Altisource Portfolio S A : Presentation

ALTISOURCE

T H I R D Q U A R T E R 2 0 2 3

S U P P L E M E N T A R Y I N F O R M A T I O N

O C T O B E R 2 6 , 2 0 2 3

1

D IS C LAI M ER

This presentation contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "plan," "estimate," "seek," "believe," "potential" or "continue" or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I "Risk Factors" in our Form 10-K filing with the Securities and Exchange Commission, as the same may be updated from time to time in our Form 10-Q filings. We caution you not to place undue reliance on these forward- looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to the COVID-19

pandemic, customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs, the timing of the expiration of such moratoriums and programs, and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our Credit Agreement, including the financial and other covenants contained therein, as well as Altisource's ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this presentation are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events.

© 2023 Altisource All Rights Reserved.

2

NON -GAAP MEASURES

Adjusted operating loss, pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, adjusted net loss attributable to Altisource, adjusted diluted loss per share, and net debt, which are presented elsewhere in this presentation, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource's performance and do not purport to be alternatives to loss from operations, loss before income taxes and non-controlling interests, net loss attributable to Altisource, diluted loss per share, and long-term debt, including current portion, as measures of Altisource's performance. We believe these measures are useful to management, existing shareholders, potential shareholders and other users of our financial information in evaluating operating profitability and cash flow generation more on a basis of continuing cost and cash flows as they exclude amortization expense related to acquisitions that occurred in prior periods and non-cashshare-based compensation, as well as the effect of more significant non-operational items from earnings, cash flows from operating activities and long-term debt net of cash on-hand. We believe these measures are useful in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Furthermore, we believe the exclusion of more

significant non-operational items enables comparability to prior period performance and trend analysis.

It is management's intent to provide non-GAAP financial information to enhance the understanding of Altisource's GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. The non-GAAP financial information presented should not be unduly relied upon.

These non-GAAP measures are presented as supplemental information and reconciled to the appropriate GAAP measures in the Appendix.

© 2023 Altisource All Rights Reserved.

3

THIRD QUARTER 2023 OVERVIEW

• Generated $874,000 of Adjusted EBITDA1 in Q3 2023, representing a:
• • $4.4 million improvement compared to Q2 2023
  • $7.3 million improvement compared to Q3 2022
• Improved Adjusted EBITDA by $16.1 million for the first nine months of 2023 compared to 2022
• Anticipate positive Adjusted EBITDA for the fourth quarter of 2023 and full year
• Generated $18.4 million in net proceeds from the September 2023 sale of equity and used $10 million of the proceeds to reduce the principal balance of our term loans

• This is a non-GAAP measure defined and reconciled in the Appendix

© 2023 Altisource All Rights Reserved.

4

THIRD QUARTER EQUITY AND DEBT ACTIVITY

In September 2023, the Company closed an underwritten public offering to sell common stock and used a

portion of the net proceeds to pay down debt

Transaction Highlights

• Sold 5.6 million shares of common stock, generating net proceeds of $18.4 million after underwriting discounts, commissions and other offering expenses
• Used $10 million of offering proceeds to reduce the principal balance of the Senior Secured Term Loans ("SSTL")1, bringing year-to-date Q3 2023 Aggregate Paydowns2 to $30 million
• As a result of the $30 million Aggregate Paydowns, the maturity date of the SSTL may be extended at the Company's option by one year to April 30, 2026, subject to certain conditions3
• The $10 million debt payment in September also provides the following benefits to Altisource:
• • Reduces payment-in-kind ("PIK")4 interest rate from 4.50% to 3.75%
  • Eliminates 966,038 Warrant Shares5
  • Saves an estimated $3.4 million per year in interest expense
• Ended the quarter with $36.6 million of cash and cash equivalents

• For additional information on our Credit Agreements, including the SSTL and revolver, refer to our SEC filings

• "Aggregate Paydowns" means the aggregate amount of par paydowns on the SSTL made prior to February 14, 2024 using proceeds from issuances of equity interest or from junior indebtedness

• Such extension is (1) 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 and (2) conditioned upon the Company's payment of a 2% PIK extension fee on or before April 30, 2025

• PIK interest rate may be reduced further with additional Aggregate Paydowns; additional Aggregate Paydowns do not change the number of Warrant Shares or the maturity date

• On February 14, 2023, the lenders under the Amended Credit Agreement received warrants to purchase 3,223,851 shares of Altisource common stock (the "Warrant Shares"). The number of outstanding

Warrant Shares was reduced based on the amount of Aggregate Paydowns. The Warrant exercise price is equal to $0.01	5
© 2023 Altisource All Rights Reserved.

