Altisource Portfolio Solutions (ASPS) Q2 2026 earnings summary

Executive summary

• Service revenue grew 19% year-over-year to $48.7 million in Q2 2026, with both business segments contributing and customer wins offsetting lost business from Onity and Rithm.

• Customer diversification improved, with 65% of service revenue from non-Onity/Rithm clients, the highest since 2009.

• AI and efficiency initiatives were deployed to enhance product development speed, margins, and support future EBITDA growth.

• Net cash used in operating activities was $6.6 million, mainly due to increased receivables from revenue growth.

• Debt was reduced by $2.0 million at a 23.7% discount, resulting in a $0.7 million gain.

Financial highlights

• Q2 2026 service revenue was $48.7 million, up 19% year-over-year and 8% sequentially.

• Gross profit margin declined to 26% from 32% year-over-year.

• Adjusted EBITDA was $4.4 million (9% margin), down 18% year-over-year.

• Net loss attributable to shareholders was $0.6 million, impacted by the absence of a prior year $18.5 million tax benefit.

• Ended the quarter with $23.2 million in unrestricted cash.

Outlook and guidance

• Expect roughly flat Adjusted EBITDA in Q3 and higher in Q4 2026, driven by sales wins and efficiency initiatives.

• Targeting $45 million run rate Adjusted EBITDA by Q4 2028.

• Positioned to benefit from potential increases in delinquency rates or origination volumes.

• Customer concentration from Onity and Rithm expected to decline further and stabilize by Q4.