ALTISOURCE PORTFOLIO SOLUTIONS S.A.

Previous wording

This Form 10-Q contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may relate to, among other things, future events or our future performance or financial condition. Words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “believe,” “predict,” “potential” or “continue” or the negative of these terms and comparable terminology are intended to identify such forward-looking statements. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. The following are examples of such items and are not intended to be all inclusive:

Current wording

This Form 10-Q contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical fact, including statements that may relate to, among other things, future events or our future financial/operating performance or financial condition. Words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “will,” “plan,” “estimate,” “believe,” “predict,” “potential” or “continue” or the negative of these terms and comparable terminology are intended to identify such forward-looking statements. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. The following are examples of such items and are not intended to be all inclusive:

Previous wording

Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in the Risk Factors section of our Form 10-K for the year ended December 31, 2024, as supplemented or amended by the Risk Factors set forth in our subsequent Form 10-Q filings, including this Form 10-Q, such as:

Current wording

Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in the Risk Factors section of our Form 10-K for the year ended December 31, 2025, such as:

Previous wording

•the impact of the expiration of the Rithm Brokerage Agreement in August 2025 and our ability to mitigate its impact;

Current wording

•our ability to mitigate the potential impacts arising from the expiration of the Rithm Brokerage Agreement in August 2025 and the termination of Rithm’s subservicing agreement with Onity effective January 31, 2026;

Previous wording

•our ability to execute on our strategic plan;

Current wording

•our ability to execute on our strategic initiatives;

Previous wording

•technology incidents, data breaches and cybersecurity risks; and

Current wording

•technology failures, data breaches and cybersecurity risks; and

Previous wording

Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”) and investor homes, short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single and multi-family rental data, analytics and rent-based valuation solution), REALSynergy® (a commercial loan servicing platform), and NestRange TM (a single-family automated valuation model and analytics solution).

Current wording

Our Technology and SaaS Products business includes Equator® (a SaaS-based technology to manage real estate owned (“REO”) and investor homes, short sales, foreclosure, bankruptcy and eviction processes), Vendorly Invoice (a vendor invoicing and payment system), RentRange® (a single and multi-family rental data, analytics and rent-based valuation solution) and REALSynergy® (a commercial loan servicing platform).

Previous wording

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”), and certain loan manufacturing and capital markets solutions provided to the members of the Lenders One cooperative.

Current wording

Our Lenders One business includes management services provided to the Best Partners Mortgage Cooperative, Inc., doing business as Lenders One® (“Lenders One”), and certain loan manufacturing and capital markets solutions provided primarily to the members of the Lenders One cooperative.

Previous wording

Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process), TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment and pre and post-close quality control), and ADMS (a document management and data analytics delivery platform).

Current wording

Our Technology and SaaS Products business includes Vendorly Monitor (a vendor management platform), Lenders One Loan Automation (“LOLA”) (a marketplace to order services and a tool to automate components of the loan manufacturing process) and TrelixAITM (technology to manage the workflow and automate components of the loan fulfillment and pre and post-close quality control).

Previous wording

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. 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. Lenders One 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.

Current wording

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. In evaluating our performance, we focus on service revenue. 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. Lenders One is a mortgage cooperative managed, but not owned, by Altisource. Lenders One’s earnings are included in revenue and reduced from net loss to arrive at net loss attributable to Altisource.

Previous wording

Through our offerings that support residential real estate and loan investors and forward and reverse servicers, we provide a suite of loan default and real estate investor solutions and technologies intended to meet their growing and evolving needs. We are focused on gaining market share on existing solutions and launching new solutions with our existing customer base and attracting new customers to our offerings. We have a customer base that includes government-sponsored enterprises (“GSEs”), asset managers, and several large bank and non-bank servicers including Onity and Rithm. We believe we are one of only a few providers with a broad suite of solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers if loan delinquency rates and foreclosure initiations and sales rise, or if they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.

