Core Insights - reAlpha Tech Corp. has acquired Prevu Inc., expanding its real estate footprint into 11 new markets and enhancing its technology-driven platform [1][3] - Prevu is a digital homebuying platform with a rebate-oriented brokerage model, having completed over 1,000 transactions and maintaining a 5-star Google rating [2][4] - The acquisition aims to unify realty and mortgage capabilities, supporting a broader national footprint and enhancing operational capabilities [1][3] Company Overview - reAlpha Tech Corp. is an AI-powered real estate technology company focused on transforming the U.S. real estate services market through an end-to-end platform that integrates brokerage, mortgage, and title services [5] - Prevu operates in major metropolitan markets across 12 states and Washington, D.C., providing a digital platform designed to empower homebuyers with greater control and transparency [4] Strategic Implications - The integration of Prevu's brokerage operations with reAlpha's existing real estate services is expected to accelerate reAlpha's long-term platform strategy and enhance operational efficiency [3] - Both companies share a commitment to modernizing real estate through technology, which is anticipated to create significant opportunities for scaling and delivering value to homebuyers and agents [3][2]

Financial Data and Key Metrics Changes - The company reported three consecutive quarters of revenue growth, with Q1 revenue exceeding the total of the previous year, Q2 surpassing Q1, and Q3 exceeding Q2 [11] - The balance sheet improved with $7.5 million raised in equity offerings and $8.3 million in warrants exercised, leading to the company being debt-free [11] - The company regained compliance with NASDAQ regarding the $35 million minimum market value [11] Business Line Data and Key Metrics Changes - The company expanded its service availability, launching Realty in Georgia and Mortgage in Utah and Nevada [12] - Significant improvements were noted with a 90% increase in lead engagement, a 200% increase in appointments for home viewings, and a 140% increase in loan applications due to new AI technologies [13] Market Data and Key Metrics Changes - The company is focusing on the top 10 states for residential real estate transactions, which account for over 60% of the market [16] - The company aims to synchronize its Realty, Mortgage, and Title services across these states to enhance customer experience [16][18] Company Strategy and Development Direction - The company aims to build a platform that enables home buyers through technology, addressing the challenges posed by high home prices and interest rates [10] - Future plans include expanding into additional services such as moving and utility setup, while focusing on core offerings [21][22] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of the capital raised for growth and the transition from attracting traders to long-term investors [19][25][26] - The company is committed to building a solid foundation for future growth, likening its development to constructing a skyscraper [39][40] Other Important Information - The company has integrated an AI company, Naamche, into its operations to enhance its technology capabilities [14] - Management acknowledged the complexity of the home buying process and the need for a cohesive customer experience [24] Q&A Session Summary Question: What is the overall plan for expansion to other states? - The company is focusing on the top 10 states for residential real estate volume to synchronize its services [16] Question: Which strategic developments are most important? - The capital raised is deemed the most strategically important for providing runway for growth [19] Question: How is customer feedback shaping the product roadmap? - Customer feedback indicates a desire for synchronized services across states and a cohesive process [23] Question: What innovations are planned for 2026? - Continued development of AI technologies for both mortgage and real estate services is planned [27] Question: What specific problem does the business solve for its customers? - The company aims to simplify the home buying process and offer rebates to make it more affordable [30] Question: Who are the main competitors? - Competitors include Rocket and Zillow, but the company believes it is creating a new category in the market [31] Question: What is the outlook on hiring additional mortgage brokers? - The company plans to hire more loan officers to support organic growth [47]

