Altisource Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Altisource (NASDAQ: ASPS) reported Q1 2026 results showing service revenue $45.1M (+10% vs Q1 2025) and adjusted EBITDA $4.4M (10% margin). Cash provided by operations was $4.5M, a $9.4M improvement, and the company ended the quarter with $30.3M cash.
Origination segment Service revenue grew 71% and Adjusted EBITDA rose 166%. Hubzu inventory rose to 17,200 homes, more than triple since Sept 30, 2025.
Positive
- Origination Service revenue +71% year-over-year
- Origination Adjusted EBITDA +166% year-over-year
- Cash provided by operations improved by $9.4M
- Hubzu inventory increased to 17,200 homes (3x since Sept 30, 2025)
- Adjusted pretax income attributable to Altisource improved to $2.94M (adjusted)
Negative
- Company Adjusted EBITDA down 15% year-over-year
- Adjusted EBITDA margin declined from 13% to 10% (300 bps)
- Income from operations decreased 47% versus Q1 2025
- Revenue mix reduced consolidated margin performance
News Market Reaction – ASPS
On the day this news was published, ASPS declined 4.68%, reflecting a moderate negative market reaction. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $76.81M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ASPS was down 2.1% pre-release while peers were mixed: STHO -2.31%, OPAD -2%, CHCI -3.57%, but AIRE +1.53% and FTHM +2.73%, pointing to stock-specific rather than broad sector dynamics.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Earnings release | Positive | -5.8% | Full year 2025 revenue and EBITDA growth with improved GAAP loss before taxes. |
| Oct 23 | Earnings release | Positive | +1.0% | Q3 2025 service revenue growth, improved net loss and solid sales pipeline. |
| Jul 24 | Earnings release | Positive | -4.6% | Q2 2025 strong revenue growth and large net income increase aided by tax benefit. |
| May 01 | Earnings release | Positive | +0.0% | Q1 2025 service revenue and EBITDA growth plus major debt restructuring. |
| Mar 13 | Earnings release | Positive | +18.7% | Q4 and 2024 revenue and EBITDA growth with balance sheet restructuring and guidance. |
Earnings releases often show improving revenue and profitability, but short-term price reactions have been mixed, with several strong fundamental updates followed by flat or negative next-day moves.
Recent earnings releases highlight a consistent pattern of growing Service revenue and incremental profitability improvements. Q4 2024 and FY 2024 results showed higher revenue and Adjusted EBITDA, supported by a major debt exchange that reduced interest expense. Through 2025, quarterly updates emphasized cash balances, sales wins, and a strong pipeline. The latest FY 2025 report added guidance for higher 2026 Service revenue and EBITDA. Today’s Q1 2026 update continues that trajectory with higher Service revenue and improved GAAP loss metrics.
Historical Comparison
In the past year, ASPS issued five earnings updates with an average next-day move of 1.85%. Q1 2026 results, showing higher Service revenue but lower Adjusted EBITDA margin, fit into this pattern of fundamentally improving yet sometimes uneven market reactions.
Across recent earnings, Altisource has reported steady Service revenue growth, improving GAAP profitability, and meaningful debt reduction. Subsequent quarters added higher Adjusted EBITDA, stronger cash balances, and expanding sales pipelines, framing Q1 2026 as another step in a multi-quarter financial and balance sheet improvement story.
Regulatory & Risk Context
An effective Form S-3 filed on Oct 24, 2025 registers up to 7,224,028 existing shares for resale by lenders under a prior exchange agreement. These shares equal about 65.7% of outstanding stock as of October 2025, and Altisource will not receive proceeds from their sale, leaving potential overhang from selling stockholders.
Market Pulse Summary
This announcement highlights a solid start to 2026, with Service revenue up 10%, better GAAP loss metrics, and positive operating cash flow, offset by lower Adjusted EBITDA and margin. Hubzu inventory more than tripled since September 2025, and industry foreclosure and origination trends remain supportive. Investors may watch future quarters for sustained EBITDA growth, cash generation, and conversion of the sales pipeline into realized service revenue.
Key Terms
adjusted ebitda financial
non-gaap financial
foreclosure auction technical
reo inventory technical
weighted average sales pipeline financial
mortgage origination volume financial
foreclosure initiations technical
AI-generated analysis. Not financial advice.
