Luxembourg's Altisource Q2 service revenue rises on customer wins 

Overview

• Luxembourg real estate and mortgage services provider's Q2 service revenue rose 19% yr/yr

• Q2 adjusted EBITDA fell 18% yr/yr due to higher costs and absence of non-recurring benefit

• Company repurchased $2 mln of debt at a 23.7% discount, recognizing a $0.7 mln gain

Outlook

• Altisource aims to achieve $45 mln run rate Adjusted EBITDA by Q4 2028

• Company expects efficiency initiatives to improve product development speed and EBITDA margins

Result Drivers

• CUSTOMER WINS - Co said service revenue growth from new customers more than offset loss of some Rithm-related business, resulting in a more diversified customer base

• HIGHER COSTS - Adjusted EBITDA margin declined due to higher costs to support revenue growth and absence of non-recurring benefit from prior year

• HUBZU INVENTORY GROWTH - Total Hubzu inventory grew 30% since Q1, driven by recent sales wins

Company press release: ID:nGNX8LRYfL

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the real estate services peer group is "buy"

• Wall Street's median 12-month price target for Altisource Portfolio Solutions SA is $8.00, about 22% above its July 22 closing price of $6.56

Reuters Recommended Reads

• July 22 - First American Financial Q2 revenue rises 15%, beats estimates

• July 22 - Stewart Information Q2 revenue beats, helped by data center transactions

• July 23 - Mortgage Advice Bureau H1 revenue rises on strong refinancing activity

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)