UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K


(Mark One)
☑			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-34354

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

(Exact name of registrant as specified in its Charter)


Luxembourg						98-0554932
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

33, Boulevard Prince Henri

L-1724 Luxembourg

Grand Duchy of Luxembourg

(352) 2060 2055

(Address and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value per share

ASPS

~~NASDAQ~~The ~~Global~~Nasdaq ~~Select~~Stock Market LLC

Cash Exercise Stakeholder Warrants

ASPSZ

The Nasdaq Stock Market LLC

Net Settle Stakeholder Warrants

ASPSW

The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐			Accelerated filer ☐
Non-accelerated filer ☑			Smaller reporting company ☑
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☐ No ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, ~~2024~~2025 was $2132,~~905~~444,~~027~~904 based on the closing share price as quoted on the NASDAQ Global Select Market on that day and the assumption that all directors and executive officers of the Company are affiliates. This determination of affiliate status is not necessarily a conclusive determination for any other purpose.

As of ~~March~~February 2526, ~~2025~~2026, there were 8711,~~582~~276,~~129~~236 outstanding shares of the registrant’s common stock ~~(excluding 547,637 shares held as treasury stock)~~.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement to be filed subsequent to the date hereof with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s Annual Meeting of Shareholders to be held on May 2120, ~~2025~~2026 are incorporated by reference into Part III of this report. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the conclusion of the registrant’s fiscal year ended December 31, ~~2024~~2025.

Table of ~~Contents~~Content

TABLE OF CONTENTS

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

FORM 10-K

			Page
PART I
	ITEM 1.	BUSINESS	3
	ITEM 1A.	RISK FACTORS	10
	ITEM 1B.	UNRESOLVED STAFF COMMENTS	3029
	ITEM 1C.	CYBERSECURITY	3029
	ITEM 2.	PROPERTIES	3130
	ITEM 3.	LEGAL PROCEEDINGS	31
	ITEM 4.	MINE SAFETY DISCLOSURES	31
PART II
	ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	32
	ITEM 6	[RESERVED]	32
	ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	33
	ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	5052
	ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	5153
	ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	8793
	ITEM 9A.	CONTROLS AND PROCEDURES	8793
	ITEM 9B.	OTHER INFORMATION	8793
	ITEM 9C.	DISCLOSURES REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	8793
PART III
	ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	8894
	ITEM 11.	EXECUTIVE COMPENSATION	8894
	ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	8894
	ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	8894
	ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	8894
PART IV
	ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	8995
	SIGNATURES		9298

Table of ~~Contents~~Content

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K and certain information incorporated herein by reference contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future financial/operating performance or financial condition. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “seek,” “believe,” “potential” or “continue” or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I “Risk Factors.” We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based.

PART I

Except as otherwise indicated or unless the context requires otherwise “Altisource,” the “Company,” “we,” “us” or “our” mean Altisource Portfolio Solutions S.A., a Luxembourg société anonyme, or public limited liability company, and its subsidiaries.

ITEM 1. BUSINESS

The Company

Altisource® 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 have prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Reportable Segments

Our reportable segments are as follows:

Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. Within the Servicer and Real Estate segment we provide:

Solutions

Our Solutions business includes property preservation and inspection services, ~~title~~foreclosure ~~insurance~~trustee ~~(as an agent) and settlement~~ services, residential real estate ~~valuation~~renovation services, ~~foreclosure trustee services,~~ residential and commercial construction inspection and risk mitigation services, title insurance (as an agent) and ~~residential~~settlement services, and real estate ~~renovation~~valuation services.

Marketplace

Our Marketplace business includes the Hubzu® online real estate auction platform, real estate brokerage and asset management services.

Technology and software-as-a-service (“SaaS”) Products

Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”) and investor homes, short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single and multi-family rental data, analytics and rent-based valuation solution), and REALSynergy® (a commercial loan servicing platform)~~, and NestRangeTM (a single family automated valuation model and analytics solution)~~.

Table of ~~Contents~~Content

Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Within the Origination segment we provide:

Solutions

Our Solutions business includes title insurance (as an agent) and settlement services, real estate valuation services, loan fulfillment and insurance services.

Lenders One

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”), and certain loan manufacturing and capital markets ~~services~~solutions provided to the members of the Lenders One cooperative.

Solutions

Our Solutions business includes loan fulfillment services, real estate valuation services, title insurance (as an agent) and settlement services, and insurance services.

Technology and SaaS Products

Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process), and TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment and pre and post-close quality control)~~, and ADMS (a document management and data analytics delivery platform)~~.

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.

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One. Lenders One is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net income (loss) to arrive at net income (loss) attributable to Altisource.

~~2024~~2025 Highlights ~~and Certain Subsequent Events~~

Company, Corporate and Financial:

•Grew service revenue by $1310.89 million, or 107%, to $~~150~~161.43 million in ~~2024~~2025 compared to ~~2023~~2024

•Full year ~~2024~~2025 ~~total~~loss ~~Company~~before income ~~(loss)~~taxes ~~from~~and ~~operations~~non-controlling interest of $314.21 million was an $2018.07 million ~~higher~~improvement ~~than~~compared ~~2023 due~~ to ~~(1)~~full ~~improving~~year ~~operating income as a percentage of service revenue in the Servicer and Real Estate and Origination segments (together “Business Segments”) to 25.3% in~~ 2024 from 19.1% in 2023, and (2) reducing Corporate and Others operating loss as a percentage of total Company service revenue to (23.1)% in 2024 from (31.4)% in 2023, primarily through efficiency initiatives and cost savings measures and service revenue growth

•~~Ended~~Full ~~the~~ year ~~with~~2025 net income attributable to Altisource of $291.86 million ofwas ~~cash~~a ~~and~~$37.3 ~~cash~~million ~~equivalents~~improvement compared to the full year 2024

•OnFull ~~February 19,~~year 2025, ~~the~~diluted ~~Company~~earnings ~~executed~~per ~~and~~share ~~closed an exchange transaction with 100%~~ of ~~lenders under the Company’s senior secured term loans whereby the lenders exchanged the Company’s senior secured term loans with an outstanding balance of~~ $~~232~~0.815 ~~million~~was ~~for~~ a $~~160~~10.014 ~~million~~improvement ~~new~~compared ~~first~~to ~~lien loan and~~ the ~~issuance~~full ofyear approximately 58.2 million common shares of Altisource (the “Term Loan Exchange Transaction”); the new first lien loan is comprised of a $110 million term loan and a $50 million non-interest bearing exit fee which is reduced on a pro-rata basis with the repayment of the term loan2024

•InEnded ~~connection with~~ the ~~Term~~year ~~Loan~~with Exchange Transaction, Altisource will be issuing transferable warrants to holders as of February 14, 2025 of the Company’s (i) common stock, (ii) restricted share units and (iii) outstanding penny warrants, to purchase approximately 114$26.56 million ~~shares~~ of ~~Altisource~~cash ~~common~~and ~~stock~~cash for $1.20 per share (the “Stakeholder Warrants”); once issued, the Stakeholder Warrants will provide Stakeholders with the ability to purchase approximately 3.25 shares of Altisource common stock for each share of or right to common stock heldequivalents

•On February 19, 2025, ~~Altisource~~the ~~also~~Company executed and closed onan exchange transaction with 100% of lenders under the Company’s senior secured term loans whereby the lenders exchanged the Company’s senior secured term loans with an outstanding balance of $232.8 million for a $12160.50 million ~~super~~new ~~senior~~first ~~credit~~lien ~~facility~~loan toand ~~fund~~the ~~transaction~~issuance ~~costs~~of ~~related~~approximately to7.3 ~~the~~million ~~Term~~common ~~Loan~~shares of Altisource (collectively, the “Debt Exchange Transaction”); the new first lien loan is comprised of a $110.0 million term loan and ~~for~~a ~~general~~$50.0 ~~corporate~~million ~~purposes~~non-interest bearing exit fee which is reduced on a pro-rata basis with the repayment of the term loan

•On February 19, 2025, Altisource also executed and closed on a $12.5 million super senior credit facility to fund transaction costs related to the Debt Exchange Transaction and for general corporate purposes (the “Super Senior Facility Transaction”)

•On April 3, 2025, in connection with the Debt Exchange Transaction, the Company distributed 70.5 million warrants to purchase approximately 14.3 million shares of Altisource common stock for $9.5998 per share

•On a pro forma basis, the Debt Exchange Transaction and the Super Senior Facility Transaction (a) reduce annual cash and payment-in-kind interest by approximately $18 million to $13 million, (b) reduce annual GAAP interest expense by $23 million to approximately $9.5 million and (c) extend the maturity dates of the Company’s senior secured debt

Table of ~~Contents~~Content

•During the second quarter of 2025, Management concluded that certain of its India tax positions for several years were more likely than not to be sustained based on current quarter developments. As a result, the Company recognized a net income tax benefit of $17.7 million, comprised of a $9.6 million reversal of its reserve for uncertain tax positions related to its India operations and a $9.0 million reversal of associated accrued interest, partially offset by related Mauritius Income tax expense of $0.9 million

•On May 28, 2025, Altisource effected a consolidation of its shares (also known as a reverse stock split) at a ratio of 1-for-8 (the “Share Consolidation”). As a result of the Share Consolidation, every eight shares of common stock outstanding immediately prior to effectiveness of the Share Consolidation were combined and converted into one share of common stock, reducing the total number of issued and outstanding shared from 88,129,766 to 11,116,220. No fractional shares were issued in connection with the Share Consolidation. Instead, shareholders received cash in lieu of fractional shares, based on the closing price of Altisource’s common stock on May 27, 2025. All share and per share amounts and exercise prices of stock options and warrants in this Form 10-K have been retroactively adjusted to reflect the Share Consolidation for all periods presented

Business and Industry:

•InGenerated ~~the~~2025 ~~face~~sales ofwins ~~serious~~which ~~market~~we ~~headwinds~~estimate ~~for~~represent ~~both~~potential ~~Business~~annualized ~~Segments,~~ service revenue inon a stabilized basis of $20.6 million for the ~~Servicer~~servicer and Real Estate segment ~~increased~~and ~~by 11% to~~ $~~120~~20.9 million ~~and~~for ~~service revenue in~~ the Origination segment ~~increased by 6% to $30 million~~

•~~Improved~~Primarily ~~income~~ from ~~operations~~fourth inquarter ~~the~~2025 ~~Business~~sales ~~Segments~~wins byin ~~$12.0~~the ~~million~~Servicer toand ~~$38.0~~Real ~~million~~Estate insegment, ~~2024~~significantly ~~compared~~grew toHubzu ~~$26.1~~foreclosure ~~million~~auction inand ~~2023;~~REO ~~improved~~inventory, ~~income~~reducing ~~from~~the ~~operations as a~~ percentage of ~~service~~total ~~revenue~~Hubzu inassets ~~the~~from ~~Business~~Rithm ~~Segments~~Capital toCorp, ~~25.3%~~(“Rithm”) into ~~2024 from 19~~7.17% inof ~~2023;~~total ~~improvements~~inventory ~~were~~as ~~primarily~~of ~~through~~February ~~scale~~15, ~~benefits and efficiency and cost cutting initiatives~~2026

•Ended 2024 with a weighted average sales pipeline between $38 million and $47 million of potential estimated revenue on a stabilized basis based upon forecasted probability of closing (comprised of between $26 million and $33 million in the Servicer and Real Estate segment and between $12 million and $15 million in the Origination segment)


(in thousands)	February 15, 2026	September 30, 2025	% Change
Foreclosure Auction Inventory(5)	10.1	4.0	154	%
REO Inventory - Customers other than Rithm	2.4	0.7	230	%
REO Inventory - Rithm	1.0	1.0	5	%
Total Hubzu Inventory	13.5	5.7	137	%

•~~Generated~~Ended ~~2024~~2025 with a weighted average sales ~~wins~~pipeline ~~which~~between we$30.4 ~~estimate~~million ~~represent~~and $38.0 million of potential ~~annualized~~estimated ~~service~~annual revenue on a stabilized basis based upon forecasted probability of closing (comprised of between $2517.81 million ~~for~~and $21.4 million in the ~~servicer~~Servicer and Real Estate segment and between $13.2 million and $16.6 million ~~for~~in the Origination segment)

•Industrywide foreclosure initiations were 625% ~~lower~~higher in ~~2024~~2025 compared to ~~2023~~the same period in 2024 (~~and~~although 35still 19% lower than the same pre-COVID-19 period in 2019)

•Industrywide foreclosure sales were 1417% ~~lower~~higher in ~~2024~~2025 compared to ~~2023~~the same period in 2024 (~~and~~although 53still 45% lower than the same pre-COVID-19 period in 2019)

•Industrywide mortgage origination unit volume increased by 2019% in ~~2024~~2025 compared to ~~2023~~2024, comprised of a 2% decline in purchase origination and a ~~112~~92% increase in refinance origination

•Industrywide seriously delinquent mortgage rate (90+ day past due and loans in foreclosure) increased to 1.4% in December 2024 compared to 1.3% in December 2023

Customers

Overview

Our customers include large financial institutions, government-sponsored enterprises (“GSEs”), banks, asset managers, servicers, real estate and mortgage investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, correspondent and private money lenders.

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 year ended December 31, ~~2024~~2025, Onity was our largest customer, accounting for 4442% 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 years ended December 31, 2024 and 2023, we recognized revenue from Onity of $70.4 million and $63.2 million, respectively. Revenue from Onity as a percentage of segment and consolidated revenue was as follows:

	2024		2023
Servicer and Real Estate	55	%	55	%
Origination	0	%	0	%
Corporate and Others	—	%	—	%
Consolidated revenue	44	%	44	%

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 years ended December 31, 2024 and 2023, we recognized $9.6 million and $9.2 million, 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.

Table of ~~Contents~~Content

AsRevenue offrom ~~December 31,~~Onity ~~2024,~~primarily ~~accounts~~consists ~~receivable~~of revenue earned from ~~Onity~~the ~~totaled~~loan ~~$4.4~~portfolios ~~million,~~serviced ~~$3.1~~and ~~million~~subserviced ofby ~~which~~Onity ~~was~~when ~~billed~~Onity engages us as the service provider, and ~~$1.3~~revenue ~~million~~earned ofdirectly ~~which~~from ~~was~~Onity, ~~unbilled~~pursuant to the Onity Services Agreements. AsFor ofthe years ended December 31, ~~2023~~2025 and 2024, ~~accounts~~we ~~receivable~~recognized revenue from Onity ~~totaled~~of $72.3 million and $70.4 million, $2respectively.2 Revenue ~~million~~from ofOnity ~~which~~as ~~was~~a ~~billed~~percentage ~~and~~of ~~$1.2~~segment ~~million~~and ofconsolidated ~~which~~revenue was ~~unbilled.~~as follows:


	2025		2024

Servicer and Real Estate	54	%	55	%
Origination	0	%	0	%
Corporate and Others	—	%	—	%
Consolidated revenue	42	%	44	%

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 years ended December 31, 2025 and 2024, we recognized $7.7 million and $9.6 million, 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 December 31, 2025, accounts receivable from Onity totaled $5.1 million, $2.6 million of which was billed and $2.5 million of which was unbilled. As of December 31, 2024, accounts receivable from Onity totaled $4.4 million, $3.1 million of which was billed and $1.3 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 December 31, ~~2024~~2025, Onity reported that approximately 1410% of loans serviced and subserviced by Onity (measured in unpaid principal balance (“UPB”)) and approximately 6350% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”). In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreements with Onity effective January 31, 2026.

Rithm ~~purchases~~purchased brokerage services for 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 “Rithm Brokerage Agreement”) ~~with~~through ~~terms~~August ~~extending~~2025. The ~~through~~Rithm Brokerage Agreement expired on August 31, 2025. At Rithm’s discretion, Altisource has continued to manage REO and receive referrals with limited exceptions from portfolios subject to the Rithm Brokerage Agreement despite the expiration of the Rithm Brokerage Agreement. In addition, Rithm also purchases property inspection, preservation and other services from us.

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized revenue from Rithm of $24.32 million and $2.83 million, respectively, under the Rithm Brokerage Agreement. For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized additional revenue of $109.86 million and $1210.68 million, respectively, relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider.

Other

Our services are provided to customers predominantly located in the United States.

Sales and Marketing

We believe our sales and marketing team has extensive relationship management and industry experience. These individuals cultivate and maintain relationships throughout the industry sectors we serve. We sell our suite of services to mortgage servicers, mortgage originators, GSEs, buyers and sellers of homes for investment use and financial services firms.

Our primary sales and marketing focus areas are to:

•Expand relationships with existing customers by cross-selling additional services and ~~growing~~increasing ~~the~~market ~~volume~~share of existing services we provide. We believe our customer relationships represent meaningful growth opportunities for us.

•Develop new customer relationships by leveraging our comprehensive suite of services, performance and controls. We believe there are meaningful growth opportunities to sell our suite of services to new customers.

Table of Content

Given the highly regulated nature of the industries we serve, and the comprehensive purchasing process that our institutional customers and prospects follow, the time and effort we spend in expanding relationships or winning new relationships is significant. For example, it can often take more than one year from the request for proposal or qualified lead stage to the selection of Altisource as a service provider. Furthermore, following the selection of Altisource, it is not unusual for it to take an additional six to twelve months or more to negotiate the services agreement(s), complete the implementation procedures and begin receiving referrals.

Intellectual Property and Data

We rely on a combination of contractual restrictions, internal security practices, trademarks and copyrights to establish and protect our trade secrets, intellectual property, software, technology and expertise. We also own or, as we deem necessary and appropriate, have obtained licenses from third parties to intellectual property relating to our services, processes and businesses. These intellectual property rights are important factors in the success of our businesses.

As of December 31, ~~2024~~2025, we hold registered trademarks in a number of jurisdictions including the United States, the European Union (“EU”), India and four other jurisdictions. These trademarks are generally renewable indefinitely, subject to continued use in commerce.

We strive to actively protect our rights and intend to continue our policy of taking ~~the~~ measures we deem reasonable and necessary to develop and protect our trademarks, copyrights, trade secrets and other intellectual property rights.

In addition, we may make use of data in connection with certain of our services. This data generally relates to mortgage information, real property information and consumer information. We gather this data from a variety of third party sources, including from governmental entities and, subject to licensed usage rights, we use this data in connection with the delivery of certain of our services, including combining it with proprietary data we generate to further enhance data and metrics in connection with our services.

Table of Contents

including from governmental entities and, subject to licensed usage rights, we use this data in connection with the delivery of certain of our services, including combining it with proprietary data we generate to further enhance data and metrics in connection with our services.

Market and Competition

We sell our suite of services to mortgage servicers, mortgage originators, GSEs, buyers and sellers of homes for investment use and financial services firms. The mortgage and real estate markets are very large and are influenced by macroeconomic factors such as credit availability, interest rates, home prices, inflation, unemployment rates, consumer confidence, natural disasters and pandemics, and responses to such factors.

The markets for services provided to mortgage servicers and mortgage originators are highly competitive and generally consist of national companies, in-house providers and a large number of regional and local providers. We typically compete based upon product and service awareness and offerings, product performance and service delivery, quality and control environment, technology integration and support, national coverage, price, financial strength, reputation and customer service.

The markets for services provided to buyers and sellers of homes for investment are highly competitive and generally consist of several national companies, a large number of regional and local providers and start-up companies. We typically compete based upon product and service awareness and offerings, product performance and service delivery, national coverage, ease of transacting, price, quality and control environment, technology integration and support, reputation, customer service and personal service.

~~Our competitors may have greater financial resources, brand recognition, alternative or disruptive products and technology and other competitive advantages.~~ We cannot determine our market share with certainty, but believe for mortgage servicers we have a modest share of the market, and for the others we have a relatively small market share.

Debt and Equity Transactions

On ~~December~~February 1618, ~~2024~~2025, the Company’s shareholders approved an increase in the number of authorized shares of Altisource Portfolio Solutions S.A. ~~and~~common ~~the~~stock ~~Borrower~~(“common ~~entered~~stock”) ~~into~~from ~~that~~100 ~~certain~~million ~~Transaction~~to ~~Support~~250 ~~Agreement~~million, ~~dated~~a asdecrease ofin ~~December~~the ~~16,~~par ~~2024~~value (of the ~~“Transaction~~Company’s ~~Support~~common ~~Agreement”),~~stock ~~with~~from ~~certain~~$1.00 ~~holders~~to of$0.01 and an increase the ~~Company’s~~number ~~SSTL~~of shares of common stock reserved for issuance under the ~~Amended~~Equity ~~Credit~~Plan ~~Agreement~~from approximately 1.5 million to approximately 2.0 million.

The transactions described below (the “Transactions”) were conducted pursuant to the Transaction Support Agreement.

On February 13, 2025, the Company granted approximately 4.6 million restricted share units (“RSUs”) (at a weighted average grant date fair value of $1.06 per share) under the Company’s 2009 Equity Incentive Plan (the “Equity Plan”) to senior management in connection with the Transactions.

On February 18, 2025, the Company’s shareholders approved an increase in the number of authorized shares of Altisource Portfolio Solutions S.A. common stock (“common stock”) from 100.0 million to 250.0 million, a decrease in the par value of the Company’s common stock from $1.00 to $0.01 and an increase the number of shares of common stock reserved for issuance under the Equity Plan from approximately 11.7 million to approximately 16.3 million.

On February 18, 2025, the Company’s shareholders also approved proposals to enable, among other things, an issuance of warrants (the “Warrant Distribution”) to purchase approximately 114.5 million shares of common stock for $1.20 per share, subject to adjustment (the “Stakeholder Warrants”) to record and beneficial holders of the following securities of Altisource Portfolio Solutions S.A. (collectively, “Stakeholders”): (i) shares of common stock, (ii) RSUs, and (iii) warrants to purchase shares of common stock at an exercise price of $0.01 per share granted on February 14, 2023 (the “Penny Warrants”), in each case, as of 5:00 p.m., New York City time, on February 14, 2025 (such date and time, the “Distribution Record Date”). Subject to the right of the Board of Directors to change the Distribution Record Date, the issuance of Stakeholder Warrants shall occur on a date to be subsequently determined by the Board of Directors that will be within 60 days after the Distribution Record Date (i.e., by April 15, 2025). Fifty percent of the Stakeholder Warrants will expire on April 2, 2029 and require settlement through the cash payment to the Company of the exercise price of such Stakeholder Warrant (“Cash Exercise Stakeholder Warrants”). Fifty percent of the Stakeholder Warrants will expire on April 30, 2032 and require settlement through the forfeiture of shares of common stock to the Company equal to the exercise price of such Stakeholder Warrants. Pursuant to the Warrant

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Distribution, each Stakeholder is expected to receive: one Cash Exercise Stakeholder Warrant to purchase 1.625 shares of our common stock and one Net Settle Stakeholder Warrant to purchase 1.625 shares of our common stock for each (a) share of common stock held as of the Distribution Record Date, (b) RSU held as of the Distribution Record Date and (c) share of common stock that could be acquired upon exercise of Penny Warrants held as of the Distribution Record Date. The Stakeholder Warrants are expected to be exercisable on the later of (i) 90 days after their issuance and (ii) first date on which the VWAP (as defined in the Warrant Agent Agreement for the Stakeholder Warrants (the “Warrant Agent Agreement”)) of the common stock equals or exceeds the Implied Per Share Exercise Price (as such term is defined in the Warrant Agent Agreement) of the Stakeholder Warrants, which is expected to initially be $1.20, for a period of fifteen consecutive trading days (the “VWAP Condition”). The exercise price of the Stakeholder Warrants is $1.95 per Stakeholder Warrant.

On February 18, 2025, the Lenders exercised Penny Warrants for approximately 1.5 million shares of common stock.

On February 19, 2025, Altisource Portfolio Solutions S.A. and the Borrower entered into agreements with 100% of the lenders under the SSTL (the “Lenders”) under the Amended Credit Agreement. Under these agreements, the Lenders exchanged the SSTL with an outstanding balance of $232.8 million for a $160.0 million new first lien loan facility (the “New Facility”) and 58.2 million shares of common stock (the “Debt Exchange Shares”). The New Facility is comprised of a $110.0 million interest-bearing loan (the “New Debt”) and a $50.0 million non-interest-bearing exit fee (the “Exit Fee”). The following is a summary of certain terms of the New Facility:7

~~•$158.6~~Table ~~million~~ of ~~the New Facility matures on April 30, 2030 and $1.4 million of the New Facility matures on January 15, 2029~~Content

~~•The~~On ~~interest~~February 19, ~~rate~~2025, onAltisource Portfolio Solutions S.A. and the ~~New~~Borrower ~~Debt~~entered isinto agreements with 100% of the ~~Secured~~lenders ~~Overnight~~under ~~Financing~~the ~~Rate~~SSTL (the “~~SOFR~~Lenders”) ~~plus~~under 6the Amended Credit Agreement.~~50%~~ ~~per~~Under ~~annum~~these agreements, the Lenders exchanged the SSTL with an outstanding balance of $232.8 million for a $160.0 million new first lien loan facility (the “New Facility”) and 7.3 million shares of common stock (the “Debt Exchange Shares”). The New Facility is comprised of a $110.0 million interest-bearing loan (the “New Debt”) and a $50%.0 ~~SOFR~~million ~~floor~~non-interest-bearing exit fee (the “Exit Fee”). The following is a summary of certain terms of the New Facility.

•The ~~interest~~payment ~~rate~~of onall amounts owing by the ~~Exit~~Borrower ~~Fee~~under the New Facility is 0% guaranteed by Altisource Portfolio Solutions S.A. and certain of its wholly-owned subsidiaries (the “Guarantors”) and is secured by a lien on substantially all of the assets of the Borrower, Altisource Portfolio Solutions S.A. and the other Guarantors, subject to certain exceptions. The liens securing the New Facility are junior to the liens securing the Super Senior Facility (defined below) pursuant to, and as set forth in, an intercreditor agreement.

~~•All~~On ~~mandatory~~February 19, 2025, Altisource Portfolio Solutions S.A. and ~~voluntary~~the ~~prepayments~~Borrower ~~under~~also entered into a $12.5 million super senior credit facility (the ~~New~~“Super Senior Facility”) ~~are~~to ~~allocated~~fund ~~between~~transaction costs related to the ~~New~~2025 ~~Debt~~debt and equity transactions described above (collectively, the ~~Exit~~“Transactions”) ~~Fee~~and onfor general corporate purposes. The following is a ~~pro~~summary ~~rata~~of ~~basis~~ certain terms of the Super Senior Facility:

•The principal amortization of the New Facility is 1.0% of the New Debt per year

•A minimum of 95% of the net proceeds the Company receives from the exercise of Cash Exercise Stakeholder Warrants (defined below) are to be used to prepay the New Facility

•Beginning with the fiscal year ending December 31, 2025, the lesser of (a) 75% of the aggregate Excess Cash Flow (as defined in the credit agreement) for the most recently ended fiscal year of the Company for which financial statements have been delivered and (b) such amount which, immediately after giving effect to such repayment, would result in the Company having no less than $30 million of total cash on its balance sheet, shall be applied first to the prepayment of the Super Senior Facility (defined below) and, second, to the prepayment of the New Facility

The payment of all amounts owing by the Borrower under the New Facility is guaranteed by Altisource Portfolio Solutions S.A. and certain of its wholly-owned subsidiaries (the “Guarantors”) and is secured by a lien on substantially all of the assets of the Borrower, Altisource and the other Guarantors, subject to certain exceptions. The liens securing the New Facility are junior to the liens securing the Super Senior Facility (defined below) pursuant to, and as set forth in, an intercreditor agreement.

Pursuant to the terms of the Exchange Agreement, dated February 19, 2025, by and among the Borrower and Altisource Portfolio Solutions S.A., on the one hand, and the Lenders, on the other hand, with limited exceptions, the Lenders may not, among other things, sell, offer to sell, grant any option to purchase or otherwise dispose of any Debt Exchange Shares, without the prior written consent of Altisource Portfolio Solutions S.A., until the date that is the earlier of (i) September 17, 2025 or (ii) the date on which Altisource Portfolio Solutions S.A. completes a liquidation, merger, stock exchange or other similar transaction that results in all of Altisource’s shareholders having the right to exchange their shares of common stock for cash, securities or other property (“Lock-Up”).

On February 19, 2025, Altisource Portfolio Solutions S.A. and the Borrower also entered into a $12.5 million super senior credit facility (the “Super Senior Facility”) to fund transaction costs related to the Transactions (defined below) and for general corporate purposes. The following is a summary of certain terms of the Super Senior Facility:

•The maturity date of the Super Senior Facility is February 19, 2029

•The original issue discount on the Super Senior Facility is 10.0%

•The interest rate on the Super Senior Facility is SOFR plus 6.50% with a 3.50% SOFR floor

•Beginning with the fiscal year ending December 31, 2025, the lesser of (a) 75% of the aggregate Consolidated Excess Cash Flow (as defined in the ~~credit~~Super ~~agreement~~Senior Facility) for the most recently ended fiscal year of the Company for which financial statements have been delivered and (b) such amount which, immediately after giving effect to such repayment, would result in the Company having no less than $30 million of total cash on its balance sheet, shall be applied first to the prepayment of the Super Senior Facility and, second, to the prepayment of the New Facility

8On February 19, 2025, Altisource entered into an agreement to terminate the $15.0 million revolving credit facility with STS Master Fund, Ltd, an investment fund managed by Deer Park Road Management Company, L.P., a related party.

~~Table~~On April 3, 2025, the Company distributed 70.5 million warrants to purchase approximately 14.3 million shares of ~~Contents~~Altisource common stock for $9.5998 per share (the “Stakeholder Warrants”). The distribution of Stakeholder Warrants was contingent upon, among other things, approval of the distribution by the Company’s shareholders and the consummation of the Debt Exchange Transaction (such conditions, collectively, the “Distribution Conditions”). The Distribution Conditions were satisfied during the quarter ended March 31, 2025.

~~have~~Fifty ~~been~~percent ~~delivered~~of ~~and~~the ~~(b)~~Stakeholder ~~such~~Warrants ~~amount~~will ~~which~~expire on April 2, ~~immediately~~2029 ~~after~~and ~~giving~~require ~~effect~~settlement through the cash payment to the Company of the exercise price of such ~~repayment,~~Stakeholder ~~would~~Warrant ~~result~~(“Cash inExercise Stakeholder Warrants”). Fifty percent of the ~~Company~~Stakeholder ~~having~~Warrants nowill ~~less~~expire ~~than~~on $April 30, ~~million~~2032 ofand ~~total~~require ~~cash~~settlement onthrough ~~its~~the ~~balance~~forfeiture ~~sheet,~~of ~~shall~~shares beof ~~applied~~common ~~first~~stock to the ~~prepayment~~Company ofequal to the ~~Super~~exercise ~~Senior~~price ~~Facility~~of such Stakeholder Warrants (“Net Settle Stakeholder Warrants”). Each Cash Exercise Stakeholder Warrant is exercisable for 0.20313 shares of our common stock (“Cash Exercise Stakeholder Warrant Shares”). Each Net Settle Stakeholder Warrant is exercisable for 0.20313 shares of our common stock (“Net Settle Stakeholder Warrant Shares” and, ~~second,~~collectively towith the ~~prepayment~~Cash ofExercise Stakeholder Warrant Shares, the ~~New~~“Stakeholder ~~Facility~~Warrant Shares”). The Stakeholder Warrants became exercisable pursuant to their term on July 28, 2025.

OnThe ~~February~~Stakeholder ~~19,~~Warrants ~~2025,~~are ~~Altisource~~listed ~~entered~~on ~~into~~the anNASDAQ ~~agreement~~Global toSelect ~~terminate~~Market ~~the~~and ~~$15~~began trading on May 7, 2025.0 The ~~million~~Cash ~~revolving~~Exercise ~~credit~~Stakeholder ~~facility~~Warrants ~~with~~trade ~~STS~~under ~~Master~~the ~~Fund,~~symbol ~~Ltd,~~“ASPSZ” anand ~~investment~~the ~~fund~~Net ~~managed~~Settle byStakeholder ~~Deer~~Warrants ~~Park~~trade ~~Road~~under ~~Management~~the ~~Company,~~symbol L“ASPSW”.P.

Employees

As of December 31, ~~2024~~2025, we had the following number of employees:

United States

India

Uruguay

Luxembourg

Consolidated Altisource

Total employees

~~192~~204

~~892~~942

6882

1,~~160~~236

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Seasonality

Certain of our revenues can be impacted by seasonality. More specifically, revenues from property sales, loan originations and certain property preservation services in field services typically tend to be at their lowest level during the fall and winter months and at their highest level during the spring and summer months. Current economic conditions, residential mortgage default rates and interest rates may impact historical revenue patterns.

Government Regulation

Our business and the business of our customers are or may be subject to extensive scrutiny and regulation by federal, state and local governmental authorities including the Federal Trade Commission (“FTC”), the Consumer Financial Protection Bureau (“CFPB”), the Securities and Exchange Commission (“SEC”), the Department of Housing and Urban Development (“HUD”), the Treasury Department, various federal and state banking, financial and consumer regulators and the state and local agencies that license or oversee certain of our auction, real estate brokerage, title insurance agency, appraisal management, valuation, property preservation and inspection, mortgage and debt collection, trustee, mortgage origination underwriter and broker, property and asset management, insurance and credit report reselling services. We also must comply with a number of federal, state and local laws, which may include, among others:

• the Americans with Disabilities Act (“ADA”);

• the Bank Secrecy Act;

• the California Homeowner Bill of Rights (“CHBR”);

• the Controlling the Assault of Non-Solicited Pornography And Marketing Act (“CAN-SPAM”);

• the Equal Credit Opportunity Act (“ECOA”);

• the Fair and Accurate Credit Transactions Act (“FACTA”);

• the Fair Credit Reporting Act (“FCRA”);

• the Fair Housing Act;

• the Federal Trade Commission Act (“FTC Act”);

• the Gramm-Leach-Bliley Act (“GLBA”);

• the Home Affordable Refinance Program (“HARP”);

• the Home Mortgage Disclosure Act (“HMDA”);

• the Home Ownership and Equity Protection Act (“HOEPA”);

• the National Housing Act;

• the New York Real Property Actions and Proceedings Law (“RPAPL”);

• the Real Estate Settlement Procedures Act (“RESPA”);

• the Secure and Fair Enforcement for Mortgage Licensing (“SAFE”) Act;

• the Servicemembers Civil Relief Act (“SCRA”);

• the Telephone Consumer Protection Act (“TCPA”);

• the Truth in Lending Act (“TILA”);

• Unfair, Deceptive or Abusive Acts and Practices statutes (“UDAAP”); and

• Applicable state laws addressing consumer data privacy, use or disclosure.

In addition, an increasing number of U.S. states (including California, Virginia, Colorado, Connecticut, Texas and others) have enacted comprehensive privacy, data-governance, automated-decision-making, and consumer-rights laws, with additional states adopting similar laws each year. These laws impose requirements relating to data-minimization, consent, sensitive-data handling, individual rights requests, data-protection assessments, and restrictions on certain automated decision-making practices.

In addition to federal and state laws regarding privacy, data security and processing, and automated decision-making practices, we are also subject to legal requirements concerning data protection and processing and use of artificial intelligence in the countries in which we operate. Additionally, certain of our entities are or may be subject to the EU General Data Protection Regulation (“GDPR”). The European Union has also adopted the EU Artificial Intelligence Act, which imposes obligations on providers and deployers of certain artificial intelligence systems based on risk classification. Depending on the nature of the Company’s technology or services used within the EU, additional governance, documentation, testing, or oversight requirements may apply.

We are also subject to the requirements of the Foreign Corrupt Practices Act (“FCPA”) and comparable foreign laws due to our activities in foreign jurisdictions.

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In addition to federal and state laws regarding privacy and data security, we are also subject to data protection laws in the countries in which we operate. Additionally, certain of our entities are or may be subject to the EU General Data Protection Regulation (“GDPR”).

Legal requirements can and do change as statutes and regulations are enacted, promulgated or amended. One such enacted regulation is the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). The Dodd-Frank Act is extensive and includes reform of the regulation and supervision of financial institutions, as well as the regulation of derivatives, capital market activities and consumer financial services. The Dodd-Frank Act, among other things, created the CFPB, a federal entity responsible for regulating consumer financial services and products. Title XIV of the Dodd-Frank Act contains the Mortgage Reform and Anti-Predatory Lending Act (“Mortgage Act”). The Mortgage Act imposes a number of additional requirements on lenders and servicers of residential mortgage loans by amending and expanding certain existing regulations. The interpretation or enforcement by regulatory authorities of applicable laws and regulations also may change over time. In addition, the creation of new regulatory authorities or changes in the regulatory authorities overseeing applicable laws and regulations may also result in changing interpretation or enforcement of such laws or regulations.

Our failure or the failure of our customers or vendors to comply with applicable laws or regulations or changing interpretation of such laws or regulations could subject the Company to criminal or civil liability, significant penalties, fines, settlements, costs and consent orders affecting us or our customers that may curtail or restrict the business as it is currently conducted and could have a material adverse effect on our financial condition or results of operations.

Furthermore, certain of our services are provided at the direction of, and pursuant to, the identified requirements of our customers. The failure of our customers to properly identify or account for regulatory requirements applicable to such services could expose us to significant penalties, fines, settlements, costs and consent orders that could have an adverse effect on our financial condition or results of operations.

We are subject to licensing and regulation as a provider of certain services including, among others, auction, real estate brokerage, title insurance agency, appraisal management, valuation, property preservation and inspection, mortgage and debt collection, trustee, mortgage origination underwriter and broker, property and asset management, insurance and credit report reselling services in a number of jurisdictions. Our employees and subsidiaries may be required to be licensed by or registered with various jurisdictions for the particular type of service sold or provided and to participate in regular continuing education programs. Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. Due to the inherent uncertainty of such actions, it is often difficult to predict the potential outcome or estimate any potential financial impact in connection with any such inquiries.

Available Information

We file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information with the SEC. These filings are available to the public on the SEC’s website at www.sec.gov.

Our principal Internet address is www.altisource.com. ~~and~~We weare ~~encourage~~providing ~~investors~~the address to ~~use~~our itwebsite assolely afor ~~way~~the toinformation ~~easily~~of ~~find~~investors. The information ~~about~~contained uson, or accessible through, our website is not a part of, nor is it incorporated by reference into this Form 10-K. We promptly make the reports we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), select press releases and other related information available on this website. ~~The contents of our website are available for informational purposes only and shall not be deemed incorporated by reference in this report.~~

ITEM 1A. RISK FACTORS

The following risk factors and other information included in this Annual Report on Form 10-K should be carefully considered. The risks and uncertainties described below address the most material risks of which we are currently aware but are not the only ones we face. Therefore, the following risk factors should not be considered a complete list of potential risks that we may face.

Any risk factor described in this Annual Report on Form 10-K or in any of our other SEC filings, or any risk not currently known to us or that we currently anticipate to be immaterial, may, by itself or together with other factors, materially adversely affect our business, reputation, prospects, competitive position, liquidity, results of operations, capital position, or financial condition, including by materially increasing our expenses or decreasing our revenues or profits, which could result in material losses. If any of these risks materialize, they could negatively impact the trading price of our common stock and investors could lose all or part of their investment in our common stock.