LUXEMBOURG, April 23, 2026 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the first quarter 2026.
“We are off to a strong start in 2026. For the quarter, we grew Service revenue by
First Quarter 2026 Highlights(2)
Company, Corporate and Financial:
- First quarter Service revenue of
$45.1 million was$4.2 million , or10% , higher than the same quarter of 2025 - First quarter Income before income taxes and non-controlling interests of
$0.4 million was a$4.9 million improvement compared to the same quarter of 2025 - First quarter Net loss attributable to Altisource of
$0.6 million was a$4.7 million improvement compared to the same quarter of 2025 - First quarter Diluted loss per share of
$(0.06) was a$0.68 improvement compared to the same quarter of 2025 - First quarter Adjusted diluted earnings per share(1) of
$0.19 was a$0.21 improvement compared to the same quarter of 2025 - First quarter Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”)(1) of
$4.4 million was$(0.8) million , or (15)% lower than the same quarter of 2025 - First quarter Adjusted EBITDA(1) margin of
10% was lower than the13% Adjusted EBITDA(1) margin in the same quarter of 2025 largely due to revenue mix - First quarter Cash provided by operating activities of
$4.5 million was a$9.4 million improvement, compared to the same quarter of 2025, and we ended the quarter with$30.3 million of cash and cash equivalents
Business and Industry:
- Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together “Business Segments”) was
$12.0 million , or26.7% of Service revenue, compared to$12.5 million , or30.5% of Service revenue, in the same quarter of 2025 primarily due to a change in revenue mix. - Generated sales wins which we estimate represent potential annualized service revenue on a stabilized basis of
$12.4 million for the Servicer and Real Estate segment and$4.7 million for the Origination segment - Driven by recent sales wins, total Hubzu inventory has more than tripled since September 30, 2025
| (in thousands) | September 30, 2025 | December 31, 2025 | March 31, 2026 | |||||
| Foreclosure Auction Inventory(5) | 4.0 | 4.9 | 14.0 | |||||
| REO Inventory - Customers other than Rithm | 0.7 | 1.4 | 2.3 | |||||
| REO Inventory - Rithm | 1.0 | 1.0 | 0.9 | |||||
| Total Hubzu Inventory | 5.7 | 7.3 | 17.2 |
- Ended the quarter with a weighted average sales pipeline between
$25.7 million and$32.1 million of potential estimated annual revenue on a stabilized basis based upon forecasted probability of closing (comprising of between$10.4 million and$13.0 million in the Servicer and Real Estate segment and between$15.3 million and$19.1 million in the Origination segment) - Industrywide foreclosure initiations were
5% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still14% lower than the same pre-COVID-19 period in 2019)(3) - Industrywide foreclosure sales were
27% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still42% lower than the same pre-COVID-19 period in 2019)(3) - Industrywide mortgage origination volume increased by
42% for the three months ended March 31, 2026 compared to the same period in 2025, comprised of a19% increase in purchase origination and a91% increase in refinancing origination(4)
First Quarter 2026 Financial Results
- Service revenue of
$45.1 million - Income from operations of
$1.7 million - Income before income taxes and non-controlling interests of
$0.4 million - Net loss attributable to Altisource of
$(0.6) million - Adjusted EBITDA(1) of
$4.4 million - Diluted loss per share of
$(0.06) - Adjusted diluted earnings per share(1) of
$0.19
First Quarter 2026 Results Compared to the First Quarter 2025 (unaudited):
| (in thousands, except per share data) | First Quarter 2026 | First Quarter 2025 | % Change | |||||||
| Service revenue | $ | 45,089 | $ | 40,895 | 10 | |||||
| Revenue | 47,584 | 43,439 | 10 | |||||||
| Gross profit | 13,111 | 13,325 | (2 | ) | ||||||
| Income from operations | 1,725 | 3,245 | (47 | ) | ||||||
| Adjusted operating income(1) | 4,411 | 5,199 | (15 | ) | ||||||
| Income (loss) before income taxes and non-controlling interests | 356 | (4,529 | ) | 108 | ||||||
| Pretax income (loss) attributable to Altisource(1) | 252 | (4,602 | ) | 105 | ||||||
| Adjusted pretax income attributable to Altisource(1) | 2,938 | 332 | N/M | |||||||
| Adjusted EBITDA(1) | 4,449 | 5,262 | (15 | ) | ||||||