Financial Data and Key Metrics Changes - The company reported three consecutive quarters of revenue growth, with Q1 revenue exceeding the total of the previous year, Q2 surpassing Q1, and Q3 exceeding Q2 [11] - The company raised $7.5 million in equity offerings and had 8.3 million warrants exercised, using much of this to repay debt, resulting in a debt-free status [11] - The company regained compliance with NASDAQ regarding the $35 million minimum market value [11] Business Line Data and Key Metrics Changes - The company expanded its service availability, launching Realty in Georgia and mortgage services in Utah and Nevada [12] - The introduction of AI technologies led to a 90% increase in lead engagement, a 200% increase in appointments for home viewings, and a 140% increase in loan applications [13] Market Data and Key Metrics Changes - The company is focusing on the top 10 states for residential real estate transactions, which account for over 60% of the market [16] - The company aims to synchronize its Realty, Mortgage, and Title services across these states to enhance customer value [17][18] Company Strategy and Development Direction - The company aims to build a platform that enables home buyers through technology, addressing the challenges posed by high home prices and interest rates [10] - The focus is on integrating services to create a seamless customer experience, reducing friction in the home buying process [24] - The company is exploring partnerships and acquisitions to enhance its core offerings and expand its service capabilities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and the importance of the capital raised for future expansion [19] - The company is transitioning from attracting traders to long-term investors, emphasizing the importance of fundamentals and stability [25][26] - Management acknowledged the complexities of navigating the public company landscape but emphasized a commitment to building a solid foundation for future growth [39][40] Other Important Information - The company is focused on serving the veteran community through specialized mortgage services [35] - Management indicated a desire to eventually expand outside the U.S. but emphasized the need to solidify its position domestically first [42] Q&A Session Summary Question: What is the overall plan for reAlpha's expansion to other states? - The company is focusing on the top 10 states for residential real estate volume to synchronize its services [16] Question: Which strategic development is considered most important? - The capital raised is viewed as the most strategically important development, providing the company with growth runway [19] Question: How is customer feedback shaping product improvements? - Customer feedback indicates a desire for synchronized services across states and a cohesive process for home buying [23] Question: What innovations are planned for reAlpha in 2026? - The company plans to continue developing AI technologies and integrating acquired companies into its product offerings [27] Question: What specific problem does the business solve for its customers? - The company addresses the challenges of high home prices and interest rates by offering a streamlined home buying process with potential rebates [29] Question: Who are the main competitors? - Competitors include Rocket and Zillow, but the company believes it is creating a unique category by integrating Realty, Mortgage, and Title services [31] Question: What is the outlook on hiring additional mortgage brokers? - The company plans to hire more loan officers to support organic growth, focusing on those who can contribute to existing teams [47]

Financial Data and Key Metrics Changes - The company reported three consecutive quarters of revenue growth, with Q1 revenue exceeding the total of the previous year, Q2 surpassing Q1, and Q3 exceeding Q2 [11] - The balance sheet improved with a $7.5 million equity offering and 8.3 million warrants exercised, leading to the company becoming debt-free [11][12] - The company regained compliance with NASDAQ regarding the $35 million minimum market value [11] Business Line Data and Key Metrics Changes - The company expanded its service availability, launching Realty in Georgia and mortgage services in Utah and Nevada [12] - Significant improvements were noted in lead engagement (90% increase), home viewing appointments (200% increase), and loan applications (140% increase) due to new AI technologies [13] Market Data and Key Metrics Changes - The company is focusing on the top 10 states for residential real estate transactions, which account for over 60% of the market [18] Company Strategy and Development Direction - The company aims to synchronize its Realty, Mortgage, and Title services to enhance customer experience and provide rebates [19] - Future plans include expanding into additional states and potentially offering one-stop shopping for related services like moving and utility setup [22] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of the capital raised for growth and the need to focus on core products while exploring partnerships for additional services [20][22] - The company is transitioning from attracting traders to long-term investors, driven by consistent quarter-on-quarter growth [26][27] Other Important Information - The company is integrating acquired companies into a unified platform to streamline operations and enhance customer experience [15][29] - Management highlighted the complexity of the home buying process and the need for a solid foundation to support future growth [40] Q&A Session Summary Question: What is the overall plan for expansion to other states? - The company is focusing on the top 10 states for residential real estate volume to synchronize its services [17] Question: Which strategic developments are most important? - The capital raised is deemed the most strategically important for providing growth runway [20] Question: How is customer feedback shaping the product roadmap? - Customer feedback indicates a desire for synchronized services across states and a cohesive process [24] Question: What innovations are planned for 2026? - Continued development of AI technologies for both mortgage and real estate services is planned [29] Question: What specific problem does the business solve for its customers? - The company addresses the challenges of high home prices and interest rates by offering a streamlined home buying process with potential rebates [31] Question: Who are the main competitors? - Major competitors include Rocket and Zillow, but the company aims to create a unique home buying platform that integrates Realty, Mortgage, and Title services [33] Question: What is the outlook on hiring additional mortgage brokers? - The company plans to hire more loan officers to support growth, focusing on quality over quantity [48]

DUBLIN, Ohio, Nov. 18, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), an AI-powered real estate technology company, today announced that it has received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) granting the Company an additional 180-day extension, until May 18, 2026, to regain compliance with the Nasdaq Capital Market’s minimum bid price requirement under Listing Rule 5550(a)(2). This notice has no immediate effect on the listing or trading of reAlpha’s ...

Core Insights - reAlpha Tech Corp. has launched an AI-powered Engagement Assistant aimed at enhancing mortgage operations by improving lead qualification and appointment booking processes [1][2][3] Company Overview - reAlpha Tech Corp. is an AI-driven real estate technology company focused on transforming the U.S. real estate services market through an integrated platform that includes brokerage, mortgage, and title services [7] Performance Metrics - The Engagement Assistant has demonstrated significant improvements: over 90% increase in borrower lead engagement, more than 200% improvement in appointment conversion, and over 140% increase in completed applications compared to manual processes [2][4][10] System Functionality - The internal system integrates with reAlpha's CRM, featuring a customer support assistant for initial inquiries, a loan application assistant for guiding borrowers, and an appointment booking assistant for scheduling consultations [3][5] Market Insights - A 2024 consumer survey indicates that the first professional to engage a motivated borrower is likely to secure the business, with 78% of customers choosing the first company to respond to their inquiry [4] Strategic Goals - The Engagement Assistant is designed to automate early interactions, allowing loan officers to focus on building relationships and guiding borrowers through the application process [6][5] Future Outlook - The system is expected to evolve with new capabilities as reAlpha expands, enhancing operational efficiency and reducing administrative burdens for loan officers [6]

Core Insights - reAlpha Tech Corp. will host a live video call titled "AIRE Time With Mike" on November 21, 2025, at 12:00 PM EST to discuss Q3 2025 earnings highlights and business updates [1][6] - The event will feature Mike Logozzo, the CEO, who aims to build trust with retail shareholders through transparency and direct engagement [2] Company Overview - reAlpha Tech Corp. is an AI-powered real estate technology company focused on transforming the U.S. real estate services market with an end-to-end platform that integrates brokerage, mortgage, and title services [5] - The company employs a strategic, acquisition-driven growth model and proprietary AI infrastructure to create a vertically integrated ecosystem for homeownership [5] Event Details - The live video call will include a Q&A segment where participants can submit questions in real-time via X [6] - A replay of the call will be available on the investor relations website for at least 12 months after the event [6]

Financial Performance - Revenue increased 326% to $1,445,137 in Q3 2025, compared to $339,227 in Q3 2024[3] - Gross profit was $749,580 in Q3 2025, compared to $225,866 in Q3 2024, with a gross profit margin decline from 67% to 52% year-over-year[3] - Adjusted EBITDA was approximately $(2.2) million in Q3 2025, compared to approximately $(1.3) million in Q3 2024[3] - Net loss was approximately $5.8 million in Q3 2025, compared to a net loss of approximately $2.1 million in Q3 2024[3] - Operating loss for Q3 2025 was $(4,948,801), compared to $(1,625,190) in Q3 2024, indicating a deterioration in operational performance[13] - Net loss attributable to controlling interests for the nine months ended September 30, 2025, was $(12,744,638), compared to $(4,995,857) in the same period of 2024, reflecting an increase of 155%[13] - The company reported a basic loss per share of $(0.07) for Q3 2025, compared to $(0.05) in Q3 2024[14] - For the three months ended September 30, 2025, the net loss was $5,781,324 compared to a net loss of $2,098,574 for the same period in 2024, representing an increase of 175%[20] - Adjusted EBITDA for the three months ended September 30, 2025, was $(2,208,557), a decline from $(1,253,907) in the same period of 2024, indicating a worsening performance[20] - The adjusted EBITDA for the nine months ended September 30, 2025, was $(6,467,579), worsening from $(3,598,519) in the same period of 2024[20] Cash and Financing - Cash was approximately $9.3 million as of September 30, 2025, up from $7.0 million at the end of Q3 2024[3] - Cash used in operating activities for the nine months ended September 30, 2025, was $(8,847,162), compared to $(3,806,090) in 2024, indicating increased cash outflow[16] - Net cash provided by financing activities in the nine months ended September 30, 2025, was $15,051,695, compared to $4,794,866 in 2024, showing a substantial increase in financing[16] - The company experienced a net increase in cash of $6,156,960 for the nine months ended September 30, 2025, compared to $620,507 in 2024[16] Operational Developments - reAlpha launched an upgraded AI-powered Loan Officer Assistant to enhance automation in mortgage operations[5] - The company raised approximately $7.5 million from equity offerings and fully repaid its high-cost secured debt[5] - reAlpha expanded its homebuying platform into Georgia and mortgage operations into Utah and Nevada during Q3 2025[5] - The GTG Financial acquisition was rescinded, with its results recognized only through August 21, 2025[5] - reAlpha regained compliance with Nasdaq's minimum market value requirement, closing above the $35 million threshold for ten consecutive business days[5] Expense and Financial Burdens - The company reported a total other expense of $832,523 for Q3 2025, compared to $408,954 in Q3 2024, indicating increased financial burdens[13] - Non-cash marketing expenses for the three months ended September 30, 2025, amounted to $2,079,874, with no such expenses reported in the same period of 2024[20] - Interest expense for the nine months ended September 30, 2025, totaled $388,741, compared to $131,723 for the same period in 2024, reflecting a significant increase of 194%[20] - The company incurred acquisition-related expenses of $87,352 for the nine months ended September 30, 2025, down from $363,426 in the same period of 2024[20] - The amortization of loan discounts and origination fees for the three months ended September 30, 2025, was $303,122, a substantial increase from $36,250 in the same period of 2024[20] - The company reported a loss on extinguishment of debt of $368,769 for the three months ended September 30, 2025, with no such loss reported in the same period of 2024[20] - The share-based compensation for the nine months ended September 30, 2025, was $557,999, up from $207,454 in the same period of 2024, indicating an increase of 169%[20]

Core Insights - reAlpha Tech Corp. reported significant financial growth in Q3 2025, with revenue increasing by 326% to $1,445,137 compared to $339,227 in Q3 2024, driven by mortgage brokerage transactions and the integration of AI technology [4][3] - The company is focused on expanding its real estate and mortgage operations, launching services in new states and enhancing its AI capabilities to improve customer experience [5][6] Financial Highlights - Revenue for Q3 2025 reached $1,445,137, a 326% increase from $339,227 in Q3 2024 [4] - Gross profit was $749,580 in Q3 2025, up from $225,866 in Q3 2024, although gross profit margin declined from 67% to 52% due to a higher contribution from lower-margin loan brokerage services [4] - Cash reserves increased to approximately $9.3 million at the end of Q3 2025, compared to $7.0 million at the end of Q3 2024 [4] - The net loss for Q3 2025 was approximately $5.8 million, compared to a net loss of approximately $2.1 million in Q3 2024 [4] Business Highlights - The company launched an upgraded AI-powered Loan Officer Assistant to enhance automation in mortgage operations, allowing loan officers to focus more on customer interactions [5] - reAlpha expanded its homebuying platform into Georgia and its mortgage operations into Utah and Nevada, enhancing its national presence [6] - The acquisition of GTG Financial was rescinded, with its results only recognized through August 21, 2025 [5] Operational Developments - The company implemented a unified customer communication framework and a new brand identity to ensure consistency across all customer interactions [9] - reAlpha regained compliance with Nasdaq's minimum market value requirement, closing above the $35 million threshold for ten consecutive business days [9]

Business Model and Strategy - The reAlpha platform aims to simplify the homebuying process through AI-driven tools, currently available in Florida, with plans for nationwide expansion by the end of 2026[144][145][156] - Homebuyers can receive up to 75% commission rebate on brokerage fees when using all three services (realty, mortgage brokering, and digital title and escrow) through the reAlpha platform[154] - The operational model has shifted from asset-heavy short-term rental operations to a technology-focused approach, leading to the discontinuation of the rental business segment[149][151] - The technology services segment is the only reportable segment following the discontinuation of the rental business, focusing on AI-based products for various industries[151][152] - The company plans to continue acquiring complementary businesses to enhance the reAlpha platform and expand service offerings[147][156] Financial Performance - Revenue for the three months ended September 30, 2025, was $1,445,137, an increase of approximately 326% compared to $339,227 for the same period in 2024[183] - Cost of revenue increased to $695,557 for the three months ended September 30, 2025, reflecting a 514% increase from $113,361 in the same period in 2024[184] - Operating expenses rose to $5,698,381 for the three months ended September 30, 2025, representing a 208% increase compared to $1,851,056 for the same period in 2024[186] - Gross profit for the three months ended September 30, 2025, was $749,580, compared to $225,866 for the same period in 2024[183] - Revenue for the nine months ended September 30, 2025, was $3,623,153, a 759% increase from $422,006 in the same period in 2024[188] - Cost of revenue increased to $1,733,441 for the nine months ended September 30, 2025, representing a 1141% increase from $139,687 in 2024[189] - Operating expenses rose to $13,301,152 for the nine months ended September 30, 2025, an increase of approximately 216% from $4,202,728 in 2024[190] - The company reported a net loss of $12,741,692 for the nine months ended September 30, 2025, compared to a net loss of $4,995,931 in the same period in 2024[194] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(6,467,579), compared to $(3,598,519) in 2024[194] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were approximately $9.3 million, up from $3.1 million as of December 31, 2024[196] - The company raised gross proceeds of $2.0 million from the 2025 Public Offering on July 18, 2025, with additional proceeds of approximately $3.5 million from warrant exercises[198] - An aggregate of $5.0 million in gross proceeds was raised from the Registered Offering and concurrent Private Placement on July 22, 2025, with additional proceeds of approximately $4.5 million from warrant exercises[199] - For the nine months ended September 30, 2025, net cash used in operating activities was approximately $8.8 million, an increase from approximately $3.8 million for the same period in 2024, primarily due to higher operating expenses related to acquisitions[208] - Net cash provided by financing activities for the nine months ended September 30, 2025, was approximately $15.0 million, compared to approximately $4.8 million for the same period in 2024, driven by capital raised through various programs and warrant exercises[210] - The company fully repaid the outstanding balance under the Note in full, amounting to approximately $4.46 million, improving liquidity by eliminating adverse redemption conditions[203] - The company may require additional financing in the future to support capital expenditures, research and development, and market expansion, which could include equity or debt financing[204] Compliance and Legal Matters - The company is currently under a compliance period with Nasdaq to regain a minimum bid price of $1 per share by November 17, 2025[157][161] - The company has been given until November 17, 2025, to regain compliance with Nasdaq's Minimum Bid Price Requirement, following a notification received on May 20, 2025[227] - The company faces potential delisting from Nasdaq, which could adversely affect the liquidity of its common stock and result in significant material adverse consequences[232] - The company is currently involved in ongoing litigation regarding the GEM Warrants, which may materially impact financial statements and cash flows if not resolved favorably[202] - The company is permanently barred from raising capital in Massachusetts due to a Consent Order, limiting its ability to sell securities in that state[235] Market Conditions - Financial results are highly dependent on macroeconomic conditions and U.S. residential real estate market conditions, which are seasonal and cyclical[236] - During periods of high interest rates, refinancing activity and home purchase transactions generally decline, negatively impacting demand for the company's real estate services[238] - The company may experience significant fluctuations in revenues due to the cyclical nature of loan origination activity and broader real estate market conditions[239] - The residential real estate and mortgage markets are subject to seasonal trends, affecting transaction volumes and demand for services[240] Corporate Governance and Operations - The company continues to comply with SEC regulations as evidenced by the filing of multiple forms and agreements[259] - The executive employment agreements for key personnel were amended, reflecting potential strategic shifts in management[259] - The report was signed by the CEO and CFO, confirming the accuracy of the financial disclosures[263] - The company has incurred significant legal and professional fees totaling approximately $2.7 million as part of its operational expenses[208] - The company has not reported any significant new product developments or market expansions in this quarter[256] - There were no acquisitions or mergers disclosed during this reporting period[256] - No unregistered sales of equity securities occurred during the fiscal quarter ended September 30, 2025[252] - There were no defaults upon senior securities reported[253] - No mine safety disclosures were applicable for the company[254] - No changes were made to trading arrangements by the company's directors or officers during the fiscal quarter[255] - The company filed various exhibits including a Rescission Certificate and amended bylaws, indicating ongoing corporate governance activities[257][258]