Altisource Portfolio S A : Q1 2026 Earnings Slides

Published: 2026-04-23 07:30:16 ET ASPS

Published on 04/23/2026 at 07:30 am EDT

ALTISOURCE PORTFOLIO SOLUTIONS

F I R S T Q U A R T E R 2026

S U PP L E ME N T A R Y IN F O R MA T IO N

N O N - G AA P ME A S U R E S

Adjusted operating income, pretax (loss) income attributable to Altisource, adjusted pretax income attributable to Altisource, adjusted net (loss) income attributable to Altisource, adjusted diluted (loss) earnings per share, earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, and Segment Adjusted EBITDA, which are presented elsewhere in this presentation, are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource's performance and do not purport to be alternatives to income from operations, (loss) income before income taxes and non-controlling interests, net (loss) income attributable to Altisource, and diluted loss per share as measures of Altisource's performance. We believe these measures are useful to management, existing shareholders, potential shareholders and other users of our financial information in evaluating operating profitability and cash flow generation more on the basis of continuing cost and cash flows as they exclude amortization expense related to acquisitions that occurred in prior periods and non-cash share-based compensation, as well as the effect of more significant non-operational items from earnings, and cash flows from operating activities. We believe these measures are also useful in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management's evaluation of business performance.

Furthermore, we believe the exclusion of more significant non-operational items enables comparability to prior period performance and trend analysis.

It is management's intent to provide non-GAAP financial information to enhance the understanding of Altisource's GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. The non-GAAP financial information should not be unduly relied upon.

These non-GAAP measures are presented as supplemental information and reconciled to the appropriate GAAP measures in the Appendix.

F IR S T Q U A R T E R 2026 H IG H L IG H T S

Grew Service revenue and pretax GAAP earnings compared to Q1 2025 from sales wins and lower debt-related interest and transaction costs

Strength in both Business Segments1

− Origination segment Service revenue and Adjusted EBITDA2 growth accelerated from sales wins and a stronger origination market

− Servicer and Real Estate segment is positioned extremely well with Hubzu inventory at 17,200 homes as of March 31, 2026 and exciting first quarter sales wins in the Title and Foreclosure Trustee businesses

1 Business Segments collectively refer to the Servicer and Real Estate segment and the Origination segment

2 This is a non-GAAP measure defined and reconciled in the Appendix

TOTA L C O MPA N Y F IN A N C IA L P E R F O R MA N C E

$45.1

$40.9 $40.8

$39.7

$39.9

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

$8.5

$8.8

$8.0

$9.8

$13.7

$30.1

$31.2

$32.0

$32.9

$31.4

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

28.5%

$11.4

27.5%

$10.9

26.7%

$12.0

31.5%

$12.9

30.5%

$12.5

Q1 2026 Service revenue was $45.1 million, a 10% increase

Service revenue growth driven by 71% growth in the Origination segment primarily from sales wins in our Lenders One business

Origination segment revenue growth is partially offset by a 5% Service revenue decline in the Servicer and Real Estate

($7.2) ($7.5) ($7.3)

($7.3)

($7.6)

-17.6% -18.3% -18.3% -18.4% -16.8%

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Business Segments Margin

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

$3.6

9.1%

10.1%

$4.0

9.9%

$4.4

13.2%

$5.4

12.9%

$5.3

segment primarily from a one-time 2025 pricing adjustment benefit in our Foreclosure Trustee business

Total Company Adjusted EBITDA1 declined by

$0.8 million due to revenue mix, including higher revenue in the lower margin Origination segment, lower revenue in the Servicer and Real Estate segment and modestly higher Corporate costs

Note: Charts above present $ in millions and profitability measures as a % of Service revenue

1 This is a non-GAAP measure defined and reconciled in the Appendix

TOTA L C O MPA N Y F IN A N C IA L P E R F O R MA N C E

($4.5)

$0.2

$0.4

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

($8.1)

($1.7)

$0.7

($0.3)

($0.5)

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

($5.0)

$4.5

Generated GAAP income before income taxes and non-controlling interests of $0.4 million compared to a $4.5 million loss in Q1 2025

− Improvement primarily attributable to lower interest expense and debt exchange transaction expenses incurred in 2025

Net cash provided by operating activities was

$4.5 million, a $9.4 million improvement compared to Q1 2025

$30.3 million in unrestricted cash at March 31, 2026

Note: Charts above present $ in millions

1 Net Cash provided by (used in) Operating Activities includes $3.0 million, $0.5 million, and $0.2 million of debt exchange transaction expenses for Q1 2025, Q2 2025 and Q3 2025, respectively. Q1 2025 net cash used in operating activities also includes $1.2 million of higher cash interest expense related to the prior debt agreement

