DUBLIN, Ohio, Nov. 12, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the "Company" or "reAlpha"), an AI-powered real estate technology company, today announced financial results for the quarter ended September 30, 2025.
Financial Highlights
-- Revenue increased 326% to $1,445,137 in the third quarter of 2025,
compared to $339,227 in the third quarter of 2024.
-- Cash was approximately $9.3 million as of the end of the third quarter of
2025, compared to $7.0 million as of the end of the third quarter of
2024.
-- Gross profit was $749,580 in the third quarter of 2025, compared to
$225,866 in the third quarter of 2024. The increase was primarily driven
by an increase in mortgage brokerage transactions provided by our
subsidiary, reAlpha Mortgage (f/k/a Be My Neighbor), which included loan
origination fees, broker commissions, and processing fees, and the
revenue from our former subsidiary, GTG Financial, Inc. ("GTG
Financial"). Gross profit margin declined from 67% to 52% year-over-year,
primarily reflecting a higher contribution from loan brokerage services,
which typically carry lower margins as direct broker commissions are
recorded within cost of revenue.
-- Adjusted EBITDA was approximately $(2.2) million in the third quarter of
2025, compared to approximately $(1.3) million in the third quarter of
2024.
-- Net loss was approximately $5.8 million in the third quarter of 2025,
compared to a net loss of approximately $2.1 million in the third quarter
of 2024.
"We're encouraged by the progress we made this quarter as our strategy continues to take hold," said Piyush Phadke, Chief Financial Officer of reAlpha. "We believe we are well-positioned to continue delivering revenue growth in the coming quarters, driven by a stronger balance sheet and continued investment in AI to reinforce the foundation for sustainable performance and long-term value creation that we have been building."
Business Highlights
-- reAlpha launched and upgraded its proprietary internal AI-powered Loan
Officer Assistant to enhance automation and to assist with scalability
across its mortgage operations. The upgraded internal assistant
streamlines document review and communication workflows by automating
document classification, extraction and validation, giving loan officers
more time to focus on what matters most - the homebuyer. By reducing
repetitive administrative tasks, the internal assistant allows mortgage
professionals to dedicate greater attention to guiding homebuyers through
the lending process with care, clarity, and confidence. The upgrade
reflects reAlpha's belief that technology should empower, not replace,
human connection, helping to deliver a faster, more personalized, and
more seamless homebuying experience.
-- reAlpha strengthened its balance sheet through multiple equity financings
and the full repayment of its high-cost secured debt. The Company raised
approximately $7.5 million in aggregate gross proceeds from its July 2025
equity offerings, approximately $10.0 million in gross proceeds from
warrant exercises and approximately $0.9 million in gross proceeds
through its ATM program. These capital inflows supported the full
repayment of the Company's secured promissory note with Streeterville
Capital, a high-interest secured debt originally issued in 2024. The
repayment fully extinguished the note and released all related
obligations, leaving reAlpha with no outstanding secured debt at the
parent level.
-- In August 2025, the GTG Financial acquisition was rescinded. As a result
of the rescission, GTG Financial's results and operations were only
recognized through August 21, 2025 and as of such date, GTG Financial was
no longer a subsidiary of reAlpha.
-- During the third quarter of 2025, reAlpha expanded its homebuying
platform into Georgia and extended its mortgage footprint into Utah and
Nevada. The Georgia launch marks the third state activation for reAlpha's
real estate brokerage services through its REALTOR$(R)$ affiliate,
supporting reAlpha's national rollout strategy. reAlpha also launched
mortgage operations in Utah and Nevada, appointing Jennifer Buserini to
lead expansion into the Nevada market. These expansions extended
reAlpha's integrated realty and mortgage presence and enhanced the
platform's overall accessibility to consumers.
-- In September 2025, reAlpha expanded the capabilities of Claire, its
proprietary AI-powered homebuying concierge, to help buyers navigate the
homebuying process with greater clarity and confidence. The enhanced
version identifies where users are in their journey and recommends their
next best step - whether browsing homes, scheduling a showing, or
beginning mortgage prequalification. By linking interactions across real
estate and mortgage, Claire reduces friction and improves coordination
among reAlpha's services.
-- reAlpha implemented a unified customer communication framework and a new
brand identity across its marketing, website, product, and automated
communications channels to ensure brand alignment and clarity across all
customer interactions. This initiative establishes a consistent identity
throughout the homebuying journey and supports reAlpha's objective to
deliver a cohesive, end-to-end platform experience.
