The strong revenue growth and expanding Hubzu inventory signal operational momentum, but margin compression and negative operating cash flow warrant caution. The Project 45 EBITDA target ($45M run-rate by Q4 2028) provides a long-term anchor, but near-term profitability remains challenged. Monitor Q3 for margin improvement and debt reduction progress.
Price Chart
Executive Summary
Altisource Q2 2026 service revenue grew 19% YoY to $48.7M, beating consensus by ~13%, but adjusted diluted EPS of $0.17 missed the $0.20 estimate and fell 11% YoY. Adjusted EBITDA declined 18% to $4.4M with margin compression to 9%, while GAAP loss per share was $(0.05). The revenue beat is offset by profitability weakness, making the overall picture mixed.
Key Financial Metrics
Key Facts
- Service revenue $48.7M, +19% YoY (Q2 2025: $40.8M) and +8% sequentially
- GAAP diluted loss per share $(0.05) vs $1.48 EPS in Q2 2025 (which included an $18.5M tax benefit)
- Adjusted diluted EPS $0.17 vs $0.19 in Q2 2025 (-11%) and vs consensus $0.20 (-15%)
- Adjusted EBITDA $4.4M, -18% YoY, margin 9% vs 13% a year ago
- Total Hubzu foreclosure inventory grew 30% sequentially to 22,300 homes
- Repurchased $2.0M of debt at 23.7% discount, recognizing $0.7M gain
- Cash used in operations $6.6M vs $0.3M in Q2 2025, driven by receivables growth
- Net debt $145.8M, cash $23.2M at quarter end
Financial Impact
Revenue beat ~13% above consensus but adjusted EPS missed ~15%, with EBITDA margin down 4pp. Net loss improved slightly but cash burn increased.
Risk Factors
- Foreclosure market recovery slower than expected, limiting service revenue growth
- Customer concentration and reliance on Rithm-related business transition
- High net debt ($145.8M) with negative operating cash flow
- Adjusted EBITDA margin pressure from cost growth and revenue mix
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001462418-26-000047 |
| Document: asps-20260723.htm | 0001462418-26-000047 |
| Document: 0001462418-26-000047-index-headers.html | 0001462418-26-000047 |
| Document: 0001462418-26-000047-index.html | 0001462418-26-000047 |
| Document: 0001462418-26-000047.txt | 0001462418-26-000047 |
| 8-K Data (Synthetic) | 0001462418-26-000047 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | Press Release | $5.49 | awaiting T+20 | — | $5.53 (+0.68%) |
Aug 7, 2026 11w ago | Insider Cluster | $5.54 $5.59 | ▲ +0.90% | ▲ +1.82% | $5.53 (−0.18%) |
Aug 4, 2026 11w ago | Insider Cluster | $5.59 $5.61 | ▲ +0.36% | ▲ +0.96% | $5.53 (−1.07%) |
Jul 23, 2026 13w ago | 8-K | $5.80 $5.60 | ▼ −3.53% | ▼ −6.84% | $5.53 (−4.66%) |
Jul 20, 2026 14w ago | Press Release | $6.43 | awaiting T+20 | — | $5.53 (−14.00%) |
Apr 23, 2026 26w ago | Press Release | $6.22 $6.49 | ▲ +4.34% | ▼ −0.29% | $5.53 (−11.09%) |
Apr 20, 2026 27w ago | Press Release | $6.93 $6.33 | ▼ −8.66% | ▼ −12.86% | $5.53 (−20.20%) |
Mar 4, 2026 33w ago | Press Release | $6.70 $6.43 | ▼ −4.03% | ▲ +0.39% | $5.53 (−17.46%) |
Mar 2, 2026 34w ago | Press Release | $7.63 $6.55 | ▼ −14.15% | ▼ −6.22% | $5.53 (−27.52%) |
US Market Status
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