Full Year Financial Highlights
(All figures are approximate and compared to FY 2024 unless otherwise stated)
- Revenue increased 376% to
$4.5 million , compared to$0.9 million in FY 2024. The increase was driven primarily by increased revenue from mortgage brokerage transactions from reAlpha Mortgage, subscription fees from AiChat’s AI conversational technologies, and revenues generated from Prevu’s real estate services following its acquisition inNovember 2025 . - Gross profit increased to
$2.5 million , compared to$0.6 million in FY 2024. Gross profit margin decreased from 68% to 54%, a decrease of 14 percentage points, primarily reflecting revenue mix and operating costs associated with scaling brokerage and mortgage services. - Cash and cash equivalents increased 149% to
$7.8 million as ofDecember 31, 2025 , compared to$3.1 million as ofDecember 31, 2024 . - Adjusted EBITDA was
$(13.7) million , reflecting strategic investments across the organization to support platform scaling and long-term growth. Key drivers included the expansion of the Company's leadership team and workforce to support multi-state operations; increased marketing and brand investment, including the utilization of the Mercurius Media marketing credits for branding and promotional campaigns; professional, legal, and integration costs associated with acquisition and capital markets activity; continued investment in AI capabilities, enterprise technology tools, and platform infrastructure; the buildout of mortgage operations leadership and real estate advisory resources; and the impact of operating expenses from businesses acquired during the year. - Total Transaction Volume increased 203% to
$116.1 million , compared to$38.7 million in FY 2024. Total Transaction Volume reflects the aggregate dollar value of transactions generated across brokerage, mortgage, and title services during the trailing twelve month period. - During FY 2025, the Company strengthened its capital structure, generating
$17.3 million in proceeds from the exercise of warrants. If exercised, the remainder of the warrants would generate an additional$4.6 million .
“2025 was a year of strong growth and balance sheet progress,” said
Fourth Quarter Financial Highlights
(All figures are approximate and compared to Q4 2024 unless otherwise stated; quarterly figures are unaudited)
- Revenue increased 70% year over year to
$0.9 million , compared to$0.5 million in the Q4 2024, driven primarily by increased revenue from mortgage brokerage transactions, subscription fees from AiChat’s AI conversational technologies, and revenues generated from Prevu’s realty services following its acquisition. - Gross profit increased to
$0.6 million , up from$0.4 million in Q4 2024. Gross margin decreased from 69% to 63%, a decrease of 6 percentage points, primarily reflecting a higher contribution from real estate and mortgage operations, which carry lower gross margins due to higher direct cost of services compared to AiChat's AI conversational technology services. - Cash and cash equivalents ended the quarter at approximately
$7.8 million , compared to$3.1 million in Q4 2024, reflecting strengthened liquidity following capital raises and warrant exercises during FY 2025. - Adjusted EBITDA was
$(3.8) million , compared to$(2.0) million in Q4 2024, primarily reflecting the absorption of operating expenses from businesses acquired during the year, use of Mercurius Media marketing credits, continued investment in leadership and workforce expansion, and increased technology spend to support platform growth. - Net loss was
$(4.8) million , compared to$(21.0) million in Q4 2024.
Business Highlights
- Acquired Prevu and signed a definitive agreement to acquire InstaMortgage to deepen vertical integration. Prevu expanded brokerage operations across 12 states plus
Washington, D.C. ; the proposed InstaMortgage transaction, if consummated, is intended to add direct mortgage lending capabilities and further reduce friction across the homebuying journey. - Expanded licensed footprint across 35 states and
Washington, D.C. , strengthening the Company’s ability to capture multiple revenue streams within a single homebuying transaction. reAlpha holds real estate brokerage licenses in 13 states andWashington, D.C. , mortgage brokerage licenses in 31 states, and title agency licenses in 3 states. While full three-service integration is currently active inFlorida andVirginia , the broader licensed footprint creates a foundation to systematically expand platform adoption and increase revenue capture per transaction over time. - Advanced reAlpha’s AI-enabled homebuying experience with Claire and proprietary AI infrastructure. Claire is the Company’s customer-facing digital homebuying assistant, complemented by licensed professionals; internal assistants including the AI Loan Officer Assistant and AI Engagement Agent are designed to automate portions of intake, scheduling, document workflows, and borrower communication to improve execution speed and reduce manual effort.