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While insurance coverage may help address certain risks that result in losses, recovery under our insurance policies may not be available or sufficient to compensate for damages, expenses, fines, penalties, and other losses we may incur as a result of these and other risks.

In this ITEM 1A unless the context otherwise clearly indicates, references to our “services” include any services, products or solutions provided, or made available by us.

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Summary

•AWe derive a significant portion of ~~our~~ revenue isfrom ~~generated~~Onity ~~from~~and ~~providing~~Rithm. ~~services~~The toRithm ~~two~~Brokerage ~~customers~~Agreement expired on August 31, ~~the~~2025 ~~loss~~and was not renewed. Separately, Rithm notified Onity of ~~some~~termination of its subservicing agreement effective January 31, 2026. Any material reduction in referrals, MSR volumes or ~~all~~scope of ~~these~~services, ~~customer(s)’~~or ~~business~~termination by either customer, would ~~negatively~~adversely ~~impact~~affect usour revenue, liquidity and financial condition.

•IfTechnology ~~the~~failures ~~Rithm Brokerage Agreement is terminated, expires, is breached,~~ or ifintellectual ~~there~~property isdisputes acould ~~significant~~disrupt ~~reduction in the volume of services that we provide pursuant to such agreement~~operations, ~~our~~impair ~~business~~service delivery and ~~results~~increase ofcosts ~~operations~~or ~~would~~regulatory ~~be adversely affected~~exposure.

•~~Technology disruptions~~Cyberattacks, ~~failures~~ransomware, ~~defects,~~data ~~inadequacies~~breaches, ~~delays,~~AI ~~difficulties~~exploitation inor ~~implementing~~other ~~software~~security orincidents ~~hardware~~could ~~modifications~~disrupt operations, ~~acts~~expose ofus ~~vandalism~~to liability, penalties or ~~the~~litigation ~~introduction~~and ofmaterially ~~harmful~~harm ~~code~~our ~~could~~financial ~~negatively~~condition ~~affect~~and ~~our~~reputation. ~~operations~~Insurance ~~and~~may ~~relationships~~be ~~with~~unavailable ~~clients~~or ~~and stakeholders~~insufficient.

•WeFailure ~~depend~~to onprevent ~~third-party~~or ~~services,~~detect ~~products,~~fraudulent ~~data,~~activity ~~infrastructure~~could ~~and~~result ~~solutions~~in tofinancial ~~maintain and grow our businesses~~loss, ~~the~~liability ~~loss~~and orreputational ~~disruption of which could negatively impact us~~harm.

•WeUnauthorized ~~may~~access, ~~not~~disclosure ~~successfully~~or ~~prevent~~processing orof ~~detect~~proprietary ~~fraudulent~~or ~~activity~~personal information, ~~which~~or ~~could~~non-compliance ~~harm~~with ~~our~~privacy, ~~services~~data protection, ~~clients~~AI or notification laws, ~~third~~could ~~parties~~result in investigations, ~~reputation~~fines, litigation and ~~our~~significant ~~results of operations~~costs.

•~~Our~~Business ~~databases contain our proprietary information~~interruptions, ~~the proprietary information of third parties~~pandemics, ~~and~~governmental ~~personal~~shutdowns ~~information about our customers, consumers, vendors, and employees. Unauthorized disclosure, access~~ or ~~processing~~system offailures ~~such~~may ~~information,~~not ~~whether~~be ~~due~~adequately toaddressed aby ~~cybersecurity incident, human error or other vulnerabilities, or~~ our ~~failure~~continuity toand ~~comply~~recovery ~~with applicable information management requirements~~plans, ~~privacy~~resulting ~~laws, or notification obligations, could result~~ in ~~adverse~~operational ~~publicity,~~or ~~loss~~compliance ~~of trust, investigations, regulatory fines, loss of customers, government enforcement actions, private litigation, claims from third parties, and significant financial and operational costs~~disruptions.

•~~Our~~Formation ~~business~~of ~~continuity~~a ~~and~~stockholder ~~disaster~~“group,” ~~recovery~~change-of-control ~~plans~~events ~~may~~or ~~not~~certain ~~adequately~~business ~~address~~sales ~~potential~~may ~~impacts~~trigger ~~from~~termination ~~business interruptions~~ or ~~pandemics,~~default ~~which~~rights ~~could~~under ~~result~~material ~~in operational disruptions~~agreements, ~~financial~~limiting ~~losses,~~strategic ~~or regulatory compliance issues~~flexibility.

•~~The~~Certain ~~insurance~~economic ~~underwriting~~or ~~loss~~housing ~~limitation~~market ~~methods~~conditions weadverse ~~used~~to ~~may~~our ~~not~~businesses becould ~~effective~~reduce ordemand ~~sufficient~~for certain of our services.

•~~Certain~~Government ~~shareholder~~shutdowns ~~arrangements~~or ~~could~~funding ~~trigger~~lapses ~~termination~~affecting courts or ~~events~~agencies ofcould ~~defaults~~delay ~~under~~foreclosures ~~some~~and ofREO ~~our~~activity, ~~material~~reduce ~~agreements~~volumes and impair performance metrics.

•~~Changes~~Failure into ~~economic~~adapt orto ~~market~~technological ~~conditions that reduce residential real estate sales~~change, ~~values,~~regulatory developments or ~~mortgage~~customer ~~origination~~consolidation ~~volumes~~may ~~could~~reduce ~~negatively impact~~ demand ~~for~~or ~~our services~~competitiveness.

•~~Changes~~Restrictions inon ~~residential~~online ~~mortgage~~foreclosure ~~delinquencies, defaults,~~ or ~~foreclosures~~REO auctions could negatively ~~affect~~impact ~~demand~~our ~~for~~auction ~~some~~and ofbrokerage ~~our services~~revenues.

•~~Adapting~~Changes toreducing ~~changes~~the infrequency ~~technology~~ or ~~marketplace~~requirement ~~dynamics~~for ~~related~~default ~~to mortgage servicing~~ or origination ~~and~~services ~~changing~~may ~~requirements~~decrease ofdemand ~~governmental~~for ~~authorities,~~certain ~~GSEs~~of ~~and~~our ~~customers, could pose risks to us~~services.

•~~Changes~~Reduced toforeclosures, ~~compensation~~constrained ~~paid~~REO insupply, ~~connection~~buyer ~~with~~participation ~~residential~~limits ~~property~~or ~~transactions~~inability to meet contractual performance metrics could ~~negatively~~adversely ~~impact~~affect usour default and related services.

•Changes ~~that~~to ~~reduce~~brokerage ~~the~~commissions, ~~frequency~~auction orfees ~~alter~~ or ~~eliminate~~other ~~requirements~~transaction tocompensation ~~use~~structures ~~default~~could ~~or origination services of the type we provide may~~ reduce ~~the volume of sales of our services~~revenues.

•~~Developments~~Anticipated ~~impacting~~sales ~~residential~~from ~~foreclosures,~~awarded ~~REO~~contracts ~~supply,~~ or ~~sales~~pipeline ~~could~~opportunities ~~negatively~~may ~~affect~~not usmaterialize or may be delayed.

•~~Changes~~Our toremote ~~real~~work ~~estate~~environment ~~brokerage~~may ~~commission~~reduce ~~structures~~productivity, orimpair ~~transaction~~controls ~~rates~~and ~~could~~increase ~~adversely~~cybersecurity, ~~affect~~tax ~~us by reducing revenue from brokerage activities~~ and ~~impacting~~regulatory ~~profitability~~risks.

•~~Sales~~Reliance ~~from~~on ~~our~~vendors ~~awarded~~exposes ~~business~~us ~~or pipeline may not occur or may take longer than anticipated~~ to ~~develop~~service ~~which~~failures, ~~could~~pricing ~~result~~increases, incompliance ~~lower-than-expected~~deficiencies ~~revenue~~ and ~~impact~~potential ~~our~~liability ~~financial~~for ~~performance~~vendor misconduct.

•~~Business~~Reclassification ~~expansion~~of ~~carries~~contractors ~~potential~~as ~~risks~~employees ~~and uncertainties, which~~ could ~~lead~~result toin ~~operational inefficiencies~~taxes, ~~increased~~penalties ~~costs,~~and orincreased ~~failure~~compensation ~~to achieve anticipated growth~~costs.

•~~Acquisitions~~Loss toof ~~support~~key ~~growth~~directors, ~~initiatives~~executives ~~involve~~or ~~inherent~~personnel, ~~risks~~or difficulty attracting leadership in Luxembourg, could adversely affect operations.

•AFailure ~~majority~~to ofattract ~~our employees~~ and ~~contractors~~retain ~~work~~skilled ~~remotely,~~and ~~potentially~~licensed ~~impacting~~employees ~~control~~could ~~environments,~~impair ~~productivity,~~service delivery and ~~cybersecurity~~growth.

•~~Dependence~~International onoperations ~~vendors~~expose ~~for many aspects of our business exposes~~ us to ~~risks~~political, ~~related~~economic, ~~to vendor availability~~corruption, ~~performance~~sanctions, trade and ~~oversight~~labor risks.

•We do not expect to pay cash dividends; stockholder returns depend on stock appreciation.

•Our relatively small market capitalization may increase stock volatility, limit liquidity and restrict access to capital or analyst coverage.

•Issuance of additional shares, exercise of warrants or vesting of equity awards could dilute stockholders and affect trading prices.

•The market price and trading volume of our common stock and Stakeholder Warrants have been and may remain volatile, and significant resales could increase volatility or lead to litigation.

•Public float limitations restrict our use of Form S-3 and may impair our ability to raise capital efficiently.

•Significant ownership by lender stockholders may create conflicts.

•Insufficient cash flow, limited capital access or reduced borrowing capacity could impair liquidity and strategic flexibility.

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•~~Extensive~~Our ~~use~~indebtedness, ofvariable ~~contractors~~interest ~~could~~rates, ~~result~~mandatory inprepayments ~~reclassification~~and ~~risks,~~covenant ~~incurring~~restrictions ~~additional~~limit ~~costs~~financial orflexibility ~~penalties~~and increase sensitivity to performance.

•~~Our~~Failure ~~performance~~to ~~could~~comply bewith ~~negatively~~loan ~~impacted~~covenants bycould ~~the~~result ~~loss~~in ~~of the experience and relationships of certain directors~~default, ~~executives,~~acceleration and ~~key~~enforcement ~~personnel~~against collateral.

•~~Attracting,~~We ~~motivating,~~may ~~and~~be ~~retaining~~unable ~~skilled~~to ~~employees~~repay ~~could~~or ~~prove~~refinance ~~difficult~~debt at maturity on favorable terms or at all.

•~~The~~Luxembourg ~~presence~~net ofoperating ~~operations~~loss may expire unused, and changes in ~~multiple~~tax ~~countries~~laws, ~~subjects~~audits usor totransfer ~~unique~~pricing ~~risks~~determinations ~~endemic~~could toresult ~~those~~in ~~countries~~additional taxes, interest, penalties and ~~regions~~reduced realization of deferred tax assets. Impairment of goodwill or intangible assets could require write-downs and reduce earnings.

•WeLoss, ~~may~~misappropriation ~~not~~or ~~pay~~insolvency of financial institutions holding our cash ~~dividends,~~or ~~limiting~~escrow ~~returns~~funds tocould ~~stock~~result ~~appreciation~~in unrecoverable losses.

•~~Our~~Currency ~~smaller~~exchange ~~market~~rate ~~capitalization~~fluctuations could increase ~~the~~costs ~~volatility,~~ and ~~limit~~reduce ~~investors in and analyst coverage, of our stock~~profitability.

•~~The~~As ~~market~~a ~~price~~Luxembourg ~~and~~company, ~~trading~~stockholder ~~volume~~rights differ from those of ~~our~~U.S. ~~stock~~companies, enforcement of judgments may be ~~volatile~~difficult, and Luxembourg requirements may increase compliance burdens and limit operational flexibility. Challenges to Luxembourg tax treatment or interpretations could result in additional liabilities.

•AsChanges ain ~~"smaller~~trade, ~~reporting~~tariff ~~company,"~~or ~~reduced~~cross-border ~~disclosure~~tax ~~requirements~~policies ~~may~~affecting ~~affect~~foreign ~~the~~service ~~information~~providers wecould ~~provide~~increase tocosts ~~stockholders~~or reduce competitiveness.

•~~Loss~~Extensive ofand ~~Form~~evolving ~~S-3~~regulation ~~eligibility~~may orrequire ~~offering~~operational ~~limitations~~changes ~~under~~and ~~SEC~~expose ~~regulations~~us ~~could restrict our ability~~ to ~~raise~~audits, ~~capital~~penalties ~~efficiently~~or ~~and on favorable terms~~litigation.

•~~The~~Loss ~~large~~or ~~number~~suspension of ~~authorized~~required ~~shares~~licenses ~~and~~could ~~outstanding~~restrict ~~warrants~~our ~~may~~ability ~~make~~to ~~the~~provide ~~market price and trading volume of our stock volatile~~services.

•~~Future~~Violations ~~issuances~~by ofcustomers ~~common~~in ~~stock,~~selecting ~~warrants,~~ or ~~equity~~using ~~grants could dilute existing shareholders' economic and voting interests, potentially negatively impacting the trading price of~~ our ~~stock~~services ~~and~~could ~~leading~~expose us to ~~litigation~~liability.

•WeAllegations ~~may~~of belegal ~~delisted~~violations ~~from~~or ~~the~~litigation ~~Nasdaq~~could ~~Global~~result ~~Select~~in ~~Market~~penalties, ~~which~~customer ~~could~~loss ~~negatively~~or ~~impact~~operational ~~the market for our common stock and our business~~restrictions.

•We could have conflicts of interest with certain shareholders, lenders, members of management and our Board of Directors. These conflicts may be resolved in a manner adverse to us.

•Insufficient cash flow or access to capital markets could negatively affect liquidity and competitive positioning.

•Debt levels and variable interest rates may constrain our financial flexibility and responses to customer, industry or economic changes.

•The New Facility and the Super Senior Facility terms could limit cash and reduce liquidity available for operations and strategic investments.

•Failure to comply with loan covenants in the New Facility or the Super Senior Facility would result in a loan default and could result in termination of either or both facilities and acceleration of amounts owing which, in turn, could have a negative impact on liquidity and our business.

•The maturity extension risk under the New Facility or the Super Senior Facility and restrictions on refinancing could lead to challenges if market conditions worsen or alternative financing is unavailable.

•Utilizing a significant deferred tax asset depends on future profitability; if profitability does not materialize, we may not be able to realize some or all of the tax benefit.

•Cash, cash equivalents, and escrow funds held at financial institutions could be at risk.

•Fluctuations in currency exchange rates could expose us to losses.

•Shareholder rights under Luxembourg law differ from other jurisdictions.

•Luxembourg requirements and limitations on company governance and actions could negatively impact our ability to manage the company and respond to market conditions.

•Risks related to Luxembourg tax law could negatively impact our finances. Changes in trade policies, including tariffs, taxes or restrictions on foreign service providers, could adversely affect our business.

•Non-compliance with sanctions or licensing requirements could result in penalties.

•Failure to comply with anti-money laundering and financial crime reporting requirements could result in penalties, contractual breaches, and potential termination of agreements with title insurance underwriters.

•Failure to maintain regulatory compliance, required licenses, or timely filings could result in penalties, contract terminations, or operational restrictions.

•Our business and customers are subject to extensive legal and regulatory scrutiny.

•Our global operations and intercompany arrangements are subject to evolving tax laws, audits, and regulatory interpretations in multiple jurisdictions. Changes in tax rates, disputes over taxable income allocation, or challenges to our transfer pricing practices could result in additional taxes, penalties, interest, or prevent us from utilizing operating losses or other tax credits, any of which would negatively impact our cash flow and profitability.

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Risks Related to Our Business and Operations

We earn a significant portion of our revenue in connection with providing services to two customers.

A significant portion of our revenue is earned from providing services to Onity and Rithm. The Rithm Brokerage Agreement expired on August 31, 2025 and was not renewed. Rithm has no contractual obligation to continue to use Altisource for REO management or provide referrals. However, following the expiration of the Rithm Brokerage Agreement, Rithm has continued to provide discretionary referrals with limited exceptions. Any reduction or cessation would negatively affect related brokerage and ancillary revenue. Additionally, Rithm notified Onity that it is terminating their subservicing agreement effective January 31, 2026. If Rithm were to remove Onity as its subservicer, we would experience a reduction in the volume of services provided to Onity which would negatively impact our business, results of operations, liquidity, and financial condition. If either party substantially reduces the scope or volume of services acquired from us, or otherwise ceases using us as a vendor, it would negatively impact our business, results of operations, liquidity, and financial condition. For example, we could experience a reduction in scope or volume of business as a direct or indirect result of the existence or outcome of regulatory matters impacting one or more of these clients, a ~~change in the servicing relationship between these clients, a~~ reduction in the MSRs for which Onity ~~or Rithm~~ acts as a servicer or subservicer or controls the rights to designate service providers, or a change in the contractual relationship between Altisource and Onity ~~or Rithm~~. In addition, providing services to these customers affords us the opportunity to provide certain services to third parties and the loss of these customers or reduction in the quantity of services provided to these customers would also result in the loss or reduction of these additional revenue streams. For example, we may have the opportunity to earn commissions or fees from, or we may be able to provide on-line auction services, title insurance and escrow services, or other services to, buyers on certain real estate transactions, and the loss or reduction in the number of these customers would also prevent us from offering these additional services related to the underlying transaction. Customer concentration also exposes us to concentrated credit risk, as a significant portion of our accounts ~~receivable~~receivables may be from one or both of these customers.

If the characteristics of the portfolios of properties on which we provide services for either of these customers were to change, for example to become less delinquent, more rural or lower value, this could impact the type and volume of services that we provide, increase our costs of doing business, or reduce the value of commissions or fees we earn.

Our business concentration or relationships with these two customers may be viewed as a risk or otherwise negatively by other customers or potential customers, impeding our efforts to retain customers or obtain new customers.

If the Rithm Brokerage Agreement is terminated, expires, breached, or if there is a significant reduction in the volume of services that we provide pursuant to such agreement, our business and results of operations would be adversely affected.12

OnTable August 28, 2017, Altisource, through its licensed subsidiaries, entered into the Rithm Brokerage Agreement. Under this agreement and related amendments, Altisource is the exclusive provider (with certain exceptions) of brokerage services for REO associated with certain MSRs through August 2025, irrespective of the subservicer, as long as Rithm owns such MSRs. The Rithm Brokerage Agreement may be terminated by Rithm upon the occurrence of certain specified events. Termination events include, but are not limited to, a breach of the terms of the Rithm Brokerage Agreement (including, without limitation, the failure to meet performance standards and non-compliance with law in a material respect), a failure to maintain licenses which materially prevents performance of the contract, regulatory allegations of non-compliance resulting in an adversarial proceeding against Rithm, voluntary or involuntary bankruptcy, appointment of a receiver, disclosure in a Form 10-K or Form 10-Q that there is significant uncertainty about Altisource’s ability to continue as a going concern, failure to maintain a specified level of cash and an unapproved change of control. Rithm could decide to not renew or extend the term of the Rithm Brokerage Agreement upon its termination in August 2025, in which case Rithm may elect to use a brokerage service provider other than the Altisource subsidiaries for some or all of its REO. If any one of these termination events occurs and the Rithm Brokerage Agreement is terminated or if the Rithm Brokerage Agreement is not renewed or extended or the volume of referrals under the Rithm Brokerage Agreement is reduced, Altisource’s business and results of operations would be adversely affected. In addition to loss of the direct revenue from the Rithm Brokerage Agreement, we would likely experience the loss of significant revenue related to the Subject MSRs when a party other than Rithm selects us as the service provider.Content

InTechnology ~~addition~~disruptions, ~~Rithm~~failures, ~~operational~~defects, ~~changes~~inadequacies, adelays, ~~breach~~difficulties ofin ~~the~~implementing ~~Rithm~~technology ~~Brokerage Agreement~~modifications, oracts ~~other~~of ~~actions~~vandalism, ~~that reduce~~ the ~~number~~introduction of ~~properties~~harmful ~~converting~~code or tointellectual ~~REO~~property ~~status~~disputes could: ~~(i)~~damage ~~reduce~~our ~~the~~business ~~volume~~operations ofand ~~services~~relationships ~~that~~with weclients ~~provide~~and ~~on the applicable MSRs pursuant to our agreements with Onity~~stakeholders, and ~~(ii)~~increase ~~reduce~~our ~~the volume of services that we provide pursuant to the Rithm Brokerage Agreement~~costs.

~~Technology~~We ~~disruptions~~rely on critical technology to provide certain of our services, ~~failures~~including our proprietary platforms such as Hubzu real estate marketing, ~~defects~~Equator, ~~inadequacies~~Equator.com, ~~delays~~LOLA, ~~difficulties~~Keystone, inREALSynergy, ~~implementing~~RentRange, ~~software~~Trelix orConnect, ~~hardware modifications~~Vendorly®, ~~acts~~and others . Certain of ~~vandalism~~these technologies incorporate licensed open source and third-party code or may be created or maintained using artificial intelligence, low-code, or ~~the~~similar ~~introduction~~techniques, each of ~~harmful~~which ~~code~~carry inherent risks. Any material defect, outage, data integrity issue, or required redesign could ~~damage~~disrupt our ~~business~~services ~~operations~~and negatively impact revenue and customer relationships. ~~with~~The ~~clients~~use ~~and~~of ~~stakeholders~~outdated, ~~and~~unsupported, ~~increase~~unpatched, ~~our~~misconfigured, ~~costs~~or improperly licensed components or third-party libraries could expose us to cybersecurity vulnerabilities, operational failures, service disruptions, business interruptions, or intellectual-property disputes.

We ~~rely~~also depend on ~~critical~~access ~~technology~~ to ~~provide~~critical ~~certain~~third-party oftechnology ~~our~~and ~~services~~data sources, including ~~our~~MLS ~~proprietary~~feeds, ~~platforms~~GSE ~~such~~systems, asapplication ~~Hubzu~~programming ~~real~~interfaces ~~estate marketing~~(APIs), ~~Equator,~~and ~~Equator.com,~~consumer ~~NestRange,~~credit-reporting ~~LOLA,~~data. ~~Keystone~~Loss, ~~REALSynergy~~restriction, ~~RentRange~~degradation, ~~TrelixAI,~~or ~~Vendorly®,~~increased ~~and~~cost ~~others. Certain~~ of ~~our~~access ~~proprietary~~to ~~technologies~~any ~~incorporate~~such ~~licensed~~technology ~~open~~or ~~source~~data ~~and~~sources ~~third-party~~could ~~code~~impair orour ~~may~~ability beto ~~created~~perform orservices, ~~maintained~~meet ~~using~~contractual ~~artificial~~or ~~intelligence,~~regulatory ~~low-code~~requirements, orsatisfy ~~other~~service-level ~~coding techniques~~expectations, ~~all~~or ofretain ~~which carry inherent risks.~~customers

The integration of artificial intelligence into our services and operations introduces ~~specific~~distinct risks~~. Artificial~~, ~~intelligence~~including ~~systems~~operational ~~may~~failures ~~produce~~unrelated ~~errors~~to ormalicious ~~exhibit~~misuse, ~~biases~~training-data vulnerabilities, ~~leading~~transparency toand ~~inaccurate~~explainability orobligations, ~~misleading~~automated-decision-making ~~information~~restrictions, and emerging state and federal artificial intelligence governance requirements. ~~Such~~ ~~outcomes~~Failure to manage these risks could result in defective outputs, disclosure of proprietary or personal information, operational failures, regulatory scrutiny, customer disputes, or litigation.

We also leverage third-party technology to provide certain of our services, including using third-party order-management and billing technology, and using third-party technology to access data or take actions, such as governmental filings, and externally hosted and managed data centers and operating environments. Our reliance on one or more major cloud-service providers for hosting, storage, and processing creates concentration risk. Outages, service limitations, pricing increases, security failures, or termination of services by these providers could disrupt our operations, impair service delivery, increase costs, or require significant time and investment to migrate to alternative environments. Any such event could negatively impact our business, customer relationships, or results of operations.

Many of our services and processes require effective interoperation with internal and external technology platforms, data feeds, services and other systems. Failures in such interoperation may result in service disruptions, service level agreement breaches, regulatory exposure, or other negative impact on our operations and the operations of our customers. Our customers may require modifications to the services we provide to them to manage the volume and complexity of or laws or regulations applicable to their businesses, or to interoperate with other systems, which modifications may be unfeasible, unsuccessful, costly or time-consuming to implement, or may create disruptions in our provision of systems to customers. Our customers may refuse to agree to modifications to technology or infrastructure services which we provide or which interoperate with the technology or infrastructure services we provide and we believe are desirable to improve the reliability, performance, efficiency or cost in delivering services. Additionally, the improper implementation or use of Altisource services, such as Equator and others, by customers could adversely impact the operation of our services. The foregoing could potentially cause harm to our reputation, loss of customers, negative publicity, or exposure to liability claims or government investigations or actions.

Cyberattacks, ransomware, data breaches, malicious activity or other security incidents targeting our systems, data or platforms could disrupt our operations, expose us to liability, and materially harm our financial condition and reputation.

Because we store and process consumer information and operate public-facing technology platforms, including our Hubzu marketing platform, we may be a target for network hackers or others with malicious intent. We may be subject to ransomware attacks or other attempts by malicious third parties to interrupt or prevent our access to systems or data to extract payment of a ransom or meet other conditions. We may determine that it is necessary or expedient to pay a ransom or meet other conditions which could be harmful to the Company in seeking to regain access to our systems or data. There can be no guarantee that paying a ransom or satisfying conditions would enable us to regain access to our systems or data or that the same would not be corrupted or made more vulnerable to subsequent attacks. If we were to pay a ransom or satisfy other conditions, our actions could encourage further malicious acts. We may not be able to recover ransom from the third-party malicious actors.

We may not have insurance coverage for any resulting losses or may be unable to recover our losses from insurance. Our cyber, technology, errors and omissions, and other insurance coverages may be unavailable, insufficient, subject to exclusions, limited by aggregate caps, contain retroactive-date gaps, or may not apply to certain cyber incidents, operational failures, or regulatory

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~~liability or reputational harm~~actions. ~~Additionally,~~ ~~delays~~We ormay ~~difficulties~~also inbe ~~implementing~~unable ~~artificial~~to ~~intelligence-related~~renew ~~software~~coverage ~~changes~~on ~~may~~favorable ~~disrupt~~terms ~~our~~or ~~operations~~obtain coverage. ~~Failure~~ toAny ~~effectively~~uncovered ~~leverage~~losses ~~these technologies~~ could ~~also~~materially ~~place~~impact usour atliquidity, afinancial ~~competitive disadvantage~~condition, ~~adversely~~or ~~affecting our business and~~ results of operations.

WeMalicious ~~also~~exploitation ~~leverage~~of ~~third~~artificial intelligence models — such as model-~~party~~poisoning ~~technology~~attacks, toprompt-injection, ~~provide~~input-manipulation, ~~certain~~or inference attacks — could compromise the integrity of our ~~services~~systems, ~~including~~expose ~~using~~proprietary ~~third-party~~or ~~order~~personal ~~management~~information, ~~and~~or ~~billing~~disrupt ~~technology,~~operations. ~~and~~These ~~using~~risks ~~third-party~~are ~~technology~~distinct tofrom ~~access~~normal ~~data~~AI oroperational ~~take~~risks ~~actions,~~and ~~such~~may increase as ~~governmental~~AI ~~filings~~adoption may expand. We depend on our ability to use services, ~~and~~products, ~~externally~~data, ~~hosted~~infrastructure and ~~managed~~solutions ~~data~~provided ~~centers~~by third parties to maintain and ~~operating~~grow ~~environments~~our businesses.

Our ability to provide services, satisfy performance and legal requirements, and maintain the confidentiality and integrity of data could be negative impacted by disruptions, failures, defects, inadequacies in our technology or third-party technology or related services we utilize, delays or errors in developing or maintaining our technology, difficulties in implementing software or hardware modifications, acts of vandalism, misuse or malicious use of our services, system attacks or the introduction of malicious code in technology we utilize, the use of outdated or unsupported open source or third-party code, or the use of defective, compromised or insecure code. We may be a target for network hackers or others with malicious intent due to our storage and processing of consumer information as part of providing our services or as a result of operating public-facing technology platforms, including, for example, our Hubzu marketing platform. Any sustained and repeated negative issues with these services may have an adverse impact on our and our customers’ business and results of operations and our relationships with clients and other stakeholders. In the case of acts of vandalism or the introduction of harmful code, we may need to implement improvements to our physical and cybersecurity practices that may require an investment of money, time and resources.

In addition, we may be subject to ransomware attacks or other attempts by malicious third parties to interrupt or prevent our access to systems or data to extract payment of a ransom or meeting other conditions. We may determine that it is necessary or expedient to pay a ransom or meet other conditions which could be harmful to the Company in seeking to regain access to our systems or data. There can be no guarantee that paying a ransom or satisfying conditions would enable us to regain access to our systems or data or that the same would not be corrupted or made more vulnerable to subsequent attacks. If we were to pay a ransom or satisfy other conditions, our actions could encourage further malicious acts. We may not be able to recover ransom from the third-party malicious actors. We may not have insurance coverage for any resulting losses or may be unable to recover our losses from insurance.

Many of our services and processes require effective interoperation with internal and external technology platforms and services, and failures in such interoperation could have a negative impact on our operations and the operations of our customers.

Further, our customers may require modifications to the services we provide to them to manage the volume and complexity of or laws or regulations applicable to their businesses, or to interoperate with other systems, which modifications may be unfeasible, unsuccessful, costly or time-consuming to implement, or may create disruptions in our provision of systems to customers. Our customers may refuse to agree to modifications to technology or infrastructure services which we provide or which interoperate with the technology or infrastructure services which we provide and we believe are desirable to improve the reliability, performance, efficiency or cost in delivering services. Additionally, the improper implementation or use of Altisource services, such as Equator and others, by customers could adversely impact the operation of our services. The forgoing could potentially cause harm to our reputation, loss of customers, negative publicity, or exposure to liability claims or government investigations or actions.

We depend on our ability to use services, products, data, infrastructure and solutions provided by third parties to maintain and grow our businesses.

We rely on certain third parties to provide services, products data, infrastructure and solutions (collectively, “Inputs”) critical to our services, including our Hubzu real estate marketing, Equator, Field Services, credit reporting, NestRange, RentRange, TrelixAI and Vendorly. The failure of such third parties to provide or make available the Inputs in accordance with applicable requirements could negatively impact our ability to provide our services or perform transactions and to meet our obligations. In addition, these third parties could cease providing or reduce the availability, type, details or other aspects of the Inputs, and change the pricing, performance or functionality of the Inputs. If such Inputs become unavailable or too expensive, and we are unable to obtain suitable alternatives and efficiently and effectively integrate these alternatives into our services or infrastructure, we could experience service disruptions, increased costs and reduced quality of our services.

We also provide certain third-party services for resale or distribution to our clients. The third-party providers of such services could seek to compete with us by offering the same services directly to our clients. If we are not able to provide substitute services on competitive pricing to our clients, our sales, profits, ability to resell or distribute, or compete with such offerings could be negatively impacted.

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We may not successfully prevent or detect fraudulent activity which could harm our services, clients, third parties, reputation, and our results of operations.

Our provision of certain services in connection with real estate-related transactions relies upon information provided by and actions of employees and in some cases third parties, including our vendors and customers, and upon certain technology systems. The provisions of such services could be negatively impacted by fraudulent or incorrect information provided by employees or third parties. Vulnerabilities in technology systems and controls on which we rely to provide certain services could permit employees or third parties to introduce fraudulent information into those systems or otherwise compromise those systems or applicable controls, impacting our ability to provide services without error, negatively impacting, us, our clients and third parties.

Employees and third parties have, in the past, engaged in fraudulent activity and may attempt to do so in the future. This activity may result in, among others, transferring funds or real estate property titles to fraudulent actors, paying for services which were not performed or failed to meet applicable requirements, disbursing construction funds when applicable conditions have not been satisfied, selling real estate for below market values, issuing title insurance based on fraudulent ownership documentation, underwriting mortgage applications based on fraudulent information, and insuring fraudulent mortgages. Persistent and pervasive fraudulent activity may harm our client relationships and our reputation and could result in financial loss, thereby adversely affecting our business and results of operations.

Our databases contain our proprietary information, the proprietary information of third parties, and personal information about our customers, consumers, vendors and employees. Unauthorized disclosure, access or processing of such information, whether due to a cybersecurity incident, human error or other vulnerabilities, or our failure to comply with applicable information management requirements, privacy laws, or notification obligations, could result in adverse publicity, loss of trust, investigations, regulatory fines, government enforcement actions, private litigation, claims from third parties, and significant financial and operational costs.

As part of our business, we collect, store, process, transfer and dispose in tangible and electronic forms customer, consumer, vendor and employee personal information (“PI”). We and our vendors rely on processes that are intended to provide necessary notices, processes and controls regarding the collection, access, storage, processing and destruction of PI, and to permit subjects to exercise their legal rights concerning their PI in our possession. If those notices, processes or controls are not sufficient, or our processes or controls experience an error or other disruption, we or our vendors may fail to comply with applicable requirements concerning PI. In addition, we rely on the security of our facilities, networks, databases, systems, processes and controls, and, in certain circumstances, third parties, such as vendors, to protect PI. If such facilities, networks, databases, systems, processes and controls, or those of our customers or vendors, are not effective, are outdated or compromised, or do not exist, or if we, our customers or vendors fail to detect or respond to attacks or intrusions, unauthorized parties may gain access to our networks or databases or information, or those of our customers or vendors with which we interconnect or share information, and they may be able to steal, publish, delete, or modify PI. In addition, employees may intentionally or inadvertently process PI in an unauthorized manner or cause data or security breaches that result in unauthorized release of such PI. Further, our efforts to process, delete or destroy PI may not be consistent with our disclosed policies or may not be successful, resulting in the theft or unintentional disclosure of PI, including when disposing of media on which PI may be stored. In such circumstances, our business could be harmed, and we could be liable to our customers, employees or vendors, or to regulators, consumers or other parties, as well as be subject to disclosure or notification requirements, and regulatory or other actions for breaching applicable laws, failing to make or provide required disclosures or notifications, or failing to adequately protect such information. This could result in costly investigations and litigation, civil or criminal penalties, large scale remediation requirements, operational changes or other response measures, significant penalties, fines, settlements, costs, consent orders, loss of consumer confidence in our security measures and negative publicity.

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Our business continuity and disaster recovery plans may not adequately address potential impacts from business interruptions or pandemics, which could result in operational disruptions, financial losses, or regulatory compliance issues.

Our business continuity and disaster recovery plans and other adjustments to business may not be sufficient to anticipate impacts of, or address or adequately recover from, business interruptions or a pandemic, or may not be maintained, updated and implemented on a timely or error free basis in response to business interruptions or a pandemic, resulting in negative operational impacts and errors.

The insurance underwriting loss limitation methods we used may not be effective or sufficient.

Altisource, through its subsidiary Association of Certified Mortgage Originators Risk Retention Group, Inc., provided certified loan insurance to its customers. Altisource reduces a portion of its risk of insurance loss through third-party reinsurance. The incidence and severity of claims against insurance policies are inherently unpredictable. Although we attempted to manage our exposure to insurance underwriting risk through the use of disciplined underwriting controls and the purchase of third-party

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reinsurance, we maintain first loss exposure and the frequency and severity of claims could be greater than contemplated in our pricing and risk management methods and our controls and mitigation efforts may not be effective or sufficient.

We also face counterparty risk when purchasing reinsurance from third-party reinsurers. The insolvency or unwillingness of any of our present or future reinsurers to contract with us or make timely payments to us under the terms of our reinsurance agreements could have an adverse effect on us. Further, there is no certainty that we will be able to purchase the amount or type of reinsurance we desire in the future or that the reinsurance we desire will be available on terms we consider acceptable or with reinsurers with whom we want to do business.

Under certain material agreements to which we are currently a party or into which we may enter in the future, the formation by shareholders of Altisource of a “group” with beneficial ownership of a defined percentage of the combined voting power or economic interest of Altisource capital stock exceeding a defined percentage may give rise to a termination event or an event of default.

Under certain of our material agreements a change of control would be deemed to occur if, among other things, a “group” (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is formed by shareholders holding beneficial ownership of a defined percentage of the combined voting power or economic interest of our capital stock. The ~~Rithm Brokerage Agreement contains such a provision, and we may enter into material agreements in the future that contain similar provisions. The~~ formation of a “group” could occur without the involvement of or input by us, and we are not in a position to prevent such an event from occurring. Such a change of control could constitute a termination event or an event of default under these agreements which could negatively impact us.

In addition, under our long-term agreements with Onity, beginning September 1, 2028 a change of control of Altisource to a competitor of Onity would give Onity a contractual right to terminate the agreement if Onity reasonably believes the transaction may negatively impact it and the parties cannot agree on remedial actions. These agreements also provide that, after September 1, 2028, a sale or transfer to an Onity competitor of all or part of the Altisource business supporting Onity— even if not constituting a change of control of Altisource — would give Onity a right to terminate the applicable services if the parties cannot agree on remedial measures. These provisions may limit our flexibility to pursue certain strategic transactions, including change-of-control transactions or sales of business lines, and could delay, restrict or prevent transactions that might otherwise be in the interests of our shareholders.

Risks Related to Our Industry

Changes in economic and market conditions that ~~reduce~~depress residential real estate sales, values or mortgage origination volumes could negatively impact demand for our services.

Economic or market fluctuations such as a ~~decrease~~low innumber of residential real estate sales, depressed sales prices or values of residential properties or origination volumes or anlengthy ~~increase in~~ sales transaction timelines could reduce the demand for certain of our services related to marketing and real estate sale transactions, including services ancillary to such transactions, such as closing services and title insurance services. Typically, the volume of residential property sales decline and transaction timelines increase as residential mortgage interest rates increase, financing options and availability for borrowers decline or consumer confidence falls. Governmental actions or announcements intended to influence mortgage interest rates or mortgage market functioning, including large-scale purchases of mortgage-backed securities by government-sponsored enterprises or other policy interventions, may alter borrower and investor behavior, and create volatility in origination, refinancing, servicing and default activity. These actions may be reversed, modified, delayed, or challenged through legislative, regulatory or judicial processes, making the timing and demand for our services less predictable and potentially adversely affecting our results of operations. A reduction in the volume of real estate transactions or the sales price of real estate could negatively impact our residential real estate brokerage and auction businesses which earn commission fees generally set as a percentage based on the property sale price. Demand for services from other businesses, such as mortgage origination, valuation, title and closing, may also decline as a result of adepressed ~~reduction~~residential in real estate transaction volumes including from ~~increasing~~increased residential real estate values or mortgage interest rates. Residential real estate value appreciation typically increases equity in borrowers’ homes providing borrowers with more options to avoid foreclosure ~~and~~, ~~therefore,~~potentially reducing foreclosure auction and REO referrals and ancillary services such as closing and title insurance services.

Economic or market fluctuations that ~~reduce~~depress the volume or value of residential mortgage origination or refinancings could ~~decrease~~depress the demand for our mortgage origination and mortgage insurance related services, including those provided to members of the Lenders One mortgage cooperative. An ~~increase~~Relatively inhigh residential mortgage interest rates or a ~~decline~~scarcity inof financing availability for borrowers, potentially due to an inflationary environment or government actions, could ~~reduce~~depress demand for these services. ~~Rising~~Elevated residential real estate values could also ~~reduce~~depress the number of sale transactions, leading to a decrease in new mortgage origination.

~~A reduction in residential mortgage delinquencies, defaults or foreclosures, and REO volume in the United States can negatively affect demand for certain of our services.~~15

WeTable ~~provide certain services to residential mortgage servicers and subservicers, as well as government sponsored entities, federal agencies and others, to protect, preserve, manage and potentially dispose~~ of properties securing residential mortgage loans, when such loans become delinquent, default, undergo foreclosure or become REO assets. Rates of residential mortgage delinquencies, defaults and foreclosures, and REO volume can be negatively impacted by numerous factors, such as strengthening economic conditions, increasing housing equity from rising home values, decreasing residential mortgage interest rates, reductions in the number of residential mortgages outstanding, reductions in homeownership levels or governmental or servicer action. National servicing standards, federal and state government scrutiny and regulation, requirements specifying loan loss mitigation, modification and foreclosure procedures, rules instituted by governmental authorities, GSEs, servicers or investors preventing actions related to loan delinquencies and foreclosures, including moratoriums on foreclosures and mortgage payment forbearance plans, may also reduce the number of mortgage loans entering the foreclosure process or Content

16Government shutdowns, funding lapses or other disruptions affecting federal, state or local governmental operations could adversely affect our business, results of operations and cash flows.

~~Table~~A full or partial shutdown of ~~Contents~~federal, state or local government operations, or a lapse in appropriations or funding, could delay, restrict or suspend the operations of courts, bankruptcy courts, recording offices and governmental authorities involved in residential mortgage servicing, foreclosure, eviction and REO conveyance, including HUD, the Federal Housing Administration (“FHA”), VA, USDA and government-sponsored enterprises. Such disruptions could slow or halt foreclosure proceedings, approvals, recordings, REO conveyance, marketing and sale activities, create operational backlogs that persist after governmental operations resume, and reduce or delay the volume and timing of orders for our services. Government shutdowns or funding lapses could also adversely affect liquidity in REO and residential real estate markets, lengthen transaction timelines, increase costs, adversely affect pricing, and impair our ability to meet contractual performance metrics tied to conversion rates, aging, time-on-market or other percentage-based or timing requirements. Any failure to satisfy applicable service levels or performance metrics could result in reduced volumes, fee adjustments, termination of services or loss of referrals by customers, which could negatively impact our business, cash flows, results of operations and financial condition.

~~suspend~~A ~~pending~~depressed ~~foreclosure~~rate ~~and eviction actions. Such conditions could negatively impact demand for our default services. Reductions in the rates~~ of residential mortgage delinquencies, defaults, or foreclosures, and REO volume ~~would~~can ~~likely~~negatively ~~reduce~~affect demand for ~~our~~certain ~~services~~of ~~related~~our ~~to non-judicial foreclosures, inspecting, maintaining, valuing, marketing and selling such assets~~services.

IfWe ~~faced~~provide ~~with~~certain anservices ~~extended~~to ~~period~~residential ofmortgage ~~decline~~servicers inand ~~demand~~subservicers, ~~for~~as ~~and~~well ~~revenue~~as ~~from~~government ~~certain~~sponsored ofentities, ~~our~~federal ~~services~~agencies asand aothers, ~~result~~to ofprotect, ~~economic conditions~~preserve, ~~borrower~~manage ~~loss~~and ~~mitigation~~potentially ordispose ~~relief~~of ~~measures~~properties securing residential mortgage loans, orwhen ~~due~~such toloans ~~government~~become delinquent, ~~GSE~~default, ~~servicer~~undergo foreclosure or ~~investor~~become ~~restrictions~~REO ~~related~~assets. Rates toof ~~loan~~residential mortgage delinquencies, defaults and foreclosures, ~~including~~and ~~moratoriums~~REO onvolume ~~foreclosures~~can ~~and~~be ~~mortgage~~negatively ~~payment~~impacted ~~forbearance~~by ~~plans~~numerous factors, wesuch ~~may~~as bestrengthening ~~unable~~economic toconditions, ~~sufficiently~~increasing ~~adjust~~housing ~~our~~equity ~~cost~~from ~~structure~~high home values, inlow ~~our~~residential ~~operations~~mortgage ~~that~~interest ~~provide~~rates, ~~such~~reductions ~~impacted~~in ~~services~~the ornumber atof ~~the~~residential ~~corporate~~mortgages ~~level~~outstanding, toreductions ~~avoid~~in ~~negative~~homeownership ~~impacts~~levels toor ~~net~~governmental ~~revenue~~ or ~~profits~~servicer action. WeNational ~~also~~servicing ~~may~~standards, befederal ~~unable~~and tostate ~~maintain~~government ~~our~~scrutiny ~~ability~~and regulation, requirements specifying loan loss mitigation, modification and foreclosure procedures, rules instituted by governmental authorities, GSEs, servicers or investors preventing actions related to ~~offer~~loan ~~such~~delinquencies ~~services~~and inforeclosures, including moratoriums on foreclosures and mortgage payment forbearance plans, may also reduce the ~~future~~number of mortgage loans entering the foreclosure process or suspend pending foreclosure and eviction actions. ~~The~~Such ~~expiration~~conditions ~~dates~~could negatively impact demand for our default services. Depressed rates of ~~certain~~residential ~~requirements~~mortgage delinquencies, ~~loss~~defaults, ~~mitigation~~foreclosures orand ~~relief~~REO ~~measures~~volume ~~that~~would likely negatively impact demand for our services ~~may~~related beto ~~indefinite~~non-judicial orforeclosures, ~~extended~~inspecting, inmaintaining, ~~the~~valuing, ~~future~~marketing ~~making~~and itselling ~~difficult~~such assets. Policies or programs intended to ~~predict~~improve ~~when~~housing ~~such~~affordability, ~~requirements~~suppress orborrowing ~~measures~~costs, ~~may~~extend ~~end. In~~loan ~~response~~amortization periods or otherwise seek to ~~such~~increase ~~conditions~~borrower leverage, we may bedistort ~~required~~housing tomarket ~~modify~~dynamics or ~~suspend~~delay ~~such~~or ~~operations~~suppress ~~which~~the ~~could~~normal ~~negatively~~progression ~~impact~~of ~~our~~credit ~~ability~~stress toand ~~timely~~foreclosure ~~respond~~activity toand ancould ~~increase~~reduce innear-term demand for ~~such~~our default-related services, obscure underlying credit conditions or todisrupt ~~provide~~historical ~~such~~demand ~~services~~patterns. inThese effects could adversely affect the ~~future~~timing, orvolume ~~which~~and ~~could~~mix ~~cause~~of usour todefault ~~incur~~and ~~significant~~transactional ~~expense~~service toactivity, ~~restart~~impair orplanning ~~scale~~and ~~such~~resource ~~services~~allocation, inreduce ~~response~~operating toefficiency, anand increase volatility and unpredictability in ~~demand~~our results of operations.

If faced with an extended period of depressed demand for and revenue from certain of our services as a result of economic conditions, borrower loss mitigation or relief measures, or due to government, GSE, servicer or investor restrictions related to loan delinquencies and foreclosures, including moratoriums on foreclosures and mortgage payment forbearance plans, we may be unable to sufficiently adjust our cost structure, in our operations that provide such impacted services or at the corporate level, to avoid negative impacts to net revenue or profits. We also may be unable to maintain our ability to offer such services in the future. The expiration dates of certain requirements, loss mitigation or relief measures that impact demand for our services may be indefinite or extended in the future making it difficult to predict when such requirements or measures may end. In response to such conditions, we may be required to modify or suspend such operations which could negatively impact our ability to timely respond to an increase in demand for such services or to provide such services in the future, or which could cause us to incur significant expense to restart or scale such services in response to an increase in demand.

We may fail to adapt our services to changes in technology or in the marketplace related to mortgage servicing or origination, changing requirements of governmental authorities, GSEs and customers. Customers may seek to reduce the number of their service providers.

The markets for our services are characterized by constant technological and other changes, frequent introduction of new services by competitors, and evolving industry standards and government regulations. We ~~are~~frequently ~~currently~~develop ~~in the process of,~~ and ~~from~~introduce ~~time to time will be, developing and introducing~~ new services and technologies and ~~improving~~modify existing services and technologies. Our future success ~~will~~depends ~~depend~~ on ~~completing~~our ability to complete these efforts, ~~enhancing~~enhance our services and technologies, and developing new services that address changes in technology, competing services, applicable marketplaces, or customer needs. These efforts carry risks, including of cost overruns, delays, ~~lack of market acceptance, and performance shortfalls. There is no assurance that we will successfully develop, enhance, market, sell, or implement new or improved technologies or services.~~

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lack of market acceptance, and performance shortfalls. There is no assurance that we will successfully develop, enhance, market, sell, or implement new or improved technologies or services.

Customers may also reduce the number of service providers employed through vendor consolidation, insourcing, or other means, which could decrease demand for our services and impact pricing control.

Changes that reduce or limit the use of online default real estate auctions or otherwise reduce the volume or rate of success of such auctions can negatively impact our auction marketplace, real estate brokerage and related default services.

Governmental, GSE, servicer or investor actions or action by others that restrict online real estate auctions (foreclosure and REO), reduce the permissible fees or direct the use of auction providers other than us, could negatively impact demand for our auction marketplace, real estate brokerage and related services, revenues we receive related to such real estate auctions and impact our ability to meet certain contractual performance metrics. If we fail to satisfy applicable performance metrics or perform in a manner satisfactory to our customers, such customers may reduce the services they acquire from us or otherwise terminate us as a provider.

Changes that reduce the frequency or alter or eliminate requirements to use default or origination services of the type we provide may reduce the volume of sales of our services.

Industry or regulatory changes related to servicing residential mortgages which are delinquent, in default or in foreclosure, or related to residential mortgage loan origination requirements, could reduce the frequency and volume of orders for our services. Any reduction in frequency or volume of providing services would have a negative impact on our cash flow and financial condition.

Developments that impact residential foreclosures or the supply, sale price or sale of REO could negatively affect demand for certain of our default-related services and impact our ability to meet certain contractual performance metrics.

A reduction in residential foreclosures or the supply or sale of REO in the United States could reduce the demand for services, including foreclosure trustee, foreclosure auction, REO asset management, REO property inspection and preservation, real estate brokerage, real estate auction and marketing services, as well as sales of REO, especially in cases where more loans are resolved prior to foreclosure or sold at foreclosure auctions, and therefore do not convert to REO. ~~The~~ ~~reduced supply of~~ REO properties, or lower sales ofvolumes, ~~REO~~ could ~~also~~impair ~~impact~~ our ability to meet certain contractually required service metrics, including ~~those metrics tied to satisfying certain~~ conversion percentage requirements, as the size of the applicable ~~population~~REO inventory declines and the ~~population~~remaining ofproperties ~~REO~~are ~~that remains is~~ often the most difficult to sell. Reduced volumes may ~~make~~also itdiminish ~~more~~operating ~~difficult~~efficiencies, toincrease ~~provide~~per ~~services~~unit ~~in an economic manner~~costs, ~~undermine~~and ~~beneficial~~make ~~efficiencies,~~it ~~and~~more ~~increase~~challenging ~~risks~~to secure and ~~costs~~retain ~~of securing~~ vendors toat ~~provide~~economically ~~services~~viable ~~on a smaller~~ scale.

Proposals or actions which seek to limit or restrict participation by institutional investors or other buyer classes in single-family housing or REO markets could depress demand for REO, change the composition of the pool of potential REO buyers, lengthen REO sales cycles, or negatively impact pricing for REO assets. Any such developments could adversely affect demand for our REO disposition, auction, brokerage, marketplace and related services, increase execution complexity, reduce the value of REO and associated sales commission and auction fees, or impair our ability to satisfy contractual performance metrics.

In addition, changes in policies, regulations, or program requirements imposed by federal housing agencies or government-sponsored enterprises, including the FHA, HUD, Fannie Mae and Freddie Mac, could adversely affect foreclosure and post-foreclosure processes, auction participation, reimbursement programs and related economics. For example, changes to foreclosure bidding requirements, credit bidding thresholds, eligibility for claims without conveyance of title or similar programs, reimbursement of foreclosure or auction-related costs, conveyance requirements, or other loss mitigation and post-foreclosure programs could reduce the volume of assets eligible for third-party sale, alter servicer behavior at foreclosure auctions, reduce referral volumes, lengthen timelines, negatively impact pricing or fees associated with foreclosure auctions and REO disposition services, or impair our ability to meet contractual performance metrics. Governmental actions that influence mortgage interest rates, mortgage-backed securities markets, or participation by certain buyer classes in residential real estate markets could further reduce demand for our services or increase volatility in volumes and execution complexity.

We may not be able to effectively manage rapid or unanticipated increases in foreclosures or the supply, sale price or sale of REO which could negatively impact our ability to satisfy service level metrics that are tied to conversion rates or other percentage requirements. For example, if a service metric specifies that a certain percentage of the total REO inventory is to be sold within a defined period of time, a rapid increase in the total REO inventory may increase the risk of failing to meet the defined percentage metric during the period required to prepare the newly added REO to be marketed. Some of the service metrics which may be impacted include those related to REO conversion rates, aging of REO, time on market and sale price

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We may not be able to effectively manage rapid or unanticipated increases in foreclosures or the supply, sale price or sale of REO which could negatively impact our ability to satisfy service level metrics that are tied to conversion rates or other percentage requirements. For example, if a service metric specifies that a certain percentage of the total population of REO is to be sold within a defined period of time, a rapid increase in the total REO population may increase the risk of failing to meet the defined percentage metric during the period required to prepare the newly added REO to be marketed. Some of the service metrics which may be impacted include those related to REO conversion rates, aging of REO, time on market and sale price compared to valuation. If we fail to satisfy applicable performance metrics or perform in a manner satisfactory to our customers, such customers may reduce the services they acquire from us or otherwise terminate us as a service provider.

Changes to compensation paid in connection with residential property transactions could negatively impact us.

Changes to residential real estate brokerage commission structures or compensation paid in connection with residential real estate transactions, such as auction fees or buyers’ premiums, which reduce compensation for services or limit commission sharing or cooperative commissions among brokerages or brokers could negatively impact the commissions we receive and certain contractual arrangements. Changes to fees paid permitted or paid in connection with foreclosure or REO sales or auctions could negatively impact our revenue.

Risks Related to Our Growth Strategy

Sales from our awarded business or pipeline may not occur or may take longer than anticipated to develop, which could result in lower-than-expected revenue and impact our financial performance.

As part of our business and financial planning, we make assumptions about the quantity and timing of services that our customers and prospective customers will order from us. In many instances, however, our customers may not be obligated to acquire our services or may only be obligated to acquire our services to the extent they can make use of them. Our anticipated sales volume may not materialize if customers or prospective customers choose other service providers, or if economic, industry, or company-specific conditions reduce their demand for services or fees paid for the services. For example, economic conditions, restrictions imposed by governmental authorities, GSEs, servicers or investors, or the sale, consolidation or failure of current or potential customers may negatively impact the quantity or timing of customer demand for our services despite existing agreements. Customers may also reduce the quantity or mix of services acquired from us versus other providers. Even in cases where our customer contracts require minimum purchases, we may be unable or decide not to enforce or collect the contractual minimums.

Business expansion involves potential risks and uncertainties.

Efforts to enter new business sectors or expand beyond our core services may not achieve anticipated benefits, may take longer or be more costly than expected. This could negatively impact our financial results, reputation and growth prospects. We may not accurately identify market needs. New services may not function as intended or achieve market adoption or commercial success. Financial obligations in the Rithm Brokerage Agreement and restrictions in our loan agreements may limit funding for new initiatives.

Newly-developed businesses, services or initiatives may have lower or negative margins. Growth related investments may increase operating cash requirements, increase costs and reduce margins in the short term or over longer periods. We may not recoup our investments or achieve anticipated financial returns, potentially limiting opportunities to pursue other investments.

Acquisitions to accelerate growth initiatives involve potential risks.

Historically, our strategy has included the acquisition of complementary businesses from time to time. In the future, we may consider acquisitions or mergers to complement our business or to access to new markets. However, our ability to pursue acquisitions depends on access to sufficient capital (equity or debt) to fund the acquisition and subsequent integration. Financial obligations in the Rithm Brokerage Agreement and restrictions in our loan agreements may limit our ability to undertake acquisitions or to secure adequate capital on acceptable terms to fund acquisitions.

Acquisitions carry risks, including risks of operational disruptions, which could negatively impact relationships with customers, suppliers, and employees. As a Luxembourg-domiciled company, acquisitions may require immediate or significant changes post-closing to the acquired business, increasing the complexity of acquisitions. Acquisitions may also increase amortization expenses related to intangible assets, reducing profitability.

Failure to properly and timely integrate acquired businesses may prevent us from realizing expected value and may reduce revenue or earnings anticipated as a result of the acquisition.

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Risks Related to Human Capital

A majority of our employees and contractors work from locations other than in our facilities ~~(“Remote Work Environment”)~~, which could negatively impact our control environment or productivity and create additional risks for our business, including increasing our risk for cybersecurity breaches or failures.

A majority of our workforce works from a ~~Remote~~remote ~~Work~~work ~~Environment~~environment. We may incur significant costs associated with the ~~Remote~~remote ~~Work~~work ~~Environment~~environment and we may not be able to increase our fees to cover the additional costs. Employing a ~~Remote~~remote ~~Work~~work ~~Environment~~environment could decrease workforce productivity, including due to a lower level of oversight, supervision or monitoring, increased distractions, impediments to real-time communication or other challenges to effective collaboration, use of slower residential internet connections, the instability, inadequacy or unavailability of our network, unstable electrical services or unreliable internet access. We also may face increased data privacy and security risks resulting from the use of non-Altisource networks to access and process information and to provide services.

Additional risks to our systems and data, as well as customer, vendor and borrower data, include increased phishing activities targeting our workforce, vendors and counterparties in transactions, and potential attacks on our systems or systems of our remote workforce. A ~~Remote~~remote ~~Work~~work ~~Environment~~environment could also negatively impact certain controls, such as our financial reporting systems, internal control over financial reporting, disclosures and procedures, as well as controls designed to detect or prevent misconduct.

In addition, our ~~Remote~~remote ~~Work~~work ~~Environment~~environment may result in difficulties creating and maintaining current and accurate records of where our employees are working. Such uncertainty in employee location may subject us to risks related to taxing jurisdictions or maintaining certain licenses.

We rely on vendors for many aspects of our business. If our vendor oversight activities are ineffective, we may fail to meet customer or regulatory requirements. We may face difficulties sourcing required vendors or supplies or managing our relationships with vendors.

We rely on vendors to provide goods and services in relation to many aspects of our operations, including field services and renovation providers, data providers, and certain providers of web-based services or software as services. Our dependence on these vendors makes our operations vulnerable to the unavailability of such vendors, the pricing and quality of services and products offered by such vendors, solvency of those vendors, deficiencies and failures of technology, security and business continuity and disaster recovery plans and efforts of such vendors, and such vendors’ failure to perform adequately under our agreements with them. In addition, where a vendor provides services or products that we are required to provide under a contract with a customer, we are generally responsible for such performance and could be held accountable by the customer for any failure of performance by our vendors or related defects. If our vendor sourcing efforts are not effective or if we are otherwise not able to secure an appropriate supply and quality of vendors, services or supplies, if vendors are unable to hire or retain employees or acquire supplies, or are prohibited or prevented from performing the services or providing the products for which we contract, including as the result of restrictions imposed by state or local governments or health departments, we may be unable to provide services or compliant services, or our services may become more expensive. If our vendor oversight activities are ineffective, if a vendor fails to provide the services or products that we require or expect, or fails to meet contractual requirements, such as service levels or compliance with applicable laws, or if a vendor engages in misconduct, the failure or misconduct could negatively impact our business by adversely affecting our ability to serve our customers or by subjecting us to litigation and regulatory risk for ineffective vendor oversight. Furthermore, the failure to obtain services or products at anticipated pricing could impact our cost structure and the prices of our services and we may not be able to increase our fees to cover the additional costs. In addition, Altisource may be contractually required by its customers or by applicable regulations to oversee its vendors and document procedures performed to demonstrate that oversight. If we fail to meet such customer or regulatory requirements, or we face difficulties managing our relationships with vendors, we may lose customers or may no longer be granted referrals for certain services or could be subject to adverse regulatory action.

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contract with a customer, we are generally responsible for such performance and could be held accountable by the customer for any failure of performance by our vendors or related defects. If our vendor sourcing efforts are not effective or if we are otherwise not able to secure an appropriate supply and quality of vendors, services or supplies, if vendors are unable to hire or retain employees or acquire supplies, or are prohibited or prevented from performing the services or providing the products for which we contract, including as the result of restrictions imposed by state or local governments or health departments, we may be unable to provide services or compliant services, or our services may become more expensive. If our vendor oversight activities are ineffective, if a vendor fails to provide the services or products that we require or expect, or fails to meet contractual requirements, such as service levels or compliance with applicable laws, or if a vendor engages in misconduct, the failure or misconduct could negatively impact our business by adversely affecting our ability to serve our customers or by subjecting us to litigation and regulatory risk for ineffective vendor oversight. Furthermore, the failure to obtain services or products at anticipated pricing could impact our cost structure and the prices of our services and we may not be able to increase our fees to cover the additional costs. In addition, Altisource may be contractually required by its customers or by applicable regulations to oversee its vendors and document procedures performed to demonstrate that oversight. If we fail to meet such customer or regulatory requirements, or we face difficulties managing our relationships with vendors, we may lose customers or may no longer be granted referrals for certain services or could be subject to adverse regulatory action.

We make extensive use of contractors in certain of our lines of business. If we are required to reclassify contractors as employees, we may incur fines and penalties and additional costs and taxes.

A significant number of contractors provide services in our operations for which we do not pay or withhold any federal, state or local employment tax or provide employee benefits. These contractors may be retained by us or retained by vendors providing services to us. There can be no assurance that we are or will be in compliance the various tests used in determining whether an individual is an employee or a contractor, or that legislative, judicial or regulatory (including tax) authorities will not introduce proposals or assert interpretations of existing rules and regulations that would change, or at least challenge, the classification of our contractors. Authorities may determine that we or our vendors have misclassified contractors for employment tax or other purposes and, as a result, seek additional taxes from us, require us to pay certain compensation or benefits to wrongly classified employees, or attempt to impose fines or penalties. In addition, our contractor, and contractors and employees of our vendors may assert claims that they are our employees and seek to recover compensation, benefits, damages and penalties from us. If we are required to pay employer taxes, pay backup withholding compensation, benefits, damages or penalties with respect to or on behalf of our contractors or contractors or employees of our vendors, our costs would increase and we would be financially harmed.

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employees, or attempt to impose fines or penalties. In addition, our contractor, and contractors and employees of our vendors may assert claims that they are our employees and seek to recover compensation, benefits, damages and penalties from us. If we are required to pay employer taxes, pay backup withholding compensation, benefits, damages or penalties with respect to or on behalf of our contractors or contractors or employees of our vendors, our costs would increase and we would be financially harmed.

Our success depends on the relevant industry experience and relationships of certain members of our Board of Directors, executive officers and other key personnel.

Our success is dependent on the efforts and abilities of members of our Board of Directors, our executive officers and other key employees, many of whom have significant experience in the real estate and mortgage, financial services and technology industries or play a substantial role in our relationship with certain customers. In addition, certain ~~members of our Board of Directors,~~ executive officers or other key employees have relationships with certain customers or vendors that facilitate our business and operations. The loss of the services of any of these members of our Board of Directors, executives or key personnel could have an adverse effect on our business and results of operations or relationships with certain customers or vendors.

To maintain our substance and leadership as a Luxembourg company, we seek to convene at least one Board of Directors meeting in Luxembourg each year and our executive management is largely based in Luxembourg. The travel required by our directors to Luxembourg, and potential future restrictions on and requirements for such travel, may serve as an impediment to attract and retain directors and director candidates. Our Luxembourg location can also make it difficult to attract and retain executive officers and other senior leadership and to achieve diversity and succession planning in such roles.

Attracting, motivating, and retaining skilled employees could prove difficult.

Our business is labor intensive and places significant importance on our ability to recruit, engage, train and retain skilled employees. Additionally, demand for qualified employees with experience in certain businesses or technologies may exceed available supply. Our ability to recruit and train employees is critical to achieving our growth objective. Further, some of our business operations require recruiting and retaining employees with certain professional licenses, particularly in the United States. An increase in demand for professionals licensed to work in our origination, real estate brokerage and auction, and default business, and significant turnover in those areas, may negatively impact our ability to attract and retain such professionals. We face inflationary wage pressures which may continue for an extended period. We may continue to encounter significant challenges in attracting and retaining employees as needed to satisfy demand or growth expectations for our services, or to be able to limit compensation related costs to make operations economically viable. We may not be able to attract or retain skilled employees. We may face an increase in wages or other costs of attracting, training or retaining skilled employees. In addition, attrition of current employees may negatively impact our ability to provide services of a quality or volume that satisfies applicable contractual obligations or supports our planned growth or expansion of services.

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employees. In addition, attrition of current employees may negatively impact our ability to provide services of a quality or volume that satisfies applicable contractual obligations or supports our planned growth or expansion of services.

The presence of our operations in multiple countries subjects us to risks endemic to those countries.

We have employees and operations outside of the United States, in countries such as Luxembourg, India and Uruguay. The occurrence of natural disasters, epidemics or other health emergencies, or political or economic instability impacting these countries, could interfere with work performed by these labor sources or could result in us having to replace or reduce these labor sources.

We operate in jurisdictions that have experienced corruption, bribery and other similar practices from time-to-time. We are subject to the Foreign Corrupt Practices Act and similar anti-corruption laws in other jurisdictions, and the failure to comply with these laws could result in substantial penalties.

Furthermore, the practice of utilizing labor based in foreign countries has at times come under increased scrutiny in the United States. Governmental authorities could seek to impose financial costs or restrictions on foreign companies providing services to customers in the United States. Governmental authorities may attempt to prohibit or otherwise discourage our United States-based customers from sourcing services from foreign companies. Some of our customers may require us to use labor based in the United States or cease doing business with Altisource. To the extent that we are required to use labor based in the United States, we may not be able to pass on the increased costs of higher-priced United States-based labor to our customers.

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Risks Related to Our Common Stock

We may never pay cash dividends on our common stock so any returns would be limited to the potential appreciation of our stock.

We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate we will declare or pay any cash dividends for the foreseeable future. In addition, the terms of applicable debt agreements may preclude us from paying dividends. Any return to ~~stockholders~~shareholders could therefore, be limited to potential stock appreciation.

Our smaller market capitalization could increase the volatility, and limit investors in and analyst coverage, of our stock.

As a company with a relatively small market capitalization, our stock may be subject to increased volatility compared to larger, more established companies. Small-cap stocks can experience greater price fluctuations due to lower trading volumes, which may result in limited liquidity for shareholders. This volatility may make it more difficult for investors to buy or sell shares at favorable prices. Additionally, our market capitalization may make it harder to access capital through public markets or secure favorable financing terms. Furthermore, the limited liquidity and volatility of our stock may restrict certain institutional investors, such as mutual funds or pension funds, from investing, as they may have policies that exclude smaller-cap companies.

Moreover, as a small-cap company, we may not receive the same level of analyst coverage as larger firms, which can lead to a lack of publicly available information about our performance, prospects, and financial health. This lack of visibility may make it more difficult for investors to make informed decisions about our stock. As a result, potential investors should be aware that investing in small-cap companies involves heightened risks, including the possibility of significant losses, limited investor participation, and limited access to research and analysis.

Owners of our securities could be diluted.

Issuing new shares of common stock or other securities could dilute the economic and voting interests of current shareholders. We have 250 million authorized shares of common stock, approximately 8711.63 million of which were outstanding as of ~~March~~February 2526, ~~2025~~2026. The unissued shares are available for future issuance by our Board of Directors. Our Board of Directors has the authority to issue shares without requiring shareholder approval and may, under certain circumstances, limit or cancel the preferential subscription rights of shareholders. If the Board exercises this authority, shareholders may not have the opportunity to participate in future issuances on a pro rata basis and could have their economic and voting interests diluted.

In addition, onas ~~February~~of 4February 26, ~~2025~~2026, ~~we announced~~ the ~~proposed issuance under Luxembourg law of transferable~~ Stakeholder Warrants tocould ~~purchase,~~be ~~subject~~exercised tofor ~~certain conditions,~~ up to approximately ~~114~~14.53 million shares of common stock ~~for~~at an implied per share exercise price of $19.205998 per share. In addition, as of ~~March~~February 2526, ~~2025~~2026, we had approximately 70.46 million RSUs outstanding. Outstanding warrants and RSUs entitle the holders thereof to receive shares of our common stock upon the exercise of the warrants or the vesting of RSUs. If the Stakeholder Warrants are exercised and/or the outstanding RSUs vest, a significant number of additional shares of common stock will be issued, which could adversely impact the trading price of our common stock and would further dilute the economic and voting interests of existing shareholders. Similarly, any future equity grants to employees, executives, or directors under the Equity Plan, or issuance of additional warrants, if exercised, would increase the number of outstanding shares, further diluting the ownership percentage of existing shareholders.

~~The market price and trading volume of our stock may be volatile.~~20

~~The~~Table ~~recent Transactions, including the issuance~~ of ~~the Debt Exchange Shares and the proposed issuance of Stakeholder Warrants could result in increased volatility in the price and trading volume of our common stock.~~Content

Itimpact ~~is expected that~~ the ~~Lock-Up~~trading onprice ~~the~~of ~~Debt~~our ~~Exchange~~common ~~Shares~~stock ~~will~~and ~~expire~~would onfurther ~~September~~dilute ~~17,~~the ~~2025.~~economic ~~The~~and ~~potential~~voting ~~for~~interests ~~large-scale resales~~ of ~~the~~existing ~~Debt~~shareholders. ~~Exchange Shares in the public market~~Similarly, orany ~~the~~future ~~perception~~equity ~~that~~grants ~~such~~to ~~sales~~employees, ~~could occur~~executives, ~~may~~or ~~contribute~~directors tounder ~~significant fluctuations in~~ the ~~trading~~Equity ~~volume~~Plan, ~~and~~or ~~trading~~issuance ~~price~~ of ~~our~~additional ~~common~~warrants, ~~stock.~~if ~~Volatility~~exercised, inwould ~~our~~increase ~~stock~~the ~~could~~number ~~negatively~~of ~~affect~~outstanding ~~investor~~shares, ~~confidence~~further ~~and~~diluting ~~impair~~the ~~our~~ownership ~~ability~~percentage toof ~~raise~~existing ~~additional capital in future equity financings~~shareholders.

~~Additionally,~~The ~~the existence of the Stakeholder Warrants may further affect trading patterns and~~ market price ~~dynamics. If the VWAP Condition is satisfied~~ and ~~the~~trading ~~market~~volume ~~price~~ of our common stock ~~exceeds~~and ~~the Implied Per Share Exercise Price of the~~ Stakeholder Warrants, ahas ~~substantial~~been ~~number~~and ofmay ~~shares~~continue ~~could~~to be ~~issued upon exercise of the Stakeholder Warrants~~volatile. ~~The potential for such issuances could create an overhang on our stock, adversely affecting trading volume and market price.~~

21The price of our common stock has fluctuated significantly, and it may continue to do so. As of February 26, 2026, the closing price of our common stock on the Nasdaq Global Select Market was $7.94. From May 28, 2025 (the first day of trading of our common shares after we consolidated our common shares at a ratio of 1-for-8) to February 26, 2026, the closing price of our common stock on the Nasdaq Global Select Market ranged from a high of $15.04 to a low of $4.34. The price of our common stock may continue to fluctuate due to a variety of factors, including those set forth in this Item 1A of this Annual Report Form 10-K (this “Form 10-K”).

~~Table~~The resale of ~~Contents~~the Debt Exchange Shares has been registered under the Securities Act of 1933, as amended, on a registration statement filed with the SEC (the “Resale Registration Statement”), which covers the resale of up to 7,224,028 of our common shares, or approximately 66% of our outstanding common shares as of December 31, 2025. Accordingly, the Debt Exchange Shares may be freely sold pursuant to that Resale Registration Statement. Further, certain persons that may sell shares of our common stock pursuant to the Resale Registration Statement beneficially own a significant percentage of our common stock. Matthew Winkler, a member of our Board of Directors, is a Managing Director at Benefit Street Partners, LLC (“BSP”), which is an investment adviser registered with the SEC pursuant to the Investment Advisers Act of 1940, as amended. BSP serves, either directly or through one or more of its advisory affiliates, as the investment adviser to several funds that beneficially own in the aggregate 3,945,232 shares of our common stock (including 2,173,114 shares of common stock issuable upon exercise of Stakeholder Warrants), or approximately 36% of our common stock as of December 31, 2025. Mary C. Hickok, a member of our Board of Directors, serves as Managing Director at Deer Park Road Management, LP (“Deer Park”), which is the investment manager for certain funds that beneficially own 3,340,589 shares of common stock (including 1,855,050 shares of common stock issuable upon exercise of Stakeholder Warrants), or approximately 30% of our common stock as of December 31, 2025. The resale of many of the shares beneficially owned by BSP and Deer Park are covered by the Resale Registration Statement.

WeThe ~~may~~potential ~~take~~for ~~advantage~~large-scale resales of ~~specified~~the ~~reduced~~Debt ~~disclosure~~Exchange ~~requirements~~Shares ~~applicable~~by tosignificant ashareholders ~~“smaller~~or ~~reporting~~otherwise ~~company”~~in the public market, or athe ~~“non-accelerated~~perception ~~filer”~~that ~~under~~such ~~Regulation~~sales ~~S-K~~could occur, ~~and~~may contribute to significant fluctuations in the ~~information~~trading ~~that~~volume weand ~~provide~~trading toprice ~~stockholders~~of ~~may~~our becommon ~~different~~stock. ~~than~~Volatility ~~they~~in ~~might~~our ~~receive~~stock ~~from~~could ~~other~~negatively ~~public~~affect ~~companies~~investor confidence and impair our ability to raise additional capital in future equity financings.

Additionally, the existence of the Stakeholder Warrants may further affect trading patterns and market price dynamics. If the market price of our common stock exceeds the Implied Per Share Exercise Price of the Stakeholder Warrants, a substantial number of shares could be issued upon exercise of the Stakeholder Warrants. The potential for such issuances and the resulting dilution could adversely affect trading volume and market price.

In addition, the trading prices of the Stakeholder Warrants has also fluctuated significantly. As of February 26, 2026, the closing prices of the Cash Exercise Stakeholder Warrants and the Net Settle Stakeholder Warrants and the on the Nasdaq Global Select Market were $0.33 and $0.39, respectively. From May 7, 2025 (the first day of trading of Stakeholder Warrants) to February 26, 2026, the closing price of the Cash Exercise Stakeholder Warrants ranged from a high of $1.13 to a low of $0.21 and the closing price of the Net Settle Stakeholder Warrants ranged from a high of $1.15 to a low of $0.28, in each case, on the Nasdaq Global Select Market.

We may take advantage of specified reduced disclosure requirements applicable to a “smaller reporting company” or a “non-accelerated filer” under Regulation S-K, and the information that we provide to shareholders may be different from the information they might receive from other public companies.

We are a “smaller reporting company,” as defined under Item 10(f)(1) of Regulation S-K. As such, we intend to take advantage of reduced disclosure and other requirements applicable to smaller reporting companies, including scaled disclosure requirements, simplified executive compensation disclosures, and certain other reduced disclosure obligations in our SEC filings.

Because of our status, as a “non-accelerated filer” under SEC rules we are not required to comply with Section 404(b) of the Sarbanes-Oxley Act of 2002, which requires an independent registered public accounting firm to provide an attestation report on management’s assessment of the Company’s internal control over financial reporting.

We intend to utilize these allowances until we no longer qualify as a smaller reporting company or are no longer a “non-accelerated filer”, as applicable. Therefore, the information we provide stockholders may differ from that provided by other public companies which are not smaller reporting companies. If some investors find our shares less attractive as a result, our stock could experience reduced trading activity and increased volatility in the market price.21

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We intend to utilize these allowances until we no longer qualify as a smaller reporting company or are no longer a “non-accelerated filer”, as applicable. Therefore, the information we provide shareholders may differ from that provided by other public companies which are not smaller reporting companies. If some investors find our shares less attractive as a result, our stock could experience reduced trading activity and increased volatility in the market price.

We are not currently eligible to file new short form registration statements on Form S-3 for the primary offering of securities, except in limited circumstances. As a result, our ability to raise capital on favorable terms or at all may be impaired.

Form S-3 permits eligible issuers to conduct registered offerings using a short form registration statement that allows the issuer to incorporate by reference its past and future filings and reports made under the Exchange Act. In addition, Form S-3 enables eligible issuers to conduct primary offerings “off the shelf” under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). The shelf registration process, combined with the ability to forward incorporate information, allows issuers to avoid delays and interruptions in the offering process and to access the capital markets in a more expeditious and efficient manner than raising capital in a standard registered offering pursuant to a registration statement on Form S-1.

We registered the sale of $100,000,000 of common stock and warrants on Form S-3 on December 12, 2022 (the “Form S-3”), of which $62.5 million remains available as of the date of the filing of this Form 10-K. However, our public float was less than $75.0 million as of the date of filing of this Annual Report on Form 10-K. As a result, under General Instruction I.B.6 to Form S-3, the amount of funds we can raise through primary public offerings of securities, in any 12-month period using our registration statement on Form S-3 is limited to one-third of the aggregate market value of the shares of our common stock held by our non-affiliates. We are subject to this limitation until such time as our public float exceeds $75.0 million. If we are required to file a new registration statement on another form, we may incur additional costs and be subject to delays due to review by the SEC. As of ~~March 25~~February 26, ~~2025~~2026, our public float (i.e., the aggregate market value of our outstanding equity securities held by non-affiliates) was approximately $6218.59 million, based on 542.34 million shares of outstanding common stock held by non-affiliates and on the closing price of $17.1594 per share of our common stock ~~on February 13~~, ~~2025 (a date within 60 days of the date hereof),~~ as calculated in accordance with General Instruction I.B.6 of Form S-3. In accordance with General Instruction I.B.6 of Form S-3, we can only sell $206.83 million (one-third of our public float) of common stock and warrants pursuant to the Form S-3 in a 12-month period, and that amount will not increase unless the market value of the shares of our common stock held by our non-affiliates increases.

Volatility in the trading price of our common stock or other securities could result in litigation.

In the past, following periods of volatility in the market price of a company’s securities, ~~stockholders~~shareholders have often instituted class action securities litigation against those companies. Such litigation, if instituted, could result in substantial costs and divert management’s attention adversely affecting profitability and reputation.

We may be delisted from Nasdaq, which could negatively impact the value of our common stock and our business.

