Executive Summary

Q2 revenue grew 1,909% year over year to $1.25M, driven primarily by mortgage brokerage (reAlpha Mortgage + GTG) and AiChat subscriptions; gross margin was ~50% vs 71% a year ago .
Against S&P Global consensus, revenue modestly beat ($1.25M actual vs $1.13M estimate*), but EPS (-$0.08) and Adjusted EBITDA (-$3.47M) missed estimates* as operating expenses ramped on integration and marketing .
Liquidity remains tight (cash $0.59M at quarter end) with going-concern language; however, subsequent July offerings enabled full repayment of the Streeterville note (~$4.47M including penalty), reducing near-term financing risk .
Strategic execution advanced: AI “Loan Officer Assistant” showed early workflow efficiency gains; national footprint and leadership transition to CEO Mike Logozzo aim to scale operations .
Stock catalysts: sustained mortgage volume growth, progress to regain Nasdaq listing compliance, resolution of GEM warrant litigation, and clarity on GTG deferred cash payments timing .

What Went Well and What Went Wrong

What Went Well
- Revenue inflected: $1.25M (+1,909% YoY; +35% QoQ) with $1.01M from mortgage brokerage and $0.16M from AiChat subscriptions in Q2 .
- Early AI ops leverage: internal Loan Officer Assistant reduced manual processing and per-loan time based on internal testing, supporting scale in mortgage ops .
- Post-quarter de-risking: July equity raises and note payoff extinguished Streeterville debt and halted monthly redemptions that had pressured liquidity .
What Went Wrong
- Profitability deteriorated: Adjusted EBITDA fell to -$3.47M (vs -$1.96M in Q1; -$1.15M in Q2’24) on higher salaries, marketing, and professional fees tied to integration and capital activities .
- Gross margin compression vs LY (50% vs 71%) reflecting higher cost to deliver loan brokerage and tech solutions .
- Liquidity strain and compliance risk: cash was $0.59M at 6/30; going-concern disclosure; Nasdaq minimum bid price and market value notices; GTG deferred cash consideration (up to $1.34M) unpaid and accruing 4% interest after day 180 with potential rescission right .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($)	$62,353	$925,635	$1,252,381
Gross Profit ($)	$44,103	$518,667	$621,465
Gross Margin (%)	71%	—	~50%
Adjusted EBITDA ($)	$(1,147,511)	$(1,960,997)	$(3,474,092)
Net Loss ($)	$(1,478,312)	$(2,850,351)	$(4,110,016)
Diluted EPS ($)	$(0.03)	$(0.06)	$(0.08)

Segment revenue mix (operational disclosure)

Balance sheet and capital structure KPIs

KPI	Q1 2025	Q2 2025
Cash & Equivalents ($)	$1,204,400	$587,311
Note Payable – Streeterville (net) ($)	$5,010,623	$3,741,878
Shares Outstanding (period end)	46,230,934	52,364,654

Estimates vs. actuals (S&P Global consensus)

Values marked with * are from S&P Global consensus; actuals per filings. Values retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance	FY/Q3 2025	None	None provided	Maintained none
Liquidity runway (qualitative)	2H 2025	—	Cash runway to end of Oct-2025 assuming no further raises	New disclosure
Debt	N/A	Streeterville note outstanding	Fully repaid on Jul 23, 2025 (post-Q2)	De-risked balance sheet

Note: No Q2 2025 earnings call transcript was available in our source set; themes below reflect MD&A and filings.

Topic	Prior Mentions (Q4 2024)	Prior Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	Launch of reAlpha platform and “Claire” AI; AiChat acquisition	Continued platform focus; tech services segment only	Loan Officer Assistant internal tool efficiency; continued AI emphasis	Expanding execution
Mortgage/title expansion	Hyperfast title capability; Be My Neighbor footprint	GTG acquisition; mortgage licensing breadth	Mortgage revenues drive growth; expanded into Utah	Scaling volumes
Liquidity/capital	2024 cash $3.12M; new debt (Streeterville)	ATM/Warrant inducement plan; going concern	July offerings and full debt repayment; runway to Oct	De-risked post-Q2, still tight
Regulatory/legal	NAR commission changes context	NAR rule change opportunities; litigation with GEM	Continued GEM litigation; Nasdaq deficiency notices	Ongoing risk
Nasdaq compliance	—	—	Bid price and MVLS deficiency letters with 180-day windows	Watchlist item

“We believe that our second quarter’s performance demonstrates the scalability of our platform strategy… We remain focused on balancing our growth with fiscal discipline as we commercialize our AI infrastructure.” — CFO Piyush Phadke .
“We are uniquely positioned to transform the homebuying journey through technology, data, and integrated services… we will expand our national footprint, scale our end-to-end platform, and deliver long-term results.” — CEO Mike Logozzo (appointment PR) .

No public Q2 2025 earnings call transcript was available in our document set; no Q&A highlights to report.

Revenue beat: Actual $1.25M vs $1.13M estimate* as mortgage origination fees and AiChat subscriptions scaled post-acquisitions .
EPS and EBITDA missed: Elevated salaries from acquired teams, $1.48M Q2 marketing spend, and professional/legal fees tied to capital markets activity widened losses vs estimates* .
Outlook: With subsequent equity raises and debt repayment, near-term interest expense should decline; however, operating expense intensity and GTG deferred cash obligations may keep consensus cautious absent stronger volume conversion .
Values marked with * are from S&P Global consensus. Values retrieved from S&P Global.

Top-line momentum but profitability lag: Rapid revenue growth is mortgage-led; operating leverage depends on scaling volumes while normalizing marketing/legal spend .
Balance sheet improved after Q2: Full payoff of Streeterville reduces financing overhang, but runway guidance still only to late October absent additional financing .
Watch compliance and litigation: Bid price/MVLS deficiency windows and GEM litigation outcomes could drive volatility and dilution scenarios .
Execution proof points: Mortgage volume growth, AI ops efficiency translating to throughput, and integration synergies are key to margin progression .
Cash obligations: Clarify timing of $1.34M GTG deferred cash payments now accruing 4% interest and potential transaction rescission right .
Marketing ROI: $1.48M Q2 spend (incl. media-for-equity) should be assessed against lead conversion and revenue trajectory in H2 .
Estimate path: Expect consensus to adjust for lower interest expense post-payoff, but to remain conservative on opex and cash needs until sustained positive contribution appears .