Altisource announces reverse stock split to meet Nasdaq rules

LUXEMBOURG - Altisource Portfolio Solutions S.A. (NASDAQ: ASPS), a service provider for the real estate and mortgage industries, has announced a reverse stock split following approval from its shareholders at an Extraordinary General Meeting held on Tuesday. The company, currently valued at approximately $77 million, has seen its stock decline over 53% in the past year, according to InvestingPro data. The reverse stock split will consolidate every eight shares of common stock into one, effectively reducing the total number of outstanding shares from roughly 88.95 million to about 11.12 million.

The move, scheduled to take effect on May 28, 2025, aims to help the company regain compliance with the Nasdaq Global Select Market’s minimum bid price requirement of $1.00. This strategic decision comes as the company operates with significant debt burden and faces challenges with profitability, as highlighted by InvestingPro’s analysis, which shows a current ratio of 1.3 and negative earnings over the last twelve months. In preparation for the reverse stock split, shareholders must ensure their holdings are in multiples of eight by the market close on May 27, 2025, to avoid a cash-out of fractional shares. Those holding fractional shares after the consolidation will receive cash at the closing price of Altisource’s common stock on May 27, without interest, distributed on a pro rata basis.

Shareholders using financial intermediaries such as banks or brokers should contact these entities to make any necessary adjustments to their holdings. No fractional shares will be issued post-consolidation, and the redemption for these fractions is a one-time event.

The decision for a reverse stock split was detailed in the company’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on March 31, 2025. This press release does not serve as an offer to sell or buy securities, and the company has emphasized that no securities transactions will occur in jurisdictions where such actions would contravene local laws.

The press release also contains forward-looking statements, which include expectations about the reverse stock split’s effectiveness and timing, as well as its impact on Nasdaq listing standards. These statements are subject to various risks and uncertainties that could cause actual outcomes to differ materially from expectations.

Altisource Portfolio Solutions S.A. provides a suite of services and technologies for the real estate and mortgage sectors, focusing on meeting the dynamic needs of the market. Despite current challenges, the company’s revenue grew by 13% in the last twelve months, with analysts expecting continued sales growth this year. For deeper insights into ASPS’s financial health and growth prospects, investors can access comprehensive analysis and 15+ additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Altisource Portfolio Solutions reported its fourth-quarter 2024 financial results, highlighting an earnings per share (EPS) of -$0.18, which exceeded analyst expectations of -$0.24. However, the company fell short on revenue, reporting $38.4 million compared to the forecasted $43.85 million. Despite the revenue miss, Altisource achieved its highest quarterly service revenue since Q3 2021 and reported an adjusted EBITDA of $4.7 million, its strongest since Q3 2020. In another development, Altisource has regained compliance with Nasdaq’s minimum market value requirement, ensuring its continued listing on the Nasdaq Global Select Market.

Additionally, Altisource’s online marketplace, Hubzu, is expanding into the commercial real estate sector, aiming to streamline the buying and selling process for commercial properties through a new auction platform. This expansion reflects Hubzu’s strategy to leverage its experience in residential property sales to benefit the commercial market. Moreover, Altisource has made significant debt restructuring moves, reducing its debt from $233 million to $172.5 million, which is expected to strengthen its financial position. Analyst firms have not issued any recent upgrades or downgrades for Altisource, but the company’s recent financial maneuvers and product expansions may influence future analyses. These recent developments indicate Altisource’s strategic initiatives to improve its financial health and expand its market presence.

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