Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 20, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-34354 | |
Entity Registrant Name | ALTISOURCE PORTFOLIO SOLUTIONS S.A. | |
Entity Incorporation, State or Country Code | N4 | |
Entity Tax Identification Number | 98-0554932 | |
Entity Address, Address Line One | 33, Boulevard Prince Henri | |
Entity Address, Postal Zip Code | L-1724 | |
Entity Address, City or Town | Luxembourg | |
Entity Address, Country | LU | |
City Area Code | 352 | |
Local Phone Number | 2060 2055 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | ASPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,492,632 | |
Entity Central Index Key | 0001462418 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 36,640 | $ 51,025 |
Accounts receivable, net | 12,981 | 12,989 |
Prepaid expenses and other current assets | 11,217 | 23,544 |
Total current assets | 60,838 | 87,558 |
Premises and equipment, net | 2,168 | 4,222 |
Right-of-use assets under operating leases | 3,628 | 5,321 |
Goodwill | 55,960 | 55,960 |
Intangible assets, net | 27,818 | 31,730 |
Deferred tax assets, net | 4,982 | 5,048 |
Other assets | 7,242 | 5,429 |
Total assets | 162,636 | 195,268 |
Current liabilities: | ||
Accounts payable and accrued expenses | 31,032 | 33,507 |
Deferred revenue | $ 3,303 | $ 3,711 |
Other current liabilities | Other current liabilities | Other current liabilities |
Other current liabilities | $ 2,299 | $ 2,867 |
Total current liabilities | 36,634 | 40,085 |
Long-term debt | 211,980 | 245,493 |
Deferred tax liabilities, net | $ 8,724 | $ 9,028 |
Other non-current liabilities | Other non-current liabilities | Other non-current liabilities |
Other non-current liabilities | $ 18,232 | $ 19,536 |
Commitments, contingencies and regulatory matters (Note 21) | ||
Equity (deficit): | ||
Common stock ($1.00 par value; 100,000 shares authorized, 29,963 issued and 26,482 outstanding as of September 30, 2023; 16,129 outstanding as of December 31, 2022) | 29,963 | 25,413 |
Additional paid-in capital | 176,128 | 149,348 |
Retained earnings | (166,125) | 118,948 |
Treasury stock, at cost (3,481 shares as of September 30, 2023 and 9,284 shares as of December 31, 2022) | (153,561) | (413,358) |
Altisource deficit | (113,595) | (119,649) |
Non-controlling interests | 661 | 775 |
Total deficit | (112,934) | (118,874) |
Total liabilities and deficit | $ 162,636 | $ 195,268 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,379 | $ 4,363 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 29,963 | 29,963 |
Common stock, shares outstanding (in shares) | 26,482 | 16,129 |
Treasury shares (in shares) | 3,481 | 9,284 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 |
Cost of revenue | 29,024 | 34,387 | 89,684 | 104,611 |
Gross profit | 7,189 | 3,993 | 21,225 | 13,706 |
Selling, general and administrative expenses | 10,734 | 14,556 | 35,169 | 43,055 |
Loss from operations | (3,545) | (10,563) | (13,944) | (29,349) |
Other income (expense), net: | ||||
Interest expense | (9,890) | (4,349) | (26,554) | (11,439) |
Change in fair value of warrant liability | 2,225 | 0 | 1,145 | 0 |
Debt amendment costs | (59) | 0 | (3,402) | 0 |
Other income (expense), net | 407 | 459 | 2,357 | 1,392 |
Total other income (expense), net | (7,317) | (3,890) | (26,454) | (10,047) |
Loss before income taxes and non-controlling interests | (10,862) | (14,453) | (40,398) | (39,396) |
Income tax (provision) benefit | (418) | 197 | (2,586) | (2,210) |
Net loss | (11,280) | (14,256) | (42,984) | (41,606) |
Net income attributable to non-controlling interests | (62) | (133) | (155) | (468) |
Net loss attributable to Altisource | $ (11,342) | $ (14,389) | $ (43,139) | $ (42,074) |
Loss per share: | ||||
Basic (in usd per share) | $ (0.51) | $ (0.89) | $ (2.10) | $ (2.62) |
Diluted (in usd per share) | $ (0.51) | $ (0.89) | $ (2.10) | $ (2.62) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Diluted (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Comprehensive loss: | ||||
Comprehensive loss, net of tax | $ (11,280) | $ (14,256) | $ (42,984) | $ (41,606) |
Comprehensive income attributable to non-controlling interests | (62) | (133) | (155) | (468) |
Comprehensive loss attributable to Altisource | $ (11,342) | $ (14,389) | $ (43,139) | $ (42,074) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFECIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Treasury stock, at cost | Non-controlling interests |
Balance (in shares) at Dec. 31, 2021 | 25,413 | |||||
Balance at Dec. 31, 2021 | $ (68,870) | $ 25,413 | $ 144,298 | $ 186,592 | $ (426,445) | $ 1,272 |
Increase (Decrease) in Equity | ||||||
Net loss | (12,029) | (12,190) | 161 | |||
Distributions to non-controlling interest holders | (264) | (264) | ||||
Share-based compensation expense | 1,290 | 1,290 | ||||
Issuance of restricted share units and restricted shares | 0 | (6,560) | 6,560 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (1,014) | (4,046) | 3,032 | |||
Balance (in shares) at Mar. 31, 2022 | 25,413 | |||||
Balance at Mar. 31, 2022 | (80,887) | $ 25,413 | 145,588 | 163,796 | (416,853) | 1,169 |
Balance (in shares) at Dec. 31, 2021 | 25,413 | |||||
Balance at Dec. 31, 2021 | (68,870) | $ 25,413 | 144,298 | 186,592 | (426,445) | 1,272 |
Increase (Decrease) in Equity | ||||||
Net loss | (41,606) | |||||
Balance (in shares) at Sep. 30, 2022 | 25,413 | |||||
Balance at Sep. 30, 2022 | (108,520) | $ 25,413 | 148,197 | 131,124 | (414,102) | 848 |
Balance (in shares) at Mar. 31, 2022 | 25,413 | |||||
Balance at Mar. 31, 2022 | (80,887) | $ 25,413 | 145,588 | 163,796 | (416,853) | 1,169 |
Increase (Decrease) in Equity | ||||||
Net loss | (15,321) | (15,495) | 174 | |||
Distributions to non-controlling interest holders | (486) | (486) | ||||
Share-based compensation expense | 1,289 | 1,289 | ||||
Issuance of restricted share units and restricted shares | 0 | (2,384) | 2,384 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (9) | (38) | 29 | |||
Balance (in shares) at Jun. 30, 2022 | 25,413 | |||||
Balance at Jun. 30, 2022 | (95,414) | $ 25,413 | 146,877 | 145,879 | (414,440) | 857 |
Increase (Decrease) in Equity | ||||||
Net loss | (14,256) | (14,389) | 133 | |||
Share-based compensation expense | 1,320 | 1,320 | ||||
Distributions to non-controlling interest holders | (142) | (142) | ||||
Issuance of restricted share units and restricted shares | 0 | (260) | 260 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (28) | (106) | 78 | |||
Balance (in shares) at Sep. 30, 2022 | 25,413 | |||||
Balance at Sep. 30, 2022 | (108,520) | $ 25,413 | 148,197 | 131,124 | (414,102) | 848 |
Balance (in shares) at Dec. 31, 2022 | 25,413 | |||||
Balance at Dec. 31, 2022 | (118,874) | $ 25,413 | 149,348 | 118,948 | (413,358) | 775 |
Increase (Decrease) in Equity | ||||||
Net loss | (12,867) | (12,947) | 80 | |||
Distributions to non-controlling interest holders | (102) | (102) | ||||
Share-based compensation expense | 1,445 | 1,445 | ||||
Issuance of restricted share units and restricted shares | 0 | (6,058) | 6,058 | |||
Issuance of common stock, net of issuance costs (in shares) | 4,550 | |||||
Issuance of common stock, net of issuance costs | 20,461 | $ 4,550 | 15,911 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (460) | (3,700) | 3,240 | |||
Balance (in shares) at Mar. 31, 2023 | 29,963 | |||||
Balance at Mar. 31, 2023 | (110,397) | $ 29,963 | 166,704 | 96,243 | (404,060) | 753 |
Balance (in shares) at Dec. 31, 2022 | 25,413 | |||||
Balance at Dec. 31, 2022 | (118,874) | $ 25,413 | 149,348 | 118,948 | (413,358) | 775 |
Increase (Decrease) in Equity | ||||||
Net loss | (42,984) | |||||
Balance (in shares) at Sep. 30, 2023 | 29,963 | |||||
Balance at Sep. 30, 2023 | (112,934) | $ 29,963 | 176,128 | (166,125) | (153,561) | 661 |
Balance (in shares) at Mar. 31, 2023 | 29,963 | |||||
Balance at Mar. 31, 2023 | (110,397) | $ 29,963 | 166,704 | 96,243 | (404,060) | 753 |
Increase (Decrease) in Equity | ||||||
Net loss | (18,837) | (18,850) | 13 | |||
Distributions to non-controlling interest holders | (100) | (100) | ||||
Share-based compensation expense | 1,242 | 1,242 | ||||
Issuance of restricted share units and restricted shares | 0 | (2,259) | 2,259 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (3) | (30) | 27 | |||
Balance (in shares) at Jun. 30, 2023 | 29,963 | |||||
Balance at Jun. 30, 2023 | (128,095) | $ 29,963 | 167,946 | 75,104 | (401,774) | 666 |
Increase (Decrease) in Equity | ||||||
Net loss | (11,280) | (11,342) | 62 | |||
Distributions to non-controlling interest holders | (67) | (67) | ||||
Reclassification of warrant liability to equity | 6,951 | 6,951 | ||||
Share-based compensation expense | 1,231 | 1,231 | ||||
Sale of treasury stock, net of transaction costs | 18,374 | (228,269) | 246,643 | |||
Issuance of restricted share units and restricted shares | 0 | (1,153) | 1,153 | |||
Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances | (48) | (465) | 417 | |||
Balance (in shares) at Sep. 30, 2023 | 29,963 | |||||
Balance at Sep. 30, 2023 | $ (112,934) | $ 29,963 | $ 176,128 | $ (166,125) | $ (153,561) | $ 661 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||||
Net loss | $ (11,280) | $ (14,256) | $ (42,984) | $ (41,606) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 600 | 900 | 1,933 | 2,700 |
Amortization of right-of-use assets under operating leases | 400 | 500 | 1,351 | 2,254 |
Amortization of intangible assets | 1,352 | 1,281 | 3,912 | 3,849 |
PIK accrual | 4,777 | 0 | ||
Share-based compensation expense | 3,918 | 3,899 | ||
Bad debt expense | (203) | (22) | 319 | 578 |
Amortization of debt discount | 2,846 | 495 | ||
Amortization of debt issuance costs | 1,846 | 712 | ||
Deferred income taxes | (224) | (329) | ||
Loss on disposal of fixed assets | 121 | 1 | ||
Change in fair value of warrant liability | (2,225) | 0 | (1,145) | 0 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (311) | 3,095 | ||
Prepaid expenses and other current assets | 12,350 | 160 | ||
Other assets | (1,891) | 363 | ||
Accounts payable and accrued expenses | (2,475) | (5,014) | ||
Current and non-current operating lease liabilities | (1,351) | (2,444) | ||
Other current and non-current liabilities | (587) | (1,006) | ||
Net cash used in operating activities | (17,595) | (32,293) | ||
Cash flows from investing activities: | ||||
Additions to premises and equipment | 0 | (863) | ||
Proceeds from the sale of business | 0 | 346 | ||
Net cash used in investing activities | 0 | (517) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of common stock, net of issuance costs | 20,461 | 0 | ||
Proceeds from sale of treasury stock, net of transaction costs | 18,374 | 0 | ||
Debt issuance and amendment costs | (4,886) | 0 | ||
Repayments of long-term debt | (30,000) | 0 | ||
Distributions to non-controlling interests | (269) | (892) | ||
Payments of tax withholding on issuance of restricted share units and restricted shares | (511) | (1,051) | ||
Net cash provided by (used in) financing activities | 3,169 | (1,943) | ||
Net decrease in cash, cash equivalents and restricted cash | (14,426) | (34,753) | ||
Cash, cash equivalents and restricted cash at the beginning of the period | 54,273 | 102,149 | ||
Cash, cash equivalents and restricted cash at the end of the period | 39,847 | 67,396 | 39,847 | 67,396 |
Supplemental cash flow information: | ||||
Interest paid | 16,989 | 10,167 | ||
Income taxes (refunded) paid, net | (4,034) | 2,556 | ||
Acquisition of right-of-use assets with operating lease liabilities | 329 | 797 | ||
Reduction of right-of-use assets from operating lease modifications or reassessments | (671) | (172) | ||
Non-cash investing and financing activities: | ||||
Net decrease in payables for purchases of premises and equipment | 0 | (65) | ||
Warrants issued in connection with Amended Credit Agreement | 8,096 | 0 | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 36,640 | 63,812 | 36,640 | 63,812 |
Restricted cash | 3,207 | 3,584 | 3,207 | 3,584 |
Total cash, cash equivalents and restricted cash reported in the statements of cash flows | $ 39,847 | $ 67,396 | $ 39,847 | $ 67,396 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Description of Business Altisource Portfolio Solutions S.A., together with its subsidiaries (which may be referred to as “Altisource,” the “Company,” “we,” “us” or “our”), is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. We are publicly traded on the NASDAQ Global Select Market under the symbol “ASPS.” We are organized under the laws of the Grand Duchy of Luxembourg. We conduct our operations through two reportable segments: Servicer and Real Estate and Origination . In addition, we report Corporate and Others separately (see Note 22 for a description of our business segments). Basis of Accounting and Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option). The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity. MPA is the primary beneficiary of Lenders One as it has the power to direct the activities that most significantly impact the cooperative’s economic performance and the right to receive benefits from the cooperative. As a result, Lenders One is presented in the accompanying condensed consolidated financial statements on a consolidated basis and the interests of the members are reflected as non-controlling interests. As of September 30, 2023, Lenders One had total assets of $0.2 million and total liabilities of $0.4 million. As of December 31, 2022, Lenders One had total assets of $1.2 million and total liabilities of $1.1 million. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 30, 2023. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities 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. |
CUSTOMER CONCENTRATION