| Net loss attributable to Altisource | (635 | ) | (5,344 | ) | 88 | |||||
| Adjusted net income (loss) attributable to Altisource(1) | 2,136 | (144 | ) | N/M | ||||||
| Diluted loss per share | (0.06 | ) | (0.74 | ) | 92 | |||||
| Adjusted diluted earnings (loss) per share(1) | 0.19 | (0.02 | ) | N/M | ||||||
| Net cash provided by (used in) operating activities | 4,453 | (4,972 | ) | 190 | ||||||
| Net cash provided by (used in) operating activities less additions to premises and equipment(1) | 4,315 | (4,997 | ) | 186 | ||||||
| Margins: | ||||||||||
| Gross profit / service revenue | 29 | % | 33 | % | ||||||
| Adjusted EBITDA(1) / service revenue | 10 | % | 13 | % | ||||||
______________________ N/M — not meaningful. | ||||||||||
| • | First quarter 2025 loss before income taxes and non-controlling interests includes |
| ________________________ | |
| (1) | This is a non-GAAP measure that is defined and reconciled to the corresponding GAAP measure herein |
| (2) | Applies to the first quarter 2026 unless otherwise indicated |
| (3) | Based on data from ICE’s Mortgage Monitor and First Look reports with data through February 2026 |
| (4) | Based on estimated number of loans originated as reported by the Mortgage Bankers Association’s Mortgage Finance Forecast dated March 23, 2026 |
| (5) | Altisource does not provide foreclosure auction services to Rithm |
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future financial / operating performance or financial condition. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “will,” “plan,” “estimate,” “seek,” “believe,” “potential” or “continue” or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 4, 2026. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to customer concentration, impacts to default related referrals occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our debt agreements, including the financial and other covenants contained therein, as well as Altisource’s ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events, except as required by law.
Webcast
Altisource will host a webcast at 08:30 a.m. EDT today to discuss our first quarter. A link to the live audio webcast will be available on Altisource’s website in the Investor Relations section. Those who want to listen to the call should go to the website at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Altisource®
Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets it serves. Additional information is available at www.altisource.com.
FOR FURTHER INFORMATION CONTACT:
Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
E: Michelle.Esterman@altisource.com
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share data) (unaudited) | ||||||||
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Service revenue | $ | 45,089 | $ | 40,895 | ||||
| Reimbursable expenses | 2,391 | 2,471 | ||||||
| Non-controlling interests | 104 | 73 | ||||||
| Total revenue | 47,584 | 43,439 | ||||||
| Cost of revenue | 34,473 | 30,114 | ||||||
| Gross profit | 13,111 | 13,325 | ||||||
| Selling, general and administrative expenses | 11,386 | 10,080 | ||||||
| Income from operations | 1,725 | 3,245 | ||||||
| Other income (expense), net: | ||||||||
| Interest expense | (2,109 | ) | (4,938 | ) | ||||
| Debt exchange transaction expenses | — | (2,980 | ) | |||||
| Other income (expense), net | 740 | 144 | ||||||
| Total other income (expense), net | (1,369 | ) | (7,774 | ) | ||||
| Income (loss) before income taxes and non-controlling interests | 356 | (4,529 | ) | |||||
| Income tax provision | (887 | ) | (742 | ) | ||||
| Net loss | (531 | ) | (5,271 | ) | ||||
| Net income attributable to non-controlling interests | (104 | ) | (73 | ) | ||||
| Net loss attributable to Altisource | $ | (635 | ) | $ | (5,344 | ) | ||
| Loss per share: | ||||||||
| Basic | $ | (0.06 | ) | $ | (0.74 | ) | ||
| Diluted | $ | (0.06 | ) | $ | (0.74 | ) | ||
| Weighted average shares outstanding: | ||||||||
| Basic | 11,111 | 7,265 | ||||||
| Diluted | 11,111 | 7,265 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (531 | ) | $ | (5,271 | ) | ||
| Comprehensive income attributable to non-controlling interests | (104 | ) | (73 | ) | ||||
| Comprehensive loss attributable to Altisource | $ | (635 | ) | $ | (5,344 | ) | ||
