Altisource Portfolio Solutions S.A. (ASPS) Earnings
Altisource Portfolio Solutions S.A. is expected to report next earnings on October 22, 2026 (in NaN days), with a consensus EPS estimate of $0.18. ASPS has beaten EPS estimates in 4 of its last 8 reported quarters (average surprise +6.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $0.20 | $0.17 | -15.0% | $51M | +17.7% |
| Apr 23, 2026 | $0.18 | $0.19 | +5.6% | $48M | +18.8% |
| Mar 4, 2026 | — | $0.11 | — | $42M | — |
| Oct 23, 2025 | — | $0.10 | — | $42M | — |
| Jul 24, 2025 | — | $0.19 | — | $43M | — |
| May 1, 2025 | — | $-0.02 | — | $43M | — |
| Mar 13, 2025 | $-2.16 | $-1.44 | +33.3% | $41M | +0.0% |
| Oct 24, 2024 | $-0.23 | $-0.23 | +0.0% | $41M | -9.7% |
| Jul 25, 2024 | $-0.22 | $-0.21 | +4.5% | $41M | -9.7% |
| Apr 25, 2024 | $-0.26 | $-0.20 | +23.1% | $42M | +19.8% |
| Mar 7, 2024 | $-0.33 | $-0.37 | -12.1% | $36M | -0.9% |
| Oct 26, 2023 | $-0.34 | $-0.44 | -29.4% | $36M | -0.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Quarterly Performance • The company delivered sequential and YoY service revenue growth across both segments, with new customer wins fully offset lost revenue from a portion of the Rhythm-related business. • Total company adjusted EBITDA and margins declined QoQ primarily due to a non-recurring 2025 Q2 benefit from a legacy servicer and real estate segment matter and higher growth-related costs, partially offset by a 2026 Q2 gain from $2 million in debt repurchase. • Customer diversification has progressed significantly: revenue from non-Onity/Rhythm-related customers now accounts for 65% of total service revenue, up from 46% YoY, marking the highest share of diversified revenue since Altisource's 2009 IPO. • The company reduced outstanding debt during the quarter and ended Q2 with $23.2 million in unrestricted cash. - Strategic and Operational Initiatives • The company has advanced from AI evaluation to practical, scalable deployment across the business, with a centralized AI enablement model to prioritize high-impact use cases. • AI deployment is targeted at enhancing customer capabilities, improving operating efficiency, accelerating software development speed, reducing commercial software costs, and strengthening core platforms including Equator, HUBZoo, and RealSynergy. • AI initiatives are already improving software development productivity and are expected to support long-term margin expansion aligned with the company's Project 45 objective. - Market Context • The company delivered strong growth despite ongoing low mortgage delinquency and origination volumes, which remain well below pre-pandemic levels. • Recent industry trends show modest improvement: 90+ day delinquency plus loans in foreclosure rose 28% YoY and 7% quarter-to-date as of May 2026; 2026 year-to-date foreclosure starts are up 14% YoY and foreclosure sales are up 19% YoY. The MBA projects 4% total origination growth in 2026 to 5.7 million loans.
Guidance
- Third quarter 2026 adjusted EBITDA is expected to be roughly flat sequentially, with adjusted EBITDA expected to increase in the fourth quarter of 2026. - Service revenue from new customer wins in the servicer and real estate segment is expected to continue growing over the next several quarters as new business stabilizes, with adjusted EBITDA for the segment growing as this new revenue ramps. - Service revenue and adjusted EBITDA for the origination segment are expected to grow, based on onboarding of recent wins, current pipeline, and forecasted market conditions. - Corporate costs are expected to return to Q1 2026 levels and remain relatively stable as total revenue grows. - Customer diversification trends are expected to continue through 2026, with the share of revenue from non-Onity/Rhythm customers continuing to rise. - The company reaffirmed its long-term Project 45 objective of reaching $45 million in run-rate adjusted EBITDA by the fourth quarter of 2028.
