v3.26.1
REVENUE
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE 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 One’s 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)2026202520262025
Service revenue$48,730 $40,787 $93,819 $81,682 
Reimbursable expenses1,886 2,425 4,277 4,896 
Non-controlling interests47 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, 2026Three months ended June 30, 2025
(in thousands)Servicer and Real EstateOriginationTotal revenueServicer and Real EstateOriginationTotal 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 services2,180 210 2,390 2,308 200 2,508 
Reimbursable expenses revenue1,763 123 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, 2026Six months ended June 30, 2025
(in thousands)Servicer and Real EstateOriginationTotal revenueServicer and Real EstateOriginationTotal 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 services4,385 410 4,795 4,688 377 5,065 
Reimbursable expenses revenue4,050 227 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)2026202520262025
Over-time revenue recognition$10,206 $9,499 $18,770 $20,243 
Point-in-time revenue recognition38,524 31,288 75,049 61,439 
Total service revenue$48,730 $40,787 $93,819 $81,682 
The timing of revenue recognition, billings, and cash collections results in billed and unbilled accounts receivable (presented as accounts receivable on our condensed consolidated balance sheets), and customer advances (presented as deferred revenue on our condensed consolidated balance sheets), where applicable.
The over-time revenue recognition model consists primarily of the following services for which revenue is recognized over the period during which services are provided:
•For foreclosure trustee services, revenue is recognized as work progresses, in accordance with agreed upon milestones with full recognition upon completion and/or recording the related foreclosure deed
•For software-as-a-service (“SaaS”) based technology to manage REO, we recognize revenue over the estimated average number of months the REO properties are on the platform before they are sold
•For vendor management transactions, revenue is recognized over the period during which services are provided
•For fund disbursement services, we recognize revenue over the estimated average period during which we perform the processing services, with full recognition upon completion of the related fund disbursement
•For residential real estate renovation services, we recognize revenue over time as work is completed, measured by the percentage of work performed relative to the total project. Field inspections by qualified professionals form a fundamental part of the Company’s assessment, measure and documentation of work completed on real estate renovations. As of June 30, 2026, the value of unfulfilled renovation orders amounted to $3.4 million, with the majority of this backlog expected to be completed and recognized as revenue within the third quarter of 2026 and the remainder anticipated to be completed in the fourth quarter of 2026
•We recognize membership fees from Lenders One members ratably over the term of membership
•For vendor management oversight SaaS, we recognize revenue over the period during which we perform the services.
Transactions with Related Parties
John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), is a member of the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company and pays for the use of certain of the Company’s technology in connection with providing these services. The Company recognized service revenue of $0.1 million and less than $0.1 million for the six months ended June 30, 2026 and 2025, respectively (less than $0.1 million for the both the second quarters of 2026 and 2025), relating to services provided to Aldridge Pite.
Contract Balances    
Our contract assets consist of unbilled accounts receivable (see Note 3). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying condensed consolidated balance sheets. The deferred revenue opening and closing balances were as follows:
Three months ended June 30,
Six months ended
June 30,
(in thousands)2026202520262025
Deferred revenue, beginning balance$(4,041)$(3,639)$(3,487)$(3,979)
Revenue recognized that was included in the deferred revenue balance at the beginning of the period979 1,095 2,505 2,920 
Increase due to billing, excluding amounts recognized as revenue during the period(58)(913)(2,138)(2,398)
Deferred revenue, ending balance$(3,120)$(3,457)$(3,120)$(3,457)