CUSTOMER CONCENTRATION | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER CONCENTRATION | CUSTOMER CONCENTRATION Ocwen Ocwen Financial Corporation (together with its subsidiaries, “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others. During the three and nine months ended September 30, 2023, Ocwen was our largest customer, accounting for 43% of our total revenue. Ocwen purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Ocwen Services Agreements”) with terms extending through August 2030. Certain of the Ocwen Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things. Revenue from Ocwen primarily consists of revenue earned from the loan portfolios serviced and subserviced by Ocwen when Ocwen engages us as the service provider, and revenue earned directly from Ocwen, pursuant to the Ocwen Services Agreements. For the nine months ended September 30, 2023 and 2022, we recognized revenue from Ocwen of $47.3 million and $47.2 million, respectively ($15.7 million and $17.2 million for the third quarter of 2023 and 2022, respectively). Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows: Three months ended September 30, Nine months ended 2023 2022 2023 2022 Servicer and Real Estate 55 % 56 % 54 % 52 % Origination — % — % — % — % Corporate and Others — % — % — % — % Consolidated revenue 43 % 45 % 43 % 40 % We earn additional revenue related to the portfolios serviced and subserviced by Ocwen when a party other than Ocwen or the MSRs owner selects Altisource as the service provider. For the nine months ended September 30, 2023 and 2022, we recognized revenue of $7.3 million ($2.3 million and $2.2 million for the third quarter of 2023 and 2022, respectively), of such revenue. These amounts are not included in deriving revenue from Ocwen and revenue from Ocwen as a percentage of revenue discussed above. As of September 30, 2023, accounts receivable from Ocwen totaled $4.0 million, $2.8 million of which was billed and $1.2 million of which was unbilled. As of December 31, 2022, accounts receivable from Ocwen totaled $4.0 million, $3.2 million of which was billed and $0.8 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”) (formerly New Residential Investment Corp.) is a real estate investment trust that invests in and manages investments primarily related to residential real estate, including MSRs and excess MSRs. Ocwen has disclosed that Rithm is a significant client of Ocwen’s. As of June 30, 2023, approximately 16% of loans serviced and subserviced by Ocwen (measured in unpaid principal balance (“UPB”)) and approximately 68% of all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”). Rithm purchases brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the subservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Brokerage Agreement”) with terms extending through August 2025. For the nine months ended September 30, 2023 and 2022, we recognized revenue from Rithm of $2.3 million and $2.6 million, respectively ($0.7 million and $0.8 million for the third quarter of 2023 and 2022, respectively), under the Brokerage Agreement. For the nine months ended September 30, 2023 and 2022, we recognized additional revenue of $10.1 million and $10.4 million, respectively ($3.2 million and $3.0 million for the third quarter of 2023 and 2022, respectively), relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | ACCOUNTS RECEIVABLE, NET Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 10,386 $ 11,993 Unbilled 5,974 5,359 16,360 17,352 Less: Allowance for credit losses (3,379) (4,363) Total $ 12,981 $ 12,989 Unbilled accounts receivable consist primarily of certain real estate asset management, REO sales, title and closing services for which we generally recognize revenue when the service is provided but collect upon closing of the sale, and foreclosure trustee services, for which we generally recognize revenues over the service delivery period but bill following completion of the service. We also include amounts in unbilled accounts receivable that are earned during a month and billed in the following month. We are exposed to credit losses through our sales of products and services to our customers which are recorded as accounts receivable, net on the Company’s condensed consolidated financial statements. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. Estimated credit losses are written off in the period in which the financial asset is determined to be no longer collectible. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to our allowance for credit losses. Changes in the allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: Three months ended September 30, 2023 $ 4,314 $ (203) $ 732 $ 3,379 Three months ended September 30, 2022 4,792 (22) 289 4,481 Nine months ended September 30, 2023 $ 4,363 $ 319 $ 1,303 $ 3,379 Nine months ended September 30, 2022 5,297 578 1,394 4,481 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, Prepaid expenses $ 2,746 $ 5,165 Income taxes receivable 510 7,031 Maintenance agreements, current portion 1,868 1,498 Indemnity escrow receivable from Pointillist sale 3,201 3,223 Restricted cash 23 — Surety bond collateral — 4,000 Other current assets 2,869 2,627 Total $ 11,217 $ 23,544 |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | PREMISES AND EQUIPMENT, NET Premises and equipment, net consists of the following: (in thousands) September 30, December 31, Computer hardware and software $ 46,568 $ 49,339 Leasehold improvements 1,011 5,794 Furniture and fixtures 102 3,832 Office equipment and other 24 346 47,705 59,311 Less: Accumulated depreciation and amortization (45,537) (55,089) Total $ 2,168 $ 4,222 Depreciation and amortization expense amounted to $1.9 million and $2.7 million for the nine months ended September 30, 2023 and 2022, respectively ($0.6 million and $0.9 million for the third quarter of 2023 and 2022, respectively), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive loss. Premises and equipment, net consist of the following, by country: (in thousands) September 30, December 31, Luxembourg $ 1,459 $ 2,455 India 602 1,129 United States 80 586 Uruguay 27 52 Total $ 2,168 $ 4,222 |
RIGHT-OF-USE ASSETS UNDER OPERA
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET | RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET Right-of-use assets under operating leases, net consists of the following: (in thousands) September 30, December 31, Right-of-use assets under operating leases $ 7,334 $ 11,808 Less: Accumulated amortization (3,706) (6,487) Total $ 3,628 $ 5,321 Amortization of operating leases was $1.4 million and $2.3 million for the nine months ended September 30, 2023 and 2022, respectively ($0.4 million and $0.5 million for the third quarter of 2023 and 2022, respectively), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive loss. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following is a summary of goodwill by segment: (in thousands) Servicer and Real Estate Origination Corporate and Others Total Balance as of September 30, 2023 and December 31, 2022 $ 30,681 $ 25,279 $ — $ 55,960 Intangible Assets, net Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) September 30, December 31, September 30, December 31, September 30, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 214,307 $ 214,307 $ (199,915) $ (197,594) $ 14,392 $ 16,713 Operating agreement 20 35,000 35,000 (23,917) (22,604) 11,083 12,396 Trademarks and trade names 16 9,709 9,709 (7,366) (7,088) 2,343 2,621 Total $ 259,016 $ 259,016 $ (231,198) $ (227,286) $ 27,818 $ 31,730 Amortization expense for definite lived intangible assets was $3.9 million and $3.8 million for the nine months ended September 30, 2023 and 2022, respectively ($1.4 million and $1.3 million for the third quarter of 2023 and 2022, respectively). |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following: (in thousands) September 30, December 31, Restricted cash $ 3,184 $ 3,248 Security deposits 597 596 Other 3,461 1,585 Total $ 7,242 $ 5,429 |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following: (in thousands) September 30, December 31, Accounts payable $ 16,404 $ 14,981 Accrued expenses - general 8,425 11,858 Accrued salaries and benefits 4,937 5,501 Income taxes payable 1,266 1,167 Total $ 31,032 $ 33,507 Other current liabilities consist of the following: (in thousands) September 30, December 31, Operating lease liabilities $ 1,596 $ 2,097 Other 703 770 Total $ 2,299 $ 2,867 |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
WARRANTS | WARRANTS On February 14, 2023, the lenders under the Amended Credit Agreement (see Note 11 for additional information) received warrants (the “Warrants”) to purchase 3,223,851 shares of Altisource common stock (the “Warrant Shares”). The number of Warrant Shares is subject to reduction based on the amount of par paydowns on the senior secured term loans (“SSTL”) in the aggregate using proceeds from issuances of equity interests or from junior indebtedness made prior to February 14, 2024 (“Aggregate Paydowns”) as set forth in the table below. Aggregate Paydowns Warrant Shares Less than $20 million 3,223,851 $20 million+ but less than below 2,578,743 $30 million+ 1,612,705 During the first quarter of 2023, Company made $20 million of Aggregate Paydowns. In the third quarter of 2023, the Company made an additional $10 million of Aggregate Paydowns. As a result, the number of Warrant Shares as of September 30, 2023 is 1,612,705. The exercise price per share of common stock under each Warrant is equal to $0.01. The Warrants may be exercised at any time on and after February 14, 2024 and prior to their expiration date. The Warrants are exercisable on a cashless basis and are subject to customary anti-dilution provisions. The Warrants, if not previously exercised or terminated, will be automatically exercised on May 22, 2027. The Warrants are subject to a lock-up agreement, subject to customary exceptions, ending on February 16, 2024. The Company determined that the Warrants are free standing financial instruments that are legally detachable and separately exercisable from the term loans under the Amended Credit Agreement. At inception, the Company also determined that the Warrants were not considered to be indexed to the Company’s stock because the number of Warrant Shares varies based on Aggregate Paydowns and as such were required to be classified as a liability pursuant to ASC 815-40, Derivatives and Hedging–Contracts in Entity’s Own Equity . The outstanding Warrants were recognized as a warrant liability on the balance sheet and were measured at their inception date fair value and subsequently re-measured at each reporting period with changes being recorded as a component of other income (expense) in the statement of operations. On September 18, 2023, the Company reached the $30 million in Aggregate Paydowns threshold and the number of Warrant Shares is no longer variable. As a result, the Warrants are considered to be indexed to the Company’s stock and the Warrant Liability was reclassified to equity. The fair value of the warrant liability was based on the number of Warrant Shares that were expected to be exercisable on and after February 14, 2024 and the Altisource share price less $0.01 at the measurement date. The fair value of the warrant liability at each of the respective valuation dates is summarized below: Warrant Liability Warrant Shares based on Aggregate Paydowns Expected Warrant Shares that will be exercisable on February 14, 2024 Fair Value per Warrant Share Fair Value Fair value at initial measurement date of February 14, 2023 3,223,851 1,612,705 $5.02 $ 8,096 Gain on change in fair value of warrant liability (694) Fair value at March 31, 2023 2,578,743 1,612,705 $4.59 7,402 Loss on change in fair value of warrant liability 1,774 Fair value at June 30, 2023 2,578,743 1,612,705 $5.69 $ 9,176 Gain on change in fair value of warrant liability (2,225) Fair value at September 18, 2023 1,612,705 1,612,705 $4.31 $ 6,951 During the nine months ended September 30, 2023, the Company recorded a gain on changes in fair value of warrant liability of $1.1 million ($2.2 million for the third quarter of 2023). During the three and nine months ended September 30, 2022, there were no warrant liabilities outstanding. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following: (in thousands) September 30, December 31, Senior Secured Term Loans $ 221,981 $ 247,204 Less: Debt issuance and amendment costs, net (3,918) (878) Less: Unamortized discount, net (6,083) (833) Net Senior secured term loans 211,980 245,493 Total Long-term debt $ 211,980 $ 245,493 Senior Secured Term Loans In April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.à r.l., entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders (the “Credit Agreement”). Under the Credit Agreement, Altisource borrowed $412 million in the form of SSTL. Effective February 14, 2023, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. entered into Amendment No. 2 to the Credit Agreement (as amended by Amendment No. 2, the “Amended Credit Agreement”). Altisource Portfolio Solutions S.A. and its subsidiaries, subject to the applicable exclusions in the Amended Credit Agreement, are guarantors on the SSTL (collectively, the “Guarantors”). Effective June 1, 2023, the administrative agent and collateral agent of the Amended Credit Agreement changed to Wilmington Trust, N.A. The maturity date of the SSTL under the Amended Credit Agreement is April 30, 2025. If Aggregate Paydowns are equal to or greater than $30 million, then the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026. Such extension is conditioned upon the Company’s payment of a 2% payment-in-kind extension fee on or before April 30, 2025 and subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date. During the nine months ended September 30, 2023, Company made $30 million of Aggregate Paydowns. All amounts outstanding under the SSTL will become due on the earlier of (i) the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Amended Credit Agreement; other capitalized terms, unless defined herein, are defined in the Amended Credit Agreement) or as otherwise provided in the Amended Credit Agreement upon the occurrence of any event of default. There are no mandatory repayments of the SSTL except as set forth herein until the April 30, 2025 maturity when the balance is due. In addition to the scheduled principal payments, subject to certain exceptions, the SSTL is subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as 50% of Consolidated Excess Cash Flow, as calculated in accordance with the provisions of the Amended Credit Agreement. Altisource may incur incremental indebtedness under the Amended Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $50 million, subject to certain conditions set forth in the Amended Credit Agreement. The lenders have no obligation to provide any incremental indebtedness. Through March 29, 2023, the SSTL’s interest rate was the Adjusted Eurodollar Rate plus 4.00%. Beginning March 30, 2023, the SSTL bears interest at rates based upon, at our option, the Secured Overnight Financing Rate (“SOFR”) or the Base Rate, as defined in the Amended Credit Agreement. If the Company selects SOFR, the term loans initially bear interest at a rate per annum equal to SOFR plus 5.00% payable in cash plus 5.00% payable in kind (“PIK”). If the Company selects Base Rate, the loans initially bear interest at a rate per annum equal to the Base Rate plus 4.00% payable in cash plus 5.00% PIK. Base Rate term loans bear interest at a rate per annum equal to the sum of (i) the greater of (x) the Base Rate and (y) 2.00% plus (ii) 4.00%. The PIK component of the interest rate is subject to adjustment based on the amount of Aggregate Paydowns as set forth in the table below. The PIK component of the interest rate was 3.75% for the three months ended September 30, 2023 and 4.50% for the three months ended June 30, 2023. The interest rate as of September 30, 2023 was 14.09%. Aggregate Paydowns PIK Component of Interest Rate Less than $20 million 5.00% $20 million+ but less than below 4.50% $30 million+ but less than below 3.75% $40 million+ but less than below 3.50% $45 million+ but less than below 3.00% $50 million+ but less than below 2.50% $55 million+ but less than below 2.00% $60 million+ but less than below 1.00% $65 million+ but less than below 0.50% $70 million+ 0.00% If, as of the end of any calendar quarter, (i) the amount of unencumbered cash and cash equivalents of Altisource S.