S E R V IC E R A N D R E A L E S TAT E S E G ME N T

$32.9

$32.0

$31.2

$30.1

$31.4

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Service revenue of $31.4 million decreased 5% primarily due to a one-time 2025 pricing adjustment benefit in our Foreclosure Trustee business and lower volume in our Renovation business

Adjusted EBITDA1 decreased by 10% to $10.8 million, primarily from lower revenue in the Foreclosure Trustee business

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

37.3%

$11.2

36.1%

$11.3

38.6%

$12.1

38.5%

$12.3

40.5%

$13.3

32.1%

$10.0

34.5%

$10.8

35.5%

$10.7

37.4%

$12.0

36.5%

$12.0

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Note: Charts above present $ in millions and profitability measures as a % of Segment Service revenue

1 This is a non-GAAP measure defined and reconciled in the Appendix

S E R V IC E R A N D R E A L E S TAT E - S A L E S P IP E L IN E A N D W INS

Weighted Average Pipeline Estimated Revenue - End of Quarter

Estimated Annualized Service Revenue on a Stabilized Basis

$29.4

$19.3

$11.7

Q4'24 Q4'25 Q1'26

$25.8

$20.6

$12.4

$7.9

$19.4

2024 2025 Q1'26

Service Revenue Generated from Sales Wins

$3.8

$4.9

2024 2025 Q1'26 Q1'26 Annualized

Note: $ in millions. Numbers may not sum due to rounding

1 Sales pipeline represents a weighted estimate of the annualized revenue on a stabilized basis from the sales pipeline at the end of the applicable quarter. The pipeline can and will change based on won and lost deals, new prospects, pipeline funnel stage changes, stabilized revenue estimate changes, weighted revenue estimate changes and additional information. Actual results could differ materially from the estimates. Sales wins are removed from the sales pipeline in the quarter in which the applicable contract for the business is executed

2 Q1'26 weighted sales pipeline represents $10 million to $13 million in annual revenue on a stabilized basis based upon the Company's forecasted probability of closing

3 Sales wins represent an estimate of the annualized revenue on a stabilized basis from the total sales wins in the applicable year / quarter. It is anticipated that stabilized revenue could be achieved after an initial ramp-up period for most sales wins. The time period for the Company to begin to realize revenue on a stabilized basis, if at all, from a sales win can significantly vary based on a variety of conditions, including those related to the applicable client, the subject service, the applicable industry and the broader economy. Actual results could differ materially from applicable estimates. A sales win is included in the estimate of the applicable quarter in which the applicable contract for the business is executed. Estimates are not updated to reflect revenue recognized or changes to estimated revenue subsequent to the sales wins. Recognized revenue from sales wins is set forth in Growth in Service revenue

4 Represents Service revenue recognized in the applicable period from FY 2024, FY 2025 and FY 2026 sales wins

G R O W IN G H U B Z U IN V E N TO R Y

17.2

•

Recently onboarded two Q4 2025 Hubzu wins:

REO asset management and foreclosure auction

agreement with a residential loan servicer

CWCOT2 first chance foreclosure auction

agreement with an existing customer

14.0

Hubzu inventory of 17,200 assets has more than tripled since September 30, 2025

5.7

7.3

+186%

− Rithm assets represent 5.4% of total Hubzu inventory at March 31, 2026

4.0

0.7

+22%

+97%

4.9

1.4

+64%

2.3

We anticipate revenue from these wins to grow

during the year as REO and foreclosure referrals proceed to sale

1.0

0.9

Sept 30, 2025 Dec 31, 2025 Mar 31, 2026

1 Altisource does not provide foreclosure auction services to Rithm Capital Corp. ("Rithm")

2 Claims Without Conveyance of Title

O R IG IN AT IO N S E G ME N T

$13.7

$9.8

$8.8

$8.5

$8.0

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Service revenue of $13.7 million was 71% higher than Q1 2025

Adjusted EBITDA1 more than doubled to $1.2 million

Acceleration of the Origination segment's Service revenue and Adjusted EBITDA1 growth reflects sales wins and a stronger market

$1.6

19.8%

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

$1.7

17.2%

$1.7

19.8%

$2.3

26.2%

$2.6

18.9%

$0.5

5.8%

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

$0.7

7.1%

$0.9

10.3%

$0.9

10.1%

$1.2

9.0%

Note: Charts above present $ in millions and profitability measures as a % of Segment Service revenue

