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Altisource Portfolio Solutions SA (ASPS)
NASDAQ:ASPS
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Altisource Portfolio Solutions SA
(NASDAQ:ASPS)
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Rating:49Neutral
Price Target:
$6.50
▼(-30.11% Downside)
Action:ReiteratedDate:03/07/26
The score is held back primarily by weak financial quality (negative equity, leverage risk, and ongoing negative free cash flow), with only partial offset from improving operations. Technicals are mixed (short-term stabilization but still below longer-term averages), and valuation is not compelling at a ~43 P/E. The earnings call adds moderate support due to 2026 growth and cash-flow guidance, though near-term customer roll-off and cost pressures remain key risks.
Positive Factors
Revenue rebound and improved profitability
Sustained year-over-year service revenue growth and a move to modestly positive GAAP profitability in 2025 indicate the company’s core services are regaining traction. This durable operational recovery supports steadier margins and underpins multi-quarter revenue visibility if organic volumes and conversions persist.
Material sales wins and growing pipeline
Meaningful, contracted sales wins and multi‑million pipelines across segments enhance forward revenue visibility and de-risk near-term growth. A larger, diversified book of business increases the potential to scale service delivery and improve margin leverage as those contracts convert over several quarters.
HUBZU marketplace and expanded REO inventory
Rapidly expanding HUBZU inventory creates a durable referral and transaction pipeline for auction and REO sales, increasing recurring marketplace fees and cross-sell opportunities. A scalable marketplace asset base supports long-term volume-driven revenue and strengthens competitive positioning in REO monetization.
Negative Factors
Highly stressed balance sheet
Persistently negative equity and debt materially larger than reported assets constrain financial flexibility, limit ability to fund growth organically, and raise refinancing risk. Over several quarters this makes the firm vulnerable to higher funding costs or covenants that can force strategic tradeoffs or asset sales.
Consistent negative operating and free cash flow
Ongoing cash burn, even if reduced versus prior years, prevents self-funding of debt paydown and reinvestment. Without sustained positive operating cash flow the company will remain dependent on external financing or asset sales, which can dilute returns and hamper execution of multi-year strategic plans.
Client concentration and contract roll-off risk
Material revenue tied to large partner agreements that can terminate creates structural volatility in referral flows and revenue mix. Losing or ramping down sizable clients strains scaling plans, complicates forecasting, and forces costly re‑acquisition or faster ramp of new wins to replace lost volumes.
Altisource Portfolio Solutions SA (ASPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.84M
Dividend YieldN/A
Average Volume (3M)17.89K
Price to Earnings (P/E)43.3
Beta (1Y)-0.89
Revenue Growth7.80%
EPS Growth83.33%
CountryUS
Employees1,160
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding11,276,236
10 Day Avg. Volume26,843
30 Day Avg. Volume17,892
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)-0.63
Price to Sales (P/S)0.41
P/FCF Ratio-13.63
Enterprise Value/Market Cap3.07
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit5.02
Enterprise Value/Ebitda48.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Altisource Portfolio Solutions SA Business Overview & Revenue Model
Company DescriptionAltisource Portfolio Solutions SA (ASPS) is a Luxembourg-based company that offers a wide range of services and technology products for the real estate and mortgage industries. The company's core offerings include asset management, origination, and default services, which are designed to enhance the efficiency and effectiveness of real estate operations and mortgage servicing. Altisource's solutions are utilized by mortgage servicers, real estate investors, and financial institutions to streamline processes, reduce costs, and manage risk in the management and disposition of real estate assets.
How the Company Makes MoneyAltisource Portfolio Solutions generates revenue primarily through service fees and technology solutions provided to its clients in the real estate and mortgage sectors. The company's revenue streams include mortgage and real estate services, such as property valuation, asset management, and foreclosure services. Additionally, Altisource earns income from its technology platforms, which support mortgage originations and servicing operations. Key partnerships with financial institutions and real estate companies, as well as a diversified client base, contribute significantly to its earnings. The company's focus on efficiency improvements and cost reductions in real estate transactions allows it to maintain steady revenue streams from ongoing service contracts and technology subscriptions.
