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reAlpha Tech Corp. (AIRE)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered strong top-line momentum: revenue rose 326% year-over-year to $1.45M, while gross profit increased 229% to $0.75M; however, gross margin compressed to 52% from 67% and net loss widened to $5.78M .
  • Versus S&P Global consensus, revenue beat ($1.45M vs $1.30M), EPS came in better-than-expected (−$0.033 vs −$0.05), while EBITDA missed (−$4.82M actual vs −$3.72M est)*; note company reports non-GAAP Adjusted EBITDA of −$2.21M . Values retrieved from S&P Global.
  • Balance sheet and listing milestones were notable: parent-level secured debt fully repaid in July; regained Nasdaq MVLS compliance in September; and received an additional 180-day extension to remedy minimum bid price by May 18, 2026 .
  • Strategic execution advanced through AI initiatives (internal Loan Officer Assistant upgrades; new AI-powered Engagement Assistant) and expansion of realty/mortgage footprint into Georgia, Utah, and Nevada—positioning for scalability .
  • Near-term stock catalysts center on continued revenue traction from mortgage brokerage, AI-enabled conversion improvements, and progress on Nasdaq bid-price compliance; risk factors include margin mix, ongoing operating losses, and execution on multi-state licensing .

What Went Well and What Went Wrong

What Went Well

  • Rapid revenue growth driven by mortgage brokerage and technology: Q3 revenue up 326% YoY to $1.45M, with gross profit up to $749.6K; management highlighted platform expansion and AI integrations as key drivers .
  • Balance sheet strengthened: approximately $7.5M raised via July offerings, ~$10.0M via warrant exercises, ~$0.9M via ATM; secured promissory note fully repaid, eliminating parent-level secured debt .
  • Compliance progress: regained Nasdaq MVLS requirement in September and secured a 180-day extension to regain minimum bid price compliance, signaling continued focus on public company fundamentals .

Management quote:

  • “We believe we are well-positioned to continue delivering revenue growth in the coming quarters, driven by a stronger balance sheet and continued investment in AI…” — CFO Piyush Phadke .

What Went Wrong

  • Profitability pressure: Adjusted EBITDA loss widened to approximately −$2.21M from −$1.25M YoY; net loss widened to −$5.78M vs −$2.10M in Q3 2024 .
  • Margin compression: gross margin declined to 52% from 67%, largely due to a higher mix of lower-margin loan brokerage services (commissions recorded in cost of revenue) .
  • Corporate complexity: rescission of GTG Financial acquisition (recognized through August 21 only) increases variability in reported results and underscores ongoing integration/execution risks .

Financial Results

Income Statement Snapshot (chronological: oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)$339,227 $925,635 $1,252,381 $1,445,137
Gross Profit ($USD)$225,866 $518,667 $621,465 $749,580
Operating Loss ($USD)$(1,625,190) $(2,422,258) $(4,089,130) $(4,948,801)
Net Loss ($USD)$(2,098,574) $(2,850,351) $(4,110,016) $(5,781,324)
Diluted EPS ($)$(0.05) $(0.06) $(0.08) $(0.07)

Margins and Mix

MetricQ3 2024Q2 2025Q3 2025
Gross Profit Margin %67% 50% 52%
CommentaryHigher margin in prior year; mix shift to loan brokerage lowered margins Brokerage/tech mix drove YoY margin decline Continued mix pressure from brokerage services

KPIs and Balance Sheet

MetricQ3 2024Q3 2025
Cash and Equivalents ($USD)~$7.0M $9,278,879
Total Liabilities ($USD)—$8,827,515
Stockholders’ Equity ($USD)—$10,899,578
Weighted-Average Shares (Diluted)44,372,982 81,716,309

Notes:

  • Adjusted EBITDA (non-GAAP): Q3 2025 ≈ $(2,208,557); Q3 2024 ≈ $(1,253,907) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot providedNot providedMaintained “no formal guidance”; management reiterated focus on revenue growth trajectory
MarginsFY/QuarterNot providedNot providedNo numeric ranges; commentary on margin mix due to brokerage services
OpExFY/QuarterNot providedNot providedNo numeric ranges; continued investment in AI and platform integration
OI&E / Tax RateFY/QuarterNot providedNot providedNot provided
Segment-specificFY/QuarterNot providedNot providedNot provided
Capital structure / listingN/AMVLS regained; bid price non-compliant180-day extension to regain bid price by May 18, 2026Extension granted

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was located in public filings or the document catalog; themes below reflect press releases and the shareholder letter.

