Altisource Portfolio Solutions (ASPS) FY2025 10-K Risk Factors: 6 New, 18 Dropped

What the changes say

Altisource faces heightened risks from cyber threats targeting Hubzu, lender shareholder control conflicts, and Luxembourg net operating loss expiration limits.

What changed since the prior 10-K

New

NewRisks Related to Our Business and Operations
Cyberattacks, ransomware, data breaches, malicious activity or other security incidents targeting our systems, data or platforms could disrupt our operations, expose us to liability, and materially harm our financial condition and reputation
Cyberattacks or ransomware targeting our systems and Hubzu platform could disrupt operations, incur ransom payments, and cause liability.
NewRisks Related to Our Industry
Government shutdowns, funding lapses or other disruptions affecting federal, state or local governmental operations could adversely affect our business, results of operations and cash flows
Government shutdowns or funding lapses affecting courts, HUD, FHA, VA, and USDA could delay foreclosure proceedings and reduce order volumes.
NewRisks Related to Our Common Stock
The market price and trading volume of our common stock and Stakeholder Warrants has been and may continue to be volatile
Our common stock and Stakeholder Warrants have been volatile, with closing prices ranging from $4.34 to $15.04 between May 2025 and February 2026.
NewRisks Related to Shareholder Structure and Governance
The individual and collective interests and objectives of the lenders under our New Facility which are also our shareholders (collectively, the “Lender Shareholders”) may conflict with those of our other shareholders
Lender Shareholders who received 63.5% of our common stock may prioritize debt recovery over equity appreciation or conflict with other shareholders.
NewRisks Relating to Luxembourg Organization and Ownership of Our Shares
As a Luxembourg company, we are subject to Luxembourg requirements which may limit our operational flexibility and affect how we manage and govern the Company
As a Luxembourg company, we face legal requirements, AML/CTF rules, and local substance expectations that limit operational flexibility and increase costs.
NewRisks Relating to Regulation
Our services, regulatory obligations and tax compliance requirements expose us to significant penalties, litigation, customer loss and increased costs
Failure to meet legal or customer vendor oversight standards could subject us to penalties, loss of licensure, litigation, or customer loss.

Dropped

DroppedRisks Related to Our Business and Operations
If the Rithm Brokerage Agreement is terminated, expires, breached, or if there is a significant reduction in the volume of services that we provide pursuant to such agreement, our business and results of operations would be adversely affected
DroppedRisks Related to Our Business and Operations
We also leverage third-party technology to provide certain of our services, including using third-party order management and billing technology, and using third-party technology to access data or take actions, such as governmental filings, and externally hosted and managed data centers and operating environments
Termination or breach of the Rithm Brokerage Agreement for REO services.
DroppedRisks Related to Our Business and Operations
Many of our services and processes require effective interoperation with internal and external technology platforms and services, and failures in such interoperation could have a negative impact on our operations and the operations of our customers
DroppedRisks Related to Our Business and Operations
We depend on our ability to use services, products, data, infrastructure and solutions provided by third parties to maintain and grow our businesses
Disruptions or failures in third-party technology and order management tools.
DroppedRisks Related to Our Business and Operations
The insurance underwriting loss limitation methods we used may not be effective or sufficient
Failures in interoperation with internal and external technology platforms.
DroppedRisks Related to Our Business and Operations
reinsurance, we maintain first loss exposure and the frequency and severity of claims could be greater than contemplated in our pricing and risk management methods and our controls and mitigation efforts may not be effective or sufficient
Dependence on third-party inputs like Equator, Field Services, and TrelixAI.
DroppedRisks Related to Our Growth Strategy
Business expansion involves potential risks and uncertainties
DroppedRisks Related to Our Growth Strategy
Acquisitions to accelerate growth initiatives involve potential risks
DroppedRisks Related to Our Common Stock
The recent Transactions, including the issuance of the Debt Exchange Shares and the proposed issuance of Stakeholder Warrants could result in increased volatility in the price and trading volume of our common stock
Ineffectiveness of insurance underwriting loss limitation methods.
DroppedRisks Related to Our Common Stock
We may be delisted from Nasdaq, which could negatively impact the value of our common stock and our business
Counterparty risk and reinsurance claims exposure.
DroppedRisks Related to Our Common Stock
the bid price of the Company’s common stock closes at $1.00 per share or more for a minimum of ten consecutive business days
DroppedRisks Related to Shareholder Structure and Governance
Significant shareholders, management and members of the Board of Directors may have direct or beneficial ownership interests in certain of our clients or vendors
DroppedRisks Related to Shareholder Structure and Governance
These relationships and interests could create, or appear to create, conflicts of interest in matters involving or affecting us and our business dealings with certain of our clients or vendors, or with our lenders
DroppedRisks Related to Financing, Our Indebtedness and Capital Structure
We have significant investments in goodwill and intangible assets recorded as a result of prior acquisitions and an impairment of these assets would require a write-down that would reduce our net income
DroppedRisks Relating to Luxembourg Organization and Ownership of Our Shares
As a Luxembourg company, we face legal requirements and limitations on company governance and actions which may negatively impact our ability to manage the company and respond to market conditions
DroppedRisks Relating to Luxembourg Organization and Ownership of Our Shares
Luxembourg law imposes specific requirements regarding the structure and governance of companies which could limit flexibility in decision-making or lead to increased operational complexity
DroppedRisks Relating to Regulation
existing and potential customers. Such settlements and additional actions could increase costs, place limitations on our services, and result in a reduction in demand
DroppedRisks Relating to Regulation
Certain of our customers are subject to governmental oversight, regulations, orders, judgments or settlements which may impose certain obligations and limitations on their use of our services

