Altisource Portfolio Solutions (ASPS) Q1 2026 earnings summary

Executive summary

• Service revenue grew 10% year-over-year to $45.1 million, driven by 71% growth in the Origination segment and major sales wins, while total revenue reached $47.6 million.

• Net loss attributable to shareholders narrowed to $0.6 million from $5.3 million in Q1 2025, reflecting improved operating performance and lower interest and transaction expenses.

• Pre-tax GAAP income improved to $0.4 million from a $4.5 million loss in Q1 2025, mainly due to lower interest and transaction costs.

• Both business segments showed strength, with significant sales wins, robust pipelines, and Hubzu inventory more than tripling since September 2025.

• Onity remained the largest customer, accounting for 37% of total revenue, but faces regulatory and client concentration risks, including the loss of a major subservicing agreement with Rithm effective January 2026.

Financial highlights

• Service revenue: $45.1 million (+10% YoY); total revenue: $47.6 million (+10% YoY); Origination segment up 71% to $13.7 million; Servicer and Real Estate segment down 5% to $31.4 million.

• Gross profit: $13.1 million (29% margin, down from 33% YoY); adjusted EBITDA: $4.4 million (10% margin, down from 13% YoY); business segments adjusted EBITDA: $12.0 million (26.7% margin).

• Net loss attributable to shareholders narrowed to $0.6 million from $5.3 million; adjusted diluted EPS improved to $0.19 from $(0.02).

• Net cash provided by operating activities was $4.5 million, a $9.4 million improvement year-over-year; unrestricted cash at quarter-end was $30.3 million.

• Weighted average interest rate on long-term debt was 7.31% (down from 8.75%); net debt was $140.9 million as of March 31, 2026.

Outlook and guidance

• Anticipates continued momentum and strong full-year service revenue growth in both segments, supported by sales wins and increased Hubzu inventory.

• Management expects more balanced revenue and adjusted EBITDA between business segments as the year progresses.

• Forecasts positive operating cash flow for the year, with cash flow expected to become more balanced between segments.

• Weighted average sales pipeline estimated between $25.7 million and $32.1 million in annualized revenue on a stabilized basis.

• Focus on cost control, new solution launches, and customer diversification to offset market headwinds.