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Altisource (NASDAQ: ASPS) grows Q1 2026 revenue 10% and improves loss

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Altisource Portfolio Solutions S.A. reported improved first quarter 2026 results, with service revenue of $45.1 million, up 10% from the same quarter of 2025. Income before income taxes and non-controlling interests was $0.4 million, compared to a loss of $4.5 million a year earlier.

The company recorded a net loss attributable to Altisource of $0.6 million, an improvement from a $5.3 million loss, while adjusted net income attributable to Altisource turned positive at $2.1 million. Adjusted EBITDA was $4.4 million, down 15% from the prior-year quarter, and operating cash flow improved to $4.5 million from negative $5.0 million, ending the quarter with $30.3 million in cash and cash equivalents.

Positive

  • None.

Negative

  • None.

Insights

Altisource shows revenue growth and cash-flow improvement, but margins softened.

Altisource grew Q1 2026 service revenue 10% to $45.1 million, and pretax results shifted from a $4.5 million loss to a modest $0.4 million profit. Net loss attributable to Altisource narrowed to $0.6 million, while adjusted net income reached $2.1 million.

Profitability quality is mixed. Adjusted EBITDA declined 15% to $4.4 million, and the adjusted EBITDA margin fell from 13% to 10%, which the company attributes largely to revenue mix. Business Segments Adjusted EBITDA was stable at about $12.0 million, or 26.7% of service revenue.

Cash generation strengthened, with net cash provided by operating activities improving from negative $5.0 million to positive $4.5 million for the quarter. As of March 31, 2026, cash and cash equivalents were $30.3 million and net debt stood at $140.9 million. Subsequent quarterly disclosures may show whether the current revenue mix and segment momentum are sustainable.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Service revenue $45.1M Q1 2026, up 10% from $40.9M in Q1 2025
Income before income taxes and NCI $0.4M Q1 2026 vs $(4.5)M in Q1 2025
Net loss attributable to Altisource $(0.6)M Q1 2026 vs $(5.3)M in Q1 2025
Adjusted EBITDA $4.4M Q1 2026, down 15% from $5.3M in Q1 2025
Diluted loss per share $(0.06) Q1 2026 vs $(0.74) in Q1 2025
Adjusted diluted EPS $0.19 Q1 2026 vs $(0.02) in Q1 2025
Operating cash flow $4.5M Net cash provided by operating activities, Q1 2026 vs $(5.0)M
Net debt $140.9M As of March 31, 2026, long-term debt minus cash
Adjusted EBITDA financial
"First quarter Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”)(1) of $4.4 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted diluted earnings per share financial
"First quarter Adjusted diluted earnings per share(1) of $0.19 was a $0.21 improvement"
Adjusted diluted earnings per share is the company’s net profit per share after accounting for potential extra shares (from options or convertible securities) and removing one‑time or unusual items so the number reflects ongoing business results. Think of it like timing a runner’s steady pace after excluding a few unexpected stops; it gives investors a clearer view of sustainable profit available to each share. Investors use it to compare companies and judge underlying profitability and valuation without short‑term distortions.
non-GAAP measures financial
"Altisource PORTFOLIO SOLUTIONS S.A. NON-GAAP MEASURES (in thousands, except per share data)"
Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.
Business Segments Adjusted EBITDA financial
"Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together “Business Segments”) was $12.0 million"
Debt exchange transaction expenses financial
"First quarter 2025 loss before income taxes and non-controlling interests includes $3.0 million of Debt Exchange Transaction expenses"
Service revenue $45.1M +10% YoY
Total revenue $47.6M +10% YoY
Income before income taxes and NCI $0.4M from $(4.5)M
Net loss attributable to Altisource $(0.6)M from $(5.3)M
Adjusted EBITDA $4.4M -15% YoY
Diluted EPS $(0.06) from $(0.74)
Adjusted diluted EPS $0.19 from $(0.02)
Net cash from operating activities $4.5M from $(5.0)M
Understanding 8-K Material Events →
0001462418false00014624182026-04-232026-04-230001462418asps:CashExerciseStakeholderWarrantsMember2026-04-232026-04-230001462418asps:NetSettleStakeholderWarrantsMember2026-04-232026-04-23


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 23, 2026
ALTISOURCE PORTFOLIO SOLUTIONS S.A.
(Exact name of Registrant as specified in its Charter)
Luxembourg001-3435498-0554932
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
33, Boulevard Prince Henri
L-1724 Luxembourg
Grand Duchy of Luxembourg
(Address of principal executive offices including zip code)
+352 2060 2055
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par value per shareASPSThe Nasdaq Stock Market LLC
Cash Exercise Stakeholder WarrantsASPSZThe Nasdaq Stock Market LLC
Net Settle Stakeholder WarrantsASPSWThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐


Item 2.02 Results of Operations and Financial Condition.

On April 23, 2026, Altisource Portfolio Solutions S.A. (“Altisource”) issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Item 2.02, including the information in Exhibit 99.1, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. It may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or Securities Act of 1933 if such subsequent filing specifically references this Item 2.02 of this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
Exhibit 99.1
Press release issued by Altisource Portfolio Solutions S.A. dated April 23, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 23, 2026
Altisource Portfolio Solutions S.A.
By:/s/ Michelle D. Esterman
Name:Michelle D. Esterman
Title:Chief Financial Officer







Exhibit 99.1
altisourceq220198ka03.jpg
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
E: Michelle.Esterman@altisource.com

ALTISOURCE ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS
Luxembourg, April 23, 2026 - 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 10%, and pretax GAAP earnings by $4.9 million and cash provided by operating activities by $9.4 million, compared to the first quarter of 2025, primarily from sales wins and lower debt related interest and transaction costs. More importantly, we are seeing strength in both business segments. The Origination segment grew first quarter Service revenue by 71% and Adjusted EBITDA(1) by 166% compared to last year, primarily from sales wins and a stronger origination market. The Servicer and Real Estate segment is positioned extremely well with Hubzu inventory at 17,200 homes as of the end of the first quarter and exciting first quarter sales wins in the Title and Foreclosure Trustee businesses,” said William B. Shepro, Chairman and Chief Executive Officer.
First Quarter 2026 Highlights(2)
Company, Corporate and Financial:
•First quarter Service revenue of $45.1 million was $4.2 million, or 10%, 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 the 13% 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

1

Business and Industry:
•Adjusted EBITDA(1) in the Servicer and Real Estate and Origination segments (together “Business Segments”) was $12.0 million, or 26.7% of Service revenue, compared to $12.5 million, or 30.5% 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)
4.04.914.0
REO Inventory - Customers other than Rithm0.71.42.3
REO Inventory - Rithm1.01.00.9
Total Hubzu Inventory5.77.317.2
•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 still 14% 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 still 42% 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 a 19% increase in purchase origination and a 91% 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
2

First Quarter 2026 Results Compared to the First Quarter 2025 (unaudited):
(in thousands, except per share data)First Quarter 2026First Quarter 2025% Change
Service revenue$45,089 $40,895 10 
Revenue47,584 43,439 10 
Gross profit13,111 13,325 (2)
Income from operations1,725 3,245 (47)
Adjusted operating income(1)
4,411 5,199 (15)
Income (loss) before income taxes and non-controlling interests356 (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 activities4,453 (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 revenue29 %33 %
Adjusted EBITDA(1) / service revenue
10 %13 %
N/M - not meaningful
•First quarter 2025 loss before income taxes and non-controlling interests includes $3.0 million of Debt Exchange Transaction expenses (no comparative amount for the first quarter 2026 ).
________________________
(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
3

