Oct 29, 2026 earnings call — Customer wins and AI-driven growth
Service revenue $49.8 million, up 26% year-over-year, and adjusted EBITDA $4.3 million, up 17%.
Revenue $0.1B (est $0.1B) · EPS $0.13 (est $0.18)
Key quotes
"Recent customer wins continued to ramp, and our AI and other efficiency initiatives began accelerating product development speed and are anticipated to drive scalability and operating leverage over the upcoming quarters."
"Our AI and automation strategy is focused on three measurable outcomes, increasing operating efficiency, accelerating software development, and strengthening our product offering."
"Together, the continued ramp of customer wins, greater operating leverage, and disciplined cost management represent the core building blocks of Project 45, our objective of reaching $45 million of run-rate adjusted EBITDA by the fourth quarter of 2028."
Analyst Q&A 1
Margins drop and share-based pay
Q (Timothy D'Agostino · B. Riley): He asked why company-level gross profit margin fell (from about 27.5% in Q1 to about 23.4% in Q3). He also asked whether the drop in share-based compensation (from about $1.2 million to about $800,000) was a one-time decrease or would normalize in Q4.
A: Management said part of the margin drop is a mix issue: origination revenue grew much faster than servicer and real estate revenue, and the company is also ramping new customers while managing down certain legacy Rithm/Ocwen-related business. They expect margins to improve as new servicer business seasons, origination revenue scales against prior talent investment, and corporate costs remain relatively stable; combined adjusted EBITDA margins were about 23% in Q3. On share-based comp, they said quarterly fluctuations are normal, grants often happen in early quarters, they expect it to stabilize back to earlier levels, and some third-quarter decrease may reflect reversals from exits or severance.
"I think from a gross profit margin, you could see a mix issue as well because we have had much higher growth in the origination segment than we have experienced in the servicer and real estate segment." — Michelle Esterman (CFO)