Note 26 — Quarterly Results of Operations (Unaudited)



	Quarters Ended
	December 31, 2018 (1)			September 30, 2018			June 30, 2018			March 31, 2018
Revenue	$	310,929		$	238,278		$	253,581		$	260,257
Expenses	302,819			217,526			205,650			206,501
Other expense, net (2)	(15,873		)	(61,025		)	(76,336		)	(48,791		)
Income (loss) from continuing operations before income taxes	(7,763		)	(40,273		)	(28,405		)	4,965
Income tax expense (benefit)	(4,012		)	845			1,348			2,348
Income (loss) from continuing operations	(3,751		)	(41,118		)	(29,753		)	2,617
Income from discontinued operations, net of income taxes	1,409			—			—			—
Net income (loss)	(2,342		)	(41,118		)	(29,753		)	2,617
Net income attributable to non-controlling interests	—			(29		)	(78		)	(69		)
Net income (loss) attributable to Ocwen stockholders	$	(2,342	)	$	(41,147	)	$	(29,831	)	$	2,548

Earnings (loss) per share attributable to Ocwen stockholders - Basic and Diluted
Continuing operations	$	(0.03	)	$	(0.31	)	$	(0.22	)	$	0.02
Discontinued operations	0.01			—			—			—
	$	(0.02	)	$	(0.31	)	$	(0.22	)	$	0.02


(1)	The quarter ended December 31, 2018 includes the results of operations of PHH from the acquisition date of October 4, 2018 through December 31, 2018. See Note 2 — Business Acquisition for additional information.


(2)	Includes a bargain purchase gain, net of tax, of $64.0 million recognized during the quarter ended December 31, 2018 in connection with the acquisition of PHH.



	Quarters Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Revenue	$	276,770		$	284,642		$	311,300		$	321,864
Expenses (1) (2)	168,303			273,479			280,480			276,383
Other expense, net (1)	(153,781		)	(37,716		)	(72,428		)	(75,979		)
Loss before income taxes	(45,314		)	(26,553		)	(41,608		)	(30,498		)
Income tax expense (benefit)	(51		)	(20,418		)	2,828			2,125
Net loss	(45,263		)	(6,135		)	(44,436		)	(32,623		)
Net loss (income) attributable to non-controlling interests	780			(117		)	(71		)	(101		)
Net loss attributable to Ocwen stockholders	$	(44,483	)	$	(6,252	)	$	(44,507	)	$	(32,724	)

Loss per share attributable to Ocwen stockholders - Basic and Diluted
Continuing operations	$	(0.34	)	$	(0.05	)	$	(0.36	)	$	(0.26	)
Discontinued operations	$	—		$	—		$	—		$	—
	$	(0.34	)	$	(0.05	)	$	(0.36	)	$	(0.26	)

(1)

A benchmarking valuation assumption update related to our non-Agency MSRs carried at fair value resulted in an $84.4 million increase in value and reduction in related losses (reported in MSR valuation adjustments, net) during the quarter ended December 31, 2017. This reflected an upward trend in market pricing on non-Agency MSRs similar in profile to Ocwen’s portfolio. This valuation assumption update also resulted in a largely offsetting increase of $73.4 million in the value of the NRZ financing liability which was recognized as Interest expense.


(2)	Includes the recovery of $28.5 million of losses during the quarter ended December 31, 2017 related to a settlement of outstanding claims that arose from indemnification obligations in connection with our acquisition of MSRs and related servicing advances in 2013. We had recognized such losses on advances in prior periods and recorded the 2017 recovery in Servicing and origination expense.