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into Georgia and mortgage operations into Utah and Nevada during Q3 2025[5] - The GTG Financial acquisition was rescinded, with its results recognized only through August 21, 2025[5] - reAlpha regained compliance with Nasdaq's minimum market value requirement, closing above the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]
reAlpha Tech (AIRE) - 2026 Q2 - Quarterly Results