue | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Percentage of revenue from largest customer (in percent) | 44% | 40% | 44% | 42% | |
Pointillist, Inc. | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Proceeds from the sale of business | $ 3.5 |
SHAREHOLDERS_ EQUITY AND SHAR_3
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Sep. 07, 2023 USD ($) $ / shares shares | Feb. 14, 2023 USD ($) $ / shares shares | May 15, 2018 $ / shares shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) component $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2023 shares | |
Share-Based Compensation | ||||||||
Share-based compensation expense | $ | $ 800 | $ 1,200 | $ 3,057 | $ 2,687 | ||||
Estimated unrecognized compensation costs | $ | $ 2,700 | $ 2,700 | ||||||
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized | 1 year 1 month 28 days | |||||||
Outstanding (in shares) | 736,689 | 736,689 | 739,189 | |||||
Stock options granted (in shares) | 0 | 0 | ||||||
Common stock | Public Stock Offering | ||||||||
Share Repurchase Program | ||||||||
Shares issued in transaction (in shares) | 5,590,277 | 4,550,000 | ||||||
Price of stock (in usd per share) | $ / shares | $ 3.60 | $ 5 | ||||||
Net proceeds of sale of stock | $ | $ 18,400 | $ 20,500 | ||||||
Stock Options, Service-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 180,000 | 180,000 | ||||||
Stock Options, Service-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Stock Options, Service-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Stock Options, Market-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 96,000 | 96,000 | ||||||
Number of components of an award | component | 2 | |||||||
Allowable performance period before expiration date | 3 years | |||||||
Stock Options, Market-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Stock Options, Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Stock Options, Market-Based, Ordinary Performance | ||||||||
Share-Based Compensation | ||||||||
Percentage of awards | 67% | 67% | ||||||
Vesting threshold | 2 | 2 | ||||||
Stock Options, Market-Based, Ordinary Performance | Minimum | ||||||||
Share-Based Compensation | ||||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 20% | |||||||
Stock Options, Market-Based, Extraordinary Performance | ||||||||
Share-Based Compensation | ||||||||
Percentage of awards | 33% | 33% | ||||||
Stock Options, Market-Based, Extraordinary Performance | Minimum | ||||||||
Share-Based Compensation | ||||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 25% | |||||||
Stock Options, Performance-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 461,000 | 461,000 | ||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche One | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Two | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Three | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Four | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Allowable performance period before expiration date | 10 years | |||||||
Attainment above threshold performance levels, vesting percentage | 50% | |||||||
Stock Options, Performance-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 200% | |||||||
Restricted Stock and Restricted Stock Units, Service-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 1,521,000 | 1,521,000 | ||||||
Restricted Stock and Restricted Stock Units, Service-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 1 year | |||||||
Restricted Stock and Restricted Stock Units, Service-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 190,000 | 190,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche One | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Two | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Three | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 150% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 112,000 | 112,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 30 years | |||||||
Vesting percentage | 50% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 1 year | |||||||
Vesting percentage | 50% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 189,000 | 189,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 300% | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 1,554,000 | 891,000 | ||||||
Restricted share units granted, weighted average grant date fair value (in usd per share) | $ / shares | $ 2.52 | $ 4.82 | ||||||
Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 88,000 | 57,000 | ||||||
