What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-04 compared with 2025-03-31 · 410 added, 381 removed, 834 unchanged (49% of the section changed)

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Notes to Consolidated Financial Statements

Table of Content

Report of Independent Registered Public Accounting Firm

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We have audited the accompanying consolidated balance sheets of Altisource Portfolio Solutions S.A.

and its subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive loss, equity (deficit), and cash flows for the years then ended and the related notes to the consolidated financial statements (collectively, the financial statements).

and its subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), equity (deficit), and cash flows for the years then ended and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

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(together with its subsidiaries, Onity).

The Company has disclosed various uncertainties associated with Onity.

The Company has disclosed various developments and uncertainties associated with Onity.

Basis for Opinion

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Significant judgment is required in determining foreign tax expense and in evaluating tax positions, including evaluating uncertainties.

The Company recorded a foreign non-U.S.

income tax provision of $2.7 million for the year ending December 31, 2024 and $19.2 million of total unrecognized tax benefits, including interest and penalties, as of December 31, 2024.

During the year, management concluded that certain of its previously unrecognized foreign tax positions were more likely than not to be sustained.

As a result, the Company recognized a $9.6 million reversal of its reserve for uncertain tax positions related to a foreign tax position and a $9.0 million reversal of related accrued interest.

The Company’s foreign non-U.S.

income tax benefit amounted to $15.1 million for the year ending December 31, 2025, and the total unrecognized tax benefits, including interest and penalties, amounted to $3.3 million as of December 31, 2025.

Table of Content

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

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

– Evaluated the reasonableness of management’s estimates by considering the application of foreign tax jurisdiction laws and regulations;

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

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

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March 4, 2026

Table of Content

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

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3,745 issued and 3,403 outstanding as of December 31, 2024)

29,963 29,963

Additional paid-in capital 257,359 211,523

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See accompanying notes to consolidated financial statements .

Table of Content

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Consolidated Statements of Operations and Comprehensive Loss

Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share data)

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Selling, general and administrative expenses 40,976 45,620

Litigation settlement loss (Note 22) 7,517 —

Loss on sale of business — 685

Income (loss) from operations 3,224 ( 16,768 )

Income from operations 417 3,224

Other income (expense), net:

Interest expense ( 12,173 ) ( 38,877 )

Change in fair value of warrant liability

Debt amendment costs

Debt exchange transaction expenses ( 3,646 ) —

Other income (expense), net 1,256 2,786

1 unchanged sentence

Loss before income taxes and non-controlling interests ( 14,146 ) ( 32,867 )

Income tax provision ( 2,581 ) ( 3,714 )

Net loss ( 35,448 ) ( 56,062 )

Income tax benefit (provision) 16,074 ( 2,581 )

Net income (loss) 1,928 ( 35,448 )

Net income attributable to non-controlling interests

( 313 ) ( 188 )

Net loss attributable to Altisource $ ( 35,636 ) $ ( 56,290 )

Loss per share:

Net income (loss) attributable to Altisource $ 1,615 $ ( 35,636 )

Earnings (loss) per share:

Basic $ 0.16 $ ( 9.99 )

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Diluted 11,067 3,567

Comprehensive loss:

Comprehensive loss, net of tax $ ( 35,448 ) $ ( 56,062 )

Comprehensive income (loss):

Comprehensive income (loss), net of tax $ 1,928 $ ( 35,448 )

Comprehensive income attributable to non-controlling interests ( 313 ) ( 188 )

Comprehensive loss attributable to Altisource $ ( 35,636 ) $ ( 56,290 )

Comprehensive income (loss) attributable to Altisource $ 1,615 $ ( 35,636 )

See accompanying notes to consolidated financial statements .

Table of Content

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

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Distributions to non-controlling interest holders — — — — — ( 138 ) ( 138 )

Reclassification of warrant liability to equity — — 6,951 — — — 6,951

Share-based compensation expense — — 4,737 — — — 4,737

Issuance of common stock, net of issuance costs 4,550 4,550 15,911 — — — 20,461

Sale of treasury stock, net of transaction costs — — — ( 228,322 ) 246,643 — 18,321

Issuance of restricted share units and restricted shares — — — ( 26,805 ) 26,805 — —

Exercise of warrants, net of costs — — ( 418 ) ( 3,893 ) 4,221 — ( 90 )

Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances — — — ( 13,481 ) 12,764 — ( 717 )

Balance, December 31, 2024 3,745 37 211,523 ( 259,977 ) ( 108,959 ) 665 ( 156,711 )

Net loss — — — ( 35,636 ) — 188 ( 35,448 )

Net income — — — 1,615 — 313 1,928

Distributions to non-controlling interest holders — — — — — ( 227 ) ( 227 )

Share-based compensation expense — — 4,347 — — — 4,347

Issuance of common stock, net of issuance costs 7,271 73 41,458 — — — 41,531

Exercise of warrants, net of costs 5 — 31 ( 57,525 ) 57,525 — 31

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Treasury shares withheld for the payment of tax on restricted share unit and restricted share issuances — — — ( 15,475 ) 15,114 — ( 361 )

Purchase of fractional shares — — — — ( 1 ) — ( 1 )

Balance, December 31, 2025 11,021 $ 110 $ 257,359 $ ( 363,735 ) $ ( 3,948 ) $ 751 $ ( 109,463 )

See accompanying notes to consolidated financial statements .

Table of Content

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

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Cash flows from operating activities:

Net loss $ ( 35,448 ) $ ( 56,062 )

Adjustments to reconcile net loss to net cash used in operating activities:

Net income (loss) $ 1,928 $ ( 35,448 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization 517 997

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Bad debt expense 228 840

Amortization of debt premium ( 4,127 ) —

Amortization of debt discount 915 3,780

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Loss on sale of business — 685

Change in fair value of warrant liability — ( 1,145 )

Changes in operating assets and liabilities:

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Proceeds from the sale of business

Net cash provided by investing activities 2,254 —

Other investing activities ( 250 ) —

Net cash (used in) provided by investing activities ( 319 ) 2,254

Cash flows from financing activities:

Proceeds from revolving loan agreement 1,000 —

Proceeds from issuance of common stock, net of issuance costs — 20,461

Proceeds from issuance of treasury stock, net of issuance costs — 18,321

Exercise of Warrants, net of costs ( 90 ) —

Debt issuance and amendment costs — ( 4,886 )

Proceeds from the Super Senior Facility 11,250 —

Debt issuance costs ( 1,742 ) —

Repayments of long-term debt ( 934 ) —

Equity issuance costs ( 3,839 ) —

Purchase of fractional shares ( 1 ) —

(Repayment of) proceeds from revolving loan ( 1,000 ) 1,000

Proceeds from exercise of warrants, net of costs 31 ( 90 )

Distributions to non-controlling interests ( 227 ) ( 138 )

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Cash, cash equivalents and restricted cash at the end of the period $ 30,493 $ 32,700

Table of Content

For the years ended December 31,

Supplemental cash flow information:

Interest paid $ 14,622 $ 23,810

Income taxes paid (refunded), net 2,053 ( 3,775 )

Income taxes paid, net ( 13 ) 2,053

Acquisition of right-of-use assets with operating lease liabilities 325 488

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Non-cash investing and financing activities:

Warrants issued in connection with Amended Credit Agreement — 8,096

Equity issued in exchange for debt reduction 45,370 —

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

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In addition, we report Corporate and Others separately.

Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation.

Principles of Consolidation

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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).

MPA provides services to Lenders One under a management agreement.

The initial term of the management agreement ended on December 31, 2025 and automatically renewed for five-year renewal term ending December 31, 2030.

The management agreement provides for up to two additional automatic five-year renewal terms thereafter.

The management agreement between MPA and Lenders One, pursuant to which MPA is the management company, represents a variable interest in a variable interest entity.

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Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

Share Consolidation

On May 28, 2025, Altisource Portfolio Solutions S.A.

effected a consolidation of its shares of common stock (the “common stock”) (also known as a reverse stock split) at a ratio of 1-for-8 (the “Share Consolidation”).

As a result of the Share Consolidation, every 8 shares of common stock outstanding immediately prior to effectiveness of the Share Consolidation were combined and converted into one share of common stock, reducing the total number of issued and outstanding shares from 88,129,766 to 11,016,220 .

No fractional shares were issued in connection with the Share Consolidation.

Instead, shareholders received cash in lieu of fractional shares, based on the closing price of Altisource’s common stock on May 27, 2025.

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

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

Functional Currency

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We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive.

This revenue can be recognized at a point in time or over time.

This revenue can be recognized at a point in time or over

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized.

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

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

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

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

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• For the majority of the services we provide, we recognize transactional revenue when the service is provided.

We recognize membership fees from Lender One members ratably over the term of membership.

We recognize membership fees from Lenders One members ratably over the term of membership.

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

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Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities.

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Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our results of operations.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Earnings Per Share

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Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

This standard updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker.

In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss.

The Company adopted this standard effective January 1, 2024 and has applied it prospectively.

Adoption of this new standard did not have a material impact on the Company’s consolidated financial statements, we have updated our disclosures based on the requirements.

Future Adoption of New Accounting Pronouncement

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

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This standard amends the Codification to enhance the transparency and decision usefulness of income tax disclosures, to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows.

This standard will be effective for annual periods beginning after December 15, 2024.

Early adoption of this standard is permitted.

The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

The Company adopted this standard effective January 1, 2025 and has applied it prospectively.

Adoption of this new standard did not have a material impact on the Company’s consolidated financial statements.

Future Adoption of New Accounting Pronouncement

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) .

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The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets .

This standard provides a practical expedient to assume that conditions as of the balance sheet date remains unchanged over the life of the asset estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606.

This standard will be effective for annual periods beginning after December 15, 2025, and for interim periods within those annual reporting periods.

Early adoption of this standard is permitted.

The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements .

This standard clarifies the form and content requirements for interim financial statements and introduces a disclosure principle requiring entities to report material events and changes occurring after the most recent annual period.

This standard will be effective for interim periods within fiscal years beginning after December 15, 2027, for public business entities.

Early adoption of this standard is permitted.

The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements.

This standard provides clarification and minor updates to various Topics in the FASB Accounting Standards Codification, including guidance related to earnings per share, lease receivables, beneficial interests, treasury stock, and transfers of receivables.

This standard will be effective for annual periods beginning after December 15, 2026, and for interim periods within those annual reporting periods.

Early adoption of this standard is permitted.

The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 3 — CUSTOMER CONCENTRATION

Onity Group Inc.

(together with its subsidiaries, “Onity”) (formerly Ocwen Financial Corporation, or “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others.

(together with its subsidiaries, “Onity”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others.

