Altisource Portfolio Solutions S.A. earnings

Management highlights

• Off to a strong start in 2026 with growth in service revenue and pre-tax gap earnings. • Origination segment saw accelerated service revenue and EBITDA growth due to sales wins and a stronger origination market. • Servicer and real estate segment has HUD's new inventory at 17,200 homes, with sales wins in title and foreclosure trustee businesses. • Origination segment first quarter service revenue up 71% to $13.7 million, adjusted EBITDA more than doubled. • Servicer and real estate segment first quarter service revenue down 5% to $31.4 million, adjusted EBITDA down 10%. • Secured $12.4 million in annualized stabilized service revenue wins in servicer and real estate segment, with a sales pipeline of $11.7 million. • Total HUBZoo inventory tripled since September 30th to 17,200 assets as of March 31st and over 18,800 earlier this week. • Corporate adjusted EBITDA loss was $7.6 million, with expectation of stable corporate costs as revenue grows.

Guidance

• Anticipates momentum to continue throughout the year. • Forecasts full-year service revenue growth in servicer and real estate segment from HUBZoo inventory growth and recent sales wins, with revenue growth partially offset by lower ONIDI and Rhythm revenue. • Anticipates strong full-year service revenue growth in origination segment based on sales wins, pipeline, and forecasted market conditions. • Guided to positive operating cash flow for the year.

Segment performance

For the first quarter, total service revenue was $45.1 million, a 10% increase over Q1 2025. Origination segment service revenue grew 71% to $13.7 million, with adjusted EBITDA doubling to $1.2 million. Servicer and real estate segment service revenue was $31.4 million, down 5% from Q1 2025, with adjusted EBITDA at $10.8 million, down 10%. Corporate segment adjusted EBITDA loss was $7.6 million. Origination segment contributed 30.4% to total service revenue ($13.7 million / $45.1 million), servicer and real estate segment contributed 69.6% ($31.4 million / $45.1 million).

Risks & headwinds

• Forward-looking statements include risks and uncertainties that could cause actual results to differ. • Need to review forward-looking statements sections, quarterly slides, and 2025 Form 10-K risk factors.

Analyst Q&A

• Q: On the sales pipeline in the servicer and real estate segment, why did it decrease from $19.3 million to $11.7 million and what to expect going forward?

  A: The difference reflects over $10 million in sales wins, and they'll work to rebuild the pipeline.

• Q: Net cash provided by operating activities was $4.5 million, significant increase year over year. Should we expect positive cash flow throughout the year?

  A: Guided to positive operating cash flow for the year, with fluctuations from quarter to quarter but anticipate positive for the year.

• Q: Is positive cash flow more supported by servicer and real estate segment or origination segment?

  A: Servicer and real estate segment has larger EBITDA, so more cash flow comes from there, but expected to become more balanced over time.