"We are off to a strong start in 2026. For the quarter, we grew Service revenue by 10%, and pretax GAAP earnings by $4.9 million and cash provided by operating activities by $9.4 million, compared to the first quarter of 2025, primarily from sales wins and lower debt related interest and transaction costs. More importantly, we are seeing strength in both business segments. The Origination segment grew first quarter Service revenue by 71% and Adjusted EBITDA(1) by 166% compared to last year, primarily from sales wins and a stronger origination market. The Servicer and Real Estate segment is positioned extremely well with Hubzu inventory at 17,200 homes as of the end of the first quarter and exciting first quarter sales wins in the Title and Foreclosure Trustee businesses," said William B. Shepro, Chairman and Chief Executive Officer.
First Quarter 2026 Highlights(2)
Company, Corporate and Financial:
First quarter Service revenue of $45.1 million was $4.2 million, or 10%, higher than the same quarter of 2025
First quarter Income before income taxes and non-controlling interests of $0.4 million was a $4.9 million improvement compared to the same quarter of 2025
First quarter Net loss attributable to Altisource of $0.6 million was a $4.7 million improvement compared to the same quarter of 2025
First quarter Diluted loss per share of $(0.06) was a $0.68 improvement compared to the same quarter of 2025
First quarter Adjusted diluted earnings per share(1) of $0.19 was a $0.21 improvement compared to the same quarter of 2025
First quarter Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA")(1) of $4.4 million was $(0.8) million, or (15)% lower than the same quarter of 2025
First quarter Adjusted EBITDA(1) margin of 10% was lower than the 13% Adjusted EBITDA(1) margin in the same quarter of 2025 largely due to revenue mix
First quarter Cash provided by operating activities of $4.5 million was a $9.4 million improvement, compared to the same quarter of 2025, and we ended the quarter with $30.3 million of cash and cash equivalents
Business and Industry:
Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together "Business Segments") was $12.0 million, or 26.7% of Service revenue, compared to $12.5 million, or 30.5% of Service revenue, in the same quarter of 2025 primarily due to a change in revenue mix.
Generated sales wins which we estimate represent potential annualized service revenue on a stabilized basis of $12.4 million for the Servicer and Real Estate segment and $4.7 million for the Origination segment
Driven by recent sales wins, total Hubzu inventory has more than tripled since September 30, 2025
(in thousands)
September 30, 2025
December 31, 2025
March 31, 2026
Foreclosure Auction Inventory(5)
4.0
4.9
14.0
REO Inventory - Customers other than Rithm
0.7
1.4
2.3
REO Inventory - Rithm
1.0
1.0
0.9
Total Hubzu Inventory
5.7
7.3
17.2
Ended the quarter with a weighted average sales pipeline between $25.7 million and $32.1 million of potential estimated annual revenue on a stabilized basis based upon forecasted probability of closing (comprising of between $10.4 million and $13.0 million in the Servicer and Real Estate segment and between $15.3 million and $19.1 million in the Origination segment)
Industrywide foreclosure initiations were 5% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still 14% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide foreclosure sales were 27% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still 42% lower than the same pre-COVID-19 period in 2019)(3)
Industrywide mortgage origination volume increased by 42% for the three months ended March 31, 2026 compared to the same period in 2025, comprised of a 19% increase in purchase origination and a 91% increase in refinancing origination(4)
First Quarter 2026 Financial Results
Service revenue of $45.1 million
Income from operations of $1.7 million
Income before income taxes and non-controlling interests of $0.4 million
Net loss attributable to Altisource of $(0.6) million
Adjusted EBITDA(1) of $4.4 million
Diluted loss per share of $(0.06)
Adjusted diluted earnings per share(1) of $0.19
First Quarter 2026 Results Compared to the First Quarter 2025 (unaudited):
(in thousands, except per share data)
First Quarter 2026
First Quarter 2025
% Change
Service revenue
$
45,089
$
40,895
10
Revenue
47,584
43,439
10
Gross profit
13,111
13,325
(2
)
Income from operations
1,725
3,245
(47
)
Adjusted operating income(1)
4,411
5,199
(15
)
Income (loss) before income taxes and non-controlling interests
356
(4,529
)
108
Pretax income (loss) attributable to Altisource(1)
252
(4,602
)
105
Adjusted pretax income attributable to Altisource(1)
2,938
332
N/M
Adjusted EBITDA(1)
4,449
5,262
(15
)
Net loss attributable to Altisource
(635
)
(5,344
)
88
Adjusted net income (loss) attributable to Altisource(1)
2,136
(144
)
N/M
Diluted loss per share
(0.06
)
(0.74
)
92
Adjusted diluted earnings (loss) per share(1)
0.19
(0.02
)
N/M
Net cash provided by (used in) operating activities
4,453
(4,972
)
190
Net cash provided by (used in) operating activities less additions to premises and equipment(1)
4,315
(4,997
)
186
Margins:
Gross profit / service revenue
29
%
33
%
Adjusted EBITDA(1) / service revenue
10
%
13
%
______________________N/M, not meaningful.
•
First quarter 2025 loss before income taxes and non-controlling interests includes $3.0 million of Debt Exchange Transaction expenses (no comparative amount for the first quarter 2026).
________________________
(1)
This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein
(2)
Applies to the first quarter 2026 unless otherwise indicated
(3)
Based on data from ICE's Mortgage Monitor and First Look reports with data through February 2026
(4)
Based on estimated number of loans originated as reported by the Mortgage Bankers Association's Mortgage Finance Forecast dated March 23, 2026
(5)
Altisource does not provide foreclosure auction services to Rithm
Forward-Looking Statements
This press release 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 financial / operating performance or financial condition. These statements may be identified by words such as "anticipate," "intend," "expect," "may," "could," "should," "would," "will," "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 filed with the Securities and Exchange Commission ("SEC") on March 4, 2026. 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 customer concentration, impacts to default related referrals 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 debt agreements, 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 press release 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, except as required by law.
Webcast
Altisource will host a webcast at 08:30 a.m. EDT today to discuss our first quarter. A link to the live audio webcast will be available on Altisource's website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Altisource®
Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets it serves. Additional information is available at www.altisource.com.
FOR FURTHER INFORMATION CONTACT:
Michelle D. EstermanChief Financial OfficerT: (770) 612-7007E: [email protected]
ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(in thousands, except per share data)(unaudited)
Three months ended March 31,
2026
2025
Service revenue
$
45,089
$
40,895
Reimbursable expenses
2,391
2,471
Non-controlling interests
104
73
Total revenue
47,584
43,439
Cost of revenue
34,473
30,114
Gross profit
13,111
13,325
Selling, general and administrative expenses
11,386
10,080
Income from operations
1,725
3,245
Other income (expense), net:
Interest expense
(2,109
)
(4,938
)
Debt exchange transaction expenses
—
(2,980
)
Other income (expense), net
740
144
Total other income (expense), net
(1,369
)
(7,774
)
Income (loss) before income taxes and non-controlling interests
356
(4,529
)
Income tax provision
(887
)
(742
)
Net loss
(531
)
(5,271
)
Net income attributable to non-controlling interests
(104
)
(73
)
Net loss attributable to Altisource
$
(635
)
$
(5,344
)
Loss per share:
Basic
$
(0.06
)
$
(0.74
)
Diluted
$
(0.06
)
$
(0.74
)
Weighted average shares outstanding:
Basic
11,111
7,265
Diluted
11,111
7,265
Comprehensive loss:
Net loss
$
(531
)
$
(5,271
)
Comprehensive income attributable to non-controlling interests
(104
)
(73
)
Comprehensive loss attributable to Altisource
$
(635
)
$
(5,344
)
ALTISOURCE PORTFOLIO SOLUTIONS S.A.CONSOLIDATED BALANCE SHEETS(in thousands, except for per share data)(unaudited)
March 31,2026
December 31,2025
ASSETS
Current assets:
Cash and cash equivalents
$
30,340
$
26,603
Accounts receivable, net of allowance for credit losses of $1,855 and $2,492, respectively
20,691
17,984
Prepaid expenses and other current assets
7,799
9,690
Total current assets
58,830