- Strengthened the balance sheet by raising capital through equity offerings, warrant exercises and at-the-market offering sales, and eliminating secured parent-level debt. During fiscal 2025, the Company raised approximately
$25.5 million in gross proceeds through these transactions and repaid the secured promissory note issued to Streeterville. As a result, secured parent-level debt was eliminated and financial flexibility improved. - Unified mortgage operations under the reAlpha Mortgage brand and aligned CRM systems across brokerage and mortgage operations. During 2025, the Company unified mortgage operations under a single brand and worked to align customer communication and workflow management across brokerage and mortgage functions to support a more coordinated end-to-end platform experience.
- Simplified the customer rebate program in
mid-January 2026 to improve clarity and transparency. Under the current commission rebate structure, eligible homebuyers can receive a rebate of up to 1.0% of the home purchase price when using realty services and an additional rebate of up to 0.5% when bundling mortgage brokering services with realty services, subject to terms and conditions. The rebate is paid as a credit toward closing costs and reflected on the settlement statement at closing.
“I’m proud of how our team executed in 2025. We did not just grow revenue, we expanded the platform, integrated brokerage and mortgage more tightly, and strengthened the operating foundation of the business,” said
Fiscal Year 2025 Earnings Conference Call
reAlpha will host a live X Spaces event to discuss its fourth quarter and full year 2025 financial results and outlook on
The live audio event will be open to the public and accessible at https://x.com/i/spaces/1AKEmOvraZlKL via the Company’s official X account. Participants are encouraged to join the event a few minutes prior to the scheduled start time. A replay of the discussion will be available following the conclusion of the event.
Additional materials, if any, will be posted in the “Events” section of the Company’s Investor Relations website at ir.realpha.com.
About
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,
Media Contact:
Investor Relations Contact:
Consolidated Balance Sheet For the Years Ended | |||||||||||||
2025 | 2024 | ||||||||||||
| ASSETS | |||||||||||||
| Current Assets | |||||||||||||
| Cash | $ | 7,783,529 | 3,123,530 | ||||||||||
| Accounts receivable, net | 68,148 | 182,425 | |||||||||||
| Receivable from related parties | - | 12,873 | |||||||||||
| Prepaid expenses | 961,411 | 180,158 | |||||||||||
| Current assets of discontinued operations | - | 56,931 | |||||||||||
| Other current assets | 362,293 | 487,181 | |||||||||||
| Escrow deposit | 600,000 | - | |||||||||||
| Total current assets | $ | 9,775,381 | 4,043,098 | ||||||||||
| Property and Equipment, at cost | |||||||||||||
| Property and equipment, net | $ | 64,626 | 102,638 | ||||||||||
| Other Assets | |||||||||||||
| Investments | 111,646 | 215,000 | |||||||||||
| Other long-term assets | - | 31,250 | |||||||||||
| Intangible assets, net | 4,306,553 | 3,285,406 | |||||||||||
| 7,459,125 | 4,211,166 | ||||||||||||
| Capitalized software development - work in progress | - | 105,900 | |||||||||||
| TOTAL ASSETS | $ | 21,717,331 | 11,994,458 | ||||||||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||||
| Current Liabilities | |||||||||||||
| Accounts payable | $ | 306,216 | 655,765 | ||||||||||
| Related party payables | 5,654 | 9,287 | |||||||||||
| Short term loans - related parties - current portion | 86,585 | 261,986 | |||||||||||
| Short term loans - unrelated parties - current portion | 209,601 | 519,153 | |||||||||||
