Financial Analysis

COMMITMENTS, CONTINGENCIES AND REGULATORY MATTERS We record a liability for contingencies if an unfavorable outcome is probable and the amount of loss can be reasonably estimated, including expected insurance coverage. For proceedings where the reasonable estimate of loss is a range, we record a best estimate of loss within the range. Litigation We are currently involved in legal actions in the course of our business, most of which seek monetary damages. Although the outcome of these proceedings cannot be predicted with certainty, we currently believe that their outcome, both individually and in the aggregate, other than as described below, will not have a material impact on our financial condition, results of operations or cash flows. National Fair Housing Alliance v. Altisource Solutions, Inc., et al. On or about February 1, 2018, the National Fair Housing Alliance (NFHA) and eighteen regional housing groups (collectively, the Plaintiffs) filed a civil complaint, subsequently amended, against Altisource Solutions, Inc. (ASI), a wholly owned subsidiary of the Company, Deutsche Bank National Trust, as Trustee, Deutsche Bank Trust Company Americas, as Trustee, and Ocwen Loan Servicing, LLC (n/k/a Onity Group, Inc.) (collectively, the Defendants) in the United States District Court for the Northern District of Illinois (the Litigation). The complaint alleged violations of the federal Fair Housing Act in connection with the maintenance and marketing of certain real estate owned …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT Long-term debt consists of the following: (in thousands) June 30, 2026 December 31, 2025 Senior secured term loans $ 156,666 $ 159,175 Super senior term loan 12,328 12,391 Total principal debt 168,994 171,566 Plus: Unamortized premium 19,522 22,157 Less: Unamortized discount (1,491) (1,707) Less: Unamortized debt issuance and amendment costs (814) (930) Long-term debt, net 186,211 191,086 Less: Current maturities of long-term debt (1,211) (1,225) Total long-term debt $ 185,000 $ 189,861 Principal payments are due as follows: (in thousands) Total 2026 (606) 2027 (1,211) 2028 (1,211) 2029 (14,458) 2030 (151,508) Total debt $ (168,994) Senior Secured Term Loans In April 2018, Altisource Portfolio Solutions S.A. and its wholly-owned subsidiary, Altisource S.a r.l. (the Borrower), entered into a credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, and certain lenders (the Credit Agreement). Under the Credit Agreement, Altisource borrowed $412 million in the form of senior secured term loans (the SSTL). Effective February 14, 2023, Altisource Portfolio Solutions S.A. and the Borrower entered into Amendment No. 2 to the Credit Agreement (as amended by Amendment No. 2, the Amended Credit Agreement). On February 19, 2025, Altisource Portfolio Solutions S.A. and the Borrower entered into agreements with 100% of the lenders under the SSTL (the Lenders). Under these agreements, the Lenders exchanged the SSTL with an outst …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of total revenue by segment and major source was as follows: Three months ended June 30, 2026 Three months ended June 30, 2025 (in thousands) Servicer and Real Estate Origination Total revenue Servicer and Real Estate Origination Total revenue Revenue recognized when services are performed or assets are sold $ 32,222 $ 14,165 $ 46,387 $ 29,644 $ 8,711 $ 38,355 Revenue related to technology platforms and professional services 2,180 210 2,390 2,308 200 2,508 Reimbursable expenses revenue 1,763 123 1,886 2,246 179 2,425 Total revenue $ 36,165 $ 14,498 $ 50,663 $ 34,198 $ 9,090 $ 43,288 Six months ended June 30, 2026 Six months ended June 30, 2025 (in thousands) Servicer and Real Estate Origination Total revenue Servicer and Real Estate Origination Total revenue Revenue recognized when services are performed or assets are sold $ 61,367 $ 27,808 $ 89,175 $ 60,129 $ 16,637 $ 76,766 Revenue related to technology platforms and professional services 4,385 410 4,795 4,688 377 5,065 Reimbursable expenses revenue 4,050 227 4,277 4,538 358 4,896 Total revenue $ 69,802 $ 28,445 $ 98,247 $ 69,355 $ 17,372 $ 86,727 Disaggregation of service revenue by the timing of revenue recognition was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2026 2025 2026 2025 Over-time revenue recognition $ 10,206 $ 9,499 $ 18,770 $ 20,243 Point-in-time revenue recognition 38,524 31,288 75,049 61,439 Total service revenue $ 48,730 $ 40,787 $ 93,819 $ 81,682