-- On September 22, 2025, reAlpha regained compliance with the minimum
market value of listed securities ("MVLS") requirement of Nasdaq Stock
Market LLC ("Nasdaq"), as its MVLS closed above the $35 million threshold
for ten consecutive business days.
About reAlpha Tech Corp.
reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company that aims to transform the multi-trillion-dollar U.S. real estate services market. reAlpha is developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title services. With a strategic, acquisition-driven growth model and proprietary AI infrastructure, reAlpha is building a vertically integrated ecosystem designed to deliver a simpler, smarter, and more affordable path to homeownership. For more information, visit www.realpha.com.
Forward-Looking Statements
The information in this press release includes "forward-looking statements." Any statements other than statements of historical fact contained herein, including statements by reAlpha's Chief Financial Officer, Piyush Phadke, the expected future performance of the Company or the anticipated benefits of the integration, such as the acceleration in development of AI-powered products, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "could", "might", "plan", "possible", "project", "strive", "budget", "forecast", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha's ability to pay contractual obligations; reAlpha's liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha's limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha's technology and products will be accepted and adopted by its customers and intended users; reAlpha's ability to commercialize its developing AI-based technologies; reAlpha's ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies' services; reAlpha's ability to successfully enter new geographic markets and to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings or any legal proceedings that may be instituted against reAlpha; reAlpha's ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha's ability to successfully identify and acquire companies that are complementary to its business model; the inability to maintain and strengthen reAlpha's brand and reputation; reAlpha's ability to reduce the manual loan processing time and manual effort of its employees through the implementation of its AI-powered Loan Officer Assistant across real estate and mortgage operations; reAlpha's ability to improve data accuracy and boost engagement of its brand through its redesigned website across real estate and mortgage operations; reAlpha's ability to enhance its operational efficiency, improve cross-functional coordination and support the reAlpha platform's continued growth through the implementation of new internal processes and initiatives, including upgrades thereto; reAlpha's ability to continue attracting loan officers and maintain its relationship with its REALTOR(R) affiliate to expand its operations nationally; any accidents or incidents involving cybersecurity breaches and incidents; the availability of rebates, which may be limited or restricted by state law; risks specific to AI-based technologies, including potential inaccuracies, bias, or regulatory restrictions; risks related to data privacy, including evolving laws and consumer expectations; the inability to accurately forecast demand for AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha's growth; the
inability of reAlpha's customers to pay for reAlpha's services; reAlpha's ability to obtain additional financing or access the capital markets on acceptable terms and conditions in the future; reAlpha's ability to maintain compliance with Nasdaq listing rules; reAlpha's ability to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2); changes in applicable laws or regulations, including with respect to the real estate market, AI and AI technologies, and the impact of the regulatory environment and complexities with compliance related to such environment; reAlpha's ability to effectively compete in the real estate and AI industries; the health of the U.S. residential real estate industry and changes in general economic conditions;and other risks and uncertainties indicated in reAlpha's filings with the U.S. Securities and Exchange Commission (the "SEC"). Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha's future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha's filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Media Contact:
Cristol Rippe, Chief Marketing Officer
media@realpha.com
Investor Relations Contact:
Adele Carey, VP of Investor Relations
InvestorRelations@reAlpha.com
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
September 30, 2025 (Unaudited) and December 31, 2024
September 30, December 31,
2025 2024
--------------- ------------
ASSETS
Current Assets
Cash $ 9,278,879 $ 3,123,530
Accounts receivable, net 42,943 182,425
Receivable from related parties - 12,873
Prepaid expenses 2,509,042 180,158
Current assets of discontinued
operations - 56,931
Other current assets 361,558 487,181
----------- -----------