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED BALANCE SHEETS (in thousands, except for per share data) (unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 30,340 | $ | 26,603 | |||
| Accounts receivable, net of allowance for credit losses of | 20,691 | 17,984 | |||||
| Prepaid expenses and other current assets | 7,799 | 9,690 | |||||
| Total current assets | 58,830 | 54,277 | |||||
| Premises and equipment, net | 333 | 253 | |||||
| Right-of-use assets under operating leases | 943 | 1,117 | |||||
| Goodwill | 55,960 | 55,960 | |||||
| Intangible assets, net | 15,661 | 17,085 | |||||
| Deferred tax assets, net | 6,246 | 6,342 | |||||
| Other assets | 4,181 | 4,767 | |||||
| Total assets | $ | 142,154 | $ | 139,801 | |||
| LIABILITIES AND DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 43,725 | $ | 39,595 | |||
| Current portion of long-term debt | 1,225 | 1,225 | |||||
| Deferred revenue | 3,986 | 3,440 | |||||
| Other current liabilities | 2,055 | 2,805 | |||||
| Total current liabilities | 50,991 | 47,065 | |||||
| Long-term debt | 188,526 | 189,861 | |||||
| Deferred tax liabilities, net | 8,600 | 8,641 | |||||
| Other non-current liabilities | 3,679 | 3,697 | |||||
| Commitments, contingencies and regulatory matters | |||||||
| Deficit: | |||||||
| Common stock ( | 113 | 110 | |||||
| Additional paid-in capital | 257,765 | 257,359 | |||||
| Accumulated deficit | (368,337 | ) | (363,735 | ) | |||
| Treasury stock, at cost (27 shares as of December 31, 2025) | — | (3,948 | ) | ||||
| Altisource deficit | (110,459 | ) | (110,214 | ) | |||
| Non-controlling interests | 817 | 751 | |||||
| Total deficit | (109,642 | ) | (109,463 | ) | |||
| Total liabilities and deficit | $ | 142,154 | $ | 139,801 | |||
| ALTISOURCE PORTFOLIO SOLUTIONS S.A. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (531 | ) | $ | (5,271 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 58 | 185 | |||||
| Amortization of right-of-use assets under operating leases | 377 | 185 | |||||
| Amortization of intangible assets | 1,424 | 1,270 | |||||
| Share-based compensation expense | 1,193 | 1,094 | |||||
| Bad debt expense | 74 | (137 | ) | ||||
| Amortization of debt premium | (1,185 | ) | (766 | ) | |||
| Amortization of debt discount | 102 | 641 | |||||
| Amortization of debt issuance costs | 54 | 407 | |||||
| Deferred income taxes | (41 | ) | 46 | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (2,781 | ) | (3,001 | ) | |||
| Prepaid expenses and other current assets | 1,899 | 336 | |||||
| Other assets | 105 | (9 | ) | ||||
| Accounts payable and accrued expenses | 4,130 | 415 | |||||
| Current and non-current operating lease liabilities | (399 | ) | (195 | ) | |||
| Other current and non-current liabilities | (26 | ) | (172 | ) | |||
| Net cash provided by (used in) operating activities | 4,453 | (4,972 | ) | ||||
| Cash flows from investing activities: | |||||||
| Additions to premises and equipment | (138 | ) | (25 | ) | |||
| Net cash used in investing activities | (138 | ) | (25 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from the Super Senior Facility | — | 11,250 | |||||
| Debt issuance costs | — | (1,749 | ) | ||||
| Repayments of long-term debt | (306 | ) | — | ||||
| Equity issuance costs | — | (3,191 | ) | ||||
| Distributions to non-controlling interests | (38 | ) | (2 | ) | |||
| Payments of tax withholding on vesting of restricted share units and restricted shares | (803 | ) | (318 | ) | |||
| Net cash (used in) provided by financing activities | (1,147 | ) | 5,990 | ||||
| Net increase in cash, cash equivalents and restricted cash | 3,168 | 993 | |||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 30,493 | 32,700 | |||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 33,661 | $ | 33,693 | |||
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Supplemental cash flow information: | |||||||
| Interest paid | $ | 3,128 | $ | 4,535 | |||
| Income taxes paid, net | 352 | 96 | |||||
| Acquisition of right-of-use assets with operating lease liabilities | 206 | 26 | |||||
| Reduction of right-of-use assets from operating lease modifications or reassessments | (4 | ) | (162 | ) | |||
| Non-cash investing and financing activities: | |||||||
| Equity issued in exchange for debt reduction | — | 45,370 | |||||