à r.l. and its direct and indirect subsidiaries on a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast as of the end of the immediately subsequent calendar quarter to be, less than $35 million, then up to 2.00% in interest otherwise payable in cash in the following quarter may be paid in kind at the Company’s election. The payment of all amounts owing by Altisource under the Amended Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l. and the Guarantors, subject to certain exceptions. The Amended Credit Agreement includes covenants that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur indebtedness; incur liens on our assets; sell, transfer or dispose of assets; make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness; make investments; dispose of equity interests of any Material Subsidiaries; engage in a line of business substantially different than existing businesses and businesses reasonably related, complimentary or ancillary thereto; amend material debt agreements or other material contracts; engage in certain transactions with affiliates; enter into sale/leaseback transactions; grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions; make changes to our fiscal year; and engage in mergers and consolidations. The Amended Credit Agreement contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Credit Agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described in the Amended Credit Agreement, (iv) failure to pay principal or interest on any other debt that equals or exceeds $5.0 million when due, (v) default on any other debt that equals or exceeds $5.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events, (viii) entry by a court of one or more judgments against us in an aggregate amount in excess of $10.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events, (x) the failure of certain Loan Documents to be in full force and effect and (xi) failure to comply in any material respects with the terms of the Warrants or the Warrant Purchase Agreement. If any event of default occurs and is not cured within applicable grace periods set forth in the Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. The lenders under the Amended Credit Agreement received Warrants to purchase shares of Altisource common stock. The number of Warrant Shares is subject to reduction based on the amount of Aggregate Paydowns (see Note 10 for additional information). The fair value of the Warrants on February 14, 2023 was $8.1 million and was recorded as an increase in debt discount. In connection with Amendment No. 2, the Company paid $4.9 million to the lenders and to third parties on behalf of the lenders. The $4.9 million payment was recorded as an increase in debt issuance and amendment costs. In connection with Amendment No. 2, the Company paid $3.4 million to advisors and recorded these payments as other expense in the condensed consolidated statements of operations and comprehensive loss. Deer Park Road Management Company, LP (“Deer Park”), a related party, owns approximately 15% of Altisource’s common stock and $40.2 million of Altisource debt under the Amended Credit Agreement as of September 30, 2023. Deer Park’s Chief Investment Officer and managing partner was a member of Altisource’s Board of Directors until his resignation on March 1, 2022. The replacement director appointed by the Board of Directors is a current employee of Deer Park. In connection with the Amended Credit Agreement, Deer Park received 583 thousand Warrants. During the nine months ended September 30, 2023, Deer Park received interest of $2.0 million from the Altisource SSTL. As of September 30, 2023, debt issuance and amendment costs were $3.9 million, net of $5.5 million of accumulated amortization. As of December 31, 2022, debt issuance costs were $0.9 million, net of $3.6 million of accumulated amortization. Revolver On June 22, 2021 Altisource S.à r.l, a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with STS Master Fund, Ltd. (“STS”) (the “Revolver”). STS is an investment fund managed by Deer Park. The Revolver was amended effective February 14, 2023 (the “Amended Revolver”). Under the terms of the Amended Revolver, STS will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans at any time. The Amended Revolver provides Altisource the ability to borrow a maximum amount of $15.0 million. Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below. The maturity date of the Amended Revolver coincides with the maturity date of the SSTL under the Amended Credit Agreement, as it may be extended. The outstanding balance on the Amended Revolver is due and payable on such maturity date. Borrowings under the Amended Revolver bear interest of 10.00% per annum in cash and 3.00% per annum PIK and are payable quarterly on the last business day of each March, June, September and December. In connection with the Amended Revolver, Altisource is required to pay a usage fee equal to $0.75 million at the initial extension of credit pursuant to the Amended Revolver. Altisource’s obligations under the Amended Revolver are secured by a first-priority lien on substantially all of the assets of the Company, which lien will be pari passu with liens securing the SSTL under the Amended Credit Agreement. The Amended Revolver contains additional representations, warranties, covenants, terms and conditions customary for transactions of this type, that restrict or limit, among other things, our ability to use the proceeds of credit only for general corporate purposes. The Amended Revolver contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Revolver within three As of September 30, 2023 and December 31, 2022, there was no outstanding debt under the Amended Revolver and Revolver, respectively. As of September 30, 2023 and December 31, 2022, debt issuance costs were $0.2 million, net of $0.4 million of accumulated amortization, and $0.3 million, net of $0.3 million of accumulated amortization, respectively. Debt issuance costs for the Amended Revolver and Revolver are included in other assets in the accompanying consolidated balance sheet. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following: (in thousands) September 30, December 31, Income tax liabilities $ 16,036 $ 16,079 Operating lease liabilities 2,179 3,371 Deferred revenue 13 82 Other non-current liabilities 4 4 Total $ 18,232 $ 19,536 |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of September 30, 2023 and December 31, 2022. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: September 30, 2023 December 31, 2022 (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 $ 36,640 $ 36,640 $ — $ — $ 51,025 $ 51,025 $ — $ — Restricted cash 3,207 3,207 — — 3,248 3,248 — — Short-term receivable 3,201 — — 3,201 3,223 — — 3,223 Liabilities: Senior secured term loans 221,981 — 177,585 — 247,204 — 200,235 — Fair Value Measurements on a Recurring Basis Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid nature of these instruments and were measured using Level 1 inputs. The fair value of our SSTL is based on quoted market prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs. In connection with the sale of Pointillist on December 1, 2021, $3.5 million was deposited into an escrow account to satisfy certain indemnification claims that may arise on or prior to the first anniversary of the sale closing. The deposit was recorded as a short-term receivable. We measure short-term receivables without a stated interest rate based on the present value of the future payments. There were no transfers between different levels during the periods presented. Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. Our policy is to deposit our cash and cash equivalents with larger, highly rated financial institutions. The Company derived 43% of its revenue from Ocwen for the three and nine months ended September 30, 2023 (see Note 2 for additional information on Ocwen revenues and accounts receivable balance). The Company strives to mitigate its concentrations of credit risk with respect to accounts receivable by actively monitoring past due accounts and the economic status of larger customers, if known. |
SHAREHOLDERS_ EQUITY AND SHARE-
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION | SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION Share Repurchase Program On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by the shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 3.1 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $1.00 per share and a maximum price of $25.00 per share, for a period of five years from the date of approval. As of September 30, 2023, approximately 3.1 million shares of common stock remain available for repurchase under the program. There were no purchases of shares of common stock during the nine months ended September 30, 2023 and 2022. Luxembourg law limits share repurchases to the balance of Altisource Portfolio Solutions S.A. (unconsolidated parent company) retained earnings, less the value of shares repurchased. As of September 30, 2023, we can repurchase up to approximately $60 million of our common stock under Luxembourg law. Under the Amended Credit Agreement, we are not permitted to repurchase shares except for limited circumstances. Public offerings of Common Stock On February 14, 2023, Altisource closed on an underwritten public offering to sell 4,550,000 shares of its common stock, at a price of $5.00 per share, generating net proceeds of $20.5 million, after deducting the underwriting discounts and commissions and other offering expenses. On September 7, 2023, Altisource closed on an underwritten public offering to sell 5,590,277 shares of its common stock, at a price of $3.60 per share, generating net proceeds of $18.4 million, after deducting the underwriting discounts and commissions and other offering expenses. Share-Based Compensation We issue share-based awards in the form of stock options, restricted shares and restricted share units for certain employees, officers and directors. We recognized share-based compensation expense of $3.9 million and $3.9 million for the nine months ended September 30, 2023 and 2022, respectively ($1.2 million and $1.3 million for the third quarter of 2023 and 2022, respectively). As of September 30, 2023, estimated unrecognized compensation costs related to share-based awards amounted to $3.2 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 1.16 years. Stock Options Stock option grants are composed of a combination of service-based, market-based and performance-based options. Service-Based Options. These options generally vest over three Market-Based Options . These option grants generally have two components, each of which vests only upon the achievement of certain criteria. The first component, which we refer to as “ordinary performance” grants, generally consists of two-thirds of the market-based grant and begins to vest if the stock price is at least double the exercise price, as long as the stock price realizes a compounded annual gain of at least 20% over the exercise price. The remaining third of the market-based options, which we refer to as “extraordinary performance” grants, generally begins to vest if the stock price is at least triple the exercise price, as long as the stock price realizes a compounded annual gain of at least 25% over the exercise price. Market-based options vest in three Performance-Based Options. These option grants generally will vest if certain specific financial measures are achieved; typically with one-fourth vesting on each anniversary of the grant date. The award of performance-based options is adjusted based on the level of achievement specified in the award agreements. If the performance criteria achieved is above threshold performance levels, participants generally have the opportunity to vest in 50% to 200% of the option grants, depending upon performance achieved. If the performance criteria achieved is below a certain threshold, the options are canceled. The options generally expire on the earlier of ten years after the date of grant or following termination of service, unless the performance criteria is met prior to termination of service in which case vesting will generally continue in accordance with the provisions of the award agreement. There were 461 thousand performance-based options outstanding as of September 30, 2023. There were no stock option grants during the nine months ended September 30, 2023. The Company granted 105 thousand stock options (at a weighted average exercise price of $11.86 per share) for the nine months ended September 30, 2022. The fair values of the performance-based options are determined using the Black-Scholes option pricing model. The following assumptions were used to determine the fair values as of the grant date: Nine months ended September 30, 2022 Black-Scholes Risk-free interest rate (%) 1.62 Expected stock price volatility (%) 67.75 Expected dividend yield — Expected option life (in years) 6 Fair value $ 7.27 We determined the expected option life of all service-based stock option grants using the simplified method, determined based on the graded vesting term plus the contractual term of the options, divided by two. We use the simplified method because we believe that our historical data does not provide a reasonable basis upon which to estimate expected option life. The following table summarizes the grant date fair value of stock options that vested during the periods presented: Nine months ended September 30, (in thousands, except per share data) 2023 2022 Weighted average grant date fair value of stock options granted per share $ — $ 8.19 Intrinsic value of options exercised — — Grant date fair value of stock options that vested 83 1,031 The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2022 745,277 $ 27.03 4.83 $ — Granted — — Forfeited (6,088) 25.26 Outstanding as of September 30, 2023 739,189 27.04 4.09 — Exercisable as of September 30, 2023 543,701 25.27 3.50 — Other Share-Based Awards The Company’s other share-based and similar types of awards are comprised of restricted shares and restricted share units. The restricted shares and restricted share units are comprised of a combination of service-based awards, performance-based awards, market-based awards and performance and market-based awards. Service-Based Awards. These awards generally vest over one Performance-Based Awards. These awards generally vest if certain specific financial measures are achieved; generally one-third vests on each anniversary of the grant date or cliff-vest on the third anniversary of the grant date. The number of performance-based restricted shares and restricted share units that may vest is based on the level of achievement as specified in the award agreements. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 150% of the restricted share unit award for certain awards. If the performance criteria achieved is below certain thresholds, the award is canceled. A total of 141 thousand performance-based awards were outstanding as of September 30, 2023. Market-Based Awards. 50% of these awards generally vest if certain specific market conditions are achieved over a 30-day period and the remaining 50% of these awards generally vest on the one year anniversary of the initial vesting. The Company estimates the grant date fair value of these awards using a lattice (binomial) model. A total of 112 thousand market-based awards were outstanding as of September 30, 2023. Performance-Based and Market-Based Awards. These awards generally vest if certain specific financial measures are achieved and if certain specific market conditions are achieved. If the performance criteria achieved is above certain financial performance levels and Altisource’s share performance is above certain established criteria, participants have the opportunity to vest in up to 300% of the restricted share unit award for certain awards. If the performance criteria or the market criteria is below certain thresholds, the award is canceled. The Company estimates the grant date fair value of these awards using a Monte Carlo simulation model. A total of 125 thousand performance-based and market-based awards were outstanding as of September 30, 2023. The Company granted 891 thousand restricted share units (at a weighted average grant date fair value of $4.82 per share) during the nine months ended September 30, 2023. These grants include 57 thousand awards that include both a performance condition and a market condition and 57 thousand performance-based awards, for the nine months ended September 30, 2023. The Company granted 46 thousand awards that include both a performance condition and a market condition and 46 thousand performance-based awards, for the nine months ended September 30, 2022. The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2022 755,006 Granted 890,810 Issued (213,576) Forfeited/canceled (147,241) Outstanding as of September 30, 2023 1,284,999 |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1). Our services are provided to customers located in the United States. The components of revenue were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Service revenue $ 34,112 $ 36,290 $ 104,356 $ 111,691 Reimbursable expenses 2,039 1,957 6,398 6,158 Non-controlling interests 62 133 155 468 Total $ 36,213 $ 38,380 $ 110,909 $ 118,317 Disaggregation of Revenue Disaggregation of total revenues by segment and major source was as follows: Three months ended September 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 24,223 $ 2,677 $ 1,802 $ 28,702 Origination 7,264 10 237 7,511 Total revenue $ 31,487 $ 2,687 $ 2,039 $ 36,213 Three months ended September 30, 2022 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 26,387 $ 2,633 $ 1,846 $ 30,866 Origination 7,392 11 111 7,514 Total revenue $ 33,779 $ 2,644 $ 1,957 $ 38,380 Nine months ended September 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 73,314 $ 8,265 $ 5,916 $ 87,495 Origination 22,908 24 482 23,414 Total revenue $ 96,222 $ 8,289 $ 6,398 $ 110,909 Nine months ended September 30, 2022 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 77,947 $ 7,654 $ 5,748 $ 91,349 Origination 26,533 25 410 26,968 Total revenue $ 104,480 $ 7,679 $ 6,158 $ 118,317 Transactions with Related Parties In May 2022, John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), joined the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company. The Company recognized $0.1 million and $0.1 million for the nine months ended September 30, 2023 and 2022, respectively (less than $0.1 million and less than $0.1 million for the third quarter of 2023 and 2022, respectively) of service revenue relating to services provided to Aldridge Pite. Contract Balances Our contract assets consist of unbilled accounts receivable (see Note 3). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying condensed consolidated balance sheets. Revenue recognized that was included in the contract liability at the beginning of the period was $3.3 million and $3.7 million for the nine months ended September 30, 2023 and 2022, respectively ($0.5 million and $0.8 million for the third quarter of 2023 and 2022, respectively). |
COST OF REVENUE
COST OF REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Cost of Revenue [Abstract] | |
COST OF REVENUE | COST OF REVENUE Cost of revenue principally includes payroll and employee benefits associated with personnel employed in customer service, operations and technology roles, fees paid to external providers related to the provision of services, reimbursable expenses, technology and telecommunications costs as well as depreciation and amortization of operating assets. The components of cost of revenue were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Outside fees and services $ 13,659 $ 15,319 $ 42,810 $ 42,573 Compensation and benefits 9,090 11,885 28,072 39,231 Technology and telecommunications 3,786 4,656 11,048 14,844 Reimbursable expenses 2,039 1,957 6,398 6,158 Depreciation and amortization 450 570 1,356 1,805 Total $ 29,024 $ 34,387 $ 89,684 $ 104,611 Transactions with Related Parties The Company recognized $0.6 million and $0.3 million for the nine months ended September 30, 2023 and 2022, respectively ($0.2 million and $0.1 million for the third quarter of 2023 and 2022, respectively) of reimbursable expenses relating to services provided to Aldridge Pite. As of September 30, 2023, the Company had no payable to Aldridge Pite. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 9 Months Ended |
Sep. 30, 2023 | |
Selling, General and Administrative Expense [Abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses include payroll and employee benefits associated with personnel employed in executive, sales and marketing, finance, technology, law, compliance, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses. The components of selling, general and administrative expenses were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Compensation and benefits $ 4,906 $ 7,388 $ 16,312 $ 19,093 Professional services 1,897 2,584 5,743 8,432 Occupancy related costs 1,266 1,008 3,924 4,049 Amortization of intangible assets 1,352 1,281 3,912 3,849 Marketing costs 440 774 1,381 2,446 Depreciation and amortization 129 284 577 895 Other 744 1,237 3,320 4,291 Total $ 10,734 $ 14,556 $ 35,169 $ 43,055 |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET Other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Interest income (expense) $ 262 $ 212 $ 1,011 $ 318 Other, net 145 247 1,346 1,074 Total $ 407 $ 459 $ 2,357 $ 1,392 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESWe recognized an income tax (provision) benefit of $(2.6) million and $(2.2) million for the nine months ended September 30, 2023 and 2022, respectively ($(0.4) million and $0.2 million for the third quarter of 2023 and 2022, respectively). Income tax (provision) benefit for the three and nine months ended September 30, 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 |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. In accordance with ASC 260, penny warrants are included in the calculation of weighted average basic and diluted earnings (loss) per share for the period of time that they are classified as equity. For the three and nine months ended, September 30, 2023, 0.2 million and 0.1 million penny warrants have been included in the calculation of weighted average basic and diluted loss per share. Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below. Basic and diluted loss per share are calculated as follows: Three months ended Nine months ended (in thousands, except per share data) 2023 2022 2023 2022 Net loss attributable to Altisource $ (11,342) $ (14,389) $ (43,139) $ (42,074) Weighted average common shares outstanding, basic 22,181 16,087 20,538 16,051 Weighted average common shares outstanding, diluted 22,181 16,087 20,538 16,051 Loss per share: Basic $ (0.51) $ (0.89) $ (2.10) $ (2.62) Diluted $ (0.51) $ (0.89) $ (2.10) $ (2.62) For the nine months ended September 30, 2023 and 2022, 1.5 million and 1.3 million, respectively (1.5 million and 1.3 million for the third quarter of 2023 and 2022, respectively), stock options, restricted shares and restricted share units, were excluded from the computation of loss per share, as a result of the following: • For the nine months ended September 30, 2023 and 2022, 0.3 million and 0.2 million, respectively (0.4 million and 0.2 million for the third quarter of 2023 and 2022, respectively), stock options, restricted shares and restricted share units were anti-dilutive and have been excluded from the computation of diluted loss per share because the Company incurred a net loss • For the nine months ended September 30, 2023 and 2022, 0.3 million and 0.2 million, respectively (0.2 million and 0.2 million for the third quarter of 2023 and 2022, respectively), stock options were anti-dilutive and have been excluded from the computation of diluted loss per share because their exercise price was greater than the average market price of our common stock • For the nine months ended September 30, 2023 and 2022, 0.9 million and 0.9 million, respectively (0.9 million and 0.9 million for the third quarter of 2023 and 2022, respectively) , stock options, restricted shares and restricted share units, which begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and a total shareholder return compared to the market benchmark, that have not yet been met in each period have been excluded from the computation of diluted loss per share |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS | COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS We record a liability for contingencies if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range. Litigation We are currently involved in legal actions in the course of our business, some of which seek monetary damages. We do not believe that the outcome of these proceedings, both individually and in the aggregate, will have a material impact on our financial condition, results of operations or cash flows. Regulatory Matters Periodically, we are subject to audits, examinations and investigations by federal, state and local governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority. We are currently responding to such inquiries from governmental authorities relating to certain aspects of our business. We believe it is premature to predict the potential outcome or to estimate any potential financial impact in connection with these inquiries. Ocwen Related Matters As discussed in Note 2, during the three and nine months ended September 30, 2023, Ocwen was our largest customer, accounting for 43% of our total revenue. Additionally, 7% of our revenue for the nine months ended September 30, 2023 (6% of our revenue for the third quarter of 2023) was earned on the loan portfolios serviced by Ocwen, when a party other than Ocwen or the MSRs owner selected Altisource as the service provider. Ocwen 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 Ocwen for substantial monetary damages. Previous regulatory actions against Ocwen have subjected Ocwen 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 Ocwen. In addition to the above, Ocwen may become subject to future adverse regulatory or other actions. Ocwen has disclosed that Rithm is a significant client of Ocwen’s. As of June 30, 2023, approximately 16% of loans serviced and subserviced by Ocwen (measured in UPB) and approximately 68% of all delinquent loans that Ocwen services were related to Rithm MSRs or rights to MSRs. The existence or outcome of Ocwen regulatory matters or the termination of Ocwen’s sub-servicing agreements with Rithm or other significant Ocwen clients may have significant adverse effects on Ocwen’s business. For example, Ocwen may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-government-sponsored enterprise (“GSE”) servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Ocwen’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Ocwen as a customer or a reduction in the number and/or volume of services they purchase from us or the loss of other customers. If any of the following events occurred, Altisource’s revenue 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 Ocwen as a customer or there is a significant reduction in the volume of services they purchase from us • Ocwen loses, sells or transfers a significant portion 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 Ocwen and Rithm changes significantly, including Ocwen’s sub-servicing arrangement with Rithm expiring without renewal, and this change results in a change in our status as a provider of services related to the Subject MSRs • Ocwen loses state servicing licenses in states with a significant number of loans in Ocwen’s servicing portfolio • The contractual relationship between Ocwen and Altisource changes significantly or there are significant changes to our pricing to Ocwen for services from which we generate material revenue • Altisource otherwise fails to be retained as a service provider Management cannot predict whether any of these events will occur or the amount of any impact they may have on Altisource. Leases We lease certain premises and equipment, primarily consisting of office space and information technology equipment. Certain of our leases include options to renew at our discretion or terminate leases early, and these options are considered in our determination of the expected lease term. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We sublease certain office space to third parties. Sublease income was $0.1 million and $0.4 million for the nine months ended September 30, 2023 and 2022, respectively (less than $0.1 million and less than $0.1 million for the third quarter of 2023 and 2022, respectively). The amortization periods of right-of-use assets are generally limited by the expected lease term. Our leases generally have expected lease terms at adoption of one Information about our lease terms and our discount rate assumption were as follows for the nine months ended September 30: 2023 2022 Weighted average remaining lease term (in years) 2.51 3.15 Weighted average discount rate 5.93 % 5.66 % Our lease activity during the period was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Operating lease costs: Selling, general and administrative expense $ 553 $ 586 $ 1,638 $ 2,217 Cost of revenue — — — 265 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 507 $ 515 $ 1,638 $ 2,022 Short-term (twelve months or less) lease costs 789 402 1,638 827 Maturities of our lease liabilities as of September 30, 2023 are as follows: (in thousands) Operating lease obligations 2023 $ 559 2024 1,796 2025 1,322 2026 638 2027 — Total lease payments 4,315 Less: interest (540) Present value of lease liabilities $ 3,775 Escrow Balances We hold customers’ assets in escrow accounts at various financial institutions pending completion of certain real estate activities. These amounts are held in escrow accounts for limited periods of time and are not included in the accompanying condensed consolidated balance sheets. Amounts held in escrow accounts were $39.0 million and $13.2 million as of September 30, 2023 and December 31, 2022, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTINGOur business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our chief operating decision maker) to evaluate operating performance and to assess the allocation of our resources. We conduct our operations through two reportable segments: Servicer and Real Estate and Origination . In addition, we report Corporate and Others separately. The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Corporate and Others includes interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, as well as eliminations between reportable segments. Financial information for our segments is as follows: Three months ended September 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 28,702 $ 7,511 $ — $ 36,213 Cost of revenue 18,312 7,151 3,561 29,024 Gross profit (loss) 10,390 360 (3,561) 7,189 Selling, general and administrative expenses 1,966 1,797 6,971 10,734 Income (loss) from operations 8,424 (1,437) (10,532) (3,545) Total other income (expense), net — — (7,317) (7,317) Income (loss) before income taxes and non-controlling interests $ 8,424 $ (1,437) $ (17,849) $ (10,862) Three months ended September 30, 2022 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 30,866 $ 7,514 $ — $ 38,380 Cost of revenue 22,082 7,654 4,651 34,387 Gross profit (loss) 8,784 (140) (4,651) 3,993 Selling, general and administrative expenses 2,931 2,399 9,226 14,556 Income (loss) from operations 5,853 (2,539) (13,877) (10,563) Total other income (expense), net 4 — (3,894) (3,890) Income (loss) before income taxes and non-controlling interests $ 5,857 $ (2,539) $ (17,771) $ (14,453) Nine months ended September 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 87,495 $ 23,414 $ — $ 110,909 Cost of revenue 56,075 22,623 10,986 89,684 Gross profit (loss) 31,420 791 (10,986) 21,225 Selling, general and administrative expenses 6,905 5,873 22,391 35,169 Income (loss) from operations 24,515 (5,082) (33,377) (13,944) Total other income (expense), net — — (26,454) (26,454) Income (loss) before income taxes and non-controlling interests $ 24,515 $ (5,082) $ (59,831) $ (40,398) Nine months ended September 30, 2022 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 91,349 $ 26,968 $ — $ 118,317 Cost of revenue 64,235 26,206 14,170 104,611 Gross profit (loss) 27,114 762 (14,170) 13,706 Selling, general and administrative expenses 9,227 6,739 27,089 43,055 Income (loss) from operations 17,887 (5,977) (41,259) (29,349) Total other income (expense), net 4 — (10,051) (10,047) Income (loss) before income taxes and non-controlling interests $ 17,891 $ (5,977) $ (51,310) $ (39,396) (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Total assets: September 30, 2023 $ 57,143 $ 51,191 $ 54,302 $ 162,636 December 31, 2022 63,696 53,984 77,588 195,268 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting and Presentation | Basis of Accounting and Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the interim data includes all normal recurring adjustments considered necessary to fairly state the results for the interim periods presented. The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our interim condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Intercompany transactions and accounts have been eliminated in consolidation. Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. Altisource consolidates Best Partners Mortgage Cooperative, Inc., which is managed by The Mortgage Partnership of America, L.L.C. (“MPA”), a wholly-owned subsidiary of Altisource. Best Partners Mortgage Cooperative, Inc. is a mortgage cooperative doing business as Lenders One ® (“Lenders One”). MPA provides services to Lenders One under a management agreement that ends on December 31, 2025 (with renewals for three successive five-year periods at MPA’s option). |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets and liabilities Level 2 — Observable inputs other than quoted prices included in Level 1 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities Financial assets and financial liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
CUSTOMER CONCENTRATION (Tables)
CUSTOMER CONCENTRATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue from Major Customers by Reporting Segments | Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows: Three months ended September 30, Nine months ended 2023 2022 2023 2022 Servicer and Real Estate 55 % 56 % 54 % 52 % Origination — % — % — % — % Corporate and Others — % — % — % — % Consolidated revenue 43 % 45 % 43 % 40 % |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Change in Allowance for Doubtful Accounts and Expected Credit Losses | Accounts receivable, net consists of the following: (in thousands) September 30, December 31, Billed $ 10,386 $ 11,993 Unbilled 5,974 5,359 16,360 17,352 Less: Allowance for credit losses (3,379) (4,363) Total $ 12,981 $ 12,989 Changes in the allowance for expected credit losses consist of the following: Additions (in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1) Balance at End of Period Allowance for expected credit losses: Three months ended September 30, 2023 $ 4,314 $ (203) $ 732 $ 3,379 Three months ended September 30, 2022 4,792 (22) 289 4,481 Nine months ended September 30, 2023 $ 4,363 $ 319 $ 1,303 $ 3,379 Nine months ended September 30, 2022 5,297 578 1,394 4,481 ______________________________________ (1) Amounts written off as uncollectible or transferred to other accounts or utilized. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, Prepaid expenses $ 2,746 $ 5,165 Income taxes receivable 510 7,031 Maintenance agreements, current portion 1,868 1,498 Indemnity escrow receivable from Pointillist sale 3,201 3,223 Restricted cash 23 — Surety bond collateral — 4,000 Other current assets 2,869 2,627 Total $ 11,217 $ 23,544 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment, Net | Premises and equipment, net consists of the following: (in thousands) September 30, December 31, Computer hardware and software $ 46,568 $ 49,339 Leasehold improvements 1,011 5,794 Furniture and fixtures 102 3,832 Office equipment and other 24 346 47,705 59,311 Less: Accumulated depreciation and amortization (45,537) (55,089) Total $ 2,168 $ 4,222 |
Schedule of Premises and Equipment, Net by Country | Premises and equipment, net consist of the following, by country: (in thousands) September 30, December 31, Luxembourg $ 1,459 $ 2,455 India 602 1,129 United States 80 586 Uruguay 27 52 Total $ 2,168 $ 4,222 |
RIGHT-OF-USE ASSETS UNDER OPE_2
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Right-of-Use Assets Under Operating Leases | Right-of-use assets under operating leases, net consists of the following: (in thousands) September 30, December 31, Right-of-use assets under operating leases $ 7,334 $ 11,808 Less: Accumulated amortization (3,706) (6,487) Total $ 3,628 $ 5,321 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following is a summary of goodwill by segment: (in thousands) Servicer and Real Estate Origination Corporate and Others Total Balance as of September 30, 2023 and December 31, 2022 $ 30,681 $ 25,279 $ — $ 55,960 |
Schedule of Intangible Assets | Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) September 30, December 31, September 30, December 31, September 30, December 31, Definite lived intangible assets: Customer related intangible assets 9 $ 214,307 $ 214,307 $ (199,915) $ (197,594) $ 14,392 $ 16,713 Operating agreement 20 35,000 35,000 (23,917) (22,604) 11,083 12,396 Trademarks and trade names 16 9,709 9,709 (7,366) (7,088) 2,343 2,621 Total $ 259,016 $ 259,016 $ (231,198) $ (227,286) $ 27,818 $ 31,730 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: (in thousands) September 30, December 31, Restricted cash $ 3,184 $ 3,248 Security deposits 597 596 Other 3,461 1,585 Total $ 7,242 $ 5,429 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: (in thousands) September 30, December 31, Accounts payable $ 16,404 $ 14,981 Accrued expenses - general 8,425 11,858 Accrued salaries and benefits 4,937 5,501 Income taxes payable 1,266 1,167 Total $ 31,032 $ 33,507 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: (in thousands) September 30, December 31, Operating lease liabilities $ 1,596 $ 2,097 Other 703 770 Total $ 2,299 $ 2,867 |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The number of Warrant Shares is subject to reduction based on the amount of par paydowns on the senior secured term loans (“SSTL”) in the aggregate using proceeds from issuances of equity interests or from junior indebtedness made prior to February 14, 2024 (“Aggregate Paydowns”) as set forth in the table below. Aggregate Paydowns Warrant Shares Less than $20 million 3,223,851 $20 million+ but less than below 2,578,743 $30 million+ 1,612,705 |
Fair Value of Warrant Liability | The fair value of the warrant liability at each of the respective valuation dates is summarized below: Warrant Liability Warrant Shares based on Aggregate Paydowns Expected Warrant Shares that will be exercisable on February 14, 2024 Fair Value per Warrant Share Fair Value Fair value at initial measurement date of February 14, 2023 3,223,851 1,612,705 $5.02 $ 8,096 Gain on change in fair value of warrant liability (694) Fair value at March 31, 2023 2,578,743 1,612,705 $4.59 7,402 Loss on change in fair value of warrant liability 1,774 Fair value at June 30, 2023 2,578,743 1,612,705 $5.69 $ 9,176 Gain on change in fair value of warrant liability (2,225) Fair value at September 18, 2023 1,612,705 1,612,705 $4.31 $ 6,951 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: (in thousands) September 30, December 31, Senior Secured Term Loans $ 221,981 $ 247,204 Less: Debt issuance and amendment costs, net (3,918) (878) Less: Unamortized discount, net (6,083) (833) Net Senior secured term loans 211,980 245,493 Total Long-term debt $ 211,980 $ 245,493 |
Schedule of Debt | The PIK component of the interest rate is subject to adjustment based on the amount of Aggregate Paydowns as set forth in the table below. The PIK component of the interest rate was 3.75% for the three months ended September 30, 2023 and 4.50% for the three months ended June 30, 2023. The interest rate as of September 30, 2023 was 14.09%. Aggregate Paydowns PIK Component of Interest Rate Less than $20 million 5.00% $20 million+ but less than below 4.50% $30 million+ but less than below 3.75% $40 million+ but less than below 3.50% $45 million+ but less than below 3.00% $50 million+ but less than below 2.50% $55 million+ but less than below 2.00% $60 million+ but less than below 1.00% $65 million+ but less than below 0.50% $70 million+ 0.00% |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following: (in thousands) September 30, December 31, Income tax liabilities $ 16,036 $ 16,079 Operating lease liabilities 2,179 3,371 Deferred revenue 13 82 Other non-current liabilities 4 4 Total $ 18,232 $ 19,536 |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: September 30, 2023 December 31, 2022 (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 $ 36,640 $ 36,640 $ — $ — $ 51,025 $ 51,025 $ — $ — Restricted cash 3,207 3,207 — — 3,248 3,248 — — Short-term receivable 3,201 — — 3,201 3,223 — — 3,223 Liabilities: Senior secured term loans 221,981 — 177,585 — 247,204 — 200,235 — |
SHAREHOLDERS_ EQUITY AND SHAR_2
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Performance-Based Option Pricing Model | The following assumptions were used to determine the fair values as of the grant date: Nine months ended September 30, 2022 Black-Scholes Risk-free interest rate (%) 1.62 Expected stock price volatility (%) 67.75 Expected dividend yield — Expected option life (in years) 6 Fair value $ 7.27 |
Summary of the Weighted Average Fair Value of Stock Options Granted, the Total Intrinsic Value of Stock Options Exercised and the Fair Value of Options Vested | The following table summarizes the grant date fair value of stock options that vested during the periods presented: Nine months ended September 30, (in thousands, except per share data) 2023 2022 Weighted average grant date fair value of stock options granted per share $ — $ 8.19 Intrinsic value of options exercised — — Grant date fair value of stock options that vested 83 1,031 |
Summary of the Activity of the Entity's Stock Options | The following table summarizes the activity related to our stock options: Number of options Weighted average exercise price Weighted average contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2022 745,277 $ 27.03 4.83 $ — Granted — — Forfeited (6,088) 25.26 Outstanding as of September 30, 2023 739,189 27.04 4.09 — Exercisable as of September 30, 2023 543,701 25.27 3.50 — |
Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activity related to our restricted shares and restricted share units: Number of restricted shares and restricted share units Outstanding as of December 31, 2022 755,006 Granted 890,810 Issued (213,576) Forfeited/canceled (147,241) Outstanding as of September 30, 2023 1,284,999 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | The components of revenue were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Service revenue $ 34,112 $ 36,290 $ 104,356 $ 111,691 Reimbursable expenses 2,039 1,957 6,398 6,158 Non-controlling interests 62 133 155 468 Total $ 36,213 $ 38,380 $ 110,909 $ 118,317 |
Disaggregation of Revenue | Disaggregation of total revenues by segment and major source was as follows: Three months ended September 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 24,223 $ 2,677 $ 1,802 $ 28,702 Origination 7,264 10 237 7,511 Total revenue $ 31,487 $ 2,687 $ 2,039 $ 36,213 Three months ended September 30, 2022 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 26,387 $ 2,633 $ 1,846 $ 30,866 Origination 7,392 11 111 7,514 Total revenue $ 33,779 $ 2,644 $ 1,957 $ 38,380 Nine months ended September 30, 2023 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 73,314 $ 8,265 $ 5,916 $ 87,495 Origination 22,908 24 482 23,414 Total revenue $ 96,222 $ 8,289 $ 6,398 $ 110,909 Nine months ended September 30, 2022 (in thousands) Revenue recognized when services are performed or assets are sold Revenue related to technology platforms and professional services Reimbursable expenses revenue Total revenue Servicer and Real Estate $ 77,947 $ 7,654 $ 5,748 $ 91,349 Origination 26,533 25 410 26,968 Total revenue $ 104,480 $ 7,679 $ 6,158 $ 118,317 |
COST OF REVENUE (Tables)
COST OF REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cost of Revenue [Abstract] | |
Schedule of Components of Cost of Revenue | The components of cost of revenue were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Outside fees and services $ 13,659 $ 15,319 $ 42,810 $ 42,573 Compensation and benefits 9,090 11,885 28,072 39,231 Technology and telecommunications 3,786 4,656 11,048 14,844 Reimbursable expenses 2,039 1,957 6,398 6,158 Depreciation and amortization 450 570 1,356 1,805 Total $ 29,024 $ 34,387 $ 89,684 $ 104,611 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Selling, General and Administrative Expense [Abstract] | |
Schedule of the Components of Selling, General and Administrative Expenses | The components of selling, general and administrative expenses were as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Compensation and benefits $ 4,906 $ 7,388 $ 16,312 $ 19,093 Professional services 1,897 2,584 5,743 8,432 Occupancy related costs 1,266 1,008 3,924 4,049 Amortization of intangible assets 1,352 1,281 3,912 3,849 Marketing costs 440 774 1,381 2,446 Depreciation and amortization 129 284 577 895 Other 744 1,237 3,320 4,291 Total $ 10,734 $ 14,556 $ 35,169 $ 43,055 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Expense) Income, Net | Other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Interest income (expense) $ 262 $ 212 $ 1,011 $ 318 Other, net 145 247 1,346 1,074 Total $ 407 $ 459 $ 2,357 $ 1,392 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS Calculation | Basic and diluted loss per share are calculated as follows: Three months ended Nine months ended (in thousands, except per share data) 2023 2022 2023 2022 Net loss attributable to Altisource $ (11,342) $ (14,389) $ (43,139) $ (42,074) Weighted average common shares outstanding, basic 22,181 16,087 20,538 16,051 Weighted average common shares outstanding, diluted 22,181 16,087 20,538 16,051 Loss per share: Basic $ (0.51) $ (0.89) $ (2.10) $ (2.62) Diluted $ (0.51) $ (0.89) $ (2.10) $ (2.62) |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Term and Assumption | Information about our lease terms and our discount rate assumption were as follows for the nine months ended September 30: 2023 2022 Weighted average remaining lease term (in years) 2.51 3.15 Weighted average discount rate 5.93 % 5.66 % |
Lease Activity During Period | Our lease activity during the period was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Operating lease costs: Selling, general and administrative expense $ 553 $ 586 $ 1,638 $ 2,217 Cost of revenue — — — 265 Cash used in operating activities for amounts included in the measurement of lease liabilities $ 507 $ 515 $ 1,638 $ 2,022 Short-term (twelve months or less) lease costs 789 402 1,638 827 |
Maturities of Operating Lease Liabilities | Maturities of our lease liabilities as of September 30, 2023 are as follows: (in thousands) Operating lease obligations 2023 $ 559 2024 1,796 2025 1,322 2026 638 2027 — Total lease payments 4,315 Less: interest (540) Present value of lease liabilities $ 3,775 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Segments | Financial information for our segments is as follows: Three months ended September 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 28,702 $ 7,511 $ — $ 36,213 Cost of revenue 18,312 7,151 3,561 29,024 Gross profit (loss) 10,390 360 (3,561) 7,189 Selling, general and administrative expenses 1,966 1,797 6,971 10,734 Income (loss) from operations 8,424 (1,437) (10,532) (3,545) Total other income (expense), net — — (7,317) (7,317) Income (loss) before income taxes and non-controlling interests $ 8,424 $ (1,437) $ (17,849) $ (10,862) Three months ended September 30, 2022 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 30,866 $ 7,514 $ — $ 38,380 Cost of revenue 22,082 7,654 4,651 34,387 Gross profit (loss) 8,784 (140) (4,651) 3,993 Selling, general and administrative expenses 2,931 2,399 9,226 14,556 Income (loss) from operations 5,853 (2,539) (13,877) (10,563) Total other income (expense), net 4 — (3,894) (3,890) Income (loss) before income taxes and non-controlling interests $ 5,857 $ (2,539) $ (17,771) $ (14,453) Nine months ended September 30, 2023 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 87,495 $ 23,414 $ — $ 110,909 Cost of revenue 56,075 22,623 10,986 89,684 Gross profit (loss) 31,420 791 (10,986) 21,225 Selling, general and administrative expenses 6,905 5,873 22,391 35,169 Income (loss) from operations 24,515 (5,082) (33,377) (13,944) Total other income (expense), net — — (26,454) (26,454) Income (loss) before income taxes and non-controlling interests $ 24,515 $ (5,082) $ (59,831) $ (40,398) Nine months ended September 30, 2022 (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Revenue $ 91,349 $ 26,968 $ — $ 118,317 Cost of revenue 64,235 26,206 14,170 104,611 Gross profit (loss) 27,114 762 (14,170) 13,706 Selling, general and administrative expenses 9,227 6,739 27,089 43,055 Income (loss) from operations 17,887 (5,977) (41,259) (29,349) Total other income (expense), net 4 — (10,051) (10,047) Income (loss) before income taxes and non-controlling interests $ 17,891 $ (5,977) $ (51,310) $ (39,396) (in thousands) Servicer and Real Estate Origination Corporate and Others Consolidated Altisource Total assets: September 30, 2023 $ 57,143 $ 51,191 $ 54,302 $ 162,636 December 31, 2022 63,696 53,984 77,588 195,268 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) installment segment | Dec. 31, 2022 USD ($) | |
Summary of significant accounting policies | ||
Number of reporting segments | segment | 2 | |
Total assets: | $ 162,636 | $ 195,268 |
Variable Interest Entity, Primary Beneficiary | ||
Summary of significant accounting policies | ||
Number of terms | installment | 3 | |
Agreement term | 5 years | |
Total assets: | $ 200 | 1,200 |
Total liabilities | $ 400 | $ 1,100 |
CUSTOMER CONCENTRATION - Narrat
CUSTOMER CONCENTRATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Concentration Risk | ||||||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 | ||
Customer Concentration Risk | Ocwen | ||||||
Concentration Risk | ||||||
Accounts receivable | 4,000 | 4,000 | $ 4,000 | |||
Customer Concentration Risk | Ocwen | Billed | ||||||
Concentration Risk | ||||||
Accounts receivable | 2,800 | 2,800 | 3,200 | |||
Customer Concentration Risk | Ocwen | Unbilled | ||||||
Concentration Risk | ||||||
Accounts receivable | $ 1,200 | $ 1,200 | $ 800 | |||
Customer Concentration Risk | Ocwen | Revenue | ||||||
Concentration Risk | ||||||
Concentration percentage (in percent) | 43% | 45% | 43% | 40% | ||
Revenue | $ 15,700 | $ 17,200 | $ 47,300 | $ 47,200 | ||
Customer Concentration Risk | Highly Correlated - Ocwen | Revenue | ||||||
Concentration Risk | ||||||
Concentration percentage (in percent) | 6% | 7% | ||||
Revenue | $ 2,300 | 2,200 | $ 7,300 | 7,300 | ||
Customer Concentration Risk | RITM | Revenue | ||||||
Concentration Risk | ||||||
Revenue | 700 | 800 | 2,300 | 2,600 | ||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 16% | |||||
Percentage of delinquent loans Ocwen services (in percent) | 0.68 | |||||
Customer Concentration Risk | Highly Correlated - RITM | Revenue | ||||||
Concentration Risk | ||||||
Revenue | $ 3,200 | $ 3,000 | $ 10,100 | $ 10,400 | ||
Customer Concentration Risk | Ocwen | RITM | Revenue | ||||||
Concentration Risk | ||||||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 16% | |||||
Percentage of delinquent loans Ocwen services (in percent) | 0.68 |
CUSTOMER CONCENTRATION - Schedu
CUSTOMER CONCENTRATION - Schedule of Revenue from Ocwen (Details) - Ocwen - Revenue - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 43% | 45% | 43% | 40% |
Corporate and Others | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 0% | 0% | 0% | 0% |
Servicer and Real Estate | Operating Segments | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 55% | 56% | 54% | 52% |
Origination | Operating Segments | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage (in percent) | 0% | 0% | 0% | 0% |
ACCOUNTS RECEIVABLE, NET - Sche
ACCOUNTS RECEIVABLE, NET - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts receivable, net | ||||||||
Accounts receivable, gross | $ 16,360 | $ 16,360 | $ 17,352 | |||||
Less: Allowance for credit losses | (3,379) | $ (4,481) | (3,379) | $ (4,481) | $ (4,314) | (4,363) | $ (4,792) | $ (5,297) |
Total | 12,981 | 12,981 | 12,989 | |||||
Bad debt expense | (203) | (22) | 319 | 578 | ||||
Deductions | 732 | $ 289 | 1,303 | $ 1,394 | ||||
Billed | ||||||||
Accounts receivable, net | ||||||||
Accounts receivable, gross | 10,386 | 10,386 | 11,993 | |||||
Unbilled | ||||||||
Accounts receivable, net | ||||||||
Accounts receivable, gross | $ 5,974 | $ 5,974 | $ 5,359 |
ACCOUNTS RECEIVABLE, NET - Sc_2
ACCOUNTS RECEIVABLE, NET - Schedule of Allowance for Doubtful Accounts and Expected Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for expected credit losses: | ||||
Balance at Beginning of Period | $ 4,314 | $ 4,792 | $ 4,363 | $ 5,297 |
Additions Charged to Expenses | (203) | (22) | 319 | 578 |
Deductions | 732 | 289 | 1,303 | 1,394 |
Balance at End of Period | $ 3,379 | $ 4,481 | $ 3,379 | $ 4,481 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 2,746 | $ 5,165 |
Income taxes receivable | 510 | 7,031 |
Maintenance agreements, current portion | 1,868 | 1,498 |
Indemnity escrow receivable from Pointillist sale | 3,201 | 3,223 |
Restricted cash | 23 | 0 |
Surety bond collateral | 0 | 4,000 |
Other current assets | 2,869 | 2,627 |
Total | $ 11,217 | $ 23,544 |
PREMISES AND EQUIPMENT, NET - S
PREMISES AND EQUIPMENT, NET - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 47,705 | $ 59,311 |
Less: Accumulated depreciation and amortization | (45,537) | (55,089) |
Total | 2,168 | 4,222 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 46,568 | 49,339 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,011 | 5,794 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 102 | 3,832 |
Office equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 24 | $ 346 |
PREMISES AND EQUIPMENT, NET - N
PREMISES AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 600 | $ 900 | $ 1,933 | $ 2,700 |
PREMISES AND EQUIPMENT, NET -_2
PREMISES AND EQUIPMENT, NET - Summary by Country (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,168 | $ 4,222 |
Luxembourg | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,459 | 2,455 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Total | 602 | 1,129 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total | 80 | 586 |
Uruguay | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 27 | $ 52 |
RIGHT-OF-USE ASSETS UNDER OPE_3
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET - Summary of Right-Of-Use Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets under operating leases | $ 7,334 | $ 11,808 |
Less: Accumulated amortization | (3,706) | (6,487) |
Total | $ 3,628 | $ 5,321 |
RIGHT-OF-USE ASSETS UNDER OPE_4
RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets under operating leases | $ 400 | $ 500 | $ 1,351 | $ 2,254 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Net | ||
Goodwill | $ 55,960 | $ 55,960 |
Corporate and Others | ||
Intangible Assets, Net | ||
Goodwill | 0 | 0 |
Servicer and Real Estate | Operating Segments | ||
Intangible Assets, Net | ||
Goodwill | 30,681 | 30,681 |
Origination | Operating Segments | ||
Intangible Assets, Net | ||
Goodwill | $ 25,279 | $ 25,279 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Net | ||
Gross carrying amount | $ 259,016 | $ 259,016 |
Accumulated amortization | (231,198) | (227,286) |
Net book value | 27,818 | 31,730 |
Customer related intangible assets | ||
Intangible Assets, Net | ||
Gross carrying amount | 214,307 | 214,307 |
Accumulated amortization | (199,915) | (197,594) |
Net book value | 14,392 | 16,713 |
Operating agreement | ||
Intangible Assets, Net | ||
Gross carrying amount | 35,000 | 35,000 |
Accumulated amortization | (23,917) | (22,604) |
Net book value | 11,083 | 12,396 |
Trademarks and trade names | ||
Intangible Assets, Net | ||
Gross carrying amount | 9,709 | 9,709 |
Accumulated amortization | (7,366) | (7,088) |
Net book value | $ 2,343 | $ 2,621 |
Weighted Average | Customer related intangible assets | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 9 years | |
Weighted Average | Operating agreement | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 20 years | |
Weighted Average | Trademarks and trade names | ||
Intangible Assets, Net | ||
Weighted average estimated useful life (in years) | 16 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 1,352 | $ 1,281 | $ 3,912 | $ 3,849 |
2023 | 5,200 | 5,200 | ||
2024 | 5,100 | 5,100 | ||
2025 | 5,100 | 5,100 | ||
2026 | 4,900 | 4,900 | ||
2027 | $ 4,700 | $ 4,700 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Restricted cash | $ 3,184 | $ 3,248 |
Security deposits | 597 | 596 |
Other | 3,461 | 1,585 |
Total | $ 7,242 | $ 5,429 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 16,404 | $ 14,981 |
Accrued expenses - general | 8,425 | 11,858 |
Accrued salaries and benefits | 4,937 | 5,501 |
Income taxes payable | 1,266 | 1,167 |
Total | $ 31,032 | $ 33,507 |
ACCOUNTS PAYABLE, ACCRUED EXP_4
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other current liabilities | ||
Operating lease liabilities | $ 1,596 | $ 2,097 |
Other | 703 | 770 |
Total | $ 2,299 | $ 2,867 |
WARRANTS - Narrative (Details)
WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 18, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Feb. 14, 2023 | |
Warrant Liability [Line Items] | ||||||
Repayments of long-term debt | $ 30,000 | $ 0 | ||||
Price of warrant or right (in usd per share) | $ 0.01 | |||||
Warrant Shares based on Aggregate Paydowns | ||||||
Warrant Liability [Line Items] | ||||||
Gain (loss) on changes in fair value of warrant liability | $ 2,200 | 1,100 | ||||
Line of Credit | Secured Debt | ||||||
Warrant Liability [Line Items] | ||||||
Repayments of long-term debt | $ 10,000 | $ 20,000 | $ 30,000 | |||
Line of Credit | Secured Debt | Maximum | ||||||
Warrant Liability [Line Items] | ||||||
Repayments of long-term debt | $ 30,000 | |||||
Line of Credit | Secured Debt | Common stock | ||||||
Warrant Liability [Line Items] | ||||||
Warrant shares (in shares) | 3,223,851 | |||||
Paydown Agreement | Credit Facility | ||||||
Warrant Liability [Line Items] | ||||||
Warrant shares (in shares) | 1,612,705 | 1,612,705 |
WARRANTS - Aggregate Paydown (D
WARRANTS - Aggregate Paydown (Details) - Secured Debt - Line of Credit - Common stock | Feb. 14, 2023 shares |
Warrant Liability [Line Items] | |
Warrant shares (in shares) | 3,223,851 |
Less than $20 million | |
Warrant Liability [Line Items] | |
Warrant shares (in shares) | 3,223,851 |
$20 million+ but less than below | |
Warrant Liability [Line Items] | |
Warrant shares (in shares) | 2,578,743 |
$30 million+ | |
Warrant Liability [Line Items] | |
Warrant shares (in shares) | 1,612,705 |
WARRANTS - Fair Value of Warran