Current wording

Through our offerings that support residential real estate and loan investors and forward and reverse servicers, we provide a suite of loan default and real estate investor solutions and technologies intended to meet their growing and evolving needs. We are focused on gaining market share on existing solutions and launching new solutions with our existing customer base and attracting new customers to our offerings. We have a customer base that includes government-sponsored enterprises (“GSEs”), asset managers, and several large bank and non-bank servicers. We believe we are one of only a few providers with a broad suite of solutions, nationwide coverage and scalability. Further, we believe we are well positioned to gain market share from existing and new customers if loan delinquency rates and foreclosure initiations and sales rise, or if they consolidate to larger, full-service providers or outsource services that have historically been performed in-house.

Previous wording

Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members (Lenders One is a residential mortgage cooperative managed by Altisource), which includes independent mortgage bankers, credit unions, and banks, as well as bank and non-bank loan originators. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.

Current wording

Through our offerings that support mortgage loan originators (or other similar mortgage market participants), we provide a suite of solutions and technologies to meet the evolving and growing needs of lenders, mortgage purchasers and securitizers. We are focused on growing business from our existing customer base, attracting new customers to our offerings and developing new offerings. We have a customer base that includes the Lenders One cooperative members (Lenders One is a residential mortgage cooperative managed by Altisource), which includes independent mortgage bankers, credit unions, and banks. We believe our suite of services, technologies and unique access to the members of the Lenders One mortgage cooperative position us to grow our relationships with our existing customer base by growing membership of Lenders One, increasing member adoption of existing solutions and developing and cross-selling new offerings. Further, we believe we are well positioned to gain market share from existing and new customers as customers and prospects look to Lenders One to help them improve their profitability and better compete.

Previous wording

Serious delinquency rates, foreclosure initiations and foreclosure sales are low relative to historical levels but have been increasing for the nine months ended September 30, 2025 relative to the same period in 2024. Additionally, foreclosure initiations and sales as a percentage of seriously delinquent loans for 2020 through 2025 are significantly lower than prior years. During 2020 and 2021, these percentages were significantly impacted by COVID-19 borrower relief measures, including foreclosure moratoriums and forbearance programs. These measures largely expired at the end of 2021. Beginning in 2022, we believe these percentages were impacted by servicer practices, home price appreciation, the interest rate environment, housing supply, the general state of the economy, and other factors. In 2021 and 2022, a low interest environment drove a high volume of refinance transactions and home prices appreciated significantly. Although interest rates began to increase in 2022, home prices remained high. With greater home equity from home price appreciation, we believe troubled borrowers have more options to avoid foreclosure. Foreclosure initiations and sales increased during the nine months ended September 30, 2025 compared to the same period in 2024. However, both measures remain below pre-pandemic levels.

Current wording

Serious delinquency rates, foreclosure initiations and foreclosure sales are low relative to historical levels but increased during the three months ended March 31, 2026 relative to the same period in 2025. Additionally, foreclosure initiations and sales as a percentage of seriously delinquent loans for 2020 through 2025 are significantly lower than prior years. During 2020 and 2021, these percentages were significantly impacted by COVID-19 borrower relief measures, including foreclosure moratoriums and forbearance programs. These measures largely expired at the end of 2021. Beginning in 2022, we believe these percentages were impacted by servicer practices, home price appreciation, the interest rate environment, housing supply, the general state of the economy, and other factors. In 2021 and 2022, a low interest rate environment drove a high volume of refinance transactions and home prices appreciated significantly. Although interest rates began to increase in 2022, home prices remained high. With greater home equity from home price appreciation, we believe troubled borrowers have more options to avoid foreclosure. Foreclosure initiations and sales increased during the three months ended March 31, 2026 compared to the same period in 2025. However, both measures remain below pre-pandemic levels.