Total current assets 12,192,422 4,043,098
Property and Equipment, at cost
Property and equipment, net $ 50,378 $ 102,638
Other Assets
Investments 204,923 215,000
Other long term assets - 31,250
Intangible assets, net 3,071,109 3,285,406
Goodwill 4,208,261 4,211,166
Capitalized software development
- work in progress - 105,900
----------- -----------
TOTAL ASSETS $ 19,727,093 $ 11,994,458
----------- -----------
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities
Accounts payable $ 200,386 $ 655,765
Related party payables 5,622 9,287
Short term loans - related
parties -current portion 227,504 261,986
Short term loans - unrelated
parties -current portion 260,966 519,153
Accrued expenses 1,246,672 1,164,813
Deferred liabilities, current
portion 1,117,807 1,534,433
----------- -----------
Total current liabilities $ 3,058,957 $ 4,145,437
Long-Term Liabilities
Embedded derivative liability 4,479,980 -
Preferred stock liability 377,343 -
Other long term loans - related
parties - net of current
portion 6,424 45,052
Other long term loans - unrelated
parties - net of current
portion 103,811 241,121
Note payable, net of discount - 4,909,376
Other long term liabilities 801,000 1,086,000
----------- -----------
Total liabilities $ 8,827,515 $ 10,426,986
Stockholders' Equity (Deficit)
Preferred Stock ($0.001 par
value; 5,000,000 shares
authorized) 1,000,000 shares
designated as Series A
Convertible Preferred Stock;
250,000 and 0 shares issued and
outstanding as of September 30,
2025 and December 31, 2024,
respectively - -
Common stock ($0.001 par value;
200,000,000 shares authorized,
103,050,651 shares outstanding
as of September 30, 2025;
200,000,000 shares authorized,
45,864,503 shares outstanding as
of December 31, 2024) 103,047 45,865
Common stock to be issued 280,000 -
Additional paid-in capital 61,610,536 39,770,060
Accumulated deficit (51,008,326) (38,260,913)
Accumulated other comprehensive
(loss) income (96,074) 5,011
----------- -----------
Total stockholders' equity of
reAlpha Tech Corp. 10,889,183 1,560,023
Non-controlling interests in
consolidated entities 10,395 7,449
----------- -----------
Total stockholders' equity 10,899,578 1,567,472
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 19,727,093 $ 11,994,458
----------- -----------
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Operations and
Comprehensive Loss
For the Three and Nine Months Ended September 30,
2025 and 2024 (unaudited)
For the Three Months
Ended For the Nine Months Ended
------------------------- --------------------------
September September September September
30, 2025 30, 2024 30, 2025 30, 2024
----------- ----------- ------------ -----------
Revenues $ 1,445,137 $ 339,227 $ 3,623,153 $ 422,006
Cost of revenues 695,557 113,361 1,733,441 139,687
---------- ---------- ----------- ----------
Gross Profit 749,580 225,866 1,889,712 282,319
Operating Expense
Wages, benefits and
payroll taxes 1,655,061 779,561 4,291,586 1,674,647
Repairs and
maintenance 344 1,537 1,304 3,132
Utilities 4,963 2,555 16,881 5,197
Travel 27,172 75,424 111,556 186,705
Dues and
subscriptions 29,732 37,491 121,971 74,234
Marketing and
advertising 2,481,015 243,362 4,483,626 451,103
Professional and
legal fees 996,329 441,569 2,742,220 1,222,086
Depreciation and
amortization 132,001 99,009 393,445 239,792
Impairment of
capitalized
software - - 105,900 -
Other operating
expense 371,764 170,548 1,032,663 345,832
---------- ---------- ----------- ----------
Total operating
expense 5,698,381 1,851,056 13,301,152 4,202,728
---------- ---------- ----------- ----------
Operating Loss (4,948,801) (1,625,190) (11,411,440) (3,920,409)
Other Expense
(income)
Changes in fair
value of
contingent
consideration (67,000) - (148,000) -
Interest expense,
net 388,364 119,485 934,365 130,607
Change in fair
value of preferred
stock liability
and embedded
derivative
liability 95,495 - (243,883) -
Other expense, net 415,664 289,469 787,770 741,249
---------- ---------- ----------- ----------
Total other
expense 832,523 408,954 1,330,252 871,856
---------- ---------- ----------- ----------
Net Loss from
continuing
operations before
income taxes (5,781,324) (2,034,144) (12,741,692) (4,792,265)
Income tax
(expense) benefit - - - -
Net Loss from
continuing
operations (5,781,324) (2,034,144) (12,741,692) (4,792,265)
Discontinued
operations (Roost
and Rhove)
Loss from
operations of
discontinued
operations - (64,430) - (203,666)
Income tax benefit - - - -
---------- ---------- ----------- ----------
Loss on discontinued
operations $ - $ (64,430) $ - $ (203,666)
---------- ---------- ----------- ----------
Net Loss $(5,781,324) $(2,098,574) $(12,741,692) $(4,995,931)
Less: Net Income
(Loss) Attributable
to Non-Controlling
Interests 1,317 (26) 2,946 (74)
---------- ---------- ----------- ----------
Net Loss Attributable
to Controlling
Interests $(5,782,641) $(2,098,548) $(12,744,638) $(4,995,857)
---------- ---------- ----------- ----------
Other comprehensive
income (loss)
Foreign currency
translation
adjustments 17,282 (33,917) (89,154) (33,917)
---------- ---------- ----------- ----------
Total other
comprehensive
income (loss) 17,282 (33,917) (89,154) (33,917)
Comprehensive Loss
Attributable to
Controlling
Interests $(5,765,359) $(2,132,465) $(12,833,793) $(5,029,774)
---------- ---------- ----------- ----------
Basic loss per
share
Continuing
operations $ (0.07) $ (0.05) $ (0.22) $ (0.11)
Discontinued
operations $ - $ - $ - $ -
---------- ---------- ----------- ----------
Net Loss per share
-- basic $ (0.07) $ (0.05) $ (0.22) $ (0.11)
Diluted loss per
share
Continuing
operations $ (0.07) $ (0.05) $ (0.22) $ (0.11)
Discontinued
operations $ - $ - $ - $ -
---------- ---------- ----------- ----------
Net Loss per share
-- diluted $ (0.07) $ (0.05) $ (0.22) $ (0.11)
Weighted-average
outstanding shares
-- basic 81,716,309 44,372,982 58,167,658 44,240,099
Weighted-average
outstanding shares
-- diluted 81,716,309 44,372,982 58,167,658 44,240,099
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2025, and
2024 (unaudited)
For the Nine Months For the Nine Months
Ended Ended
---------------------- ----------------------
September 30, 2025 September 30, 2024
---------------------- ----------------------
Cash Flows from
Operating
Activities:
Net Loss $ (12,741,692) $ (4,995,931)
Adjustments to
reconcile net
loss to net cash
used in operating
activities:
Depreciation and
amortization 393,445 304,222
Impairment of
capitalized
software 105,900 145,746
Amortization of
loan discounts 545,624 -
Stock-based
compensation -
employees 557,999 207,454
Stock-based
compensation -
services - 108,647
Change in fair
value of
contingent
consideration (148,000) -
Loss on
extinguishment
of debt 438,834 -
Change in fair
value of
preferred stock
liability and
embedded
derivative
liability (243,883) -
Non-cash
commitment fee
expenses 375,000 375,000
Non-cash
marketing and
advertising 3,373,866 -
Non-cash
compensation
expense - GTG
Financial 106,000 -
Non-cash
dividend
payable on
Series A
convertible
preferred
stock 78,391 -
Gain on
rescission of
GTG
acquisition (94,071) -
Loss/(gain) on
sale of
property and
equipment 48,748 (31,392)
Loss/(gain) from
equity method
investment 10,077 (20,663)
Changes in
operating assets
and liabilities
Accounts
receivable 139,482 150,736
Receivable from
related
parties 12,873 -
Payable to
related
parties (3,665) -
Prepaid expenses 57,711 193,260
Other current
assets (286,820) (6,843)
Accounts payable (555,707) (59,178)
Accrued expenses (781,173) (177,148)
Deferred
liabilities (236,101) -
Total
adjustments 3,894,530 1,189,841
--- ----------------- --- -----------------
Net cash used in
operating
activities (8,847,162) (3,806,090)
Cash Flows from
Investing
Activities:
Additions to
property and
equipment (32,604) (8,781)
Proceeds from sale
of properties - 78,000
Net cash acquired
in business
combination 349,529 (20,464)
Deconsolidation of
GTG cash (207,606) -
Cash used for
additions to
capitalized
software (156,892) (417,024)
--- ----------------- --- -----------------
Net cash used in
investing
activities (47,573) (368,269)
Cash Flows from
Financing
Activities:
Proceeds from
issuance of debt 155,481 5,000,000
Payments of debt (5,409,086) (205,134)
Proceeds from
issuance of
common stock 21,615,811 -
Debt
extinguishment
expenses (368,769) -
Equity issuance
expenses (941,742) -
--- ----------------- --- -----------------
Net cash provided
by financing
activities 15,051,695 4,794,866
Net increase in
cash 6,156,960 620,507
Effect of exchange
rate changes on
cash (1,611) -
Cash - Beginning of
Period 3,123,530 6,456,370
--- ----------------- --- -----------------
Cash - End of Period $ 9,278,879 $ 7,076,877
--- ----------------- --- -----------------
Supplemental
disclosure of cash
flow information
Cash paid for
interest 457,036 130,607
Noncash Investing
and Financing
Activities:
Preferred stock
issuance - MMC
transaction 5,000,000 -
Non-cash
conversion of
debt to equity --
Streeterville
Capital, LLC 720,065 -
Issuance of
warrants to
placement agents
in connection
with equity
offerings 299,768 -
Non-U.S. GAAP Financial Measures
To supplement our financial information presented in accordance with U.S. GAAP, we believe "Adjusted EBITDA," a "non-U.S. GAAP financial measure," as such term is defined under the rules of the SEC, is useful in evaluating our operating performance. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-U.S. GAAP financial measure may be helpful to investors because it provides consistency and comparability with past financial performance. However, this non-U.S. GAAP financial measure is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate a similarly titled non-U.S. GAAP measure differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of this non-U.S. GAAP financial measure as a tool for comparison. A
reconciliation is provided below for our non-U.S. GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Investors are encouraged to review the related U.S. GAAP financial measure and the reconciliation of this non-U.S. GAAP financial measure to its most directly comparable U.S. GAAP financial measure, and not to rely on any single financial measure to evaluate our business.
