Key Highlights

  • Total service Revenue grew 26% year-over-year to $49.8 million in Q3 2026
  • Revenue from customers outside Onity and Rithm surged 96%, now representing 72% of total service revenue
  • Hubzu foreclosure auction inventory quadrupled year-over-year to 22,900 units, up 16% from Q2
  • Adjusted EBITDA improved 17% to $4.3 million; adjusted EPS of $0.13 rose 30% from Q3 2025

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), a marketplace for real estate and Mortgage services, reported third-quarter 2026 results that underscore a deliberate pivot away from concentration in two primary customers. Service revenue of $49.8 million represented a 26% increase from the year-prior period, while the company's key Diversification metric — revenue from clients other than Onity and Rithm — expanded by 96% year-over-year, now accounting for 72% of the total service revenue base.

Revenue Diversification Reshapes the Business Mix

The structural shift in Altisource's customer base reflects years of Investment in expanding the company's marketplace model beyond legacy servicer relationships. Management noted that customer wins continued to ramp during the quarter, with estimated potential annualized service revenue from sales wins of $2.7 million in the Servicer and Real Estate segment and $6.3 million in the Origination segment. The Hubzu online property marketplace saw its foreclosure auction inventory climb to 22,900 units at quarter-end, a 16% sequential increase and more than a fourfold jump from September 2025, reflecting a recovery in foreclosure pipeline volumes and the company's ability to capture market share.

Earnings and Cash Flow Metrics Show Incremental Improvement

Adjusted diluted Earnings per share of $0.13 improved $0.03, or 30%, from the third quarter of 2025, while net loss attributable to Altisource narrowed by $1.0 million to $(1.4) million. Adjusted EBITDA of $4.3 million was 17% above the prior-year period, though adjusted EBITDA Margin of 8.5% dipped modestly from 9.1% in Q3 2025, reflecting revenue mix changes and continued investment spending. Cash provided by Operating Activities reached $3.5 million for the quarter, a $2.8 million improvement year-over-year, with the company ending the period with $25.1 million in cash and cash equivalents. Management also recognized a $1.0 million gain from early Debt extinguishment during the nine months ended September 30, 2026.

Project 45 Provides Roadmap to Profitability

Altisource reaffirmed its strategic objective it calls Project 45 — reaching $45 million in run-rate adjusted EBITDA by the fourth quarter of 2028. CEO William Shepro highlighted that AI and other efficiency initiatives are accelerating product development speed, with anticipated benefits to Operating Leverage materializing in upcoming quarters. The company's business segment adjusted EBITDA of $11.3 million, or 22.8% of service revenue, was up from $10.9 million in the year-ago period, though margin narrowed from 27.5% due to ongoing investment and mix effects.

As seasoned customer wins continue to ramp alongside operating leverage improvements and disciplined cost management, Altisource's trajectory points toward the EBITDA targets embedded in Project 45. The path will require consistent execution against a portfolio-driven revenue model that is increasingly less dependent on any single mortgage servicer.