Weekly Real Estate News
Altisource Portfolio Solutions reported a sharp increase in foreclosure-auction properties handled by its Hubzu marketplace alongside stronger mortgage and real estate service revenue in the third quarter.
The company released results October 29 at 7:22 a.m. Eastern for the quarter ended September 30, 2026. Its official earnings release shows service revenue rising 26% year over year to $49.8 million.
Hubzu inventory expands sharply
Altisource said foreclosure-auction inventory on Hubzu increased to 22,900 properties at September 30, compared with 4,000 a year earlier and 19,300 at June 30. Total Hubzu inventory, including real estate owned properties, reached approximately 26,000, up from 5,700 a year earlier.
The increase reflects the company’s inventory and customer relationships. It is not equivalent to a national foreclosure count and should not be interpreted as a comparable increase in U.S. foreclosure activity.
Altisource said it transacted 789 homes through Hubzu during the quarter, up from 583 a year earlier, as newly acquired inventory continued moving through its sales pipeline.
Revenue growth, but a net loss remains
Service revenue increased from $39.7 million to $49.8 million. Total revenue, which includes reimbursable expenses, was $51.9 million, up 24%. Adjusted EBITDA rose 17% to $4.3 million.
The company nevertheless reported a GAAP net loss attributable to Altisource of approximately $1.4 million, improved from a $2.4 million loss a year earlier. Adjusted earnings per diluted share of 13 cents are a non-GAAP measure and should not be confused with the GAAP diluted loss of 12 cents per share.
New customers drive diversification
Altisource said service revenue from customers outside Onity, Rithm and associated portfolios increased 96% and accounted for 72% of total service revenue, compared with 46% a year earlier. Management credited new customer wins and the ramp-up of existing contracts.
The company reported that its origination services segment grew service revenue 65%, while the servicer and real estate segment grew 15%. It also cautioned that revenue mix and investments in new business affected margins.
What the figures say about foreclosure activity
In contextual industry data cited by Altisource, foreclosure starts during the first eight months of 2026 were 20% higher than in the comparable 2025 period, while foreclosure sales rose 17%. The company said both measures remained below comparable pre-pandemic levels. Those industry figures are distinct from Hubzu’s platform inventory and rely on third-party mortgage data.
The figures underscore renewed activity in distressed-property servicing and disposition, without implying a return to foreclosure conditions seen during the financial crisis.
Simple Content Summary
Altisource reported 26% growth in third-quarter service revenue to $49.8 million and a narrower $1.4 million net loss. Hubzu foreclosure-auction inventory rose to 22,900 properties from 4,000 a year earlier. The platform’s growth is company-specific and should not be confused with national foreclosure rates.
