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REVENUE
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. 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, a consolidated entity that 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 (see Note 1). Our services are provided to customers located in the United States. The components of revenue were as follows:
Three months ended September 30,
Nine months ended
September 30,
(in thousands)2025202420252024
Service revenue$39,666 $38,150 $121,348 $111,904 
Reimbursable expenses2,171 2,321 7,067 7,081 
Non-controlling interests71 60 220 136 
Total$41,908 $40,531 $128,635 $119,121 
Disaggregation of Revenue
Disaggregation of total revenue by segment and major source was as follows:
Three months ended September 30, 2025Three months ended September 30, 2024
(in thousands)Servicer and Real EstateOriginationTotal revenueServicer and Real EstateOriginationTotal revenue
Revenue recognized when services are performed or assets are sold$28,877 $8,398 $37,275 $27,467 $7,654 $35,121 
Revenue related to technology platforms and professional services2,298 164 2,462 2,922 167 3,089 
Reimbursable expenses revenue2,067 104 2,171 2,160 161 2,321 
Total revenue$33,242 $8,666 $41,908 $32,549 $7,982 $40,531 
Nine months ended September 30, 2025Nine months ended September 30, 2024
(in thousands)Servicer and Real EstateOriginationTotal revenueServicer and Real EstateOriginationTotal revenue
Revenue recognized when services are performed or assets are sold$89,006 $25,035 $114,041 $80,358 $23,064 $103,422 
Revenue related to technology platforms and professional services6,986 541 7,527 8,137 481 8,618 
Reimbursable expenses revenue6,605 462 7,067 6,680 401 7,081 
Total revenue$102,597 $26,038 $128,635 $95,175 $23,946 $119,121 
Disaggregation of service revenue by the timing of revenue recognition was as follows:
Three months ended September 30,
Nine months ended
September 30,
(in thousands)2025202420252024
Over-time revenue recognition$8,773 $8,026 $29,016 $20,794 
Point-in-time revenue recognition30,893 30,124 92,332 91,110 
Total service revenue$39,666 $38,150 $121,348 $111,904 
The timing of revenue recognition, billings, and cash collections results in billed and unbilled accounts receivable (presented as accounts receivable on our condensed consolidated balance sheets), and customer advances (presented as deferred revenue on our condensed consolidated balance sheets), where applicable.
The over-time revenue recognition model consists primarily of the following services for which revenue is recognized over the period during which services are provided:
•For foreclosure trustee services, revenue is recognized as work progresses, in accordance with agreed upon milestones with full recognition upon completion and/or recording the related foreclosure deed
•For software-as-a-service (“SaaS”) based technology to manage REO, we recognize revenue over the estimated average number of months the REO properties are on the platform before they are sold
•For vendor management transactions, revenue is recognized over the period during which services are provided
•For fund disbursement services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements
•For residential real estate renovation services, we recognize revenue over time as work is completed, measured by the percentage of work performed relative to the total project. Field inspections by qualified professionals form a fundamental part of the Company’s assessment, measure and documentation of work completed on real estate renovations. As of September 30, 2025, the value of unfulfilled renovation orders amounted to $3.7 million, with the majority of this backlog expected to be completed and recognized as revenue within the fourth quarter of 2025 and the remainder anticipated to be completed in the first quarter of 2026
•We recognize membership fees from Lender One members ratably over the term of membership
•For vendor management oversight SaaS, we recognize revenue over the period during which we perform the services.
Transactions with Related Parties
John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), is a member of the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company and pays for the use of certain of the Company’s technology in connection with providing these services. The Company recognized service revenue of $0.1 million and less than $0.1 million for the nine months ended September 30, 2025 and 2024, respectively (less than $0.1 million and less than $0.1 million for the third quarter of 2025 and 2024, respectively), relating to services provided to Aldridge Pite.
Contract Balances
Our contract assets consist of unbilled accounts receivable (see Note 3). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying condensed consolidated balance sheets. The deferred revenue opening and closing balances were as follows:
Three months ended September 30,
Nine months ended
September 30,
(in thousands)2025202420252024
Deferred revenue, beginning balance$3,457 $3,647 $3,979 $3,204 
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(663)(705)(3,582)(3,167)
Increase due to billing, excluding amounts recognized as revenue during the period759 827 3,156 3,732 
Deferred revenue, ending balance$3,553 $3,769 $3,553 $3,769