Altisource Portfolio Solutions reported higher revenue and adjusted profitability for the third quarter of 2026, while still posting a net loss. The real estate and mortgage services company said new customer wins drove growth, and that revenue from customers other than Onity and Rithm now makes up most of its service revenue.
Management also tied customer growth, efficiency efforts and cost discipline to Project 45, its goal of reaching $45 million in annualized adjusted EBITDA by the fourth quarter of 2028.
Key details
- 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 business segments.
- Revenue from customers outside Onity and Rithm increased 96% from a year earlier and accounted for 72% of service revenue.
- The company remained unprofitable on a reported basis, but its losses narrowed. Net loss attributable to Altisource was $1.4 million, an improvement of $1.0 million year over year. Loss before income taxes and non-controlling interests was $993,000, down by $700,000.
- Diluted loss per share improved to 12 cents from 22 cents a year earlier. Adjusted diluted earnings per share, a non-GAAP measure, rose 30% to 13 cents.
- Adjusted EBITDA increased 17% to $4.3 million. Its margin slipped to 8.5% from 9.1%, which the company attributed to changes in revenue mix and continued investment in growth. Stable corporate costs as revenue grew partly offset those pressures.
- Operating cash flow was $3.5 million, up $2.8 million from the prior-year quarter; the company said almost all of the increase came from the improvement in net loss. Cash and cash equivalents totaled $25.1 million at quarter-end.
- Altisource repurchased debt at a discount. It bought back $2.0 million of debt in the second quarter and $900,000 in the third quarter, each at a 23.7% discount. For the first nine months of 2026, those transactions generated a $1.0 million gain on early debt extinguishment.
- Chief Executive William B. Shepro said AI and other efficiency initiatives had begun speeding product development and are expected to support scalability and operating leverage in coming quarters. He described customer growth, operating leverage and cost discipline as central to Project 45.
Plain-English implications
Altisource’s growth is increasingly coming from customers other than Onity and Rithm, while the quarter’s higher adjusted EBITDA and narrower losses show improved performance alongside continued reported losses. The company’s $45 million adjusted EBITDA target is a management goal for late 2028, not a current result.