10-Q · April 23, 2026
Altisource reported service revenue growth of 10% to $45,089,000 for Q1 2026, driven by a 71% increase in the Origination segment. Profitability improved vs prior year with diluted loss per share narrowing to $(0.06),…
Earnings analysis · 10-Q
ASPS earnings analysis
Filed July 23, 2026 · Our reading of the company's report
The latest report
Altisource posted solid Q2 top-line growth, with total revenue up 17% to $50.663 million, driven principally by a 62% increase in Origination service revenue. However, growth was lower quality from a profitability…
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Altisource posted solid Q2 top-line growth, with total revenue up 17% to $50.663 million, driven principally by a 62% increase in Origination service revenue. However, growth was lower quality from a profitability perspective: gross margin fell 6 percentage points to 26%, operating margin declined 6 points to 2%, and diluted EPS was a $0.05 loss. Liquidity remains a central watch item as first-half cash fell to $24.584 million, although operating cash burn improved and the company reduced debt at a discount.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.05
What stood out
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Revenue growth accelerated in Q2
Q2 total revenue rose 17% year over year to $50.663 million, and service revenue grew 19% to $48.730 million. Revenue also increased from $48 million in Q1 2026.
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Origination delivers strong top-line growth
Origination service revenue increased 62% to $14.328 million, led by Lenders One revenue growth of 83% to $12.601 million. Management attributed the increase to Lenders One sales wins and a stronger origination market.
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Servicer segment returns to growth
Servicer and Real Estate service revenue increased 8% to $34.402 million, with Marketplace up 16% to $7.451 million and Solutions up 7% to $24.771 million.
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Debt actions reduced financing burden
Interest expense declined 19% to $2.129 million, while the company repurchased $2.0 million of New Facility debt at a 23.7% discount and recorded a $0.696 million extinguishment gain.
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Operating cash burn improved
Six-month operating cash outflow improved to $2.177 million from $5.278 million in the prior-year period. Investing cash use was limited to $0.369 million, indicating modest capital-spending intensity.
What to watch
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Revenue growth came with sharp margin compression
Gross margin on service revenue fell to 26% from 32% a year earlier, while operating margin declined to 2% from 8%. Higher Lenders One reseller revenue mix and costs for newer Hubzu and Foreclosure Trustee operations drove the compression.
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Company returned to a quarterly loss
Diluted EPS was a $0.05 loss versus earnings of $1.48 in Q2 2025, and net loss attributable to Altisource was $0.562 million versus $16.582 million of income. The prior-year result included a $16.471 million tax benefit, but current profitability remains weak.
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Cash declined amid substantial debt obligations
Cash, cash equivalents and restricted cash declined $5.909 million in the first half to $24.584 million. Operating activities consumed $2.177 million and financing activities consumed $3.363 million, while future debt principal and estimated interest payments total $215.773 million.
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Customer concentration and Rithm transfer risk
Onity represented 29% of Q2 revenue, and Onity reported $29.7 billion of Rithm MSRs and rights to MSRs as of March 31, 2026. Management says the Rithm servicing transfer and Onity-related developments will reduce Altisource revenue and adversely affect results.
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New risk: third-party reseller dependency
The updated risk factors add dependency on third-party products, platforms and data providers. This is material to a rapidly growing Origination business where Lenders One generated $12.601 million of Q2 service revenue, up 83%.
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New risk: REO volumes and execution metrics
The updated REO risk factor warns that lower foreclosures, REO supply or REO sales can lower demand and impede contractual service metrics. Industry foreclosure sales were 19% higher year over year but remained 42% below the comparable 2019 period.
Management's outlook
The 10-Q provides no explicit quantitative forward revenue or EPS guidance. Management states it anticipates funding future liquidity needs with existing cash and cash anticipated from operating activities.
Earlier filings 4
10-K · March 4, 2026
Altisource (ASPS) reports improving operating results in 2025: service revenue grew 7% to $161.3 million, full-year net income attributable to Altisource was $1.6 million and diluted EPS was $0.15. Management closed a…
10-Q · October 23, 2025
Altisource reported Q3 2025 total revenue of $41.908M (up 3% YoY) and service revenue of $39.666M (up 4% YoY). Gross margin contracted to 29% (from 32% a year ago) and operating income fell to $0.521M (1% of service…
10-Q · May 1, 2025
Altisource reported higher revenue and a meaningful operating turnaround for the quarter ended March 31, 2025: total service revenue was $40.9M (up 11% YoY) and income from operations turned to $3.245M (8% of service…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.