Reworded

93% rewrittenRisks Related to Our Business and Operations
Technology disruptions, failures, defects, inadequacies, delays, difficulties in implementing technology modifications, acts of vandalism, the introduction of harmful code or intellectual property disputes could damage our business operations and relationships with clients and stakeholders, and increase our costs
Updated platform list by removing TrelixAI and adding Trelix Connect, while emphasizing risks from unpatched components and intellectual-property disputes.
Was: Technology disruptions, failures, defects, inadequacies, delays, difficulties in implementing software or hardware modifications, acts of vandalism, or the introduction of harmful code could damage our business operations and relationships with clients and stakeholders, and increase our costs
87% rewrittenRisks Related to Financing, Our Indebtedness and Capital Structure
We have a significant net operating loss recognized by our Luxembourg entities. We may not be able to fully utilize this deferred tax asset before the net operating loss expires
Updated Luxembourg net operating losses to $2.1 billion generating a $498.9 million deferred tax asset expiring between 2034 and 2042.
Was: We have a significant net operating loss recognized by one of our Luxembourg subsidiaries, Altisource S.à r.l. We may not be able to fully utilize this deferred tax asset before the net operating loss expires
85% rewrittenRisks Related to Our Business and Operations
Our business continuity and disaster recovery plans may not adequately address potential impacts from business interruptions or pandemics, which could result in operational disruptions, financial losses, or regulatory compliance issues
Added a new warning that shareholder group formations exceeding defined ownership percentages may trigger events of default under material agreements.
64% rewrittenRisks Related to Our Industry
Developments that impact residential foreclosures or the supply, sale price or sale of REO could negatively affect demand for certain of our default-related services and impact our ability to meet certain contractual performance metrics
Refined language regarding REO inventory declines making remaining properties the most difficult to sell and impacting performance metrics.
51% rewrittenRisks Related to Our Industry
Changes in economic and market conditions that depress residential real estate sales, values or mortgage origination volumes could negatively impact demand for our services
Adjusted economic fluctuations wording to highlight low residential real estate sales and depressed sales prices impacting brokerage and title services.
Was: Changes in economic and market conditions that reduce residential real estate sales, values or mortgage origination volumes could negatively impact demand for our services
41% rewrittenRisks Related to Our Industry
We may fail to adapt our services to changes in technology or in the marketplace related to mortgage servicing or origination, changing requirements of governmental authorities, GSEs and customers. Customers may seek to reduce the number of their service providers
Added a Table of Content reference error and updated wording on the ongoing development and modification of mortgage servicing technologies.
41% rewrittenRisks Related to Our Common Stock
Owners of our securities could be diluted
Updated common stock figures from approximately 87.6 million shares outstanding to 11.3 million shares outstanding as of February 26, 2026.
40% rewrittenRisks Relating to Regulation
Our business and the business of our customers are subject to extensive scrutiny and legal requirements. We, or our services, may fail or be perceived as failing to comply with applicable legal requirements
Maintained regulatory scrutiny disclosures covering FTC, CFPB, SEC, HUD, and GDPR compliance requirements.
35% rewrittenRisks Related to Our Business and Operations
We earn a significant portion of our revenue in connection with providing services to two customers
30% rewrittenRisks Related to Our Industry
A depressed rate of residential mortgage delinquencies, defaults or foreclosures, and REO volume can negatively affect demand for certain of our services
Was: A reduction in residential mortgage delinquencies, defaults or foreclosures, and REO volume in the United States can negatively affect demand for certain of our services
21% rewrittenRisks Related to Our Common Stock
Volatility in the trading price of our common stock or other securities could result in litigation