On December 19, 2024, the Company received a letter (the “Bid Price Notice”) from The Nasdaq Stock Market (“Nasdaq”) notifying the Company that, because the closing bid price for its common stock has been below $1.00 per share for 30 consecutive business days, it no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Global Select Market. Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Rule”), and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Rule exists if the deficiency continues for a period of 30 consecutive business days. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until June 17, 2025, to regain compliance with the Minimum Bid Price Rule. The Bid Price Notice states that the Nasdaq staff will provide written confirmation that the Company has achieved compliance with the Minimum Bid Price Rule if at any time before June 17, 2025,

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the bid price of the Company’s common stock closes at $1.00 per share or more for a minimum of ten consecutive business days.

In the event the Company is not in compliance with the Minimum Bid Price Rule by June 17, 2025, the Company may be afforded a second 180 calendar day grace period. To qualify, the Company must submit an application to transfer the listing of its common stock to the Nasdaq Capital Market, which requires the Company to meet the continued listing requirement for the market value of publicly held shares (“MVPHS”) and all other initial listing standards for the Nasdaq Capital Market, other than the Minimum Bid Price Rule. There is no assurance that the Company will be able to meet the Nasdaq Capital Market continued listing requirements with respect to MVPHS or all other Nasdaq Capital Market initial listing requirements if it does not regain compliance with the Minimum Bid Price Rule before June 17, 2025.

If necessary, the Company intends to conduct a reverse stock split in an effort to regain compliance with the Minimum Bid Price Rule. While a reverse stock split could help the Company regain compliance with the Minimum Bid Price Rule, it carries several risks. Reverse stock splits can be perceived negatively by the market, potentially leading to a decline in the price of our common stock and the Warrants. Additionally, a reverse stock split reduces the number of shares outstanding, which may decrease the trading volume and liquidity of our common stock. There is no assurance that a reverse stock split would result in an initially higher or sustained higher price for our common stock, and the price of our common stock could decline again, leading to further non-compliance with listing standards.

If we fail to regain compliance with the Minimum Bid Price Rule by June 17, 2025 and we are unable to meet the requirements to transfer the listing of our common stock to the Nasdaq Capital Market, our common stock (and the Warrants, to the extent they are listed on Nasdaq) will likely be delisted from Nasdaq, which could significantly reduce the liquidity and marketability of our common stock (and the Warrants, to the extent they are listed on Nasdaq). A delisting could result in increased volatility, reduced market interest, and difficulty in attracting institutional shareholders and investors who are restricted from investing in stocks not listed on a major securities exchange. Additionally, delisting may adversely impact employee retention and recruitment, our ability to raise capital, and our relationships with customers and business partners.

Risks Related to Shareholder Structure and Governance

WeThe ~~could~~individual ~~have~~and ~~conflicts~~collective ofinterests ~~interest~~and ~~with~~objectives ~~certain~~of ~~shareholders,~~the lenders, ~~members~~under ofour ~~management~~New ~~and~~Facility which are also our ~~Board~~shareholders of(collectively, ~~Directors.~~the ~~These~~“Lender ~~conflicts~~Shareholders”) may beconflict ~~resolved~~with inthose aof ~~manner~~our ~~adverse~~other ~~to us~~shareholders.

~~Significant~~As ~~shareholders~~a result of the Transactions, the Lenders received approximately 63.5% of our outstanding common stock (including RSUs granted to management) ~~and~~as ~~members~~of the closing of the ~~Board~~Transactions. The individual and collective interests and objectives of ~~Directors~~Lender Shareholders may ~~have~~not ~~direct~~align or ~~beneficial~~may ~~ownership~~conflict ~~interests~~with inthose ~~certain~~ of our ~~clients~~other shareholders. Lender Shareholders may, as shareholders or ~~vendors~~lenders, take actions or support decisions that prioritize debt recovery over equity appreciation, pursue strategies that prioritize short-term liquidity at the expense of long-term growth, or resist initiatives requiring additional capital investment that could dilute their ownership or delay repaying of the debt.

~~These~~Because ~~relationships~~the ~~and~~Lender ~~interests~~Shareholders ~~could~~collectively ~~create,~~hold ora ~~appear~~significant toportion ~~create~~of our outstanding common stock, ~~conflicts~~they ofmay ~~interest~~exert insignificant ~~matters~~influence ~~involving~~over orthe ~~affecting~~composition usof our Board of Directors, operational decisions, and ~~our~~key business ~~dealings~~initiatives, which may not align with ~~certain~~the interests of ~~our~~non-debt-holding ~~clients~~shareholders. orIn ~~vendors~~particular, ortwo directors currently serving on our Board were nominated by the Lender Shareholders pursuant to one-time nomination rights granted in connection with the Transactions and were elected at our ~~lenders~~most recent annual meeting of shareholders. One of these directors is Matthew Winkler, a Managing Director at BSP, which through its affiliates, is a Lender Shareholder. In addition, a third director, Mary C. Hickok, is employed by Deer Park, which, through its affiliates is a Lender Shareholder.

As a result of the Transactions, the Lenders received approximately 63.5% of our outstanding common stock. The individual and collective interests and objectives of the lenders under our New Facility who are also our shareholders (collectively, the “Lender Shareholders”) may not align or may conflict with those of our other shareholders. Lender Shareholders may, as shareholders or lenders, take actions or support decisions that prioritize debt recovery over equity appreciation, pursue strategies that prioritize short-term liquidity at the expense of long-term growth, or resist initiatives requiring additional capital investment that could dilute their ownership or delay repaying of the debt.

The Lender Shareholders may exert significant influence over the composition of our Board of Directors, operational decisions, and key business initiatives, which do not align with the interests of non-debt-holding shareholders. In particular, two Lender Shareholders (one of whom beneficially owns approximately 22.6% of our common stock) each have a one-time right to nominate one member of our Board of Directors at our next meeting of shareholders at which directors will be elected.

Lender Shareholders may seek to implement governance or leadership changes that could create uncertainty or disruption to our business operations. The Lender Shareholders, who in the aggregate control a majority of the shares of common stock, could create governance challenges and increase the risk of conflicts in decision-making, particularly in areas such as corporate strategy, capital allocation, and management oversight.

There can be no assurance that the interests of Lender Shareholders will align with the long-term interests of the Company or all of its other stakeholders. Potential conflicts between the Lender Shareholders and non-debt-holding shareholders could complicate decision-making and negatively impact our operations. Non-debt-holding shareholders may have limited ability to influence the direction or governance of the company.

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There is no assurance that we will be able to implement or maintain measures to manage these potential conflicts effectively. Even if such measures are in place, they may not fully mitigate all conflicts of interest, and any resolution could be less favorable to us than if we were dealing with unrelated third parties.

Risks Related to Financing, Our Indebtedness and Capital Structure

If we are unable to generate sufficient cash flow or access the capital markets or our borrowing capacity is reduced, our liquidity and competitive position would be negatively affected.

An extended period of reduced demand for all or certain of our services would negatively impact our cash flow such that we may need to use unrestricted cash to satisfy our obligations, which would reduce our cash balance negatively impacting our liquidity.

In addition, our liquidity could be adversely affected by ~~any~~an inability to access the capital markets, volatility in the capital markets, unforeseen outflows of cash, funding for contingencies and increased regulatory liquidity requirements.

Our ability to borrow money could be limited, or our cost of borrowing could increase, due to volatility in the capital markets, worsening terms on which credit is available or limitations in our loan agreements. In addition, our financial results, reduced revenue or cash flow, or volatility in the markets which we support, could negatively impact our customer and prospective customer relationships, as well as our ability to borrow or our ability to continue to satisfy the covenants and terms of our loan agreements. If we were to have a default under our loan agreements, we would not be able borrow additional funds under our existing agreements and our lenders could seek to enforce the remedies available to them under our loan agreements. A reduction in our ability to borrow funds to support our operations or a reduction in cash flow would also reduce our ability to pursue our business strategy to diversify and grow our customer base. Significant litigation, regulatory penalties, indemnification obligations, or settlements could require substantial cash outflows, impair liquidity, reduce capital available for operations, or cause us to breach covenants under our loan agreements.

Our level of debt and the variable interest rate on our New Facility and the Super Senior Facility make us sensitive to the effects of our financial performance and interest rate increases; our level of debt and provisions of the New Facility and the Super Senior Facility could limit our ability to react to changes in the economy or our industry.

Our term loans under the New Facility and Super Senior Facility ~~exposes~~expose us to potential risks because a portion of our cash flows from operations and current cash on the balance sheet is dedicated to servicing our debt and is not available for other purposes. The term loans under the New Facility and the Super Senior Facility are secured by virtually all of our assets.

Our ability to raise additional debt is limited, and in many circumstances, is subject to lender approval and could require modifications to certain loan agreements. The provisions of the New Facility and the Super Senior Facility could have other negative consequences to us, including the following:

•limiting our ability to borrow money for our working capital, capital expenditures, debt service requirements, or other general corporate purposes;

•limiting our flexibility in planning for, or reacting to, changes in our operations, business, or the industry in which we compete;

•if we have Consolidated Excess Cash Flow, requiring us to prepay the debt by the lesser of (a) 75% of the Consolidated Excess Cash Flow and (b) the amount that would leave the Company with no less than $30 million of total cash on the balance sheet to prepay outstanding debt, beginning with the fiscal year ending December 31, 2025;

•to the extent we receive proceeds from the exercise of the Cash Exercise Stakeholder Warrants, requiring us to use 95% of the proceeds to prepay debt; and

•placing us at a competitive disadvantage by limiting our ability to invest in our business.

Our ability to make payments on our indebtedness depends on our ability to generate cash in the future. As a result of ~~the~~ low default, foreclosure and REO levels, and ~~declining~~lower origination volumes, incompared ~~the~~to ~~recent~~historical ~~rising interest rate environment~~levels, our cash flows were and remain severely impacted. There can be no assurance that we will be able to achieve historical levels of revenues and cash flows (adjusted for businesses sold or discontinued). If we do not generate sufficient cash flows and do not have sufficient cash on hand to meet our debt service and working capital requirements, we may need to seek additional financing, raise equity, or sell assets, and our ability to take these actions may be limited by the terms of the New Facility and the Super Senior Facility or the market.

In addition, the New Facility and the Super Senior Facility contain covenants that limit our flexibility in planning for, or reacting to, changes in our business and our industry, including limitations on incurring additional indebtedness, making ~~investments, adding new lines of service, disposing or selling of assets or equity, granting liens, and merging or consolidating~~

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investments, adding new lines of service, disposing or selling of assets or equity, granting liens, and merging or consolidating with other companies. Complying with these covenants may impair our ability to finance our future operations or capital needs or to engage in other favorable business activities.

Our failure to comply with the covenants or terms contained in the New Facility or the Super Senior Facility, including as a result of events beyond our control, could result in an event of default.

The New Facility and the Super Senior Facility require us to comply with various operational, reporting and other covenants or terms including, among other things, limiting us from engaging in certain types of transactions. If we do not have appropriate controls, or the controls we implement fail or are not effective, we could experience an event of default. If we experience an event of default that is not cured or waived, it could result in the debt being called and immediately due and payable in full. Our assets or cash flows may not be sufficient to fully repay the accelerated debt and we may not be able to refinance or restructure the payments on such debt, which could lead to a going concern uncertainty, which in turn could provide certain of our customers the ability to terminate our agreements. An event of default would allow the holders of the defaulted debt to cause all amounts outstanding with respect to that debt to be immediately due and payable and permit the lenders to execute on applicable security interests.

We may be unable to repay or refinance the balance of our loans under the New Facility or the Super Senior Facility ~~upon~~prior to maturity, particularly if cash from operations ~~fails~~is tonot ~~improve~~sufficient, assets are not readily available for sale, or we are unable to refinance on favorable terms or at all.

The New Facility requires us to repay the outstanding balance by April 30, 2030. The Super Senior Facility requires us to repay the outstanding balance by February 19, 2029.

The New Facility and the Super Senior Facility impose restrictions on our ability to incur additional indebtedness or refinancing.

There can be no assurance that our cash from operations, cash balances, or other assets readily available for sale will be sufficient to meet our debt obligations. If we are unable to generate sufficient cash flow or refinance our debt under favorable terms, we may be required to sell assets, raise equity, or seek alternative financing. There can be no assurance that such actions will be available to us, or that we will be able to refinance the remaining debt on acceptable terms or at all.

We may not be able to refinance our then-existing indebtedness when it becomes due or obtain alternative financing on terms that are acceptable to us or at all. If we refinance our then-existing debt, the refinancing could be on less favorable terms which would further limit our ability to finance and operate our business.

We could be forced to sell assets or reduce costs under unfavorable circumstances to make up for any shortfall in our payment obligations. We may be unable to sell assets or reduce costs quickly enough or for sufficient consideration to enable us to meet our obligations. Failure to meet our debt service obligations would result in an event of default under our loan agreements which, if not cured or waived, could result in the holders of the defaulted debt causing all outstanding amounts with respect to that debt to be immediately due and payable and permit lenders to execute applicable security interests. If we were to default on our debt, our lenders could take action adverse to our interests under the loan agreements, including seeking to take possession of applicable collateral, negatively impacting our future operations or ability to engage in other favorable business activities. Additionally, a default could ~~trigger~~result in conditions triggering termination events under certain of our client or vendor agreements, ~~including the Rithm Brokerage Agreement with Rithm,~~ which could negatively impact our revenue, cash flow, or ability to provide services. If we are unable to agree upon a resolution with our lenders, we might seek applicable legal protections, including under bankruptcy law, which could further provide certain of our customers or vendors the ability to terminate our agreements.

We have a significant net operating loss recognized by ~~one of~~ our Luxembourg ~~subsidiaries, Altisource S~~entities.à ~~r.l.~~ We may not be able to fully utilize this deferred tax asset before the net operating loss expires.

InAs ~~connection with a merger~~ of ~~two of the Company’s wholly owned subsidiaries in~~ December ~~2017~~31, ~~which~~2025, ~~was~~our ~~recognized~~Luxembourg atentities ~~fair~~have ~~value, a~~ net operating ~~loss~~losses of approximately $12.31 billion ~~with a 17-year life was generated~~, creating a deferred tax asset of $~~342~~498.69 million. ~~During~~The ~~2019, the~~ Company has recognized a full valuation allowance with respect to this deferred tax asset. IfThe ~~Altisource~~net ~~S.à~~operating rlosses are scheduled to expire between the years 2034 and 2042.l. isIf our Luxembourg entities are unable to generate sufficient pretax income byprior ~~2034~~to the expiration of the net operating losses, the Company may not be able to fully utilize this deferred tax asset. In addition, changes in our structure or operations could prevent us from fully realizing some or all of the benefit of such deferred tax asset.

We have significant investments in goodwill and intangible assets recorded as a result of prior acquisitions and an impairment of these assets would require a write-down that would reduce our net income.

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As a result of prior investments, we have significant goodwill and intangible assets recorded in our financial statements. Goodwill and intangible assets are assessed for impairment annually or sooner if circumstances indicate a possible impairment. Factors that could lead to impairment of goodwill and intangible assets include significant under-performance relative to historical or projected future operating results, a significant decline in our stock price and market capitalization and negative industry or economic trends, among other indications of impairment. If the recorded values of goodwill and intangible assets are impaired, any such impairment would be charged to earnings in the period of impairment. In the event of significant volatility in the capital markets or a worsening of current economic conditions, we may be required to record an impairment charge, which would adversely affect our business and results of operations.

Cash, cash equivalents and escrow funds we hold at financial institutions could be lost and not recoverable.

We hold our cash and cash equivalents, including customer deposits held in escrow accounts pending completion of certain real estate activities, at various financial institutions. These cash balances expose us to purposeful misappropriation of cash by employees or others and unintentional mistakes resulting in a loss of cash which may not be recoverable. Cash may be invested in certain securities or products which could lose value. Cash deposits could exceed amounts insured by the Federal Deposit Insurance Corporation or other applicable depository insurers.

Amounts that are held in escrow accounts for limited periods of time are not included in the accompanying consolidated balance sheets. We may become liable for funds owed to third parties as a result of purposeful misappropriation of cash by employees or others, unintentional mistakes or the failure of one or more of these financial institutions. There is no guarantee we would recover the funds deposited, whether through depository insurer coverage, private insurance or otherwise.

Fluctuations in currency exchange rates could expose us to losses.

We have operations in India, Luxembourg and Uruguay which may result in us being party to transactions denominated, or incurring obligations, in currencies other than the United States dollar, including, for example, payroll, taxes, facilities-related expenses. Weakness of the United States dollar in relation to these applicable currencies (e.g., Euro, Indian rupee, Uruguayan peso) may increase our costs.

Risks Relating to Luxembourg Organization and Ownership of Our Shares

We are a Luxembourg company. The rights of shareholders under Luxembourg law may differ in certain respects from the rights afforded to shareholders of companies organized under laws in other jurisdictions. Luxembourg may also impose additional ~~limitations and~~ requirements ~~on company actions~~ which may limit our ability to manage the company and respond to market conditions.

We are a public limited liability company (société anonyme) organized and existing under the laws of, and headquartered in, Luxembourg. As a result, Luxembourg law and our amended and restated articles of incorporation, as amended from time to time (“Articles”) govern the rights of shareholders. The rights of shareholders under Luxembourg law may differ from the rights of shareholders of companies incorporated in other jurisdictions. A significant portion of our assets are owned outside of the United States. It may be difficult for our investors to obtain and enforce, in the United States, judgments obtained in United States courts against us or our directors based on the civil liability provisions of the United States securities laws or to enforce, in Luxembourg, judgments obtained in other jurisdictions including the United States.

As a Luxembourg company, we ~~face~~are ~~legal~~subject ~~requirements~~to ~~and~~Luxembourg ~~limitations~~requirements ~~on company governance and actions~~ which may ~~negatively~~limit ~~impact~~ our ~~ability~~operational toflexibility ~~manage~~and ~~the~~affect ~~company~~how ~~and~~we ~~respond~~manage toand ~~market~~govern ~~conditions~~the Company.

Our corporate governance and activities are subject to Luxembourg’s legal and regulatory framework. ~~Certain~~Luxembourg ~~legal~~law ~~limitations~~imposes ~~and~~certain ~~regulatory~~ requirements ~~may~~regarding ~~impose~~corporate ~~constraints~~structure, onboard ~~how~~composition, wedirector ~~operate~~duties and ~~actions~~the ~~which~~conduct weand ~~may~~location ~~undertake.~~of ~~These~~board ~~may~~and ~~include~~shareholder meetings. In addition, ~~but~~evolving ~~are~~substance ~~not~~expectations ~~limited~~may torequire that certain strategic decisions, ~~restrictions~~management ~~related~~functions toand ~~corporate~~oversight ~~governance,~~activities ~~financial~~be ~~reporting,~~conducted ~~tax~~in ~~obligations~~Luxembourg, and ~~compliance~~that ~~with~~directors ~~European~~or ~~Union~~officers ~~directives~~maintain an appropriate level of local presence and ~~regulations~~involvement.

~~Luxembourg~~These ~~law~~requirements ~~imposes~~may ~~specific~~limit ~~requirements~~our ~~regarding~~management ~~the~~and ~~structure~~operational ~~and~~flexibility, ~~governance~~present challenges to attendance of ~~companies~~stockholders ~~which~~annual ~~could~~or ~~limit~~extraordinary ~~flexibility~~meetings inof ~~decision-making~~the orCompany, ~~lead~~and tomay ~~increased~~increase operational complexity and costs. Failure to comply with Luxembourg legal requirements could result in regulatory scrutiny, tax challenges, reputational harm or other adverse consequences.

Additionally, Luxembourg ~~has~~maintains a rigorous legal framework ~~concerning~~relating to anti-money laundering (AML) and counter-terrorism financing (CTF), ~~regulations.~~including ~~Compliance~~oversight ~~with~~of ~~this~~corporate ~~framework~~governance ~~can~~and ~~impose~~internal ~~significant~~controls. ~~burdens~~Compliance onwith ~~our~~these ~~corporate~~requirements ~~action~~may ~~and~~ require significant ~~expenditure~~resources ofand ~~resources~~ongoing monitoring. Non-compliance ~~with these laws~~ could result in ~~legal~~ penalties, ~~reputational~~enforcement ~~damage~~actions, or restrictions on ~~doing~~ business inactivities ~~certain sectors~~ or ~~regions~~reputational damage.

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Changes toin Luxembourg’s ~~legal~~law, ~~environment~~regulatory ~~or an~~ interpretation, oftax ~~laws~~guidance, inor aincreased ~~manner~~enforcement ~~unfavorable~~focus toon ~~our~~corporate ~~operations,~~substance ~~the~~or; ~~company~~director ~~could~~presence ~~face~~in ~~increased~~Luxembourg, ~~legal~~governance ~~and~~oversight or operational ~~risks,~~decision-making ~~higher~~could increase our compliance ~~costs~~obligations, orlimit ~~limitations~~our onoperational ~~business activities~~flexibility, ~~which~~or ~~may~~ adversely ~~impact~~affect our financial ~~results~~condition, ~~strategic~~results ~~objectives,~~of operations and growth prospects.

A significant challenge of the Luxembourg tax regime or of its interpretation by the Luxembourg tax authorities, or its application ofto us or our business could have a negative impact us.

We received and historically operated under a tax ruling from the Luxembourg tax authorities, which would have expired in 2019 unless extended or renewed. In connection with an internal reorganization by the Company during 2017, we no longer operate under this tax ruling. The European Commission (“EC”) has initiated investigations into several EU member states, including Luxembourg, to determine whether these EU member states have provided tax advantages to companies pursuant to tax rulings or otherwise on a basis not allowed by the EU. While the EC’s investigations continue, it has concluded that certain companies in certain EU member states, including Luxembourg, have been provided such tax advantages. The EC is requiring these EU member states to recover from certain companies the prior year tax benefits they received.

Changes in trade policies, including tariffs, taxes or restrictions on foreign service providers, could adversely affect our business.

As a Luxembourg-based company providing services primarily to customers located in the United States, we are subject to risks related to changes in trade, tax and tariff policies of the United States or the European Union. Tariffs, trade restrictions, or other protectionist measures affecting us as a non-United States domiciled service provider or owner of intellectual property, our ability to contract with clients or our transfer pricing structure could negatively impact our operations and financial performance. Additionally, new or increased tariffs, cross-border taxation, or regulatory burdens on foreign businesses operating in the United States could increase our costs, reduce our competitiveness, or limit our ability to expand our operations. We may not be able to increase our prices to cover our increases in costs.

Risks Relating to Regulation

Our business and the business of our customers are subject to extensive scrutiny and legal requirements. We, or our services, may fail or be perceived as failing to comply with applicable legal requirements.

Our business and the business of our customers are subject to extensive scrutiny and regulation by federal, state and local governmental authorities including the FTC, the CFPB, the SEC, HUD and state and local agencies, including those which license or oversee certain of our auction, real estate brokerage, mortgage services, trustee services, residential mortgage origination services, title insurance and other insurance services, as well as collection and use of personal information. We also must comply with a number of federal, state and local consumer protection laws. We are subject to various foreign laws and regulations based on our operations or the location of our affiliates as well, including those pertaining to data protection, such as the GDPR. These foreign, federal, state and local requirements can and do change as statutes and regulations are enacted, promulgated or amended. Furthermore, the interpretation or enforcement by regulatory authorities of these requirements may change over time or may not be predictable or consistent with our interpretations or expectations. The creation of new regulatory authorities or changes in the regulatory authorities overseeing applicable laws and regulations may also result in changing interpretation or enforcement of such laws or regulations.

Evolving privacy, data-protection, artificial-intelligence, and automated-decision-making regulations may impose new obligations on our technology and services. These requirements may include restrictions on training-data use, data-minimization mandates, documentation and testing obligations, explainability and transparency requirements, risk assessments, or limitations on automated decision-making. Such regulations continue to develop in the United States and in the European Union and EEA, including under U.S. state privacy and artificial intelligence laws, GDPR, and the EU Artificial Intelligence Act. Compliance may require changes to our technology, processes, or services, may increase operational costs, and may expose us to government inquiries, enforcement actions, or litigation.

If governmental authorities impose new or more restrictive requirements or enhanced oversight related to our services or operations, we may be required to increase or decrease our prices, modify our contracts or course of dealing and/or we may incur significant additional costs to comply with such requirements. Additionally, we may be unable to adapt our services or operations to conform to the new laws and regulations.

Periodically, we are subject to audits and examinations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. Responding to audits, examinations and inquiries will cause us to incur costs, including legal fees or other charges, which may be material in amount, and in addition, may result in management distraction or may cause us to modify or terminate certain services we currently offer. If any such audits, examinations or inquiries result in allegations or findings of non-compliance, we could incur significant penalties, fines, settlements, costs and consent orders that may curtail, restrict or otherwise have an adverse effect on our business.

Regulatory inquiries or determinations of failures to comply with applicable requirements could increase our costs and expose us to sanctions which could include limitations on our ability to provide services or otherwise reduce demand for our services. Furthermore, even if we believe we comply with applicable laws and regulations, we may choose to settle such allegations to avoid the potentially significant costs of defending such allegations and to further avoid the risk of increased damages if we ultimately were to receive an unfavorable outcome, but such settlements may also result in further claims or create issues for 26

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~~Table~~or may cause us to modify or terminate certain services we currently offer. If any such audits, examinations or inquiries result in allegations or findings of ~~Contents~~non-compliance, we could incur significant penalties, fines, settlements, costs and consent orders that may curtail, restrict or otherwise have an adverse effect on our business.

From time to time, we may be subject to costly and time-consuming regulatory or legal proceedings that claim legal violations or wrongful conduct, including claims for violations of consumer protection laws, laws concerning PI or third-party intellectual property rights. These proceedings may involve regulators, customers, our customers’ clients, vendors, competitors, third parties or other large groups of plaintiffs and, if resulting in findings of violations, could result in substantial damages or indemnification obligations. Additionally, we may be forced to settle some claims and change our existing practices, services processes or technologies that are currently revenue generating. Certain regulations to which we are subject provide for potentially significant penalties such that even if we believe we have no liability for the alleged regulatory or legal violations or wrongful conduct, we may choose to settle such regulatory or legal proceedings in order to avoid the potentially significant costs of defending such allegations and to further avoid the risk of increased damages if we ultimately were to receive an unfavorable outcome; however, such settlements may also result in further claims or create issues for existing and potential customers. Such proceedings and settlement could increase our costs and expose us to sanctions, including limitations on our ability to provide services, or otherwise reduce demand for our services.

Failure to comply with applicable sanctions, including blocking certain activities in sanctioned countries, could expose us to penalties and other adverse consequences.

Our business activities may be subject to sanctions laws in the jurisdictions in which we operate, including restrictions or prohibitions on transactions with, or on dealing in funds transfers to or from certain embargoed jurisdictions. We have implemented internet protocol (“IP”) address blocking and screening mechanisms to promote compliance with US sanctions rules and regulations, although the blocking and screening mechanisms may not be able to completely block all unwanted IP access. A determination that we have failed to comply with applicable sanctions, whether knowingly or inadvertently, could result in the imposition of substantial penalties, including enforcement actions, fines, and civil and/or criminal penalties, and may adversely affect our business.

If we fail to timely make required disclosure filings with the United States Department of Treasury Financial Crimes Enforcement Network, we could be subject to penalties.

We operate as a title insurance agent through one or more subsidiaries. As a title insurance agent, we are contractually required by certain insurance underwriters to make Financial Crimes Enforcement Network Currency Transaction Report filings with the U.S. Department of the Treasury in connection with cash real estate transactions in specified United States jurisdictions which satisfy certain requirements (the “Filing Requirements”). Filings pursuant to the Filing Requirements must be made within a specified time period after a subject transaction closes and must be accompanied by certain information concerning the applicable transaction. If our procedures fail to identify transactions which are subject to the Filing Requirements, or if we fail to make required filings or fail to provide the required transaction information, we could be subject to civil, criminal and monetary penalties. The failure to satisfy the Filing Requirements could also cause us to be in breach of our agreements with the title insurance underwriter and could subject us to liability and lead to termination of such agreements.

We are subject to licensing and regulation as a provider of certain services. If we fail to maintain our licenses or if our licenses are suspended or terminated, we may not be able to provide certain of our services. In addition, the lack of certain licenses in one or more jurisdictions could cause us to breach applicable contracts.

We are required to have and maintain licenses as a provider of certain services including, among others, services as a residential mortgage origination underwriter, valuation provider, appraisal management company, asset manager, property manager, title insurance agent, insurance broker and underwriter, real estate broker, auctioneer, foreclosure trustee and credit report provider in a number of jurisdictions. Our employees and subsidiaries may be required to be licensed by various state or regulatory commissions or bodies for the particular type of service provided and to participate in regular continuing education programs. If one or more of our licenses are lost, revoked, expire or limited, or if we fail to maintain or otherwise surrender one or more such license, we may be prohibited from doing business in certain markets. Further, certain of our agreements require that we possess and maintain certain licenses. The failure to hold such licenses may result in us breaching certain agreements, which could cause us to be subject to claims for damages, termination of applicable agreements or unable to obtain inputs required for certain of our services.

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possess and maintain certain licenses. The failure to hold such licenses may result in us breaching certain agreements, which could cause us to be subject to claims for damages, termination of applicable agreements or unable to obtain inputs required for certain of our services.

A violation by our customers of applicable legal requirements in the selection or use of our services could generate legal liability for us.

Certain of our services are provided at the direction and pursuant to the identified requirements of our customers, including property preservation, inspection, title, valuations, brokerage, auction, foreclosure and eviction services that are triggered by information provided by our customers. The failure of our customers to properly identify or account for regulatory requirements applicable to the use of our services, in selecting appropriate services for the intended purposes, or in specifying how services are rendered could expose us to significant penalties, fines, litigation, settlements, costs and consent orders.

28Our services, regulatory obligations and tax compliance requirements expose us to significant penalties, litigation, customer loss and increased costs.

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information provided by our customers. The failure of our customers to properly identify or account for regulatory requirements applicable to the use of our services, in selecting appropriate services for the intended purposes, or in specifying how services are rendered could expose us to significant penalties, fines, litigation, settlements, costs and consent orders.

Certain of our customers are subject to governmental oversight, regulations, orders, judgments or settlements which may impose certain obligations and limitations on their use of our services.

Participants in the industries in which we operate are subject to a high level of oversight and regulation. The failure of our services to meet applicable legal requirements could subject us to civil and criminal liability, loss of licensure, damage to our reputation, significant penalties, fines, settlements, adverse publicity, litigation, including class action lawsuits or administrative enforcement actions, costs and consent orders against us or our customers that may curtail or restrict our business as it is currently conducted. Such failures could also cause customers to reduce or cease using our services.

Certain of our customers are subject to vendor oversight requirements. As such, we are subject to oversight by our customers. If we do not meet the standards established by or imposed upon our customers, regulators allege that services provided by Altisource fail to meet applicable legal requirements, or if any other oversight procedures result in a negative outcome for Altisource, we may lose customers, may no longer be granted referrals for certain services, or may have to conform our business to address these standards.

The tax regulations, and the interpretation thereof, in the countries, states and local jurisdictions in which we operate periodically change, which may adversely affect our results due to higher taxes, interest and penalties, or our inability to utilize operating losses or other tax credits available to us.

Certain of our subsidiaries provide services in the United States, India and ~~several~~ other countries. Those jurisdictions are subject to changing tax environments, which may result in higher operating expenses or taxes and which may introduce uncertainty as to the application of tax laws and regulations to our operations. Furthermore, we may determine that we owe additional taxes or may be required to pay taxes for services provided in prior periods as interpretations of tax laws and regulations are clarified or revised. Changes in laws concerning sales tax, gross recipient tax, dividends, retained earnings, application of operating or other losses, and intercompany transactions and loans, among others, could impact us. We may not be able to raise our prices to customers or pass-through such taxes to our customers or vendors in response to changes, which would adversely affect our results of operations. If we fail to accurately anticipate or apply tax laws and regulations to our operations, we could be subject to liabilities and penalties. We may be unable to take advantage of operating losses or other tax credits to the full extent available or at all due to changes in tax regulations or our results of operations.

Our operations and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our results of operations.

We conduct our operations in several countries, states and local jurisdictions and may be required to report our taxable income in various jurisdictions worldwide based upon our business operations in those jurisdictions. Our intercompany relationships are subject to complex transfer pricing regulations administered by taxing authorities in various jurisdictions. These regulations are designed to ensure that transactions between related entities are conducted at arm’s length, i.e., at prices that would be agreed upon by unrelated parties in the open market. Transfer pricing regulations, and associated guidelines, are complex and vary from country to country, and changes in the tax treatment of transfer pricing could have a material effect on the Company.

The amount of taxes paid in different jurisdictions may depend on the application of the tax laws of the various jurisdictions to our business activities, changes in tax rates, new or revised tax laws or interpretations of existing tax laws and policies, and our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements. The relevant taxing authorities may disagree with our determinations as to the transfer pricing, income and expenses attributable to specific jurisdictions. If such a disagreement were to occur, and our position was not sustained, we could be required to pay additional taxes, interest and penalties, which could result in one-time tax charges, higher effective tax rates, reduced cash flows and lower overall profitability of our operations.

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We are subject to income, withholding, transaction and other taxes in numerous jurisdictions. Significant judgment will be required in evaluating our tax positions and our worldwide provision for taxes. During the ordinary course of our business, there are many activities and transactions for which the ultimate tax determination may be uncertain. We may be audited in various jurisdictions, and such jurisdictions may assess additional taxes, sales taxes and value added taxes against it. Even if we believe our tax estimates are reasonable, the final determination of any tax audits or litigation could be materially different from our historical tax provisions and accruals, which could have an adverse effect on our results of operations or cash flows in the period or periods for which a determination is made.

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Additionally, evolving tax policies focused on combating base erosion and profit shifting may lead to more aggressive tax enforcement by authorities, increased documentation and compliance requirements, and the potential for disputes with tax authorities. This could lead to unexpected tax adjustments, higher operating costs, and delays in operations as the Company seeks to address any tax challenges or compliance issues.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

The Board of Directors is responsible for the Company’s risk management strategy and overseeing the Company’s risk management program, of which cybersecurity is a critical element. The Chief Strategy and Technology Officer (“CSTO”) and the Chief Information Security Officer (“CISO”) are responsible for designing, implementing and administering the Company’s cybersecurity risk management policies, processes and practices, business continuity planning and disaster recovery functions and activities. The CSTO and CISO meet on a quarterly basis with other members of ~~Management~~management as the Technology and Information Security Committee (“TIS Committee”) to review the Company’s cybersecurity risk management, business continuity planning and disaster recovery strategy and performance.

The Company’s cybersecurity policies, standards, processes, and practices are generally based on recognized frameworks established by the National Institute of Standards and Technology (“NIST”), the International Organization for Standardization (“ISO”), applicable industry standards, and applicable data privacy and cybersecurity regulations. Annual technology and cybersecurity risk assessments are conducted to identify and evaluate applicable risks and controls designed to address such risks. In general, the Company seeks to identify, assess and manage material cybersecurity risks through a company-wide approach addressing the confidentiality, integrity, and availability of the Company’s information systems and the information that the Company collects and processes.

Cybersecurity Risk Management and Strategy

The Company’s cybersecurity risk management strategy focuses on several areas:

•Identification and Reporting: The Company strives to have controls and procedures reasonably designed to identify, assess, manage and respond to cybersecurity threats and incidents, including fulfilling potential public disclosure or reporting requirements as may be applicable.

•Technical Safeguards: The Company strives to implement and maintain technical safeguards designed to protect the Company’s information systems and data from cybersecurity threats, including perimeter and web application firewalls, proxy, intrusion prevention and detection systems, anti-malware, endpoint detection response functionality, data loss prevention systems, security incident event management, geo-blocking and access controls. Such safeguards are generally evaluated through internal security testing, third party penetration testing and vulnerability assessments, as well as outside audits and certifications, and revised as warranted. The Company seeks to comply with the cybersecurity framework guidelines issued by the NIST and ISO.

•~~Education~~Independent ~~and Awareness~~Assessments: The Company ~~provides~~engages ~~periodic,~~independent ~~mandatory~~third-party ~~training~~service ~~for~~providers ~~all~~to ~~levels~~support ofand ~~employees~~enhance ~~regarding~~its ~~information~~cybersecurity risk management program. These third parties perform periodic security testing, ~~cybersecurity threats~~assessments, ~~business~~and ~~continuity~~reviews ~~planning~~designed to evaluate the effectiveness of the Company’s security controls and ~~disaster~~identify ~~recovery~~potential invulnerabilities. anSuch ~~effort~~activities toinclude: ~~equip~~(i) ~~Company~~vulnerability ~~employees~~assessments ~~with~~and ~~tools~~penetration totesting ~~address~~of ~~cybersecurity~~web ~~threats~~applications, infrastructure, and select mobile environments conducted using industry-recognized methodologies; (ii) the use of an independent certification body to ~~communicate~~conduct ISO-based assessments and certifications of the Company’s ~~evolving~~ information security ~~policies,~~management ~~standards,~~program; (iii) testing of information technology general controls by an external audit firm as part of the Company’s Sarbanes-Oxley (“SOX”) compliance program; (iv) periodic reviews conducted by the Company’s cybersecurity insurance provider in connection with underwriting and renewal processes; and ~~practices.~~(v) independent

•Incident Response and Recovery Planning: The Company’s Security Operations Center (“SOC”), reporting to the CISO, strives to provide 24x7 incident monitoring. If an incident occurs which SOC determines qualifies as a “critical risk” according to predetermined criteria, Company policy requires the SOC to engage an incident management team to assist with evaluating, responding to and managing the response of the incident. The Company has established and seeks to maintain comprehensive incident identification, containment, response and business continuity plans designed to respond to potential cybersecurity incidents. The Company strives to conduct periodic drills and tabletop exercises to test these.29

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cybersecurity testing and assessments performed by certain clients as part of their vendor risk management and regulatory oversight processes. Management reviews the results of these third-party activities and incorporates relevant findings into its ongoing cybersecurity risk management efforts.

•Education and Awareness: The Company provides periodic, training for all levels of employees regarding information security, cybersecurity threats, business continuity planning and disaster recovery in an effort to equip Company employees with tools to address cybersecurity threats, and to communicate the Company’s evolving information security policies, standards, processes and practices.

•Third-Party Risk Management: The Company strives to conduct initial and periodic risk evaluations of vendors meeting predefined criteria for heightened cybersecurity risk, based on their access to or provision of critical information systems or data.

30The Company strives to conduct periodic assessments of the Company’s policies, standards, processes and practices. Summary results of such assessments are evaluated by the CISO to assist the Company in adjusting its cybersecurity policies, standards, processes and practices; the CISO reviews critical results with the TIS Committee. There can be no assurance that these risks management strategies and assessments will be effective.

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The Company strives to conduct periodic assessments of the Company’s policies, standards, processes and practices. Summary results of such assessments are evaluated by the CISO to assist the Company in adjusting its cybersecurity policies, standards, processes and practices; the CISO reviews critical results with the TIS Committee.

Governance

The ~~Board~~Company ofmaintains ~~Directors~~a ~~oversees~~formal ~~the~~cybersecurity ~~Company’s~~governance ~~risk~~structure. ~~management~~The ~~program,~~SOC ~~including~~monitors the ~~management~~Company’s ofinformation ~~cybersecurity~~systems ~~threats. The~~on ~~Board~~an ofongoing ~~Directors~~basis ~~receives~~and ~~regular~~escalates ~~reports~~identified ~~from~~threats ~~the~~and ~~CTSO~~incidents onto ~~cybersecurity~~CISO. ~~threats~~The ~~and the~~ Company’s ~~mitigation~~maintains ~~strategies. The~~a ~~TIS~~cross-functional ~~Committee~~incident ~~provides~~response ~~Management~~team ~~oversight~~composed of representatives from the ~~Company’s~~following ~~cybersecurity~~departments: ~~risk~~Information ~~management~~Security, ~~business~~Information ~~continuity~~Technology, ~~planning~~Law and ~~disaster~~Compliance, ~~recovery strategy~~ and ~~performance~~Enterprise Risk.

ToSignificant ~~facilitate~~cybersecurity ~~the~~incidents ~~success~~and ofrisks ~~the~~are ~~Company’s~~escalated ~~cybersecurity~~to ~~program,~~management ~~cross-functional~~through ~~teams~~the ~~work~~TIS ~~with~~Committee. ~~the~~The ~~CISO~~Board ~~and~~of ~~SOC~~Directors ~~seek~~receives toquarterly ~~address~~updates regarding cybersecurity ~~threats~~risk ~~and~~management, ~~respond~~threat tolandscape ~~cybersecurity~~developments, ~~incidents~~and mitigation efforts. ~~Through~~ ~~ongoing~~In ~~communications~~the ~~with~~event ~~these~~of ~~teams~~a material cybersecurity incident, the ~~CISO~~Board ~~and~~would ~~Management~~be ~~are~~notified ~~informed~~and ~~about~~would ~~and~~receive ~~monitor~~updates ~~the~~regarding ~~prevention,~~investigation ~~detection~~status, ~~mitigation~~impact assessment, and remediation ofactivities. ~~cybersecurity~~The ~~threats~~Company ~~and~~conducts ~~incidents~~periodic incident response drills and ~~report~~tabletop ~~such~~exercises ~~threats~~to test its incident response procedures, business continuity plans, crisis management processes, and ~~incidents~~management topreparedness in the ~~Board~~event of ~~Directors,~~a assignificant ~~appropriate~~cybersecurity incident.

The CISO has served in various roles in information technology, information security, and business continuity for over 20 years. The CISO holds undergraduate and graduate degrees in Information Systems Management and has attained the professional certification of Certified Information Security Manager from the Information Systems Audit and Control Association.

Material Effects of Cybersecurity Incidents

Past cybersecurity incidents have not had, and are not reasonably expected to have, a material impact on the Company’s business strategy, operations, or financial condition.

ITEM 2. PROPERTIES

Our principal executive offices are located in leased office space in Luxembourg, Grand Duchy of Luxembourg. Our principal leased offices in other countries as of December 31, ~~2024~~2025 include two offices in the United States and one office each in India and Uruguay.

We do not own any office facilities. We consider these facilities to be suitable and currently adequate for the management and operations of our businesses.

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ITEM 3. LEGAL PROCEEDINGS

We may become, from time to time, involved in various disputes, litigation, regulatory inquiry, audit, examinations and investigation matters that arise in the course of business. Given the inherent unpredictability of these proceedings, it is possible that future adverse outcomes could have a material adverse effect on our financial condition or results of operations.

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.

National Fair Housing Alliance v. Altisource Solutions, Inc., et al.

On or about February 1, 2018, the National Fair Housing Alliance (“NFHA”) and eighteen regional housing groups (collectively, the “Plaintiffs”) filed a civil complaint, subsequently amended, against Altisource Solutions, Inc. (“ASI”), a wholly owned subsidiary of the Company, Deutsche Bank National Trust, as Trustee, Deutsche Bank Trust Company Americas, as Trustee, and Ocwen Loan Servicing, LLC (n/k/a Onity Group, Inc.) (collectively, the “Defendants”) in the United States District Court for the Northern District of Illinois (the “Litigation”). The complaint alleged violations of the federal Fair Housing Act in connection with the maintenance and marketing of certain real estate owned properties.

On February 11, 2026, Defendants entered into a settlement agreement with the Plaintiffs, providing for a full release of claims against the defendants and dismissal of the Litigation with prejudice. Altisource recorded a $7.5 million loss for the three months ended December 31, 2025 reflecting the settlement and associated defense costs. The settlement agreement contains customary terms and conditions and does not include any admission of liability, fault or unlawful conduct by the defendants.

The Company expects to fund its portion of the settlement from available cash. The Company expects that a significant portion of the liability may be eligible for reimbursement under applicable insurance, subject to the terms and conditions of the applicable insurance policies. However, one insurer is disputing the extent of its available insurance coverage. There can be no assurance as to the timing or amount of any such reimbursement, if any.

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.

Our businesses are also subject to extensive regulation which may result in regulatory proceedings or actions against us. For further information, see Item 1A of Part I, “Risk Factors” above and Note 22 to the consolidated financial statements.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock isand publicly traded warrants are listed on the NASDAQ Global Select Market under the ~~symbol~~symbols “ASPS”, “ASPSW” and “ASPSZ.”

The number of holders of record of our common stock as of ~~March~~February 2526, ~~2025~~2026 was ~~387~~368. We believe the number of beneficial shareholders is substantially greater than the number of holders as a large portion of our common stock is held through brokerage firms.

Dividends

We have not historically declared or paid cash dividends on our common stock, but may declare dividends in the future. Under Luxembourg law, shareholders need to approve certain dividends. Such approval typically occurs during a company’s annual meeting of shareholders. Luxembourg law imposes limits on our ability to pay dividends based on annual net income and net income carried forward, less any amounts placed in reserve. The provisions of the New Facility and the Super Senior Facility also limit our ability to pay dividends.

Securities Authorized for Issuance under Equity Compensation Plans

The information required by this item is incorporated herein by reference to our definitive proxy statement in connection with our ~~2025~~2026 annual meeting of shareholders to be filed pursuant to Regulation 14A under the Exchange Act.

Issuer Purchases of Equity Securities

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by ~~the~~our shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 30.14 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 $18.00 per share and a maximum price of $25200.00 per share, ~~for~~until aMay ~~period~~16, ~~of five years from the date of approval~~2028. As of December 31, ~~2024~~2025, approximately 30.14 million shares of common stock remain available for repurchase under the program. In connection with the elimination of fractional shares resulting from the Share Consolidation, the Company purchased 204 shares of common stock during the year ended December 31, 2025. There were no other purchases of shares of common stock during the years ended December 31, ~~2024~~2025 and ~~2023~~2024. Under the New Facility and the Super Senior Facility, we are not permitted to repurchase shares except ~~for~~under limited circumstances.

ITEM 6. [Reserved]

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is a supplement to the accompanying consolidated financial statements and is intended to provide a reader of our financial statements with a narrative from the perspective of management on our businesses, current developments, financial condition, results of operations and liquidity. Significant sections of the MD&A are as follows:

Overview. This section, beginning below, provides a description of recent developments we believe are important in understanding our results of operations and financial condition as well as understanding anticipated future trends. It also provides a brief description of significant transactions and events that affect the comparability of financial results and a discussion of the progress being made on our strategic initiatives.

Consolidated Results of Operations. This section, beginning on page 38, provides an analysis of our consolidated results of operations for the two years ended December 31, ~~2024~~2025 and ~~2023~~2024.

Segment Results of Operations. This section, beginning on page 4142, provides analysis of our business segments’ results of operations for the years ended December 31, ~~2024~~2025 and ~~2023~~2024.

Liquidity and Capital Resources. This section, beginning on page 4648, provides an analysis of our cash flows for the two years ended December 31, ~~2024~~2025 and ~~2023~~2024. We also discuss restrictions on cash movements, future commitments and capital resources.

Critical Accounting Policies, Estimates and Recent Accounting Pronouncements. This section, beginning on page 4850, identifies those accounting principles we believe are most important to our financial results and that require significant judgment and estimates on the part of management in application. We provide all of our significant accounting policies in Note 2 to the accompanying consolidated financial statements.

Other Matters. This section, beginning on page 4951, provides a discussion of customer concentration.

OVERVIEW

Our Business

We are an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve.

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. Within the Servicer and Real Estate segment we provide:

Solutions

Marketplace

Our Marketplace business includes the Hubzu online real estate auction platform, real estate brokerage and asset management services.

Technology and SaaS Products

Our Technology and SaaS Products business includes Equator (a SaaS-based technology to manage REO and investor homes, short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange (a single and multi-family rental data, analytics and rent-based valuation solution), and REALSynergy (a commercial loan servicing platform)~~, and NestRange (a single-family automated valuation model and analytics solution)~~.

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The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Within the Origination segment we provide:

Solutions

Our Solutions business includes title insurance (as an agent) and settlement services, real estate valuation services, loan fulfillment and insurance services.

Lenders One

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One, and certain loan manufacturing and capital markets ~~services~~solutions provided to the members of the Lenders One cooperative.

Solutions

Our Solutions business includes loan fulfillment services, real estate valuation services, title insurance (as an agent) and settlement services, and insurance services.

Technology and SaaS Products

Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), LOLA (a marketplace to order services and a tool to automate components of the loan manufacturing process), and TrelixAI (technology to manage the workflow and automate components of the loan fulfillment and pre and post-close quality control)~~, and ADMS (a document management and data analytics delivery platform)~~.

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One. Lenders One is a mortgage cooperative managed, but not owned, by Altisource. ~~The~~ Lenders One ~~members~~’s earnings are included in revenue and reduced from net income (loss) to arrive at net income (loss) attributable to Altisource.

Strategy and Core Businesses

We are focused on becoming the premier provider of mortgage and real estate marketplaces and related technology enabled solutions to a broad and diversified customer base of residential real estate and loan investors, servicers, and originators. The real estate and mortgage marketplaces represent very large markets, and we believe our scale and suite of offerings provide us with competitive advantages that could support our growth. As we navigate the current state of the economy, interest rate environment, housing supply, and other macro-economic trends, we continue to evaluate our strategy and core businesses and seek to position our businesses to provide long term value to our customers and shareholders.

Each of our business segments provides Altisource the potential to grow and diversify our customer and revenue base. We believe these business segments address very large markets and directly leverage our core competencies and distinct competitive advantages. Our business segments and strategic initiatives follow:

Servicer and Real Estate:

Through our offerings that support residential real estate and loan investors and forward and reverse servicers, we provide a suite of loan default and real estate investor solutions and technologies intended to meet their growing and evolving needs. We are focused on ~~growing~~gaining ~~referrals~~market ~~from~~share on existing solutions and launching new solutions with our existing customer base and attracting new customers to our offerings. We have a customer base that includes GSEs, asset managers, and several large bank and non-bank servicers including Onity and Rithm. We believe we are one of only a few providers with a broad suite of solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers if loan delinquency rates and foreclosure initiations and sales rise, or if they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.

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Origination:

Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members (Lenders One is a residential mortgage cooperative managed by Altisource), which includes independent mortgage bankers, credit unions, and banks~~, as well as bank and non-bank loan originators~~. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.

Default Related Mortgage Market

Serious delinquency rates, foreclosure initiations and foreclosure sales are ~~very~~ low relative to historical levels but increased during the year ended December 31, 2025 relative to the year ended December 31, 2024. Additionally, foreclosure initiations and sales as a percentage of seriously delinquent loans for 2020 through ~~2024~~2025 are significantly lower than prior years. During 2020 and 2021, these percentages were significantly impacted by COVID-19 borrower relief measures, including foreclosure moratoriums and forbearance programs. These measures largely expired at the end of 2021. Beginning in 2022, we believe these percentages were impacted by servicer practices, home price appreciation, the ~~general~~interest ~~state~~rate ofenvironment, ~~the~~housing ~~economy~~supply, the ~~interest~~general ~~rate~~state ~~environment,~~of ~~housing~~the ~~supply~~economy, and other factors. In 2021 and 2022, a ~~very~~ low interest rate environment drove a high volume of refinance transactions and home prices appreciated significantly. Although interest rates began to increase in 2022, home prices remained high. With greater home equity from home price appreciation, we believe troubled borrowers have more options to avoid foreclosure. Foreclosure initiations and sales increased during the year ended December 31, 2025 compared to the same period in 2024. However, both measures remain below pre-pandemic levels.

While we cannot predict whether the default market will return to a pre-pandemic operating environment, we believe the demand for our ~~Default~~default-related business is likely to grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. The foreclosure timelines could vary significantly based upon, for example, the state where the property is located, whether the foreclosure is contested, amount of borrower equity in the home and available borrower relief programs. The REO sale timelines could also vary significantly based upon, for example, mortgage interest rates, the local real estate market, whether the home is located in a redemption state and whether the home is occupied post foreclosure.

During ~~2023~~2024 and ~~2024~~2025, to address the close to historically low delinquency rates, we worked to (1) reduce our cost structure, (2) maintain the infrastructure to deliver default related services for our customer base and support the anticipated increase in demand should delinquency rates, foreclosure initiations and/or foreclosure sales rise, (3) launch a residential renovation business to renovate single family homes, and ~~(4)~~launch ina ~~Lenders~~commercial ~~One~~real ~~members~~estate auction business on Hubzu, our online auction platform, and (4) launch new solutions and increase customer adoption of our existing solutions to accelerate the growth of our ~~origination~~Origination ~~business~~segment.

Share Repurchase Program

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by ~~the~~our shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 30.14 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 $18.00 per share and a maximum price of $25200.00 per share, ~~for~~until aMay ~~period~~16, ~~of five years from the date of approval~~2028. As of December 31, ~~2024~~2025, approximately 30.14 million shares of common stock remain available for repurchase under the program. In connection with the elimination of fractional shares resulting from the Share Consolidation, the Company purchased 204 shares of common stock during the year ended December 31, 2025 (no comparative amount for the year ended December 31, 2024). There were no other purchases of shares of common stock during the years ended December 31, ~~2024~~2025 and ~~2023~~2024. Under the New Facility and the Super Senior Facility, we are not permitted to repurchase shares except for limited circumstances.

Onity Related Matters

During the year ended December 31, ~~2024~~2025, Onity was our largest customer, accounting for 4442% of our total revenue. Additionally, 65% of our revenue for the year ended December 31, ~~2024~~2025 was earned on the loan portfolios serviced by Onity, when a party other than Onity or the MSR owner selected Altisource as the service provider.

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Onity has disclosed that it is subject to a number of ongoing regulatory examinations, consent 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 December 31, ~~2024~~2025, Onity reported that approximately 1410% of loans serviced and subserviced by Onity (measured in UPB) and approximately 6350% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs. In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreements with Onity effective January 31, 2026.

The ~~existence or outcome of Onity regulatory matters or the~~ termination of Onity’s ~~sub-servicing~~subservicing agreements with Rithm ~~or other significant Onity clients~~ may have significant adverse effects on Onity’s business. ~~For example~~Additionally, ~~Onity~~Altisource’s ~~may~~revenue befrom ~~required~~Onity toand ~~alter~~Rithm ~~the~~(and ~~way~~revenue itassociated ~~conducts~~with ~~business, including~~ the ~~parties~~Rithm itMSRs) ~~contracts~~will ~~with for services, it may~~ be ~~required~~reduced to seek changes to its existing pricing structure with us, it may lose its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in 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~~results ~~loss~~ of ~~Onity~~operations aswill abe ~~customer~~adversely oraffected aby ~~reduction~~this ~~in the number and/or volume of services it purchases from us or the loss of other customers~~termination.

The existence or outcome of Onity regulatory matters or Onity’s loss of significant 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-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 and/or there is a reduction in referral volumes

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.

Factors Affecting Comparability

The following items impact the comparability of our results:

•Industrywide foreclosure initiations were 625% ~~lower~~higher in ~~2024~~2025 compared to ~~2023~~2024 (~~and~~although 35still 19% lower than the same pre-COVID-19 period in 2019)

•Industrywide foreclosure sales were 1417% ~~lower~~higher in ~~2024~~2025 compared to ~~2023~~2024 (~~and~~although 53still 45% lower than the same pre-COVID-19 period in 2019)

•~~Temporary~~The ~~delay~~weighted inaverage ~~certain~~interest ~~California~~rate ~~foreclosures~~on ~~during~~ the ~~three~~Company’s ~~months~~long-term ~~ended~~debt ~~June~~was ~~30,~~8.11% ~~2023~~for ~~negatively~~the ~~impacted~~year ~~revenue~~ended inDecember 31, ~~the~~2025, ~~Servicer~~compared ~~and~~to ~~Real~~14.00% ~~Estate~~for ~~segment~~the same period in ~~2023~~2024

•The average interest rate on the Company’s SSTL was 14.00% for the year ended December 31, 2024, compared to 12.89% for the same period in 2023

•On February 14, 2023, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into Amendment No. 2 to the Credit Agreement. In connection with Amendment No. 2, the Company paid $3.4 million to advisors and recorded these payments as other expense in the consolidated statements of operations and comprehensive loss (no comparative amount for the year ended December 31, 2024)

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•The Company recognized ana ~~income tax provision of~~ $27.65 million ~~for~~litigation ~~the~~settlement ~~year~~loss ~~ended December 31, 2024. The income tax provision~~ for the year ended December 31, ~~2024~~2025 ~~was~~related ~~driven~~to ~~primarily~~a bysettlement ~~income~~agreement ~~tax~~with ~~expense~~NFHA onand ~~transfer~~associated ~~pricing~~defense ~~income~~costs. ~~from~~For ~~India~~further ~~and the United States~~information, nosee ~~tax~~Item ~~benefit~~3. onof ~~the~~Part ~~pretax~~I, ~~loss~~“Legal ~~from~~Proceedings” ~~our~~and ~~Luxembourg~~Note ~~operating~~22 ~~company~~to ~~and~~the ~~uncertain~~consolidated ~~tax~~financial ~~positions~~statements

•The Company recognized ~~an income tax provision of~~ $3.76 million ~~for~~of ~~the~~expenses ~~year~~related ~~ended~~to ~~December 31,~~the ~~2023. The~~Debt ~~income~~Exchange ~~tax~~Transaction ~~provision~~ for the year ended December 31, 2023 was driven primarily by income tax expense on transfer pricing income from India and the United States, reduction in deferred tax assets related to intangible assets, no tax benefit on the pretax loss from our Luxembourg operating company and uncertain tax positions.2025

•The Company recognized an income tax benefit of $16.1 million for the year ended December 31, 2025, which was driven primarily by the reversal of liabilities for uncertain tax positions, partially offset by income tax expense on transfer pricing income from India and the United States and no tax benefit on the pretax loss from our Luxembourg operating company and uncertain tax positions

•The Company recognized an income tax provision of $2.6 million for the year ended December 31, 2024, which 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.

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CONSOLIDATED RESULTS OF OPERATIONS

The following is a discussion of our consolidated results of operations for the years ended December 31, ~~2024~~2025 and ~~2023~~2024. For a more detailed discussion of the factors that affected the results of our business segments in these periods, see “Segment Results of Operations” below.

The following table sets forth information on our consolidated results of operations for the years ended December 31:

(in thousands, except per share data)	~~2024~~2025			~~2023~~2024			% Increase (decrease)
Service revenue
Servicer and Real Estate	$	~~119~~126,~~939~~057		$	~~107~~119,~~779~~939		115
Origination	3035,~~415~~200			2830,~~786~~415			616
Total service revenue	~~150~~161,~~354~~257			~~136~~150,~~565~~354			107
Reimbursable expenses	9,~~592~~405			89,~~273~~592			16(2)
Non-controlling interests	~~188~~313			~~228~~188			~~(18)~~66
Total revenue	~~160~~170,~~134~~975			~~145~~160,~~066~~134			107
Cost of revenue	~~110~~122,~~605~~065			~~115~~110,~~414~~605			~~(4)~~10
Gross profit	4948,~~529~~910			2949,~~652~~529			67(1)
Operating expense:
Selling, general and administrative expenses	40,976			45,620			(10)
Selling, general and administrative expenses	45,620			46,420			(2)
Litigation settlement loss	7,517			—			N/M
Loss on sale of business	~~685~~—			—685			~~N/M~~(100)
Income (loss) from operations	3,224			(16,768)			119
Income from operations	417			3,224			(87)
Other income (expense), net:
Interest expense	(3812,~~877~~173)			(3638,~~103~~877)			8(69)
Change in fair value of warrant liability	—			1,145			(100)
Debt exchange transaction expenses	(3,646)			—			N/M
Debt amendment costs	—			(3,410)			100
Other income (expense), net	1,256			2,786			(55)
Other income (expense), net	2,786			2,788			—
Total other income (expense), net	(14,563)			(36,091)			60
Total other income (expense), net	(36,091)			(35,580)			(1)
Loss before income taxes and non-controlling interests	(14,146)			(32,867)			57
Loss before income taxes and non-controlling interests	(32,867)			(52,348)			37
Income tax benefit (provision)	16,074			(2,581)			N/M
Income tax provision	(2,581)			(3,714)			(31)
Net income (loss)	1,928			(35,448)			105
Net loss	(35,448)			(56,062)			37
Net income attributable to non-controlling interests	(313)			(188)			66
Net income attributable to non-controlling interests	(188)			(228)			(18)
Net income (loss) attributable to Altisource	$	1,615		$	(35,636)		105
Net loss attributable to Altisource	$	(35,636)		$	(56,290)		37
Margins:
Gross profit / service revenue	3330		%	2233		%
Income (loss) from operations / service revenue	2		%	(12)		%
Income from operations / service revenue	—		%	2		%
Loss per share:
Earnings (loss) per share:
Basic	$	(10.~~25)~~16		$	(29.5199)		50102
Diluted	$	(10.~~25)~~15		$	(29.5199)		50102
Weighted average shares outstanding:
Basic	2810,~~534~~066			223,~~418~~567			27182
Diluted	2811,~~534~~067			223,~~418~~567			27210
_____________________________________
N/M — not meaningful.

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Revenue

We recognized service revenue of $~~150~~161.43 million for the year ended December 31, ~~2024~~2025, a 107% increase compared to the year ended December 31, ~~2023~~2024. The increase in service revenue for the year ended December 31, ~~2024~~2025 was driven by higher revenue in both segments. Revenue was higher in the Servicer and Real Estate segment from growth in our ~~Field~~Property Renovation Services, Foreclosure Trustee, Granite and ~~Property~~Field ~~Renovation~~ Services businesses in the Solutions business, partially offset by ~~$0.8~~fewer ~~million~~home ofsales ~~first~~in ~~quarter~~the ~~2023~~Marketplace ~~non-recurring~~business and lower professional services revenue in the Equator business within the Technology and SaaS ~~Products~~products business ~~and fewer home sales in the Marketplace business~~. Revenue was higher in the Origination segment from growth ofin reseller products in the Lenders One business.

We recognized reimbursable expense revenue of $9.64 million for the year ended December 31, ~~2024~~2025, a 162% ~~increase~~decrease compared to the year ended December 31, ~~2023~~2024. The ~~increase~~decrease in reimbursable expenses for the year ended December 31, ~~2024~~2025 was primarily driven by ~~higher~~fewer asset resolution and asset management activities in the Marketplace business, ~~higher-value~~lower REO title related expenses and ~~growth~~a decrease in property preservation services in the ~~foreclosure~~Servicer ~~trustee~~and Real Estate Solutions business, partially offset by growth in the ~~Solutions~~Foreclosure Trustee business ~~within~~in the Servicer and Real Estate ~~segment~~Solutions business.

Certain of our revenues can be impacted by seasonality. More specifically, revenues from property sales, loan originations and certain property preservation services in field services typically tend to be at their lowest level during the fall and winter months and at their highest level during the spring and summer months. However, as a result of the current default market, home price appreciation and higher mortgage interest rates, the seasonal impact to revenue may not follow historical patterns.

Cost of Revenue and Gross Profit

Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service, operations and 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.

Cost of revenue consists of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Outside fees and services

5969,~~808~~317

5559,~~858~~808

716

Compensation and benefits

2931,~~321~~115

3529,~~396~~321

~~(17)~~6

Technology and telecommunications

11,~~282~~848

1411,~~196~~282

~~(21)~~5

Reimbursable expenses

9,~~592~~405

89,~~273~~592

16(2)

Depreciation and amortization

~~602~~380

~~1,691~~602

(6437)

Total

~~110~~122,~~605~~065

~~115~~110,~~414~~605

~~(4)~~10

We recognized cost of revenue of $~~110~~122.61 million for the year ended December 31, ~~2024~~2025, a 410% ~~decrease~~increase compared to the year ended December 31, ~~2023~~2024. ~~Compensation~~Outside fees and ~~benefits~~services for the year ended December 31, ~~2024~~2025 ~~decreased~~increased primarily ~~due~~from toservice ~~efficiency~~revenue ~~initiatives~~growth in the Property Renovations Services, Foreclosure Trustee and ~~cost~~Field ~~savings~~Services ~~measures~~businesses ~~taken~~within the Servicer and Real Estate segment and service revenue growth in ~~2023~~the Lenders One business in the Origination segment. ~~Technology~~Compensation and ~~telecommunications~~benefits ~~costs~~ for the year ended December 31, ~~2024~~2025 ~~decreased~~increased primarily due to ~~lower~~growth ~~overall~~in ~~headcount. Depreciation~~the ~~and~~Property ~~amortization~~Renovation ~~was~~Services ~~lower~~business ~~from~~and ~~the~~higher ~~completion~~annual ofincentive ~~the~~compensation ~~depreciation~~accruals. Technology ~~periods of certain premises~~ and ~~equipment~~telecommunications ~~with~~for ~~only~~the ~~modest~~year ~~additions. Outside~~ended ~~fees~~December 31, ~~and~~2025 ~~services~~ increased primarily from ~~higher~~a ~~revenue~~benefit recognized in ~~the~~2024. Depreciation ~~Solutions~~and ~~business~~amortization ~~within~~was ~~the~~lower ~~Servicer~~for ~~and~~the ~~Real~~year ~~Estate~~ended ~~segment~~December 31, ~~partially~~2025 ~~offset~~from bythe ~~lower~~completion ~~outside~~of ~~fees~~the ~~and~~depreciation ~~services~~periods inof ~~the~~certain ~~Origination~~premises ~~segment~~and ~~from~~equipment awith ~~change~~only inmodest ~~revenue mix~~additions. In addition, changes in reimbursable expenses for the year ended December 31, ~~2024~~2025 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.

Gross profit ~~increased~~decreased to $4948.59 million, representing 3330% of service revenue, for the year ended December 31, ~~2024~~2025 compared to $2949.75 million, representing 2233% of service revenue, for the year ended December 31, ~~2023~~2024. Gross profit as a percentage of service revenue for the year ended December 31, ~~2024~~2025 ~~increased~~decreased compared to the year ended December 31, ~~2023~~2024 primarily due to ~~margin~~a ~~expansion~~change in ~~both~~revenue mix from greater growth in the ~~Servicer~~lower ~~and~~margin ~~Real~~Property ~~Estate~~Renovations ~~segment~~Services and ~~the~~Lenders ~~Origination~~One ~~segment~~businesses ~~from~~than ~~efficiency~~in ~~initiatives~~the ~~and~~higher ~~lower~~margin ~~corporate~~Hubzu ~~costs~~business. Our asmargins acan ~~percentage~~vary ofsubstantially ~~service~~depending ~~revenue~~upon ~~growth,~~the ~~and~~ service revenue ~~growth~~mix.

Selling, General and Administrative Expenses

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~~roles. This category also includes professional services fees~~Selling, ~~occupancy~~General ~~costs, marketing costs, depreciation~~ and ~~amortization~~Administrative ~~of non-operating assets and other expenses.~~Expenses

Selling, general and administrative (“SG&A”) expenses includes payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, audit, 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.

SG&A expenses consist of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Compensation and benefits

1920,~~212~~008

2019,~~879~~212

~~(8)~~4

Professional services

105,~~118~~157

710,~~885~~118

28(49)

Amortization of intangible assets

5,~~080~~183

5,~~182~~080

(2)

Occupancy related costs

3,~~556~~388

43,~~917~~556

(285)

Marketing costs

2,~~051~~375

12,~~977~~051

416

Depreciation and amortization

~~395~~137

~~701~~395

(4465)

Other

54,~~208~~728

45,~~879~~208

7(9)

Selling, general and administrative expenses

4540,~~620~~976

4645,~~420~~620

(210)

SG&A expenses for the year ended December 31, ~~2024~~2025 of $4541.60 million decreased by 210% compared to the year ended December 31, ~~2023~~2024. The decrease in SG&A for the year ended December 31, ~~2024~~2025 was primarily driven by lower ~~compensation~~professional ~~and~~services ~~benefits~~ and ~~occupancy~~other ~~related~~SG&A ~~costs~~expenses, partially offset by higher ~~professional~~compensation ~~services. Compensation~~ and benefits. Professional ~~and~~services ~~occupancy related costs~~ for the year ended December 31, ~~2024~~2025 decreased ~~from~~primarily ~~efficiency~~due to lower costs related to legacy indemnification accruals and ~~cost~~a ~~reductions~~settlement ~~measures~~payment received related to a legacy matter. ~~Professional~~Other ~~services~~SG&A expenses for the year ended December 31, ~~2024~~2025 ~~increased~~decreased primarily due to ~~accruals~~lower ~~for~~bad ~~potential~~debt ~~settlements~~expense, as well as a loss on sale of ~~certain~~business ~~legacy~~recognized ~~indemnity~~during ~~claims,~~the ~~estimated~~year ~~legal~~ended ~~matters~~December ~~and~~31, ~~costs~~2024 ~~associated~~in connection with the ~~Transactions~~indemnity escrow related to the Pointillist sale. Compensation and benefits for the year ended December 31, 2025 increased primarily from higher annual incentive compensation accruals.

Income ~~(loss)~~ from ~~Operations~~operations

Income from operations was $30.24 million, representing 2less than 1% of service revenue, for the year ended December 31, ~~2024~~2025 compared to ~~loss~~income from operations of $~~(16~~3.8)2 million, representing ~~(12)~~2% of service revenue, for the year ended December 31, ~~2023~~2024. Income ~~(loss)~~ from operations as a percentage of service revenue ~~improved~~declined for the year ended December 31, ~~2024~~2025 compared to the year ended December 31, ~~2023~~2024, primarily asfrom a ~~result~~$7.5 ofmillion ~~higher~~loss from litigation settlement with NFHA and associated defense costs and lower gross profit margins, ~~and~~partially offset by lower SG&A expenses as a percentage of service revenue. For further information on the settlement, see Item 3 “Legal Proceedings” above and Note 22 to the consolidated financial statements.

Other income (expense), net

Other income (expense), net, principally includes interest expense and other non-operating gains and losses.

Other income (expense), net was $(3614.16) million for the year ended December 31, ~~2024~~2025 compared to $(3536.61) million for the year ended December 31, ~~2023~~2024. The change for the year ended December 31, ~~2024~~2025 was primarily driven by ~~higher~~lower interest expense, ~~and~~partially aoffset ~~gain~~by onhigher ~~the~~debt ~~change~~exchange intransaction ~~fair~~expenses. The ~~value~~lower ofinterest ~~the~~expense ~~warrant~~was ~~liability~~driven ~~for~~by the ~~year~~decrease ~~ended~~in ~~December 31,~~outstanding ~~2023~~debt ~~(no~~and ~~comparable~~a ~~amount for the year ended December 31, 2024), partially offset by~~ lower ~~debt amendment costs. The higher~~ interest ~~expense~~rate ~~was~~from ~~driven~~the byFebruary ~~higher~~19, ~~interest~~2025 ~~rates~~Debt onExchange ~~the SSTL~~Transaction.

Income Tax Provision

We recognized an income tax provision of $2.6 million and $3.7 million for the years ended December 31, 2024 and 2023, respectively.

The income tax provision for the year ended December 31, 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.

The income tax provision for the year ended December 31, 2023 was driven primarily by income tax expense on transfer pricing income from India and the United States, reduction in deferred tax assets related to intangible assets, no tax benefit on the pretax loss from our Luxembourg operating company and uncertain tax positions.

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Income Tax Provision

We recognized an income tax benefit (provision) of $16.1 million and $(2.6) million for the years ended December 31, 2025 and 2024, respectively.

Income tax benefit for the year ended December 31, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions partially offset by income tax expense on transfer pricing income from India and the United States and no tax benefit on the pretax loss from our Luxembourg operating company. For further information, see Note 20.

The income tax provision for the year ended December 31, 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.

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SEGMENT RESULTS OF OPERATIONS

The following section provides a discussion of pretax results of operations of our business segments. Transactions between segments are accounted for as third party arrangements for purposes of presenting segment results of operations.

Financial information for our segments was as follows:

	For the year ended December 31, 2024
	For the year ended December 31, 2025
(in thousands)	Servicer and Real Estate			Origination			Corporate and Others		Consolidated Altisource
Revenue
Service revenue	$	~~119~~126,~~939~~057		$	3035,~~415~~200		$	—	$	~~150~~161,~~354~~257
Reimbursable expenses	98,~~011~~780			~~581~~625			—		9,~~592~~405
Non-controlling interests	—			~~188~~313			—		~~188~~313
	128,950			31,184			—		160,134
	134,837			36,138			—		170,975
Cost of revenue	7986,~~631~~752			2428,~~473~~861			6,~~501~~452		~~110~~122,~~605~~065
Gross profit (loss)	4948,~~319~~085			67,~~711~~277			(6,~~501~~452)		4948,~~529~~910
Selling, general and administrative expenses	117,~~421~~503			67,~~584~~162			2726,~~615~~311		4540,~~620~~976
Loss on sale of business	—			—			685		685
Litigation settlement loss	7,517			—			—		7,517
Income (loss) from operations	3733,~~898~~065			~~127~~115			(3432,~~801~~763)		~~3,224~~417
Total other income (expense), net	~~120~~228			—(5)			(3614,~~211~~786)		(3614,~~091~~563)
Income (loss) before income taxes and non-controlling interests	$	3833,~~018~~293		$	~~127~~110		$	(7147,~~012~~549)	$	(3214,~~867~~146)
Margins:
Gross profit (loss) / service revenue	4138		%	2221		%	N/M		3330		%
Income (loss) from operations / service revenue	3226		%	1—		%	N/M		20		%
_____________________________________
N/M — not meaningful.

	For the year ended December 31, 2023
	For the year ended December 31, 2024
(in thousands)	Servicer and Real Estate			Origination			Corporate and Others		Consolidated Altisource
Revenue
Service revenue	$	~~107~~119,~~779~~939		$	2830,~~786~~415		$	—	$	~~136~~150,~~565~~354
Reimbursable expenses	79,~~688~~011			~~585~~581			—		89,~~273~~592
Non-controlling interests	—			~~228~~188			—		~~228~~188
	115,467			29,599			—		145,066
	128,950			31,184			—		160,134
Cost of revenue	7379,~~746~~631			2724,~~946~~473			136,~~722~~501		~~115~~110,~~414~~605
Gross profit (loss)	4149,~~721~~319			16,~~653~~711			(136,~~722~~501)		2949,~~652~~529
Selling, general and administrative expenses	911,~~622~~421			76,~~693~~584			2927,~~105~~615		4645,~~420~~620
Income (loss) from operations	32,099			(6,040)			(42,827)		(16,768)
Loss on sale of business	—			—			685		685
Total other income (expense), net	—			—			(35,580)		(35,580)
Income (loss) from operations	37,898			127			(34,801)		3,224
Income (loss) before income taxes and non-controlling interests	$	32,099		$	(6,040)		$	(78,407)	$	(52,348)
Total other income (expense), net	120			—			(36,211)		(36,091)
Income (loss) before income taxes and non-controlling interests	$	38,018		$	127		$	(71,012)	$	(32,867)
Margins:
Gross profit (loss) / service revenue	3941		%	622		%	N/M		2233		%
Income (loss) from operations / service revenue	3032		%	~~(21)~~0		%	N/M		~~(12)~~2		%
_____________________________________
N/M — not meaningful.

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Servicer and Real Estate

Revenue

Revenue by line of business was as follows for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Service revenue:

Solutions

8292,~~438~~338

6782,~~946~~438

2112

Marketplace

2624,~~894~~293

2726,~~878~~894

(410)

Technology and SaaS Products

109,~~607~~426

1110,~~955~~607

(11)

Total service revenue

~~119~~126,~~939~~057

~~107~~119,~~779~~939

115

Reimbursable expenses:

Solutions

4,~~409~~528

34,~~551~~409

243

Marketplace

4,~~602~~252

4,~~137~~602

11(8)

Total reimbursable expenses

98,~~011~~780

79,~~688~~011

17(3)

Total revenue

~~128~~134,~~950~~837

~~115~~128,~~467~~950

125

We recognized service revenue of $~~119~~126.91 million for the year ended December 31, ~~2024~~2025, ~~an 11% increase compared to the year ended December 31, 2023. We also recognized reimbursable expense revenue of $9.0 million for the year ended December 31, 2024,~~ a 175% increase compared to the year ended December 31, ~~2023~~2024. The increase in service revenue for the year ended December 31, ~~2024~~2025 was driven by growth in our ~~Field~~Property Renovation Services, Foreclosure Trustee ~~and~~businesses, ~~Property~~Granite ~~Renovation~~and Field Services businesses in the Solutions business, partially offset by ~~$0.8~~fewer ~~million~~home ofsales ~~first~~in ~~quarter~~the ~~2023~~Marketplace ~~non-recurring~~business and lower professional services revenue in the Equator business within the Technology and SaaS ~~Products~~products business. The ~~and~~decrease in reimbursable expenses for the year ended December 31, 2025 was primarily driven by fewer ~~home~~asset ~~sales~~resolution and asset management activities in the Marketplace business, lower REO title related expenses and a decrease in property preservation services in the Servicer and Real Estate Solutions business, partially offset by growth in the Foreclosure Trustee business in the Solutions business.

Certain of our Servicer and Real Estate businesses are impacted by seasonality. Revenues from property sales and certain property preservation services are generally lowest during the fall and winter months and highest during the spring and summer months. However, as a result of the current default market, home price appreciation and higher mortgage interest rates, the seasonal impact to revenue may not follow historical patterns.

Cost of Revenue and Gross Profit

Cost of revenue consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Outside fees and services

4146,~~011~~435

3541,~~962~~011

1413

Compensation and benefits

2223,~~104~~611

22,~~214~~104

—7

Reimbursable expenses

98,~~011~~780

79,~~688~~011

17(3)

Technology and telecommunications

7,~~182~~678

7,~~138~~182

Depreciation and amortization

~~323~~248

~~744~~323

(5723)

Cost of revenue

7986,~~631~~752

7379,~~746~~631

Cost of revenue for the year ended December 31, ~~2024~~2025 of $7986.68 million increased by 89% compared to the year ended December 31, ~~2023~~2024. The increase in cost of revenue for the year ended December 31, ~~2024~~2025 iswas primarily driven by higher outside fees and services, ~~from~~compensation and benefits and higher ~~revenue~~technology inand telecommunications. Outside fees and services for the ~~Field~~year ~~Services~~ended December 31, 2025 increased from service revenue growth in the Property Renovation Services, ~~and~~ Foreclosure Trustee and Field Services businesses in the Solutions business. Compensation and ~~higher~~benefits ~~reimbursable~~for ~~expenses~~the year ended December 31, ~~partially~~2025 ~~offset~~increased byprimarily ~~lower~~due ~~depreciation~~to growth in the Property Renovation Services business and ~~amortization~~higher ~~from~~annual ~~the~~incentive ~~completion~~compensation ofaccruals. Technology and telecommunications for the ~~depreciation~~year ~~periods~~ended ofDecember 31, ~~certain~~2025 ~~premises~~increased from higher cloud services costs from higher volumes and ~~equipment~~from a benefit recognized in 2024.

