DUBLIN, Ohio, Aug. 14, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the "Company" or "reAlpha"), an AI-powered real estate technology company, today announced financial results and business highlights for the second quarter ended June 30, 2026.
Financial Highlights
(All figures are approximate and compared to the second quarter of 2025 unless otherwise stated.)
-- Revenue totaled approximately $1.1 million in the second quarter of 2026,
compared to approximately $1.3 million in the second quarter of 2025, a
decrease of 11%.
-- Homebuying Services Segment revenue was approximately $0.8 million,
compared to approximately $1.0 million in the prior-year period, a
decrease of 20%. Revenue from reAlpha Mortgage and Prevu, which
was acquired in November 2025, partly offset the absence of
approximately $0.6 million of GTG Financial revenue recognized in
the second quarter of 2025 before the acquisition was rescinded on
August 21, 2025.
-- Technology Services Segment revenue increased 30% to approximately
$0.3 million, compared to approximately $0.2 million in the
prior-year period, driven by continued growth in AiChat's
subscription-based platform.
-- Cash and cash equivalents increased 280% to approximately $2.2 million as
of June 30, 2026, compared to approximately $0.6 million as of June 30,
2025, primarily reflecting capital raised during the second half of 2025,
including proceeds from warrant exercises, partly offset by cash used to
fund operations and strategic growth initiatives.
-- Gross profit increased to approximately $0.7 million, up from
approximately $0.6 million in the second quarter of 2025. In the six
months ended June 30, 2026, gross profit margin increased to 66% from 52%
in the six months ended June 30, 2025, primarily reflecting a more
favorable service mix, including revenue contributed by Prevu, the
absence of higher-cost operations associated with GTG Financial, and
continued growth in AiChat's technology services.
-- Net loss narrowed to approximately $3.0 million in the second quarter of
2026, compared to approximately $4.8 million in the second quarter of
2025.
-- Adjusted EBITDA improved to approximately $(2.3) million, compared to
approximately $(3.5) million in the second quarter of 2025. The
improvement was primarily driven by lower marketing and advertising
expenses, including the absence of marketing expenses associated with the
Mercurius Media Capital LP ("MMC") marketing credits, as well as lower
professional and legal fees. In the second quarter of 2026, the Company
also implemented a restructuring plan that included a reduction of
approximately 25% of its global workforce and the rationalization of
certain third-party vendor relationships to improve operating efficiency
and better align its cost structure with its strategic objectives.
-- Total transaction volume increased approximately 70% to $150.4 million
for the trailing twelve months ended June 30, 2026, compared to
approximately $88.4 million for the trailing twelve months ended June 30,
2025. Total transaction volume represents the aggregate dollar value of
brokerage, mortgage and title transactions facilitated through the
reAlpha platform on a trailing twelve-month basis.
"During the second quarter, we made deliberate changes to how we operate and where we spend. We optimized our headcount, simplified parts of the business, rationalized certain vendor relationships and focused resources on areas where we see clear and measurable returns," said Thomas Kutzman, Chief Financial Officer of reAlpha. "Those actions are beginning to show up in the numbers with narrowing losses as a result of operating expenses declining approximately 23% year-over-year. Total transaction volume increased 70% to $150.4 million, reflecting the continued expansion and integration of reAlpha Mortgage and the broader real estate footprint following the Prevu acquisition. Gross margin also expanded to 66%, reflecting improved operating efficiency and a more favorable service mix. In a housing market that remains sensitive to rates and affordability, our focus is to keep improving the economics of the business and convert the growing level of total transaction volume activity across the platform into stronger financial performance."
Business Highlights
-- Preparing to complete the InstaMortgage acquisition by the end of August,
subject to customary closing conditions. If completed, the acquisition
would add direct lending, in-house underwriting and funding capabilities
to reAlpha's mortgage platform and expand its mortgage footprint to 38
states and Washington, D.C., giving the Company broader reach and greater
control over mortgage execution.
-- Regained compliance with Nasdaq's minimum bid price requirement,
satisfying a continued listing standard. On May 14, 2026, reAlpha
regained compliance with the minimum bid price requirement of The Nasdaq
Stock Market LLC ("Nasdaq") after its common stock maintained a closing
bid price of at least $1.00 per share for ten consecutive business days.
-- In May, management implemented return-driven spending initiatives
expected to generate approximately $2 million in annualized savings and
improve operating leverage. reAlpha streamlined operations, optimized
resource allocation, and consolidated vendor spend to strengthen
financial discipline, enhance scalability, and better align its cost
structure with the Company's growth priorities.
-- Expanded Technology Services Segment capabilities through AiChat,
reAlpha's B2B conversational AI subsidiary. AiChat launched
conversational commerce and AI-powered ticketing capabilities for
business clients and received two Silver Awards at the Hashtag Asia
Awards 2026 for its work with Senoko Energy, including Best Use of AI and
Best Social Media Use of Emerging Technologies. reAlpha believes that
these developments will strengthen its Technology Services Segment
business and demonstrate AiChat's ability to turn applied AI into
commercial solutions for enterprise clients.
-- Launched reAlpha Mortgage's Flat Fee Compensation Model to support
national loan originator recruitment and build a scalable production
network. The model provides participating loan originators with a
straightforward compensation structure, equity award eligibility,
AI-powered operational support, internal lead opportunities and
recruiting income opportunities. It is designed to help reAlpha Mortgage
recruit and support originators while expanding its technology-enabled
mortgage platform.
"This quarter was about earning the right to scale. We made difficult decisions to simplify the Company, sharpen our priorities and concentrate resources behind the businesses where we see the clearest path to revenue and stronger economics," said Mike Logozzo, Chief Executive Officer of reAlpha. "The goal is not to own more of the homebuying transaction for its own sake; it is to make every capability we build or acquire produce more value for the customer and for reAlpha. As we anticipate closing the InstaMortgage acquisition by the end of August, we are intending to move forward with a leaner organization, a more focused mortgage strategy and a higher standard for every dollar and every initiative. That is the foundation that we believe is required to turn the platform we have built into a durable business."
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; 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 maintain compliance with Nasdaq's continued listing rules; reAlpha's ability to realize the anticipated cost savings and operating efficiencies from its restructuring plan and related initiatives; 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 further expand 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 most recent Annual Report on Form 10-K and other current or periodic reports filed with with the U.S. Securities and Exchange Commission (the "SEC") and available for review at www.sec.gov. 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:
Payton Cuddy, Senior Marketing Manager
media@realpha.com
Investor Relations Contact:
Adele Carey, VP of Investor Relations
InvestorRelations@reAlpha.com
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2026 (unaudited) and December 31, 2025
June 30, December 31,
2026 2025
------------ ------------
ASSETS
Current Assets
Cash $ 2,230,607 $ 7,783,529
Accounts receivable, net 164,959 68,148
Prepaid expenses 299,977 961,411
Other current assets 286,439 362,293
Escrow deposit 500,000 600,000
----------- -----------
Total current assets $ 3,481,982 $ 9,775,381
Property and Equipment
Property and equipment, net $ 105,970 $ 64,626