During the year ended December 31, 2025, Onity was our largest customer, accounting for 42 % of our total revenue.

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Consolidated revenue 42 % 44 %

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

We earn additional revenue related to the portfolios serviced and subserviced by Onity when a party other than Onity or the MSR owner selects Altisource as the service provider.

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As of December 31, 2025, Onity reported that approximately 10 % of loans serviced and subserviced by Onity (measured in unpaid principal balance (“UPB”)) and approximately 50 % of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”).

Rithm purchases brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the subservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Rithm Brokerage Agreement”) with terms extending through August 2025.

For the years ended December 31, 2024 and 2023, we recognized revenue from Rithm of $ 2.3 million and $ 2.8 million, respectively, under the Rithm Brokerage Agreement.

For the years ended December 31, 2024 and 2023, we recognized additional revenue of $ 10.8 million and $ 12.6 million, respectively, relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider.

In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreements with Onity effective January 31, 2026.

Rithm purchased brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the subservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Rithm Brokerage Agreement”) through August 2025.

The Rithm Brokerage Agreement expired on August 31, 2025.

At Rithm’s discretion, Altisource has continued to manage REO and receive referrals with limited exceptions from portfolios subject to the Rithm Brokerage Agreement despite the expiration of the Rithm Brokerage Agreement.

In addition, Rithm also purchases property inspection, preservation and other services from us.

For the years ended December 31, 2025 and 2024, we recognized revenue from Rithm of $ 4.2 million and $ 2.3 million, respectively.

For the years ended December 31, 2025 and 2024, we recognized additional revenue of $ 9.6 million and $ 10.8 million, respectively, relating to the Subject MSRs when a party other than Rithm selected us as the service provider.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 4 — ACCOUNTS RECEIVABLE, NET

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Total $ 17,984 $ 15,050

Unbilled accounts receivable consist primarily of certain real estate asset management services, REO and foreclosure sales, title and closing services, for which we generally recognize revenue when the service is provided but collect upon closing of the sale, as well as foreclosure trustee services and the recently launched property renovation services, for which we generally recognize revenues over the service delivery period but bill following completion of the service.

Billed accounts receivable includes receivables from certain real estate asset management services, REO and foreclosure sales and title and closing services, for which we generally recognize revenue when the service is provided but collect upon closing of the sale.

Unbilled accounts receivable also includes receivables from foreclosure trustee services and property renovation services, for which we generally recognize revenues over the service delivery period but bill following completion of the service.

We also include amounts in unbilled accounts receivable that are earned during a month and billed in the following month.

As of January 1, 2025, gross accounts receivable totaled $ 18.2 million, $ 12.2 million of which was billed and $ 6.0 million of which was unbilled, less allowance for credit losses of $ 3.1 million, resulting in net accounts receivable of $ 15.1 million.

As of January 1, 2023, accounts receivable totaled $ 17.4 million, $ 12.0 million of which was billed and $ 5.4 million of which was unbilled, less allowance for credit losses of $ 4.4 million, resulting in net accounts receivable of $ 13.0 million.

The increase in unbilled accounts receivable in 2024 relates to the recently launched residential real estate renovation services.

As of January 1, 2024, gross accounts receivable totaled $ 14.8 million, $ 11.2 million of which was billed and $ 3.6 million of which was unbilled, less allowance for credit losses of $ 3.1 million, resulting in net accounts receivable of $ 11.7 million.

We are exposed to credit losses through our sales of products and services to our customers which are recorded as accounts receivable, net on the Company’s consolidated financial statements.

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There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to our allowance for credit losses.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Changes in the allowance for expected credit losses consist of the following:

(Additions) / Subtractions

(in thousands) Balance at Beginning of Period Charged to Expenses Deductions Note (1)

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 5 — PREPAID EXPENSES AND OTHER CURRENT ASSETS

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Prepaid expenses $ 4,291 $ 3,620

Income taxes receivable 1,043 325

Indemnity escrow receivable from Pointillist sale

Maintenance agreements, current portion 1,203 962

Income taxes receivable 1,243 1,043

Restricted cash

Surety bond collateral 1,000 —

Other current assets 922 592

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Total $ 253 $ 701

Depreciation and amortization expense amounted to $ 1.0 million and $ 2.4 million for the years ended December 31, 2024 and 2023, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying consolidated statements of operations and comprehensive loss.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Depreciation and amortization expense amounted to $ 0.5 million and $ 1.0 million for the years ended December 31, 2025 and 2024, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying consolidated statements of operations and comprehensive income (loss).

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

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Luxembourg $ 190 $ 554

India 124 492

United States 20 23

Total $ 253 $ 701

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

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

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Total $ 1,117 $ 2,243

Amortization of operating leases was $ 1.5 million and $ 1.8 million for the years ended December 31, 2024 and 2023, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying consolidated statements of operations and comprehensive loss.

Amortization of operating leases was $ 1.3 million and $ 1.5 million for the years ended December 31, 2025 and 2024, respectively, and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying consolidated statements of operations and comprehensive income (loss).

NOTE 8 — GOODWILL AND INTANGIBLE ASSETS, NET

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$ 30,681 $ 25,279 $ — $ 55,960

We determined that each reportable segment represents a reporting unit.

Goodwill was allocated to each reporting unit based on the relative fair value of each of our reporting units.

Intangible Assets, net

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Trademarks and trade names 16 $ 9,709 $ 9,709 $ ( 8,198 ) $ ( 7,828 ) $ 1,511 $ 1,881

Non-compete agreements 2 432 — ( 41 ) — 391 —

Intellectual property 1 368 — ( 61 ) — 307 —

Total $ 259,421 $ 258,621 $ ( 242,336 ) $ ( 237,153 ) $ 17,085 $ 21,468

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Amortization expense for definite lived intangible assets was $ 5.2 million and $ 5.1 million for the years ended December 31, 2025 and 2024, respectively .

Forecasted annual definite lived intangible asset amortization expense for 2026 through 2030 is $ 5.5 million, $ 4.9 million, $ 4.4 million, $ 2.1 million and $ 0.2 million, respectively.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 9 — OTHER ASSETS

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Restricted cash $ 2,859 $ 2,866

Security deposits 332 397

Surety bond collateral

Security deposits 337 332

Other 1,571 1,306

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Revolving Loan Agreement

In connection with the Company’s residential real estate renovation services business, on June 3, 2024 Altisource Solutions, Inc., an indirect subsidiary of Altisource Portfolio Solutions S.A, entered into a revolving loan agreement with a related party, Altisource Asset Management Corporation (“AAMC”) (the “Revolving Loan Agreement”).

On June 3, 2024, in connection with the Company’s Property Renovation Services business, Altisource Solutions, Inc., an indirect subsidiary of Altisource Portfolio Solutions S.A, entered into a revolving loan agreement with a then related-party, Altisource Asset Management Corporation (“AAMC”) (the “Revolving Loan Agreement”).

Under the terms of the Revolving Loan Agreement, AAMC will make loans to Altisource from time to time, as may be requested by Altisource.

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Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below.

The maturity date of the Revolving Loan Agreement is June 3, 2025 and may be automatically extended for one year on each anniversary of the maturity date.

The maturity date of the Revolving Loan Agreement was June 3, 2025 and can be automatically extended for one year on each anniversary of the maturity date.

During any extension period, AAMC may terminate the Revolving Loan Agreement upon 150 days prior written notice and the loan will mature upon such termination.

During the second quarter of 2025, the Revolving Loan Agreement maturity date was extended to June 3, 2026.

Borrowings under the Revolving Loan Agreement bear interest of 12.00 % per annum in cash and are payable monthly in arrears on the first business day of each calendar month.

Altisource will pay AAMC a monthly unused commitment fee in an amount equal to 0.25 % per annum of the average amount of the unused available credit under the Revolving Loan Agreement.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Altisource pays AAMC a monthly unused commitment fee in an amount equal to 0.25 % per annum of the average amount of the unused available credit under the Revolving Loan Agreement.

Altisource’s obligation under the Revolving Loan Agreement is secured by certain receivables related to the Company’s residential real estate renovation services business.

The outstanding balance on the Revolving Loan Agreement is due and payable on the maturity date.

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

As of December 31, 2024, there was $ 1.0 million of outstanding debt under the Revolving Loan Agreement which is included in other current liabilities in the accompanying consolidated balance sheet ( no comparative amount for the year ended December 31, 2025).

NOTE 11 — LONG-TERM DEBT

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Senior secured term loans $ 159,175 $ 232,800

Debt issuance and amendment costs, net

( 884 ) ( 3,318 )

Unamortized discount, net ( 1,372 ) ( 5,152 )

Net long-term debt 230,544 215,615

Current portion of long-term debt ( 230,544 ) —

Total long-term debt, less current portion $ — $ 215,615

Super senior term loan 12,391 —

Total principal debt 171,566 232,800

Unamortized premium 22,157 —

Unamortized discount ( 1,707 ) ( 1,372 )

Unamortized debt issuance and amendment costs ( 930 ) ( 884 )

Long-term debt, net 191,086 230,544

Current maturities of long-term debt ( 1,225 ) ( 230,544 )

Total long-term debt $ 189,861 $ —

Principal payments are due as follows:

(in thousands) Total

Total debt $ 171,566

Senior Secured Term Loans

In April 2018, Altisource Portfolio Solutions S.A.

and its wholly-owned subsidiary, Altisource S.à r.l., entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders (the “Credit Agreement”).

Under the Credit Agreement, Altisource borrowed $ 412 million in the form of senior secured term loans (“SSTL”).

and its wholly-owned subsidiary, Altisource S.à r.l.

(the “Borrower”), entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders (the “Credit Agreement”).

Under the Credit Agreement, Altisource borrowed $ 412 million in the form of senior secured term loans (the “SSTL”).

Effective February 14, 2023, Altisource Portfolio Solutions S.A.

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2, the “Amended Credit Agreement”).

On February 19, 2025, Altisource Portfolio Solutions S.A.

and the Borrower entered into agreements with 100% of the lenders under the SSTL (the “Lenders”).

Under these agreements, the Lenders exchanged the SSTL with an outstanding balance of $ 232.8 million for a $ 160.0 million new first lien loan facility (the “New Facility”) and 7.3 million shares of common stock (the “Debt Exchange Shares”) (collectively, the “Debt Exchange Transaction”).

The New Facility is comprised of a $ 110.0 million interest-bearing loan (the “New Debt”) and a $ 50.0 million non-interest-bearing exit fee (the “Exit Fee”).

Altisource Portfolio Solutions S.A.

and its subsidiaries, subject to the applicable exclusions in the Amended Credit Agreement, are guarantors on the SSTL (collectively, the “Guarantors”).

Effective June 1, 2023, the administrative agent and collateral agent of the Amended Credit Agreement changed to Wilmington Trust, N.A.

The maturity date of the SSTL under the Amended Credit Agreement is April 30, 2025.

Since the aggregate amount of par paydowns on the SSTL made prior to February 14, 2024 using proceeds from issuances of equity interests or from junior indebtedness (“Aggregate Paydowns”) was equal to or greater than $ 30 million, the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026.

Such extension is conditioned upon the Company’s payment of a 2 % payment-in-kind extension fee on or before April 30, 2025 and subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date.

All amounts outstanding under the SSTL will become due on the earlier of (i) the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Amended Credit Agreement;

other capitalized terms, unless defined herein, are defined in the Amended Credit Agreement) or as otherwise provided in the Amended Credit Agreement upon the occurrence of any event of default.

There are no mandatory repayments of the SSTL, except as set forth herein, until the April 30, 2025 maturity when the balance is due.

If the maturity date is extended to April 30, 2026, the Company is required to make mandatory repayments of $ 5.2 million in the first quarter of 2026 with the remaining balance due at the April 2026 maturity.

In addition to the scheduled principal payments, subject to certain exceptions, the SSTL is subject to mandatory prepayment upon issuances of debt, certain casualty and condemnation events and sales of assets, as well as 50 % of Consolidated Excess Cash Flow, as calculated in accordance with the provisions of the Amended Credit Agreement.

Altisource may incur incremental indebtedness under the Amended Credit Agreement from one or more incremental lenders, which may include existing lenders, in an aggregate incremental principal amount not to exceed $ 50 million, subject to certain conditions set forth in the Amended Credit Agreement.

The lenders have no obligation to provide any incremental indebtedness.

Through March 29, 2023, the SSTL’s interest rate was the Adjusted Eurodollar Rate plus 4.00 %.

Beginning March 30, 2023, the SSTL bears interest at rates based upon, at our option, the Secured Overnight Financing Rate (“SOFR”) or the Base Rate, as defined in the Amended Credit Agreement.

SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 5.00 % payable in cash plus a payable in kind (“PIK”) component.

Base Rate-based term loans bear interest at a rate per

and its subsidiaries, subject to applicable exclusions in the New Facility credit agreement (the “New Facility Credit Agreement”), are guarantors on the New Facility (collectively, the “Guarantors”).

We evaluated the Debt Exchange Transaction in accordance with ASC 470-60 Troubled Debt Restructuring .

The evaluation for troubled debt restructuring includes assessing both qualitative and quantitative factors to determine whether the creditor granted a concession and whether the Company is experiencing financial difficulties.

Our quantitative analysis consisted of comparing the effective borrowing rate on the New Facility to the effective borrowing rate on the SSTL immediately before the Debt Exchange Transaction.

For purposes of ASC 470-60 Troubled Debt Restructuring , the Company concluded that (1) the lenders granted the Company a concession by reducing the effective borrowing rate on the debt and (2) the Company was experiencing financial difficulties.

As a result, the Debt Exchange Transaction was accounted for as a troubled debt restructuring.

The carrying value of the New Facility was determined as follows:

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

annum equal to the Base Rate plus 4.00 % payable in cash plus a PIK component.

The PIK component of the interest rate was subject to adjustment based on the amount of Aggregate Paydowns.

Since Aggregate Paydowns were $ 20 million in the first quarter of 2023 and an additional $ 10 million in the third quarter of 2023, the PIK component was 4.50 % for the period March 30, 2023 through June 30, 2023 and 3.75 % for periods thereafter.

The interest rate as of December 31, 2024, including the PIK component, was 13.45 %.

If, as of the end of any calendar quarter, (i) the amount of unencumbered cash and cash equivalents of Altisource S.à r.l.

and its direct and indirect subsidiaries on a consolidated basis plus (ii) the undrawn commitment amount under the Revolver is, or is forecast as of the end of the immediately subsequent calendar quarter to be, less than $ 35 million, then up to 2.00 % in interest otherwise payable in cash in the following quarter may be paid in kind at the Company’s election.

The payment of all amounts owing by Altisource under the Amended Credit Agreement is guaranteed by the Guarantors and is secured by a pledge of all equity interests of certain subsidiaries of Altisource, as well as a lien on substantially all of the assets of Altisource S.à r.l.

and the Guarantors, subject to certain exceptions.

The Amended Credit Agreement includes covenants that restrict or limit, among other things, our ability, subject to certain exceptions and baskets, to incur indebtedness;

incur liens on our assets;

sell, transfer or dispose of assets;

make Restricted Junior Payments including share repurchases, dividends and repayment of junior indebtedness;

make investments;

dispose of equity interests of any Material Subsidiaries;

engage in a line of business substantially different than existing businesses and businesses reasonably related, complimentary or ancillary thereto;

amend material debt agreements or other material contracts;

engage in certain transactions with affiliates;

enter into sale/leaseback transactions;

grant negative pledges or agree to such other restrictions relating to subsidiary dividends and distributions;

make changes to our fiscal year;

and engage in mergers and consolidations.

The Amended Credit Agreement contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Credit Agreement within five days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described in the Amended Credit Agreement, (iv) failure to pay principal or interest on any other debt that equals or exceeds $ 5 million when due, (v) default on any other debt that equals or exceeds $ 5 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events, (viii) entry by a court of one or more judgments against us in an aggregate amount in excess of $ 10 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (ix) the occurrence of certain ERISA events, (x) the failure of certain Loan Documents to be in full force and effect and (xi) failure to comply in any material respects with the terms of the Penny Warrants (as defined below) or the purchase agreement with respect to the Penny Warrants.

If any event of default occurs and is not cured within applicable grace periods set forth in the Amended Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated.

The lenders under the Amended Credit Agreement received Penny 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 12 for additional information).

The fair value of the Penny Warrants on February 14, 2023 was $ 8.1 million and was recorded as an increase in debt discount.

In connection with Amendment No.

2 to the Credit Agreement in 2023, 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 to the Credit Agreement, the Company paid $ 3.4 million to advisors and recorded these payments as other expense in the consolidated statements of operations and comprehensive loss.

Deer Park Road Management Company, L.P.

(together with its affiliates and managed funds, “Deer Park”), a related party, owns approximately 16 % of Altisource’s common stock as of December 31, 2024 and 2023, and $ 42.1 million and $ 40.6 million of Altisource debt under the Amended Credit Agreement as of December 31, 2024 and 2023, respectively.

(in thousands) Total

SSTL immediately before the Debt Exchange Transaction $ 232,800

Unamortized debt issuance costs and discount immediately before the Debt Exchange Transaction ( 1,296 )

fair value of equity issued to the SSTL lenders ( 45,370 )

fees paid to third parties on behalf of the SSTL lenders ( 1,145 )

Carrying value of the New Facility $ 184,989

Comprised of:

Par value of the New Facility $ 160,000

Premium 26,285

Unamortized debt issuance costs and discount ( 1,296 )

Carrying value of the New Facility $ 184,989

In connection with the Debt Exchange Transaction, the Company also paid $ 3.6 million to advisors and others and recorded these payments as other expense in the consolidated statements of operations and comprehensive (loss) income.

The maturity date for $ 157.8 million of the New Facility is April 30, 2030 and the maturity date for $ 1.4 million of the New Facility is January 15, 2029.

The New Facility requires mandatory prepayments of the term loans, subject to customary exceptions, as follows:

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

All mandatory and voluntary prepayments under the New Facility are allocated between the New Debt and the Exit Fee on a pro rata basis.

All amounts outstanding under the New Facility 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 New Facility credit agreement;

other capitalized terms, unless defined herein, are defined in the New Facility credit agreement) or as otherwise provided in the New Facility credit agreement upon the occurrence of any event of default.

The New Debt bears interest at rates based upon, at our option, the Secured Overnight Financing Rate (“SOFR”) or the Base Rate, as defined in the New Facility credit agreement.

SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 6.50 % (with a 3.50 % SOFR floor) payable in cash.

Base Rate-based term loans bear interest at a rate per annum equal to the Base Rate plus 5.50 % payable in cash.

The interest rate on the SSTL in 2024 was SOFR plus 5.00 % payable in cash plus 3.75 % payable in kind.

The interest rate as of December 31, 2025 was 10.60 %.

The payment of all amounts owing by the Borrower under the New Facility credit agreement is guaranteed by the Guarantors and is secured by a lien on substantially all of the assets of the Borrower, Altisource Portfolio Solutions S.A.

and the other Guarantors, subject to certain exceptions.

The liens securing the New Facility are junior to the liens securing the Super Senior Facility (defined below) pursuant to, and as set forth in, an intercreditor agreement.

The New Facility Credit Agreement contains representations, warranties, covenants, term and conditions customary for transactions of this type.

This include covenants limiting Altisource, the Borrower and its subsidiaries, subject to certain exceptions and baskets, to (i) incur indebtedness, (ii) incur liens on its assets, (iii) agree to additional negative pledges, (iv) make Restricted Junior Payments (as defined in the New Facility Credit Agreement), (v) pay dividends or distribute assets, (vi) make investments, (vii) enter into any transaction of merger or consolidation, liquidate, wind-up or dissolve, or convey any part of its business, assets or property, or acquire the business, property or assets of another person, (viii) dispose of the equity interests of any Significant Subsidiaries, (ix) enter into sale and leaseback transactions, (x) enter into certain transactions with shareholders and affiliates, (xi) engage in a line of business substantially different than existing business and businesses

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

reasonably related, complementary or ancillary thereto, (xii) modify the terms of certain indebtedness, (xiii) modify the terms of its organizational documents, (xiv) change its fiscal year, and (xv) enter into any transactions undertaken in connection with a Liability Management Transaction (as defined in the New Facility Credit Agreement).

The New Facility contains certain events of default including (i) failure to pay (x) principal when due or (y) interest or any other amount owing on any other obligation under the New Facility Credit Agreement within 5 days of becoming due, (ii) material incorrectness of representations and warranties when made, (iii) breach of certain other covenants, subject to cure periods described therein, (iv) failure to pay principal or interest on any other debt that equals or exceeds $ 10 million when due, (v) default on any other debt that equals or exceeds $ 10 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (vi) bankruptcy and insolvency events with respect to Altisource Portfolio Solutions S.A., Borrower or any Material Subsidiary (as defined in the New Facility Credit Agreement), (vii) entry by a court of one or more judgments against Altisource, Borrower or any Material Subsidiary in an amount in excess of $ 15 million that remain undischarged, unvacated, unbonded or unstayed for a certain number of days after the entry thereof, (viii) the occurrence of certain ERISA events, (ix) occurrence of a Change in Control, (x) the failure of certain Loan Documents (as defined in the New Facility Credit Agreement) to be in full force and effect or Altisource or any Guarantor challenges the validity of any such Loan Document, (xi) the termination of certain material contracts and (xii) failure to comply in any material respects with the terms of the Shareholder Warrants or the Warrant Agreement.

