reAlpha Reduces Workforce by Approximately 25% and Consolidates Vendor Spend, Targeting $2 Million in Annualized Savings as AI Advancements Drive Organizational Efficiency[...]

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 6, 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.