Gross profit increased to $49.3 million, representing 41% of service revenue, for the year ended December 31, 2024 compared to $41.7 million, representing 39% of service revenue, for the year ended December 31, 2023. Gross profit as a percentage of service revenue for the year ended December 31, 2024 increased primarily due to price increases for certain services and 43

42Table of Content

~~Table~~Gross profit decreased to $48.1 million, representing 38% of ~~Contents~~service revenue, for the year ended December 31, 2025 compared to $49.3 million, representing 41% of service revenue, for the year ended December 31, 2024. Gross profit as a percentage of service revenue for the year ended December 31, 2025 decreased primarily due to a change in revenue mix from greater growth in the lower margin Property Renovations Services business than in the higher margin Foreclosure Trustee business in the Solutions business and fewer homes sales in the higher margin Marketplace business. Our margins can vary substantially depending upon the service revenue mix.

efficiency initiatives and cost savings measures partially offset by a change in revenue mix from fewer homes sold in our higher margin Hubzu business and growth in the lower margin Field Services and recently launched Property Renovation Services businesses. Our margins can vary substantially depending upon the service revenue mix.

Selling, General and Administrative Expenses

SG&A expenses consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Amortization of intangible assets

2,960

—

Compensation and benefits

1,~~991~~932

21,~~311~~991

(143)

Professional services

~~3,563~~33

13,~~734~~563

~~105~~(99)

Marketing costs

1,~~249~~352

1,~~258~~249

~~(1)~~8

Occupancy related costs

~~545~~420

~~631~~545

(1423)

Depreciation and amortization

—(50)

Other

~~1,111~~805

~~726~~1,111

53(28)

Selling, general and administrative expenses

117,~~421~~503

911,~~622~~421

19(34)

SG&A for the year ended December 31, ~~2024~~2025 of $117.45 million ~~increased~~decreased by 1934% compared to the year ended December 31, ~~2023~~2024. The ~~increase~~decrease in SG&A for the year ended December 31, ~~2024~~2025 iswas primarily due to ~~higher~~lower professional services ~~and other expenses, partially offset by lower compensation and benefits~~. Professional services for the year ended December 31, ~~2024~~2025 ~~increased~~decreased primarily due to ~~accruals~~a ~~for~~settlement ~~potential~~payment ~~settlements~~received ofrelated ~~certain~~to a legacy ~~indemnity~~matter ~~claims. Other expenses for the year ended December 31, 2024 increased from higher bad debt expense. Compensation~~ and ~~benefits~~lower ~~for~~costs ~~the~~related ~~year~~to ~~ended~~legacy ~~December 31,~~indemnification ~~2024 decreased from efficiency and cost reduction measures~~accruals.

Income from operations

Income from operations ~~increased~~decreased to $3733.91 million, representing 3226% of service revenue, for the year ended December 31, ~~2024~~2025 compared to $3237.19 million, representing 3032% of service revenue, for the year ended December 31, ~~2023~~2024. ~~The~~Operating ~~increase in operating~~ income as a percentage of service revenue for the year ended December 31, ~~2024~~2025 isdeclined ~~primarily~~compared to the ~~result~~year ofended ~~higher~~December 31, 2024 primarily from a $7.5 million loss from litigation settlement with NFHA and lower gross profit margins, partially offset by lower SG&A expenses.

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Origination

Revenue

Revenue by business unit was as follows for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Service revenue:

Lenders One

2328,~~837~~158

2223,~~644~~837

518

Solutions

56,~~915~~306

5,~~507~~915

Technology and SaaS Products

~~663~~736

~~635~~663

411

Total service revenue

3035,~~415~~200

2830,~~786~~415

616

Reimbursable expenses:

Solutions

~~581~~625

~~585~~581

~~(1)~~8

Total reimbursable expenses

~~581~~625

~~585~~581

~~(1)~~8

Non-controlling interests

~~188~~313

~~228~~188

~~(18)~~66

Total revenue

3136,~~184~~138

2931,~~599~~184

516

We recognized service revenue of $3035.42 million for the year ended December 31, ~~2024~~2025, a 16% increase compared to the year ended December 31, 2024. We also recognized reimbursable expense revenue of $0.6 million for the year ended December 31, 2025, an 8% increase compared to the year ended December 31, 2024. The increase in service revenue in the Origination segment for the year ended December 31, 2025 was primarily driven by growth in reseller products in the Lenders One business. The increase in reimbursable expenses for the year ended December 31, 2025 was primarily driven by certain Title orders partially offset by lower volumes in the loan fulfillment services business within the Solutions business.

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ended December 31, 2023. We also recognized reimbursable expense revenue of $0.6 million for the year ended December 31, 2024, a 1% decrease compared to the year ended December 31, 2023. The increase in service revenue in the Origination segment for the year ended December 31, 2024 was primarily driven by an increase in product adoption in the Lenders One business.

Cost of Revenue and Gross Profit

Cost of revenue consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Outside fees and services

1822,~~800~~882

1918,~~896~~800

~~(6)~~22

Compensation and benefits

4,~~413~~566

64,~~320~~413

~~(30)~~3

Technology and telecommunications

~~659~~777

~~1,108~~659

~~(41)~~18

Reimbursable expenses

~~581~~625

~~585~~581

~~(1)~~8

Depreciation and amortization

2011

3720

(4645)

Cost of revenue

2428,~~473~~861

2724,~~946~~473

~~(12)~~18

Cost of revenue for the year ended December 31, ~~2024~~2025 of $2428.59 million ~~decreased~~increased by 1218% compared to the year ended December 31, ~~2023~~2024. The ~~decrease~~increase in cost of revenue for the year ended December 31, ~~2024~~2025 was primarily driven by ~~the~~higher ~~prior year alignment of compensation and benefits with lower origination volume and lower~~ outside fees and services from agrowth ~~change~~in the reseller products in ~~revenue~~the ~~mix~~Lenders One business.

Gross profit increased to $6.7.3 million, representing 2221% of service revenue, for the year ended December 31, ~~2024~~2025 compared to $16.7 million, representing 622% of service revenue, for the year ended December 31, ~~2023~~2024. Gross profit as a percentage of service revenue ~~increased~~for ~~from~~the ~~efficiency~~year ~~initiatives~~ended December 31, ~~cost~~2025 ~~savings~~decreased ~~measures~~slightly ~~and~~compared ~~price~~to ~~increase~~the ~~for~~year ~~certain~~ended ~~services~~December 31, 2024 from revenue mix.

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Selling, General and Administrative Expenses

SG&A expenses consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Compensation and benefits

12,~~941~~097

21,~~194~~941

~~(12)~~8

Amortization of intangible assets

2,~~120~~223

2,~~222~~120

(5)

Professional services

~~435~~865

~~894~~435

~~(51)~~99

Marketing costs

~~796~~1,022

~~728~~796

928

Occupancy related costs

~~325~~188

~~302~~325

8(42)

Depreciation and amortization

1—

—(100)

Other

~~966~~767

~~1,352~~966

(2921)

Selling, general and administrative expenses

67,~~584~~162

76,~~693~~584

~~(14)~~9

SG&A for the year ended December 31, ~~2024~~2025 of $67.62 million ~~decreased~~increased by 149% compared to the year ended December 31, ~~2023~~2024. The ~~decrease~~increase in SG&A for the year ended December 31, ~~2024~~2025 was primarily due to ~~lower~~higher professional services ~~from~~and compensation and benefits, partially offset by lower ~~legal-~~occupancy related costs,. Professional ~~lower~~services ~~compensation~~for ~~and~~the ~~benefits~~year ended December 31, 2025 increased primarily from ~~efficiency~~a legacy litigation matter. Compensation and ~~cost~~benefits ~~reduction~~for ~~measures~~the ~~and~~year ~~lower~~ended ~~other~~December ~~expenses~~31, 2025 increased primarily from ~~lower~~revenue ~~bad~~growth ~~debt~~in ~~expense~~the Lenders One business.

Income ~~(loss)~~ from Operations

Income ~~(loss)~~ from operations was $0.1 million, representing less than 1% of service revenue, for the year ended December 31, ~~2024~~2025 compared to income ~~(loss)~~ from operations of $~~(6.~~0).1 million, representing ~~(21)~~less than 1% of service revenue, for the year ended December 31, ~~2023~~2024. ~~The~~ ~~improvement~~Income infrom ~~operating~~operations ~~income as a percentage of service revenue~~ for the year ended December 31, ~~2024~~2025 was isrelatively ~~primarily~~flat ~~from~~compared ~~higher gross profit margins and lower SG&A expenses and~~ to athe ~~lesser~~year ~~degree~~ended December 31, ~~service revenue growth~~2024.

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Corporate and Others

Cost of Revenue

Cost of revenue consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Compensation and benefits

2,~~804~~938

62,~~862~~804

~~(59)~~5

Outside fees and services

~~(3)~~—

—(3)

~~N/M~~100

Technology and telecommunications

3,~~441~~393

53,~~950~~441

(421)

Depreciation and amortization

~~259~~121

~~910~~259

(7253)

Cost of revenue

6,~~501~~452

136,~~722~~501

(531)

_____________________________________

N/M — not meaningful.

Cost of revenue for the year ended December 31, ~~2024~~2025 of $6.5 million decreased by 531% compared to the year ended December 31, ~~2023~~2024. The decrease in cost of revenue for the year ended December 31, ~~2024~~2025 iswas primarily driven by lower ~~compensation~~depreciation and ~~benefits~~amortization ~~and~~from ~~technology~~the ~~and~~completion ~~telecommunications~~of ~~costs~~the ~~due~~depreciation toperiods ~~efficiency~~for ~~initiatives~~certain premises and ~~cost savings initiatives~~equipment.

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Selling, General and Administrative Expenses

SG&A in Corporate and Others include costs related to the corporate functions including executive, finance, technology, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.

SG&A expenses consisted of the following for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Compensation and benefits

15,~~280~~979

1615,~~374~~280

~~(7)~~5

Professional services

64,~~120~~259

56,~~257~~120

16(30)

Occupancy related costs

2,~~686~~780

32,~~984~~686

~~(33)~~3

Depreciation and amortization

~~392~~136

~~698~~392

(4465)

Marketing costs

~~(9)~~6

~~167~~(83)

Other

3,~~131~~156

23,~~801~~131

121

Selling, general and administrative expenses

2726,~~615~~311

2927,~~105~~615

(5)

SG&A for the year ended December 31, ~~2024~~2025 of $2726.63 million decreased by 5% compared to the year ended December 31, ~~2023~~2024. The decrease for the year ended December 31, ~~2024~~2025 is primarily driven by lower ~~occupancy related costs and compensation and benefits driven by efficiency initiatives and cost savings measures partially offset by higher~~ professional services ~~expenses~~from ~~due~~lower toaccruals ~~higher~~for estimated legal~~-related~~ ~~costs and costs associated with the Transactions~~matters.

Other Income (Expense), net

Other income (expense), net principally includes interest expense and other non-operating gains and losses.

Other income (expense), net was $(3614.28) million for the year ended December 31, ~~2024~~2025 compared to $(3536.62) million for the year ended December 31, ~~2023~~2024. The change for the year ended December 31, ~~2024~~2025 was primarily driven by ~~higher~~lower interest expense, ~~and~~partially aoffset ~~gain~~by onhigher ~~the~~debt ~~change~~exchange intransaction ~~fair~~expenses. The ~~value~~lower ofinterest ~~the~~expense ~~warrant~~was ~~liability~~driven ~~for~~by the ~~year~~decrease ~~ended~~in ~~December 31,~~outstanding ~~2023~~debt ~~(no~~and ~~comparable~~a ~~amount for the year ended December 31, 2024), partially offset by~~ lower ~~debt amendment costs. The higher~~ interest ~~expense~~rate ~~was~~from ~~driven~~the byFebruary ~~higher~~19, ~~interest~~2025 ~~rates~~Debt onExchange ~~the SSTL~~Transaction.

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LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our primary source of liquidity has historically been cash flow from operations, cash proceeds from sales of businesses, cash proceeds from the sale of equity securities and cash on hand. However, primarily due to ~~governmental and market responses to the COVID-19 pandemic,~~ lower delinquency and foreclosure rates, and higher home equity, revenue has declined significantly compared to pre pandemic levels (although revenue grew in 2025 compared to 2024 and in 2024 compared to 2023). The lower revenue, partially offset by efficiency initiatives and cost savings ~~measures~~initiatives, has resulted in negative operating cash flow from operations. We believe lower interest expense as a result of the February 2025 Debt Exchange Transactions, ~~our~~more ~~anticipated~~recent revenue growth from the renovation business launched in 2024, the anticipated improvement in the default market, on-boarding sales wins, converting sales prospects to wins and revenue mix together with our reduced cost structure, should help improve operating cash flow. For a description of the Transactions undertaken in February 2025, see the disclosure under the heading, “Debt and Equity Transactions” in Item 1 (“Business”) of this Annual Report on Form 10-K, which disclosure is incorporated herein by reference.

We seek to deploy cash generated in a disciplined manner. Principally, we intend to use cash to develop and grow complementary services and businesses that we believe will generate attractive margins in line with our core capabilities and strategy and fund negative operating cash flow, if necessary. We also use cash for repayments of our long-term debt and capital investments. In addition, from time to time we may consider and evaluate business acquisitions, dispositions, closures, sales of equity securities or other similar actions that are aligned with our strategy.

Revolving Loan Agreement

In connection with the Company’s ~~residential~~Renovation ~~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 then 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 iswas June 3, 2025 and ~~may~~can 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. During the second quarter of 2025 the Revolving Loan Agreement was renewed, extending the maturity date to June 3, 2026. 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.

As of December 31, ~~2024~~2025, there was ~~$1.0~~no ~~million~~ outstanding debt under the Revolving Loan Agreement.

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Cash Flows

The following table presents our cash flows for the years ended December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

% Increase (decrease)

Net cash used in operating activities

(5,~~025~~065)

(215,~~833~~025)

~~(77)~~1

Net cash provided by investing activities

2,254

—

N/M

Net cash (used in) provided by investing activities

(319)

2,254

(114)

Net cash provided by financing activities

553,177

~~2,976~~55

~~(98)~~N/M

Net decrease in cash, cash equivalents and restricted cash

(2,~~716~~207)

(182,~~857~~716)

(8619)

Cash, cash equivalents and restricted cash at the beginning of the period

3532,~~416~~700

5435,~~273~~416

(358)

Cash, cash equivalents and restricted cash at the end of the period

3230,~~700~~493

3532,~~416~~700

(87)

_____________________________________

N/M — not meaningful.

Cash Flows from Operating Activities

Cash flows from operating activities generally consist of the cash effects of transactions and events that enter into the determination of net income (loss). For the year ended December 31, ~~2024~~2025, net cash used in operating activities was $(5.01) million compared to net cash used in operating activities of $(215.80) million for the year ended December 31, ~~2023~~2024. ~~During~~The ~~the~~increase ~~year ended December 31, 2024, the decrease~~ in cash used in operating activities was driven by a $2017.9 6 million ~~improvement~~lower ~~in net loss adjusted for~~ non-cash ~~items included in the determination of net loss (PIK~~ interest, ~~stock~~expense ~~based~~and ~~compensation,~~$2.2 ~~change~~million inlower ~~the~~adjustments ~~fair~~to ~~value~~net ofincome ~~warrant~~for ~~liability, bad debt expense,~~ depreciation and amortization, ~~deferred~~bad ~~income taxes, amortization of~~ debt ~~discount~~expense, ~~amortization~~share ofbased ~~debt~~compensation ~~issuance~~ and ~~amendment costs,~~ loss on ~~disposal~~sale of ~~fixed~~business, ~~assets and amortization of intangible assets). This improvement was~~ partially offset by aan $418.7 million ~~decrease~~improvement in ~~cash~~loss ~~provided~~before byincome ~~working~~taxes ~~capital~~and ~~primarily~~non-controlling ~~from~~interests ~~the~~and a $21.1 million ~~net~~lower ~~payment~~use of ~~taxes~~cash for ~~the~~working ~~year~~capital ~~ended~~(accounts ~~December 31~~receivable, ~~2024~~prepaid ~~compared~~expenses toand ~~$3.8~~other ~~million~~current ~~net~~assets, ~~collection~~other ~~of taxes receivable for the year ended December 31~~assets, ~~2023~~ and aaccounts ~~$2.0~~payable ~~million~~and ~~return~~accrued ~~of surety bonds in the year ended December 31, 2023~~expenses). Operating cash flows can be negatively impacted because of the nature of some of our services and the mix of services provided. Certain services are performed immediately following or shortly after the referral, but the collection of the receivable does not occur until a specific event occurs (e.g., the foreclosure is complete, the REO asset is sold, etc.). Furthermore, lower margin services generate lower income and cash flows from operations. Consequently, our cash flows from operations may be negatively impacted when comparing one period to another.

Cash Flows from Investing Activities

Cash flows from investing activities generally include additions to premises and equipment and proceeds from the sale of businesses. Net cash (used in) provided by investing activities was $2(0.3) million and $2.3 million for the ~~year~~years ended December 31, ~~2024~~2025 ~~(no~~and ~~comparable~~2024, ~~amount for the year ended 2023)~~respectively. The change in cash provided by investing activities was primarily driven by $2.3 million in proceeds received in the year ended December 31, 2024 in connection with the indemnity escrow from the Pointillist sale (no comparable amount for the year ended December 31, ~~2023~~2025). In addition, we used less than $0.1 million for each of the ~~year~~years ended December 31, ~~2024~~2025 ~~(no~~and ~~comparable~~2024 ~~amount~~ for ~~the year ended December 31, 2023), for~~ additions to premises and equipment primarily related to the purchase of technology hardware.

Cash Flows from Financing Activities

Net cash provided by financing activities was $03.12 million and $3.0.1 million for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively. During the ~~years~~year ended December 31, ~~2024 and 2023~~2025, we ~~made~~received ~~payments of~~ $011.73 million ~~and~~in ~~$0.5~~proceeds ~~million,~~from ~~respectively~~the Super Senior Facility, tonet ~~satisfy~~of ~~employee~~the ~~tax~~original ~~withholding~~issuance ~~obligations~~discount. We onused ~~the~~$(1.7) ~~issuance~~million offor ~~restricted~~debt ~~share~~issuance ~~units~~costs and ~~restricted shares~~$(3. ~~These~~8) ~~payments~~million ~~were~~related ~~made~~ to ~~tax~~the ~~authorities,~~issuance atof ~~the~~equity, ~~employees’~~in ~~direction,~~connection to ~~satisfy~~the Debt Exchange Transaction. During the ~~employees’~~year ~~tax~~ended December 31, ~~obligations~~2025, ~~rather~~we ~~than~~used ~~issuing~~$0.9 amillion ~~portion~~to ofmake ~~vested~~scheduled ~~restricted~~repayments ~~share~~of ~~units~~our ~~and~~senior ~~restricted~~secured ~~shares~~term toloan ~~employees. In~~(no ~~addition,~~comparative ~~during~~amount for the ~~years~~year ended December 31, 2024). ~~and~~During ~~2023,~~the weyear ~~distributed~~ended ~~$0.1~~December 31, ~~million~~2025, ~~and~~we repaid $01.40 million, ~~respectively,~~under tothe ~~non-controlling~~Revolving ~~interests~~Loan Agreement. During the year ended December 31, 2024, we received proceeds from the issuance of short-term debt of $1.0 million in connection with borrowings under the Revolving Loan Agreement. During the ~~year~~years ended December 31, ~~2023~~2025 and 2024, we ~~received~~made payments of $200.54 million inand ~~proceeds~~$0.7 ~~from~~million, respectively, to satisfy employee tax withholding obligations on the issuance of ~~common~~restricted ~~stock,~~share ~~net~~units of(“RSUs”) ~~issuance~~and ~~costs,~~restricted ~~received $18~~shares.3 These ~~million~~payments inwere ~~proceeds~~made ~~from~~to ~~the~~tax ~~sale~~authorities, ofat ~~treasury~~the ~~stock~~employees’ direction, ~~net~~to ofsatisfy ~~issuance~~the ~~costs~~employees’ ~~and~~tax ~~used~~obligations ~~$30.0~~rather ~~million~~than issuing a portion of ~~the~~vested ~~proceeds~~restricted ~~for~~share ~~repayment~~units ofand ~~debt~~restricted shares to employees. ~~Also~~In addition, during the ~~year~~years ended December 31, ~~2023~~2025 and 2024, we ~~paid~~distributed $40.92 million toand ~~lenders~~$0.1 ormillion, ~~others~~respectively, ~~on behalf of the lenders related~~ to ~~the~~non-controlling ~~debt amendment~~interests.

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Future Uses of Cash

Our significant future liquidity obligations primarily pertain to amortization of the New Facility, amortization and maturity of the Super Senior Facility, interest expense under the New Facility and the Super Senior Facility ~~(see Liquidity section above)~~, and operating lease payments on certain of our premises and equipment.

Significant future uses of cash include the following:

			Payments Due by Period
(in thousands)	Total		~~2025~~2026		~~2026-~~2027-2028		~~2028-~~2029-2030
New Facility (1)	$	6159,~~568~~175	$	~~825~~1,100	$	2,200	$	3155,~~543~~875
Super Senior Facility (2)	12,~~500~~391		94125		250		12,~~156~~016
Revolving Loan Agreement (3)	1,000		1,000		—		—
Interest payments (3)	52,371		12,653		23,802		15,916
Interest expense payments (4)	66,071		14,610		26,520		24,941
Lease payments	1,256		922		282		52
Lease payments	2,567		1,557		854		156
Total	$	225,193	$	14,800	$	26,534	$	183,859
Total	$	88,706	$	18,086	$	29,824	$	40,796

______________________________________

(1) $~~158~~157.68 million of the New Facility matures on April 30, 2030 and $1.4 million of the New Facility matures on January 15, 2029

(2) The Super Senior Facility matures on February 19, 2029

(3) ~~The~~Estimated ~~outstanding~~future ~~balance~~interest ofpayments ~~our~~for ~~Revolving~~the ~~Loan~~New ~~Agreement~~Facility ~~as of December 31, 2024 is $1.0 million~~ and isthe ~~due~~Super onSenior ~~June~~Facility 3,based ~~2025, and may be automatically extended for one year~~ on ~~each anniversary of~~ the ~~maturity~~three-month ~~date. The~~Secured ~~table~~Overnight ~~herein~~Financing ~~reflects~~Rate a(“SOFR”) ~~maturity~~interest ~~date~~rate as of ~~June 3~~December 31, 2025.

~~(4) Estimated~~We ~~future~~believe ~~interest~~we ~~payments~~have ~~based~~sufficient onsources of liquidity to fund our business requirements for the ~~three-month~~next ~~SOFR~~12 ~~interest~~months ~~rate~~and asin the longer term. Our primary sources of ~~March 25~~liquidity are existing cash balances and cash generated from operating activities. We expect that debt related obligations will be satisfied through a combination of repayments prior to maturity, ~~2025~~including from potential proceeds received from the exercise of Cash Exercise Stakeholder Warrants, and the issuance of new debt. We will continue to routinely monitor our funding requirements to ensure we maintain adequate liquidity to meet our business needs. For further information, see Note 11 and Note 22 to the consolidated financial statements and Item 1A. Risk Factors - Risks Related to Financing, Our Indebtedness and Capital Structure.

We anticipate funding future liquidity requirements with a combination of existing cash balances and cash anticipated to be generated by operating activities. For further information, see Note 11, Note 22, and Note 24 to the consolidated financial statements.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements consist of escrow and certain other account arrangements.

We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate and construction review activities. These amounts are held in escrow and other accounts for limited periods of time and are not included in the accompanying consolidated balance sheets. Amounts held in escrow and other accounts were $2050.45 million and $2120.64 million as of December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

CRITICAL ACCOUNTING POLICIES, ESTIMATES AND RECENT ACCOUNTING PRONOUNCEMENTS

We prepare our consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses in our consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates and judgments, however, are often subjective. Actual results may be negatively affected based on changing circumstances. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known.

We have identified the critical accounting policies and estimates addressed below. We also have other key accounting policies, which involve the use of assumptions, estimates and judgments that are significant to understanding our results. For additional information, see Note 2 to the consolidated financial statements. Although we believe that our assumptions, estimates and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.

Table of Content

Goodwill

We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs or circumstances change in a manner that indicates the carrying value may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative goodwill impairment test. Only if we determine, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value, will we calculate the fair value of the reporting unit. When performing the quantitative assessment, we make use of estimates and assumptions to evaluate the fair value of each reporting unit, using a weighting of the income and market valuation approaches as described below.

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to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative goodwill impairment test. Only if we determine, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value, will we calculate the fair value of the reporting unit. When performing the quantitative assessment, we make use of estimates and assumptions to evaluate the fair value of each reporting unit, using a weighting of the income and market valuation approaches as described below.

The income approach applies a fair value methodology to each reporting unit using discounted cash flows, including an estimation of future cash flows, which is based on our internally-developed revenue and profitability forecasts, including estimations of the long-term rate of growth of our business; estimations of the useful life over which cash flows will occur and the determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The market approach includes an analysis of revenue and earnings multiples of guideline public companies compared to the Company. We base fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Our forecasts may change compared to prior period projections due to a variety of factors, including reductions in the rates of residential mortgage delinquencies, defaults, foreclosures and REO volume and economic or market fluctuations that reduce the volume or value of residential mortgage origination or refinancings. We also perform sensitivity analyses of certain significant assumptions in our forecasts and assess the historical accuracy of our estimates. Actual future results may differ from those estimates.

Income Taxes

We record income taxes in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740, Income Taxes (“ASC Topic 740”). We account for certain income and expense items differently for financial reporting purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. The most significant temporary differences relate to accrued compensation, amortization, loss carryforwards and valuation allowances. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we anticipate recovery or settlement of those temporary differences. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted.

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions including evaluating uncertainties under ASC Topic 740. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our results of operations. See Note 20 to the consolidated financial statements for a discussion on the uncertain tax positions.

Recently Adopted and Future Adoption of New Accounting Pronouncements

See Note 2 to the consolidated financial statements for a discussion of the recent adoption of new accounting pronouncements and the future adoption of new accounting pronouncements.

OTHER MATTERS

Customer Concentration

Onity

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 years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized revenue from Onity of $7072.43 million and $6370.24 million, respectively. Revenue from Onity as a percentage of segment and consolidated revenue was as follows:

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	2024		2023
	2025		2024
Servicer and Real Estate	5554	%	55	%
Origination	0	%	0	%
Corporate and Others	—	%	—	%
Consolidated revenue	4442	%	44	%

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 years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized $97.67 million and $9.26 million, 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 December 31, ~~2024~~2025, accounts receivable from Onity totaled $45.41 million, $32.16 million of which was billed and $12.35 million of which was unbilled. As of December 31, ~~2023~~2024, accounts receivable from Onity totaled $34.4 million, $23.21 million of which was billed and $1.23 million of which was unbilled.

Rithm

Onity has disclosed that Rithm is one of its largest servicing clients. As of December 31, ~~2024~~2025, Onity reported that approximately 1410% of loans serviced and subserviced by Onity (measured in UPB) and approximately 6350% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs. In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreements with Onity effective January 31, 2026.

Rithm ~~purchases~~purchased brokerage services for 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 ‘Rithm Brokerage Agreement”) ~~with~~through ~~terms~~August ~~extending~~2025. The ~~through~~Rithm Brokerage Agreement expired on August 31, 2025. At Rithm’s discretion, Altisource has continued to manage REO and receive referrals from portfolios subject to the Rithm Brokerage Agreement despite the expiration of the Rithm Brokerage Agreement. In addition, Rithm also purchases property inspection, preservation and other services from us.

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized revenue from Rithm of $24.32 million and $2.83 million, respectively, under the Rithm Brokerage Agreement and other agreements. For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized additional revenue of $109.86 million and $1210.68 million, respectively, relating to the Subject MSRs when a party other than Rithm ~~selects~~selected ~~Altisource~~us as the service provider.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

Our financial market risk consists primarily of interest rate and foreign currency exchange rate risk.

Interest Rate Risk

Under the terms of the New Facility, the interest rate charged on each of the New Debt isand ~~SOFR,~~the ~~with~~Super aSenior ~~minimum~~Facility ~~floor~~is ofSOFR ~~3.50%,~~ plus 6.50%~~. The~~ ~~interest rate charged on the Super Senior Facility is SOFR,~~ (with a ~~minimum floor of~~ 3.50%, ~~plus~~SOFR 6floor).~~50%.~~ Based on the terms of the New Facility and the Super Senior Facility, a one percentage point increase in SOFR would increase our annual interest expense by approximately $1.2 million, and there would be a $1.2 million decrease in our annual interest expense if there was a one percentage point decrease in SOFR.

Currency Exchange Risk

We are exposed to currency risk from potential changes in currency values of our non-United States dollar denominated expenses, assets, liabilities and cash flows. Our most significant currency exposure relates to the Indian rupee. Based on expenses incurred in Indian rupees for the year ended December 31, ~~2024~~2025, a one percentage point increase or decrease in value of the Indian rupee in relation to the United States dollar would increase or decrease our annual expenses by approximately $0.046 million.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 49)			5254
Consolidated Balance Sheets as of December 31, 2024 and 2023			54
Consolidated Balance Sheets as of December 31, 2025 and 2024			56
Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2024 and 2023			55
Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2025 and 2024			57
Consolidated Statements of Equity (Deficit) for the years ended December 31, 2024 and 2023			56
Consolidated Statements of Equity (Deficit) for the years ended December 31, 2025 and 2024			58
Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023			57
Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024			59
Notes to Consolidated Financial Statements			5861

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Altisource Portfolio Solutions S.A.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Altisource Portfolio Solutions S.A. and its subsidiaries (the Company) as of December 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations and comprehensive income (loss), equity (deficit), and cash flows for the years then ended and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

As discussed in Notes 3, 14, and 22 to the financial statements, the Company has a concentration of revenue associated with its largest customer, Onity Group Inc. (together with its subsidiaries, Onity). The Company has disclosed various developments and uncertainties associated with Onity.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for Income Taxes

As described in Notes 2 and 20 to the financial statements, the Company is subject to income taxes in the United States and a number of foreign jurisdictions. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining foreign tax expense and in evaluating tax positions, including evaluating uncertainties. ~~The~~During the year, management concluded that certain of its previously unrecognized foreign tax positions were more likely than not to be sustained. As a result, the Company ~~recorded~~recognized a $9.6 million reversal of its reserve for uncertain tax positions related to a foreign tax position and a $9.0 million reversal of related accrued interest. The Company’s foreign non-U.S. income tax ~~provision~~benefit ofamounted to $215.71 million for the year ending December 31, ~~2024~~2025, and ~~$19.2~~the ~~million of~~ total unrecognized tax benefits, including interest and penalties, amounted to $3.3 million as of December 31, ~~2024~~2025.

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We identified the accounting for income taxes in foreign jurisdictions as a critical audit matter because of the specialized expertise and high degree of auditor judgment required in auditing the foreign income tax provision related to transfer pricing determinations and evaluating the reasonableness of uncertain tax positions.

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Our audit procedures related to the Company’s accounting for foreign income taxes included the following, among others:

•We tested components of the income tax provision for significant foreign jurisdictions, including evaluating permanent and temporary differences between book and tax reporting balances, and tested the application of statutory tax rates; and

•With the assistance of our tax professionals, including international tax professionals and specialists, we:

–Evaluated the reasonableness of management’s estimates including the reversal of the reserve for uncertain tax positions by considering the application of foreign tax jurisdiction laws and regulations;

–Evaluated the transfer pricing analyses provided by the Company and tested certain transfer pricing computations; and

–Evaluated the completeness of uncertain tax positions and the reasonableness of the outcomes and measurements.

/s/ RSM US LLP

We have served as the Company’s auditor since 2022.

Jacksonville, Florida

March 314, ~~2025~~2026

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Consolidated Balance Sheets

(in thousands, except per share data)

December 31,

2024

2023

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

2926,~~811~~603

3229,~~522~~811

Accounts receivable, net of allowance for credit losses of $3,124 and $3,123, respectively

15,050

11,682

Accounts receivable, net of allowance for credit losses of $2,492 and $3,124, respectively

17,984

15,050

Prepaid expenses and other current assets

69,~~240~~690

116,~~336~~240

Total current assets

5154,~~101~~277

5551,~~540~~101

Premises and equipment, net

~~701~~253

~~1,709~~701

Right-of-use assets under operating leases

21,~~243~~117

32,~~379~~243

Goodwill

55,960

Intangible assets, net

2117,~~468~~085

2621,~~548~~468

Deferred tax assets, net

56,~~629~~342

45,~~992~~629

Other assets

64,~~504~~767

6,~~730~~504

Total assets

~~143~~139,~~606~~801

~~154~~143,~~858~~606

LIABILITIES AND DEFICIT

Current liabilities:

Accounts payable and accrued expenses

3339,~~512~~595

3033,~~088~~512

Current portion of long-term debt

~~230~~1,~~544~~225

—230,544

Deferred revenue

3,~~979~~440

3,~~195~~979

Other current liabilities

32,~~238~~805

23,~~477~~238

Total current liabilities

~~271~~47,~~273~~065

35271,~~760~~273

Long-term debt

—189,861

~~215,615~~—

Deferred tax liabilities, net

98,~~028~~641

9,028

Other non-current liabilities

203,~~016~~697

1920,~~510~~016

Commitments, contingencies and regulatory matters (Note 22)

Deficit:

Common stock ($1.00 par value; 100,000 shares authorized, 29,963 issued and 27,226 outstanding as of December 31, 2024; 29,963 issued and 26,496 outstanding as of December 31, 2023)

29,963

Common stock ($0.01 par value; 250,000 shares authorized, 11,021 issued and 10,994 outstanding as of December 31, 2025; 3,745 issued and 3,403 outstanding as of December 31, 2024)

110

Additional paid-in capital

~~181~~257,~~597~~359

~~177~~211,~~278~~523

Accumulated deficit

(~~259~~363,~~977~~735)

(~~180~~259,~~162~~977)

Treasury stock, at cost (2,737 shares as of December 31, 2024 and 3,467 shares as of December 31, 2023)

(108,959)

(152,749)

Treasury stock, at cost (27 shares as of December 31, 2025 and 342 shares as of December 31, 2024)

(3,948)

(108,959)

Altisource deficit

(~~157~~110,~~376~~214)

(~~125~~157,~~670~~376)

Non-controlling interests

~~665~~751

~~615~~665

Total deficit

(~~156~~109,~~711~~463)

(~~125~~156,~~055~~711)

Total liabilities and deficit

~~143~~139,~~606~~801

~~154~~143,~~858~~606

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share data)

	For the years ended December 31,
	2024		2023
	2025		2024
Revenue	$	~~160~~170,~~134~~975	$	~~145~~160,~~066~~134
Cost of revenue	~~110~~122,~~605~~065		~~115~~110,~~414~~605
Gross profit	4948,~~529~~910		2949,~~652~~529
Operating expense:
Selling, general and administrative expenses	4540,~~620~~976		4645,~~420~~620
Loss on sale of business	685		—
Litigation settlement loss (Note 22)	7,517		—
Income (loss) from operations	3,224		(16,768)
Loss on sale of business	—		685
Income from operations	417		3,224
Other income (expense), net:
Interest expense	(3812,~~877~~173)		(3638,~~103~~877)
Change in fair value of warrant liability	—		1,145
Debt exchange transaction expenses	(3,646)		—
Debt amendment costs	—		(3,410)
Other income (expense), net	1,256		2,786
Other income (expense), net	2,786		2,788
Total other income (expense), net	(14,563)		(36,091)
Total other income (expense), net	(36,091)		(35,580)
Loss before income taxes and non-controlling interests	(14,146)		(32,867)
Loss before income taxes and non-controlling interests	(32,867)		(52,348)
Income tax benefit (provision)	16,074		(2,581)
Income tax provision	(2,581)		(3,714)
Net income (loss)	1,928		(35,448)
Net loss	(35,448)		(56,062)
Net income attributable to non-controlling interests	(313)		(188)
Net income attributable to non-controlling interests	(188)		(228)
Net income (loss) attributable to Altisource	$	1,615	$	(35,636)
Net loss attributable to Altisource	$	(35,636)	$	(56,290)
Earnings (loss) per share:
Loss per share:
Basic	$	0.16	$	(9.99)
Basic	$	(1.25)	$	(2.51)
Diluted	$	0.15	$	(9.99)
Diluted	$	(1.25)	$	(2.51)
Weighted average shares outstanding:
Basic	2810,~~534~~066		223,~~418~~567
Diluted	2811,~~534~~067		223,~~418~~567
Comprehensive loss:
Comprehensive income (loss):
Comprehensive loss, net of tax	$	(35,448)	$	(56,062)
Comprehensive income (loss), net of tax	$	1,928	$	(35,448)
Comprehensive income attributable to non-controlling interests	(~~188~~313)		(~~228~~188)
Comprehensive loss attributable to Altisource	$	(35,636)	$	(56,290)
Comprehensive income (loss) attributable to Altisource	$	1,615	$	(35,636)

See accompanying notes to consolidated financial statements.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Consolidated Statements of Equity (Deficit)

(in thousands)

	Altisource Deficit
	Common stock			Additional paid-in capital		Accumulated deficit		Treasury stock, at cost		Non-controlling interests		Total
	Shares
Balance, January 1, 2023	25,413	$	25,413	$	149,348	$	118,948	$	(413,358)	$	775	$	(118,874)
Balance, January 1, 2024	3,745	$	37	$	207,204	$	(180,162)	$	(152,749)	$	615	$	(125,055)
Net loss	—	—		—		(56,290)		—		228		(56,062)
Distributions to non-controlling interest holders	—	—		—		—		—		(388)		(388)
Reclassification of warrant liability to equity	—	—		6,951		—		—		—		6,951
Share-based compensation expense	—	—		5,068		—		—		—		5,068
Issuance of common stock, net of issuance costs	4,550	4,550		15,911		—		—		—		20,461
Sale of treasury stock, net of transaction costs	—	—		—		(228,322)		246,643		—		18,321
Issuance of restricted share units and restricted shares	—	—		—		(10,071)		10,071		—		—
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances	—	—		—		(4,427)		3,895		—		(532)
Balance, December 31, 2023	29,963	29,963		177,278		(180,162)		(152,749)		615		(125,055)
Net loss	—	—		—		(35,636)		—		188		(35,448)
Distributions to non-controlling interest holders	—	—		—		—		—		(138)		(138)
Share-based compensation expense	—	—		4,737		—		—		—		4,737
Exercise of Warrants, net of costs	—	—		(418)		(3,893)		4,221		—		(90)
Issuance of restricted share units and restricted shares	—	—		—		(26,805)		26,805		—		—
Exercise of warrants, net of costs	—	—		(418)		(3,893)		4,221		—		(90)
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances	—	—		—		(13,481)		12,764		—		(717)
Balance, December 31, 2024	293,~~963~~745	$37	~~29,963~~	$211,523	~~181,597~~	$(259,977)	~~(259,977)~~	$(108,959)	~~(108,959)~~	$665	~~665~~	$(156,711)	~~(156,711)~~
Net income	—	—		—		1,615		—		313		1,928
Distributions to non-controlling interest holders	—	—		—		—		—		(227)		(227)
Share-based compensation expense	—	—		4,347		—		—		—		4,347
Issuance of common stock, net of issuance costs	7,271	73		41,458		—		—		—		41,531
Exercise of warrants, net of costs	5	—		31		(57,525)		57,525		—		31
Issuance of restricted share units and restricted shares	—	—		—		(32,373)		32,373		—		—
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances	—	—		—		(15,475)		15,114		—		(361)
Purchase of fractional shares	—	—		—		—		(1)		—		(1)
Balance, December 31, 2025	11,021	$	110	$	257,359	$	(363,735)	$	(3,948)	$	751	$	(109,463)

