I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q2, the actual value is USD 50.66 M.
EPS: As of FY2026 Q2, the actual value is USD -0.05.
EBIT: As of FY2026 Q2, the actual value is USD 2.086 M.
Second Quarter 2026 Financial Highlights
Altisource Portfolio Solutions S.A. reported service revenue of $48.7 million in the second quarter of 2026, an increase of 19% compared to the second quarter of 2025, and total revenue of $50.663 million, up 17% year-over-year. Gross profit for the quarter was $12.820 million, marking a 2% decrease from the same period in 2025, with a gross profit margin on service revenue of 26% compared to 32% in Q2 2025. Income from operations decreased by 65% to $1.131 million from $3.231 million in Q2 2025. The company reported a Loss before income taxes and non-controlling interests of - $43 thousand for Q2 2026, a 123% decrease from $187 thousand in Q2 2025. Net loss attributable to Altisource Portfolio Solutions S.A. was - $0.562 million, a 103% decline from a net income of $16.582 million in Q2 2025, largely due to an $18.5 million benefit in 2025 from the reversal of reserves for uncertain tax positions and related accrued interest. Adjusted EBITDA for the second quarter 2026 was $4.406 million, down 18% from $5.382 million in Q2 2025, resulting in an Adjusted EBITDA margin of 9% compared to 13% in the prior year. This was primarily attributed to a non-recurring benefit in Q2 2025 and higher costs to support revenue growth.
Cash Flow
Cash used in operating activities for Q2 2026 was - $6.630 million, representing a $6.3 million increase in cash used compared to - $306 thousand in Q2 2025, mainly driven by an increase in receivables from revenue growth. Net cash used in operating activities less additions to premises and equipment was - $6.861 million, compared to - $309 thousand in Q2 2025. Altisource Portfolio Solutions S.A. ended the quarter with $23.186 million in cash and cash equivalents.
Debt and Operational Metrics
Altisource Portfolio Solutions S.A. repurchased $2.0 million of its debt at a 23.7% discount, recognizing a net gain of $0.696 million on the early extinguishment of debt. Net debt as of June 30, 2026, was $145.808 million. Business Segments Adjusted EBITDA (Servicer and Real Estate and Origination segments) totaled $12.265 million, or 25.2% of Service revenue, in Q2 2026, down from $12.851 million, or 31.5% of Service revenue, in Q2 2025. This decrease was primarily due to a non-recurring benefit in Q2 2025 related to a legacy matter in the Servicer and Real Estate segment and higher costs to support revenue growth. Operational highlights include sales wins estimated to represent potential annualized service revenue of $5.2 million for the Servicer and Real Estate segment and $7.1 million for the Origination segment. Total Hubzu inventory grew 30% since Q1 2026. The company ended the quarter with an estimated weighted average sales pipeline of $25.1 million to $31.3 million in potential estimated annual revenue.
Outlook
Altisource Portfolio Solutions S.A. believes that sales wins, ongoing efficiency initiatives, and continued sales momentum position it well to achieve its Project 45 objective of $45 million in run rate Adjusted EBITDA by the fourth quarter of 2028. The company anticipates that deploying AI and other efficiency initiatives will improve product development speed and EBITDA margins.