1 This is a non-GAAP measure defined and reconciled in the Appendix

O R IG IN AT IO N - S A L E S P IP E L IN E A N D W INS

Weighted Average Pipeline Estimated Revenue - End of Quarter

Estimated Annualized Service Revenue on a Stabilized Basis

Service Revenue Generated from Sales Wins

$17.2

$14.9

$13.2

Q4'24 Q4'25 Q1'26

$20.9

$12.6

$4.7

$3.7

$12.3

$29.8

2024 2025 Q1'26

$7.4

2024 2025 Q1'26 Q1'26 Annualized

Note: $ in millions. Numbers may not sum due to rounding

2 Q1'26 weighted sales pipeline represents $15 million to $19 million in annual revenue on a stabilized basis based upon the Company's forecasted probability of closing

4 Represents Service revenue recognized in the applicable period from FY 2024, FY 2025 and FY 2026 sales wins

C O R P O R AT E A N D OT H E R S S E G ME N T

Corporate and Others Adjusted EBITDA1 Loss

Q1 2026 Corporate Adjusted EBITDA1 loss of

$7.6 million reflects a modest increase compared to Q1 2025

We believe Corporate costs should remain relatively stable as revenue grows

Corporate and Others includes costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, and eliminations between reportable segments

-18.4%

-18.3%

($7.3)

-17.6%

($7.2)

-16.8%

($7.6)

-18.3%

($7.5)

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Note: Chart above presents $ in millions and Corporate and Others Adjusted EBITDA1 Loss as a percentage of total Company Service revenue

1 This is a non-GAAP measure defined and reconciled in the Appendix

B U S IN E SS E N V IR O N ME N T

90+ day mortgage delinquency rates, including loans in foreclosure:

− Increased to 1.60% in February 2026 (1.45% in December 2025)

90+ day delinquent mortgages, excluding loans in foreclosure:

− Increased to 612,000 in February 2026 (9% increase since year end 2025)

Foreclosure starts and sales for January and February 2026 were 5% and 27% higher, respectively, than the same period in 2025*; we believe this is primarily due to:

− Rising delinquency rates,

− Softening real estate market, and

− Q4 2025 implementation of the April 2025 FHA Mortgagee Letter

Q1 2026 industrywide mortgage origination unit volume increased 42% compared to Q1 2025

− Refinance unit volume increased 91%

− Purchase unit volume increased 19%

MBA projects 5.7 million loans will be originated in 2026 (4% growth over 2025)

− Refinance unit volume projected to increase 7%

− Purchase unit volume projected to increase 2%

8.8

8.3

3.4

2.2

2.0

1.0

0.8

2.3

3.5

3.4

3.5

3.4

4.4

5.2

4.9

13.7 13.5

7.8

*These metrics remain significantly below pre-pandemic levels

6.7

4.2 4.6

5.5 5.7

1 Per ICE Mortgage Monitor and First Look reports with data through February 2026

2 MBA Mortgage Finance Forecast dated March 23, 2026, as well as historical forecasts; Total 1-to 4-Family (000s loans)

2019 2020 2021 2022 2023 2024 2025 2026 (F)

C O N C LU S IO N

10% Service revenue growth and exciting sales wins that should support future growth

Improved pre-tax GAAP earnings by $4.9 million and cash provided by operating activities by $9.4 million compared to Q1 2025

As the year progresses, we believe:

− Onity1 and Rithm will continue to become a smaller percentage of our revenue base

− Total Company Service revenue and Adjusted EBITDA2 will be more balanced between our Business Segments

1 Onity Group Inc. (together with its subsidiaries, "Onity") (formerly Ocwen Financial Corporation, or "Ocwen")

2 This is a non-GAAP measure defined and reconciled in the Appendix

A P P E N D I X

F IR S T Q U A R T E R 2026 F IN A N C IA L R E S U LT S

$ millions (except per share data)

Q1 2025

Q1 2026

Vs. Q1 2025

Service revenue

$ 40.9

$ 45.1

10%

Revenue

43.4

47.6

10%

Gross profit

13.3

13.1

(2%)

Income from operations

3.2

1.7

(47%)

Adjusted operating income1

5.2

4.4

(15%)

(Loss) income before income taxes and non-controlling interests

(4.5)

0.4

108%

Pretax (loss) income attributable to Altisource1

(4.6)

0.3

105%

Adjusted pretax income attributable to Altisource1

0.3

2.9

N/M

Adjusted EBITDA1

5.3

4.4

(15%)

Net loss attributable to Altisource

(5.3)

(0.6)

88%

Adjusted net (loss) income attributable to Altisource1

(0.1)

2.1

N/M

Diluted loss per share2

(0.74)

(0.06)

92%

Adjusted diluted (loss) earnings per share1

(0.02)

