Key Points – Revenue growth accelerated in Q2 as Altisource reported service revenue of $48.7 million, up 19% year over year, driven by customer wins in both the origination and servicer/real estate segments.
The company said this more than offset declines in business tied to Rithm. – Customer diversification improved sharply, with revenue from customers other than Onity and Rithm rising to 65% of total service revenue, the highest level since the company’s IPO
Management also pointed to growing Hubzu inventory and a stronger sales pipeline as signs of continued progress. – Margins and cash flow were pressured despite growth, as adjusted EBITDA declined due to prior-year one-time benefits, higher growth-related costs, and a $6.6 million use of operating cash tied mainly to receivables. Altisource said it repurchased $2 million of debt and is using AI initiatives to improve efficiency and support future margin expansion. Altisource Portfolio Solutions (NASDAQ:ASPS) reported higher second-quarter 2026 service revenue as new customer wins helped offset a decline in business tied to Rithm, while management said the company is making progress toward diversifying its customer base and improving efficiency through artificial intelligence initiatives.
Chairman and Chief Executive Officer Bill Shepro said Altisource generated service revenue of $48.7 million in the quarter, up 19% from the second quarter of 2025 and 8% from the prior quarter. The increase reflected growth in both of the company’s operating segments, including a 62% year-over-year increase in the origination segment and an 8% increase in the servicer and real estate segment. “Service revenue growth from customer wins has more than replaced the loss of a portion of the Rithm-related business, as demonstrated by our more diversified customer base and growing Hubzu inventory,” Shepro said. Despite the revenue growth, Shepro said adjusted EBITDA and adjusted EBITDA margins declined from the prior-year period,…