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.
4

ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
(unaudited)
Three months ended
March 31,
20262025
Service revenue$45,089 $40,895 
Reimbursable expenses2,391 2,471 
Non-controlling interests104 73 
Total revenue47,584 43,439 
Cost of revenue34,473 30,114 
Gross profit13,111 13,325 
Selling, general and administrative expenses11,386 10,080 
Income from operations1,725 3,245 
Other income (expense), net:
Interest expense(2,109)(4,938)
Debt exchange transaction expenses— (2,980)
Other income (expense), net740 144 
Total other income (expense), net(1,369)(7,774)
Income (loss) before income taxes and non-controlling interests356 (4,529)
Income tax provision(887)(742)
Net loss(531)(5,271)
Net income attributable to non-controlling interests(104)(73)
Net loss attributable to Altisource$(635)$(5,344)
Loss per share:
Basic$(0.06)$(0.74)
Diluted$(0.06)$(0.74)
Weighted average shares outstanding:
Basic11,111 7,265 
Diluted11,111 7,265 
Comprehensive loss:
Net loss$(531)$(5,271)
Comprehensive income attributable to non-controlling interests(104)(73)
Comprehensive loss attributable to Altisource$(635)$(5,344)

5


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 $1,855 and $2,492, respectively
20,691 17,984 
Prepaid expenses and other current assets7,799 9,690 
Total current assets58,830 54,277 
Premises and equipment, net 333 253 
Right-of-use assets under operating leases943 1,117 
Goodwill55,960 55,960 
Intangible assets, net15,661 17,085 
Deferred tax assets, net6,246 6,342 
Other assets4,181 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 debt1,225 1,225 
Deferred revenue3,986 3,440 
Other current liabilities 2,055 2,805 
Total current liabilities50,991 47,065 
Long-term debt188,526 189,861 
Deferred tax liabilities, net8,600 8,641 
Other non-current liabilities 3,679 3,697 
Commitments, contingencies and regulatory matters
Deficit:
Common stock ($0.01 par value; 250,000 shares authorized, 11,279 issued and outstanding as of March 31, 2026; 11,021 issued and 10,994 outstanding as of December 31, 2025)
113 110 
Additional paid-in capital257,765 257,359 
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 interests817 751 
Total deficit(109,642)(109,463)
Total liabilities and deficit$142,154 $139,801 
6


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended
March 31,
 20262025
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 amortization58 185 
Amortization of right-of-use assets under operating leases377 185 
Amortization of intangible assets1,424 1,270 
Share-based compensation expense1,193 1,094 
Bad debt expense74 (137)
Amortization of debt premium(1,185)(766)
Amortization of debt discount102 641 
Amortization of debt issuance costs54 407 
Deferred income taxes(41)46 
Changes in operating assets and liabilities:  
Accounts receivable(2,781)(3,001)
Prepaid expenses and other current assets1,899 336 
Other assets105 (9)
Accounts payable and accrued expenses4,130 415 
Current and non-current operating lease liabilities(399)(195)
Other current and non-current liabilities(26)(172)
Net cash provided by (used in) operating activities4,453 (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 cash3,168 993 
Cash, cash equivalents and restricted cash at the beginning of the period30,493 32,700 
Cash, cash equivalents and restricted cash at the end of the period$33,661 $33,693 
7


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended
March 31,
20252024
Supplemental cash flow information:  
Interest paid$3,128 $4,535 
Income taxes paid, net352 96 
Acquisition of right-of-use assets with operating lease liabilities206 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 
8


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 0% in Luxembourg.
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.
9


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
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.
10