Previous wording

While we cannot predict whether the default market will return to a pre-pandemic operating environment, we believe the demand for our Default business is likely to grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. The foreclosure timelines could vary significantly based upon, for example, the state where the property is located, whether the foreclosure is contested, amount of borrower equity in the home and available borrower relief programs. The REO sale timelines could also vary significantly based upon, for example, mortgage interest rates, the local real estate market, whether the home is located in a redemption state and whether the home is occupied post foreclosure.

Current wording

While we cannot predict whether the default market will return to a pre-pandemic operating environment, we believe the demand for our default related business is likely to grow. We estimate that in today’s environment it typically takes on average two years to convert foreclosure initiations to foreclosure sales and six months to market and sell the REO. The foreclosure timelines could vary significantly based upon, for example, the state where the property is located, whether the foreclosure is contested, amount of borrower equity in the home and available borrower relief programs. The REO sale timelines could also vary significantly based upon, for example, mortgage interest rates, the local real estate market, whether the home is located in a redemption state and whether the home is occupied post foreclosure.

Previous wording

During 2024 and the nine months ended September 30, 2025, to address the close to historically low delinquency rates, we worked to (1) reduce our cost structure, (2) maintain the infrastructure to deliver default related services for our customer base and support the anticipated increase in demand should delinquency rates, foreclosure initiations and/or foreclosure sales rise, (3) launch a residential renovation business to renovate single family homes and launch a commercial real estate auction business on Hubzu, our online auction platform, and (4) launch new solutions and increase customer adoption of our existing solutions to accelerate the growth of our Origination segment.

Current wording

During 2025 and the three months ended March 31, 2026, to address the close to historically low delinquency rates, we worked to (1) reduce our cost structure, (2) maintain the infrastructure to deliver default related services for our customer base and support the anticipated increase in demand should delinquency rates, foreclosure initiations and/or foreclosure sales rise, and (3) launch new solutions and increase customer adoption of our existing solutions to accelerate the growth of our Origination segment.

Previous wording

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by our shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 0.4 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $8.00 per share and a maximum price of $200.00 per share, until May 16, 2028. As of September 30, 2025, approximately 0.4 million shares of common stock remain available for repurchase under the program. In connection with the Share Consolidation, the Company purchased 204 shares of common stock during the nine months ended September 30, 2025. There were no other purchases of shares of common stock during the nine months ended September 30, 2025 and 2024. Under the new first lien loan facility (the “New Facility”) and the super senior credit facility (the “Super Senior Facility”), we are not permitted to repurchase shares except for limited circumstances.

Current wording

On May 16, 2023, our shareholders approved the renewal and amendment of the share repurchase program previously approved by our shareholders on May 15, 2018. Under the program, we are authorized to purchase up to 0.4 million shares of our common stock, based on a limit of 15% of the outstanding shares of common stock on the date of approval, at a minimum price of $8.00 per share and a maximum price of $200.00 per share, until May 16, 2028. As of March 31, 2026, approximately 0.4 million shares of common stock remain available for repurchase under the program. In connection with the elimination of fractional shares resulting from the Share Consolidation, the Company purchased 204 shares of common stock during the year ended December 31, 2025 (no comparative amount for the three months ended March 31, 2026). There were no other purchases of shares of common stock during the three months ended March 31, 2026 and 2025. Under the new first lien loan facility (the “New Facility”) and the super senior credit facility (the “Super Senior Facility”), we are not permitted to repurchase shares except for limited circumstances.

Previous wording

During the three and nine months ended September 30, 2025, Onity was our largest customer, accounting for 42% and 43% of our total revenue, respectively. Additionally, 5% of our revenue for the nine months ended September 30, 2025 (4% of our revenue for the third quarter of 2025) was earned on the loan portfolios serviced by Onity, when a party other than Onity or the mortgage servicing rights (“MSRs”) owner selected Altisource as the service provider.

Current wording

During the three months ended March 31, 2026, Onity was our largest customer, accounting for 37% of our total revenue. Additionally, 4% of our revenue for the three months ended March 31, 2026 was earned on the loan portfolios serviced by Onity, when a party other than Onity or the mortgage servicing rights (“MSRs”) owner selected Altisource as the service provider.