Other Assets
Investments 56,466 111,646
Intangible assets, net 4,031,464 4,306,553
Goodwill 7,459,125 7,459,125
----------- -----------
TOTAL ASSETS $ 15,135,007 $ 21,717,331
=========== ===========
LIABILITIES, MEZZANINE EQUITY AND
STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable 724,440 $ 306,216
Related party payables 5,609 5,654
Short term loans - related
parties - current portion 60,746 86,585
Short term loans - unrelated
parties - current portion 185,141 209,601
Accrued expenses 248,459 660,577
Deferred liabilities - current
portion 1,856,349 1,960,850
Deferred revenue 256,713 396,227
Contingent consideration -
current portion 60,184 -
----------- -----------
Total current liabilities $ 3,397,641 $ 3,625,710
Long-Term Liabilities
Derivative liability 4,760,012 4,574,980
Other long-term loans - unrelated
parties - net of current
portion 54,872 88,411
Deferred liabilities - net of
current portion - 561,740
Contingent consideration - net of
current portion 244,666 344,877
----------- -----------
Total liabilities $ 8,457,191 $ 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
June 30, 2026 and December 31,
2025, respectively. 1,096,133 1,020,377
Stockholders' Equity
Common stock ($0.001 par value;
200,000,000 shares authorized,
5,374,302 shares outstanding as
of June 30, 2026; 200,000,000
shares authorized, 5,269,799
shares outstanding as of
December 31, 2025) 5,374 5,270
Additional paid-in capital 69,129,985 67,593,364
Accumulated deficit (63,444,055) (55,980,534)
Accumulated other comprehensive
(loss) (120,599) (127,889)
----------- -----------
Total stockholders' equity of
reAlpha Tech Corp. 5,570,705 11,490,211
Non-controlling interests in
consolidated entities 10,978 11,025
----------- -----------
Total stockholders' equity 5,581,683 11,501,236
----------- -----------
TOTAL LIABILITIES, MEZZANINE
EQUITY AND STOCKHOLDERS' EQUITY $ 15,135,007 $ 21,717,331
=========== ===========
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Operations and
Comprehensive Loss
For the Three Months and Six Months Ended June 30,
2026 and 2025 (unaudited)
For the For the
Three Months Ended Six Months Ended
------------------------- -------------------------
June 30, June 30, June 30, June 30,
2026 2025 2026 2025
----------- ----------- ----------- -----------
Revenues $ 1,110,343 $ 1,252,381 $ 1,951,406 $ 2,178,016
Cost of revenues 377,396 630,916 666,193 1,037,884
---------- ---------- ---------- ----------
Gross Profit 732,947 621,465 1,285,213 1,140,132
Operating Expenses
Wages, benefits
and payroll
taxes 2,030,269 1,576,421 4,157,988 2,636,525
Marketing and
advertising 178,076 1,483,672 1,440,059 2,002,611
Professional and
legal fees 650,294 1,003,732 1,380,923 1,745,891
Depreciation and
amortization 170,680 131,045 332,739 310,194
Impairment of
capitalized
software - 105,900 - 105,900
Other operating
expenses 598,702 409,825 1,149,680 850,400
---------- ---------- ---------- ----------
Total operating
expenses 3,628,021 4,710,595 8,461,389 7,651,521
---------- ---------- ---------- ----------
Operating Loss (2,895,074) (4,089,130) (7,176,176) (6,511,389)
Other Expense (income)
Changes in fair
value of
contingent
consideration (21,677) (174,000) (40,027) (81,000)
Interest expense,
net 16,790 242,639 41,465 447,702
Change in fair
value of
derivative
liability 157,532 417,705 185,032 417,705
Other expense,
net 1,546 242,260 25,166 372,106
---------- ---------- ---------- ----------
Total other
expense 154,191 728,604 211,636 1,156,513
---------- ---------- ---------- ----------
Net Loss from
operations before
income taxes (3,049,265) (4,817,734) (7,387,812) (7,667,902)
Income tax
(expense)
benefit - - - -
Net Loss $(3,049,265) $(4,817,734) $(7,387,812) $(7,667,902)
Less: Net (Loss)
income Attributable
to Non-Controlling
Interests (51) 2,038 (47) 1,629
---------- ---------- ---------- ----------
Net Loss Attributable
to Controlling
Interests $(3,049,214) $(4,819,772) $(7,387,765) $(7,669,531)