We use Adjusted EBITDA, a non-U.S. GAAP financial measure, to evaluate our operating performance and facilitate comparisons across periods and with peer companies. We reconcile our Adjusted EBITDA to our net income (loss) adjusted to exclude interest expense, depreciation and amortization, changes in fair value of contingent consideration and preferred stock, share-based compensation, and other non-cash, non-operating, or non-recurring items that we believe are not indicative of our core business operations. We believe this measure provides useful insight into our ongoing performance; however, it should not be considered a substitute for, or superior to, net income or other financial information prepared in accordance with U.S. GAAP.
The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented below:
For the Three Months For the Nine Months Ended
Ended September 30, September 30
------------------------- --------------------------
2025 2024 2025 2024
Net loss $(5,781,324) $(2,098,574) $(12,741,692) $(4,995,931)
Adjusted to exclude
the following
Depreciation and
amortization 132,001 163,439 393,445 304,222
Amortization of loan
discounts and
origination fee(1) 303,122 36,250 545,624 36,250
Non-cash marketing
expenses(2) 2,079,874 - 3,373,865 -
Impairment of
intangible assets - - 105,900 -
Changes in fair value
of contingent
consideration(3) (67,000) - (148,000) -
Change in fair value
of preferred
stock(4) 95,495 - (243,883) -
Loss on
extinguishment of
debt(5) 368,769 - 438,834 -
GTG deconsolidation
gain(6) (94,071) - (94,071) -
Gain (loss) on equity
method investments 7,679 108,382 10,077 (20,663)
Interest expense 85,242 119,881 388,741 131,723
GEM commitment fee(7) 125,000 125,000 375,000 375,000
Share based
compensation(8) 286,656 113,037 557,999 207,454
Equity offering
costs(9) 250,000 - 480,774 -
Acquisition-related
expenses - 178,678 87,352 363,426
---------- ---------- ----------- ----------
Adjusted EBITDA $(2,208,557) $(1,253,907) $ (6,467,579) $(3,598,519)
---------- ---------- ----------- ----------
(1) Represents amortization of all debt issuance costs
and original issue discount due to the repayment of
the secured promissory note issued to Streeterville
Capital, LLC ("Streeterville"), including the prepayment
penalty.
(2) Represents the non-cash marketing expenses such as
the utilization of credits from Mercurius Media Capital
LP ("MMC").
(3) Represents remeasurement gains or losses related to
the contingent consideration of reAlpha Mortgage.
(4) Represents non-cash remeasurement gains or losses
related to the shares of Series A Preferred Stock
issued in the MMC transaction.
(5) Represents a loss recognized upon the extinguishment
of the debt related to the secured promissory note
issued to Streeterville.
(6) Represents a gain recognized upon the rescission of
the GTG Financial, Inc. acquisition.
(7) Represents the commitment fee of $1,000,000 incurred
in connection with the equity facility from GEM Yield
Bahamas Limited and GEM Global Yield LLC SCS, which
has been amortized over a period of 24 months, beginning
on October 23, 2023.
(8) Represents non-cash expenses related to shares of
common stock issued to certain employees and restricted
stock units granted to our executive officers and
certain employees.
(9) Represents legal and professional fees incurred in
connection with the issuance of shares of common stock
and warrants through the best efforts public offering
completed on July 18, 2025, the registered direct
offering and concurrent private placement completed
on July 22, 2025, and the at-the-market program with
Wainwright.
(END) Dow Jones Newswires
November 12, 2025 07:40 ET (12:40 GMT)