Altisource Portfolio Solutions SA Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by revenue growth, strong segment wins (notably HUBZU and origination/Lenders One), improved GAAP results and a constructive 2026 outlook with expected positive operating cash flow at the midpoint. However, the message included notable near-term headwinds: the expected roll-off of Rithm/Onity-related business, a large corporate loss, one-time litigation and debt-related charges, and market/timing risks that temper the pace of consolidated profitability. On balance, the highlights — solid revenue gains, meaningful sales wins and a clear strategic plan — outweigh the lowlights, although execution on ramping wins and offsetting Rithm-related declines will be critical.Q4-2025 Updates
Positive Updates
Full-Year Service Revenue Growth
2025 service revenue increased 7% year-over-year to $161,300,000. Fourth quarter 2025 service revenue was $39,900,000, up 4% year-over-year. 2026 guidance targets $165,000,000 to $185,000,000 (midpoint ~8.5% growth).
Adjusted EBITDA and Segment Improvements
Business-segment adjusted EBITDA rose $3,000,000, or 7%, to $47,600,000 in 2025. Total company adjusted EBITDA improved by $900,000, or 5%, to $18,300,000 for the year. Fourth quarter business-segment adjusted EBITDA was $11,400,000 (flat YoY).
GAAP Loss Narrowed and Strong Cash Metrics
2025 GAAP loss before income taxes improved to $14,100,000 from $32,900,000 in 2024. Adjusting for one-time items, net cash used in operating activities would have been close to zero and net cash used improved by ~ $60,000,000 over five years. Year-end unrestricted cash was $26,600,000.
HUBZU Marketplace Momentum
HUBZU foreclosure auction and REO inventory grew 137% since 9/30 to 13,500 assets as of mid-February, driven by recent sales wins. Management expects revenue from these referrals to grow as assets proceed to sale.
Servicer & Real Estate Segment Wins and Performance
2025 Servicer & Real Estate service revenue grew 5% to $126,000,000 and adjusted EBITDA increased 6% to $44,600,000 with higher margins from revenue mix. The segment secured estimated $20,600,000 in annualized stabilized service revenue wins in 2025 (including $11,500,000 in Q4) and ended year with a weighted average sales pipeline of $19,300,000.
Origination Segment Acceleration
Origination service revenue grew 16% to $35,200,000 in 2025; adjusted EBITDA increased 19% to $2,900,000. Fourth-quarter origination revenue accelerated 40% year-over-year. Origination secured ~$1,800,000 in wins in 2025 and ended the year with an estimated $14,900,000 pipeline, driven by Lenders One expansion.
Positive 2026 Cash Flow and Guidance
At the midpoint of 2026 guidance management expects to generate positive operating cash flow. Guidance also forecasts service revenue growth and close-to-flat adjusted EBITDA, reflecting ramp of sales wins and pipeline conversions.
Strategic Plan and Long-Term Goal (Project 45)
Management reiterated Project 45, targeting a $45,000,000 adjusted EBITDA run rate by 2028, supported by growth in Lenders One, HUBZU Marketplace, foreclosure trustee, title, Granite, renovation and field services.
Negative Updates
Rithm and Onity Contract Roll-Off Risk
The cooperative brokerage agreement with Rithm expired 8/31/2025. Management assumes the Rithm-related business will roll off during H1 2026 and Rithm's termination of Onity servicing agreements will reduce foreclosure trustee, title and field service referrals, materially shrinking Rithm/Onity as a revenue source.
Large Corporate Segment Losses and Cost Pressure
2025 corporate adjusted EBITDA loss was $29,300,000, reflecting higher year-over-year costs (including fewer nonrecurring benefits from 2024 and higher foreign currency expenses). Q4 corporate costs were $700,000 higher than prior year, pressuring total company EBITDA (Q4 total company adjusted EBITDA was only $4,000,000).
One-Time Charges and Debt-Related Expenses
2025 included a $7,500,000 loss from a legacy litigation settlement and $3,600,000 of debt exchange transaction expenses. Management also noted $1,200,000 of higher first-quarter cash interest expense related to the prior debt agreement, which depressed near-term results.