If any event of default occurs and is not cured within applicable grace periods set forth in the New Facility Credit Agreement or waived, all loans and other obligations could become due and immediately payable.

Deer Park Road Management Company, LP (together with its affiliates and managed funds, “Deer Park”), a related party, owned approximately 13 % and 16 % of Altisource’s common stock as of December 31, 2025 and 2024, respectively, and $ 19.8 million and $ 40.6 million of Altisource debt as of December 31, 2025 and 2024, respectively.

An employee of Deer Park is a member of Altisource’s Board of Directors.

In connection with the Amended Credit Agreement, Deer Park received 292 thousand Penny Warrants in 2023.

During the year ended December 31, 2024 and 2023, Deer Park received interest of $ 4.3 million and $ 4.1 million, respectively from the Altisource SSTL.

During the years ended December 31, 2025 and 2024, Deer Park received interest of $ 1.8 million and $ 4.1 million, respectively.

On April 3, 2025, Altisource Portfolio Solutions S.A.

issued Deer Park Stakeholder Warrants to purchase 1.9 million shares of Altisource common stock for $ 9.5998 per share, which was its pro-rata share of the Stakeholder Warrants issued to all holders of common stock, RSUs and Penny Warrants (as defined in Note 12) as of the record date for the issuance of Stakeholder Warrants.

During the first quarter of 2025, UBS Asset Management (Americas) LLC (together with its affiliates and managed funds, “UBS”) and Benefit Street Partners L.L.C.

(together with its affiliates and managed funds, “Benefit Street”) became related parties of Altisource.

As of December 31, 2025, UBS owns approximately 22 % of the common stock and $ 63.7 million of Altisource debt.

During the year ended December 31, 2025, UBS received interest of $ 5.5 million.

On April 3, 2025, Altisource Portfolio Solutions S.A.

issued UBS Stakeholder Warrants to purchase 0.2 million shares of Altisource common stock for $ 9.5998 per share, which was its pro-rata share of the Stakeholder Warrants issued to all holders of common stock, RSUs and Penny Warrants as of the record date for the issuance of Stakeholder Warrants.

As of December 31, 2025, Benefit Street owned approximately 16 % of the common stock and $ 30.8 million of Altisource debt.

During the year ended December 31, 2025, Benefit Street received interest of $ 2.2 million.

On April 3, 2025, Altisource Portfolio Solutions S.A.

issued Benefit Street Stakeholder Warrants to purchase 2.2 million shares of Altisource common stock for $ 9.5998 per share, which was its pro-rata share of the Stakeholder Warrants issued to all holders of common stock, RSUs and Penny Warrants as of the record date for the issuance of Stakeholder Warrants.

For additional information on the Stakeholder Warrants, see Note 12.

As of December 31, 2025, debt issuance and amendment costs were $ 0.9 million, net of $ 9.1 million of accumulated amortization.

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

Super Senior Credit Facility

On February 19, 2025, Altisource Portfolio Solutions S.A.

and its wholly-owned subsidiary, Altisource S.a r.l., entered into agreements with 100% of the lenders under the Company’s senior secured term loans (the “Lenders”).

Under these agreements,

and the Borrower also entered into a $ 12.5 million super senior credit facility (the “Super Senior Facility”) to fund transaction costs related to the Debt Exchange Transactions (defined above) and for general corporate purposes.

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

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

Beginning with the fiscal year ending December 31, 2025, the lesser of (a) 75 % of the aggregate Consolidated Excess Cash Flow (as defined in the Super Senior Facility credit agreement (the “Super Senior Credit Agreement”)) for the most recently ended fiscal year of the Company for which financial statements have been delivered and (b) such amount which, immediately

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

the Lenders exchanged the Company’s senior secured term loans with an outstanding balance of $ 232.8 million for a $ 160.0 million new first lien loan (the “New Facility”) and 58.2 million common shares of Altisource (the “Debt Exchange Shares”).

The New Facility is comprised of a $ 110.0 million interest-bearing loan (the “New Debt”) and a $ 50.0 million non-interest-bearing exit fee (the “Exit Fee”).

See Note 24, Subsequent Events.

On June 22, 2021 Altisource S.à r.l, a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with STS Master Fund, Ltd.

(“STS”) (the “Revolver”).

STS is an investment fund managed by Deer Park.

The Revolver was amended effective February 14, 2023 (the “Amended Revolver”).

Under the terms of the Amended Revolver, STS will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans at any time.

The Amended Revolver provides Altisource the ability to borrow a maximum amount of $ 15.0 million.

Amounts that are repaid may be re-borrowed in accordance with the limitations set forth below.

The maturity date of the Amended Revolver coincides with the maturity date of the SSTL under the Amended Credit Agreement, as it may be extended.

The outstanding balance on the Amended Revolver is due and payable on such maturity date.

Borrowings under the Amended Revolver bear interest of 10.00 % per annum in cash and 3.00 % per annum PIK and are payable quarterly on the last business day of each March, June, September and December.

In connection with the Amended Revolver, Altisource is required to pay a usage fee equal to $ 0.75 million at the initial extension of credit pursuant to the Amended Revolver.

Altisource’s obligations under the Amended Revolver are secured by a first-priority lien on substantially all of the assets of the Company, which lien will be pari passu with liens securing the SSTL under the Amended Credit Agreement.

The Amended Revolver contains additional representations, warranties, covenants, terms and conditions customary for transactions of this type, that restrict or limit, among other things, our ability to use the proceeds of credit only for general corporate purposes.

The Amended Revolver contains certain events of default including (i) failure to pay principal when due or interest or any other amount owing on any other obligation under the Amended Revolver within three business days of becoming due, (ii) failure to perform or observe any material provisions of the Amended Revolver Documents to be performed or complied with and such failure continues for a period of 30 days after written notice is given by the Lender to the Borrower, (iii) material incorrectness of representations and warranties when made, (iv) default on any other debt that equals or exceeds $ 40.0 million that causes, or gives the holder or holders of such debt the ability to cause, an acceleration of such debt, (v) entry by a court of one or more judgments against us in an aggregate amount in excess of $ 40.0 million that remain unbonded, undischarged or unstayed for a certain number of days after the entry thereof, (vi) occurrence of a Change of Control, (vii) bankruptcy and insolvency events.

If any event of default occurs and is not cured within applicable grace periods set forth in the Amended Revolver or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated.

As of December 31, 2024 and 2023, there was no outstanding debt under the Amended Revolver.

As of December 31, 2024 debt issuance costs were less than $ 0.1 million, net of $ 0.5 million of accumulated amortization.

As of December 31, 2023 debt issuance costs were $ 0.2 million, net of $ 0.4 million of accumulated amortization.

Debt issuance costs for the Amended Revolver and Revolver are included in other assets in the accompanying consolidated balance sheet.

On February 19, 2025, Altisource entered into an agreement to terminate the Amended Revolver.

See Note 24, Subsequent Events.

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

The payment of all amounts owing by the Borrower under the Super Senior Credit Agreement is guaranteed by the Guarantors and is secured by a lien on substantially all of the assets of Altisource Portfolio Solutions S.A.

and the Guarantors, subject to certain exceptions.

The liens securing the Super Senior Facility are senior to the liens securing the New Facility pursuant to, and as set forth in, the Super Senior Intercreditor Agreement.

The Super Senior Credit Agreement contains representations, warranties, covenants, terms and conditions customary for transactions of this type.

These include covenants limiting Altisource Portfolio Solutions S.A., the Borrower and their subsidiaries, subject to certain exceptions and baskets, to (i) incur indebtedness, (ii) incur liens on its assets, (iii) agree to additional negative pledges, (iv) make Restricted Junior Payments (as defined in the Super Senior Credit Agreement), (v) pay dividends or distribute assets, (vi) make investments, (vii) enter into any transaction of merger or consolidation, liquidate, wind-up or dissolve, or convey any part of its business, assets or property, or acquire the business, property or assets of another person, (viii) dispose of the equity interests of any Significant Subsidiaries, (ix) enter into sale and leaseback transactions, (x) enter into certain transactions with shareholders and affiliates, (xi) engage in a line of business substantially different than existing business and businesses reasonably related, complementary or ancillary thereto, (xii) modify the terms of certain indebtedness, (xiii) modify the terms of its organizational documents, (xiv) change its fiscal year, and (xv) enter into any transactions undertaken in connection with a Liability Management Transaction (as defined in the Super Senior Credit Agreement).

The Super Senior Credit Agreement also requires that the Borrower maintain minimum daily liquidity of not less than the lesser of (a) $ 12.5 million and (b) the aggregate principal amount of Term Loans (as defined in the Super Senior Credit Agreement) under the Super Senior Facility outstanding on such date.

The Super Senior Credit Agreement requires mandatory prepayments of the term loans, subject to customary exceptions, as follows:

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

All amounts outstanding under the Super Senior Credit Agreement will become due on the earlier of (i) the maturity date, and (ii) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the Required Lenders (as defined in the Super Senior Credit Agreement;

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

The Super Senior Facility bears interest at rates based upon, at our option, the SOFR or the Base Rate, as defined in the Super Senior Credit Agreement.

SOFR-based term loans bear interest at a rate per annum equal to SOFR plus 6.50 % (with a 3.50 % SOFR floor) payable in cash.

Base Rate-based term loans bear interest at a rate per annum equal to the Base Rate plus 5.50 % payable in cash.

The interest rate as of December 31, 2025 was 10.60 %.

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

On June 22, 2021 Altisource S.à r.l;

a subsidiary of Altisource Portfolio Solutions S.A., entered into a revolving credit facility with STS Master Fund, Ltd.

(“STS”) (the “Revolver”).

STS is an investment fund managed by Deer Park.

The Revolver was amended effective February 14, 2023.

On February 19, 2025, Altisource entered into an agreement to terminate the $ 15.0 million Revolver with STS.

As of December 31, 2024, the Company did not have any borrowings outstanding under the Revolver.

NOTE 12 — WARRANTS

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

The number of Penny Warrant Shares was subject to reduction based on the amount of Aggregate Paydowns.

During 2023, the Company made $ 30 million of Aggregate Paydowns.

Since Aggregate Paydowns were equal to or greater than $ 30 million, the number of Warrant Shares was reduced to 1,612,705 .