Previous wording

Onity has disclosed that it is subject to a number of ongoing federal and state regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages. Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services. Existing or future similar matters could result in adverse regulatory or other actions against Onity. In addition to the above, Onity may become subject to future adverse regulatory or other actions.

Current wording

Onity has disclosed that it is subject to a number of ongoing regulatory examinations, consent orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions and is subject to pending and threatened legal proceedings, some of which include claims against Onity for substantial monetary damages. Previous regulatory actions against Onity have subjected Onity to independent oversight of its operations and placed certain restrictions on its ability to acquire servicing rights or proceed with default-related actions on the loans it services. Existing or future similar matters could result in adverse regulatory or other actions against Onity. In addition to the above, Onity may become subject to future adverse regulatory or other actions.

Previous wording

Onity has disclosed that Rithm is one of its largest servicing clients. As of June 30, 2025, Onity reported that approximately 11% of loans serviced and subserviced by Onity (measured in UPB) and approximately 59% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs.

Current wording

Onity has disclosed that Rithm is one of its largest servicing clients. As of December 31, 2025, Onity reported that approximately 10% of loans serviced and subserviced by Onity (measured in UPB) and approximately 50% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs. In November 2025, Onity disclosed that it had received notification from Rithm that Rithm does not intend to renew its subservicing agreement with Onity effective January 31, 2026.

Previous wording

The existence or outcome of Onity regulatory matters or the termination of Onity’s sub-servicing agreements with Rithm or other significant Onity clients may have significant adverse effects on Onity’s business. For example, Onity may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Onity’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Onity as a customer or a reduction in the number and/or volume of services it purchases from us or the loss of other customers.

Current wording

The existence or outcome of Onity regulatory matters or Onity’s loss of significant clients may have significant adverse effects on Onity’s business. For example, Onity may be required to alter the way it conducts business, including the parties it contracts with for services, it may be required to seek changes to its existing pricing structure with us, it may lose its non-GSE servicing rights or subservicing arrangements or may lose one or more of its state servicing or origination licenses. Additional regulatory actions or adverse financial developments may impose additional restrictions on or require changes in Onity’s business that could require it to sell assets or change its business operations. Any or all of these effects and others could result in our eventual loss of Onity as a customer or a reduction in the number and/or volume of services it purchases from us or the loss of other customers.

Previous wording

•On February 19, 2025, Altisource Portfolio Solutions S.A. and Altisource S.à r.l. (the “Borrower”) entered into agreements with 100% of the lenders under the SSTL (the “Lenders”). Under these agreements, the Lenders exchanged the senior secured term loans (“SSTL”) with an outstanding balance of $232.8 million for a $160.0 million New Facility and 7.3 million shares of common stock (the “Debt Exchange Shares”) (collectively, the “Debt Exchange Transaction”). The New Facility is comprised of a $110.0 million interest-bearing loan (the “New Debt”) and a $50.0 million non-interest-bearing exit fee. In connection with the Debt Exchange Transaction, the Company expensed $3.6 million relating to fees paid to advisors and others

Current wording

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 outstanding balance of $232.8 million for a $160.0 million new first lien loan facility (the “New Facility”) and 7.3 million shares of common stock (the “Debt Exchange Shares”) (collectively, the “Debt Exchange Transaction”). The New Facility is comprised of a $110.0 million interest-bearing loan (the “New Debt”) and a $50.0 million non-interest-bearing exit fee (the “Exit Fee”). Altisource Portfolio Solutions S.A. and its subsidiaries, subject to applicable exclusions in the New Facility credit agreement (the “New Facility Credit Agreement”), are guarantors on the New Facility (collectively, the “Guarantors”).