Restricted Stock Units (RSUs), Performance-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 88,000 | 57,000 | ||||||
Share Repurchase Program, Current | ||||||||
Share Repurchase Program | ||||||||
Number of shares of common stock authorized to be purchased (in shares) | 3,100,000 | |||||||
Percentage of outstanding shares authorized to be repurchased | 15% | |||||||
Minimum purchase price authorized (in usd per share) | $ / shares | $ 1 | |||||||
Maximum purchase price authorized (in usd per share) | $ / shares | $ 25 | |||||||
Period that shares may be repurchased, from the date of approval | 5 years | |||||||
Remaining number of shares available for repurchase under the plan (in shares) | 3,100,000 | 3,100,000 | ||||||
Number of shares of common stock purchased (in shares) | 0 | 0 | ||||||
Authorized amount | $ | $ 115,000 | $ 115,000 |
SHAREHOLDERS_ EQUITY AND SHAR_4
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Schedule of Grant Date Fair Value of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted average grant date fair value of stock options granted per share (in usd per share) | $ 0 | $ 0 |
Intrinsic value of options exercised | $ 0 | $ 0 |
Grant date fair value of stock options that vested | $ 83 | $ 83 |
SHAREHOLDERS_ EQUITY AND SHAR_5
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Summary of Activity Related to Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number of options | |||
Outstanding at the beginning of the period (in shares) | 739,189 | ||
Granted (in shares) | 0 | 0 | |
Forfeited (in shares) | (2,500) | ||
Outstanding at the end of the period (in shares) | 736,689 | 739,189 | |
Exercisable at the end of the period (in shares) | 549,450 | ||
Weighted average exercise price | |||
Outstanding at the beginning of the period (in usd per share) | $ 27.04 | ||
Granted (in usd per share) | 0 | ||
Forfeited (in usd per share) | 28.95 | ||
Outstanding at the end of the period (in usd per share) | 27.04 | $ 27.04 | |
Exercisable at the end of the period (in usd per share) | $ 25.05 | ||
Weighted average contractual term (in years) | |||
Weighted average contractual term | 3 years 4 months 6 days | 4 years 9 months 29 days | |
Exercisable at the end of the period | 2 years 9 months 29 days | ||
Aggregate intrinsic value (in thousands) | |||
Aggregate intrinsic value, beginning balance (in dollars) | $ 0 | ||
Aggregate intrinsic value, ending balance (in dollars) | 0 | $ 0 | |
Exercisable at the end of the period (in dollars) | $ 0 |
SHAREHOLDERS_ EQUITY AND SHAR_6
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - RSU (Details) - Restricted Stock And Restricted Stock Units | 6 Months Ended |
Jun. 30, 2024 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at the beginning of period (in shares) | 1,262,742 |
Granted (in shares) | 1,554,003 |
Issued (in shares) | (522,126) |
Forfeited/canceled (in shares) | (282,178) |
Outstanding at the end of period (in shares) | 2,012,441 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) category | Jun. 30, 2023 USD ($) | |
Related Party Transaction [Line Items] | ||||
Categories of revenue | category | 3 | |||
Revenue (less than) | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 |
Revenue recognized that was included in the contract liability at the beginning of the period | 900 | 900 | 2,200 | 2,800 |
Service revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue (less than) | 36,863 | 33,173 | 73,754 | 70,244 |
Related Party | Aldridge Pite | Service revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue (less than) | $ 100 | $ 100 | $ 100 | $ 100 |
REVENUE - Schedule of Component
REVENUE - Schedule of Components of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 |
Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 36,863 | 33,173 | 73,754 | 70,244 |
Reimbursable expenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,223 | 2,049 | 4,760 | 4,359 |
Non-controlling interests | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 35 | $ 13 | $ 76 | $ 93 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 |
Revenue recognized when services are performed or assets are sold | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34,208 | 30,800 | 68,301 | 64,735 |
Revenue related to technology platforms and professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,690 | 2,386 | 5,529 | 5,602 |
Reimbursable expenses revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,223 | 2,049 | 4,760 | 4,359 |