See accompanying notes to consolidated financial statements.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Consolidated Statements of Cash Flows

(in thousands)

	For the years ended December 31,
	2024		2023
	2025		2024
Cash flows from operating activities:
Net loss	$	(35,448)	$	(56,062)
Net income (loss)	$	1,928	$	(35,448)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	~~997~~517		~~2,392~~997
Amortization of right-of-use assets under operating leases	1,~~537~~289		1,~~771~~537
Amortization of intangible assets	5,~~080~~183		5,~~182~~080
PIK accrual	~~8,715~~—		68,~~881~~715
Share-based compensation expense	4,~~737~~347		54,~~068~~737
Bad debt expense	~~840~~228		~~858~~840
Amortization of debt discount	3,780		3,777
Amortization of debt premium	(4,127)		—
Amortization of debt issuance costs	2,434		2,446
Amortization of debt discount	915		3,780
Deferred income taxes	(684)		45
Amortization of debt issuance costs	550		2,434
Loss on disposal of fixed assets	14		121
Deferred income taxes	(1,193)		(684)
Loss on sale of business	685		—
Loss on disposal of fixed assets	—		14
Change in fair value of warrant liability	—		(1,145)
Loss on sale of business	—		685
Changes in operating assets and liabilities:
Accounts receivable	(43,~~208~~162)		~~449~~(4,208)
Prepaid expenses and other current assets	1(2,~~658~~442)		121,~~231~~658
Other assets	~~268~~2,073		~~(1,667)~~268
Accounts payable and accrued expenses	36,~~704~~083		(3,~~419)~~704
Current and non-current operating lease liabilities	(1,~~595~~342)		(1,~~777~~595)
Other current and non-current liabilities	2(15,~~461~~912)		12,~~016~~461
Net cash used in operating activities	(5,~~025~~065)		(215,~~833~~025)
Cash flows from investing activities:
Additions to premises and equipment	(369)		—(3)
Proceeds from the sale of business	~~2,257~~—		—2,257
Net cash provided by investing activities	2,254		—
Other investing activities	(250)		—
Net cash (used in) provided by investing activities	(319)		2,254
Cash flows from financing activities:
Proceeds from revolving loan agreement	1,000		—
Proceeds from the Super Senior Facility	11,250		—
Proceeds from issuance of common stock, net of issuance costs	—		20,461
Debt issuance costs	(1,742)		—
Proceeds from issuance of treasury stock, net of issuance costs	—		18,321
Repayments of long-term debt	(934)		—
Exercise of Warrants, net of costs	(90)		—
Equity issuance costs	(3,839)		—
Debt issuance and amendment costs	—		(4,886)
Purchase of fractional shares	(1)		—
Repayments of long-term debt	—		(30,000)
(Repayment of) proceeds from revolving loan	(1,000)		1,000
Distributions to non-controlling interests	(138)		(388)
Proceeds from exercise of warrants, net of costs	31		(90)
Payments of tax withholding on issuance of restricted share units and restricted shares	(717)		(532)
Distributions to non-controlling interests	(227)		(138)
Net cash provided by financing activities	55		2,976
Payments of tax withholding on issuance of restricted share units and restricted shares	(361)		(717)
Net decrease in cash, cash equivalents and restricted cash	(2,716)		(18,857)
Net cash provided by financing activities	3,177		55
Cash, cash equivalents and restricted cash at the beginning of the period	35,416		54,273
Net decrease in cash, cash equivalents and restricted cash	(2,207)		(2,716)
Cash, cash equivalents and restricted cash at the end of the period	$	32,700	$	35,416
Cash, cash equivalents and restricted cash at the beginning of the period	32,700		35,416
Supplemental cash flow information:
Cash, cash equivalents and restricted cash at the end of the period	$	30,493	$	32,700
Interest paid	$	23,810	$	22,876
Income taxes paid (refunded), net	2,053		(3,775)
Acquisition of right-of-use assets with operating lease liabilities	488		500
Reduction of right-of-use assets from operating lease modifications or reassessments	(87)		(671)
Non-cash investing and financing activities:
Warrants issued in connection with Amended Credit Agreement	—		8,096
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets and the consolidated statements of cash flows as of December 31:
	2024		2023
Cash and cash equivalents	$	29,811	$	32,522
Restricted cash	2,889		2,894
Total cash, cash equivalents and restricted cash reported in the statements of cash flows	$	32,700	$	35,416

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	For the years ended December 31,
	2025		2024

Supplemental cash flow information:
Interest paid	$	14,622	$	23,810
Income taxes paid, net	(13)		2,053
Acquisition of right-of-use assets with operating lease liabilities	325		488
Reduction of right-of-use assets from operating lease modifications or reassessments	(162)		(87)

Non-cash investing and financing activities:

Equity issued in exchange for debt reduction	45,370		—


The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets and the consolidated statements of cash flows as of December 31:
	2025		2024

Cash and cash equivalents	$	26,603	$	29,811
Restricted cash	3,890		2,889
Total cash, cash equivalents and restricted cash reported in the statements of cash flows	$	30,493	$	32,700

See accompanying notes to consolidated financial statements.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements

NOTE 1 — ORGANIZATION

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.

NOTE 2 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Presentation

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany transactions and accounts have been eliminated in consolidation. As described in Note 23, we conduct our operations through two reportable segments: Servicer and Real Estate and Origination. In addition, we report Corporate and Others separately. Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation.

Principles of Consolidation

The financial statements include the accounts of the Company, its wholly-owned subsidiaries and those entities in which we have a variable interest and are the primary beneficiary.

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. The ~~that~~initial ~~ends~~term of the management agreement ended on December 31, 2025 ~~(with~~and ~~renewals~~automatically renewed for ~~three~~five-year ~~successive~~renewal term ending December 31, 2030. The management agreement provides for up to two additional automatic five-year ~~periods~~renewal atterms ~~MPA’s option)~~thereafter.

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 consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of December 31, ~~2024~~2025, Lenders One had total assets of $0.46 million and total liabilities of $0.34 million. As of December 31, ~~2023~~2024, Lenders One had total assets of $0.4 million and total liabilities of $0.63 million.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, determining share-based compensation, income taxes, collectability of receivables, valuation of acquired intangibles and goodwill, depreciable lives and valuation of fixed assets and contingencies. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

We classify all highly liquid instruments with an original maturity of three months or less at the time of purchase as cash equivalents.

Accounts Receivable, Net

Accounts receivable are presented net of an allowance for expected credit losses. 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. The carrying value of accounts receivable, net, approximates fair value.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

Premises and Equipment, Net

We report premises and equipment, net at cost or estimated fair value at acquisition for premises and equipment recorded in connection with a business combination and depreciate these assets over their estimated useful lives using the straight-line method as follows:


Furniture and fixtures			5 years
Office equipment			5 years
Computer hardware			3-5 years
Computer software			3-7 years
Leasehold improvements			Shorter of useful life, 10 years or the term of the lease

Maintenance and repair costs are expensed as incurred. We capitalize expenditures for significant improvements and new equipment and depreciate the assets over the shorter of the capitalized asset’s life or the life of the lease.

We review premises and equipment for impairment following events or changes in circumstances that indicate the carrying amount of an asset or asset group may not be recoverable. We measure recoverability of assets to be held and used by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge for the amount that the carrying value of the asset or asset group exceeds the fair value of the asset or asset group.

Computer software includes the fair value of software acquired in business combinations, capitalized software development costs and purchased software. Capitalized software development and purchased software are recorded at cost and amortized using the straight-line method over their estimated useful lives. Software acquired in business combinations is recorded at fair value and amortized using the straight-line method over its estimated useful life.

Business Combinations

We account for acquisitions using the purchase method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of an acquisition is allocated to the assets acquired and liabilities assumed using their fair value as of the acquisition date.

Goodwill

Goodwill represents the excess cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We evaluate goodwill for impairment annually during the fourth quarter or more frequently when an event occurs or circumstances change in a manner that indicates the carrying value may not be recoverable. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether we need to perform the quantitative goodwill impairment test. Only if we determine, based on qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying value will we calculate the fair value of the reporting unit. We would then test goodwill for impairment by comparing the fair value of the reporting unit with its carrying amount. If the fair value is determined to be less than its carrying amount, we recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We estimate the fair value of the reporting unit using discounted cash flows and market comparisons. The discounted cash flow method is based on the present value of projected cash flows. Forecasts of future cash flows are based on our estimate of future sales and operating expenses, based primarily on estimated pricing, sales volumes, market segment share, cost trends and general economic conditions. The estimated cash flows are discounted using a rate that represents our estimated weighted average cost of capital. The market comparisons include an analysis of revenue and earnings multiples of guideline public companies compared to the Company.

Intangible Assets, Net

Identified intangible assets consist primarily of customer related intangible assets, operating agreements, trademarks and trade names and other intangible assets. Identifiable intangible assets acquired in business combinations are recorded based on their fair values at the date of acquisition. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any arrangements, the history of the asset, our long-term strategy for use of the asset and other economic factors. We amortize intangible assets that we deem to have definite lives in proportion to actual and expected customer revenues or on a straight-line basis over their useful lives, generally ranging from 4 to 20 years.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

We perform tests for impairment if conditions exist that indicate the carrying value may not be recoverable. When facts and circumstances indicate that the carrying value of intangible assets determined to have definite lives may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of cash flows of discrete intangible assets generally consistent with models utilized for internal planning purposes. If the sum of the undiscounted expected future cash flows is less than the carrying value, we recognize an impairment to the extent the carrying amount exceeds fair value.

Long-Term Debt

Long-term debt is reported net of applicable discount or premium and net of debt issuance costs. The debt discount or premium and debt issuance costs are amortized to interest expense through maturity of the related debt using the effective interest method.

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.

Share Consolidation

On May 28, 2025, Altisource Portfolio Solutions S.A. effected a consolidation of its shares of common stock (the “common stock”) (also known as a reverse stock split) at a ratio of 1-for-8 (the “Share Consolidation”). As a result of the Share Consolidation, every 8 shares of common stock outstanding immediately prior to effectiveness of the Share Consolidation were combined and converted into one share of common stock, reducing the total number of issued and outstanding shares from 88,129,766 to 11,016,220. No fractional shares were issued in connection with the Share Consolidation. Instead, shareholders received cash in lieu of fractional shares, based on the closing price of Altisource’s common stock on May 27, 2025.

The Share Consolidation did not change the authorized number of shares of Altisource’s common stock.

All share and per share amounts and exercise prices of stock options, and warrants in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the Share Consolidation for all periods presented.

Functional Currency

The currency of the primary economic environment in which our operations are conducted is the United States dollar. Therefore, the United States dollar has been determined to be our functional and reporting currency. Non-United States dollar transactions and balances have been measured in United States dollars in accordance with ASC Topic 830, Foreign Currency Matters. All transaction gains and losses from the measurement of monetary balance sheet items denominated in non-United States dollar currencies are reflected in the consolidated statements of operations and comprehensive (loss) income as income or expenses, as appropriate.

Defined Contribution 401(k) Plan

Some of our employees participate in a defined contribution 401(k) plan under which we may make matching contributions equal to a discretionary percentage determined by us. We recorded expenses of $0.2 million for both the years ended December 31, ~~2024~~2025 and ~~2023~~2024, related to our discretionary contributions.

Revenue Recognition

We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive. This revenue can be recognized at a point in time or over time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (unbilled accounts receivable) or a contract liability (deferred revenue or other current liabilities), as appropriate. A description of our principal revenue generating activities are as follows:

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (unbilled accounts receivable) or a contract liability (deferred revenue or other current liabilities), as appropriate. A description of our principal revenue generating activities are as follows:

Servicer and Real Estate

•For property preservation and inspection services and payment management technologies, we recognize transactional revenue when the service is provided.

•For residential real estate renovation services, we recognize revenue over time as work is completed, measured by the percentage of work performed relative to the total project. Field inspections by qualified professionals form a fundamental part of the Company’s assessment, measure and documentation of work completed on real estate renovations.

•For vendor management transactions, we recognize revenue over the period during which services are provided.

60•For construction loan fund disbursement services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

•For fund disbursement services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements.

•For foreclosure trustee services, we recognize revenue as work progresses, in accordance with agreed upon milestones with full recognition upon completion and/or recording the related foreclosure deed.

•For the real estate auction platform, real estate auction and real estate brokerage services, we recognize revenue on a net basis (i.e., the commission on the sale) at the closing of the sale of the REO as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage or amount.

•For SaaS based technology to manage REO, we recognize revenue over the estimated average number of months the REO properties are on the platform before they are sold.

•For loan servicing technologies, we generally recognize revenue based on the number of loans on the system. We generally recognized revenue from professional services as services are provided.

•Reimbursable expenses revenue related to property preservation and inspection services, real estate sales title services and foreclosure trustee services is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers.

Origination

•For the majority of the services we provide, we recognize transactional revenue when the service is provided. We recognize membership fees from ~~Lender~~Lenders One members ratably over the term of membership.

•For vendor management oversight software-as-a-service (“SaaS”), we recognize revenue over the period during which we perform the services.

Share-Based Compensation

Share-based compensation is accounted for under the provisions of ASC Topic 718, Compensation - Stock Compensation (“ASC Topic 718”). Under ASC Topic 718, the cost of services received in exchange for an award of equity instruments is generally measured based on the grant date fair value of the award. Share-based awards that do not require future service are expensed immediately. Share-based awards that require future service are recognized over the relevant service period. The Company has made an accounting policy election to account for forfeitures in compensation expense as they occur.

Income Taxes

We record income taxes in accordance with ASC Topic 740, Income Taxes (“ASC Topic 740”). We account for certain income and expense items differently for financial reporting purposes and income tax purposes. We recognize deferred income tax assets and liabilities for these differences between the financial reporting basis and the tax basis of our assets and liabilities as well as expected benefits of utilizing net operating loss and credit carryforwards. The most significant temporary differences relate to accrued compensation, interest expense, amortization, loss carryforwards and valuation allowances. We measure deferred income tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we anticipate recovery or settlement of those temporary differences. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

Earnings Per Share

We compute earnings per share in accordance with ASC Topic 260, Earnings Per Share. Basic net income per share is computed by dividing net income attributable to Altisource by the weighted average number of shares of common stock outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities using the treasury stock method.

Recently Adopted Accounting Pronouncements

In ~~November~~December 2023, the FASB issued ASU 2023-0709, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures. This standard ~~updates~~amends ~~reportable~~the ~~segment~~Codification ~~disclosure~~to ~~requirements~~enhance ~~primarily~~the ~~through~~transparency ~~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~~usefulness ~~addition,~~of itincome ~~adds~~tax ~~or makes clarifications to other segment-related~~ disclosures, ~~such~~to asprovide ~~clarifying~~information ~~that~~to ~~the~~better ~~disclosure~~assess ~~requirements~~how inan ~~ASC~~entity’s ~~280~~operations ~~are~~and ~~required~~related ~~for~~tax ~~entities~~risks ~~with~~and atax ~~single~~planning ~~reportable segment~~ and ~~that~~operational anopportunities ~~entity~~affect ~~may~~its ~~disclose~~tax ~~multiple~~rate ~~measures~~and ofprospects ~~segment~~for ~~profit~~future ~~and~~cash ~~loss~~flows. The Company adopted this standard effective January 1, ~~2024~~2025 and has applied it prospectively. Adoption of this new standard did not have a material impact on the Company’s consolidated financial statements~~, we have updated our disclosures based on the requirements~~.

Future Adoption of New Accounting Pronouncement

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.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This standard amends the Codification to enhance the disclosure requirements in the notes to the financial statements, of specified information about certain costs and expenses in interim and year-end reporting periods. This standard will be effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

~~NOTE~~In 3July —2025, ~~CUSTOMER~~the ~~CONCENTRATION~~FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This standard provides a practical expedient to assume that conditions as of the balance sheet date remains unchanged over the life of the asset estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This standard will be effective for annual periods beginning after December 15, 2025, and for interim periods within those annual reporting periods. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

~~Onity~~In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This standard clarifies the form and content requirements for interim financial statements and introduces a disclosure principle requiring entities to report material events and changes occurring after the most recent annual period. This standard will be effective for interim periods within fiscal years beginning after December 15, 2027, for public business entities. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

~~Onity~~In ~~Group~~December ~~Inc~~2025, the FASB issued ASU 2025-12, Codification Improvements. This ~~(together~~standard ~~with~~provides ~~its~~clarification ~~subsidiaries~~and minor updates to various Topics in the FASB Accounting Standards Codification, ~~“Onity”)~~including ~~(formerly~~guidance ~~Ocwen~~related ~~Financial~~to ~~Corporation~~earnings per share, orlease ~~“Ocwen”)~~receivables, isbeneficial ainterests, ~~residential~~treasury ~~mortgage~~stock, ~~loan~~and ~~servicer~~transfers of ~~mortgage~~receivables. This ~~servicing~~standard ~~rights~~will ~~(“MSRs”)~~be iteffective ~~owns~~for annual periods beginning after December 15, ~~including~~2026, and for interim periods within those ~~MSRs~~annual inreporting ~~which~~periods. Early ~~others~~adoption ~~have~~of anthis ~~economic~~standard ~~interest,~~is ~~and~~permitted. The aCompany ~~subservicer~~is ofcurrently ~~loans~~evaluating ~~owned~~the byimpact ~~others~~this guidance may have on its consolidated financial statements.

During the year ended December 31, 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.65

	2024		2023
Servicer and Real Estate	55	%	55	%
Origination	0	%	0	%
Corporate and Others	—	%	—	%
Consolidated revenue	44	%	44	%

Table of Contents

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

WeNOTE ~~earn~~3 ~~additional~~— ~~revenue~~CUSTOMER 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 years ended December 31, 2024 and 2023, we recognized $9.6 million and $9.2 million, 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.CONCENTRATION

~~As of December 31, 2024, accounts receivable from~~ Onity totaled $4.4 million, $3.1 million of which was billed and $1.3 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.

Onity Group Inc. (together with its subsidiaries, “Onity”) 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 year ended December 31, 2025, Onity was our largest customer, accounting for 42% 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 years ended December 31, 2025 and 2024, we recognized revenue from Onity of $72.3 million and $70.4 million, respectively. Revenue from Onity as a percentage of segment and consolidated revenue was as follows for the years ended December 31:


	2025		2024

Servicer and Real Estate	54	%	55	%
Origination	0	%	0	%
Corporate and Others	—	%	—	%
Consolidated revenue	42	%	44	%

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 years ended December 31, 2025 and 2024, we recognized $7.7 million and $9.6 million, 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.

Rithm

Rithm ~~purchases~~purchased 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 “Rithm Brokerage Agreement”) ~~with~~through ~~terms~~August ~~extending~~2025. The ~~through~~Rithm Brokerage Agreement expired on August 31, 2025. At Rithm’s discretion, Altisource has continued to manage REO and receive referrals with limited exceptions from portfolios subject to the Rithm Brokerage Agreement despite the expiration of the Rithm Brokerage Agreement. In addition, Rithm also purchases property inspection, preservation and other services from us.

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized revenue from Rithm of $24.32 million and $2.83 million, respectively~~, under the Rithm Brokerage Agreement~~. For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we recognized additional revenue of $109.86 million and $1210.68 million, respectively, relating to the Subject MSRs when a party other than Rithm ~~selects~~selected ~~Altisource~~us as the service provider.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

NOTE 4 — ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consists of the following as of December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

Billed

1012,~~728~~796

912,~~826~~169

Unbilled

7,~~446~~680

46,~~979~~005

18,174

14,805

20,476

18,174

Less: Allowance for credit losses

(32,~~124~~492)

(3,~~123~~124)

Total

1517,~~050~~984

1115,~~682~~050

~~Unbilled~~Billed accounts receivable ~~consist~~includes ~~primarily~~receivables offrom certain real estate asset management services, REO and foreclosure sales, and title and closing services, for which we generally recognize revenue when the service is provided but collect upon closing of the sale,. asUnbilled ~~well~~accounts asreceivable also includes receivables from 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. As of January 1, ~~2024~~2025, gross accounts receivable totaled $1418.82 million, $912.82 million of which was billed and $56.0 million of which was unbilled, less allowance for credit losses of $3.1 million, resulting in net accounts receivable of $1115.71 million. As of January 1, ~~2023~~2024, gross accounts receivable totaled $1714.48 million, $1211.02 million of which was billed and $53.46 million of which was unbilled, less allowance for credit losses of $43.41 million, resulting in net accounts receivable of $1311.07 million. The increase in unbilled accounts receivable in 2024 relates to the recently launched residential real estate renovation services. 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 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.

63We 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 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) / Subtractions
(in thousands)	Balance at Beginning of Period		Charged to Expenses		Deductions Note(1)		Balance at End of Period

Allowance for expected credit losses:

Year ended December 31, 2025	$	3,124	$	228	$	(860)	$	2,492
Year ended December 31, 2024	3,123		840		(839)		3,124

______________________________________
(1) Amounts written off as uncollectible or transferred to other accounts or utilized.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

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:
Year ended December 31, 2024	$	3,123	$	840	$	839	$	3,124
Year ended December 31, 2023	4,363		858		2,098		3,123
______________________________________
(1) Amounts written off as uncollectible or transferred to other accounts or utilized.

NOTE 5 — PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following as of December 31:

(in thousands)	~~2024~~2025		~~2023~~2024
Prepaid expenses	$	34,~~620~~291	$	3,~~722~~620
Income taxes receivable	1,043		325
Maintenance agreements, current portion	1,203		962
Indemnity escrow receivable from Pointillist sale	—		3,201
Income taxes receivable	1,243		1,043
Maintenance agreements, current portion	962		1,327
Restricted cash	1,031		23
Restricted cash	23		23
Surety bond collateral	1,000		—
Other current assets	~~592~~922		~~2,738~~592
Total	$	69,~~240~~690	$	116,~~336~~240

NOTE 6 — PREMISES AND EQUIPMENT, NET

Premises and equipment, net consists of the following as of December 31:

(in thousands)	~~2024~~2025		~~2023~~2024
Computer hardware and software	$	46,~~074~~093	$	46,~~519~~074
Leasehold improvements	709		~~1,011~~709
Furniture and fixtures	72		~~102~~72
Office equipment and other	17		17
	46,872		47,649
	46,891		46,872
Less: Accumulated depreciation and amortization	(46,~~171~~638)		(4546,~~940~~171)
Total	$	~~701~~253	$	~~1,709~~701

Depreciation and amortization expense amounted to $1.0.5 million and $21.40 million for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, 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 consolidated statements of operations and comprehensive income (loss).

64Premises and equipment, net consist of the following by country as of December 31:


(in thousands)	2025		2024

Luxembourg	$	190	$	554
India	40		124
United States	20		23
Uruguay	3		—

Total	$	253	$	701

Table of Contents

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

Premises and equipment, net consist of the following by country as of December 31:

(in thousands)	2024		2023
Luxembourg	$	554	$	1,131
India	124		492
United States	23		64
Uruguay	—		22
Total	$	701	$	1,709

NOTE 7 — RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET

Right-of-use assets under operating leases, net consists of the following as of December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

Right-of-use assets under operating leases

6,~~177~~340

76,~~242~~177

Less: Accumulated amortization

(35,~~934~~223)

(3,~~863~~934)

Total

21,~~243~~117

32,~~379~~243

Amortization of operating leases was $1.53 million and $1.85 million for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, 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 consolidated statements of operations and comprehensive income (loss).

NOTE 8 — 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 December 31, 2024 and 2023	$	30,681	$	25,279	$	—	$	55,960
Balance as of December 31, 2025 and 2024	$	30,681	$	25,279	$	—	$	55,960

We determined that each reportable segment represents a reporting unit. Goodwill was allocated to each reporting unit based on the relative fair value of each of our reporting units.

Intangible Assets, net

Intangible assets, net consist of the following as of December 31:

	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization				Net book value
(in thousands)		~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024
Definite lived intangible assets:
Customer related intangible assets	9	$	213,912	$	~~214~~213,~~307~~912	$	(~~203~~206,~~221~~182)	$	(~~200~~203,~~656~~221)	$	107,~~691~~730	$	1310,~~651~~691
Operating agreement	20	35,000		35,000		(2627,~~104~~854)		(2426,~~354~~104)		87,~~896~~146		108,~~646~~896
Trademarks and trade names	16	~~9,709~~$	9,709	~~9,709~~$	9,709	~~(7,828)~~$	(8,198)	~~(7,458)~~$	(7,828)	~~1,881~~$	1,511	~~2,251~~$	1,881
Total		$	258,621	$	259,016	$	(237,153)	$	(232,468)	$	21,468	$	26,548
Non-compete agreements	2	432		—		(41)		—		391		—
Intellectual property	1	368		—		(61)		—		307		—
Total		$	259,421	$	258,621	$	(242,336)	$	(237,153)	$	17,085	$	21,468

65Amortization expense for definite lived intangible assets was $5.2 million and $5.1 million for the years ended December 31, 2025 and 2024, respectively. Forecasted annual definite lived intangible asset amortization expense for 2026 through 2030 is $5.5 million, $4.9 million, $4.4 million, $2.1 million and $0.2 million, respectively.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

Amortization expense for definite lived intangible assets was $5.1 million and $5.2 million for the years ended December 31, 2024 and 2023, respectively. Forecasted annual definite lived intangible asset amortization expense for 2025 through 2029 is $5.1 million, $4.9 million, $4.7 million, $4.4 million and $2.1 million, respectively.

NOTE 9 — OTHER ASSETS

Other assets consist of the following as of December 31:

(in thousands)	~~2024~~2025		~~2023~~2024
Restricted cash	$	2,~~866~~859	$	2,~~871~~866
Security deposits	332		397
Surety bond collateral	—		2,000
Surety bond collateral	2,000		2,000
Security deposits	337		332
Other	1,~~306~~571		1,~~462~~306
Total	$	64,~~504~~767	$	6,~~730~~504

NOTE 10 — ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consist of the following as of December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

Accounts payable

1713,~~887~~487

1517,~~275~~887

Accrued expenses - general

917,~~591~~282

89,~~637~~591

Accrued salaries and benefits

56,~~022~~659

5,~~048~~022

Income taxes payable

12,~~012~~167

1,~~128~~012

Total

3339,~~512~~595

3033,~~088~~512

Other current liabilities consist of the following as of December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

Operating lease liabilities

~~1,495~~899

1,~~570~~495

Revolving loan agreement

~~992~~—

—992

Other

~~751~~1,906

~~907~~751

Total

32,~~238~~805

23,~~477~~238

Revolving Loan Agreement

InOn June 3, 2024, in connection with the Company’s ~~residential~~Property ~~real~~Renovation ~~estate~~Services ~~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~~then related-party, Altisource Asset Management Corporation (“AAMC”) (the “Revolving Loan Agreement”).

The maturity date of the Revolving Loan Agreement iswas June 3, 2025 and ~~may~~can 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. During the second quarter of 2025, the Revolving Loan Agreement maturity date was extended to June 3, 2026.

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~~pays ~~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.

66Altisource’s obligation under the Revolving Loan Agreement is secured by certain receivables related to the Company’s residential real estate renovation services business. The outstanding balance on the Revolving Loan Agreement is due and payable on the maturity date.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

~~Altisource’s~~As ~~obligation~~of ~~under~~December ~~the~~31, ~~Revolving~~2024, ~~Loan~~there ~~Agreement~~was is$1.0 ~~secured~~million byof ~~certain~~outstanding ~~receivables~~debt ~~related~~under to the ~~Company’s~~Revolving ~~residential~~Loan ~~real~~Agreement ~~estate~~which ~~renovation~~is ~~services~~included ~~business. The~~in ~~outstanding~~other ~~balance~~current onliabilities in the ~~Revolving~~accompanying ~~Loan~~consolidated ~~Agreement~~balance issheet ~~due~~(no ~~and~~comparative ~~payable~~amount onfor the ~~maturity~~year ~~date~~ended December 31, 2025).

As of December 31, 2024, there was $1.0 million outstanding debt under the Revolving Loan Agreement which is included in other current liabilities in the accompanying consolidated balance sheet.

NOTE 11 — LONG-TERM DEBT

Long-term debt consists of the following as of December 31:

(in thousands)	~~2024~~2025		~~2023~~2024
Senior secured term loans	$	~~232~~159,~~800~~175	$	~~224~~232,~~085~~800
Less: Debt issuance and amendment costs, net	(884)		(3,318)
Super senior term loan	12,391		—
Less: Unamortized discount, net	(1,372)		(5,152)
Total principal debt	171,566		232,800
Net long-term debt	230,544		215,615
Plus: Unamortized premium	22,157		—
Less: Current portion of long-term debt	(230,544)		—
Less: Unamortized discount	(1,707)		(1,372)
Total long-term debt, less current portion	$	—	$	215,615
Less: Unamortized debt issuance and amendment costs	(930)		(884)
Long-term debt, net	191,086		230,544
Less: Current maturities of long-term debt	(1,225)		(230,544)
Total long-term debt	$	189,861	$	—

Principal payments are due as follows:


(in thousands)	Total

2026	1,225
2027	1,225
2028	1,225
2029	14,459
2030	153,432
Total debt	$	171,566

Senior Secured Term Loans

In April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l. (the “Borrower”), 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 (the “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~~On ~~maturity~~February ~~date~~19, of2025, ~~the~~Altisource ~~SSTL~~Portfolio ~~under~~Solutions ~~the~~S.A. ~~Amended~~and ~~Credit~~the ~~Agreement~~Borrower isentered ~~April~~into ~~30,~~agreements ~~2025. Since~~with ~~the~~100% ~~aggregate amount~~ of ~~par~~the ~~paydowns~~lenders onunder the SSTL ~~made~~(the ~~prior~~“Lenders”). toUnder ~~February~~these 14agreements, ~~2024~~the ~~using~~Lenders ~~proceeds~~exchanged ~~from~~the ~~issuances~~SSTL ofwith ~~equity~~an ~~interests~~outstanding orbalance ~~from~~of ~~junior~~$232.8 ~~indebtedness~~million ~~(“Aggregate~~for ~~Paydowns”)~~a ~~was~~$160.0 ~~equal~~million tonew orfirst ~~greater~~lien ~~than~~loan ~~$30~~facility ~~million,~~ (the ~~maturity~~“New ~~date~~Facility”) ofand ~~the~~7.3 ~~SSTL~~million ~~may~~shares beof ~~extended~~common atstock (the ~~Company’s~~“Debt ~~option~~Exchange toShares”) ~~April 30~~(collectively, ~~2026. Such~~the ~~extension~~“Debt isExchange ~~conditioned~~Transaction”). The ~~upon~~New ~~the~~Facility ~~Company’s~~is ~~payment~~comprised of a 2%$110.0 ~~payment~~million interest-~~in-kind~~bearing ~~extension~~loan ~~fee~~(the on“New orDebt”) ~~before~~and ~~April~~a ~~30,~~$50.0 ~~2025~~million ~~and~~non-interest-bearing ~~subject~~exit tofee (the ~~representations~~“Exit ~~and~~Fee”). Altisource ~~warranties~~Portfolio ~~being~~Solutions ~~true~~S.A. and ~~correct~~its assubsidiaries, ofsubject ~~such~~to ~~date~~applicable ~~and~~exclusions ~~there~~in ~~being~~the noNew ~~default~~Facility orcredit ~~event~~agreement of(the ~~default~~“New ~~being~~Facility inCredit ~~existence~~Agreement”), asare ofguarantors ~~such~~on ~~date~~the New Facility (collectively, the “Guarantors”).

~~All~~We ~~amounts~~evaluated ~~outstanding~~the ~~under~~Debt ~~the~~Exchange ~~SSTL~~Transaction ~~will~~in ~~become~~accordance ~~due~~with onASC ~~the~~470-60 ~~earlier~~Troubled ofDebt ~~(i)~~Restructuring. ~~the~~The ~~maturity~~evaluation ~~date,~~for ~~and~~troubled ~~(ii)~~debt ~~the~~restructuring ~~date~~includes onassessing ~~which~~both ~~the~~qualitative ~~loans~~and ~~are~~quantitative ~~declared~~factors to bedetermine ~~due~~whether ~~and~~the ~~owing~~creditor bygranted ~~the~~a ~~administrative~~concession ~~agent~~and atwhether the ~~request~~Company ~~(or~~is ~~with~~experiencing ~~the~~financial ~~consent)~~difficulties. ofOur ~~the~~quantitative ~~Required~~analysis ~~Lenders~~consisted ~~(as~~of ~~defined~~comparing in the ~~Amended~~effective ~~Credit~~borrowing ~~Agreement;~~rate ~~other~~on ~~capitalized~~the ~~terms,~~New ~~unless~~Facility ~~defined~~to ~~herein, are defined in~~ the ~~Amended~~effective ~~Credit~~borrowing ~~Agreement)~~rate oron asthe ~~otherwise~~SSTL ~~provided~~immediately inbefore the ~~Amended~~Debt ~~Credit~~Exchange ~~Agreement~~Transaction. ~~upon~~For ~~the~~purposes ~~occurrence~~ of ~~any~~ASC ~~event~~470-60 ofTroubled ~~default. There~~Debt ~~are~~Restructuring, nothe ~~mandatory~~Company ~~repayments~~concluded ofthat (1) the ~~SSTL,~~lenders ~~except~~granted asthe ~~set~~Company ~~forth~~a ~~herein,~~concession ~~until~~by reducing the ~~April~~effective ~~30,~~borrowing ~~2025~~rate ~~maturity~~on ~~when~~ the ~~balance~~debt isand ~~due. If~~(2) the ~~maturity~~Company ~~date~~was isexperiencing ~~extended~~financial todifficulties. As ~~April~~a 30result, ~~2026,~~ the ~~Company~~Debt isExchange ~~required~~Transaction towas ~~make~~accounted ~~mandatory~~for ~~repayments~~as ofa ~~$5.2~~troubled ~~million~~debt inrestructuring. The ~~the~~carrying ~~first~~value ~~quarter~~ of ~~2026 with~~ the ~~remaining~~New ~~balance~~Facility ~~due~~was atdetermined ~~the~~as ~~April 2026 maturity.~~follows:

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.71

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

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

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 December 31, 2024, including the PIK component, was 13.45%.


(in thousands)	Total

SSTL immediately before the Debt Exchange Transaction	$	232,800
Unamortized debt issuance costs and discount immediately before the Debt Exchange Transaction	(1,296)
Less: fair value of equity issued to the SSTL lenders	(45,370)
Less: fees paid to third parties on behalf of the SSTL lenders	(1,145)
Carrying value of the New Facility	$	184,989
Comprised of:
Par value of the New Facility	$	160,000
Premium	26,285
Unamortized debt issuance costs and discount	(1,296)
Carrying value of the New Facility	$	184,989

~~If,~~In asconnection ofwith the ~~end~~Debt ofExchange ~~any calendar quarter~~Transaction, ~~(i)~~ the ~~amount~~Company ofalso ~~unencumbered~~paid ~~cash~~$3.6 ~~and~~million ~~cash~~to ~~equivalents~~advisors ~~of Altisource S.à r.l.~~ and ~~its~~others ~~direct~~ and ~~indirect~~recorded ~~subsidiaries~~these onpayments ~~a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast~~ as ofother ~~the~~expense ~~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~~consolidated ~~quarter~~statements ~~may~~of beoperations ~~paid~~and incomprehensive ~~kind~~(loss) ~~at the Company’s election~~income.

The ~~payment~~maturity ofdate ~~all~~for ~~amounts~~$157.8 ~~owing~~million byof ~~Altisource under~~ the ~~Amended~~New ~~Credit~~Facility ~~Agreement~~ is ~~guaranteed~~April by30, ~~the~~2030 ~~Guarantors~~ and isthe ~~secured~~maturity bydate afor ~~pledge~~$1.4 ofmillion ~~all equity interests~~ of ~~certain subsidiaries of Altisource, as well as a lien on substantially all of~~ the ~~assets~~New ofFacility ~~Altisource~~is ~~S.à r.l.~~January ~~and the Guarantors~~15, ~~subject to certain exceptions~~2029.

The ~~Amended~~New ~~Credit~~Facility ~~Agreement~~requires ~~includes~~mandatory ~~covenants~~prepayments ~~that~~of ~~restrict~~the orterm ~~limit~~loans, ~~among~~subject to customary exceptions, as follows: (i) 100% of the proceeds of any other ~~things~~debt not permitted by the New Facility Credit Agreement, ~~our~~(ii) ~~ability~~95% of the net proceeds from the exercise of the Cash Exercise Stakeholder Warrants, (iii) 100% of the proceeds of Asset Sales (as defined in the New Facility Credit Agreement), subject to customary reinvestment rights for net proceeds of less than $3 million and certain exceptions, ~~and~~where ~~baskets~~applicable, to(iv) ~~incur~~100% ~~indebtedness;~~of ~~incur~~insurance ~~liens~~or oncondemnation ~~our~~proceeds ~~assets;~~in ~~sell~~excess of $10,000,000 ~~transfer~~in orthe ~~dispose~~aggregate offor ~~assets;~~all ~~make~~losses ~~Restricted~~in ~~Junior~~any ~~Payments~~fiscal ~~including~~year, ~~share~~subject ~~repurchases~~to customary reinvestment rights, ~~dividends~~where applicable, and ~~repayment~~(v) ofbeginning ~~junior~~with ~~indebtedness;~~the ~~make~~fiscal ~~investments;~~year ~~dispose~~ending December 31, 2025, the lesser of ~~equity~~(a) ~~interests~~75% of ~~any~~the ~~Material~~Consolidated ~~Subsidiaries;~~Excess ~~engage~~Cash Flow (as defined in athe ~~line~~New Facility Credit Agreement) for the most recently ended fiscal year of ~~business~~the ~~substantially~~Borrower ~~different~~for ~~than~~which ~~existing~~financial ~~businesses~~statements have been delivered and ~~businesses~~(b) ~~reasonably~~such ~~related~~amount which, ~~complimentary~~immediately orafter ~~ancillary~~giving ~~thereto;~~effect ~~amend~~to ~~material~~such ~~debt~~repayment, ~~agreements~~would orresult ~~other~~in ~~material~~the ~~contracts;~~Borrower ~~engage~~and inits ~~certain~~subsidiaries ~~transactions~~having ~~with~~no ~~affiliates;~~less ~~enter~~than ~~into~~$30 ~~sale/leaseback~~million ~~transactions;~~of ~~grant~~cash, ~~negative~~shall ~~pledges~~be orapplied ~~agree~~first to ~~such~~the ~~other~~prepayment ~~restrictions~~of ~~relating~~the toSuper ~~subsidiary~~Senior ~~dividends~~Facility ~~and~~(defined ~~distributions;~~below) ~~make~~and, ~~changes~~second, to ~~our~~the ~~fiscal~~prepayment ~~year;~~of the New Facility. All mandatory and ~~engage~~voluntary inprepayments ~~mergers~~under the New Facility are allocated between the New Debt and ~~consolidations~~the Exit Fee on a pro rata basis.