Previous wording

•Industrywide foreclosure initiations were 19% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 21% lower than the same pre-COVID-19 period in 2019)

Current wording

•Industrywide foreclosure initiations were 5% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still 14% lower than the same pre-COVID-19 period in 2019)

Previous wording

•Industrywide foreclosure sales were 10% higher for the eight months ended August 31, 2025 compared to the same period in 2024 (and 49% lower than the same pre-COVID-19 period in 2019)

Current wording

•Industrywide foreclosure sales were 27% higher for the two months ended February 28, 2026 compared to the same period in 2025 (although still 42% lower than the same pre-COVID-19 period in 2019)

Previous wording

•Industrywide mortgage origination volume increased by 17% for the nine months ended September 30, 2025 compared to the same period in 2024, comprised of a 4% decline in purchase origination and a 103% increase in refinancing origination

Current wording

•Industrywide mortgage origination unit volume increased by 42% for the three months ended March 31, 2026 compared to the same period in 2025, comprised of a 19% increase in purchase origination and a 91% increase in refinancing origination

Previous wording

•The weighted average interest rate on the Company’s long-term debt was 12.35% for the nine months ended September 30, 2025 compared to 14.18% for the same period in 2024

Current wording

•The weighted average interest rate on the Company’s long-term debt was 7.31% for the three months ended March 31, 2026 compared to 8.75% for the same period in 2025

Previous wording

•The Company recognized an income tax benefit (provision) of $15.1 million and $(2.2) million for the nine months ended September 30, 2025 and 2024, respectively ($(0.7) million and $(0.8) million for the third quarter of 2025 and 2024, respectively). The income tax benefit for the nine months ended September 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions. The income tax (provision) benefit for the three and nine months ended September 30, 2025 was also driven 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. For further information, see Note 19.

Current wording

•The Company recognized an income tax provision of $0.9 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively. The income tax provision for the three months ended March 31, 2026 and 2025 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.

Previous wording

We recognized reimbursable expenses revenue of $7.1 million for the nine months ended September 30, 2025, a less than 1% decrease compared to the nine months ended September 30, 2024 ($2.2 million for the third quarter of 2025, a 6% decrease compared to the third quarter of 2024). The decrease in reimbursable expenses for the three and nine months ended September 30, 2025 was primarily driven by fewer asset resolution and asset management activities in the Marketplace business and a decrease in property preservation services in our Field Services business in the Servicer and Real Estate Solutions business partially offset by growth in the Foreclosure Trustee business in the Solutions business within the Servicer and Real Estate segment. For the nine months ended September 30, 2025, the decrease in reimbursable expenses was also from lower REO title related expenses in our Title business in the Solutions business.

Current wording

We recognized reimbursable expenses revenue of $2.4 million for the three months ended March 31, 2026, a 3% decrease compared to the three months ended March 31, 2025. The decrease in reimbursable expenses for the three months ended March 31, 2026 was primarily driven by fewer asset resolution and asset management activities in the Marketplace business and a decrease in the Solutions business within the Origination segment, partially offset by growth in the Foreclosure Trustee business in the Solutions business within the Servicer and Real Estate segment.

Previous wording

We recognized cost of revenue of $90.9 million for the nine months ended September 30, 2025, an 11% increase compared to the nine months ended September 30, 2024 ($30.6 million for the third quarter of 2025, a 7% increase compared to the third quarter of 2024). Outside fees and services for the three and nine months ended September 30, 2025 increased primarily from service revenue growth in the Property Renovations Services, Foreclosure Trustee and Field Services businesses within the Servicer and Real Estate segment and service revenue growth in the Lenders One business in the Origination segment. Compensation and benefits for the three and nine months ended September 30, 2025 increased primarily due to growth in the Property Renovation Services business and higher annual incentive compensation accruals. Technology and telecommunications for the nine months ended September 30, 2025 increased primarily from a benefit recognized in 2024. Depreciation and amortization was lower for the three and nine months ended September 30, 2025 from the completion of the depreciation periods of certain premises and equipment with only modest additions. In addition, changes in reimbursable expenses for the three and nine months ended September 30, 2024 are consistent with the changes in reimbursable expenses revenue discussed in the revenue section above.