========== ========== ========== ==========
Preferred stock
dividend 38,633 $ 49,365 75,756 $ 49,549
---------- ---------- ---------- ----------
Net Loss Attributable
to Common
Stockholders $(3,087,847) $(4,869,137) $(7,463,521) $(7,719,080)
Other comprehensive
income
Foreign currency
translation
adjustments 2,939 (106,436) 7,290 (98,511)
---------- ---------- ---------- ----------
Total other
comprehensive
(Loss) income 2,939 (106,436) 7,290 (98,511)
========== ========== ========== ==========
Comprehensive Loss
Attributable to
Common Stockholders $(3,084,908) $(4,975,573) $(7,456,231) $(7,817,591)
Basic loss per
share
Net Loss per
share -- basic $ (0.57) $ (2.37) $ (1.40) $ (3.98)
Diluted loss per
share
Net Loss per
share --
diluted $ (0.57) $ (2.37) $ (1.40) $ (3.98)
Weighted-average
outstanding
shares -- basic 5,371,313 2,051,589 5,333,592 1,939,651
Weighted-average
outstanding
shares --
diluted 5,371,313 2,051,589 5,333,592 1,939,651
---------- ---------- ---------- ----------
reAlpha Tech Corp. and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2026, and 2025 (unaudited)
For the For the
Six Months Six Months
Ended Ended
June 30, June 30,
2026 2025
Cash Flows from Operating Activities:
Net Loss $(7,387,812) $(7,667,902)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 332,739 261,444
Impairment of capitalized software - 105,900
Impairment of intangible assets 16,039 -
Bad debt expense 5,503 -
Amortization of loan discounts and
origination fees - 242,502
Stock based compensation 715,457 271,343
Change in fair value of contingent
consideration (40,027) (81,000)
Non cash commitment fee expenses - 250,000
Change in fair value of derivative
liability 185,032 417,705
Non cash marketing and advertising 593,429 1,293,991
Non cash compensation - GTG
Financial - 106,000
Loss on extinguishment of debt - 70,065
Loss on sale of properties - 48,748
Loss from equity method investment 5,180 2,398
Changes in operating assets and
liabilities, net of acquired assets and
assumed liabilities:
Changes in operating assets and
liabilities
Accounts receivable (102,314) (14,733)
Receivable from related parties - 10,614
Payable to related parties (45) (3,563)
Prepaid expenses 68,005 61,946
Other current assets 75,854 (225,920)
Accounts payable 418,224 428,013
Accrued expenses (325,116) (216,616)
Deferred liabilities 101,255 37,036
Deferred revenue (39,514) -
Total adjustments 2,009,701 3,065,873
Net cash used in operating activities (5,478,111) (4,602,029)
Cash Flows from Investing Activities:
Additions to property and equipment (58,126) (27,114)
Cash paid for acquisitions, net - 349,529
Cash used for additions to capitalized
software (58,736) (131,283)
Net cash used in investing activities (116,862) 191,132
Cash Flows from Financing Activities:
Proceeds from issuance of debt- related
parties - 155,481
Proceeds from issuance of common stock 131,341 3,508,490
Payments of debt (83,838) (1,554,456)
Equity issuance expenses (5,191) (235,251)
Net cash provided by financing
activities 42,312 1,874,264
Net decrease in cash (5,552,661) (2,536,633)
Effect of exchange rate changes on cash (261) -
Cash - Beginning of Period 7,783,529 3,123,944
Cash - End of Period $ 2,230,607 $ 587,311
Supplemental Disclosure of Cash Flow
Information
Interest expense $ 41,465 $ 38,758
Noncash Investing and Financing
Activities:
Series A Convertible Preferred Stock
issuance - MMC - 5,000,000
Series A Convertible Preferred Stock
issuance - GTG Financial - 284,922
Deferred cash payments - GTG Financial - 1,344,750
Common stock issuance for GTG Financial
acquisition - 451,135
Common stock issuance to Streeterville
Capital, LLC - 370,065
Common stock issuance - GTG Financial - 1,287,000
Deferred issuance of common stock -
Prevu 617,495 -
Common stock issuance -- employees 80,740 -
Paid in kind dividends 122,500 -
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, 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.