All 46 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business and Operations

01We earn a significant portion of our revenue in connection with providing services to two customers35% rewritten
02Technology disruptions, failures, defects, inadequacies, delays, difficulties in implementing technology modifications, acts of vandalism, the introduction of harmful code or intellectual property disputes could damage our business operations and relationships with clients and stakeholders, and increase our costs93% rewritten
03Cyberattacks, ransomware, data breaches, malicious activity or other security incidents targeting our systems, data or platforms could disrupt our operations, expose us to liability, and materially harm our financial condition and reputationNew
04We may not successfully prevent or detect fraudulent activity which could harm our services, clients, third parties, reputation, and our results of operations
05Our business continuity and disaster recovery plans may not adequately address potential impacts from business interruptions or pandemics, which could result in operational disruptions, financial losses, or regulatory compliance issues85% rewritten

Risks Related to Our Industry

06Changes in economic and market conditions that depress residential real estate sales, values or mortgage origination volumes could negatively impact demand for our services51% rewritten
07Government shutdowns, funding lapses or other disruptions affecting federal, state or local governmental operations could adversely affect our business, results of operations and cash flowsNew
08A depressed rate of residential mortgage delinquencies, defaults or foreclosures, and REO volume can negatively affect demand for certain of our services30% rewritten
09We may fail to adapt our services to changes in technology or in the marketplace related to mortgage servicing or origination, changing requirements of governmental authorities, GSEs and customers. Customers may seek to reduce the number of their service providers41% rewritten
10Changes that reduce or limit the use of online default real estate auctions or otherwise reduce the volume or rate of success of such auctions can negatively impact our auction marketplace, real estate brokerage and related default services
11Changes that reduce the frequency or alter or eliminate requirements to use default or origination services of the type we provide may reduce the volume of sales of our services
12Developments that impact residential foreclosures or the supply, sale price or sale of REO could negatively affect demand for certain of our default-related services and impact our ability to meet certain contractual performance metrics64% rewritten
13Changes to compensation paid in connection with residential property transactions could negatively impact us

Risks Related to Our Growth Strategy

14Sales from our awarded business or pipeline may not occur or may take longer than anticipated to develop, which could result in lower-than-expected revenue and impact our financial performance

Risks Related to Human Capital

15A majority of our employees and contractors work from locations other than in our facilities, which could negatively impact our control environment or productivity and create additional risks for our business, including increasing our risk for cybersecurity breaches or failures
16In addition, our remote work environment may result in difficulties creating and maintaining current and accurate records of where our employees are working. Such uncertainty in employee location may subject us to risks related to taxing jurisdictions or maintaining certain licenses
17We make extensive use of contractors in certain of our lines of business. If we are required to reclassify contractors as employees, we may incur fines and penalties and additional costs and taxes
18Our success depends on the relevant industry experience and relationships of certain members of our Board of Directors, executive officers and other key personnel
19Attracting, motivating, and retaining skilled employees could prove difficult
20The presence of our operations in multiple countries subjects us to risks endemic to those countries
21We operate in jurisdictions that have experienced corruption, bribery and other similar practices from time-to-time. We are subject to the Foreign Corrupt Practices Act and similar anti-corruption laws in other jurisdictions, and the failure to comply with these laws could result in substantial penalties