Current wording

We recognized cost of revenue of $34.5 million for the three months ended March 31, 2026, a 14% increase compared to the three months ended March 31, 2025. Outside fees and services for the three months ended March 31, 2026 increased primarily from service revenue growth in the Lenders One business in the Origination segment.

Previous wording

Gross profit increased to $37.7 million, representing 31% of service revenue, for the nine months ended September 30, 2025 compared to $37.1 million, representing 33% of service revenue, for the nine months ended September 30, 2024 (decreased to $11.3 million, representing 29% of service revenue, for the third quarter of 2025, compared to $12.1 million, representing 32% of service revenue, for the third quarter of 2024). Gross profit as a percentage of service revenue for the nine months ended September 30, 2025 decreased compared to the three and nine months ended September 30, 2024 primarily due to a change in revenue mix from greater growth in the lower margin Property Renovations Services business and Lenders One businesses than in the higher margin Foreclosure Trustee business and Hubzu business. Our margins can vary substantially depending upon the service revenue mix.

Current wording

Gross profit decreased to $13.1 million, representing 29% of service revenue, for the three months ended March 31, 2026 compared to $13.3 million, representing 33% of service revenue, for the three months ended March 31, 2025. Gross profit as a percentage of service revenue for the three months ended March 31, 2026 decreased compared to the three months ended March 31, 2025 primarily due to a change in revenue mix from growth in the lower margin Origination Segment and lower revenue in the higher margin Servicer and Real Estate segment. Our margins can vary substantially depending upon the service revenue mix.

Previous wording

Selling, general and administrative (“SG&A”) expenses include payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, audit, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses.

Current wording

Selling, general and administrative (“SG&A”) expenses includes payroll for personnel employed in executive, sales and marketing, finance, technology, law, compliance, audit, human resources, vendor management, facilities and risk management roles. This category also includes professional services fees, occupancy costs, marketing costs, depreciation and amortization of non-operating assets and other expenses.

Previous wording

SG&A expenses for the nine months ended September 30, 2025 of $30.7 million decreased by 11% compared to the nine months ended September 30, 2024 ($10.8 million for the third quarter of 2025, a 1% decrease compared to the third quarter of 2024). The decrease in SG&A for the three and nine months ended September 30, 2025 was primarily driven by lower professional services and other SG&A expenses, partially offset by higher compensation and benefits. Professional services for the three and nine months ended September 30, 2025 decreased primarily due to lower costs related to legacy indemnification accruals. Other SG&A expenses for the three and nine months ended September 30, 2025 decreased primarily due to lower bad debt expense. Compensation and benefits for the nine months ended September 30, 2025 increased primarily from higher annual incentive compensation accruals, partially offset by lower share based compensation. Compensation and benefits for the three months ended September 30, 2025 increased from higher annual incentive compensation accruals and higher share based compensation.

Current wording

SG&A expenses for the three months ended March 31, 2026 of $11.4 million increased by 13% compared to the three months ended March 31, 2025. The increase in SG&A for the three months ended March 31, 2026 was primarily driven by higher other SG&A expenses and compensation and benefits, and professional services. Other SG&A expenses for the three months ended March 31, 2026 increased primarily due to higher bad debt expense. Compensation and benefits for the three months ended March 31, 2026 increased primarily from higher share based compensation.

Previous wording

Income (loss) from operations was $0.1 million, representing less than 1% of service revenue, for the nine months ended September 30, 2025 compared to $0.1 million, representing less than 1% of service revenue, for the nine months ended September 30, 2024 (decreased to $(0.4) million, representing (4)% of service revenue for the third quarter of 2025, compared to $0.3 million, representing 4% of service revenue for the third quarter of 2024). Income from operations for the nine months ended September 30, 2025 was relatively flat compared to the nine months ended September 30, 2024. The decline in operating (loss) income as a percentage of service revenue for the three months ended September 30, 2025 was primarily from higher SG&A expenses and lower gross profit margins.

