Altisource Reports $47.6 Million Revenue in Q1 2026, Driven by 71% Growth in Origination Segment

Altisource Portfolio Solutions S.A. reported a revenue of $47.6 million for the first quarter of 2026, marking a 10% increase from $43.4 million in the same period of 2025. The growth was primarily driven by a 71% surge in service revenue within the Origination segment, which reached $13.7 million, compared to $8.0 million in the prior year. However, the Servicer and Real Estate segment experienced a 5% decline in service revenue, attributed to a one-time pricing adjustment benefit in 2025 and lower volumes in the Renovation business. The company reported a net loss of $0.6 million, a significant improvement from a net loss of $5.3 million in the previous year.

In terms of operational metrics, Altisource's gross profit decreased slightly to $13.1 million, representing 29% of service revenue, down from 33% in the prior year. The increase in cost of revenue, which rose by 14% to $34.5 million, was driven by higher outside fees and services associated with the growth in the Origination segment. Selling, general and administrative expenses also increased by 13% to $11.4 million, reflecting higher compensation and professional services costs.

The company continues to rely heavily on its largest customer, Onity, which accounted for 37% of total revenue in the first quarter of 2026. Altisource's relationship with Onity is critical, especially as Onity faces regulatory challenges and the potential loss of significant clients, which could adversely affect Altisource's revenue. The company is also navigating the impacts of the termination of Rithm's subservicing agreement with Onity, effective January 31, 2026, which may further influence revenue streams.

Looking ahead, Altisource is focused on expanding its market share and enhancing its service offerings in both the Servicer and Real Estate and Origination segments. The company aims to leverage its existing customer base while attracting new clients, particularly as the demand for default-related services is expected to grow amid changing market conditions. Altisource's management remains cautious about the potential impacts of economic fluctuations, interest rate changes, and regulatory developments on its operations and financial performance.