DUBLIN, Ohio, April 28, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the "Company" or "reAlpha"), an AI-powered real estate technology company, today announced financial results for the first quarter ended March 31, 2026.
Financial Highlights
(All figures are approximate and compared to Q1 2025 unless otherwise stated)
-- Revenue decreased 9% to $0.8 million in the first quarter of 2026,
compared to $0.9 million in the first quarter of 2025.
-- Homebuying Services Segment revenue was $0.6 million, compared to
$0.8 million in the prior year period, reflecting contributions
from reAlpha Mortgage and Prevu, which was acquired in November
2025, and partially offset by the absence of revenue generated by
GTG Financial following the rescission of the acquisition in
August 2025.
-- Technology Services Segment revenue was $0.3 million, compared to
$0.2 million in the prior year period, driven by growth in
AiChat's subscription-based platform and related services.
-- Cash and cash equivalents increased 288% to $4.7 million as of March 31,
2026, compared to $1.2 million as of March 31, 2025, primarily reflecting
capital raised during 2025, including proceeds from warrant exercises.
-- Gross profit increased to $0.6 million, up from $0.5 million in the first
quarter of 2025. Gross margin increased to 66% from 56% in the first
quarter of 2025, primarily reflecting a higher contribution from AiChat's
technology services, which carry higher gross margins than the Company's
real estate and mortgage operations.
-- Adjusted EBITDA was $(3.8) million, compared to $(2.0) million in the
first quarter of 2025, primarily reflecting the full-quarter impact of
operating expenses from recently acquired businesses, the use of
marketing credits from the media-for-equity transaction with Mercurius
Media and higher operating expenses year-over-year.
-- Net loss was $4.3 million in the first quarter of 2026, compared to $2.9
million in the first quarter of 2025.
-- Total Transaction Volume increased by 119% to $131.3 million, compared to
$59.9 million in Q1 2025. Total Transaction Volume reflects the aggregate
dollar value of brokerage, mortgage and title transactions facilitated
through the reAlpha platform on a trailing twelve-month basis.
"Our first quarter results reflect continued progress in scaling the reAlpha platform alongside a more dynamic housing market environment. While revenue declined year-over-year, we delivered strong growth in total transaction volume and improved gross margins, supported by the performance of our core homebuying and technology services," said Thomas Kutzman, Chief Financial Officer of reAlpha. "As the quarter progressed, a combination of interest rate volatility and broader market uncertainty influenced homebuyer activity, contributing to a more selective and timing-sensitive buyer environment. In this context, execution and efficiency across the platform are critical. We are focused on improving coordination throughout the homebuying journey, strengthening conversion, and positioning the business for future growth."
Business Highlights
During Q1 2026, reAlpha advanced a set of operating priorities aimed at increasing service coordination, clarifying the buyer value proposition, and improving readiness for the spring homebuying season:
-- Launched Homebuying Hub to coordinate the buy-side journey across search,
financing, and closing. The centralized platform brings simplified
structure to the transaction process by helping buyers navigate key
milestones through a more unified experience. reAlpha believes that the
launch of the Hub is an important step toward improving customer
continuity across the full homebuying journey.
-- Introduced enhanced "Make an Offer" functionality to streamline the
transition from search to transaction. The updated workflow gives buyers
a clearer path into the offer stage and helps reduce friction at a
critical point in conversion. This improvement is part of reAlpha's
ongoing effort to simplify execution across high-intent moments in the
buying process.
-- Improved multi-service onboarding and customer progression flows to
support a more coordinated cross-service experience. reAlpha continued
refining how customers move between real estate, financing, and related
transaction milestones on the platform. The result is intended to be a
more connected experience that better supports engagement across multiple
services.
-- Upgraded the Multiple Listing Service data pipeline to improve listing
sync and platform responsiveness. Faster listing updates help ensure that
users are seeing more current information as they search and evaluate
homes. The enhancement is also expected to strengthen the reliability of
the platform during periods of active customer engagement.
-- Appointed Thomas Kutzman as Chief Financial Officer to oversee financial
operations, capital strategy, and key corporate functions. Mr. Kutzman's
appointment provides senior financial leadership as reAlpha continues to
scale its platform, integration efforts, and public-company
infrastructure. reAlpha expects his leadership to support operational
discipline, financial oversight, and execution across key strategic
initiatives.
-- Embedded agentic AI into core back-office workflows across Operations,
M&A, Marketing, Strategy, and Research. These workflow initiatives are
intended to improve how teams manage planning, diligence, coordination,
and decision-making across the organization. reAlpha believes this
internal AI layer can help the business scale more efficiently while
maintaining execution speed.
"As we navigate current market headwinds, we are seeing our platform strategy translate into real momentum, with total transaction volume more than doubling year over year as we expand our service coverage and better coordinate real estate, mortgage, and title," said Mike Logozzo, Chief Executive Officer of reAlpha. "During the quarter, we focused on making a better homebuying model more tangible, with a clearer savings proposition, a more organized path from search through financing, and continued progress in how the buyer journey works together. In a market where affordability is stretched and buyers are more selective, we believe the long-term winner will be the company that makes homebuying easier, more trustworthy, and more affordable for the customer."
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 Executive Officer, Mike Logozzo, and reAlpha's Chief Financial Officer, Thomas Kutzman, 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 limited operating history and that reAlpha has not yet fully developed its AI-based technologies; the health of the U.S. residential real estate industry and changes in general economic conditions; reAlpha's ability to pay contractual obligations; reAlpha's liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha's ability to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) and maintain compliance with all Nasdaq listing rules; reAlpha's ability to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2); reAlpha's ability to generate additional sales or revenue from having access to, or obtaining, additional U.S. states brokerage licenses; 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 translate improvements to its platform and homebuying journey into increased revenue; 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; the inability to maintain and strengthen reAlpha's brand and reputation;
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; 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; 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
March 31, 2026 (Unaudited) and December 31, 2025
March 31, December 31,
2026, 2025
------------ ------------
ASSETS
Current Assets
Cash $ 4,667,612 $ 7,783,529
Accounts receivable, net 91,610 68,148
Pre-paid expenses 353,958 961,411
Other current assets 237,385 362,293
Escrow deposit 500,000 600,000
----------- -----------
Total current assets 5,850,565 9,775,381
Property and Equipment, at cost
Property and equipment, net $ 103,165 $ 64,626
Other Assets
Investments 59,417 111,646
Intangible assets, net 4,164,833 4,306,553
Goodwill 7,459,125 7,459,125
----------- -----------
TOTAL ASSETS $ 17,637,105 $ 21,717,331
----------- -----------
LIABILITIES, MEZZANINE EQUITY AND
STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 551,533 $ 306,216
Related party payables 5,622 5,654
Short term loans - related parties
-current portion 72,046 86,585
Short term loans - unrelated
parties -current portion 186,839 209,601
Accrued expenses 325,274 660,577
Deferred liabilities- current
portion 1,242,466 1,960,850
Deferred revenue 363,618 396,227
----------- -----------
Total current liabilities $ 2,747,398 $ 3,625,710
Long-Term Liabilities
Derivative liability 4,602,480 4,574,980
Other long-term loans - unrelated
parties - net of current portion 71,630 88,411
Deferred liabilities - net of
current portion 577,836 561,740
Contingent consideration 326,527 344,877
----------- -----------
Total liabilities $ 8,325,871 $ 9,195,718
Mezzanine Equity
Preferred Stock, $0.001 par value;
5,000,000 shares authorized, of
which 1,000,000 shares are
designated as Series A
Convertible Preferred Stock;
256,125 and 250,000 shares issued
and outstanding as of March 31,
2026, and December 31, 2025,
respectively. 1,057,500 1,020,377
Stockholders' Equity
Common stock ($0.001 par value;
200,000,000 shares authorized,
134,118,789 and 131,740,675
shares outstanding as of March
31, 2026; and December 31, 2025,
respectively. 134,119 131,741
Additional paid-in capital 68,588,279 67,466,893
Accumulated deficit (60,356,156) (55,980,534)
Accumulated other comprehensive
(loss) (123,538) (127,889)
----------- -----------
Total stockholders' equity of
reAlpha Tech Corp. 8,242,704 11,490,211
Non-controlling interests in
consolidated entities 11,030 11,025
----------- -----------
Total stockholders' equity 8,253,734 11,501,236
----------- -----------
TOTAL LIABILITIES, MEZZANINE EQUITY
AND STOCKHOLDERS' EQUITY $ 17,637,105 $ 21,717,331
----------- -----------
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Operations and
Comprehensive Loss
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
March 31, March 31,
2026 2025
------------ -----------
Revenues $ 841,062 $ 925,635
Cost of revenues 288,797 406,968
----------- ----------
Gross Profit 552,265 518,667
Operating Expenses
Wages, benefits and payroll taxes 2,128,488 1,060,104
Marketing and advertising 1,261,980 518,939
Professional and legal fees 727,632 742,159
Depreciation and amortization 165,202 179,149
Other operating expenses 549,621 440,574
----------- ----------
Total operating expenses 4,832,923 2,940,925
----------- ----------
Operating Loss (4,280,658) (2,422,258)
Other Expense (Income)
Changes in fair value of contingent
consideration (18,350) 93,000
Interest expense, net 24,680 205,063
Change in fair value of derivative
liability 27,500 -
Other expense, net 24,007 129,846
----------- ----------
Total other expense 57,837 427,909
----------- ----------
Net Loss from continuing operations
before income taxes (4,338,495) (2,850,167)
Income tax (expense) benefit - -
Net Loss from continuing operations (4,338,495) (2,850,167)
