Altisource Portfolio Solutions reported a sharp increase in third-quarter service revenue, alongside improved adjusted earnings and a narrower net loss. The real estate and mortgage services provider said growth was supported by new customer wins, with revenue from customers other than Onity and Rithm rising faster than overall revenue.
The company also cited early gains from artificial intelligence and other efficiency efforts, and reiterated its goal of reaching $45 million in run-rate adjusted EBITDA by the fourth quarter of 2028.
Key details
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Service revenue rose 26% year over year to $49.8 million, an increase of $10.2 million. Altisource said service revenue and adjusted EBITDA grew year over year in both of its segments.
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Revenue from customers outside Onity and Rithm increased 96% from a year earlier and accounted for 72% of service revenue in the quarter. Management attributed the broader growth to customer wins that are continuing to ramp.
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Adjusted EBITDA was $4.3 million, up 17%, or $600,000, from the third quarter of 2025. Adjusted diluted earnings per share increased to $0.13 from $0.10.
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The adjusted EBITDA margin was 8.5%, down from 9.1% a year earlier. Altisource attributed the decline to changes in revenue mix and continued investment in growth, partly offset by stable corporate costs as revenue increased.
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The company’s net loss attributable to Altisource narrowed to $1.4 million, an improvement of $1.0 million. Its loss before income taxes and non-controlling interests was $993,000, down by about $700,000. Diluted loss per share improved to $0.12 from $0.22.
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Operating cash flow was $3.5 million, up $2.8 million from the year-earlier quarter. Altisource ended September with $25.1 million in cash and cash equivalents.
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Debt repurchases generated a $1.0 million gain on early extinguishment for the first nine months of 2026. The company repurchased $2.0 million of debt in the second quarter and $900,000 in the third quarter under its New Facility; both purchases were made at a 23.7% discount.
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Altisource’s Project 45 target is $45 million in run-rate adjusted EBITDA by the fourth quarter of 2028. Chief Executive William Shepro pointed to the continued ramp-up of customer wins, operating leverage and cost discipline as key elements of that goal. He said AI and other efficiency initiatives had begun speeding product development and are expected to support scalability and operating leverage in coming quarters.
Plain-English implications
Altisource’s revenue growth is increasingly coming from customers beyond Onity and Rithm, while adjusted EBITDA also improved. However, its adjusted margin was lower than a year ago, and the company remained loss-making on a reported basis. The announced debt buybacks reduced outstanding debt at a discount and produced an accounting gain.