| Accrued expenses | 660,577 | 1,164,813 | |||||||||||
| Deferred liabilities - current portion | 1,960,850 | 1,255,525 | |||||||||||
| Deferred revenue | 396,227 | 278,908 | |||||||||||
| Total current liabilities | $ | 3,625,710 | 4,145,437 | ||||||||||
| Long-Term Liabilities | |||||||||||||
| Preferred stock embedded derivative liability | 4,574,980 | - | |||||||||||
| Other long-term loans - related parties - net of current portion | - | 45,052 | |||||||||||
| Other long-term loans - unrelated parties - net of current portion | 88,411 | 241,121 | |||||||||||
| Note payable, net of discount | - | 4,909,376 | |||||||||||
| Deferred consideration - net of current portion | 561,740 | - | |||||||||||
| Contingent consideration | 344,877 | 1,086,000 | |||||||||||
| Total liabilities | $ | 9,195,718 | 10,426,986 | ||||||||||
| Mezzanine Equity | |||||||||||||
| Redeemable Series A Convertible Preferred Stock, | 1,020,377 | - | |||||||||||
| Stockholders’ Equity (Deficit) | |||||||||||||
| Common stock ( | 131,741 | 45,865 | |||||||||||
| Additional paid-in capital | 67,466,893 | 39,770,060 | |||||||||||
| Accumulated deficit | (55,980,534 | ) | (38,260,913 | ) | |||||||||
| Accumulated other comprehensive (loss) income | (127,889 | ) | 5,011 | ||||||||||
| Total stockholders’ equity of | 11,490,211 | 1,560,023 | |||||||||||
| Non-controlling interests in consolidated entities | 11,025 | 7,449 | |||||||||||
| Total stockholders’ equity | 11,501,236 | 1,567,472 | |||||||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | $ | 21,717,331 | 11,994,458 | ||||||||||
Consolidated Statements of Operations and Comprehensive (Loss) Income For the Years Ended | ||||||||
| For the Year Ended | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Revenues | $ | 4,518,498 | $ | 948,420 | ||||
| Cost of revenues | 2,067,060 | 302,084 | ||||||
| Gross Profit | 2,451,438 | 646,336 | ||||||
| Operating Expense | ||||||||
| Wages, benefits and payroll taxes | 6,506,553 | 2,841,591 | ||||||
| Marketing and advertising | 5,946,514 | 793,004 | ||||||
| Professional and legal fees | 3,273,947 | 2,124,946 | ||||||
| Depreciation and amortization | 543,170 | 282,095 | ||||||
| Impairment of capitalized software | 220,016 | 202,968 | ||||||
| Other operating expense | 1,968,196 | 1,304,346 | ||||||
| Total operating expense | 18,458,396 | 7,548,950 | ||||||
| Operating Loss | (16,006,958 | ) | (6,902,614 | ) | ||||
| Other Expense (income) | ||||||||
| Changes in fair value of contingent consideration | (604,123 | ) | - | |||||
| Interest expense, net | 814,727 | 333,759 | ||||||
| Change in fair value of preferred stock embedded derivative liability | 456,325 | - | ||||||
| Loss on debt extinguishment | 438,834 | - | ||||||
| Amortization of commitment fee | 406,250 | 500,000 | ||||||
| Other expense, net | 71,421 | 601 | ||||||
| Total other expense | 1,583,434 | 834,360 | ||||||
| Net Loss from continuing operations before income taxes | (17,590,392 | ) | (7,736,974 | ) | ||||
| Income tax (expense) benefit | - | 54,260 | ||||||
| Net Loss from continuing operations | (17,590,392 | ) | (7,682,714 | ) | ||||
| Discontinued operations (Roost and Rhove) | ||||||||
| Loss from operations of discontinued operations | - | (261,242 | ) | |||||
| Impairment of goodwill and intangible assets of discontinued operations | - | (18,078,393 | ) | |||||
| Loss on discontinued operations | $ | - | $ | (18,339,635 | ) | |||
| Net Loss | $ | (17,590,392 | ) | $ | (26,022,349 | ) | ||
| Less: Net Income Attributable to Non-Controlling Interests | 3,576 | 679 | ||||||
| Net Loss Attributable to Controlling Interests | $ | (17,593,968 | ) | $ | (26,023,028 | ) | ||
