Compass Point analyst Fred Small said Altisource's (ASPS) most profitable unit, Hubzuwhich derives 85% of profits from Ocwen (OCN), and represents over 90% of Altisource's pre-tax income, is "running out of steam" as Ocwen's portfolio declines. The analyst staid there is nothing to replace the high margin business and the recently announced sub servicing deal between Ocwen and New Residential (NRZ) increases risk on Ocwen's-sourced REO sales. The analyst said allegations about Ocwen's improper servicing suggest this is the source of the problems with Altisource's REALServicing platform. Small lowered his FY17 earnings estimate to $1.21 from $1.60 and FY18 to 65c from $1.77, cut his price target to $7 from $14, and reiterates a Sell rating on shares.

Reports Q1 revenue $39.5M vs. $39.5M last year. "I am very pleased with our first quarter performance. We generated $4.6 million of Adjusted EBITDA marking our best quarterly performance since the third quarter of 2020, on $36.9 million of service revenue. We are winning meaningful new business and ramping 2023 sales wins on a lower cost base. In our Servicer and Real Estate segment, we are winning market share. In our Origination segment, we are increasing adoption of our solutions that help originators save money," said Chairman and CEO William Shepro."We believe our financial results and sales wins demonstrate that we are not waiting for the default market to return to normal or for delinquency rates to rise to achieve growth. For the balance of 2024, we anticipate quarter over quarter Service revenue and Adjusted EBITDA growth compared to the same quarters in 2023 as we continue to ramp sales wins and win new business on a lower cost base."