Penny Warrants

On February 14, 2023, the lenders under the Amended Credit Agreement (see Note 11 for additional information) received warrants (the “Penny Warrants”) to purchase 402,981 shares of Altisource common stock (the “Penny Warrant Shares”).

The number of Penny Warrant Shares was subject to reduction based on the amount of Aggregate Paydowns (as defined in the Amended Credit Agreement).

Based on Aggregate Paydowns made during 2023, the number of Penny Warrant Shares was reduced to 201,588 .

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

3 unchanged sentences

Outstanding as of December 31, 2024 189,483

The Penny Warrants may be exercised at any time on and after February 14, 2024 and prior to their expiration date.

The Penny Warrants are exercisable on a cashless basis and are subject to customary anti-dilution provisions.

The Penny Warrants, if not previously exercised or terminated, will be automatically exercised on May 22, 2027.

The Penny Warrants were subject to a lock-up agreement, subject to customary exceptions, which expired on February 16, 2024.

The Penny Warrants are free standing financial instruments that are legally detachable and separately exercisable from the term loans under the Amended Credit Agreement.

At inception, the Penny Warrants were not considered to be indexed to the Company’s stock because the number of Penny Warrant Shares varied based on Aggregate Paydowns.

Pursuant to ASC 815-40, Derivatives and Hedging–Contracts in Entity’s Own Equity, the outstanding Penny Warrants were recognized as a warrant liability on the balance sheet based on their inception date fair value and subsequently re-measured at each reporting period with changes recorded as a component of other income (expense) in the statement of operations.

On September 18, 2023, the Company reached the $ 30 million in Aggregate Paydowns threshold and the number of Penny Warrant Shares was no longer variable.

As a result, the Penny Warrants were considered to be indexed to the Company’s stock and the warrant liability was reclassified to equity.

The fair value of the warrant liability was based on the number of Penny 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:

Penny Warrant Liability Penny Warrant Shares based on Aggregate Paydowns Expected Penny Warrant Shares that will be exercisable on February 14, 2024 Fair Value per Penny Warrant Share Fair Value

(in thousands)

Fair value at initial measurement date of February 14, 2023 3,223,851 1,612,705 $ 5.02 $ 8,096

Gain on change in fair value of warrant liability ( 1,145 )

Fair value at September 18, 2023 1,612,705 1,612,705 $ 4.31 $ 6,951

During the year ended December 31, 2023, the Company recorded a gain on changes in fair value of warrant liability of $ 1.1 million (no comparative amount for the year ended December 31, 2024).

On February 19, 2025, all outstanding Penny Warrants were exercised.

See Note 24, Subsequent Events.

On February 18, 2025, the Company’s shareholders also approved proposals to enable, among other things, an issuance of warrants to purchase approximately 114.5 million shares of common stock for $ 1.20 per share to record and beneficial holders of the following securities of Altisource Portfolio Solutions S.A.

(collectively, “Stakeholders”):

(i) shares of common stock, (ii) restricted share units (“RSUs”), and (iii) Penny Warrants, in each case, as of 5:00 p.m., New York City time, on February 14, 2025.

See Note 24, Subsequent Events.

Exercised ( 189,483 )

Outstanding as of December 31, 2025 —

The exercise price per share of common stock under each Penny Warrant was equal to $ 0.01 .

As of December 31, 2025, no Penny Warrant Shares remain outstanding.

Stakeholder Warrants

On April 3, 2025, the Company issued 70.5 million warrants to purchase approximately 14.3 million shares of Altisource common stock for $ 9.5998 per share (the “Stakeholder Warrants”).

The distribution of Stakeholder Warrants was contingent upon, among other things, approval of the issuance by the Company’s shareholders and the consummation of the Debt Exchange Transaction (such conditions, collectively, the “Distribution Conditions”).

The Distribution Conditions were satisfied during the quarter ended March 31, 2025.

Fifty percent of the Stakeholder Warrants will expire on April 2, 2029 and require settlement through the cash payment to the Company of the exercise price of such Stakeholder Warrant (“Cash Exercise Stakeholder Warrants”).

Fifty percent of the Stakeholder Warrants will expire on April 30, 2032 and require settlement through the forfeiture of shares of common stock to the Company equal to the exercise price of such Stakeholder Warrants (“Net Settle Stakeholder Warrants”).

Each Stakeholder Warrant is exercisable for 0.20313 shares of our common stock, subject to adjustment in accordance with the terms of the Stakeholder Warrants.

The Stakeholder Warrants became exercisable pursuant to their term on July 28, 2025.

The Stakeholder Warrants are listed on the NASDAQ Global Select Market and began trading on May 7, 2025.

The Cash Exercise Stakeholder Warrants trade under the symbol “ASPSZ” and the Net Settle Stakeholder Warrants trade under the symbol “ASPSW”.

For purposes of recording the issuance of the Stakeholder Warrants during the three months ended March 31, 2025, the fair values of the Cash Exercise Stakeholder Warrants and the Net Settle Stakeholder Warrants were determined using the Black-Scholes option pricing model.

The following table summarizes the fair value of the Stakeholder Warrants and the assumptions used to determine the fair value:

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Cash Exercise Stakeholder Warrants Net Settle Stakeholder Warrants

Risk-free interest rate (%) 4.29 % 4.42 %

Expected stock price volatility (%) 57.50 % 57.50 %

Expected dividend yield 0.00 % 0.00 %

Expected option life (in years) 4.12 7.19

Fair value per Stakeholder Warrant $ 0.47 $ 0.68

The Stakeholder Warrants are indexed to the common stock and are classified as equity under ASC 815 Derivatives and Hedging , resulting in a $ 40.5 million increase in Additional paid-in capital.

The distribution of the Stakeholder Warrants are non-reciprocal pro rata distributions and are accounted for as a dividend.

Because the Company has negative retained earnings, the Company recorded the dividend as a $ 40.5 million reduction to Additional paid-in capital.

Since the transaction is accounted for as both an increase and a decrease in Additional paid-in capital, the net result is zero and is not reflected in the Consolidated Statements of Equity (Deficit).

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

Cash Exercise Stakeholder Warrants Cash Exercise Stakeholder Warrant Shares Net Settle Stakeholder Warrants Net Settle Stakeholder Warrant Shares Total Stakeholder Warrants Total Stakeholder Warrant Shares

35,230,503 7,156,372 35,230,503 7,156,372 70,461,006 14,312,744

The following table summarizes the activity related to Stakeholder Warrants:

Cash Exercise Stakeholder Warrants Net Settle Stakeholder Warrants

Outstanding at December 31, 2024 — —

Granted 35,230,503 35,230,503

Exercised 16,551 61,123

Outstanding at December 31, 2025 35,213,952 35,169,380

NOTE 13 — OTHER NON-CURRENT LIABILITIES

6 unchanged sentences

Total $ 3,697 $ 20,016

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 14 — FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

6 unchanged sentences

Restricted cash 3,890 3,890 — — 2,889 2,889 — —

Short-term receivable — — — — 3,201 — — 3,201

Revolving loan agreement 1,000 — — 1,000 — — — —

Senior secured term loans 159,175 — 113,810 — 232,800 — 128,040 —

Super senior term loan 12,391 — — 12,391 — — — —

Revolving loan agreement — — — — 1,000 — — 1,000

Fair Value Measurements on a Recurring Basis

Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid nature of these instruments and are measured using Level 1 inputs.

The fair value of our SSTL is based on quoted market prices.

The fair value of our senior secured term loan is based on quoted mark prices.

Based on the frequency of trading, we do not believe that there is an active market for our debt.

Therefore, the quoted prices are considered Level 2 inputs.

Our Revolving Loan Agreement was measured using Level 3 inputs based on the present value of the future payments.

As quoted market price is not available and there is no trading, we believe that the contractual interest rate represents the market rate at the measurement date and therefore the fair value equals the Revolving Loan Agreement book value.

In connection with the sale of Pointillist on December 1, 2021, $ 3.5 million was deposited into an escrow account to satisfy certain indemnification claims that may arise on or prior to the first anniversary of the sale closing.

The deposit was recorded as a short-term receivable.

Altisource received the indemnity escrow, net of $ 0.7 million of claims, in December 2024.

We measure short-term receivables without a stated interest rate based on the present value of the future payments.

Our Super Senior Facility and Revolving Loan Agreement were measured using Level 3 inputs based on the present value of the future payments.

As quoted market prices are not available and there is no trading, we believe that the contractual interest rates represent the market rate at the measurement date and therefore the fair value equals the book value.

There were no transfers between different levels during the periods presented.

4 unchanged sentences

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.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 15 — SHAREHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

1 unchanged sentence

As of December 31, 2024, we had 100.0 million shares authorized, 3.7 million shares issued and 3.4 million shares of common stock outstanding.

The holders of shares of Altisource common stock generally are entitled to one vote for each share on all matters voted on by shareholders, and the holders of such shares generally will possess all voting power.

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

See Note 24, Subsequent Events.

On February 19, 2025, the Company issued 58.2 million shares of common stock to lenders under the SSTL.

See Note 24, Subsequent Events.

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

On February 19, 2025, the Company issued 7.3 million Debt Exchange Shares to lenders in connection with the Debt Exchange Transaction.

See Note 10, Long-Term Debt.

Pursuant to the terms of the Exchange Agreement, dated February 19, 2025, by and among the Borrower and Altisource Portfolio Solutions S.A., on the one hand, and the Lenders, on the other hand, with limited exceptions, the Lenders were not, among other things, permitted to sell, offer to sell, grant any option to purchase or otherwise dispose of any Debt Exchange Shares, without the prior written consent of Altisource Portfolio Solutions S.A., until September 17, 2025.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Equity Incentive Plan

Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares, RSUs and other awards, or a combination of any of the above.

Our 2009 Equity Incentive Plan (the “Plan”) provides for various types of equity awards, including stock options, stock appreciation rights, stock purchase rights, restricted shares, restricted stock units (“RSUs”) and other awards, or a combination of any of the above.

Under the Plan, we may grant up to 2.0 million Altisource share-based awards to officers, directors, employees and to employees of our affiliates.

1 unchanged sentence

Expired and forfeited awards are available for reissuance.

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

See Note 24, Subsequent Events.

Share Repurchase Program

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by the 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.

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by our shareholders on May 15, 2018.

Under the program, we are authorized to purchase up to 0.4 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 $ 8.00 per share and a maximum price of $ 200.00 per share, until May 16, 2028.

As of December 31, 2025, approximately 0.4 million shares of common stock remain available for repurchase under the program.

There were no purchases of shares of common stock during the years ended December 31, 2024 and 2023.

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.

In connection with the elimination of the fractional shares resulting from the Share Consolidation, the Company purchased 204 shares of common stock during the second quarter of the year ended December 31, 2025.