0.19

N/M

Gross profit / Service revenue

33%

29%

Adjusted EBITDA1 / Service revenue

13%

10%

N/M - Not meaningful

1 This is a non-GAAP measure defined and reconciled in the Appendix

2 Stock options, restricted shares and restricted share units were excluded from the computation of diluted loss per share because their impact would be anti-dilutive

O P E R AT IN G ME T R IC S

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Service revenue2 per delinquent loan3 per quarter

Non-GSE and Non-FHA

$ 288

$ 246

$ 275

$ 262

$ 316

$ 331

$ 328

$ 308

$ 380

$ 426

$ 381

$ 308

$ 307

GSE and FHA

$ 161

$ 166

$ 199

$ 180

$ 175

$ 181

$ 170

$ 191

$ 235

$ 241

$ 288

$ 241

$ 265

Average number of delinquent loans serviced by Onity

Non-GSE and Non-FHA (in thousands)

GSE and FHA (in thousands)

Average delinquency rate of loans serviced by Onity

Non-GSE and Non-FHA

14.7%

14.1%

13.7%

13.4%

12.5%

12.3%

11.4%

10.6%

10.1%

10.5%

11.7%

12.3%

GSE and FHA

1.7%

1.6%

1.7%

1.9%

2.1%

1.9%

1.6%

1.4%

1.5%

1.6%

Provisional loan count serviced by Onity as of the end of the period

Non-GSE and Non-FHA (in thousands)

481

473

464

460

456

449

439

478

431

428

437

441

424

GSE and FHA (in thousands)

790

764

792

777

824

835

817

806

848

877

874

906

939

1 Amounts presented herein for Q1'23 through Q1'26 are based on all forward loans serviced by Onity; information contained herein is based upon information reported to us by Onity. Delinquency rates include loans in forbearance programs

2 Includes Service revenue related to the portfolios serviced or subserviced by Onity when a party other than Onity or Rithm selects Altisource as a service provider. Service revenue generated from certain services is not recorded separately for Non-GSE/Non-FHA and GSE/FHA loans. For these services, Service revenue has been allocated between Non-GSE/Non-FHA and GSE/FHA loans based on estimates

3 Delinquent loans include loans that are delinquent for more than 30 days including loans in bankruptcy, foreclosure and REO

O P E R AT IN G ME T R IC S

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24

Q2'24

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Hubzu1:

Service revenue (in millions)2

$ 7.7

$ 7.1

$ 5.8

$ 7.1

$ 7.3

$ 6.4

$ 6.0

$ 6.6

$ 6.4

$ 5.7

$ 5.6

$ 6.6

Number of homes sold on Hubzu:

Onity serviced portfolios3

599

567

556

443

494

505

431

398

410

435

391

369

381

All other

218

219

193

189

200

211

196

202

187

200

192

180

199

Total

817

786

749

632

694

716

627

600

597

635

583

549

580

1 Hubzu is a collection of businesses that includes asset management, real estate brokerage, auction and Hubzu.com

2 Revenue from Onity or Rithm homes sold on Hubzu is also reflected in Service revenue per delinquent loan per quarter reported in the previous slide

3 Includes the portfolios acquired (or anticipated to be acquired) by Rithm from Onity. Beginning in Q1'25, we receive certain referrals directly from Rithm's servicing platform

H U B Z U IN V E N TO R Y

17.2

3.7

10.4

6.8

6.3

6.2

6.5

7.3

6.2

5.0

5.7

6.0

5.7

13.4

3.6

2.6

4.1

3.6

3.5

3.7

4.1

3.8

3.3

3.6

2.4

2.2

2.7

2.2

2.4

3.7

Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

IN D U S T R Y W ID E F O R E C LO S U R E S TA R TS

Foreclosure Starts

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

Shaded area represents period of borrower relief measures

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25

90+ DQ rate

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

In response to the COVID-19 pandemic, borrowers were provided various relief measures, including foreclosure and eviction moratoriums, forbearance programs and loss mitigation measures

− These relief measures largely expired at the end of 2021

Following the expiration of these measures, foreclosure starts grew, but remain below pre-pandemic levels

− 2025 foreclosure starts were 19% lower than 2019

− January and February 2026 foreclosure starts were 14% lower than the same period in 2019

The increase in foreclosure starts since Q1 2022 drove higher referrals for our pre-foreclosure and foreclosure solutions

Should foreclosure start levels increase, there is a significant opportunity for revenue growth in our pre-foreclosure and foreclosure solutions, with upside in a higher delinquency rate environment

Source: ICE Mortgage Monitor and First Look Reports with data from January 2018 through February 2026

Disclaimer

Altisource Portfolio Solutions SA published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 11:29 UTC.