~~The~~All ~~Amended~~amounts ~~Credit~~outstanding ~~Agreement~~under ~~contains~~the ~~certain~~New ~~events~~Facility ofwill ~~default~~become ~~including (i) failure to pay principal when~~ due ~~or interest or any other amount owing~~ on ~~any other obligation under~~ the ~~Amended~~earlier ~~Credit Agreement within five days~~ of ~~becoming due,~~ (iii) ~~material~~the ~~incorrectness~~maturity ofdate, ~~representations~~ and ~~warranties when made,~~ (~~iii~~ii) ~~breach~~the ofdate ~~certain~~on ~~other~~which ~~covenants, subject to cure periods described in~~ the ~~Amended~~loans ~~Credit~~are ~~Agreement,~~declared ~~(iv) failure~~ to ~~pay~~be ~~principal or interest on any other debt that equals or exceeds $5 million when~~ due, ~~(v)~~and ~~default~~owing onby ~~any~~the ~~other~~administrative ~~debt~~agent ~~that~~at ~~equals or exceeds $5 million that causes, or gives~~ the ~~holder~~request (or ~~holders~~with ~~of such debt~~ the ~~ability to cause, an acceleration of such debt, (vi~~consent) ~~occurrence~~ of athe ~~Change~~Required ofLenders ~~Control,~~ (~~vii)~~as ~~bankruptcy~~defined ~~and insolvency events, (viii) entry by a court of one or more judgments against us~~ in anthe ~~aggregate~~New ~~amount~~Facility incredit ~~excess~~agreement; ofother ~~$10~~capitalized ~~million~~terms, ~~that~~unless ~~remain~~defined ~~unbonded~~herein, ~~undischarged~~are ordefined ~~unstayed~~in ~~for a certain number of days after~~ the ~~entry~~New ~~thereof,~~Facility ~~(ix)~~credit ~~the occurrence of certain ERISA events, (x~~agreement) ~~the~~or ~~failure~~as ofotherwise ~~certain~~provided ~~Loan Documents to be~~ in ~~full force and effect and (xi) failure to comply in any material respects with~~ the ~~terms~~New ofFacility ~~the~~credit ~~Penny Warrants (as defined below) or the purchase~~ agreement ~~with~~upon ~~respect to~~ the ~~Penny~~occurrence ~~Warrants. If~~of 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~~New ~~under~~Debt bears interest at rates based upon, at our option, the ~~Amended~~Secured ~~Credit~~Overnight ~~Agreement~~Financing ~~received~~Rate ~~Penny~~(“SOFR”) ~~Warrants~~or tothe ~~purchase~~Base ~~shares~~Rate, ofas ~~Altisource~~defined ~~common~~in ~~stock~~the New Facility credit agreement. ~~The~~SOFR-based ~~number~~term ofloans ~~Warrant~~bear ~~Shares~~interest isat ~~subject~~a rate per annum equal to ~~reduction~~SOFR plus 6.50% (with a 3.50% SOFR floor) payable in cash. Base Rate-based onterm ~~the~~loans ~~amount~~bear ofinterest ~~Aggregate~~at ~~Paydowns~~a ~~(see~~rate ~~Note~~per 12annum ~~for~~equal ~~additional~~to ~~information)~~the Base Rate plus 5.50% payable in cash. The ~~fair~~interest ~~value~~rate ofon the ~~Penny~~SSTL ~~Warrants~~in on2024 ~~February~~was ~~14,~~SOFR ~~2023~~plus ~~was~~5.00% $8payable in cash plus 3.175% ~~million~~payable ~~and~~in ~~was~~kind. The ~~recorded~~interest rate as anof ~~increase~~December 31, in2025 ~~debt~~was ~~discount~~10. 60%.

InThe ~~connection~~payment ~~with~~of ~~Amendment~~all ~~No.~~amounts 2owing toby the ~~Credit~~Borrower ~~Agreement~~under inthe ~~2023,~~New ~~the~~Facility ~~Company~~credit ~~paid~~agreement ~~$4.9~~is ~~million~~guaranteed toby the ~~lenders~~Guarantors and tois ~~third~~secured ~~parties~~by a lien on ~~behalf~~substantially all of the ~~lenders. The~~assets ~~$4.9~~of ~~million~~the ~~payment~~Borrower, ~~was~~Altisource ~~recorded~~Portfolio asSolutions anS.A. ~~increase~~and inthe ~~debt~~other ~~issuance~~Guarantors, ~~and~~subject ~~amendment~~to ~~costs~~certain exceptions. InThe ~~connection~~liens ~~with~~securing ~~Amendment~~the ~~No.~~New 2Facility are junior to the ~~Credit~~liens ~~Agreement,~~securing the ~~Company~~Super ~~paid~~Senior ~~$3.4~~Facility ~~million~~(defined tobelow) ~~advisors~~pursuant to, and ~~recorded these payments~~ as ~~other~~set ~~expense~~forth in, ~~the~~an ~~consolidated~~intercreditor ~~statements of operations and comprehensive loss~~agreement.

~~Deer~~The ~~Park~~New ~~Road~~Facility ~~Management~~Credit ~~Company~~Agreement contains representations, Lwarranties, covenants, term and conditions customary for transactions of this type.P. This ~~(together~~include ~~with~~covenants ~~its~~limiting ~~affiliates~~Altisource, the Borrower and ~~managed~~its ~~funds~~subsidiaries, ~~“Deer~~subject ~~Park”),~~to acertain ~~related~~exceptions ~~party~~and baskets, ~~owns~~to ~~approximately~~(i) ~~16%~~incur ofindebtedness, ~~Altisource’s~~(ii) ~~common~~incur ~~stock~~liens ason ofits ~~December 31~~assets, ~~2024~~(iii) ~~and~~agree ~~2023,~~to ~~and~~additional ~~$42.1~~negative ~~million~~pledges, ~~and~~(iv) ~~$40.6~~make ~~million~~Restricted ofJunior ~~Altisource~~Payments ~~debt~~(as ~~under~~defined in the ~~Amended~~New Facility Credit Agreement), as(v) ofpay ~~December 31~~dividends or distribute assets, ~~2024~~(vi) ~~and~~make ~~2023~~investments, ~~respectively. An~~(vii) ~~employee~~enter into any transaction of ~~Deer~~merger ~~Park~~or isconsolidation, aliquidate, ~~member~~wind-up ofor ~~Altisource’s~~dissolve, ~~Board~~or convey any part of ~~Directors. In~~its ~~connection~~business, ~~with~~assets ~~the~~or ~~Amended~~property, ~~Credit~~or ~~Agreement~~acquire the business, ~~Deer~~property ~~Park~~or ~~received~~assets ~~292 thousand~~of ~~Penny~~another ~~Warrants~~person, in(viii) ~~2023. During~~dispose of the ~~year~~equity ~~ended~~interests ~~December 31~~of any Significant Subsidiaries, ~~2024~~(ix) enter into sale and ~~2023~~leaseback transactions, ~~Deer~~(x) ~~Park~~enter ~~received~~into ~~interest~~certain oftransactions ~~$4.3~~with ~~million~~shareholders and ~~$4.1 million~~affiliates, ~~respectively~~(xi) ~~from~~engage ~~the~~in ~~Altisource~~a ~~SSTL.~~line of business substantially different than existing business and businesses

As of December 31, 2024, debt issuance and amendment costs were $0.9 million, net of $8.5 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.72

On February 19, 2025, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.a r.l., entered into agreements with 100% of the lenders under the Company’s senior secured term loans (the “Lenders”). Under these agreements,

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Notes to Consolidated Financial Statements (Continued)

~~the~~reasonably ~~Lenders~~related, ~~exchanged~~complementary ~~the~~or ~~Company’s~~ancillary ~~senior~~thereto, ~~secured~~(xii) ~~term~~modify ~~loans~~the ~~with~~terms ~~an outstanding balance~~ of ~~$232.8~~certain ~~million~~indebtedness, ~~for~~(xiii) amodify ~~$160.0~~the ~~million~~terms ~~new~~of ~~first~~its ~~lien~~organizational ~~loan~~documents, (~~the “New Facility”~~xiv) ~~and~~change ~~58.2~~its ~~million~~fiscal ~~common~~year, ~~shares~~and ~~of Altisource~~ (~~the~~xv) ~~“Debt~~enter ~~Exchange~~into ~~Shares”). The~~any ~~New~~transactions ~~Facility~~undertaken isin ~~comprised~~connection ofwith a ~~$110.0~~Liability ~~million~~Management ~~interest-bearing~~Transaction ~~loan~~ (~~the~~as ~~“New~~defined ~~Debt”)~~in ~~and~~the aNew ~~$50.0~~Facility ~~million~~Credit ~~non-interest-bearing exit fee (the “Exit Fee”~~Agreement). ~~See~~ ~~Note 24, Subsequent Events.~~

~~Revolver~~The New Facility contains certain events of default including (i) failure to pay (x) principal when due or (y) interest or any other amount owing on any other obligation under the New Facility Credit Agreement within 5 days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described therein, (iv) failure to pay principal or interest on any other debt that equals or exceeds $10 million when due, (v) default on any other debt that equals or exceeds $10 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) bankruptcy and insolvency events with respect to Altisource Portfolio Solutions S.A., Borrower or any Material Subsidiary (as defined in the New Facility Credit Agreement), (vii) entry by a court of one or more judgments against Altisource, Borrower or any Material Subsidiary in an amount in excess of $15 million that remain undischarged, unvacated, unbonded or unstayed for a certain number of days after the entry thereof, (viii) the occurrence of certain ERISA events, (ix) occurrence of a Change in Control, (x) the failure of certain Loan Documents (as defined in the New Facility Credit Agreement) to be in full force and effect or Altisource or any Guarantor challenges the validity of any such Loan Document, (xi) the termination of certain material contracts and (xii) failure to comply in any material respects with the terms of the Shareholder Warrants or the Warrant Agreement. If any event of default occurs and is not cured within applicable grace periods set forth in the New Facility Credit Agreement or waived, all loans and other obligations could become due and immediately payable.

OnDeer ~~June~~Park 22Road Management Company, ~~2021~~LP (together with its affiliates and managed funds, “Deer Park”), a related party, owned approximately 13% and 16% of Altisource’s Scommon stock as of December 31, 2025 and 2024, respectively, and $19.à8 rmillion and $40.l6 million of Altisource debt as of December 31, 2025 and 2024, respectively. An employee of Deer Park is a ~~subsidiary~~member of Altisource’s Board of Directors. During the years ended December 31, 2025 and 2024, Deer Park received interest of $1.8 million and $4.1 million, respectively. On April 3, 2025, Altisource Portfolio Solutions S.A. issued Deer Park Stakeholder Warrants to purchase 1.9 million shares of Altisource common stock for $9.5998 per share, ~~entered~~which ~~into~~was aits ~~revolving~~pro-rata ~~credit~~share ~~facility~~of ~~with~~the ~~STS~~Stakeholder ~~Master~~Warrants ~~Fund~~issued to all holders of common stock, ~~Ltd.~~RSUs ~~(“STS”)~~and Penny Warrants (~~the~~as ~~“Revolver”~~defined in Note 12)~~. STS~~ isas anof ~~investment~~the ~~fund~~record ~~managed~~date byfor ~~Deer~~the ~~Park~~issuance of Stakeholder Warrants.

~~The~~During ~~Revolver~~the ~~was~~first ~~amended~~quarter ~~effective~~of ~~February 14~~2025, ~~2023~~UBS ~~(the~~Asset ~~“Amended~~Management ~~Revolver”~~(Americas)~~. Under~~ ~~the~~LLC ~~terms~~(together ofwith ~~the~~its ~~Amended~~affiliates ~~Revolver~~and managed funds, ~~STS~~“UBS”) ~~will~~and ~~make~~Benefit ~~loans~~Street toPartners ~~Altisource~~L.L.C. ~~from~~(together ~~time~~with toits ~~time~~affiliates and managed funds, in“Benefit ~~amounts~~Street”) ~~requested~~became byrelated ~~Altisource~~parties ~~and~~of Altisource. As ~~may~~of ~~voluntarily~~December 31, ~~prepay~~2025, ~~all~~UBS orowns ~~any~~approximately ~~portion~~22% of the ~~outstanding~~common ~~loans~~stock atand ~~any time~~$63. ~~The~~7 ~~Amended~~million ~~Revolver~~of ~~provides~~ Altisource debt. During the ~~ability~~year toended ~~borrow~~December 31, a2025, ~~maximum~~UBS ~~amount~~received interest of $155.05 million. ~~Amounts~~On ~~that~~April ~~are~~3, ~~repaid~~2025, ~~may~~Altisource bePortfolio reSolutions S.A. issued UBS Stakeholder Warrants to purchase 0.2 million shares of Altisource common stock for $9.5998 per share, which was its pro-~~borrowed~~rata inshare ~~accordance~~of ~~with~~the Stakeholder Warrants issued to all holders of common stock, RSUs and Penny Warrants as of the ~~limitations~~record ~~set~~date ~~forth~~for ~~below~~the issuance of Stakeholder Warrants.

~~The~~As ~~maturity~~of ~~date~~December 31, of2025, ~~the~~Benefit ~~Amended~~Street ~~Revolver~~owned ~~coincides~~approximately ~~with~~16% of the ~~maturity~~common ~~date~~stock ofand ~~the~~$30.8 ~~SSTL~~million ~~under~~of Altisource debt. During the ~~Amended~~year ~~Credit~~ended ~~Agreement~~December 31, as2025, itBenefit ~~may~~Street bereceived ~~extended~~interest of $2.2 million. ~~The~~On ~~outstanding~~April ~~balance~~3, on2025, Altisource Portfolio Solutions S.A. issued Benefit Street Stakeholder Warrants to purchase 2.2 million shares of Altisource common stock for $9.5998 per share, which was its pro-rata share of the ~~Amended~~Stakeholder ~~Revolver~~Warrants isissued ~~due~~to all holders of common stock, RSUs and ~~payable~~Penny onWarrants ~~such~~as ~~maturity~~of the record date for the issuance of Stakeholder Warrants.

~~Borrowings~~For ~~under~~additional ~~the~~information ~~Amended Revolver bear interest of 10.00% per annum in cash and 3.00% per annum PIK and are payable quarterly~~ on the ~~last~~Stakeholder ~~business day of each March~~Warrants, ~~June,~~see ~~September~~Note ~~and December~~12. ~~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~~As ~~obligations~~of ~~under~~December 31, ~~the~~2025, ~~Amended~~debt ~~Revolver~~issuance ~~are~~and ~~secured~~amendment bycosts awere ~~first-priority~~$0.9 ~~lien~~million, onnet ~~substantially~~of ~~all~~$9.1 million of ~~the~~accumulated ~~assets~~amortization. As of ~~the~~December 31, ~~Company~~2024, ~~which~~debt ~~lien~~issuance ~~will~~and beamendment ~~pari~~costs ~~passu~~were ~~with~~$0.9 ~~liens~~million, ~~securing~~net ~~the~~of ~~SSTL~~$8.5 ~~under~~million ~~the~~of ~~Amended~~accumulated ~~Credit Agreement~~amortization.

~~The~~Super ~~Amended~~Senior ~~Revolver~~Credit 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.Facility

~~The~~On ~~Amended~~February ~~Revolver~~19, contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Revolver within three business days of becoming due2025, ~~(ii)~~Altisource ~~failure~~Portfolio toSolutions ~~perform~~S.A. ~~or observe any material provisions of the Amended Revolver Documents to be performed or complied with~~ and ~~such failure continues for a period of 30 days after written notice is given by~~ the ~~Lender to the~~ Borrower, ~~(iii)~~also ~~material~~entered ~~incorrectness~~into ofa ~~representations and warranties when made, (iv) default on any other debt that equals or exceeds~~ $4012.05 million ~~that~~super ~~causes,~~senior orcredit ~~gives~~facility (the ~~holder~~“Super orSenior ~~holders~~Facility”) ofto ~~such~~fund ~~debt~~transaction ~~the~~costs ~~ability~~related to ~~cause,~~the anDebt ~~acceleration~~Exchange ofTransactions ~~such debt,~~ (vdefined above) ~~entry~~and byfor ageneral ~~court~~corporate ~~of one or more judgments against us in an aggregate amount in excess of $40~~purposes.0 The ~~million~~maturity ~~that~~date ~~remain unbonded, undischarged or unstayed for a certain number~~ of ~~days after~~ the ~~entry~~Super ~~thereof,~~Senior ~~(vi)~~Facility ~~occurrence~~is ofFebruary ~~a Change of Control~~19, ~~(vii) bankruptcy and insolvency events~~2029. IfThe ~~any~~original ~~event~~issue ofdiscount ~~default~~on ~~occurs and is not cured within applicable grace periods set forth in~~ the ~~Amended~~Super ~~Revolver~~Senior orFacility ~~waived,~~is ~~all loans and other obligations could become due and immediately payable and the facility could be terminated~~10.0%.

AsBeginning ofwith ~~December 31,~~the ~~2024~~fiscal ~~and~~year ~~2023,~~ending ~~there~~December ~~was~~31, no2025, ~~outstanding debt under~~ the ~~Amended~~lesser ~~Revolver. As~~ of ~~December 31,~~(a) ~~2024~~75% ~~debt~~of ~~issuance~~the ~~costs~~aggregate ~~were~~Consolidated ~~less~~Excess ~~than~~Cash ~~$0.1~~Flow ~~million,~~(as ~~net~~defined ofin ~~$0.5~~the ~~million~~Super ofSenior ~~accumulated~~Facility ~~amortization. As~~credit ofagreement ~~December 31,~~(the ~~2023~~“Super ~~debt~~Senior ~~issuance~~Credit ~~costs~~Agreement”)) ~~were~~for ~~$0.2~~the ~~million,~~most ~~net~~recently ofended ~~$0.4~~fiscal ~~million~~year of ~~accumulated~~the ~~amortization. Debt~~Company ~~issuance costs~~ for ~~the~~which ~~Amended~~financial ~~Revolver~~statements ~~and~~have ~~Revolver~~been ~~are~~delivered ~~included~~and in(b) ~~other~~such ~~assets~~amount inwhich, ~~the~~immediately ~~accompanying consolidated balance sheet.~~

~~On February 19, 2025, Altisource entered into an agreement to terminate the Amended Revolver. See Note 24, Subsequent Events.~~73

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

after giving effect to such repayment, would result in the Company having no less than $30 million of total cash on its balance sheet, shall be applied first to the prepayment of the Super Senior Facility and, second, to the prepayment of the New Facility.

The payment of all amounts owing by the Borrower under the Super Senior Credit Agreement is guaranteed by the Guarantors and is secured by a lien on substantially all of the assets of Altisource Portfolio Solutions S.A. and the Guarantors, subject to certain exceptions. The liens securing the Super Senior Facility are senior to the liens securing the New Facility pursuant to, and as set forth in, the Super Senior Intercreditor Agreement.

The Super Senior Credit Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type. These include covenants limiting Altisource Portfolio Solutions S.A., the Borrower and their subsidiaries, subject to certain exceptions and baskets, to (i) incur indebtedness, (ii) incur liens on its assets, (iii) agree to additional negative pledges, (iv) make Restricted Junior Payments (as defined in the Super Senior Credit Agreement), (v) pay dividends or distribute assets, (vi) make investments, (vii) enter into any transaction of merger or consolidation, liquidate, wind-up or dissolve, or convey any part of its business, assets or property, or acquire the business, property or assets of another person, (viii) dispose of the equity interests of any Significant Subsidiaries, (ix) enter into sale and leaseback transactions, (x) enter into certain transactions with shareholders and affiliates, (xi) engage in a line of business substantially different than existing business and businesses reasonably related, complementary or ancillary thereto, (xii) modify the terms of certain indebtedness, (xiii) modify the terms of its organizational documents, (xiv) change its fiscal year, and (xv) enter into any transactions undertaken in connection with a Liability Management Transaction (as defined in the Super Senior Credit Agreement). The Super Senior Credit Agreement also requires that the Borrower maintain minimum daily liquidity of not less than the lesser of (a) $12.5 million and (b) the aggregate principal amount of Term Loans (as defined in the Super Senior Credit Agreement) under the Super Senior Facility outstanding on such date.

The Super Senior Credit Agreement requires mandatory prepayments of the term loans, subject to customary exceptions, as follows: (i) 100% of the proceeds of any other debt not permitted by the Super Senior Credit Agreement, (ii) 95% of the proceeds from the exercise of the Cash Exercise Stakeholder Warrants, (iii) 100% of the proceeds of Asset Sales (as defined in the Super Senior Credit Agreement), subject to customary reinvestment rights for net proceeds of less than $3 million and certain exceptions, where applicable, (iv) 100% of insurance or condemnation proceeds in excess of $10,000,000 in the aggregate for all losses in any fiscal year, subject to customary reinvestment rights, where applicable, and (v) beginning with the fiscal year ending December 31, 2025, the lesser of (a) 75% of the aggregate Consolidated Excess Cash Flow for the most recently ended fiscal year of the Borrower for which financial statements have been delivered and (b) such amount which, immediately after giving effect to such repayment, would result in the Borrower and its subsidiaries having no less than $30 million of cash.

All amounts outstanding under the Super Senior Credit Agreement 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 Super Senior Credit Agreement; other capitalized terms, unless defined herein, are defined in the Super Senior Credit Agreement) or as otherwise provided in the Super Senior Credit Agreement upon the occurrence of any event of default.

The Super Senior Facility bears interest at rates based upon, at our option, the SOFR or the Base Rate, as defined in the Super Senior Credit Agreement. SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 6.50% (with a 3.50% SOFR floor) payable in cash. Base Rate-based term loans bear interest at a rate per annum equal to the Base Rate plus 5.50% payable in cash. The interest rate as of December 31, 2025 was 10.60%.

The Super Senior Credit Agreement contains certain events of default, including (i) failure to pay (x) principal when due or (y) interest or any other amount owing on any other obligation under the Credit Agreement within 5 days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described therein, (iv) failure to pay principal or interest on any other debt that equals or exceeds $10 million when due, (v) default on any other debt that equals or exceeds $10 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) bankruptcy and insolvency events with respect to Altisource Portfolio Solutions S.A., Borrower or any Material Subsidiary (as defined in the Super Senior Credit Agreement), (vii) entry by a court of one or more judgments against Altisource Portfolio Solutions S.A., Borrower or any Material Subsidiary in an amount in excess of $15 million that remain undischarged, unvacated, unbonded or unstayed for a certain number of days.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

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.

On February 19, 2025, Altisource entered into an agreement to terminate the $15.0 million Revolver with STS. As of December 31, 2024, the Company did not have any borrowings outstanding under the Revolver.

NOTE 12 — WARRANTS

~~On February 14, 2023, the lenders under the Amended Credit Agreement (see Note 11 for additional information) received warrants (the “~~Penny Warrants”) to purchase 3,223,851 shares of Altisource common stock (the “Penny Warrant Shares”) at an exercise price of $0.01 per share. The number of Penny 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.

On February 14, 2023, the lenders under the Amended Credit Agreement (see Note 11 for additional information) received warrants (the “Penny Warrants”) to purchase 402,981 shares of Altisource common stock (the “Penny Warrant Shares”). The number of Penny Warrant Shares was subject to reduction based on the amount of Aggregate Paydowns (as defined in the Amended Credit Agreement). Based on Aggregate Paydowns made during 2023, the number of Penny Warrant Shares was reduced to 201,588.

The following table summarizes the activity related to our Penny Warrant Shares:

			Penny Warrant Shares
Outstanding as of December 31, 2023			1201,~~612,705~~588
Exercised			(9612,~~841~~105)
Outstanding as of December 31, 2024			1189,~~515,864~~483
Exercised			(189,483)
Outstanding as of December 31, 2025			—

The ~~Penny~~exercise ~~Warrants~~price ~~may~~per beshare ~~exercised~~of atcommon ~~any~~stock ~~time~~under oneach ~~and after February 14, 2024 and prior to their expiration date. The~~ Penny ~~Warrants~~Warrant ~~are~~was ~~exercisable~~equal ~~on a cashless basis and are subject~~ to ~~customary anti-dilution provisions~~$0.01. ~~The~~As ~~Penny~~of ~~Warrants~~December 31, ~~if not previously exercised or terminated~~2025, ~~will~~no ~~be automatically exercised on May 22, 2027. The~~ Penny ~~Warrants~~Warrant ~~were~~Shares ~~subject~~remain ~~to a lock-up agreement, subject to customary exceptions, which expired on February 16, 2024~~outstanding.

~~The~~Stakeholder ~~Penny~~ 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 Penny Warrants were not considered to be indexed to the Company’s stock because the number of Penny Warrant Shares varied based on Aggregate Paydowns. Pursuant to ASC 815-40, Derivatives and Hedging–Contracts in Entity’s Own Equity, the outstanding Penny 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 Penny Warrant Shares was no longer variable. As a result, the Penny Warrants were considered to be indexed to the Company’s stock and the warrant liability was reclassified to equity.

~~The~~On ~~fair~~April ~~value~~3, of2025, the ~~warrant~~Company ~~liability~~issued ~~was~~70.5 ~~based~~million onwarrants ~~the~~to ~~number~~purchase approximately 14.3 million shares of ~~Penny~~Altisource ~~Warrant~~common ~~Shares~~stock ~~that~~for ~~were~~$9.5998 ~~expected~~per toshare be(the ~~exercisable~~“Stakeholder onWarrants”). The ~~and~~distribution ~~after~~of ~~February~~Stakeholder 14Warrants was contingent upon, ~~2024~~among other things, approval of the issuance by the Company’s shareholders and the ~~Altisource~~consummation ~~share~~of ~~price~~the ~~less~~Debt $0Exchange Transaction (such conditions, collectively, the “Distribution Conditions”).01 The atDistribution Conditions were satisfied during the ~~measurement~~quarter ~~date~~ended March 31, 2025.

~~The~~Fifty ~~fair~~percent ~~value~~of the Stakeholder Warrants will expire on April 2, 2029 and require settlement through the cash payment to the Company of the ~~warrant~~exercise ~~liability~~price atof ~~each~~such Stakeholder Warrant (“Cash Exercise Stakeholder Warrants”). Fifty percent of the ~~respective~~Stakeholder ~~valuation~~Warrants ~~dates~~will expire on April 30, 2032 and require settlement through the forfeiture of shares of common stock to the Company equal to the exercise price of such Stakeholder Warrants (“Net Settle Stakeholder Warrants”). Each Stakeholder Warrant is ~~summarized~~exercisable ~~below:~~for 0.20313 shares of our common stock, subject to adjustment in accordance with the terms of the Stakeholder Warrants. The Stakeholder Warrants became exercisable pursuant to their term on July 28, 2025.

Penny Warrant Liability	Penny Warrant Shares based on Aggregate Paydowns	Expected Penny Warrant Shares that will be exercisable on February 14, 2024	Fair Value per Penny Warrant Share	Fair Value (in thousands)
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				(1,145)
Fair value at September 18, 2023	1,612,705	1,612,705	$4.31	$	6,951

The Stakeholder Warrants are listed on the NASDAQ Global Select Market and began trading on May 7, 2025. The Cash Exercise Stakeholder Warrants trade under the symbol “ASPSZ” and the Net Settle Stakeholder Warrants trade under the symbol “ASPSW”.

~~During~~For purposes of recording the ~~year~~issuance of the Stakeholder Warrants during the three months ended ~~December~~ March 31, ~~2023~~2025, the ~~Company~~fair ~~recorded~~values aof ~~gain~~the onCash ~~changes~~Exercise inStakeholder ~~fair~~Warrants ~~value~~and ofthe ~~warrant~~Net ~~liability~~Settle ofStakeholder $1Warrants were determined using the Black-Scholes option pricing model.~~1 million~~ The ~~(no~~following ~~comparative~~table ~~amount~~summarizes ~~for~~the fair value of the ~~year~~Stakeholder ~~ended~~Warrants ~~December 31,~~and ~~2024).~~the assumptions used to determine the fair value:

~~On February 19, 2025, all outstanding Penny Warrants were exercised. See Note 24, Subsequent Events.~~75

On February 18, 2025, the Company’s shareholders also approved proposals to enable, among other things, an issuance of warrants to purchase approximately 114.5 million shares of common stock for $1.20 per share to record and beneficial holders of the following securities of Altisource Portfolio Solutions S.A. (collectively, “Stakeholders”): (i) shares of common stock, (ii) restricted share units (“RSUs”), and (iii) Penny Warrants, in each case, as of 5:00 p.m., New York City time, on February 14, 2025. See Note 24, Subsequent Events.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)


	Cash Exercise Stakeholder Warrants		Net Settle Stakeholder Warrants

Risk-free interest rate (%)	4.29	%	4.42	%
Expected stock price volatility (%)	57.50	%	57.50	%
Expected dividend yield	0.00	%	0.00	%
Expected option life (in years)	4.12		7.19
Fair value per Stakeholder Warrant	$0.47		$0.68

The Stakeholder Warrants are indexed to the common stock and are classified as equity under ASC 815 Derivatives and Hedging, resulting in a $40.5 million increase in Additional paid-in capital. The distribution of the Stakeholder Warrants are non-reciprocal pro rata distributions and are accounted for as a dividend. Because the Company has negative retained earnings, the Company recorded the dividend as a $40.5 million reduction to Additional paid-in capital. Since the transaction is accounted for as both an increase and a decrease in Additional paid-in capital, the net result is zero and is not reflected in the Consolidated Statements of Equity (Deficit).

The following table summarizes outstanding Stakeholder Warrants and Stakeholder Warrant Shares issuable upon the exercise of outstanding Stakeholder Warrants following the distribution:


Cash Exercise Stakeholder Warrants	Cash Exercise Stakeholder Warrant Shares	Net Settle Stakeholder Warrants	Net Settle Stakeholder Warrant Shares	Total Stakeholder Warrants	Total Stakeholder Warrant Shares
35,230,503	7,156,372	35,230,503	7,156,372	70,461,006	14,312,744

The following table summarizes the activity related to Stakeholder Warrants:


	Cash Exercise Stakeholder Warrants	Net Settle Stakeholder Warrants

Outstanding at December 31, 2024	—	—
Granted	35,230,503	35,230,503
Exercised	16,551	61,123
Outstanding at December 31, 2025	35,213,952	35,169,380

NOTE 13 — OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consist of the following as of December 31:

(in thousands)

~~2024~~2025

~~2023~~2024

Income tax liabilities

193,~~068~~338

1719,~~506~~068

Operating lease liabilities

~~831~~248

~~1,950~~831

Deferred revenue

—47

9—

Other non-current liabilities

~~117~~64

45117

Total

203,~~016~~697

1920,~~510~~016

See Note 20 for a discussion of the reduction in income tax liabilities.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

NOTE 14 — 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 December 31, ~~2024~~2025 and ~~2023~~2024. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP:

	December 31, 2024								December 31, 2023
	December 31, 2025								December 31, 2024
(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	$	2926,~~811~~603	$	2926,~~811~~603	$	—	$	—	$	3229,~~522~~811	$	3229,~~522~~811	$	—	$	—
Restricted cash	23,~~889~~890		23,~~889~~890		—		—		2,~~894~~889		2,~~894~~889		—		—
Short-term receivable	—		—		—		—		3,201		—		—		3,201
Liabilities:
Revolving loan agreement	1,000		—		—		1,000		—		—		—		—
Senior secured term loans	159,175		—		113,810		—		232,800		—		128,040		—
Senior secured term loans	232,800		—		128,040		—		224,085		—		177,027		—
Super senior term loan	12,391		—		—		12,391		—		—		—		—
Revolving loan agreement	—		—		—		—		1,000		—		—		1,000

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~~senior secured term loan is based on quoted ~~market~~mark 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.

Our Super Senior Facility and Revolving Loan Agreement ~~was~~were measured using Level 3 inputs based on the present value of the future payments. As quoted market ~~price~~prices isare not available and there is no trading, we believe that the contractual interest ~~rate~~rates ~~represents~~represent the market rate at the measurement date and therefore the fair value equals the ~~Revolving Loan Agreement~~ book value.

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. Altisource received the indemnity escrow, net of $0.7 million of claims, in December 2024. 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 4442% of its revenue from Onity for the year ended December 31, ~~2024~~2025 (see Note 3 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.

71NOTE 15 — SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common stock

As of December 31, 2025, we had 250.0 million shares authorized, 11.0 million issued and 11.0 million shares of common stock outstanding. As of December 31, 2024, we had 100.0 million shares authorized, 3.7 million shares issued and 3.4 million shares of common stock outstanding. The holders of shares of Altisource common stock generally are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares generally possess all voting power.

On February 18, 2025, the Company’s shareholders approved an increase in the number of authorized shares from 100 million to 250 million, a decrease in the par value of the common stock from $1.00 to $0.01 and an increase in the number of shares of common stock reserved for issuance under the Equity Plan from approximately 1.5 million to approximately 2.0 million.

On February 19, 2025, the Company issued 7.3 million Debt Exchange Shares to lenders in connection with the Debt Exchange Transaction. See Note 10, Long-Term Debt. Pursuant to the terms of the Exchange Agreement, dated February 19, 2025, by and among the Borrower and Altisource Portfolio Solutions S.A., on the one hand, and the Lenders, on the other hand, with limited exceptions, the Lenders were not, among other things, permitted to sell, offer to sell, grant any option to purchase or otherwise dispose of any Debt Exchange Shares, without the prior written consent of Altisource Portfolio Solutions S.A., until September 17, 2025.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

NOTE 15 — SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common Stock

As of December 31, 2024, we had 100.0 million shares authorized, 30.0 million issued and 27.2 million shares of common stock outstanding. As of December 31, 2023, we had 100.0 million shares authorized, 30.0 million shares issued and 26.5 million shares of common stock outstanding. The holders of shares of Altisource common stock generally are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares generally will possess all voting power.

On February 18, 2025, the Company’s shareholders approved an increase in the number of authorized shares from 100.0 million to 250.0 million and a decrease in the par value of the Company’s common stock from $1.00 to $0.01. See Note 24, Subsequent Events.

On February 19, 2025, the Company issued 58.2 million shares of common stock to lenders under the SSTL. See Note 24, Subsequent Events.

Equity Incentive Plan

Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares, restricted stock units (“RSUs”) and other awards, or a combination of any of the above. Under the Plan, we may grant up to 112.70 million Altisource share-based awards to officers, directors, employees and to employees of our affiliates. As of December 31, ~~2024~~2025, 4.0.2 million share-based awards were available for future grant under the Plan. Expired and forfeited awards are available for reissuance.

On February 18, 2025, the Company’s shareholders approved an increase in the number of Altisource share-based awards that may be granted from 11.7 million to 16.3 million. See Note 24, Subsequent Events.

Share Repurchase Program

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by ~~the~~our shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 30.14 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 $18.00 per share and a maximum price of $25200.00 per share, ~~for~~until aMay ~~period~~16, ~~of five years from the date of approval~~2028. As of December 31, ~~2024~~2025, approximately 30.14 million shares of common stock remain available for repurchase under the program. In connection with the elimination of the fractional shares resulting from the Share Consolidation, the Company purchased 204 shares of common stock during the second quarter of the year ended December 31, 2025. There were no other purchases of shares of common stock during the years ended December 31, ~~2024~~2025 and ~~2023~~2024. Under the ~~Amended~~New ~~Credit~~Facility ~~Agreement~~and the Super Senior Facility, we are not permitted to repurchase shares except ~~for~~under 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 (RSUs) for certain employees, officers and directors. We recognized share-based compensation expense of $4.73 million and $54.17 million for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively. As of December 31, ~~2024~~2025, estimated unrecognized compensation costs related to share-based awards amounted to $13.21 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 01.9840 years.

72Stock Options

Stock option grants are composed of a combination of service-based, market-based and performance-based options.

Service-Based Options. These options generally vest over three or four years with equal annual vesting and generally expire on the earlier of ten years after the date of grant or following termination of service. A total of 4 thousand service-based options were outstanding as of December 31, 2025.

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 or four year installments with the first installment vesting upon the achievement of the criteria and the remaining installments vesting thereafter in equal annual installments. Market-based options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service or in the final three years of the option term, in which case vesting will generally continue in accordance with the provisions of the award agreement. A total of 3 thousand market-based options were outstanding as of December 31, 2025.

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 33 thousand performance-based options outstanding as of December 31, 2025.

There were no stock option grants during the years ended December 31, 2025 and 2024.

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ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements (Continued)

Stock Options

Stock option grants are composed of a combination of service-based, market-based and performance-based options.

Service-Based Options. These options generally vest over three or four years with equal annual vesting and generally expire on the earlier of ten years after the date of grant or following termination of service. A total of 165 thousand service-based options were outstanding as of December 31, 2024.

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 or four year installments with the first installment vesting upon the achievement of the criteria and the remaining installments vesting thereafter in equal annual installments. Market-based options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service or in the final three years of the option term, in which case vesting will generally continue in accordance with the provisions of the award agreement. A total of 54 thousand market-based options were outstanding as of December 31, 2024.

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 December 31, 2024.

There were no stock option grants during the years ended December 31, 2024 and 2023.

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 years ended December 31:

(in thousands, except per share data)	~~2024~~2025		~~2023~~2024
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	$	98112	$	98

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	$	—
Outstanding as of December 31, 2024	85,008	$	174.02	3.11	$	—
Granted	—	—
Forfeited	(5844,~~947~~689)	88153.10
Outstanding as of December 31, 2024	680,242	21.75		3.11	—
Outstanding as of December 31, 2025	40,319	191.34		2.29	—
Exercisable as of December 31, 2024	536,226	23.29		2.41	—
Exercisable as of December 31, 2025	36,175	195.15		2.33	—

73The following table summarizes information about stock options outstanding and exercisable as of December 31, 2025:

Table of Contents


	Options outstanding				Options exercisable
Exercise price range (1)	Number	Weighted average remaining contractual life (in years)	Weighted average exercise price		Number	Weighted average remaining contractual life (in years)	Weighted average exercise price

$50.01 — $100.00	2,919	6.42	$	94.85	2,452	6.35	$	94.86

$150.01 — $200.00	32,845	2.12	198.56		31,879	2.12	198.56
$200.01 — $250.00	1,434	1.41	220.66		93	0.38	217.04
$250.01 — $300.00	3,121	0.73	267.41		1,751	0.79	272.33

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