Current wording

Income from operations for the three months ended March 31, 2026 was $1.7 million, representing 4% of service revenue, compared to $3.2 million, representing 8% of service revenue, for the three months ended March 31, 2025. Income from operations as a percentage of service revenue declined for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily as a result of lower gross profit as a percentage of service revenue.

Previous wording

Other income (expense), net was $(13.0) million for the nine months ended September 30, 2025 compared to $(27.1) million for the nine months ended September 30, 2024 ($(2.2) million for the third quarter of 2025 and $(9.6) million for the third quarter of 2024). The change for the three and nine months ended September 30, 2025 was primarily driven by lower interest expense, partially offset by higher debt exchange transaction expenses. The lower interest expense was driven by the decrease in outstanding debt and a lower interest rate from the February 19, 2025 Debt Exchange Transaction.

Current wording

Other income (expense), net was $(1.4) million for the three months ended March 31, 2026 compared to $(7.8) million for the three months ended March 31, 2025. The change for the three months ended March 31, 2026 was primarily driven by lower interest expense and no debt exchange transaction expenses in 2026. The lower interest expense was driven by the decrease in outstanding debt and a lower interest rate from the Debt Exchange Transaction.

Previous wording

We recognized an income tax benefit (provision) of $15.1 million and $(2.2) million for the nine months ended September 30, 2025 and 2024, respectively ($(0.7) million and $(0.8) million for the third quarter of 2025 and 2024, respectively). The income tax (provision) benefit for the nine months ended September 30, 2025 was driven primarily by the reversal of liabilities for uncertain tax positions. The income tax (provision) benefit for the three and nine months ended September 30, 2025 was also driven 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. For further information, see Note 19.

Current wording

We recognized an income tax provision of $0.9 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively. The income tax provision for the three months ended March 31, 2026 and 2025 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.

Previous wording

Gross profit increased to $36.9 million, representing 38% of service revenue, for the nine months ended September 30, 2025 compared to $36.8 million, representing 42% of service revenue, for the nine months ended September 30, 2024 (decreased to $11.3 million, representing 36% of service revenue, for the third quarter of 2025, compared to $12.0 million, representing 40% of service revenue, for the third quarter of 2024). Gross profit as a percentage of service revenue for the three and nine months ended September 30, 2025 decreased primarily due to a change in revenue mix from greater growth in the lower margin Property Renovations Services business than in the higher margin Foreclosure Trustee business in the Solutions business and fewer homes sales in the Marketplace business. Our margins can vary substantially depending upon the service revenue mix.

Current wording

Gross profit decreased to $12.1 million, representing 39% of service revenue, for the three months ended March 31, 2026 compared to $13.3 million, representing 40% of service revenue, for the three months ended March 31, 2025. Gross profit as a percentage of service revenue for the three months ended March 31, 2026 decreased primarily due to a change in revenue mix from greater decline in the higher margin Foreclosure Trustee business and the Field services business in the Solutions business. Our margins can vary substantially depending upon the service revenue mix.

Previous wording

Income from operations increased to $31.2 million, representing 32% of service revenue, for the nine months ended September 30, 2025 compared to $28.1 million, representing 32% of service revenue, for the nine months ended September 30, 2024 (increased to $8.9 million, representing 29% of service revenue, for the third quarter of 2025, compared to $8.8 million, representing 29% of service revenue for the third quarter of 2024). Operating income as a percentage of service revenue for the three and nine months ended September 30, 2025 remained flat compared to September 30, 2024 as a result of lower SG&A expenses, offset by lower gross profit margins.

Current wording

Income from operations decreased to $9.6 million, representing 31% of service revenue, for the three months ended March 31, 2026 compared to $11.0 million, representing 33% of service revenue, for the three months ended March 31, 2025. Operating income as a percentage of service revenue for the three months ended March 31, 2026 decreased compared to March 31, 2025 as a result of lower gross profit margins and higher SG&A expenses.