CONSOLIDATED SALES PIPELINE AND WINS

				($ millions)	$68.9
Attractive Sales	$56.2	$65.3	$59.0	$62.4	$63.2
		$45.9
Pipeline1
Weighted Average Pipeline Estimated
Revenue - End of Quarter	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'232
Strong Sales			$14.4	FY 2022	$17.8		$16.9		FY 2023
		Wins		YTD Wins
Wins3		$9.6		$31.0		$5.7		$40.5
$3.0		$4.0
Estimated Annualized Revenue
on a Stabilized Basis	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
Growth in					$2.6	$3.2	$3.4
							Q3'23
Revenue4		$0.5	$0.9	$1.2				annualized
Revenue Generated from	$0.2						$13.7
Sales Wins
	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23

Note: Numbers may not sum due to rounding

• Sales Pipeline represents a weighted estimate of the annualized revenue on a stabilized basis from the sales pipeline at the end of the applicable quarter. The pipeline can and will change based on won and lost deals, new

prospects, pipeline funnel stage changes, stabilized revenue estimate changes, weighted revenue estimate changes and additional information. Actual results could differ materially from the estimates. Sales Wins are removed from the Sales Pipeline in the quarter in which the applicable contract for the business is executed

• Q3'23 consolidated weighted sales pipeline represents $41 million to $51 million in annual revenue on a stabilized basis based upon the Company's forecasted probability of closing

• Sales Wins represent an estimate of the annualized revenue on a stabilized basis from the total Sales Wins in the applicable quarter. It is anticipated that stabilized revenue will be achieved after an initial ramp-up period for most Sales Wins. The period of time for the Company to begin to realize revenue on a stabilized basis, if at all, from a Sales Win can significantly vary based on a variety of conditions, including those related to the applicable client, the

subject service, the applicable industry and the broader economy. Actual results could differ materially from applicable estimates. A Sales Win is included in the estimate of the applicable quarter in which the applicable contract for the business is executed. Estimates are not updated to reflect revenue recognized or changes to estimated revenue subsequent to the Sales Wins. Recognized revenue from Sales Wins is set forth in Growth in Revenue

• Represents revenue recognized in the applicable quarter from FY2022 and FY2023 sales wins

© 2023 Altisource All Rights Reserved.

6

SERVICER AND REAL ESTATE (SRE) SEGMENT

Segment Service Revenue

		($ millions)
$29.0	$26.5	$29.8	$24.9	$26.9

Q3'22 Q4'22 Q1'23 Q2'23 Q3'23

	Segment Gross Profit
		($ millions and margin %)
	$11.4	$12.2	$10.4
$8.8		$8.8

30%	43%	41%	35%	39%
Q3'22	Q4'22	Q1'23	Q2'23	Q3'23

Segment Adjusted EBITDA

	($ millions and margin %)
	$11.1
$9.8	$10.0
$7.1	$7.4

Financial Performance

• Service Revenue
• • Q3 2023 Service revenue of $26.9 million was $2.1 million, or 7%, lower than Q3 2022 primarily from the Q4 2022 exit of a low margin employee outsource business and fewer referrals in our lower margin Field Services business
• Adjusted EBITDA
• • Q3 2023 Adjusted EBITDA of $10.0 million was $2.9 million, or 42%, higher than Q3 2022
  • Q3 2023 Adjusted EBITDA margins of 37% improved from
    24% in Q3 2022
  • Adjusted EBITDA and margin improvements reflect product mix and cost reduction and efficiency initiatives partially offset by Service revenue decline
• Full Year 2023
• • Anticipate higher Adjusted EBITDA and Adjusted EBITDA margins compared to 2022

24%	37%	37%	30%	37%
Q3'22	Q4'22	Q1'23	Q2'23	Q3'23

© 2023 Altisource All Rights Reserved.

7

SRE SALES PIPELINE AND WINS

				($ millions)
Attractive Sales	$35.4		$35.6	$46.3	$41.7	$38.6
$33.4
		$25.6
Pipeline1
Weighted Average Pipeline Estimated
Revenue - End of Quarter	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'232
Strong Sales				FY 2022					FY 2023
			Wins	$14.4		$15.3	YTD Wins
Wins3				$9.4				$32.6
	$1.7	$4.2	$2.2		$2.9
Estimated Annualized Revenue	$1.2
on a Stabilized Basis	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
Growth in							$0.6		Q3'23
					$0.4
Revenue4				$0.2	$0.2		annualized
		$0.1
Revenue Generated from	$0.0	$0.1				$2.6
Sales Wins
	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23

Note: Numbers may not sum due to rounding

• Sales Pipeline represents a weighted estimate of the annualized revenue on a stabilized basis from the sales pipeline at the end of the applicable quarter. The pipeline can and will change based on won and lost deals, new

prospects, pipeline funnel stage changes, stabilized revenue estimate changes, weighted revenue estimate changes and additional information. Actual results could differ materially from the estimates. Sales Wins are removed from the Sales Pipeline in the quarter in which the applicable contract for the business is executed

