Sign in

You're signed outSign in or to get full access.

RT

reAlpha Tech Corp. (AIRE)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $0.93M, up 4,432% YoY, and beat Wall Street consensus by ~32% (actual $0.93M vs. $0.70M estimate); diluted EPS of -$0.06 modestly beat consensus (-$0.053 vs. -$0.057) as operating expenses rose with acquisition integration [*S&P Global].
  • Net loss widened to $2.85M on higher wages, legal/professional fees, and marketing; gross margin improved versus prior year given scale and mix .
  • Liquidity actions: $3.1M gross proceeds from warrant inducement and a $5M media-for-equity arrangement to preserve cash while expanding marketing reach; quarter-end cash fell to $1.20M (from $3.12M at 12/31/24) .
  • Strategic catalysts: GTG Financial acquisition (36 mortgages, $22.4M loan volume since acquisition) and expanding AI-led platform initiatives; execution on these vectors is key near-term driver .

What Went Well and What Went Wrong

What Went Well

  • Revenue growth and estimate beat: $925,635 revenue (+4,432% YoY) and above consensus ($702,980); management highlights “positive trend in revenue growth and EBITDA margins” [*S&P Global].
  • Acquisition synergies and platform scale: GTG Financial originated 36 mortgages totaling ~$22.4M since acquisition, complementing Be My Neighbor and expanding real estate services adjacency .
  • Marketing leverage without cash burn: $5M media-for-equity with Mercurius to amplify national brand while preserving cash; management expects increased visibility and engagement .
  • Quote (CFO): “Our progress in the first quarter of 2025 is a definite step in the right direction… combining AI-driven technology with strategic acquisitions… building a scalable platform aimed at making homeownership more affordable” .

What Went Wrong

  • Widening losses and cash draw: Net loss of $2.85M; quarter-end cash declined to $1.20M; operating expenses rose (wages $1.06M; legal/professional $0.74M; marketing $0.52M), and interest expense increased .
  • Balance sheet pressure: Total liabilities rose to $19.50M with embedded derivative liability and preferred stock liability appearing; stockholders’ equity swung to a $(0.97)M deficit at 3/31/25 .
  • Guidance/trajectory uncertainty: Prior outlook for Q4 2024 (130–190% q/q revenue growth) contrasts with later preliminary Q4 revenue range of ~$0.5–$0.6M, implying unmet earlier growth aspirations; underscores volatility in scaling phase .

Financial Results

MetricQ1 2024Q2 2024Q3 2024Q1 2025
Revenue ($USD)$20,426 $62,353 $339,227 $925,635
Gross Profit ($USD)$2,177 $44,103 $225,866 $518,667
Gross Margin (%)10.7% 70.7% 66.6% 56.0%
EBIT (Operating Income/Loss) ($USD)$(1,306,658) $(1,210,266) $(1,689,620) $(2,422,258)
EBIT Margin (%)(6,399.3)% (1,942.2)% (498.3)% (261.7)%
Net Income ($USD)$(1,419,045) $(1,478,312) $(2,098,574) $(2,850,351)
Net Margin (%)(6,947.0)% (2,371.4)% (619.1)% (308.0)%
Diluted EPS ($USD)$(0.03) $(0.03) $(0.05) $(0.06)

KPIs and Liquidity

KPIQ2 2024Q3 2024FY 2024 (12/31)Q1 2025 (3/31)
Cash and Equivalents ($USD)$3,682,327 $7,076,877 $3,123,530 $1,204,400
Adjusted EBITDA ($USD)$(1,147,148) $(1,253,907) $(5,572,214) $(1,960,997)
Mortgages Originated (GTG)———36 since acquisition; loan volume ~$22.4M
Media-for-Equity Credits———$5,000,000
Warrant Exercise Proceeds———~$3,100,000 gross

Segment breakdown: Not disclosed; revenues consist of technology services and subsidiary services; no segment table provided .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/OutcomeChange
Revenue growth (q/q)Q4 2024+130% to +190% vs Q3 2024 Preliminary revenue ~$0.5–$0.6M; Q3 2024 revenue was ~$0.339M Lower vs prior aspiration
Integration milestonesQ4 2024Complete Be My Neighbor integration Continued integration and expansion across subsidiaries noted Q1 2025 Maintained
Marketing investment2025—$5M media-for-equity to fund national campaigns New

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our document catalog.

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q1 2025)Trend
AI/technology initiativesLaunched Claire (AI, zero-commission platform) Super App launch; AI Labs; AiChat acquisition Continued platform development; operational tooling; new website for Be My Neighbor Expanding scope and integration
Acquisitions/integrationNaamche acquired; building engineering capacity Be My Neighbor; AiChat; Hyperfast; integration underway GTG Financial acquired; integration driving revenue Ongoing acquisition-led growth
Macro/regulatory (NAR)NAR settlement impacts commissions; opportunity for low-fee model Continued narrative on NAR-driven shift Focus on affordability and AI-enabled homebuying Structural tailwind
Marketing/brand reach——$5M media-for-equity; Willow TV campaign Accelerating brand spend
Revenue outlookGrowth expected 140–170% q/q into Q3 Outlook 130–190% q/q into Q4 No explicit Q2 2025 guidance; highlights growth drivers Guidance less specific

Management Commentary

  • CFO Piyush Phadke: “Our progress in the first quarter of 2025 is a definite step in the right direction… combining AI-driven technology with strategic acquisitions… building a scalable platform aimed at making homeownership more affordable” .
  • President/COO Mike Logozzo (Q3 2024): “Our acquisition-led growth strategy continues to drive positive results, as demonstrated by an over 440% quarter-over-quarter revenue increase” .
  • On media-for-equity: “We believe this investment and amplification of our market reach will be a significant step towards empowering more individuals to achieve their homeownership dreams” .

Q&A Highlights

  • A Q1 2025 earnings call transcript was not found; no Q&A highlights available in the document set [—].

Estimates Context

MetricQ1 2025 ConsensusQ1 2025 ActualSurprise
Revenue ($USD)$702,980*$925,635 +$222,655; +31.7%*
Diluted EPS ($USD)-$0.05667*-$0.0534*+$0.00327*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Top-line momentum and a clean beat vs. consensus revenue signal early traction from acquisitions and operational initiatives; EPS was a modest beat despite higher OpEx intensity [*S&P Global].
  • Cost structure scaling: wage, legal/professional, and marketing lines are ramping; monitor operating leverage and whether gross margin gains continue as mix scales .
  • Liquidity bridge: $3.1M from warrant exercise plus $5M media credits support near-term runway, but cash fell to $1.20M; watch cash burn, additional financings, and stockholder approvals tied to new warrants .
  • Acquisition execution is the growth engine: GTG’s early loan volume and continued integration across subsidiaries are central to the thesis; sustained conversion into recurring revenues is key .
  • Guidance discipline: Prior quarter outlooks were ambitious; preliminary Q4 revenue range suggests volatility—expect more measured guidance until scale stabilizes .
  • Marketing ROI: Media-for-equity should expand reach at lower cash cost; track campaign efficacy (e.g., Willow TV) and lead-to-close conversion via platform .
  • Near-term trading lens: Estimate beats and brand expansion are positives; balance-sheet constraints and dilution risk from warrants remain overhangs; catalysts include integration updates, licensing expansion, and revenue conversion milestones .