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Adjusted operating income, pretax income (loss) attributable to Altisource, adjusted pretax income attributable to Altisource, adjusted net income (loss) attributable to Altisource, adjusted diluted earnings (loss) per share, Net cash provided by (used in) operating activities less additions to premises and equipment, Adjusted EBITDA, Business Segments Adjusted EBITDA and net debt, which are presented elsewhere in this earnings release, 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, income (loss) before income taxes and non-controlling interests, net loss attributable to Altisource, diluted loss per share, Net cash provided by (used in) operating activities and long-term debt, including current portion, 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, cash flows from operating activities and long-term debt net of cash on-hand. 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. Specifically, management uses adjusted net income (loss) attributable to Altisource to measure the on-going after tax performance of the Company because the measure adjusts for the after tax impact of more significant non-recurring items, amortization expense relating to prior acquisitions (some of which fluctuates with revenue from certain customers and some of which is amortized on a straight-line basis) and non-cash share-based compensation expense which can fluctuate based on vesting schedules, grant date timing and the value attributable to awards. We believe adjusted net income (loss) attributable to Altisource is useful to existing shareholders, potential shareholders and other users of our financial information because it provides an after-tax measure of Altisource’s on-going performance that enables these users to perform trend analysis using comparable data. Management uses adjusted diluted earnings (loss) per share to further evaluate adjusted net income (loss) attributable to Altisource while taking into account changes in the number of diluted shares over the comparable periods. We believe adjusted diluted earnings (loss) per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income (loss) attributable to Altisource on a per share basis. Management uses Adjusted EBITDA to measure the Company’s overall performance and Business Segments Adjusted EBITDA to measure the segments overall performance (with the adjustments discussed earlier with regard to adjusted net income (loss) attributable to Altisource) without regard to its capitalization (debt vs. equity) or its income taxes and to perform trend analysis of the Company’s performance over time. Our effective income tax rate can vary based on the jurisdictional mix of our income. Additionally, as the Company’s capital expenditures have significantly declined over time, it provides a measure for management to evaluate the Company’s performance without regard to prior capital expenditures. Management also uses Adjusted EBITDA as one of the measures in determining bonus compensation for certain employees. We believe Adjusted EBITDA and Business Segments Adjusted EBITDA are useful to existing shareholders, potential shareholders and other users of our financial information for the same reasons that management finds the measure useful. Management uses net debt in evaluating the amount of debt the Company has that is in excess of cash and cash equivalents. We believe net debt is useful to existing shareholders, potential shareholders and other users of our financial information for the same reasons management finds the measure useful.
Altisource operates in several countries, including Luxembourg, India, the United States and Uruguay. The Company has differing effective tax rates in each country and these rates may change from year to year. In determining the tax effects related to the adjustments in calculating adjusted net loss attributable to Altisource and adjusted diluted earnings (loss) per share, we use the tax rate in the country in which the adjustment applies or, if the adjustment is recognized in more than one country, we separate the adjustment by country, apply the relevant tax rate for each country to the applicable adjustment, and then sum the result to arrive at the total adjustment, net of tax. In 2019, the Company recognized a full valuation allowance on its net deferred tax assets in Luxembourg. Accordingly, for 2026 and 2025, the Company has an effective tax rate of close to
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.
