SEGMENT REPORTING

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTINGOur business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our chief operating decision maker) to evaluate operating performance and to assess the allocation of our resources.

We conduct our operations through two reportable segments: Servicer and Real Estate and Origination. In addition, we report Corporate and Others separately.

The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Corporate and Others includes interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, as well as eliminations between reportable segments.

Financial information for our segments is as follows:

	Three months ended September 30, 2023
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	28,702	$	7,511	$	—	$	36,213
Cost of revenue	18,312		7,151		3,561		29,024
Gross profit (loss)	10,390		360		(3,561)		7,189
Selling, general and administrative expenses	1,966		1,797		6,971		10,734
Income (loss) from operations	8,424		(1,437)		(10,532)		(3,545)
Total other income (expense), net	—		—		(7,317)		(7,317)
Income (loss) before income taxes and non-controlling interests	$	8,424	$	(1,437)	$	(17,849)	$	(10,862)

	Three months ended September 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	30,866	$	7,514	$	—	$	38,380
Cost of revenue	22,082		7,654		4,651		34,387
Gross profit (loss)	8,784		(140)		(4,651)		3,993
Selling, general and administrative expenses	2,931		2,399		9,226		14,556
Income (loss) from operations	5,853		(2,539)		(13,877)		(10,563)
Total other income (expense), net	4		—		(3,894)		(3,890)
Income (loss) before income taxes and non-controlling interests	$	5,857	$	(2,539)	$	(17,771)	$	(14,453)

	Nine months ended September 30, 2023
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	87,495	$	23,414	$	—	$	110,909
Cost of revenue	56,075		22,623		10,986		89,684
Gross profit (loss)	31,420		791		(10,986)		21,225
Selling, general and administrative expenses	6,905		5,873		22,391		35,169
Income (loss) from operations	24,515		(5,082)		(33,377)		(13,944)
Total other income (expense), net	—		—		(26,454)		(26,454)
Income (loss) before income taxes and non-controlling interests	$	24,515	$	(5,082)	$	(59,831)	$	(40,398)

	Nine months ended September 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	91,349	$	26,968	$	—	$	118,317
Cost of revenue	64,235		26,206		14,170		104,611
Gross profit (loss)	27,114		762		(14,170)		13,706
Selling, general and administrative expenses	9,227		6,739		27,089		43,055
Income (loss) from operations	17,887		(5,977)		(41,259)		(29,349)
Total other income (expense), net	4		—		(10,051)		(10,047)
Income (loss) before income taxes and non-controlling interests	$	17,891	$	(5,977)	$	(51,310)	$	(39,396)

(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Total assets:
September 30, 2023	$	57,143	$	51,191	$	54,302	$	162,636
December 31, 2022	63,696		53,984		77,588		195,268