WARRANTS - Fair Value of Warrant Liability (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2023 | Sep. 18, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Feb. 14, 2023 | |
Warrant Shares based on Aggregate Paydowns | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance (in shares) | 2,578,743 | 2,578,743 | 2,578,743 | |||
Fair value measurement (in shares) | 2,578,743 | 1,612,705 | 2,578,743 | 3,223,851 | ||
Gain (loss) on changes in fair value of warrant liability | $ (2,200) | $ (1,100) | ||||
Ending balance (in shares) | 2,578,743 | 1,612,705 | 2,578,743 | |||
Expected Warrant Shares that will be exercisable on February 14, 2024 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance (in shares) | 1,612,705 | 1,612,705 | 1,612,705 | |||
Fair value measurement (in shares) | 1,612,705 | 1,612,705 | 1,612,705 | 1,612,705 | ||
Gain (loss) on changes in fair value of warrant liability | $ (694) | |||||
Ending balance (in shares) | 1,612,705 | 1,612,705 | 1,612,705 | |||
Warranty Liability | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning balance (in usd per share) | $ 5.69 | $ 5.69 | $ 4.59 | |||
Beginning balance Fair Value | $ 9,176 | $ 9,176 | $ 7,402 | |||
Fair value per Warrant Share (in usd per share) | $ 4.59 | $ 4.31 | $ 5.69 | $ 5.02 | ||
Fair value of warrants | $ 7,402 | $ 6,951 | $ 9,176 | $ 8,096 | ||
Gain (loss) on changes in fair value of warrant liability | $ (2,225) | $ 1,774 | ||||
Ending balance (in usd per share) | $ 4.59 | $ 4.31 | $ 5.69 | |||
Ending balance Fair Value | $ 7,402 | $ 6,951 | $ 9,176 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less: Debt issuance and amendment costs, net | $ (900,000) | |
Long-term debt | $ 211,980,000 | 245,493,000 |
Revolver | ||
Debt Instrument [Line Items] | ||
Senior Secured Term Loans | 0 | 0 |
Less: Debt issuance and amendment costs, net | (200,000) | (300,000) |
Senior Secured Term Loans | ||
Debt Instrument [Line Items] | ||
Senior Secured Term Loans | 221,981,000 | 247,204,000 |
Less: Debt issuance and amendment costs, net | (3,918,000) | (878,000) |
Less: Unamortized discount, net | (6,083,000) | (833,000) |
Net Senior secured term loans | $ (211,980,000) | $ (245,493,000) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 18, 2023 USD ($) | Mar. 29, 2023 | Feb. 14, 2023 USD ($) shares | Jun. 22, 2021 USD ($) | Apr. 30, 2018 USD ($) lender | Sep. 30, 2023 USD ($) shares | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Jun. 30, 2023 | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 30,000,000 | $ 0 | |||||||||
Cash and cash equivalents (less than) | $ 36,640,000 | 36,640,000 | $ 63,812,000 | $ 51,025,000 | |||||||
Debt issuance and amendment costs | 3,900,000 | 3,900,000 | |||||||||
Accumulated amortization of debt issuance and amendment costs | $ 5,500,000 | $ 5,500,000 | |||||||||
Debt issuance costs, net | 900,000 | ||||||||||
Accumulated amortization | 3,600,000 | ||||||||||
Altisource S.A.R.L. | Deer Park Road Management Company, LP | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Noncontrolling ownership percentage (in percent) | 15% | 15% | |||||||||
Warrant | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Warrants and Rights Outstanding | $ 8,100,000 | ||||||||||
Term B Loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of consolidated excess cash flow requiring mandatory prepayments (in percent) | 0.50 | 0.50 | |||||||||
April 3, 2018 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of incremental lenders | lender | 1 | ||||||||||
Accordion feature, potential increase in additional borrowings | $ 50,000,000 | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 412,000,000 | ||||||||||
Interest rate at the end of the period (in percent) | 14.09% | 14.09% | |||||||||
April 3, 2018 Credit Agreement | Term B Loans | Deer Park Road Management Company, LP | Altisource S.A.R.L. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 40,200,000 | $ 40,200,000 | |||||||||
Interest received | $ 2,000,000 | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Altisource S.A.R.L. | Deer Park Road Management Company, LP | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Warrants (in shares) | shares | 583,000 | 583,000 | |||||||||
April 3, 2018 Credit Agreement | Term B Loans | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount of principal or interest if failed to pay considered as event of default | 5,000,000 | ||||||||||
Amount of debt which results in acceleration of debt if failed to pay considered as event of default | 5,000,000 | ||||||||||
Amount of unbonded, undischarged or unstayed debt under entry by court of one or more judgments for certain period to determine as event of default | $ 10,000,000 | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument fixed base rate (in percent) | 2% | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Variable Rate Component One, Paid In Cash | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin (in percent) | 4% | ||||||||||
April 3, 2018 Credit Agreement | Term B Loans | Variable Rate Component Two, Paid In Kind | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin (in percent) | 5% | ||||||||||
Secured Debt | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 10,000,000 | $ 20,000,000 | $ 30,000,000 | ||||||||
PIK Component of Interest Rate (in percent) | 0.0375 | 0.0375 | 0.0450 | ||||||||
Secured Debt | Line of Credit | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 30,000,000 | ||||||||||
Secured Debt | Line of Credit | Common stock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Warrant shares (in shares) | shares | 3,223,851 | ||||||||||
Secured Debt | Term B Loans | Adjusted Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin (in percent) | 4% | ||||||||||
Secured Debt | Second Amended Credit Facility | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 30,000,000 | ||||||||||
Secured Debt | Second Amended Credit Facility | Line of Credit | Variable Rate Component One, Paid In Cash | Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin (in percent) | 5% | ||||||||||
Secured Debt | $30 million+ | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
PIK Component of Interest Rate (in percent) | 0.02 | ||||||||||
Secured Debt | $30 million+ | Line of Credit | Common stock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Warrant shares (in shares) | shares | 1,612,705 | ||||||||||
Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payment due date default period (in days) | 3 days | ||||||||||
Debt issuance costs, net | $ 200,000 | $ 200,000 | 300,000 | ||||||||
Accumulated amortization | 400,000 | 400,000 | 300,000 | ||||||||
Interest rate (in percent) | 10% | ||||||||||
Failure to perform period (in days) | 30 days | ||||||||||
Covenant threshold | $ 40,000,000 | ||||||||||
Borrowings under revolving credit facility | $ 0 | $ 0 | $ 0 | ||||||||
Credit Facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
PIK Component of Interest Rate (in percent) | 0.0200 | ||||||||||
Cash and cash equivalents (less than) | $ 35,000,000 | ||||||||||
Credit Facility | April 3, 2018 Credit Agreement | Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payment due date default period (in days) | 5 days | ||||||||||
Credit Facility | Second Revolver Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | 4,900,000 | ||||||||||
Other expenses | 3,400,000 | ||||||||||
Credit Facility | Credit Facility Borrowings Through June 22, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 15,000,000 | ||||||||||
Credit Facility | First Revolver Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
PIK interest rate (in percent) | 0.0300 | ||||||||||
Upfront fee | $ 750,000 |
LONG-TERM DEBT - PIK Interest R
LONG-TERM DEBT - PIK Interest Rate (Details) - Line of Credit - Secured Debt | Sep. 30, 2023 | Jun. 30, 2023 | Feb. 14, 2023 |
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0375 | 0.0450 | |
Less than $20 million | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0500 | ||
$20 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0450 | ||
$30 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0375 | ||
$40 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0350 | ||
$45 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0300 | ||
$50 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0250 | ||
$55 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0200 | ||
$60 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0100 | ||
$65 million+ but less than below | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0.0050 | ||
$70 million+ | |||
Interest Rate and Interest Differential Analysis [Line Items] | |||
PIK Component of Interest Rate (in percent) | 0 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Income tax liabilities | $ 16,036 | $ 16,079 |
Operating lease liabilities | 2,179 | 3,371 |
Deferred revenue | 13 | 82 |
Other non-current liabilities | 4 | 4 |
Total | $ 18,232 | $ 19,536 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Assets: | |||
Cash and cash equivalents | $ 36,640 | $ 51,025 | $ 63,812 |
Restricted cash | 3,207 | 3,248 | $ 3,584 |
Short-term receivable | 3,201 | 3,223 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 36,640 | 51,025 | |
Restricted cash | 3,207 | 3,248 | |
Short-term receivable | 0 | 0 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Short-term receivable | 0 | 0 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Short-term receivable | 3,201 | 3,223 | |
Senior secured term loans | |||
Liabilities: | |||
Senior secured term loans | 221,981 | 247,204 | |
Senior secured term loans | Level 1 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loans | 0 | 0 | |
Senior secured term loans | Level 2 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loans | 177,585 | 200,235 | |
Senior secured term loans | Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Senior secured term loans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 01, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Proceeds from the sale of business | $ 0 | $ 346 | |||
Customer Concentration Risk | Ocwen | Revenue | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Percentage of revenue from largest customer (in percent) | 43% | 45% | 43% | 40% | |
Pointillist, Inc. | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Proceeds from the sale of business | $ 3,500 |
SHAREHOLDERS_ EQUITY AND SHAR_3
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 07, 2023 USD ($) $ / shares shares | Feb. 14, 2023 USD ($) $ / shares shares | May 15, 2018 $ / shares shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) component $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 shares | |
Share-Based Compensation | ||||||||
Share-based compensation expense | $ | $ 3,918 | $ 3,899 | ||||||
Estimated unrecognized compensation costs | $ | $ 3,200 | $ 3,200 | ||||||
Weighted average remaining requisite service period for stock options over which unrecognized compensation costs would be recognized | 1 year 1 month 28 days | |||||||
Outstanding (in shares) | 739,189 | 739,189 | 745,277 | |||||
Stock options granted (in shares) | 0 | 105,000 | ||||||
Weighted average exercise price (in usd per share) | $ / shares | $ 0 | $ 11.86 | ||||||
Common stock | Public Stock Offering | ||||||||
Share Repurchase Program | ||||||||
Shares issued in transaction (in shares) | 5,590,277 | 4,550,000 | ||||||
Price of stock (in usd per share) | $ / shares | $ 3.60 | $ 5 | ||||||
Net proceeds of sale of stock | $ | $ 18,400 | $ 20,500 | ||||||
Share-Based Compensation | ||||||||
Share-based compensation expense | $ | $ 1,200 | $ 1,300 | ||||||
Stock Options, Service-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 182,000 | 182,000 | ||||||
Stock Options, Service-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Stock Options, Service-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Stock Options, Market-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 96,000 | 96,000 | ||||||
Number of components of an award | component | 2 | |||||||
Allowable performance period before expiration date | 3 years | |||||||
Stock Options, Market-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Stock Options, Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Stock Options, Market-Based, Ordinary Performance | ||||||||
Share-Based Compensation | ||||||||
Percentage of awards | 67% | 67% | ||||||
Vesting threshold | 2 | 2 | ||||||
Stock Options, Market-Based, Ordinary Performance | Minimum | ||||||||
Share-Based Compensation | ||||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 20% | |||||||
Stock Options, Market-Based, Extraordinary Performance | ||||||||
Share-Based Compensation | ||||||||
Percentage of awards | 33% | 33% | ||||||
Stock Options, Market-Based, Extraordinary Performance | Minimum | ||||||||
Share-Based Compensation | ||||||||
Percentage of compounded annual gain of stock price over exercise price required for the award to vest | 25% | |||||||
Stock Options, Performance-Based | ||||||||
Share-Based Compensation | ||||||||
Outstanding (in shares) | 461,000 | 461,000 | ||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Two | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Three | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche One | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Share-based Payment Arrangement, Tranche Four | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 25% | |||||||
Stock Options, Performance-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Allowable performance period before expiration date | 10 years | |||||||
Attainment above threshold performance levels, vesting percentage | 50% | |||||||
Stock Options, Performance-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 200% | |||||||
Restricted Stock and Restricted Stock Units, Service-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 907,000 | 907,000 | ||||||
Restricted Stock and Restricted Stock Units, Service-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 1 year | |||||||
Restricted Stock and Restricted Stock Units, Service-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 4 years | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 141,000 | 141,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Two | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche Three | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Share-based Payment Arrangement, Tranche One | ||||||||
Share-Based Compensation | ||||||||
Vesting percentage | 33% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 150% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 112,000 | 112,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Minimum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 30 days | |||||||
Vesting percentage | 50% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Vesting period | 1 year | |||||||
Vesting percentage | 50% | |||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted shares and restricted share units outstanding (in shares) | 125,000 | 125,000 | ||||||
