Altisource Portfolio Solutions S.A. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Service revenue for the third quarter of 2026 was $49.8 million, a 26% increase compared to $39.7 million in the same quarter of 2025.
• Total revenue for the third quarter of 2026 was $51.9 million, a 24% increase compared to $41.9 million in the same quarter of 2025.
• Gross profit for the third quarter of 2026 was $12.1 million, a 7% increase compared to $11.3 million in the same quarter of 2025.
• Income from operations for the third quarter of 2026 was $0.8 million, a 47% increase compared to $0.5 million in the same quarter of 2025.
• Loss before income taxes and non-controlling interests for the third quarter of 2026 was $(993) thousand, a 40% improvement compared to $(1.7) million in the same quarter of 2025.
• Net loss attributable to Altisource for the third quarter of 2026 was $(1.4) million, a 42% improvement compared to $(2.4) million in the same quarter of 2025.
• Diluted loss per share for the third quarter of 2026 was $(0.12), a 45% improvement compared to $(0.22) in the same quarter of 2025.
• Adjusted diluted earnings per share for the third quarter of 2026 was $0.13, a 30% increase compared to $0.10 in the same quarter of 2025.
• Adjusted EBITDA for the third quarter of 2026 was $4.3 million, a 17% increase compared to $3.6 million in the same quarter of 2025.
• Adjusted EBITDA margin for the third quarter of 2026 was 8.5%, a decline from 9.1% in the same quarter of 2025.
• Net cash provided by operating activities for the third quarter of 2026 was $3.5 million, a 385% increase compared to $0.7 million in the same quarter of 2025.
• Cash and cash equivalents at the end of the third quarter of 2026 were $25.1 million.
• For the nine months ended September 30, 2026, the Company recognized a $1.0 million gain on early extinguishment of debt from repurchases of debt under the New Facility at a discount of 23.7%.

Guidance and Future Outlook:

• Management has outlined "Project 45," an objective to reach $45 million of run-rate Adjusted EBITDA by the fourth quarter of 2028.
• AI and other efficiency initiatives are accelerating product development speed and are anticipated to drive scalability and operating leverage in upcoming quarters.
• Customer wins are continuing to ramp, with revenue from customers outside of Onity and Rithm growing 96% year over year and representing 72% of Service revenue.

Business Segments and Product Lines:

• Adjusted EBITDA in the Servicer and Real Estate and Origination segments (Business Segments) was $11.3 million for the third quarter of 2026, representing 22.8% of Service revenue, compared to $10.9 million (27.5% of Service revenue) in the same quarter of 2025.
• Sales wins generated potential annualized service revenue on a stabilized basis of $2.7 million for the Servicer and Real Estate segment and $6.3 million for the Origination segment.
• Total Hubzu inventory grew 16% since the second quarter of 2026 and more than quadrupled since September 30, 2025.
• The estimated weighted average sales pipeline at the end of the quarter was between $27.8 million and $34.7 million of potential estimated annual revenue on a stabilized basis, comprising $11.4 million to $14.2 million in the Servicer and Real Estate segment and $16.4 million to $20.6 million in the Origination segment.

Market and Competitive Landscape:

• Industrywide foreclosure initiations were 20% higher for the eight months ended August 31, 2026, compared to the same period in 2025, though still 6% lower than the pre-COVID-19 period in 2019.
• Industrywide foreclosure sales were 17% higher for the eight months ended August 31, 2026, compared to the same period in 2025, though still 40% lower than the pre-COVID-19 period in 2019.
• Industrywide mortgage origination unit volume decreased by 6% for the third quarter of 2026 compared to the same period in 2025, driven by a 5% decrease in purchase origination unit volume and an 8% decrease in refinancing origination unit volume.

Risks and Challenges:

• Adjusted EBITDA margin declined modestly due to revenue mix changes and continued investment in current and future growth, largely offset by stable corporate costs on growing revenue.
• The Company faces risks related to customer concentration, impacts to default-related referrals from government, investor, or servicer actions, technology disruptions, regulatory compliance, and macro-economic conditions.

Management Commentary and Tone:

• William B. Shepro, Chairman and Chief Executive Officer, expressed pleasure with the third quarter 2026 performance, citing year-over-year growth in Service revenue and Adjusted EBITDA in both segments.
• Management highlighted that the continued ramp and seasoning of customer wins, greater operating leverage, and disciplined cost management are the core building blocks of Project 45.

Other Key Points:

• The Company ended the quarter with $25.1 million in cash and cash equivalents.
• For the nine months ended September 30, 2025, net income included an $18.5 million income tax benefit related to the reversal of reserves for uncertain India tax positions.
• The Company repurchased $2.0 million and $0.9 million of debt in the second and third quarters of 2026, respectively, under the New Facility at a discount of 23.7%.
• Altisource does not provide foreclosure auction services to Rithm.