Net Loss $ (4,338,495) $(2,850,167)
Less: Net Income (Loss) Attributable
to Non-Controlling Interests 5 (409)
----------- ----------
Net Loss Attributable to Controlling
Interests $ (4,338,500) $(2,849,758)
----------- ----------
Preferred stock dividend 37,123 $ 184
----------- ----------
Net Loss Attributable to Common
Stockholders $ (4,375,623) $(2,849,942)
Other comprehensive income
Foreign currency translation
adjustments 4,351 (11,931)
----------- ----------
Total other comprehensive (Loss)
income 4,351 (11,931)
----------- ----------
Comprehensive Loss Attributable to
Common Stockholders $ (4,371,272) $(2,861,873)
Basic loss per share
Continuing operations $ (0.03) $ (0.06)
Net Loss per share -- basic $ (0.03) $ (0.06)
Diluted loss per share
Continuing operations $ (0.03) $ (0.06)
Net Loss per share -- diluted $ (0.03) $ (0.06)
Weighted-average outstanding shares
-- basic 132,384,827 45,913,591
Weighted-average outstanding shares
-- diluted 132,384,827 45,913,591
----------- ----------
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2026, and 2025
(unaudited)
For the For the
Three Months Ended Three Months Ended
March 31, March 31,
2026 2025
--------------------- ---------------------
Cash Flows from
Operating
Activities:
Net Loss $ (4,338,495) $ (2,850,167)
Adjustments to
reconcile net loss
to net cash used in
operating
activities:
Depreciation and
amortization 165,202 179,149
Amortization of
loan discounts
and origination
fees - 72,501
Common stock
issued to
non-employee 3,115 -
Stock based
compensation -
employees 340,848 78,355
Change in fair
value of
contingent
consideration (18,350) 93,000
Non-cash
commitment fee
expenses - 125,000
Change in fair
value of
derivative
liability 27,500 -
Non-cash
marketing and
advertising 593,429 -
Interest
expense on
deferred
consideration - -
Loss from equity
method
investment 2,229 872
Changes in
operating assets
and liabilities
Accounts receivable (28,965) 17,732
Receivable from
related parties - 5,465
Pre-paid expenses 14,024 (3,810)
Other current assets 224,908 (7,160)
Accounts payable 245,317 184,803
Payable to related
parties (32) 93
Accrued expenses (387,081) (187,813)
Deferred liabilities 65,208 -
Deferred revenue (32,609) 24,877
Total adjustments 1,214,743 583,064
----------------- -----------------
Net cash used in
operating
activities (3,123,752) (2,267,103)
Cash Flows from
Investing
Activities:
Additions to
property and
equipment (47,334) (13,665)
Cash paid for
acquisitions, net - 349,529
Cash used for
additions to
capitalized
software (16,476) (91,310)
----------------- -----------------
Net cash (used in)
provided by
investing
activities (63,810) 244,554
Cash Flows from
Financing
Activities:
Proceeds from
issuance of debt-
related parties - 155,481
Proceeds from
issuance of common
stock 131,341 231,235
Payments of debt (54,083) (283,711)
Equity issuance
expenses (5,191) -
----------------- -----------------
Net cash provided by
financing
activities 72,067 103,005
Net decrease in cash (3,115,495) (1,919,544)
Effect of exchange
rate changes on
cash (422) -
Cash - Beginning
of Period 7,783,529 3,123,944
----------------- -----------------
Cash - End of
Period $ 4,667,612 $ 1,204,400
----------------- -----------------
Supplemental
disclosure of
cash flow
information
Interest expense $ (6,659) -
Non-cash
Investing and
Financing
Activities:
Series A Convertible
Preferred Stock
issuance - MMC - 5,000,000
Series A Convertible
Preferred Stock
issuance - GTG
Financial - 284,992
Deferred cash
payments - GTG
Financial - 1,344,750
Deferred issuance of
common stock - GTG
Financial - 1,287,000
Deferred issuance of
common stock -
Prevu 617,495 -
Non-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, have 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, 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 Ended
March 31,
------------------------------
2026 2025
--------------- ------------
Net loss $ (4,338,495) $ (2,850,167)
preAdjusted to exclude the
following
Depreciation and amortization 165,202 179,149
Amortization of loan discounts and
origination fee - 121,251
Changes in fair value of contingent
consideration (1) (18,350) 93,000
Change in fair value of derivative
liability (2) 27,500 -
Interest expense 24,680 205,063
GEM commitment fee - 125,000
Stock based compensation (3) 343,963 78,355
Acquisition-related expenses - 87,352
----------- -----------
Adjusted EBITDA $ (3,795,500) $ (1,960,997)
----------- -----------
(1) Represents non-cash changes in the fair value of contingent
consideration payable to reAlpha Mortgage which is
calculated based on revenue and EBITDA targets.
(2) Represents non-cash changes in the fair value of derivative
liability recorded in connection with our media-for-equity
transaction with MMC.
(3) Represents non-cash stock-based compensation expenses
recognized during the period.
(END) Dow Jones Newswires
April 28, 2026 07:05 ET (11:05 GMT)