Adjusted operating income is calculated by removing intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other from income from operations. Pretax income (loss) attributable to Altisource is calculated by removing non-controlling interests from income (loss) before income taxes and non-controlling interests. Adjusted pretax income attributable to Altisource is calculated by removing non-controlling interests, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other and debt exchange transaction expenses from income (loss) before income taxes and non-controlling interests. Adjusted net income (loss) attributable to Altisource is calculated by removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt exchange transaction expenses (net of tax) and certain income tax related items from net loss attributable to Altisource. Adjusted diluted earnings (loss) per share is calculated by dividing net loss attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt exchange transaction expenses (net of tax) and certain income tax related items by the weighted average number of diluted shares. Net cash provided by (used in) operating activities less additions to premises and equipment is calculated by removing additions to premises and equipment from Net cash provided by (used in) operating activities. Adjusted EBITDA is calculated by removing the income tax provision, interest expense (net of interest income), depreciation and amortization, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other and debt exchange transaction expenses from net loss attributable to Altisource. Business Segments Adjusted EBITDA is calculated by removing non-controlling interests, interest expense (net of interest income), depreciation and amortization, intangible asset amortization expense, share-based compensation expense, cost of cost savings initiatives and other from income before income taxes and non-controlling interests. Net debt is calculated as long-term debt, including current portion, minus cash and cash equivalents.
Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows:
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Income from operations | $ | 1,725 | $ | 3,245 | ||||
| Intangible asset amortization expense | 1,424 | 1,270 | ||||||
| Share-based compensation expense | 1,193 | 1,094 | ||||||
| Cost of cost savings initiatives and other | 69 | (410 | ) | |||||
| Adjusted operating income | $ | 4,411 | $ | 5,199 | ||||
| Income (loss) before income taxes and non-controlling interests | $ | 356 | $ | (4,529 | ) | |||
| Non-controlling interests | (104 | ) | (73 | ) | ||||
| Pretax income (loss) attributable to Altisource | 252 | (4,602 | ) | |||||
| Intangible asset amortization expense | 1,424 | 1,270 | ||||||
| Share-based compensation expense | 1,193 | 1,094 | ||||||
| Cost of cost savings initiatives and other | 69 | (410 | ) | |||||
| Debt exchange transaction expenses | — | 2,980 | ||||||
| Adjusted pretax income attributable to Altisource | $ | 2,938 | $ | 332 | ||||
| Net loss attributable to Altisource | $ | (635 | ) | $ | (5,344 | ) | ||
| Income tax provision | 887 | 742 | ||||||
| Interest expense (net of interest income) | 1,453 | 4,745 | ||||||
| Depreciation and amortization | 58 | 185 | ||||||
| Intangible asset amortization expense | 1,424 | 1,270 | ||||||
| Share-based compensation expense | 1,193 | 1,094 | ||||||
| Cost of cost savings initiatives and other | 69 | (410 | ) | |||||
| Debt exchange transaction expenses | — | 2,980 | ||||||
| Adjusted EBITDA | $ | 4,449 | $ | 5,262 | ||||
| Business Segments: | ||||||||
| Income before income taxes and non-controlling interests | $ | 10,491 | $ | 10,856 | ||||
| Non-controlling interests | (104 | ) | (73 | ) | ||||
| Depreciation and amortization | 49 | 78 | ||||||
| Intangible asset amortization expense | 1,424 | 1,270 | ||||||
| Share-based compensation expense | 133 | 279 | ||||||
| Cost of cost savings initiatives and other | 37 | 29 | ||||||
| Interest expense (net of interest income) | 8 | 27 | ||||||
| Business Segments Adjusted EBITDA | $ | 12,038 | $ | 12,466 | ||||
| Corporate and Others: | ||||||||
| Loss before income taxes and non-controlling interests | $ | (10,135 | ) | $ | (15,385 | ) | ||
