Luxembourg's Altisource Q3 service revenue rises on new customer wins

Overview

• Luxembourg real estate services provider's Q3 service revenue grew 26% yr/yr on new customer wins

• Adjusted diluted EPS for Q3 rose 30% yr/yr to $0.13

• Company's Q3 adjusted EBITDA rose 17% yr/yr, margin declined due to revenue mix and investments

Outlook

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

• Company anticipates AI and efficiency initiatives to drive scalability and operating leverage in coming quarters

Result Drivers

• CUSTOMER WINS - Co said ramp-up of new customer wins drove 26% yr/yr growth in service revenue

• REVENUE MIX SHIFT - Co said revenue from customers outside of Onity and Rithm grew 96% yr/yr and now represents 72% of service revenue

• AI AND EFFICIENCY INITIATIVES - Co said AI and other efficiency initiatives began accelerating product development speed and are anticipated to drive scalability and operating leverage

Company press release:

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 S.A. is $8.00, about 41.6% above its October 28 closing price of $5.65

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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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.)