Previous wording

Gross profit increased to $5.6 million, representing 22% of service revenue, for the nine months ended September 30, 2025 compared to $5.1 million, representing 22% of service revenue, for the nine months ended September 30, 2024 (remained relatively flat at $1.7 million, representing 20% of service revenue, for the third quarter of 2025, compared to $1.7 million, representing 22% of service revenue for the third quarter of 2024). Gross profit as a percentage of service revenue for the nine months ended September 30, 2025 was relatively flat compared to the nine months ended September 30, 2024. Gross profit as a percentage of service revenue for the three months ended September 30, 2025 decreased compared to the three months ended September 30, 2024 from revenue mix.

Current wording

Gross profit increased to $2.6 million, representing 19% of service revenue, for the three months ended March 31, 2026 compared to $1.6 million, representing 20% of service revenue, for the three months ended March 31, 2025. Gross profit as a percentage of service revenue for the three months ended March 31, 2026 was relatively flat compared to the three months ended March 31, 2025.

Previous wording

Income from operations for the nine months ended September 30, 2025 was $7.0 million, representing 6% of service revenue, compared to $2.6 million, representing 2% of service revenue, for the nine months ended September 30, 2024 (decreased to $0.5 million, representing 1% of service revenue, for the third quarter of 2025, compared to $1.1 million representing 3% of service revenue for the third quarter of 2024). Income from operations as a percentage of service revenue improved for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily as a result of lower SG&A expenses as a percentage of service revenue, partially offset by lower gross profit margins. Income from operations as a percentage of service revenue decreased for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily from lower gross profit margins.

Current wording

Income (loss) from operations was $0.7 million, representing 5% of service revenue, for the three months ended March 31, 2026 compared to $(0.1) million, representing less than (1)% of service revenue, for the three months ended March 31, 2025. Income from operations as a percentage of service revenue for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025, primarily from higher service revenue and lower SG&A expenses as a percentage of service revenue, partially offset by lower gross margin.

Previous wording

Cost of revenue for the nine months ended September 30, 2025 of $4.8 million decreased by 2% compared to the nine months ended September 30, 2024 ($1.6 million for the third quarter of 2025, a 2% decrease compared to the third quarter of 2024). The decrease in cost of revenue for the three and nine months ended September 30, 2025 was primarily driven by lower depreciation and amortization from the completion of the depreciation periods for certain premises and equipment.

Current wording

Cost of revenue for the three months ended March 31, 2026 of $1.6 million increased by 2% compared to the three months ended March 31, 2025. The increase in cost of revenue for the three months ended March 31, 2026 was primarily driven by higher compensation and benefits partially offset by lower depreciation and amortization from the completion of the depreciation periods for certain premises and equipment.

Previous wording

SG&A in Corporate and Others includes costs related to the corporate functions including executive, finance, technology, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.

Current wording

SG&A in Corporate and Others include costs related to the corporate functions including executive, finance, technology, law, compliance, human resources, vendor management, facilities, risk management and eliminations between reportable segments.

Previous wording

Other income (expense), net was $(13.0) million for the nine months ended September 30, 2025 compared to $(27.1) million for the nine months ended September 30, 2024 ($(2.2) million for the third quarter of 2025 and $(9.6) million for the third quarter of 2024). The change for the three and nine months ended September 30, 2025 was primarily driven by lower interest expense, partially offset by higher debt exchange transaction expenses. The lower interest expense was driven by the decrease in outstanding debt and a lower interest rate from the February 19, 2025 Debt Exchange Transaction.

Current wording

Other income (expense), net was $(1.6) million for the three months ended March 31, 2026 compared to $(7.8) million for the three months ended March 31, 2025. The change for the three months ended March 31, 2026 was primarily driven by lower interest expense and no debt exchange transaction expenses in 2026. The lower interest expense was driven by the decrease in outstanding debt and a lower interest rate from the Debt Exchange Transaction.