Investment Thesis
Altisource Portfolio Solutions exhibits severe financial distress with negative stockholders' equity of -$110.2M, negative operating cash flow of -$5.1M, and crushing debt burden of $191.1M against total assets of only $139.8M. The company is technically insolvent on a book value basis and consuming cash operationally despite modest revenue growth, indicating structural business challenges that make debt service unsustainable.
ASPSW Strengths
- Revenue growth of 6.8% YoY demonstrates modest top-line expansion in a challenging sector
- Gross margin of 28.6% shows reasonable unit economics before operating expenses
- Positive net income of $1.6M achieved despite operational headwinds
ASPSW Risks
- Negative stockholders' equity of -$110.2M indicates company is technically insolvent on a book value basis
- Operating cash flow is negative at -$5.1M while long-term debt is $191.1M, creating unsustainable debt burden
- Operating margin of only 0.2% and net margin of 0.9% provide minimal cushion; any revenue decline would produce losses
- Interest coverage ratio of 0.0x indicates inability to service debt from operating income
- Negative free cash flow means company is burning cash despite positive accounting earnings
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive to validate business model
- Stockholders' equity recovery - needs significant improvement from -$110.2M to avoid delisting risk
- Debt reduction progress - long-term debt of $191.1M must be materially reduced given asset base
- Operating margin expansion - 0.2% margin is insufficient and vulnerable to revenue volatility
ASPSW Financial Metrics
ASPSW Profitability Ratios
ASPSW Balance Sheet & Liquidity
ASPSW 5-Year Financial Trend
5-Year Trend Summary: ALTISOURCE PORTFOLIO SOLUTIONS S.A.'s revenue has declined by 53% over the 5-year period, indicating business contraction. The most recent EPS of $-9.99 indicates the company is currently unprofitable.
ASPSW Growth Metrics (YoY)
ASPSW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $40.5M | -$2.3M | $-0.22 |
| Q2 2025 | $39.1M | -$5.3M | $1.19 |
| Q1 2025 | $39.5M | -$5.3M | $-0.09 |
| Q3 2024 | $36.2M | -$8.3M | $-0.33 |
| Q2 2024 | $35.2M | -$8.3M | $-0.29 |
| Q1 2024 | $39.5M | -$9.2M | $-0.33 |
| Q3 2023 | $36.2M | -$11.3M | $-0.51 |
| Q2 2023 | $35.2M | -$12.0M | $-0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASPSW Capital Allocation
ASPSW SEC Filings
Access official SEC EDGAR filings for ALTISOURCE PORTFOLIO SOLUTIONS S.A. (CIK: 0001462418)