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Reconciliations of the non-GAAP measures to the corresponding GAAP measures are as follows:
Three months ended
March 31,
20262025
Income from operations$1,725 $3,245 
Intangible asset amortization expense1,424 1,270 
Share-based compensation expense1,193 1,094 
Cost of cost savings initiatives and other69 (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 Altisource252 (4,602)
Intangible asset amortization expense1,424 1,270 
Share-based compensation expense1,193 1,094 
Cost of cost savings initiatives and other69 (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 provision887 742 
Interest expense (net of interest income)1,453 4,745 
Depreciation and amortization58 185 
Intangible asset amortization expense1,424 1,270 
Share-based compensation expense1,193 1,094 
Cost of cost savings initiatives and other69 (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 amortization49 78 
Intangible asset amortization expense1,424 1,270 
Share-based compensation expense133 279 
Cost of cost savings initiatives and other37 29 
Interest expense (net of interest income)8 27 
Business Segments Adjusted EBITDA$12,038 $12,466 
11


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Three months ended
March 31,
20262025
Corporate and Others:
Loss before income taxes and non-controlling interests$(10,135)$(15,385)
Depreciation and amortization9 107 
Share-based compensation expense1,060 815 
Cost of cost savings initiatives and other32 (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 tax1,391 1,270 
Share-based compensation expense, net of tax1,064 953 
Cost of cost savings initiatives and other, net of tax60 (396)
Debt exchange transaction expenses, net of tax— 2,980 
Certain income tax related items257 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 share0.13 0.17 
Share-based compensation expense, net of tax, per diluted share0.10 0.13 
Cost of cost savings initiatives and other, net of tax, per diluted share0.01 (0.05)
Debt exchange transaction expenses, per diluted share— 0.41 
Certain income tax related items, per diluted share0.02 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 tax1,391 1,270 
Diluted share count11,111 7,265 
Intangible asset amortization expense, net of tax, per diluted share$0.13 $0.17 
12


ALTISOURCE PORTFOLIO SOLUTIONS S.A.
NON-GAAP MEASURES
(in thousands, except per share data)
(unaudited)
Three months ended
March 31,
20262025
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 tax1,064 953 
Diluted share count11,111 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 count11,111 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 tax60 (396)
Diluted share count11,111 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 items257 393 
Diluted share count11,111 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 loan12,360 
Less: Cash and cash equivalents(30,340)
Net debt$140,920 
Note: Amounts may not add to the total due to rounding.
13

Source: View Original Filing on SEC EDGAR

FAQ

How did Altisource (ASPS) revenue perform in the first quarter 2026?

Altisource’s service revenue reached $45.1 million in Q1 2026, a 10% increase from $40.9 million in Q1 2025. Total revenue was $47.6 million versus $43.4 million, reflecting growth primarily from sales wins and stronger market conditions in key segments.

Did Altisource (ASPS) improve profitability in Q1 2026 versus Q1 2025?

Altisource’s profitability improved year over year, moving from a $4.5 million pretax loss to $0.4 million pretax income. Net loss attributable to Altisource narrowed from $5.3 million to $0.6 million, and adjusted net income turned positive at $2.1 million.

What was Altisource (ASPS) adjusted EBITDA for first quarter 2026?

Altisource reported adjusted EBITDA of $4.4 million in Q1 2026, compared with $5.3 million in Q1 2025. The adjusted EBITDA margin declined to 10% from 13%, which the company mainly attributes to changes in revenue mix across its businesses.

How did Altisource (ASPS) cash flow from operations change in Q1 2026?

Altisource generated $4.5 million of cash from operating activities in Q1 2026, versus negative $5.0 million in Q1 2025. Net cash from operations less capital expenditures was $4.3 million, indicating stronger cash generation compared with the prior-year quarter.

What were Altisource’s (ASPS) earnings per share metrics for Q1 2026?

For Q1 2026, Altisource reported a diluted loss per share of $(0.06), improving from $(0.74) in Q1 2025. Adjusted diluted earnings per share were $0.19, compared to an adjusted diluted loss per share of $(0.02) in the prior-year period.

What is Altisource’s (ASPS) liquidity and net debt position after Q1 2026?

As of March 31, 2026, Altisource held $30.3 million in cash and cash equivalents. Long-term debt, including current portion, totaled $201.3 million, resulting in net debt of $140.9 million when cash is subtracted from total debt.

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