Risks Related to Our Common Stock

22We may never pay cash dividends on our common stock so any returns would be limited to the potential appreciation of our stock
23Our smaller market capitalization could increase the volatility, and limit investors in and analyst coverage, of our stock
24Owners of our securities could be diluted41% rewritten
25The market price and trading volume of our common stock and Stakeholder Warrants has been and may continue to be volatileNew
26We may take advantage of specified reduced disclosure requirements applicable to a “smaller reporting company” or a “non-accelerated filer” under Regulation S-K, and the information that we provide to shareholders may be different from the information they might receive from other public companies
27We are not currently eligible to file new short form registration statements on Form S-3 for the primary offering of securities, except in limited circumstances. As a result, our ability to raise capital on favorable terms or at all may be impaired
28Volatility in the trading price of our common stock or other securities could result in litigation21% rewritten

Risks Related to Shareholder Structure and Governance

29The individual and collective interests and objectives of the lenders under our New Facility which are also our shareholders (collectively, the “Lender Shareholders”) may conflict with those of our other shareholdersNew

Risks Related to Financing, Our Indebtedness and Capital Structure

30If we are unable to generate sufficient cash flow or access the capital markets or our borrowing capacity is reduced, our liquidity and competitive position would be negatively affected
31In addition, our liquidity could be adversely affected by an inability to access the capital markets, volatility in the capital markets, unforeseen outflows of cash, funding for contingencies and increased regulatory liquidity requirements
32Our failure to comply with the covenants or terms contained in the New Facility or the Super Senior Facility, including as a result of events beyond our control, could result in an event of default
33The New Facility and the Super Senior Facility impose restrictions on our ability to incur additional indebtedness or refinancing
34We have a significant net operating loss recognized by our Luxembourg entities. We may not be able to fully utilize this deferred tax asset before the net operating loss expires87% rewritten
35Cash, cash equivalents and escrow funds we hold at financial institutions could be lost and not recoverable
36Fluctuations in currency exchange rates could expose us to losses

Risks Relating to Luxembourg Organization and Ownership of Our Shares

37As a Luxembourg company, we are subject to Luxembourg requirements which may limit our operational flexibility and affect how we manage and govern the CompanyNew
38A significant challenge of the Luxembourg tax regime or of its interpretation by the Luxembourg tax authorities, or its application to us or our business could have a negative impact us
39Changes in trade policies, including tariffs, taxes or restrictions on foreign service providers, could adversely affect our business

Risks Relating to Regulation

40Our business and the business of our customers are subject to extensive scrutiny and legal requirements. We, or our services, may fail or be perceived as failing to comply with applicable legal requirements40% rewritten
41Failure to comply with applicable sanctions, including blocking certain activities in sanctioned countries, could expose us to penalties and other adverse consequences
42If we fail to timely make required disclosure filings with the United States Department of Treasury Financial Crimes Enforcement Network, we could be subject to penalties
43A violation by our customers of applicable legal requirements in the selection or use of our services could generate legal liability for us
44Our services, regulatory obligations and tax compliance requirements expose us to significant penalties, litigation, customer loss and increased costsNew
45The tax regulations, and the interpretation thereof, in the countries, states and local jurisdictions in which we operate periodically change, which may adversely affect our results due to higher taxes, interest and penalties, or our inability to utilize operating losses or other tax credits available to us
46Our operations and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our results of operations

Altisource Portfolio Solutions (ASPS) risk factors, FY2025 10-K

What the changes say

What changed since the prior 10-K

All 46 risk factors

Other Altisource Portfolio Solutions 10-Ks