reAlpha (Nasdaq: AIRE) Reports Second-Quarter 2026 Financial Results (Form 8-K)

reAlpha (Nasdaq: AIRE) Reports Second-Quarter 2026 Financial Results

DUBLIN, OH - 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.)

"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

"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

[email protected]

Investor Relations Contact:

Adele Carey, VP of Investor Relations

[email protected]

reAlpha Tech Corp. and Subsidiaries

Condensed Consolidated Balance Sheet

June 30, 2026 (unaudited) and December 31, 2025

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)

reAlpha Tech Corp. and Subsidiaries

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2026, and 2025 (unaudited)

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: