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reAlpha (NASDAQ: AIRE) Completes InstaMortgage Acquisition, Adding Direct Lending Capabilities to Company’s Integrated Platform
Acquisition adds multi-state direct lending with in-house underwriting and funding, expanding reAlpha’s integrated mortgage platform across 38 states and Washington, D.C. DUBLIN, Ohio, Aug. 21, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company, today announced it has completed its acquisition of InstaMortgage Inc., a multi-state mortgage lender with in-house underwriting and funding capabilities, on August 19, 2026. The transaction brings direct lending into reAlpha’s platform and marks a significant step in the Company’s effort to create an end-to-end homebuying experience. By bringing lending capabilities in-house, reAlpha believes it may gain greater control over execution while expanding its ability to serve homebuyers through both mortgage brokerage and direct-lending models. Under the terms of the Amended and Restated Merger Agreement, reAlpha acquired all outstanding shares of InstaMortgage for aggregate consideration of approximately $8.5 million, subject to certain closing adjustments. The consideration consists of $0.5 million in cash, $1.5 million in reAlpha common stock issued at closing, and up to $6.5 million in deferred consideration payable in semi-annual installments over three years following closing, in cash or shares of reAlpha common stock at the Company’s election, provided that at least $1.5 million of such deferred consideration must be paid in cash. “We have completed the InstaMortgage acquisition," said Mike Logozzo, Chief Executive Officer of reAlpha. "reAlpha is now able to originate, underwrite and fund mortgages in-house, across 38 states and Washington, D.C. We believe homebuying improves when brokerage, lending and title operate as one system rather than three. Lending was the piece we handed to partners, and it now runs inside the platform.” Founded in 2008, InstaMortgage has built a full-cycle lending operation spanning origination, underwriting, funding and loan sale. Following the acquisition, reAlpha’s integrated mortgage platform, comprising reAlpha Mortgage and InstaMortgage, provides coverage across 38 states and Washington, D.C. “Over the last eighteen years, we have built InstaMortgage to operate as a full-cycle lending business, supported by the licensing, capital relationships, operating infrastructure and team required to execute across the lifecycle of a loan,” said Shashank Shekhar, Chief Executive Officer of InstaMortgage. “What makes this combination compelling is that our lending capabilities and infrastructure, developed over more than a decade, now become part of a platform designed to simplify the broader homebuying journey.” “I want to thank the teams at reAlpha and InstaMortgage whose work made this closing possible,” Mr. Logozzo added. “This transaction gives reAlpha more than additional scale. It adds capabilities and economics that fit directly into the platform we have been building. Our responsibility now is to integrate those businesses well, execute with discipline and turn that stronger foundation into lasting value for customers and stockholders.” After receiving the other required state approvals, reAlpha and InstaMortgage mutually agreed, in accordance with the terms of the Amended and Restated Merger Agreement, to waive the closing condition relating to two outstanding regulatory approvals to allow the Company to begin integrating InstaMortgage and realizing the broader strategic and operational benefits of the acquisition without further delay. The outstanding approvals relate to two states that accounted for approximately 0.82% and 20.49%, respectively, of InstaMortgage’s loan origination volume for the six months ended June 30, 2026, and approximately 1.93% and 22.59%, respectively, for the year ended December 31, 2025. InstaMortgage may cease conducting business in one or both of these states while the approval applications are pending. For more information on the closing of this acquisition, please refer to the Current Report on Form 8-K that is expected to be filed with the U. S. Securities and Exchange Commission (the “SEC”) within four business days of such closing. Additionally, within 71 days after the date that such Current Report on Form 8-K is required to be filed with the SEC, the Company will file with the SEC an amendment to such Current Report on Form 8-K that includes the required audited financial statements and pro forma financial information pursuant to applicable SEC regulations. 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. About InstaMortgage Inc. Originally founded in 2008 by Shashank Shekhar as Arcus Lending, the company rebranded as InstaMortgage, NMLS 1035734, in 2021. InstaMortgage aims to provide a different mortgage experience to its clients across 29 states and Washington D.C. By combining technology with expert advice, excellent customer service, and competitive rates, InstaMortgage delivers mortgage options that are tailored to each client's unique financial situation. To learn more, visit www.instamortgage.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 Chief Executive Officer of InstaMortgage, Shashank Shekhar or statements about the InstaMortgage acquisition, the anticipated benefits of the InstaMortgage acquisition, reAlpha’s ability to integrate InstaMortgage into its business and scale its business following the acquisition of InstaMortgage, reAlpha’s long-term platform strategy and anticipated benefits to customers, 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; reAlpha and InstaMortgage’s ability to obtain regulatory approval in Virginia and New York; reAlpha’s ability to realize the expected benefits of the acquisition of InstaMortgage and its operations, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; the potential negative effects of the Company’s and InstaMortgage’s business from not obtaining the regulatory approvals in Virginia and New York timely or at all; 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 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 integrate the business of its acquired companies into its existing business, including InstaMortgage, 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 maintain and strengthen its 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® 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 period reports filed with 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
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reAlpha (Nasdaq: AIRE) Reports Second-Quarter 2026 Financial Results
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® 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, 2026  December 31, 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 Three Months Ended  For the Six Months Ended   June 30, 2026  June 30, 2025  June 30, 2026  June 30, 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) $(3.98)                  Weighted-average outstanding shares — basic 5,371,313   2,051,589   5,333,592   1,939,651                   Weighted-average outstanding shares — diluted 5,371,313   2,051,589   5,333,592   1,939,651  reAlpha Tech Corp. and Subsidiaries Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2026, and 2025 (unaudited)         For the Six Months Ended  For the Six Months Ended   June 30, 2026  June 30, 2025  Cash Flows from Operating Activities:      Net Loss$(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. Total transaction volume represents the aggregate dollar value of brokerage, mortgage and title transactions facilitated through the reAlpha platform over the applicable trailing twelve-month period, including the closing sale price of real estate transactions, the principal amount of mortgage loans closed, and the property transaction value associated with title services. Because a single underlying property transaction may involve more than one of these services, the same transaction value may be reflected in more than one component of total transaction volume. Total transaction volume is not a measure of revenue, profit or cash flow, and may not correlate with any of them. While revenue is generated in part as a percentage of transaction volume, revenue recognized in a given period reflects only the commissions, fees and other amounts earned during that period and does not correspond directly or proportionately to total transaction volume, which is measured on a trailing twelve-month basis. The relationship between the two also varies based on the mix of services provided, the timing of revenue recognition, and customers’ adoption of multiple reAlpha services, so total transaction volume should not be used as a predictor of revenue for any period.    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  For the Six Months Ended   June 30,  June 30,   2026  2025  2026  2025               Net loss$(3,049,265)  (4,817,734) $(7,387,812)  (7,667,902) Adjusted to exclude the following                Depreciation and amortization 170,680   131,045   332,739   261,444  Amortization of loan discounts and origination fee -   121,251   -   242,502  Impairment of capitalized software development- work in progress -   105,900   -   105,900  Changes in fair value of contingent consideration(1) (21,677)  (174,000)  (40,027)  (81,000) Change in fair value of Derivative Liability(2) 157,532   417,705   185,032   417,705  Loss (gain) on equity method investments 2,951   1,526   5,180   2,398  Interest expense (income) 16,790   191,454   41,465   253,950  GEM commitment fee -   125,000   -   250,000  Share-based compensation(3) 368,377   192,988   715,457   271,343  Equity offering costs -   230,774   -   230,774  Impairment of Intangible Assets(4) 16,039   -   16,039   -  Acquisition-related expenses -   -   -   87,352  Expense related to restructuring 68,244   -   68,244   -  Adjusted EBITDA$(2,270,329)  (3,474,091) $(6,063,683)  (5,625,534) (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.     (4) Represents impairment of intangible assets during the period.     (5) Represents restructuring costs incurred in connection with the Plans.
GlobeNewswire
reAlpha Mortgage Launches Flat Fee Compensation Model to Accelerate National Loan Officer Recruitment
New model combines transparent loan origination economics with equity award eligibility, AI-powered support, internal lead opportunities, and uncapped recruiting income DUBLIN, Ohio, June 26, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced that reAlpha Mortgage, its mortgage division, has launched a flat fee compensation model designed to support its national loan originator (“LO”) recruiting efforts. The model gives LOs a straightforward compensation structure, allowing LOs to retain a greater share of their production without tiered splits, opaque formulas, or variable thresholds. reAlpha Mortgage designed this flat fee compensation model to be a key component of a broader drive to build a modern mortgage platform that combines competitive compensation with AI-powered support, scalable production infrastructure, and equity award eligibility that is designed to align the interests of the Company’s LOs with those of the Company’s stockholders. Under the model, qualifying producing LOs at reAlpha Mortgage would be eligible to receive restricted stock units (“RSUs”) of reAlpha, which would be granted in accordance with the terms and conditions of the Company’s equity incentive plan and any applicable award agreements. In addition, the model includes uncapped recruiting income opportunities for LOs who help bring other originators onto the platform. Participating LOs may earn income on the production that their recruit closes, for as long as both remain employed with reAlpha Mortgage. reAlpha Mortgage is launching the model at a time when the mortgage broker channel continues to expand across the industry. According to industry data, mortgage brokers accounted for 20.2% of originations in the fourth quarter of 2025, up from 19.6% a year earlier, while broker volume grew nearly 17% in 2025.1 The Company's model is designed to fit this reality, providing LOs with the flexible operating model, technology-enabled workflows, and scalable platform support needed to scale their production as the industry increasingly prioritizes individual originator performance. “We are launching this model because reAlpha Mortgage is now built to support LOs at scale,” said Jamie Cavanaugh, Chief Executive Officer of reAlpha Mortgage. “Flat fee compensation gives LOs the economics they are asking for, but the unique advantage at reAlpha Mortgage is what surrounds it: access to a broader homebuying ecosystem, AI-powered operational support, equity award eligibility, and a compensation model that rewards both production and recruiting. We believe this is a better platform for originators who want to grow, not just switch brokerages.” reAlpha Mortgage also operates within reAlpha’s homebuying ecosystem, which combines real estate, mortgage, and title services. Eligible homebuyers may receive up to 1.5% of the purchase price toward closing costs when using both reAlpha’s realty and mortgage services. The Company believes this integrated model can improve borrower retention and create stronger lead conversion opportunities for LOs. The Company is also equipping LOs with AI-powered support tools, including its internal AI-powered Engagement Assistant, built to strengthen lead engagement, qualification, and follow-up. reAlpha Mortgage believes these tools can reduce administrative workload and allow originators to spend more time advising borrowers, building relationships, and closing loans. For more information or to express interest in joining reAlpha Mortgage, visit: https://links.realphatech.com/widget/booking/JngN46YIb9TKaAW3t6kv 1) loanDepot is back in the wholesale channel, HousingWire, https://www.housingwire.com/articles/loandepot-reenters-wholesale-lending. 2) Calculation based on a $500,000 loan amount, 275 basis points of total compensation, a 70% split compensation structure, and reAlpha Mortgage's flat fee compensation model. Actual compensation may vary based on loan characteristics, pricing, fees, compensation elections, program eligibility, employment status, and applicable law. 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 Mortgage’s CEO Jamie Cavanaugh, 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; 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 attract and retain LOs utilizing its new flat fee compensation model; reAlpha’s ability to leverage its AI-powered capabilities to scale production efficiencies for LOs; reAlpha’s ability 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; 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 enhance its operational efficiency, improve cross-functional coordination and support the reAlpha platform’s continued growth through the implementation of its new internal organizational structure; any accidents or incidents involving cybersecurity breaches and incidents; 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; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s SEC filings. 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
GlobeNewswire
reAlpha (NASDAQ: AIRE) to Host “AIRE Time With Mike” Fireside Chat Moderated by Benchmark Analyst Daniel Kurnos
Live X Spaces discussion to feature commentary on housing market dynamics, AI-driven real estate trends, and operational developments across the mortgage industry DUBLIN, Ohio, June 01, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced it will host a live X Spaces fireside chat as part of its ongoing “AIRE Time With Mike” series, featuring conversations around market trends, technology, and developments across the real estate and mortgage industries, on Friday, June 5, 2025 at 11:00 AM ET. Daniel Kurnos, CFA, Managing Director and Internet & Media Analyst at The Benchmark Company, will moderate a discussion with Mike Logozzo, Chief Executive Officer of reAlpha, and Thomas Kutzman, Chief Financial Officer of reAlpha, focused on the housing market, mortgage industry trends, artificial intelligence applications across real estate, and reAlpha’s position within the evolving real estate technology landscape. The discussion is expected to include commentary surrounding broader housing and mortgage market conditions, AI-driven operational efficiencies across the industry, and developments shaping the real estate technology landscape. “Artificial intelligence is beginning to reshape core parts of the real estate and mortgage experience, from customer acquisition to transaction execution,” said Mike Logozzo, Chief Executive Officer of reAlpha. “At the same time, market conditions are putting real pressure on the industry to operate more efficiently and deliver a simpler consumer experience. We believe these shifts are accelerating the need for more integrated, efficient platforms, and we are building reAlpha to reduce friction across the entire homebuying journey. Conversations like this are an opportunity to explore how that shift is unfolding across the industry.” X Spaces Call Information Title: AIRE Time With Mike Participants: Mike Logozzo, Chief Executive Officer, and Thomas Kutzman, Chief Financial Officer Moderator: Daniel Kurnos, CFA, Managing Director and Internet & Media Analyst at The Benchmark Company Format: Live Audio Call via X Spaces Date: Friday, June 5, 2026 Time: 11:00 AM ET Access: Available at https://x.com/i/spaces/1jGXggjBykdKZ?s=20 Replay: Following the call, a transcript will be available on ir.realpha.com for at least 12 months after the call is held. 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. Disclosure Information reAlpha periodically provides other information for investors on its investor relations website, ir.realpha.com, X account (https://x.com/reAlpha), LinkedIn account (linkedin.com/company/realpha-homes), and through various social media channels, including Giri Devanur’s, reAlpha’s Executive Chairman, X account (x.com/giridevanur) and LinkedIn account (linkedin.com/in/giridevanur); Mike Logozzo’s LinkedIn account (linkedin.com/in/mike-logozzo) and X account (x.com/mike_logozzo); and Thomas Kutzman’s, reAlpha’s Chief Financial Officer, X account (https://x.com/thomaskutzman) and LinkedIn account (https://www.linkedin.com/in/thomaskutzman) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Investors are encouraged to monitor all of these accounts, in addition to reAlpha’s press releases, SEC filings and public conference calls and webcasts, for updates, announcements, and relevant Company information. 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 or any other Company representatives, 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. 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
GlobeNewswire
reAlpha (NASDAQ: AIRE) Regains Compliance with Nasdaq Minimum Bid Price Requirement
DUBLIN, Ohio, May 14, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced that it received written notice (the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") on May 14, 2026, confirming that the Company has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. To regain compliance with the minimum bid price requirement, the Company's shares of common stock were required to maintain a closing bid price of $1.00 or more for at least 10 consecutive business days. The Notice confirmed that reAlpha maintained a closing bid price of at least $1.00 for 10 consecutive business days, from April 30, 2026 through May 13, 2026, thereby regaining compliance with the minimum bid price requirement. Accordingly, Nasdaq has determined that the matter is now closed. As a result, the Company’s common stock will remain listed and continue to trade on the Nasdaq Capital Market under the symbol "AIRE." 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 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 maintain compliance with applicable Nasdaq listing standards; 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; reAlpha’s ability to successfully enter new geographic markets; 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 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 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 enhance its operational efficiency, improve cross-functional coordination and support the reAlpha platform’s continued growth through the implementation of its new internal organizational structure; 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; reAlpha’s ability to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s filings with the Securities and Exchange Commission (“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: Payton Cuddy, Senior Marketing Manager media@realpha.com Investor Relations Contact: Adele Carey, SVP of Investor Relations investorrelations@realpha.com
GlobeNewswire
reAlpha Reduces Workforce by Approximately 25% and Consolidates Vendor Spend, Targeting $2 Million in Annualized Savings as AI Advancements Drive Organizational Efficiency
Restructuring is expected to reinforce return-driven spending initiative, reshore select operational functions, and enable a leaner team to leverage agentic AI tooling to reduce costs and accelerate execution. DUBLIN, Ohio, May 06, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the "Company" or "reAlpha"), an AI-powered real estate technology company, today announced a strategic restructuring that includes a reduction in workforce of approximately 25%, which includes full-time employees, consultants, temporary workers and independent contractors, and the consolidation of select vendor relationships. Together, these restructuring actions are expected to generate approximately $2 million in savings, which includes, without limitation, reduced personnel costs and third-party vendor fees (calculated on an annualized basis) as well as savings related to certain restricted stock units lapsing over the next twelve months. The strategic restructuring is part of reAlpha’s return-driven spending initiative which prioritizes capital deployment in areas where there is a clear and measurable return, as well as the rapid advancement of agentic AI tooling, which the Company believes enables smaller, focused teams to maximize output across corporate functions more effectively than a larger, headcount-dependent structure. The strategic restructuring encompasses a reduction of approximately 25% of the Company's workforce, affecting roles across marketing, technology, product, design, real estate, and mortgage; the reshoring of select operational functions previously performed outside the United States; and the replacement of certain third-party vendor contracts with AI-enabled internal tooling. The strategic restructuring was designed to extend the Company’s historical AI-powered operating goal of reducing friction internally and for the Company’s customers across brokerage, mortgage, and title. The Company expects that each member of a leaner team will be able to direct and oversee agentic AI tools to deliver greater output. "Agentic AI has changed the economics of running a company," said Mike Logozzo, Chief Executive Officer of reAlpha. "We believe that work that previously required large teams across marketing, technology, product, and design can now be executed by leaner teams leveraging AI agents — and those AI capabilities have been compounding faster every month. We have been adopting AI tools as we would rather get there proactively, on our own terms, than be forced into it reactively." Mr. Logozzo continued, "This is also more than just an efficiency story. We are reshoring select operational functions previously performed outside the United States and reducing our reliance on offshore operations and domestic third-party vendors. The result is a more centralized, more accountable team — one that can deliver consistent results to the homebuyers we serve, and reduce the friction and complexity that we believe have long defined the homebuying process." "The combination of workforce realignment and reduced vendor spend is expected to deliver approximately $2 million in savings," said Thomas Kutzman, Chief Financial Officer of reAlpha. "Return-driven spending is a new framework we have implemented to enhance our financial discipline, and this restructuring helps deliver that focus: to prioritize the deployment of capital where there is a clear and measurable return. We believe that these initiatives, combined with our improving gross margin profile and expanding transaction volume, represent a meaningful step toward the positive operating leverage our platform is designed to produce. reAlpha's strategy of disciplined organic and inorganic growth remains unchanged. We believe that this restructuring will help ensure our cost structure is aligned with the goal of accelerating revenue growth in 2026." The Company estimates that it will incur pre-tax charges in the range of $0.14 million to $0.2 million, and expects the strategic restructuring to be substantially complete by the end of the second quarter of 2026, although certain actions may extend into the third quarter of 2026 subject to applicable local legal requirements and regulatory processes in relevant jurisdictions. The estimated annualized cost savings are intended to represent a meaningful step in improving the Company's operating efficiency and pursuing a path to profitability. 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, and statements regarding reAlpha’s future expectations, plans and prospects, expected cost-savings from the strategic restructuring and related workforce reduction and consolidation of third-party vendors, and the expecting timing for incurring costs associated with the strategic restructuring and related actions; and the expected timing of implementing and completing the strategic restructuring including the workforce reduction and consolidation of third-party vendors, 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: the risk that reAlpha may not be able to implement the strategic restructuring and the related actions as currently anticipated or within the timing currently anticipated; the impact of the strategic restructuring and related actions on reAlpha’s business, the risk that reAlpha’s return-driven spending initiative may not be successful; unanticipated costs not currently contemplated that may occur as a result of the strategic restructuring; 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 generate additional sales or revenue from having access to, or obtaining, additional U.S. state’s brokerage licenses; 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 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; 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; 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
GlobeNewswire
reAlpha (Nasdaq: AIRE) CEO and CFO to Present Company's Vertically Integrated Homebuying Vision at Two New York Conferences
DUBLIN, Ohio, May 01, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company, today announced Mike Logozzo, Chief Executive Officer, and Thomas Kutzman, Chief Financial Officer, will present at The Market Movers Investor Summit and the D. Boral Global Conference. Management will discuss Alpha's progress in executing its strategy to build the leading consumer-aligned, AI-driven real estate platform, including recent momentum in transaction growth volume, geographic expansion, and the integration of its acquired businesses. “We're building an integrated platform bringing together real estate, mortgage, and title. We are uniquely positioned to transform the homebuying journey through technology, data, and integrated services. These conferences are an opportunity to share our progress directly with investors,” said Mike Logozzo, Chief Executive Officer. Market Movers Investor Summit Date: May 5, 2026  Location: 48 Wall Street, New York City  Company Presentation: 1:00 pm ET, May 5, 2026  D. Boral Global Conference  Date: May 7, 2026  Location: The Plaza Hotel, New York City  One-on-one investor meetings  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. Media Contact: Cristol Rippe, Chief Marketing Officer media@realpha.com Investor Relations Contact: Adele Carey, SVP of Investor Relations InvestorRelations@reAlpha.com
GlobeNewswire
reAlpha (NASDAQ: AIRE) Announces AiChat Launch of Shopify Conversational Commerce Integration and AI Ticketing for eCommerce
Shopify-integrated solution enables in-chat purchasing and AI-powered customer support within a unified conversational workflow DUBLIN, Ohio, April 30, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced that its AI-powered conversational platform subsidiary, AiChat Pte. Ltd. (“AiChat”), has launched conversational commerce and AI ticketing capabilities for eCommerce brands. The platform is designed to enable businesses to manage product discovery, customer interaction, transaction, and post-purchase support within a single conversational interface, reflecting a broader shift toward interaction-driven commerce models. AiChat’s capabilities build on its recognized expertise in AI-driven customer engagement, having received two Silver awards at the MARKies Awards Singapore 2026 for its work in artificial intelligence and marketing automation. Conversational Commerce and Marketing Automation AiChat’s platform enables businesses to execute the full purchase journey directly within messaging and conversational channels, allowing customers to discover products, receive recommendations, and complete transactions without leaving the interaction. Through direct integration with Shopify, AiChat connects conversational interfaces directly to a business’s existing commerce engine, enabling real-time access to product, inventory, and order data within customer interactions. Within this environment, the platform introduces an AI-assisted co-pilot that supports human sales representatives by surfacing relevant product recommendations during live conversations, supporting cross-sell and upsell interactions. Product catalogs and inventory are synchronized automatically, allowing businesses to maintain consistency across systems while providing customers with accurate, real-time availability. Order data is also integrated into the conversational layer, enabling the system to retrieve order status and respond to customer inquiries efficiently during post-purchase interactions. This approach allows commerce workflows to operate natively within messaging environments, where customer engagement is increasingly taking place, rather than requiring transitions across multiple digital touchpoints. Industry research indicates that websites with conversational AI see 23% higher conversion rates overall, with shoppers who engage with AI chat converting at 12.3% compared with 3.1% for non-engaged visitors, reinforcing the growing commercial relevance of conversation-driven shopping experiences.[1] “We are seeing a fundamental shift in how commerce happens, moving from page-based journeys to conversation-driven interactions,” said Kester Poh, Chief Executive Officer of AiChat. “We believe many brands operate centralized eCommerce infrastructure while serving customers across multiple channels. Connecting that commerce engine into conversational workflows is what makes in-chat commerce practical for both customers and sales teams." Customer Support & AI Ticketing for eCommerce AiChat’s platform also includes integrated customer support and AI-powered ticketing capabilities that allow businesses to manage service interactions within the same conversational environment. Conversations that require follow-up can be converted into structured tickets, assigned to agents, and tracked through resolution. By maintaining continuity between engagement, transaction, and support, businesses can reduce fragmentation across systems and improve the efficiency of customer service operations, while ensuring that context is preserved throughout the interaction. AI is expected to resolve up to 80% of common customer service issues without human intervention, underscoring the growing role of AI-powered ticketing systems in modern eCommerce operations.[2] “We believe AI is fundamentally changing how businesses engage with customers, shifting interactions from fragmented touchpoints to continuous, conversation-driven experiences,” said reAlpha’s Chief Technology Officer, Vijay Rathna. “With these capabilities, businesses can connect marketing, commerce, and support within a single workflow, which may enable more personalized engagement, faster resolution, and more efficient operations across the customer lifecycle.” AiChat’s capabilities align with reAlpha’s broader strategy of using AI to simplify complex consumer transactions, including homebuying experiences that require coordinated engagement, service, and support. [1] 30 Conversational Commerce Statistics for Ecommerce, Envive AI Blog, https://www.envive.ai/post/conversational-commerce-statistics [2] Gartner Predicts Agentic AI Will Autonomously Resolve 80 Percent of Common Customer Service Issues Without Human Intervention by 2029, Gartner Newsroom, https://www.gartner.com/en/newsroom/press-releases/2025-03-05-gartner-predicts-agentic-ai-will-autonomously-resolve-80-percent-of-common-customer-service-issues-without-human-intervention-by-20290 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. About AiChat Pte. Ltd AiChat Pte. Ltd., a subsidiary of reAlpha, is a Singapore-based company that develops AI-powered conversational customer experience solutions. Its platform leverages artificial intelligence to provide businesses with intelligent chatbots, voice agents, and automation tools that improve customer interactions and operational efficiency. For more information about AiChat, visit www.aichat.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 Technology Officer, Vijay Rathna, and AiChat’s Chief Executive Officer, Kester Poh, 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. 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. 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; reAlpha’s ability to commercialize its developing AI-based technologies; whether reAlpha’s technology and products, including that of its subsidiaries, will be accepted and adopted by its customers and intended users; reAlpha’s ability to integrate AiChat’s AI technology into its existing business and the anticipated demand for AiChat’s AI technology; reAlpha’s ability to successfully enter new geographic markets; reAlpha’s ability to obtain the necessary regulatory and legal approvals to expand into additional U.S. states and maintain, or obtain, brokerage licenses in such states; reAlpha’s ability to generate additional sales or revenue from having access to, or obtaining, additional U.S. states brokerage licenses; reAlpha’s ability to enhance its, and its subsidiaries’, loan processing efficiency by leveraging its AI-powered platform and overall resources; AiChat’s ability to provide personalized customer service solutions through its services and offerings; the inability to maintain and strengthen reAlpha’s brand and reputation; reAlpha’s ability to scale its operational capabilities to expand into additional geographic markets; the potential loss of key employees of its acquired companies; reAlpha’s 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; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s SEC filings. 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
GlobeNewswire