GAAP Loss Remains and Company-Level EBITDA Growth Is Modest
Although GAAP loss narrowed, the company still reported a GAAP loss before income taxes of $14,100,000 in 2025. Total company adjusted EBITDA growth was modest (+5% year-over-year or $900,000), indicating limited improvement at the consolidated level.
Challenging Market Dynamics and Rising Delinquencies
The business operates in a challenging environment: 90+ day mortgage delinquency modestly increased to 1.45% in December 2025 and there were 560,000 late-stage delinquent mortgages (highest since Feb 2023). While foreclosure starts grew 25% and foreclosure sales grew 17% vs. 2024, volumes remain below pre-pandemic levels; FHA policy changes may add borrower pressure in 2026.
Revenue Mix and Timing Risks
Management expects projected adjusted EBITDA to be affected by revenue mix, modest growth in corporate costs, and timing differences related to potential loss of Rithm/Onity business and the ramp of new sales wins, creating execution and timing risk against guidance.
Company Guidance
For 2026 management is guiding service revenue of $165.0 million to $185.0 million and adjusted EBITDA of $15.0 million to $20.0 million (the midpoint implies ~8.5% service revenue growth and roughly flat adjusted EBITDA versus 2025), and expects to generate positive operating cash flow at the midpoint; the outlook assumes roughly flat industry rates, the MBA’s 2026 origination forecast of 5.8 million loans (≈7% YoY growth with refinance +8% and purchase +6%), the onboarding/ramp of recent sales wins (including $13.2 million of Q4 stabilized annual revenue and 2025 Servicer & Real Estate wins of $20.6 million including $11.5 million in Q4, plus $1.8 million of Origination wins), conversion of pipelines (Servicer & Real Estate weighted pipeline $19.3 million; Origination pipeline $14.9 million), price increases for certain services, and an assumed loss/roll‑off of Rithm/CBA and Onity‑related business in H1 2026, with projected benefits from scale efficiencies partly offset by product mix and modestly higher corporate costs as the company pursues its Project 45 target of $45.0 million adjusted EBITDA by 2028.Altisource Portfolio Solutions SA Financial Statement Overview
Summary
Operations are improving (revenue rebounded strongly and profitability moved to modestly positive in 2025), but the overall financial profile remains high risk due to deeply negative equity, sizable debt relative to assets, and persistently negative operating and free cash flow.Income Statement
Revenue has rebounded strongly, with 2025 up ~78% versus 2024 and a multi-year recovery from the 2020–2023 decline. Profitability has also improved meaningfully from deep losses in 2022–2024 to modestly positive net income in 2025. That said, margins remain thin (about 0.9% net margin and ~0.2% EBITDA margin in 2025), and results have been volatile over the period, with several years of large net losses and negative operating profitability.33
Negative
Balance Sheet
The balance sheet is highly stressed, with negative stockholders’ equity across all years shown (still about -$106M in 2025). Debt remains large relative to the company’s size (about $191M of total debt versus ~$140M of total assets in 2025), and while debt has come down from 2021–2022 levels, leverage remains a key risk given the negative equity position and historically weak earnings profile.18
Very Negative
Cash Flow
Cash generation is consistently weak: operating cash flow and free cash flow are negative in every year shown, including 2025 (about -$5.1M). While the cash burn has improved substantially versus 2021–2023, free cash flow growth is sharply negative in 2025 and cash flow still does not support debt reduction or reinvestment without external funding. The combination of thin profitability and ongoing negative cash flow remains the central financial concern.12
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 170.97M | 160.13M | 145.07M | 153.12M | 178.45M |
| Gross Profit | 48.91M | 49.53M | 29.65M | 21.82M | 7.09M |
| EBITDA | 5.02M | 13.62M | -6.90M | -19.63M | 51.83M |
| Net Income | 1.61M | -35.64M | -56.29M | -53.42M | 11.81M |
Balance Sheet | |||||
| Total Assets | 139.80M | 143.61M | 154.86M | 195.00M | 257.81M |