Servicer and Real Estate | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,124 | 26,848 | 62,626 | 58,793 |
Servicer and Real Estate | Revenue recognized when services are performed or assets are sold | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,494 | 22,538 | 52,891 | 49,091 |
Servicer and Real Estate | Revenue related to technology platforms and professional services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,531 | 2,380 | 5,215 | 5,588 |
Servicer and Real Estate | Reimbursable expenses revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,099 | 1,930 | 4,520 | 4,114 |
Origination | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,997 | 8,387 | 15,964 | 15,903 |
Origination | Revenue recognized when services are performed or assets are sold | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,714 | 8,262 | 15,410 | 15,644 |
Origination | Revenue related to technology platforms and professional services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 159 | 6 | 314 | 14 |
Origination | Reimbursable expenses revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 124 | $ 119 | $ 240 | $ 245 |
COST OF REVENUE - Schedule of C
COST OF REVENUE - Schedule of Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cost of Revenue [Abstract] | ||||
Outside fees and services | $ 14,321 | $ 14,057 | $ 28,767 | $ 29,151 |
Compensation and benefits | 7,343 | 9,281 | 14,456 | 18,982 |
Technology and telecommunications | 2,344 | 3,865 | 5,230 | 7,262 |
Reimbursable expenses | 2,223 | 2,049 | 4,760 | 4,359 |
Depreciation and amortization | 173 | 451 | 356 | 906 |
Total | $ 26,404 | $ 29,703 | $ 53,569 | $ 60,660 |
COST OF REVENUE - Narrative (De
COST OF REVENUE - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Reimbursable expenses | $ 2,223,000 | $ 2,049,000 | $ 4,760,000 | $ 4,359,000 | |
Accounts payable and accrued expenses | 30,044,000 | 30,044,000 | $ 30,088,000 | ||
Related Party | Aldridge Pite | |||||
Related Party Transaction [Line Items] | |||||
Reimbursable expenses | 200,000 | $ 300,000 | 400,000 | $ 500,000 | |
Accounts payable and accrued expenses | $ 0 | $ 0 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Selling, General and Administrative Expense [Abstract] | ||||
Compensation and benefits | $ 4,510 | $ 5,376 | $ 10,352 | $ 11,406 |
Professional services | 2,082 | 2,275 | 4,613 | 3,846 |
Amortization of intangible assets | 1,270 | 1,280 | 2,540 | 2,560 |
Occupancy related costs | 1,050 | 1,216 | 1,975 | 2,658 |
Marketing costs | 539 | 559 | 1,047 | 941 |
Depreciation and amortization | 103 | 204 | 216 | 448 |
Other | 1,080 | 1,431 | 2,743 | 2,576 |
Total | $ 10,634 | $ 12,341 | $ 23,486 | $ 24,435 |
OTHER INCOME (EXPENSE), NET (De
OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Interest income (expense) | $ 206 | $ 315 | $ 429 | $ 749 |
Other, net | (67) | 75 | 1,352 | 1,201 |
Total | $ 139 | $ 390 | $ 1,781 | $ 1,950 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ (706) | $ (639) | $ (1,428) | $ (2,168) |
LOSS PER SHARE - Narrative (Det
LOSS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Anti-dilutive securities | ||||
Weighted average common shares outstanding, basic (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Weighted average common shares outstanding, diluted (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 2,500 | 4,100 | 2,200 | 3,500 |
Employee and Nonemployee Stock Options, Restricted Stock and Restricted Stock Units Whose Impacts are Anti-Dilutive | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 700 | 2,800 | 700 | 2,200 |
Options Whose Exercise Price is Greater than Average Market Price | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 700 | 300 | 600 | 300 |
Options and Restricted Shares Issuable upon Achievement of Certain Market and Performance Criteria That Has Not Been Met | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 1,100 | 1,000 | 900 | 1,000 |
Penny Warrant | ||||
Anti-dilutive securities | ||||
Weighted average common shares outstanding, basic (in shares) | 1,500 | 1,500 |
LOSS PER SHARE - Schedule of Ba
LOSS PER SHARE - Schedule of Basic and Diluted Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Altisource | $ (8,307) | $ (18,850) | $ (17,505) | $ (31,797) |
Weighted average common shares outstanding, basic (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Weighted average common shares outstanding, diluted (in shares) | 28,551 | 20,840 | 28,366 | 19,648 |
Loss per share: | ||||
Basic (in usd per share) | $ (0.29) | $ (0.90) | $ (0.62) | $ (1.62) |
