Intercontinental Exchange (ICE) reported a second consecutive profitable quarter for its mortgage technology business, even as high interest rates and elevated housing costs weigh on the market. The company is adding artificial intelligence features to its loan origination and servicing platforms. Asked whether it might spin off the business, CEO Jeff Sprecher said ICE is not emotionally attached to any part of its portfolio and would consider alternatives if a business is not working.
Atlanta-based ICE also operates exchanges and provides fixed-income and data services. It bought Ellie Mae, including its Encompass loan origination system, in 2020, then acquired Black Knight’s mortgage servicing platform in 2023. Management said some investments that were questioned at the time are now contributing to growth. Sprecher linked ICE’s diversified business mix to its ability to manage changing interest-rate conditions, but did not announce plans to separate the mortgage unit.
Mortgage revenue rises 4%, but operating profit falls
ICE’s mortgage business generated $549 million in revenue from July through September, down 1.4% from $557 million in the second quarter and up 4% from $528 million a year earlier. Operating profit was $13 million, compared with $45 million in the previous quarter and $22 million in the third quarter of 2025—declines of 71% and 41%, respectively. The back-to-back profitable quarters came alongside a sharp drop in quarterly profit.
Mortgage servicing software MSP brought in $229 million, up from $226 million in the second quarter and $216 million a year earlier. Revenue from loan origination technology was $189 million, down from $197 million in the previous quarter and slightly above the $188 million recorded a year earlier. ICE acquired MSP through its 2023 purchase of Black Knight.
On an adjusted pro forma basis, which includes assumed Black Knight financial results, mortgage operating profit was $219 million. That was below $239 million in the second quarter and $224 million a year earlier. Chief Financial Officer Warren Gardiner said mortgage industry consolidation and interest rates remaining above 7% in 2027 could affect recurring revenue from customer renewals. He also said continued investment is important to the business’s growth.
ICE adds AI connections to Encompass and MSP
ICE Mortgage Technology is developing AI capabilities for its loan origination and servicing platforms. Ben Jackson, ICE president and chairman of ICE Mortgage Technology, said customers can now use the Model Context Protocol (MCP) to deploy their own agents in an auditable way and connect them to Encompass or MSP. Several customers have approached ICE about the option, he said, and can work with data and permissions already available in ICE’s systems.
ICE is competing with newer technology providers that market tools built around AI from the outset, while ICE is extending capabilities across established platforms. Jackson also pointed to customer growth in the third quarter: Wells Fargo agreed to migrate its home equity loan portfolio to MSP, expanding its relationship with ICE. The company said MSP added five customers in 2026.
Black Knight savings target lifted to $270 million
In the third year since completing its Black Knight acquisition, ICE said integration is running ahead of schedule. Gardiner said the company now expects to reach about $270 million in annualized cost synergies by the end of 2026, above the $200 million target set for the fifth year when the deal was announced. The figure represents expected annualized cost savings, not mortgage revenue or operating profit.
ICE made no specific decision on a potential mortgage business spin-off during the earnings call. The latest results show revenue growth year over year and higher MSP revenue, but lower operating profit both quarter over quarter and year over year. AI development, the expanded Wells Fargo relationship and expected cost savings are among the reasons ICE says it will continue investing in the business.