| Preferred stock dividends | 122,877 | - | ||||||
| Net Loss Attributable to Common Stockholders | $ | (17,716,854 | ) | $ | (26,023,028 | ) | ||
| Other comprehensive (loss) income | ||||||||
| Foreign currency translation adjustments | (132,900 | ) | 5,011 | |||||
| Total other comprehensive (loss) income | (132,900 | ) | 5,011 | |||||
| Comprehensive Loss Attributable to Controlling Interests | $ | (17,849,745 | ) | $ | (26,018,017 | ) | ||
| Basic loss per share | ||||||||
| Continuing operations | $ | (0.23 | ) | $ | (0.17 | ) | ||
| Discontinued operations | $ | - | $ | (0.41 | ) | |||
| Net Loss per share — basic | $ | (0.23 | ) | $ | (0.58 | ) | ||
| Diluted loss per share | ||||||||
| Continuing operations | $ | (0.23 | ) | $ | (0.17 | ) | ||
| Discontinued operations | $ | - | $ | (0.41 | ) | |||
| Net loss per share — diluted | $ | (0.23 | ) | $ | (0.58 | ) | ||
| Weighted-average outstanding shares — basic | 76,316,926 | 44,631,577 | ||||||
| Weighted-average outstanding shares — diluted | 76,316,926 | 44,631,577 | ||||||
Consolidated Statements of Cash Flows For the Years Ended | ||||||||
| For the Year Ended | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | $ | (17,590,392 | ) | $ | (26,022,349 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 543,170 | 466,691 | ||||||
| Impairment of capitalized software | 220,016 | 145,746 | ||||||
| Impairment of goodwill and intangible assets | - | 18,280,947 | ||||||
| Amortization of loan discounts | 545,624 | 181,875 | ||||||
| Common stock issued to non - employee | 2,526 | - | ||||||
| Stock-based compensation - employees | 859,950 | 207,453 | ||||||
| Stock-based compensation - services | - | 108,730 | ||||||
| Change in fair value of contingent consideration | (604,123 | ) | - | |||||
| Loss on extinguishment of debt | 438,834 | - | ||||||
| Change in fair value of preferred stock embedded derivative liability | 456,325 | - | ||||||
| Non-cash commitment fee expenses | 406,250 | 500,000 | ||||||
| Non-cash marketing and advertising | 4,406,571 | - | ||||||
| Non-cash compensation expense - GTG Financial | 106,000 | - | ||||||
| Gain on previously held equity | - | (20,663 | ) | |||||
| Loss (gain) on deconsolidation | (94,071 | ) | - | |||||
| Loss (gain) on sale of fixed assets | 52,858 | 301 | ||||||
| Impairment of equity investments - measurement alternative | 90,000 | - | ||||||
| Loss from equity method investment | 13,354 | - | ||||||
| Interest accretion on deferred consideration - Prevu | 20,404 | - | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | 114,277 | (16,437 | ) | |||||
| Receivable from related parties | 12,873 | (12,873 | ) | |||||
| Prepaid expenses | (187,824 | ) | (56,241 | ) | ||||
| Other current assets | (292,258 | ) | 62,637 | |||||
| Accounts payable | (491,751 | ) | (19,773 | ) | ||||
| Payable to related parties | (3,633 | ) | 58,756 | |||||
| Accrued expenses | (404,876 | ) | (185,118 | ) | ||||
| Deferred revenue | 117,319 | 278,080 | ||||||
| Total adjustments | 6,327,815 | 19,980,111 | ||||||
| Net cash used in operating activities | (11,262,577 | ) | (6,042,238 | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Additions to property and equipment | (42,896 | ) | (12,533 | ) | ||||
| Proceeds from sale of properties | - | 293,307 | ||||||
| Cash paid for acquisitions, net of cash acquired | (1,023,053 | ) | (1,268,630 | ) | ||||
| Cash deposited into escrow in connection with acquisitions | (500,000 | ) | - | |||||
| Cash paid for equity method investment | - | (50,000 | ) | |||||
| Cash used for additions to capitalized software | (176,143 | ) | (516,544 | ) | ||||
