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CUSTOMER CONCENTRATION
 6 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
CUSTOMER CONCENTRATION CUSTOMER CONCENTRATION
Onity
Onity Group Inc. (together with its subsidiaries, “Onity”) (formerly Ocwen Financial Corporation, or “Ocwen”) is a residential mortgage loan servicer of mortgage servicing rights (“MSRs”) it owns, including those MSRs in which others have an economic interest, and a subservicer of loans owned by others.
During the three and six months ended June 30, 2025, Onity was our largest customer, accounting for 43% and 44%, respectively, of our total revenue. Onity purchases certain mortgage services from us under the terms of services agreements and amendments thereto (collectively, the “Onity Services Agreements”) with terms extending through August 2030. Certain of the Onity Services Agreements contain a “most favored nation” provision and also grant the parties the right to renegotiate pricing, among other things.
Revenue from Onity primarily consists of revenue earned from the loan portfolios serviced and subserviced by Onity when Onity engages us as the service provider, and revenue earned directly from Onity, pursuant to the Onity Services Agreements. For the six months ended June 30, 2025 and 2024, we recognized revenue from Onity of $37.8 million and $34.9 million, respectively ($18.5 million and $17.2 million for the second quarter of 2025 and 2024, respectively). Revenue from Onity as a percentage of segment and consolidated revenue was as follows:
Three months ended June 30,
Six months ended June 30,
2025202420252024
Servicer and Real Estate54 %55 %55 %56 %
Origination— %— %— %— %
Corporate and Others— %— %— %— %
Consolidated revenue43 %44 %44 %44 %
We earn additional revenue related to the portfolios serviced and subserviced by Onity when a party other than Onity or the MSR owner selects Altisource as the service provider. For the six months ended June 30, 2025 and 2024, we recognized $4.1 million and $5.2 million, respectively ($1.9 million and $2.4 million for the second quarter of 2025 and 2024, respectively), of such revenue. These amounts are not included in deriving revenue from Onity and revenue from Onity as a percentage of revenue discussed above.
As of June 30, 2025, accounts receivable from Onity totaled $5.7 million, $3.6 million of which was billed and $2.1 million of which was unbilled. As of December 31, 2024, accounts receivable from Onity totaled $4.4 million, $3.1 million of which was billed and $1.3 million of which was unbilled.
Rithm
Rithm Capital Corp. (individually, together with one or more of its subsidiaries or one or more of its subsidiaries individually, “Rithm”) is an asset manager focused on the real estate and financial services industries.
Onity has disclosed that Rithm is one of its largest servicing clients. As of March 31, 2025, Onity reported that approximately 11% of loans serviced and subserviced by Onity (measured in unpaid principal balance (“UPB”)) and approximately 58% of all delinquent loans that Onity services were related to Rithm MSRs or rights to MSRs (the “Subject MSRs”).
Rithm purchases brokerage services for real estate owned (“REO”) exclusively from us, irrespective of the subservicer, subject to certain limitations, for certain MSRs set forth in and pursuant to the terms of a Cooperative Brokerage Agreement, as amended, and related letter agreement (collectively, the “Rithm Brokerage Agreement”) with terms extending through August 2025. In addition, Rithm also purchases property inspection, preservation and other services from us pursuant to other agreements.
For the six months ended June 30, 2025 and 2024, we recognized revenue from Rithm of $1.8 million and $1.3 million, respectively ($1.1 million and $0.6 million for the second quarter of 2025 and 2024, respectively), under the Rithm Brokerage Agreement. For the six months ended June 30, 2025 and 2024, we recognized additional revenue of $5.3 million and $6.1 million, respectively ($2.7 million and $3.2 million for the second quarter of 2025 and 2024, respectively), relating to the Subject MSRs when a party other than Rithm selects Altisource as the service provider.