Segment performance
1. Servicer and Real Estate Segment: Q2 2026 service revenue was $34.4 million, an 8% increase year-over-year (YoY), contributing 70.6% of total Q2 2026 service revenue. Adjusted EBITDA for the segment was $11.7 million, a 2% decline YoY. The segment secured $5.2 million in annualized stabilized service revenue wins in Q2, held a $8.2 million stabilized weighted average sales pipeline at quarter-end, and generated $9.1 million in Q2 revenue (annualized $36.5 million) from sales wins since 2024. HUBZoo inventory grew 30% quarter-over-quarter (QoQ) to 22,300 assets. 2. Origination Segment: Q2 2026 service revenue increased 62% YoY, driven by new sales wins, contributing 29.4% of total Q2 2026 service revenue. Adjusted EBITDA declined as the company invested in leadership, staff, and outside services to support future growth. The segment secured $7.1 million in annualized sales wins in Q2 and held a $20 million weighted average sales pipeline at quarter-end. 3. Corporate Segment: Q2 2026 adjusted EBITDA loss was $7.9 million, a $400,000 increase in loss compared to Q2 2025, driven primarily by changes in non-recurring items. Total company Q2 2026 service revenue was $48.7 million, up 19% YoY and 8% QoQ. GAAP pre-tax earnings were nearly breakeven in Q2 2026, compared to $200,000 pre-tax income in Q2 2025.
Risks & headwinds
- Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from projections, with key risk factors detailed in the company's 2025 10-K and 2026 10-Q filings. - The company faces ongoing residual revenue exposure to Onity and Rhythm, with expected further declines in related revenue through the third quarter of 2026, depending on asset transfer approvals and the performance of Onity's portfolio. - Revenue conversion from HUBZoo inventory depends on state-level foreclosure and eviction timelines that carry high variability, leading to uncertainty around the timing of future revenue recognition from growing inventory. - Opportunistic debt repurchases are subject to approval from the company's first lien/super senior term loan lenders, limiting the company's flexibility for this capital allocation option.
Analyst Q&A
Q: HubZoo inventory grew 30% QoQ, and inventory is cited as a future revenue driver. What is the general timeline for inventory to convert to realized revenue, and do prior quarter inventory gains still have unrealized revenue runway? /
A: The company is already starting to benefit from growing inventory, but it remains early in conversion. REO assets typically take 9 to 12 months from receipt to sell and generate revenue, while foreclosure auction referrals received at foreclosure start take an average of 12 months to reach sale, with wide variability based on state-specific rules and processes. All prior inventory gains, including 1Q26 additions, still have remaining runway for future revenue realization.
Q: After the $2 million term loan paydown this quarter, what is the company's approach to capital allocation going forward? Will debt reduction remain a priority? /
A: Under current debt agreements, the company can opportunistically repurchase up to $3 million of debt annually, subject to senior lender approval, which management views as an attractive use of cash especially when repurchasing at a discount. Outside of opportunistic debt buys, the company is prioritized on growing revenue, improving EBITDA margins through the end of 2026, and building a strong pipeline to generate higher free cash flow. The goal is to position the company to refinance its debt on better terms over the next several years.
Q: Will the percentage of revenue from Onity and Rhythm continue to decline long-term, and what is the expected end level of this exposure? /
A: A portion of the remaining Rhythm portfolio held by Onity (a $6.9 billion portion) is subject to transfer approvals, so some revenue from this source is expected to remain for the foreseeable future. Management expects further declines in Onity/Rhythm revenue in Q3 2026, with the decline expected to stabilize by Q4 2026. Longer-term changes to this exposure will depend on Onity's portfolio growth and delinquency levels, which are uncertain.
Q: Net operating cash flow was negative $6.6 million this quarter driven by receivables growth. Is this a normal trend tied to growth, or a liquidity concern? /
A: The working capital draw is entirely normal, driven by receivables growth that aligns with the company's 19% YoY revenue growth, plus $1.5 million spent on debt repurchase this quarter. Receivables will fluctuate seasonally and grow gradually alongside revenue, but there is no cause for liquidity concern. Cash balances have already started rebuilding in early Q3 2026, and the company remains comfortable with its liquidity position.