reAlpha (NASDAQ: AIRE) Announces 1-for-25 Reverse Stock Split to be Effective on April 30, 2026
1-for-25 Reverse Stock Split Intended to Support Compliance with Nasdaq’s Minimum Bid Price Requirement for Continued Listing DUBLIN, Ohio, April 28, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced a 1-for-25 reverse stock split of its outstanding common stock. The reverse stock split will become effective at 12:01 a.m. ET on April 30, 2026. The common stock is expected to begin trading on a split-adjusted basis on the Nasdaq Capital Market (“Nasdaq”) under the same symbol “AIRE” when the market opens on April 30, 2026, with the new CUSIP number 75607T204. The reverse stock split was approved by the Company’s stockholders at its annual meeting of stockholders held on October 8, 2025. The reverse stock split is intended to increase the per share trading price of the Company’s common stock to regain compliance with the $1.00 minimum bid price requirement for continued listing on Nasdaq. The reverse stock split will reduce the number of outstanding shares of the Company’s common stock from approximately 134.12 million shares pre-reverse split to approximately 5.36 million shares post-reverse split. The number of authorized shares of common stock and the par value per share will remain unchanged. As a result of the reverse stock split, every 25 shares of the Company’s pre-reverse split common stock will be combined and reclassified into one share of common stock. Proportionate voting rights and other rights of such holders will not be affected by the reverse stock split. No fractional shares will be issued in connection with the reverse stock split, and all such fractional interests held by stockholders of record will be rounded up to the nearest whole number of shares of common stock. In accordance with the terms of the Company’s outstanding preferred stock, warrants, equity incentive plans and applicable award agreements, the number of shares underlying outstanding preferred stock, warrants and equity awards will be proportionately adjusted, and any conversion and exercise prices will be proportionately adjusted, to reflect the reverse stock split. The Company’s transfer agent, VStock Transfer, LLC, is acting as exchange agent for the reverse stock split and will send instructions to stockholders of record regarding the exchange of certificates for common stock, if any, for uncertificated shares of common stock. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to the brokers’ particular processes, and generally will not be required to take any action in connection with the reverse stock split. Additional information about the reverse stock split can be found in the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission (the “SEC”) on August 25, 2025 (the “Proxy Statement”). The Proxy Statement is available at www.sec.gov or at the Company’s website at www.realpha.com. Additional information regarding this reverse stock split will be included in a Current Report on Form 8-K to be filed by the Company with the SEC on or about the date hereof. Forward-Looking Statements This press release may contain forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, reAlpha’s expectations regarding anticipated compliance with Nasdaq’s minimum bid price rules. You can find many (but not all) of these statements by looking for words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “would,” “should,” “could,” “may,” “will” or other similar expressions. While management has based any forward-looking statements included in this press release on its current expectations on reAlpha’s strategy, plans, intentions, performance, or future occurrences or results, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of reAlpha’s control, that could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not limited to, reAlpha’s ability to regain compliance with Nasdaq’s minimum bid price rule; 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 maintain compliance with all Nasdaq listing rules; 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 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® 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. 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. Media Contact: Cristol Rippe, Chief Marketing Officer media@realpha.com Investor Relations Contact: Adele Carey, VP of Investor Relations InvestorRelations@reAlpha.com
GlobeNewswire
reAlpha (Nasdaq: AIRE) Reports First-Quarter 2026 Financial Results
Platform enters spring homebuying season with broader service coverage, a newly launched Homebuying Hub, and Total Transaction Volume that more than doubled year-over-year 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® 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, 2026,  December 31, 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, 2026  March 31, 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 Three Months Ended  For the Three Months Ended    March 31, 2026  March 31, 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.
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