There were no other purchases of shares of common stock during the years ended December 31, 2025 and 2024.

Under the New Facility and the Super Senior Facility, we are not permitted to repurchase shares except under limited circumstances.

Share-Based Compensation

We issue share-based awards in the form of stock options, restricted shares and RSUs for certain employees, officers and directors.

We issue share-based awards in the form of stock options, restricted shares and restricted share units (RSUs) for certain employees, officers and directors.

We recognized share-based compensation expense of $ 4.3 million and $ 4.7 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, estimated unrecognized compensation costs related to share-based awards amounted to $ 3.1 million, which we expect to recognize over a weighted average remaining requisite service period of approximately 1.40 years.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Stock Options

19 unchanged sentences

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

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.

12 unchanged sentences

Exercisable as of December 31, 2025 36,175 195.15 2.33 —

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

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

12 unchanged sentences

3,121 0.73 267.41 1,751 0.79 272.33

40,319 36,175

______________________________________

(1) These options contain market-based and performance-based components as described above.

2 unchanged sentences

Vesting price Ordinary performance Extraordinary performance

$ 50.01 — $ 60.00

$ 60.01 — $ 70.00

$ 80.01 — $ 90.00

$ 90.01 — $ 100.00

Over $ 190.00

Total 1,859 2,229

1 unchanged sentence

Other Share-Based Awards

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

The Company’s other share-based and similar types of awards are comprised of restricted shares and RSUs.

The restricted shares and RSUs are comprised of a combination of service-based awards, performance-based awards, market-based awards and performance and market-based awards.

The restricted shares and RSUs are comprised of a combination of service-based awards, performance-based awards and performance and market-based awards.

Service-Based Awards.

5 unchanged sentences

The number of performance-based restricted shares and RSUs 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 RSU award for certain awards.

If the performance criteria achieved is below certain thresholds, the award is canceled.

A total of 29 thousand performance-based awards were outstanding as of December 31, 2025.

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 December 31, 2024.

Performance-Based and Market-Based Awards.

These awards generally vest if certain specific financial measures are achieved and if certain specific market conditions are achieved.

If the performance criteria 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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Monte Carlo simulation model.

The Company estimates the grant date fair value of these awards using a Monte Carlo simulation model.

A total of 29 thousand performance-based and market-based awards were outstanding as of December 31, 2025.

The Company granted 964 thousand RSUs (at a weighted average grant date fair value of $ 7.62 per share) during the year ended December 31, 2025.

These grants included 88 thousand performance-based awards and 88 thousand awards that include both a performance condition and a market condition.

These grants included approximately 0.6 million of RSUs granted to senior management in connection with the Debt Exchange Transaction, 12 thousand performance-based awards and 12 thousand awards that include both a performance condition and a market condition.

The Company granted 216 thousand RSUs (at a weighted average grant date fair value of $ 19.12 per share) during the year ended December 31, 2024.

13 unchanged sentences

Fair value $ 17.04 $ —

On February 13, 2025, the Company granted 4.6 million RSUs (at a weighted average grant date fair value of $ 1.06 per share) to senior management in connection with the Transactions (defined in Note 24) under the Plan.

See Note 24, Subsequent Events.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

NOTE 16 — REVENUE

5 unchanged sentences

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 loss to arrive at net loss attributable to Altisource (see Note 2).

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

Lenders One’s earnings are included in revenue and reduced from net income (loss) to arrive at net income (loss) attributable to Altisource (see Note 2).

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

The components of revenue were as follows for the years ended December 31:

4 unchanged sentences

Total $ 170,975 $ 160,134

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Disaggregation of Revenue

Disaggregation of total revenue by segment and major source was as follows for the years ended December 31:

(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

$ 109,198 $ 10,741 $ 9,011 $ 128,950

29,940 663 581 31,184

Total revenue

$ 139,138 $ 11,404 $ 9,592 $ 160,134

(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 $ 95,643 $ 12,136 $ 7,688 $ 115,467

Origination 28,379 635 585 29,599

(in thousands) Servicer and Real Estate Origination Total revenue Servicer and Real Estate Origination Total revenue

Revenue recognized when services are performed or assets are sold $ 116,630 $ 34,777 $ 151,407 $ 109,198 $ 29,940 $ 139,138

Revenue related to technology platforms and professional services 9,427 736 10,163 10,741 663 11,404

Reimbursable expenses revenue 8,780 625 9,405 9,011 581 9,592

Total revenue

5 unchanged sentences

Total service revenue $ 161,257 $ 150,354

The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as unbilled revenue on our condensed consolidated balance sheets), and customer advances (presented as deferred revenue on our condensed consolidated balance sheets), where applicable.

The timing of revenue recognition, billings, and cash collections results in billed, and unbilled accounts receivable (presented as accounts receivable on our consolidated balance sheets), and customer advances (presented as deferred revenue on our consolidated balance sheets), where applicable.

The over-time revenue recognition model consists primarily of the following services for which revenue is recognized over the period during which services are provided:

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

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

• For software-as-a-service (“SaaS”) based technology to manage REO, we recognize revenue over the estimated average number of months the REO properties are on the platform before they are sold

• For vendor management transactions, revenue is recognized over the period during which services are provided

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

• For residential real estate renovation services, we recognize revenue over time as work is completed, measured by the percentage of work performed relative to the total project.

Field inspections by qualified professionals form a fundamental part of the Company’s assessment, measure and documentation of work completed on real estate renovations.

As of December 31, 2024, the value of unfulfilled orders amounted to $ 4.1 million, with the majority of this backlog expected to be completed and recognized as revenue within the first quarter of 2025 and the remainder anticipated to be completed in the second quarter of 2025.

As of December 31, 2025, the value of unfulfilled renovation orders amounted to $ 3.7 million, with the majority of this backlog expected to be completed and recognized as revenue within the first quarter of 2026 and the remainder anticipated to be completed in the second quarter of 2026

• We recognize membership fees from Lender One members ratably over the term of membership

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

• For vendor management oversight SaaS, we recognize revenue over the period during which we perform the services.

Transactions with Related Parties

1 unchanged sentence

Aldridge Pite provides eviction and other real estate related services to the Company and pays for the use of certain of the Company’s technology in connection with providing these services.

The Company recognized $ 0.1 million and less than $ 0.1 million for the years ended December 31, 2024 and 2023, respectively, of service revenue relating to services provided to Aldridge Pite.

The Company recognized service revenue of $ 0.1 million and $ 0.1 million for the years ended December 31, 2025 and 2024, respectively, relating to services provided to Aldridge Pite.

Contract Balances

1 unchanged sentence

Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying consolidated balance sheets.

The deferred revenue opening and closing balances are presented below for the years ended December 31:

The deferred revenue opening and closing balances were as follows for the years ended December 31:

(in thousands) 2025 2024

14 unchanged sentences

Transactions with Related Parties

The Company recognized $ 1.0 million and $ 0.7 million for the years ended December 31, 2024 and 2023, respectively, of cost of revenue relating to services received from Aldridge Pite.

As of December 31, 2024, the Company had no payable to Aldridge Pite .

The Company recognized cost of revenue of $ 1.1 million and $ 1.0 million for the years ended December 31, 2025 and 2024, respectively, relating to services received from Aldridge Pite.

As of December 31, 2025, the Company had no amounts payable to Aldridge Pite .

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

29 unchanged sentences

Notes to Consolidated Financial Statements ( Continued )

The income tax provision consists of the following for the years ended December 31:

The income tax benefit (provision) consists of the following for the years ended December 31:

(in thousands) 2025 2024

Foreign - U.S.

federal $ ( 313 ) $ ( 1,014 )

Foreign - U.S.

state 72 ( 206 )

( 129 ) ( 241 )

Foreign - non-U.S.

1 unchanged sentence

14,881 ( 3,265 )

Domestic - Luxembourg $ 387 $ —

Foreign - U.S.

federal $ 458 $ 257

Foreign - non-U.S.

Domestic - Luxembourg $ 387 $ —

Foreign - U.S.

state ( 117 ) ( 11 )

Foreign - non-U.S.

15,104 ( 2,681 )

Income tax provision $ ( 2,581 ) $ ( 3,714 )

Income tax benefit (provision) $ 16,074 $ ( 2,581 )

On June 30, 2024, we exited the Uruguay free trade zone and, as a result, no longer benefit from the Uruguay tax holiday.

The impact of this tax holiday decreased foreign taxes by $ 0.1 million (less than $ 0.01 per diluted share) for both the years ended December 31, 2024 and 2023.

The impact of this tax holiday decreased foreign taxes by $ 0.1 million (less than $ 0.01 , per diluted share) for the year ended December 31 2024.

The Company accounts for certain income and expense items differently for financial reporting purposes and income tax purposes.

5 unchanged sentences

Net operating loss carryforwards $ 498,892 $ 527,180

federal and state tax credits 622 228

Other non-U.S.

2 unchanged sentences

Accrued expenses 2,461 2,308

Capital loss carryforward

federal and state tax credits 482 622

Depreciation 8 14

1 unchanged sentence

Intangible assets ( 8,755 ) ( 9,141 )

Other non-U.S.

deferred tax liability ( 15 ) ( 433 )

Other ( 278 ) ( 611 )

2 unchanged sentences

Non-current deferred tax liabilities, net $ ( 2,299 ) $ ( 3,399 )

A valuation allowance is provided when it is deemed more likely than not that some portion or all of a deferred tax asset will not be realized.

In determining whether a valuation allowance is needed requires an extensive analysis of positive and negative evidence regarding realization of the deferred tax assets and, inherent in that, an assessment of the likelihood of sufficient future taxable income.

When there is a cumulative pretax loss for financial reporting for the current and two preceding years (i.e., a three year cumulative loss), this is a significant element of negative evidence that would be difficult to overcome on a more

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

likely than not or any other basis.

A valuation allowance is provided when it is deemed more likely than not that some portion or all of a deferred tax asset will not be realized.

Therefore, the Company’s valuation allowance was $ 507.3 million and $ 537.4 million as of December 31, 2025 and 2024, respectively.

The Company does not recognize deferred taxes on cumulative earnings of its U.S.

subsidiaries because the Company intends for those earnings to be indefinitely reinvested.

The other non-Luxembourg earnings that are indefinitely reinvested as of December 31, 2024 were approximately $ 0.1 million which, if distributed, would result in no additional tax due.

and certain other non-Luxembourg subsidiaries because the Company intends for those earnings to be indefinitely reinvested.

There are no cumulative earnings in the Company’s U.S.

subsidiaries.

The other non-Luxembourg earnings that are indefinitely reinvested as of December 31, 2025 were approximately $ 0.5 million which, if distributed, would result in additional tax due totaling $ 0.02 million.