Diluted (in usd per share) | $ (0.29) | $ (0.90) | $ (0.62) | $ (1.62) |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Concentration Risk | ||||||
Sublease income | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.1 | ||
Amounts held in escrow and trust accounts | $ 24.8 | $ 24.8 | $ 21.6 | |||
Minimum | ||||||
Concentration Risk | ||||||
Lease term (in years) | 1 year | 1 year | ||||
Maximum | ||||||
Concentration Risk | ||||||
Lease term (in years) | 6 years | 6 years | ||||
Onity Financial Corporation | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Percentage of revenue from largest customer (in percent) | 44% | 40% | 44% | 42% | ||
Highly Correlated - Onity | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Percentage of revenue from largest customer (in percent) | 6% | 7% | ||||
RITM | Revenue | Customer Concentration Risk | Onity Financial Corporation | ||||||
Concentration Risk | ||||||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 15% | |||||
Percentage of delinquent loans Onity services (in percent) | 0.66 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Term and Assumption (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining lease term (in years) | 1 year 10 months 9 days | 2 years 6 months 29 days |
Weighted average discount rate | 6.44% | 5.91% |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Cash used in operating activities for amounts included in the measurement of lease liabilities | $ 483 | $ 591 | $ 966 | $ 1,131 |
Short-term (twelve months or less) lease costs | 3 | 430 | 21 | 849 |
Selling, general and administrative expense | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs: | $ 468 | $ 530 | $ 943 | $ 1,085 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 853 |
2025 | 1,404 |
2026 | 638 |
2027 | 0 |
2028 | 0 |
Total lease payments | 2,895 |
Less: interest | (169) |
Present value of lease liabilities | $ 2,726 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
SEGMENT REPORTING - Summary (De
SEGMENT REPORTING - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
SEGMENT REPORTING | |||||
Revenue | $ 39,121 | $ 35,235 | $ 78,590 | $ 74,696 | |
Cost of revenue | 26,404 | 29,703 | 53,569 | 60,660 | |
Gross profit (loss) | 12,717 | 5,532 | 25,021 | 14,036 | |
Selling, general and administrative expenses | 10,634 | 12,341 | 23,486 | 24,435 | |
Income (loss) from operations | 2,083 | (6,809) | 1,535 | (10,399) | |
Total other income (expense), net | (9,649) | (11,389) | (17,536) | (19,137) | |
Income (loss) before income taxes and non-controlling interests | (7,566) | (18,198) | (16,001) | (29,536) | |
Total assets: | |||||
Total assets: | 146,557 | 146,557 | $ 154,858 | ||
Corporate and Others | |||||
SEGMENT REPORTING | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of revenue | 1,332 | 3,647 | 3,232 | 7,425 | |
Gross profit (loss) | (1,332) | (3,647) | (3,232) | (7,425) | |
Selling, general and administrative expenses | 6,493 | 7,353 | 14,288 | 15,420 | |
Income (loss) from operations | (7,825) | (11,000) | (17,520) | (22,845) | |
Total other income (expense), net | (9,648) | (11,389) | (17,535) | (19,137) | |
Income (loss) before income taxes and non-controlling interests | (17,473) | (22,389) | (35,055) | (41,982) | |
Total assets: | |||||
Total assets: | 40,596 | 40,596 | 46,892 | ||
Servicer and Real Estate | Operating Segments | |||||
SEGMENT REPORTING | |||||
Revenue | 31,124 | 26,848 | 62,626 | 58,793 | |
Cost of revenue | 18,716 | 18,038 | 37,848 | 37,763 | |
Gross profit (loss) | 12,408 | 8,810 | 24,778 | 21,030 | |
Selling, general and administrative expenses | 2,395 | 2,638 | 5,493 | 4,939 | |
Income (loss) from operations | 10,013 | 6,172 | 19,285 | 16,091 | |
Total other income (expense), net | (1) | 0 | (1) | 0 | |
Income (loss) before income taxes and non-controlling interests | 10,012 | 6,172 | 19,284 | 16,091 | |
Total assets: | |||||
Total assets: | 57,411 | 57,411 | 57,535 | ||
Origination | Operating Segments | |||||
SEGMENT REPORTING | |||||
Revenue | 7,997 | 8,387 | 15,964 | 15,903 | |
Cost of revenue | 6,356 | 8,018 | 12,489 | 15,472 | |
Gross profit (loss) | 1,641 | 369 | 3,475 | 431 | |
Selling, general and administrative expenses | 1,746 | 2,350 | 3,705 | 4,076 | |
Income (loss) from operations | (105) | (1,981) | (230) | (3,645) | |
Total other income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes and non-controlling interests | (105) | $ (1,981) | (230) | $ (3,645) | |
Total assets: | |||||
Total assets: | $ 48,550 | $ 48,550 | $ 50,431 |