This report does not constitute a rating action. . The pace and magnitude of Auction.com's recovery, which is linked to the volume of distressed residential real estate foreclosures, is highly uncertain. Despite foreclosure starts approaching pre-pandemic levels, foreclosure sales or brought-to-auction (BTA) volumes are lagging due to several factors, including increased homeowner equity, which allows homeowners to monetize their equity; also, higher interest rates have resulted in relatively lower home purchases, keeping real estate volumes depressed. Furthermore, there is limited visibility into the medium- to long-term inflow of distressed real estate volumes. Overall, we expect Auction.com?s revenues in fiscal year 2025 will be down by 5%-6%. As such, we expect the company will continue to proactively monitor its operating expenses