The Company had a deferred tax asset of $ 498.9 million as of December 31, 2025 relating to Luxembourg, U.S.

federal, state and foreign net operating losses compared to $ 527.2 million as of December 31, 2024.

As of December 31, 2024 and 2023, a valuation allowance of $ 526.6 million and $ 481.0 million, respectively, has been established related to Luxembourg net operating loss (“NOL”).

As of December 31, 2025 and 2024, a valuation allowance of $ 497.8 million and $ 526.6 million, respectively, has been established related to Luxembourg net operating losses (“NOL”).

The gross amount of net operating losses available for carryover to future years is approximately $ 2,088.7 million as of December 31, 2025 and approximately $ 2,112.5 million as of December 31, 2024.

These losses are scheduled to expire between the years 2026 and 2044.

In addition, the Company had a deferred tax asset of $ 0.8 million as of December 31, 2024 and 2023, relating to state tax credits.

The current year Luxembourg deferred tax asset, and related valuation allowance, include a $ 2.9 million decrease related to a prior year correction of net operating losses.

The correction had no impact on the deferred tax asset reported on the balance sheet or income tax expense on the income statement.

In addition, the Company had a deferred tax asset of $ 0.6 million and $ 0.8 million, respectively, as of December 31, 2025 and 2024 relating to state tax credits.

Some of the state tax credit carryforwards have an indefinite carryforward period.

The effective tax rate differs from the Luxembourg statutory tax rate due to tax rate differences on foreign earnings, increases in uncertain tax positions, state taxes, a decrease in unrecognized tax benefits, tax exempt income primarily from the sale of Pointillist and a valuation allowance against deferred tax assets the Company believes it is more likely than not will not be realized

The effective tax rate differs from the Luxembourg statutory tax rate due to tax rate differences on foreign earnings, changes in uncertain tax positions, state taxes, tax exempt income primarily from the sale of Pointillist and a valuation allowance against deferred tax assets the Company believes it is more likely than not will not be realized.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

The following table reconciles the Luxembourg statutory tax rate to our effective tax rate for the years ended December 31:

(in thousands) 2025 2024

Amount % of Pretax Income Amount % of Pretax Income

Statutory tax rate $ ( 3,377 ) 23.87 % $ ( 8,197 ) 24.94 %

Domestic - Luxembourg:

Nontaxable and nondeductible items (loss on treasury shares) ( 802 ) 5.67 ( 36,991 ) 112.55

Nontaxable and nondeductible items (gain on debt) 1,220 ( 8.62 ) — —

Nontaxable and nondeductible items (intercompany) 3,438 ( 24.30 ) — —

Change in enacted rates 22,208 ( 156.99 ) — —

Change in valuation allowance ( 30,028 ) 212.27 45,615 ( 138.79 )

State tax expense ( 0.18 ) ( 0.33 )

Uncertain tax positions ( 5.02 ) ( 2.98 )

Unrealized losses ( 27.90 ) —

Other 6,953 ( 49.15 ) 79 ( 0.24 )

Foreign tax effects:

Tax rate differences on foreign earnings 414 ( 2.93 ) ( 148 ) 0.45

Tax exempt income

Provision to return

Loss on treasury shares

112.55 160.11

Local statutory accounting differences ( 252 ) 1.78 234 ( 0.71 )

Effect of cross-border tax laws 968 ( 6.84 ) 25 ( 0.08 )

Other 63 ( 0.45 ) ( 98 ) 0.30

United States:

Tax rate differences on foreign earnings 40 ( 0.27 ) ( 95 ) 0.29

Excess tax benefits on share-based payments 458 ( 3.24 ) 419 ( 1.27 )

Change in valuation allowance — — ( 9,168 ) 27.90

Nontaxable and nondeductible items (unrecognized tax loss) — — 9,168 ( 27.90 )

Other ( 42 ) 0.30 43 ( 0.13 )

Other foreign jurisdictions ( 46 ) 0.33 44 ( 0.14 )

Worldwide changes in unrecognized tax benefits ( 17,289 ) 122.22 1,651 ( 5.02 )

Effective tax rate $ ( 16,074 ) 113.65 % $ 2,581 ( 7.85 ) %

4 unchanged sentences

The difference between the cost of treasury shares when acquired and when reissued results in tax deductible losses of $ 3.4 million and $ 26.4 million for the years ended December 31, 2025 and 2024, respectively.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

The following table summarizes changes in unrecognized tax benefits during the years ended December 31:

5 unchanged sentences

Amount of unrecognized tax benefits as of the end of the year $ 2,383 $ 10,240

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate is $ 3.3 million and $ 19.2 million as of December 31, 2025 and 2024, respectively.

1 unchanged sentence

As of December 31, 2025 and 2024, the Company had recorded accrued interest and penalties related to unrecognized tax benefits of $ 1.1 million and $ 9.1 million, respectively.

NOTE 21 — LOSS PER SHARE

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period.

In accordance with ASC 260, Penny Warrants are included in the calculation of weighted average basic and diluted loss per share for the period that they are classified as equity.

For the twelve months ended December 31, 2024, 1.5 million Penny Warrants have been included in the calculation of weighted average basic and diluted loss per share.

Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below.

Basic and diluted loss per share are calculated as follows for the years ended December 31:

During the second quarter of 2025, management concluded that certain of its India tax positions for several years were more likely than not to be sustained based on current quarter developments.

As a result, the Company recognized a net income tax benefit of $ 17.7 million, comprised of a $ 9.6 million reversal of its reserve for uncertain tax positions related to its India operations and a $ 9.0 million reversal of associated accrued interest, partially offset by related Mauritius Income tax expense of $ 0.9 million.

The following table summarizes Income taxes paid (net of refunds received) for the years ended December 31:

(in thousands) 2025 2024

India $ ( 915 ) $ 1,228

United States - federal 640 690

United States - state 84 134

Total income taxes paid, net of refunds received $ ( 13 ) $ 2,053

NOTE 21 — EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share:

is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding for the period.

For the year ended December 31, 2025, diluted earnings (loss) per share reflects the assumed conversion of all dilutive securities using the treasury stock method.

For the year ended December 31, 2025 diluted net earnings (loss) per share excludes all dilutive securities because their impact would be anti-dilutive, as described below.

Basic and diluted (loss) earnings per share has been retroactively adjusted for all prior periods presented to reflect the effects of the Share Consolidation.

Basic and diluted earnings (loss) per share:

are calculated as follows for the years ended December 31:

(in thousands, except per share data) 2025 2024

Net loss attributable to Altisource $ ( 35,636 ) $ ( 56,290 )

Net income (loss) attributable to Altisource $ 1,615 $ ( 35,636 )

Weighted average common shares outstanding, basic 10,066 3,567

Weighted average common shares outstanding, diluted 11,067 3,567

Loss per share:

Earnings (loss) per share:

Basic $ 0.16 $ ( 9.99 )

Diluted $ 0.15 $ ( 9.99 )

For the years ended December 31, 2024 and 2023, 2.3 million and 1.6 million, respectively, stock options, restricted shares and RSUs were excluded from the computation of loss per share, as a result of the following:

• For the years ended December 31, 2024, and 2023, 0.7 million and 0.4 million, respectively, stock options, restricted shares and RSUs were anti-dilutive and have been excluded from the computation of diluted loss per share because the Company incurred a net loss

• For the years ended December 31, 2024 and 2023, 0.6 million and 0.3 million, 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 years ended December 31, 2024 and 2023, 1.0 million and 0.9 million, respectively, stock options, restricted shares and RSUs, 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, have been excluded from the computation of diluted loss per share because the achievement levels have not yet been met.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

For the years ended December 31, 2025 and 2024, 0.1 million and 0.3 million, respectively, stock options, warrants, restricted shares and RSUs were excluded from the computation of earnings (loss) per share as a result of the following:

• For the year ended December 31, 2024, 0.1 million ( no comparative amount for the year ended December 31, 2025) stock options, warrants, restricted shares and RSUs were anti-dilutive and have been excluded from the computation of diluted earnings (loss) per share because the Company incurred a net loss.

• For the years ended December 31, 2025 and 2024, less than 0.1 million and less than 0.1 million, respectively, stock options were anti-dilutive and have been excluded from the computation of diluted earnings (loss) per share because their exercise price was greater than the average market price of our common stock.

• For the years ended December 31, 2025 and 2024, 0.1 million and 0.1 million, respectively, stock options, restricted shares and RSUs, 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, have been excluded from the computation of diluted earnings (loss) per share because the achievement levels have not yet been met.

NOTE 22 — COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS

2 unchanged sentences

We are currently involved in legal actions in the course of our business, most of which seek monetary damages.

Although the outcome of these proceedings cannot be predicted with certainty, we currently believe that their outcome, both individually and in the aggregate, will not have a material impact on our financial condition, results of operations or cash flows.

Although the outcome of these proceedings cannot be predicted with certainty, we currently believe that their outcome, both individually and in the aggregate, other than as described below, will not have a material impact on our financial condition, results of operations or cash flows.

National Fair Housing Alliance v.

Altisource Solutions, Inc., et al.

On or about February 1, 2018, the National Fair Housing Alliance (“NFHA”) and eighteen regional housing groups (collectively, the “Plaintiffs”) filed a civil complaint, subsequently amended, against Altisource Solutions, Inc.

(“ASI”), a wholly owned subsidiary of the Company, Deutsche Bank National Trust, as Trustee, Deutsche Bank Trust Company Americas, as Trustee, and Ocwen Loan Servicing, LLC (n/k/a Onity Group, Inc.) (collectively, the “Defendants”) in the United States District Court for the Northern District of Illinois (the “Litigation”).

The complaint alleged violations of the federal Fair Housing Act in connection with the maintenance and marketing of certain real estate owned properties.

On February 11, 2026, Defendants entered into a settlement agreement (the “Settlement Agreement”) with the Plaintiffs, providing for a full release of claims against the defendants and dismissal of the Litigation with prejudice.

Altisource recorded a $ 7.5 million loss for the year ended December 31, 2025 reflecting the settlement and associated defense costs.

The Settlement Agreement contains customary terms and conditions and does not include any admission of liability, fault or unlawful conduct by the defendants.

The Company expects to fund its portion of the settlement from available cash.

The Company expects that a significant portion of the liability may be eligible for reimbursement under applicable insurance, subject to the terms and conditions of the applicable insurance policies.

However, one insurer is disputing the extent of its available insurance coverage.

There can be no assurance as to the timing or amount of any such reimbursement, if any.

Regulatory Matters

Periodically, we are subject to audits, examinations and investigations by governmental authorities and receive subpoenas, civil investigative demands or other requests for information from such governmental authorities in connection with their regulatory or investigative authority.