| Net cash used in investing activities | (1,742,092 | ) | (1,554,400 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from issuance of debt | 155,481 | 6,155,539 | ||||||
| Prepayment penalty | (368,769 | ) | - | |||||
| Proceeds from issuance of common stock | 25,566,385 | - | ||||||
| Payments of debt | (5,623,196 | ) | (1,164,241 | ) | ||||
| Contingent consideration paid-reAlpha | (137,000 | ) | - | |||||
| Payment of commitment fee | (1,000,000 | ) | - | |||||
| Deferred financing cost | - | (727,500 | ) | |||||
| Equity issuance expenses | (941,742 | ) | - | |||||
| Net cash provided by financing activities | 17,651,159 | 4,263,798 | ||||||
| Net increase in cash | 4,646,490 | (3,332,840 | ) | |||||
| Effect of exchange rate changes on cash | 13,509 | - | ||||||
| Cash - Beginning of Period | 3,123,530 | 6,456,370 | ||||||
| Cash - End of Period | $ | 7,783,529 | $ | 3,123,530 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest expense | $ | (468,726 | ) | $ | (58,897 | ) | ||
| Noncash Investing and Financing Activities: | ||||||||
| Preferred stock issuance - MMC transaction | 5,000,000 | - | ||||||
| Non-cash conversion of debt to equity - | 740,064 | - | ||||||
| Issuance of common stock - Prevu | 1,350,000 | - | ||||||
| Issuance of common stock - AiChat | 180,525 | - | ||||||
| Issuance of warrants to placement agents in connection with equity offerings | 299,768 | - | ||||||
| Deferred consideration - Prevu | 2,327,187 | - | ||||||
Non-
To supplement our financial information presented in accordance with
We use Adjusted EBITDA, a non-
The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented below:
| Year ended | ||||||
| 2025 | 2024 | |||||
| Net loss | $ | (17,590,392 | ) | $ | (26,022,349 | ) |
| Adjusted to exclude the following | ||||||
| Depreciation and amortization | 543,170 | 282,095 | ||||
| Amortization of loan discounts and origination fee (1) | 545,624 | 181,875 | ||||
| Loss from Discontinued Operations | - | 18,339,635 | ||||
| Income tax benefit | - | (54,260 | ) | |||
| Impairment of intangible assets | 220,016 | - | ||||
| Changes in fair value of contingent consideration (2) | (604,123 | ) | - | |||
| Change in fair value of preferred stock embedded derivative liability(3) | 456,325 | - | ||||
| Loss on extinguishment of debt | 438,834 | - | ||||
| Loss (gain) on deconsolidation (4) | (94,071 | ) | - | |||
| Loss (gain) on equity method investments | 103,354 | (20,663 | ) | |||
| Interest expense | 394,434 | 333,759 | ||||
| Non-cash commitment fee expenses (5) | 406,250 | 500,000 | ||||
| Stock based compensation (6) | 862,476 | 316,183 | ||||
| Equity offering costs (7) | 490,868 | - | ||||
| Acquisition-related expenses | 137,771 | 517,251 | ||||
| Adjusted EBITDA | $ | (13,689,464 | ) | $ | (5,626,474 | ) |
| (1 | ) | Represents amortization of all debt issuance costs and original issue discount due to the repayment of the Note (as defined below) issued to |
| (2 | ) | Represents remeasurement gains or losses related to the contingent consideration of reAlpha Mortgage. |
| (3 | ) | Represents non-cash remeasurement gains or losses related to the shares of Series A Preferred Stock issued in the MMC transaction. |
| (4 | ) | Represents a gain recognized upon the rescission of the GTG Financial acquisition. |
| (5 | ) | Represents the commitment fee of |
| (6 | ) | Represents non-cash stock-based compensation expense associated with shares of common stock issued to consultants ( |
| (7 | ) | Represents legal and professional fees incurred in connection with the issuance of shares of common stock and warrants from our equity offerings and other capital raise transactions. |