Restricted Stock and Restricted Stock Units (RSUs), Performance-Based and Market-Based | Maximum | ||||||||
Share-Based Compensation | ||||||||
Attainment above threshold performance levels, vesting percentage | 300% | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 891,000 | |||||||
Restricted share units granted, weighted average grant date fair value (in usd per share) | $ / shares | $ 4.82 | |||||||
Restricted Stock Units (RSUs), Performance-Based and Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 57,000 | 46,000 | ||||||
Restricted Stock Units (RSUs), Market-Based | ||||||||
Share-Based Compensation | ||||||||
Restricted share units granted (in shares) | 57,000 | 46,000 | ||||||
Share Repurchase Program, Current | ||||||||
Share Repurchase Program | ||||||||
Number of shares of common stock authorized to be purchased (in shares) | 3,100,000 | |||||||
Percentage of outstanding shares authorized to be repurchased | 15% | |||||||
Minimum purchase price authorized (in usd per share) | $ / shares | $ 1 | |||||||
Maximum purchase price authorized (in usd per share) | $ / shares | $ 25 | |||||||
Period that shares may be repurchased, from the date of approval | 5 years | |||||||
Remaining number of shares available for repurchase under the plan (in shares) | 3,100,000 | 3,100,000 | ||||||
Number of shares of common stock purchased (in shares) | 0 | 0 | ||||||
Authorized amount | $ | $ 60,000 | $ 60,000 |
SHAREHOLDERS_ EQUITY AND SHAR_4
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Pricing Model (Details) - Stock Options | 9 Months Ended |
Sep. 30, 2023 $ / shares | |
Equity And Share-Based Compensation | |
Risk-free interest rate (%) | 1.62% |
Expected stock price volatility (%) | 67.75% |
Expected dividend yield (%) | 0% |
Expected option life (in years) | 6 years |
Fair value (in usd per share) | $ 7.27 |
SHAREHOLDERS_ EQUITY AND SHAR_5
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Schedule of Grant Date Fair Value of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted average grant date fair value of stock options granted per share (in usd per share) | $ 0 | $ 8.19 |
Intrinsic value of options exercised | $ 0 | $ 0 |
Grant date fair value of stock options that vested | $ 83 | $ 1,031 |
SHAREHOLDERS_ EQUITY AND SHAR_6
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - Summary of Activity Related to Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Number of options | |||
Outstanding at the beginning of the period (in shares) | 745,277 | ||
Granted (in shares) | 0 | 105,000 | |
Forfeited (in shares) | (6,088) | ||
Outstanding at the end of the period (in shares) | 739,189 | 745,277 | |
Exercisable at the end of the period (in shares) | 543,701 | ||
Weighted average exercise price | |||
Outstanding at the beginning of the period (in usd per share) | $ 27.03 | ||
Granted (in usd per share) | 0 | $ 11.86 | |
Forfeited (in usd per share) | 25.26 | ||
Outstanding at the end of the period (in usd per share) | 27.04 | $ 27.03 | |
Exercisable at the end of the period (in usd per share) | $ 25.27 | ||
Weighted average contractual term (in years) | |||
Weighted average contractual term | 4 years 1 month 2 days | 4 years 9 months 29 days | |
Exercisable at the end of the period | 3 years 6 months | ||
Aggregate intrinsic value (in thousands) | |||
Aggregate intrinsic value, beginning balance (in dollars) | $ 0 | ||
Aggregate intrinsic value, ending balance (in dollars) | 0 | $ 0 | |
Exercisable at the end of the period (in dollars) | $ 0 |
SHAREHOLDERS_ EQUITY AND SHAR_7
SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION - RSU (Details) - Restricted Stock And Restricted Stock Units | 9 Months Ended |
Sep. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at the beginning of period (in shares) | 755,006 |
Granted (in shares) | 890,810 |
Issued (in shares) | (213,576) |
Forfeited/canceled (in shares) | (147,241) |
Outstanding at the end of period (in shares) | 1,284,999 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) category | Sep. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | ||||
Categories of revenue | category | 3 | |||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 |
Revenue recognized that was included in the contract liability at the beginning of the period | 500 | 800 | 3,300 | 3,700 |
Service revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 34,112 | 36,290 | 104,356 | 111,691 |
Related Party | Aldridge Pite | Service revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 100 | $ 100 | $ 100 | $ 100 |
REVENUE - Schedule of Component
REVENUE - Schedule of Components of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 |
Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34,112 | 36,290 | 104,356 | 111,691 |
Reimbursable expenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,039 | 1,957 | 6,398 | 6,158 |
Non-controlling interests | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 62 | $ 133 | $ 155 | $ 468 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 |
Revenue recognized when services are performed or assets are sold | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,487 | 33,779 | 96,222 | 104,480 |
Revenue related to technology platforms and professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,687 | 2,644 | 8,289 | 7,679 |
Reimbursable expenses revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,039 | 1,957 | 6,398 | 6,158 |
Servicer and Real Estate | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,702 | 30,866 | 87,495 | 91,349 |
Servicer and Real Estate | Revenue recognized when services are performed or assets are sold | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,223 | 26,387 | 73,314 | 77,947 |
Servicer and Real Estate | Revenue related to technology platforms and professional services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,677 | 2,633 | 8,265 | 7,654 |
Servicer and Real Estate | Reimbursable expenses revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,802 | 1,846 | 5,916 | 5,748 |
Origination | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,511 | 7,514 | 23,414 | 26,968 |
Origination | Revenue recognized when services are performed or assets are sold | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,264 | 7,392 | 22,908 | 26,533 |
Origination | Revenue related to technology platforms and professional services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10 | 11 | 24 | 25 |
Origination | Reimbursable expenses revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 237 | $ 111 | $ 482 | $ 410 |
COST OF REVENUE - Schedule of C
COST OF REVENUE - Schedule of Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cost of Revenue [Abstract] | ||||
Outside fees and services | $ 13,659 | $ 15,319 | $ 42,810 | $ 42,573 |
Compensation and benefits | 9,090 | 11,885 | 28,072 | 39,231 |
Technology and telecommunications | 3,786 | 4,656 | 11,048 | 14,844 |
Reimbursable expenses | 2,039 | 1,957 | 6,398 | 6,158 |
Depreciation and amortization | 450 | 570 | 1,356 | 1,805 |
Total | $ 29,024 | $ 34,387 | $ 89,684 | $ 104,611 |
COST OF REVENUE - Narrative (De
COST OF REVENUE - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Reimbursable expenses | $ 2,039,000 | $ 1,957,000 | $ 6,398,000 | $ 6,158,000 | |
Accounts payable and accrued expenses | 31,032,000 | 31,032,000 | $ 33,507,000 | ||
Related Party | Aldridge Pite | |||||
Related Party Transaction [Line Items] | |||||
Reimbursable expenses | 200,000 | $ 100,000 | 600,000 | $ 300,000 | |
Accounts payable and accrued expenses | $ 0 | $ 0 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Selling, General and Administrative Expense [Abstract] | ||||
Compensation and benefits | $ 4,906 | $ 7,388 | $ 16,312 | $ 19,093 |
Professional services | 1,897 | 2,584 | 5,743 | 8,432 |
Occupancy related costs | 1,266 | 1,008 | 3,924 | 4,049 |
Amortization of intangible assets | 1,352 | 1,281 | 3,912 | 3,849 |
Marketing costs | 440 | 774 | 1,381 | 2,446 |
Depreciation and amortization | 129 | 284 | 577 | 895 |
Other | 744 | 1,237 | 3,320 | 4,291 |
Total | $ 10,734 | $ 14,556 | $ 35,169 | $ 43,055 |
OTHER INCOME (EXPENSE), NET (De
OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Interest income (expense) | $ 262 | $ 212 | $ 1,011 | $ 318 |
Other, net | 145 | 247 | 1,346 | 1,074 |
Total | $ 407 | $ 459 | $ 2,357 | $ 1,392 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (provision) benefit | $ (418) | $ 197 | $ (2,586) | $ (2,210) |
LOSS PER SHARE - Schedule of Ba
LOSS PER SHARE - Schedule of Basic and Diluted Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Altisource | $ (11,342) | $ (14,389) | $ (43,139) | $ (42,074) |
Weighted average common shares outstanding, basic (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Weighted average common shares outstanding, diluted (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Loss per share: | ||||
Basic (in usd per share) | $ (0.51) | $ (0.89) | $ (2.10) | $ (2.62) |
Diluted (in usd per share) | $ (0.51) | $ (0.89) | $ (2.10) | $ (2.62) |
LOSS PER SHARE - Narrative (Det
LOSS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 1,500 | 1,300 | 1,500 | 1,300 |
Weighted average common shares outstanding, basic (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Weighted average common shares outstanding, diluted (in shares) | 22,181 | 16,087 | 20,538 | 16,051 |
Employee and Nonemployee Stock Options, Restricted Stock and Restricted Stock Units Whose Impacts are Anti-Dilutive | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 400 | 200 | 300 | 200 |
Options Whose Exercise Price is Greater than Average Market Price | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 200 | 200 | 300 | 200 |
Options and Restricted Shares Issuable upon Achievement of Certain Market and Performance Criteria That Has Not Been Met | ||||
Anti-dilutive securities | ||||
Options, restricted shares and restricted share units excluded from the computation of diluted EPS (in shares) | 900 | 900 | 900 | 900 |
Penny Warrant | ||||
Anti-dilutive securities | ||||
Weighted average common shares outstanding, basic (in shares) | 200 | 100 | ||
Weighted average common shares outstanding, diluted (in shares) | 200 | 100 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Concentration Risk | ||||||
Sublease income | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.4 | ||
Amounts held in escrow and trust accounts | $ 39 | $ 39 | $ 13.2 | |||
Minimum | ||||||
Concentration Risk | ||||||
Lease term | 1 year | 1 year | ||||
Maximum | ||||||
Concentration Risk | ||||||
Lease term | 6 years | 6 years | ||||
Ocwen | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Percentage of revenue from largest customer (in percent) | 43% | 45% | 43% | 40% | ||
Highly Correlated - Ocwen | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Percentage of revenue from largest customer (in percent) | 6% | 7% | ||||
RITM | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 16% | |||||
Percentage of delinquent loans Ocwen services (in percent) | 0.68 | |||||
RITM | Revenue | Customer Concentration Risk | Ocwen | ||||||
Concentration Risk | ||||||
Percentage of loans serviced and subserviced by largest customer's largest client (in percent) | 16% | |||||
Percentage of delinquent loans Ocwen services (in percent) | 0.68 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Term and Assumption (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining lease term (in years) | 2 years 6 months 3 days | 3 years 1 month 24 days |
Weighted average discount rate | 5.93% | 5.66% |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Lease Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Cash used in operating activities for amounts included in the measurement of lease liabilities | $ 507 | $ 515 | $ 1,638 | $ 2,022 |
Short-term (twelve months or less) lease costs | 789 | 402 | 1,638 | 827 |
Selling, general and administrative expense | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs: | 553 | 586 | 1,638 | 2,217 |
Cost of revenue | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs: | $ 0 | $ 0 | $ 0 | $ 265 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 559 |
2024 | 1,796 |
2025 | 1,322 |
2026 | 638 |
2027 | 0 |
Total lease payments | 4,315 |
Less: interest | (540) |
Present value of lease liabilities | $ 3,775 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
SEGMENT REPORTING - Summary (De
SEGMENT REPORTING - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
SEGMENT REPORTING | |||||
Revenue | $ 36,213 | $ 38,380 | $ 110,909 | $ 118,317 | |
Cost of revenue | 29,024 | 34,387 | 89,684 | 104,611 | |
Gross profit (loss) | 7,189 | 3,993 | 21,225 | 13,706 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 10,734 | 14,556 | 35,169 | 43,055 | |
Income (loss) from operations | (3,545) | (10,563) | (13,944) | (29,349) | |
Total other income (expense), net | (7,317) | (3,890) | (26,454) | (10,047) | |
Income (loss) before income taxes and non-controlling interests | (10,862) | (14,453) | (40,398) | (39,396) | |
Total assets: | |||||
Total assets: | 162,636 | 162,636 | $ 195,268 | ||
Corporate and Others | |||||
SEGMENT REPORTING | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of revenue | 3,561 | 4,651 | 10,986 | 14,170 | |
Gross profit (loss) | (3,561) | (4,651) | (10,986) | (14,170) | |
Operating expenses: | |||||
Selling, general and administrative expenses | 6,971 | 9,226 | 22,391 | 27,089 | |
Income (loss) from operations | (10,532) | (13,877) | (33,377) | (41,259) | |
Total other income (expense), net | (7,317) | (3,894) | (26,454) | (10,051) | |
Income (loss) before income taxes and non-controlling interests | (17,849) | (17,771) | (59,831) | (51,310) | |
Total assets: | |||||
Total assets: | 54,302 | 54,302 | 77,588 | ||
Servicer and Real Estate | Operating Segments | |||||
SEGMENT REPORTING | |||||
Revenue | 28,702 | 30,866 | 87,495 | 91,349 | |
Cost of revenue | 18,312 | 22,082 | 56,075 | 64,235 | |
Gross profit (loss) | 10,390 | 8,784 | 31,420 | 27,114 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 1,966 | 2,931 | 6,905 | 9,227 | |
Income (loss) from operations | 8,424 | 5,853 | 24,515 | 17,887 | |
Total other income (expense), net | 0 | 4 | 0 | 4 | |
Income (loss) before income taxes and non-controlling interests | 8,424 | 5,857 | 24,515 | 17,891 | |
Total assets: | |||||
Total assets: | 57,143 | 57,143 | 63,696 | ||
Origination | Operating Segments | |||||
SEGMENT REPORTING | |||||
Revenue | 7,511 | 7,514 | 23,414 | 26,968 | |
Cost of revenue | 7,151 | 7,654 | 22,623 | 26,206 | |
Gross profit (loss) | 360 | (140) | 791 | 762 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 1,797 | 2,399 | 5,873 | 6,739 | |
Income (loss) from operations | (1,437) | (2,539) | (5,082) | (5,977) | |
Total other income (expense), net | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes and non-controlling interests | (1,437) | $ (2,539) | (5,082) | $ (5,977) | |
Total assets: | |||||
Total assets: | $ 51,191 | $ 51,191 | $ 53,984 |