• Q3'23 consolidated weighted sales pipeline represents $23 million to $28 million in annual revenue on a stabilized basis based upon the Company's forecasted probability of closing

• Sales Wins represent an estimate of the annualized revenue on a stabilized basis from the total Sales Wins in the applicable quarter. It is anticipated that stabilized revenue will be achieved after an initial ramp-up period for most Sales Wins. The period of time for the Company to begin to realize revenue on a stabilized basis, if at all, from a Sales Win can significantly vary based on a variety of conditions, including those related to the applicable client, the

subject service, the applicable industry and the broader economy. Actual results could differ materially from applicable estimates. A Sales Win is included in the estimate of the applicable quarter in which the applicable contract for the business is executed. Estimates are not updated to reflect revenue recognized or changes to estimated revenue subsequent to the Sales Wins. Recognized revenue from Sales Wins is set forth in Growth in Revenue

• Represents revenue recognized in the applicable quarter from FY2022 and FY2023 sales wins

© 2023 Altisource All Rights Reserved.

8

MACROECONOMIC ENVIRONMENT

Consumer loan delinquency rates are increasing

• Government relief measures, including stimulus checks, unemployment benefits, suspension of mortgage and student loan payments and the historically low interest rate environment boosted the economy during the pandemic
• Federal Funds rate has been raised 11 times since March 2022, substantially increasing borrowing costs
• Student loan payments resumed in October 2023
• 30-yearfixed interest mortgage rates recently reached 8%, a new 23-year high
• Credit card debt at record high; rising auto and credit card delinquency rates

• Rising early-stage mortgage delinquencies; 30-day delinquencies increased 9.4% and 60-day delinquencies increased 10.7% from June 2023 to September 20231
• Average personal savings rate declined to 3.9% in August 2023, compared to 26% in March 20212
• Hardship withdrawals on 401(k) accounts increased 36% in Q2 2023 compared to Q2 20223
• Approximately 28%4 of outstanding mortgages are FHA or VA loans, which typically have less equity than conventional mortgages

15%			Consumer loans becoming 30-days delinquent5
10%
									Credit Card
5%									Auto
									Mortgage
									Home Equity
0%
1Q 2003	2Q 2005	3Q 2007	4Q 2009	1Q 2012	2Q 2014	3Q 2016	4Q 2018	1Q 2021	2Q 2023
1 Data based on Black Knight's Mortgage Monitor and First Look reports with data through September 2023
2 Source: Economic Research Division of Federal Reserve Bank of St. Louis; Personal Saving Rate
3 Source: CNN Business article Americans are Pulling Money Out of Their 401(k) plans at an Alarming Rate (August 8, 2023)
4 Based on 2022 HMDA data
5 Source: New York Fed Consumer Panel, Quarterly Report on Household Debt and Credit 2023:Q2 (Released August 2023)			9
© 2023 Altisource All Rights Reserved.

$7.0

$5.0

$3.0

$1.0

$(1.0)

ORIGINATION SEGMENT

	Segment Historical Financials
		($ millions)	8.3
7.3		7.3	7.2
6.3
(1.8)	(0.7)	(0.7)	(1.3)	(0.5)
-24%	-12%	-10%	-16%	-7%
Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
	Service Revenue	Adjusted EBITDA and Margin %
	Quarterly Service Revenue
		($ millions)	$8.3
$7.3		$7.3	$7.2
$6.3

Q3'22Q4'22Q1'23Q2'23Q3'23

Business Unit Service Revenue

($ millions, except for market volume)

	$493		$409		$463		$444
				$333
$5.0	$2.3	$4.3	$1.9	$5.6 $1.7	$6.6 $1.6	$5.8	$1.4
Q3'22	Q4'22	Q1'23		Q2'23	Q3'23
	Lenders One	Other ORG Businesses		Origination Market Volume1

© 2023 Altisource All Rights Reserved.

Financial Performance

• Service Revenue
• • 3Q 2023 Service revenue was roughly flat compared to Q3 2022 despite a 10% decline in industrywide origination volume1
  • Revenue reflects customer wins from our newer Lenders One solutions, which are designed to help our members save money, partially offset by our other Origination businesses which were impacted by continued market challenges
• Adjusted EBITDA
• • Q3 2023 Adjusted EBITDA improved by $1.3 million versus Q3 2022
  • Adjusted EBITDA improvement reflects the impact from our cost reduction and efficiency initiatives

$500•	Full Year 2023
$400	• Anticipate Service revenue performance to outperform
$300
$200	the MBA's forecasted 29% decline in the origination
$100	market1 and Adjusted EBITDA to improve compared to
$-	2022

1 Source: MBA Mortgage Finance Forecasts dated October 15, 2023 and September 18, 2023; Mortgage	10
Originations 1-to4-Family (Bil $)