Key Highlights

  • Total revenue of USD 51.92 million rose 24% year over year and topped the consensus estimate of USD 50.60 million.
  • Adjusted EPS of USD 0.13 trailed the consensus estimate of USD 0.18, while GAAP EPS showed a USD 0.12 loss.
  • Service revenue grew 26% to USD 49.8 million, and adjusted EBITDA rose 17% to USD 4.3 million.
  • Hubzu inventory climbed to 26,000 assets from 5,700 a year earlier, while 72% of service revenue came from other customers.

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) reported third quarter 2026 total revenue of USD 51.92 million, up 24% from USD 41.91 million a year earlier and above the consensus estimate of USD 50.60 million. Adjusted earnings per share of USD 0.13 rose from USD 0.10 but came in below the consensus estimate of USD 0.18. On a GAAP basis, diluted EPS was a loss of USD 0.12 compared with a loss of USD 0.22 a year earlier, and the net loss attributable to the company narrowed to USD 1.4 million from USD 2.4 million.

Customer Wins Reshape the Revenue Mix

Chairman and Chief Executive Officer Bill Shepro said customer wins continue to ramp while the business absorbs the wind down of the Rithm Cooperative Brokerage Agreement. Servicer and Real Estate revenue reached USD 37.77 million, and Origination revenue reached USD 14.15 million, with Origination service revenue up 65% to USD 14.0 million even as origination unit volume fell 6%. Revenue from customers other than Onity, Rithm and their associated portfolios grew 96% and made up 72% of service revenue, versus 46% a year ago.

Gross profit rose to USD 12.1 million from USD 11.3 million, but cost of revenue climbed 30% against 24% revenue growth. The Chief Financial Officer tied the lower gross margin to mix, since Origination grew faster than Servicer and Real Estate, while management cited continued investment in customer implementations. Adjusted EBITDA margin was 8.5%, and operating income was USD 0.76 million after SG&A of USD 11.36 million.

Management Direction and Balance Sheet Facts

Management said it anticipates higher adjusted EBITDA in the fourth quarter and projects Origination service revenue to remain strong against the prior year. The longer objective, called Project 45, targets USD 45 million of run-rate adjusted EBITDA by the fourth quarter of 2028. Management also noted that industry volumes remain below normalized levels, and that the loss of Rithm revenue and the transfer of Rithm loans serviced by Onity were headwinds in the quarter.

Interest expense was USD 2.16 million for the quarter, and total principal debt stood at USD 167.8 million, including USD 155.5 million of senior secured term loans. Unrestricted cash ended the quarter at USD 25.1 million, and the company retired USD 0.9 million of term loan opportunistically. Net cash from operations was USD 3.5 million in the quarter and USD 1.3 million for nine months.

Data Points Behind the Next Report

Several measures frame the fourth quarter. Hubzu inventory rose 16% from 22,300 assets at June 30, and homes transacted were 789 against 583 a year earlier and 710 last quarter. Wins secured since 2024 generated USD 13 million of revenue in the quarter, or USD 51.9 million annualized, while the weighted pipeline stood at USD 12.8 million for Servicer and Real Estate and USD 18.5 million for Origination.

Market data cited on the call also bear watching: seriously delinquent and foreclosure loans totaled 872,000 in August 2026, up 26% from a year earlier, and foreclosure starts for eight months were 20% higher. The Mortgage Bankers Association projects 5.3 million loan originations in 2026, up 6%.