Altisource Q1 Service Revenue Rises 10%, Origination Segment Jumps 71%
Altisource generated Q1 2026 service revenue of $45.1 million, a 10% year-over-year increase, while pretax income improved by $4.9 million to $0.4 million. The Origination segment saw service revenue surge 71% and Adjusted EBITDA climb 166%, and cash from operations rose by $9.4 million to $4.5 million with $30.3 million cash on hand.
1. First Quarter Financial Results
Altisource reported Q1 2026 service revenue of $45.1 million, up 10% year-over-year, income from operations of $1.7 million and pretax income of $0.4 million, improving by $4.9 million compared to Q1 2025. Net loss narrowed to $0.6 million, or $0.06 per diluted share.
2. Segment Performance
Origination segment service revenue grew 71% with Adjusted EBITDA up 166%, driven by sales wins and a stronger origination market. The Servicer and Real Estate segment generated potential annualized service revenue of $12.4 million from recent wins and the Origination segment $4.7 million, though combined segment Adjusted EBITDA margin fell to 26.7% from 30.5%.
3. Cash Flow and Liquidity
Cash provided by operating activities rose by $9.4 million to $4.5 million in Q1 and the company ended the quarter with $30.3 million in cash and cash equivalents. Adjusted EBITDA stood at $4.4 million, a 15% decline from the prior year.
4. Inventory and Sales Pipeline
Hubzu foreclosure auction and REO inventory totaled 17,200 homes by quarter end, more than tripling since September 2025. The weighted average sales pipeline ranged from $25.7 million to $32.1 million of potential annualized service revenue based on forecasted closure probabilities.