| Depreciation and amortization | 9 | 107 | ||||||
| Share-based compensation expense | 1,060 | 815 | ||||||
| Cost of cost savings initiatives and other | 32 | (439 | ) | |||||
| Debt exchange transaction expenses | — | 2,980 | ||||||
| Interest expense (net of interest income) | 1,445 | 4,718 | ||||||
| Corporate and Others Adjusted EBITDA | $ | (7,589 | ) | $ | (7,204 | ) | ||
| Net loss attributable to Altisource | $ | (635 | ) | $ | (5,344 | ) | ||
| Intangible asset amortization expense, net of tax | 1,391 | 1,270 | ||||||
| Share-based compensation expense, net of tax | 1,064 | 953 | ||||||
| Cost of cost savings initiatives and other, net of tax | 60 | (396 | ) | |||||
| Debt exchange transaction expenses, net of tax | — | 2,980 | ||||||
| Certain income tax related items | 257 | 393 | ||||||
| Adjusted net income (loss) attributable to Altisource | $ | 2,137 | $ | (144 | ) | |||
| Diluted loss per share | $ | (0.06 | ) | $ | (0.74 | ) | ||
| Intangible asset amortization expense, net of tax, per diluted share | 0.13 | 0.17 | ||||||
| Share-based compensation expense, net of tax, per diluted share | 0.10 | 0.13 | ||||||
| Cost of cost savings initiatives and other, net of tax, per diluted share | 0.01 | (0.05 | ) | |||||
| Debt exchange transaction expenses, per diluted share | — | 0.41 | ||||||
| Certain income tax related items, per diluted share | 0.02 | 0.05 | ||||||
| Adjusted diluted earnings (loss) per share | $ | 0.19 | $ | (0.02 | ) | |||
| Calculation of the per share impact of intangible asset amortization expense, net of tax | ||||||||
| Intangible asset amortization expense | $ | 1,424 | $ | 1,270 | ||||
| Tax benefit from intangible asset amortization | (33 | ) | — | |||||
| Intangible asset amortization expense, net of tax | 1,391 | 1,270 | ||||||
| Diluted share count | 11,111 | 7,265 | ||||||
| Intangible asset amortization expense, net of tax, per diluted share | $ | 0.13 | $ | 0.17 | ||||
| Calculation of the per share impact of share-based compensation expense, net of tax | ||||||||
| Share-based compensation expense | $ | 1,193 | $ | 1,094 | ||||
| Tax benefit from share-based compensation expense | (129 | ) | (141 | ) | ||||
| Share-based compensation expense, net of tax | 1,064 | 953 | ||||||
| Diluted share count | 11,111 | 7,265 | ||||||
| Share-based compensation expense, net of tax, per diluted share | $ | 0.10 | $ | 0.13 | ||||
| Calculation of the impact of debt exchange transaction expenses, net of tax | ||||||||
| Debt exchange transaction expenses | $ | — | $ | 2,980 | ||||
| Tax benefit from share-based compensation expense | — | — | ||||||
| Debt exchange transaction expenses, net of tax | — | 2,980 | ||||||
| Diluted share count | 11,111 | 7,265 | ||||||
| Debt exchange transaction expenses, net of tax per diluted share | $ | — | $ | 0.41 | ||||
| Calculation of the per share impact of cost of cost savings initiatives and other, net of tax | ||||||||
| Cost of cost savings initiatives and other | $ | 69 | $ | (410 | ) | |||
| Tax (benefit) provision from cost of cost savings initiatives and other | (10 | ) | 14 | |||||
| Cost of cost savings initiatives and other, net of tax | 60 | (396 | ) | |||||
| Diluted share count | 11,111 | 7,265 | ||||||
| Cost of cost savings initiatives and other, net of tax, per diluted share | $ | 0.01 | $ | (0.05 | ) | |||
| Calculation of the per share impact of certain income tax related items resulting from: | ||||||||
| Foreign income tax reserves / other | $ | 257 | $ | 393 | ||||
| Certain income tax related items | 257 | 393 | ||||||
| Diluted share count | 11,111 | 7,265 | ||||||
| Certain income tax related items, per diluted share | $ | 0.02 | $ | 0.05 | ||||
| Net cash provided by (used in) operating activities | $ | 4,453 | $ | (4,972 | ) | |||
| Less: additions to premises and equipment | (138 | ) | (25 | ) | ||||
| Net cash provided by (used in) operating activities less additions to premises and equipment | $ | 4,315 | $ | (4,997 | ) | |||
| March 31, 2026 | |||
| Senior secured term loans | $ | 158,900 | |
| Super senior term loan | 12,360 | ||
| Less: Cash and cash equivalents | (30,340 | ) | |
| Net debt | $ | 140,920 | |
______________________________________________
Note: Amounts may not add to the total due to rounding.