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The following table presents the carrying amount and estimated fair value of financial instruments and certain liabilities measured at fair value as of June 30, 2026 and December 31, 2025. The following fair values are estimated using market information and what the Company believes to be appropriate valuation methodologies under GAAP: June 30, 2026 December 31, 2025 (in thousands) Carrying amount Fair value Carrying amount Fair value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 23,186 $ 23,186 $ $ $ 26,603 $ 26,603 $ $ Restricted cash 1,398 1,398 3,890 3,890 Liabilities: Senior secured term loan 156,666 119,017 159,175 113,810 Super senior term loan 12,328 12,328 12,391 12,391 Fair Value Measurements on a Recurring Basis Cash and cash equivalents and restricted cash are carried at amounts that approximate their fair values due to the highly liquid nature of these instruments and are measured using Level 1 inputs. The fair value of our senior secured term loan is based on quoted mark prices. Based on the frequency of trading, we do not believe that there is an active market for our debt. Therefore, the quoted prices are considered Level 2 inputs. Our Super Senior Facility was measured using Level 3 inputs based on the present value of the future payments. As quoted market prices are not available and there is no trading, we believe that the contractual interest rates represent the market …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following is a summary of goodwill by segment: (in thousands) Servicer and Real Estate Origination Corporate and Others Total Balance as of June 30, 2026 and December 31, 2025 $ 30,681 $ 25,279 $ $ 55,960 Intangible Assets, net Intangible assets, net consist of the following: Weighted average estimated useful life (in years) Gross carrying amount Accumulated amortization Net book value (in thousands) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Definite lived intangible assets: Customer related intangible assets 9 $ 213,912 $ 213,912 $ (207,661) $ (206,182) $ 6,251 $ 7,730 Operating agreement 20 35,000 35,000 (28,729) (27,854) 6,271 7,146 Trademarks and trade names 16 9,709 9,709 (8,383) (8,198) 1,326 1,511 Non-compete agreements 2 432 432 (165) (41) 267 391 Intellectual property 1 368 368 (245) (61) 123 307 Total $ 259,421 $ 259,421 $ (245,183) $ (242,336) $ 14,238 $ 17,085 Amortization expense for definite lived intangible assets was $2.8 million and $2.5 million for the six months ended June 30, 2026 and 2025, respectively ($1.4 million and $1.3 million for the second quarter of 2026 and 2025, respectively). Forecasted annual definite lived intangible asset amortization expense for 2026 through 2030 is $5.5 million, $4.9 million, $4.4 million, $2.1 million and $0.2 million, respectively. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES We recognized an income tax (provision) benefit of $(1.4) million and $15.7 million for the six months ended June 30, 2026 and 2025, respectively ($(0.5) million and $16.5 million for the second quarters of 2026 and 2025, respectively). The income tax provision for the three and six months ended June 30, 2026 was driven by income tax expense on transfer pricing income from India and the United States, no tax benefit on the pretax loss from our Luxembourg operating company, and uncertain tax positions. The income tax benefit for the three and six months ended June 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions, partially offset by income tax expense on transfer pricing income from India and the United States and no tax benefit on the pretax loss from our Luxembourg operating company. During the second quarter of 2025, Management concluded that certain of its India tax positions for several prior years were more likely than not to be sustained based on developments during the quarter. As a result, the Company recorded an income tax benefit from the reversal of liabilities for uncertain tax positions and related accrued interest expense. The recorded income tax benefit had a significant impact on the three and six months ended June 30, 2025.

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RIGHT-OF-USE ASSETS UNDER OPERATING LEASES, NET Right-of-use assets under operating leases, net consists of the following: (in thousands) June 30, 2026 December 31, 2025 Right-of-use assets under operating leases $ 6,490 $ 6,340 Less: Accumulated amortization (5,782) (5,223) Total $ 708 $ 1,117 Amortization of operating leases was $0.8 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively ($0.4 million and $0.4 million for the second quarters of 2026 and 2025, respectively), and is included in cost of revenue for operating assets and in selling, general and administrative expenses for non-operating assets in the accompanying condensed consolidated statements of operations and comprehensive (loss) income.

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Recently Adopted Accounting Pronouncements In July 2025, the Financial Accounting Standards Board (the FASB) issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . This standard provides a practical expedient for estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This standard allows companies to assume that conditions as of the balance sheet date remain unchanged for the remaining life of the asset. The Company adopted this standard effective January 1, 2026 and has applied it prospectively. Adoption of this new standard did not have a material impact on the Companys condensed consolidated financial statements. Future Adoption of New Accounting Pronouncement In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) . This standard amends the codification to enhance the disclosure requirements, in the notes to the financial statements, of specified information about certain costs and expenses in interim and year-end reporting periods. This standard will be effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on it …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource. Lenders Ones earnings are included in revenue and reduced from net (loss) income to arrive at net (loss) income attributable to Altisource (see Note 1). Our services are provided to customers primarily located in the United States. The components of revenue were as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2026 2025 2026 2025 Service revenue $ 48,730 $ 40,787 $ 93,819 $ 81,682 Reimbursable expenses 1,886 2,425 4,277 4,896 Non-controlling interests 47 76 151 149 Total $ 50,663 $ 43,288 $ 98,247 $ 86,727 Disaggregation of Revenue Disaggregation of total revenue by segment and major source was as follows: Three months ended June 30, 2026 Three months ended June 30, 2025 (in thousands) Servicer and Real Estate Origination Total revenue Servicer and Real Estate Origination Total revenue Revenue recognized when serv …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our chief operating decision maker) to evaluate operating performance and to assess the allocation of our resources. We conduct our operations through two reportable segments: Servicer and Real Estate and Origination . In addition, we report Corporate and Others separately. The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Corporate and Others includes interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, and eliminations between reportable segments. Income (loss) before income taxes and non-controlling interests is the measure of segment profit and loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and used by the chief operating decision maker to evaluate segment results. Financial Information Financial information for our segments is as follows: Three months en …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing