ASPS · Altisource Portfolio Solutions S.A.

Altisource's first quarter 2026 results reflect a strong operational start to the year, with service revenue growing 10% year-over-year to $45.1 million, driven by sales wins and a stronger origination market. The Origination segment was a standout, with service revenue up 71% and Adjusted EBITDA up 166% compared to the prior year. The Servicer and Real Estate segment also showed strength, as Hubzu inventory more than tripled to 17,200 homes since September 2025, and the company reported exciting sales wins in Title and Foreclosure Trustee businesses. Despite the revenue growth, gross profit margin declined to 29% from 33%, and Adjusted EBITDA margin fell to 10% from 13%, primarily due to revenue mix. Net loss attributable to Altisource improved by $4.7 million to $(0.6) million, and diluted loss per share improved to $(0.06) from $(0.74). On an adjusted basis, diluted earnings per share were $0.19, a $0.21 improvement. Cash provided by operating activities surged $9.4 million to $4.5 million, and the company ended the quarter with $30.3 million in cash. Management highlighted a weighted average sales pipeline of $25.7 million to $32.1 million in potential annual revenue, and industry tailwinds from higher foreclosure initiations and mortgage origination volumes. The company's debt exchange transaction expenses of $3.0 million in the prior year did not recur, aiding year-over-year comparisons. Overall, the results indicate successful execution on sales wins and improving market conditions, though margin compression remains a watchpoint.