| Cash, Cash Equivalents and Short-Term Investments | 26.60M | 29.81M | 32.52M | 51.02M | 98.13M |
| Total Debt | 192.23M | 233.86M | 219.13M | 250.96M | 251.56M |
| Total Liabilities | 249.26M | 300.32M | 279.91M | 313.88M | 326.68M |
| Stockholders Equity | -110.21M | -157.38M | -125.67M | -119.65M | -70.14M |
Cash Flow | |||||
| Free Cash Flow | -5.13M | -5.03M | -21.83M | -45.75M | -61.78M |
| Operating Cash Flow | -5.07M | -5.03M | -21.83M | -44.89M | -60.41M |
| Investing Cash Flow | -319.00K | 2.25M | 0.00 | -767.00K | 102.76M |
| Financing Cash Flow | 3.18M | 55.00K | 2.98M | -2.22M | -2.30M |
Altisource Portfolio Solutions SA Technical Analysis
Positive
9.30
Price Trends
6.13
Positive
7.33
Negative
9.13
Negative
Market Momentum
0.15
Positive
57.00
Neutral
45.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPS, the sentiment is Positive. The current price of 9.3 is above the 20-day moving average (MA) of 6.69, above the 50-day MA of 6.13, and above the 200-day MA of 9.13, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 45.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASPS.
Altisource Portfolio Solutions SA Risk Analysis
Altisource Portfolio Solutions SA disclosed 49 risk factors in its most recent earnings report. Altisource Portfolio Solutions SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Altisource Portfolio Solutions SA Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $195.56M | 18.48 | 1.84% | ― | -6.06% | ― | |
52 Neutral | $37.77M | -0.97 | -135.60% | ― | -36.25% | 11.92% | |
51 Neutral | $25.26M | -3.05 | -46.07% | ― | 32.78% | 36.50% | |
50 Neutral | $146.44M | 13.94 | 10.23% | ― | 6.62% | 30.94% | |
49 Neutral | $79.84M | 43.32 | ― | ― | 7.80% | 83.33% | |
45 Neutral | $29.11M | -8.84 | ― | ― | ― | ― |
* Real Estate Sector Average
ASPS
Altisource Portfolio Solutions SA
7.08
-0.28
-3.80%
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OPAD
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DOUG
Douglas Elliman Inc.
1.66
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OMH
Ohmyhome Limited
1.26
-1.16
-47.93%
Altisource Portfolio Solutions SA Corporate Events
Business Operations and StrategyExecutive/Board ChangesLegal Proceedings
Altisource Director Plans Exit Amid Legal Settlement Resolution
Positive
Feb 18, 2026
On February 13, 2026, Altisource disclosed that board member and Audit Committee Chair Roland Mueller-Ineichen will not stand for re-election at the 2026 Annual General Meeting, though he will remain in his roles until his current term expires, and the company stated his decision does not stem from any disagreement over operations, policies, or practices. In the fourth quarter of 2025, the company secured two key agreements in its Hubzu unit that helped drive inventory growth to about 13,500 assets by February 15, 2026, up roughly 137% from September 30, 2025, and on February 11, 2026, its subsidiary Altisource Solutions, Inc. agreed to a $7.5 million settlement, recorded in the fourth quarter of 2025, to resolve long-running fair housing litigation, which the company views as beneficial for shareholders by eliminating the cost and uncertainty of continued legal proceedings.
The first Hubzu agreement covers REO asset management and foreclosure auction services for a new residential loan servicer customer, while the second expands CWCOT first-chance foreclosure auction services for an existing client, and Altisource expects revenue from these wins to ramp as REO and foreclosure referrals move to sale, subject to referral volumes, conversion rates, and market conditions. Under the settlement, which includes no admission of liability and is to be funded from available cash, Altisource anticipates that a significant portion of the settlement and defense costs may be reimbursable under insurance, though one insurer is challenging coverage, and the deal provides for a full release of claims and dismissal of the litigation with prejudice, reducing operational distraction and legal risk.
The most recent analyst rating on (ASPS) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Altisource Portfolio Solutions SA stock, see the ASPS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.