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® 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® 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
Investor Relations Contact:
Adele Carey, VP of Investor Relations
reAlpha Tech Corp. and SubsidiariesCondensed Consolidated Balance SheetSeptember 30, 2025 (Unaudited) and December 31, 2024
September 30,2025
December 31,2024
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 SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive LossFor the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,2025
September 30,2024
September 30,2025
September 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
