ACCOUNTS RECEIVABLE, NET

3 Months Ended

Mar. 31, 2025

Accounts receivable, net consists of the following:


(in thousands)	March 31, 2025		December 31, 2024

Billed	$	10,512	$	10,728
Unbilled	10,304		7,446
	20,816		18,174
Less: Allowance for credit losses	(2,628)		(3,124)

Total	$	18,188	$	15,050

Unbilled 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, $10.7 million of which was billed and $7.4 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, 2024, gross accounts receivable totaled $14.8 million, $9.8 million of which was billed and $5.0 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 condensed consolidated financial statements. We monitor and estimate the allowance for credit losses based on our historical write-offs, historical collections, our analysis of past due accounts based on the contractual terms of the receivables, relevant market and industry reports and our assessment of the economic status of our customers, if known. Estimated credit losses are written off in the period in which the financial asset is determined to be no longer collectible. 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.

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


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

Allowance for expected credit losses:




Three months ended March 31, 2025	$	3,124	$	(137)	$	(359)	$	2,628
Three months ended March 31, 2024	$	3,123	$	558	$	(126)	$	3,555

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