Altisource

Onity was 24% of Q3 2026 revenue, down from 42%. Revenue from customers other than Onity and Rithm grew 96% and is now 72% of service revenue. A new servicer brought $7.0M in the quarter.

Altisource was spun out of Ocwen (now Onity) and lived on it for years. That dependence is finally breaking, which makes the company less fragile, though the new work earns thinner margins.

The Rithm brokerage agreement expired Aug 31, 2025 and was not renewed. Rithm also ended its subservicing with Onity from Jan 31, 2026, moving loans Altisource worked on. Rithm revenue fell to $0.3M in Q3 from $1.5M.

New customers have so far more than covered the loss, per the company. The Rithm work is mostly gone now, so further damage should be small.

In the Feb 2025 debt exchange, lenders received about 63.5% of the common stock. UBS holds about 22%, Benefit Street about 16% and Deer Park about 13%, and all three are lenders under its loans.

The people owed the money also control the vote. That can align interests, but it also means big decisions, such as a sale, rest with a few funds.

Q3 operating income was $0.8M against $2.2M of interest expense. The loans float at 10.33%, $154.1M is due Apr 30, 2030, and 75% of excess cash flow must prepay debt.

Growth is real, but almost all the cash it makes goes to lenders for years. Expect tight budgets until the debt is refinanced.

Altisource repurchased $2.0M of term loan in Q2 and $0.9M in Q3 2026, both at a 23.7% discount, booking a $1.0M gain.

Cheap for Altisource, but the discount itself shows lenders price its loans well below full value.

Net income attributable to Altisource was $1.6M in 2025, on a $14.1M pretax loss. The difference is a $16.1M tax benefit, mostly a $9.6M reversed foreign tax reserve plus $9.0M of related interest.

The underlying business lost money before tax in 2025. Do not read the small profit as a turnaround.

Altisource booked a $7.5M loss in Q4 2025 for settling National Fair Housing Alliance v. Altisource Solutions over how REO homes were kept and marketed. One insurer disputes coverage. It is also answering unnamed government inquiries.

Settled with no admission of liability. The open questions are whether insurance pays and what the government inquiries turn into.

Stakeholder warrants issued in Apr 2025 cover about 14.3M shares at $9.5998 each, expiring 2029 and 2032. Shares were consolidated 1 for 8 in May 2025. Insiders bought stock at $5.18 to $5.60 in Jul and Aug 2026.

The warrants only matter if the stock rises well above where insiders were buying. If they are exercised, shareholders are more than doubled in number.

CEO William Shepro bought 4,000 shares at $5.18 on Jul 28, 2026. Director Matthew Winkler bought 2,000 at $5.60 on Aug 20. Benefit Street bought 50,000 more around $5.43 to $5.78.

Small amounts, but open-market buying by insiders is a vote of confidence. A director also sold his warrants in August.

Altisource has about $2.1B of Luxembourg operating losses, a $498.9M deferred tax asset that is fully reserved. They expire 2034 to 2042.

On paper a large shield against future tax. The full reserve says management does not expect enough Luxembourg profit to use it.