We are currently responding to such inquiries from governmental authorities relating to certain

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

aspects of our business.

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.

1 unchanged sentence

As discussed in Note 3, during the year ended December 31, 2025, Onity was our largest customer, accounting for 42 % of our total revenue.

Additionally, 6 % of our revenue for the year ended December 31, 2024 was earned on the loan portfolios serviced by Onity, when a party other than Onity or the MSRs owner selected Altisource as the service provider.

Onity has disclosed that it is subject to a number of ongoing regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages.

Additionally, 5 % of our revenue for the year ended December 31, 2025 was earned on the loan portfolios serviced by Onity, when a party other than Onity or the MSR owner selected Altisource as the service provider.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Onity has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages.

Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services.

3 unchanged sentences

As of December 31, 2025, Onity reported that approximately 10 % of loans serviced and subserviced by Onity (measured in UPB) and approximately 50 % of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.

The existence or outcome of Onity regulatory matters or the termination of Onity’s sub-servicing agreements with Rithm, or other significant Onity clients may have significant adverse effects on Onity’s business.

In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreements with Onity effective January 31, 2026.

The termination of Onity’s subservicing agreements with Rithm may have significant adverse effects on Onity’s business.

Additionally, Altisource’s revenue from Onity and Rithm (and revenue associated with the Rithm MSRs) will be reduced and our results of operations will be adversely affected by this termination.

The existence or outcome of Onity regulatory matters or Onity’s loss of significant clients may have significant adverse effects on Onity’s business.

For example, Onity may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-government-sponsored enterprise (“GSE”) servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses.

4 unchanged sentences

• Onity loses, sells or transfers a significant portion of its GSE or Federal Housing Administration servicing rights or subservicing arrangements or remaining other servicing rights or subservicing arrangements and Altisource fails to be retained as a service provider

• The contractual relationship between Onity and Rithm changes significantly, including Onity’s sub-servicing arrangement with Rithm expiring without renewal, and this change results in a change in our status as a provider of services related to the Subject MSRs

• Onity loses state servicing licenses in states with a significant number of loans in Onity’s servicing portfolio

4 unchanged sentences

Management cannot predict whether any of these events or other events will occur or the amount of any impact they may have on Altisource.

We lease certain premises and equipment, primarily consisting of office space and information technology equipment.

We lease certain premises and equipment, primarily consisting of office space.

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.

2 unchanged sentences

We sublease certain office space to third parties.

Sublease income was $ 0.6 million and $ 0.2 million for the years

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

ended December 31, 2024 and 2023, respectively.

Sublease income was $ 0.2 million and $ 0.6 million for the years ended December 31, 2025 and 2024, 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 to six years .

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Information about our lease terms and our discount rate assumption were as follows as of December 31:

14 unchanged sentences

Escrow and Other Balances

We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate activities.

We hold customers’ assets in escrow and other accounts at various financial institutions pending completion of certain real estate activities and construction review activities.

These amounts are held in escrow and other accounts for limited periods of time and are not included in the accompanying consolidated balance sheets.

8 unchanged sentences

Corporate and Others includes interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, and eliminations between reportable segments.

Income (loss) before income taxes and non-controlling interests is the measure of segment profit and loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and used by the chief operating decision maker to evaluate segment results.

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

Financial Information

6 unchanged sentences

Selling, general and administrative expenses 7,503 7,162 26,311 40,976

11,421 6,584 27,615 45,620

Loss on sale of business 2

Litigation settlement loss (Note 22) 7,517 — — 7,517

Income (loss) from operations 33,065 115 ( 32,763 ) 417

1 unchanged sentence

Interest income (expense) ( 119 ) ( 5 ) ( 12,049 ) ( 12,173 )

Debt amendment costs — — ( 3,646 ) ( 3,646 )

347 — 909 1,256

1 unchanged sentence

Income (loss) before income taxes and non-controlling interests $ 33,293 $ 110 $ ( 47,549 ) $ ( 14,146 )

Servicer and Real Estate and Origination selling, general and administrative expenses include $ 1.1 million and $ 1.0 million of other expenses primarily related to bad debt expense and other operating expenses.

Corporate and Others selling, general and administrative expenses include $ 3.1 million of other expenses primarily related to other operating expenses.

Loss on sale of business includes a $ 0.7 million loss in connection with the indemnity escrow from the Pointillist sale.

Servicer and Real Estate other income is primarily interest income.

6 unchanged sentences

Selling, general and administrative expenses 11,421 6,584 27,615 45,620

9,622 7,693 29,105 46,420

Loss on sale of business 1

Income (loss) from operations 37,898 127 ( 34,801 ) 3,224

1 unchanged sentence

Interest income (expense) ( 30 ) — ( 38,847 ) ( 38,877 )

Change in fair value of warrant liability — — 1,145 1,145

Debt amendment costs — — ( 3,410 ) ( 3,410 )

150 — 2,636 2,786

1 unchanged sentence

Income (loss) before income taxes and non-controlling interests $ 38,018 $ 127 $ ( 71,012 ) $ ( 32,867 )

Servicer and Real Estate and Origination Selling, general and administrative expenses include $ 0.7 million and $ 1.4 million of other expenses primarily related to bad debt expense and other operating expenses.

Corporate and Others other selling, general and administrative expenses include $ 2.8 million of other expenses primarily related to other operating expenses.

Loss on sale of business includes a $ 0.7 million loss in connection with the indemnity escrow from the Pointillist sale.

Servicer and Real Estate other income is primarily interest income.

Corporate and Others other income primarily include other non-operating gains and losses.

6 unchanged sentences

December 31, 2024 58,000 47,251 38,355 143,606

NOTE 24 — SUBSEQUENT EVENTS

In April 2018, Altisource Portfolio Solutions S.A.

and its wholly-owned subsidiary, Altisource S.à r.l.

(the “Borrower”), entered into the Credit Agreement.

Under the Credit Agreement, Altisource borrowed $ 412 million in the form of the SSTL.

Effective February 14, 2023, Altisource Portfolio Solutions S.A.

and Altisource S.à r.l.

entered into the Amended Credit Agreement.

On December 16, 2024, Altisource Portfolio Solutions S.A.

and the Borrower entered into that certain Transaction Support Agreement, dated as of December 16, 2024 (the “Transaction Support Agreement”), with certain holders of the Company’s SSTL under the Amended Credit Agreement.

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

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

On February 18, 2025, the Company’s shareholders approved an increase in the number of authorized shares of Altisource Portfolio Solutions S.A.

common stock (“common stock”) from 100.0 million to 250.0 million, a decrease in the par value of the Company’s common stock from $ 1.00 to $ 0.01 and an increase the number of shares of common stock reserved for issuance under the Equity Plan from approximately 11.7 million to approximately 16.3 million.

On February 18, 2025, the Company’s shareholders also approved proposals to enable, among other things, an issuance of warrants (the “Warrant Distribution”) to purchase approximately 114.5 million shares of common stock for $ 1.20 per share, subject to adjustment (the “Stakeholder Warrants”) to Stakeholders:

(i) shares of common stock, (ii) RSUs, and (iii) Penny Warrants, in each case, as of 5:00 p.m., New York City time, on February 14, 2025 (such date and time, the “Distribution Record Date”).

Subject to the right of the Board of Directors to change the Distribution Record Date, the issuance of Stakeholder Warrants shall occur on a date to be subsequently determined by the Board of Directors that will be within 60 days after the Distribution Record Date (i.e., by April 15, 2025).

Pursuant to the Warrant Distribution, each Stakeholder is expected to receive:

one Cash Exercise Stakeholder Warrant to purchase 1.625 shares of our common stock and one Net Settle Stakeholder Warrant to purchase 1.625 shares of our common stock for each (a) share of common stock held as of the Distribution Record Date, (b) RSU held as of the Distribution Record Date and (c) share of common stock that could be acquired upon exercise of Penny Warrants held as of the Distribution Record Date.

The Stakeholder Warrants are expected to be exercisable on the later of (i) 90 days after their issuance and (ii) first date on which the VWAP (as defined in the Warrant Agent Agreement for the Stakeholder Warrants (the “Warrant Agent Agreement”)) of the common stock equals or exceeds the Implied Per Share Exercise Price (as such term is defined in the Warrant Agent Agreement) of the Stakeholder Warrants, which is expected to initially be $ 1.20 , for a period of fifteen consecutive trading days (the “VWAP Condition”).

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

On February 19, 2025, Altisource Portfolio Solutions S.A.

and the Borrower entered into agreements with the Lenders under the Amended Credit Agreement.

Under these agreements, the Lenders exchanged the SSTL with an outstanding balance of $ 232.8 million for a $160.0 million New Facility and 58.2 million Debt Exchange Shares.

The New Facility is comprised of a $ 110.0 million New Debt and a $ 50.0 million Exit Fee.

The following is a summary of certain terms of the New Facility:

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

ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Notes to Consolidated Financial Statements ( Continued )

• The interest rate on the New Debt is the SOFR plus 6.50 % per annum with a 3.50 % SOFR floor

• The interest rate on the Exit Fee is 0 %

• All mandatory and voluntary prepayments under the New Facility are allocated between the New Debt and the Exit Fee on a pro rata basis

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

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

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

The payment of all amounts owing by the Borrower under the New Facility is guaranteed by Altisource Portfolio Solutions S.A.

and the Guarantors and is secured by a lien on substantially all of the assets of the Borrower, Altisource and the other Guarantors, subject to certain exceptions.

The liens securing the New Facility are junior to the liens securing the Super Senior Facility (defined below) pursuant to, and as set forth in, an intercreditor agreement.

Pursuant to the terms of the Exchange Agreement, dated February 19, 2025, by and among the Borrower and Altisource Portfolio Solutions S.A., on the one hand, and the Lenders, on the other hand, with limited exceptions, the Lenders may not, among other things, sell, offer to sell, grant any option to purchase or otherwise dispose of any Debt Exchange Shares, without the prior written consent of Altisource Portfolio Solutions S.A., until the date that is the earlier of (i) September 17, 2025 or (ii) the date on which Altisource Portfolio Solutions S.A.

completes a liquidation, merger, stock exchange or other similar transaction that results in all of Altisource’s shareholders having the right to exchange their shares of common stock for cash, securities or other property (“Lock-Up”).

On February 19, 2025, Altisource Portfolio Solutions S.A.

and the Borrower also entered into a $ 12.5 million super senior credit facility (the “Super Senior Facility”) to fund transaction costs related to the Transactions (defined below) and for general corporate purposes.

The following is a summary of certain terms of the Super Senior Facility:

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

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

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

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

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data