TopicPrevious Mentions (Q1–Q2 2025)Current Period (Q3 2025)Trend
AI initiativesLaunched Loan Officer Assistant; 60% manual doc time reduction in testing Upgraded Loan Officer Assistant; launched AI Engagement Assistant improving engagement/conversion/application metrics Expanding scope; deeper operational integration
Platform expansionEntered Texas (realty) and Utah (mortgage) Georgia (realty), Utah & Nevada (mortgage); Claire concierge enhanced Geographic + product expansion continues
Balance sheetNote repayment plan and capital raises emerging Secured debt fully repaid; equity/warrant/ATM proceeds; stronger liquidity Simplified capital structure, improved liquidity
Nasdaq compliance—MVLS compliance regained; bid-price 180-day extension granted Progress on listing requirements; bid-price next
Revenue driversRapid YoY growth from mortgage brokerage, GTG, tech Continued brokerage-driven growth; rescission of GTG recognized through Aug 21 Growth persists; mix adjustment post-GTG
Regulatory/licensingCRM integration and multi-state licensing momentum Unified brand/process; presence in 31 markets (as of Nov 10); licensing expansion focus Scaling licensing footprint

Management Commentary

  • CFO (Q3 PR): “We believe we are well-positioned to continue delivering revenue growth in the coming quarters, driven by a stronger balance sheet and continued investment in AI…” .
  • CEO (Nasdaq extension PR): “We have made measurable progress in strengthening our financial and operational foundation… and advancing our AI technology initiatives… committed to sustainable growth, transparency, and long-term value creation” .
  • Shareholder letter: Emphasis on “One reAlpha” integration, disciplined expansion and AI-enabled operations to improve efficiency and customer experience; objective to maintain financial strength and deepen platform integration .

Q&A Highlights

  • No publicly available Q3 2025 earnings call transcript was found; management communications were delivered via the Q3 press release and shareholder letter .

Estimates Context

Comparison to S&P Global consensus (Q3 2025):

  • Revenue: $1,445,137 actual vs $1,302,500 est → bold beat*. Values retrieved from S&P Global.
  • EPS (Primary): −$0.033 actual vs −$0.05 est → bold beat*. Values retrieved from S&P Global.
  • EBITDA: −$4,816,800 actual vs −$3,722,000 est → bold miss*; company-reported Adjusted EBITDA is −$2,208,557 (non-GAAP) . Values retrieved from S&P Global.

Estimates table (S&P Global):

MetricQ3 2025 EstimateQ3 2025 Actual# of Estimates
Revenue ($USD)1,302,500*1,445,137*2*
Primary EPS ($)−0.05*−0.0334*3*
EBITDA ($USD)−3,722,000*−4,816,800*—

Notes:

  • Company GAAP diluted EPS was −$0.07 ; S&P “Primary EPS” may reflect normalization differences; use S&P figures for estimate comparisons per methodology. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue trajectory is positive with sequential growth Q1→Q2→Q3 2025; mortgage brokerage is the primary driver, but margin mix (commissions in cost of revenue) weighs on gross margin .
  • Profitability remains the core challenge: operating loss and net loss widened; Adjusted EBITDA deterioration reflects continued investment and scaling costs; watch for operating leverage as volumes grow .
  • Execution on AI-enabled workflow automation (Loan Officer and Engagement Assistants) is a potential differentiator for conversion and throughput; early metrics are promising but internally derived—track sustained impact on revenue per LO and cycle times .
  • Balance sheet and listing status improved: secured debt repayment and MVLS compliance regained; 180-day bid-price extension reduces near-term delisting risk but requires continued execution/confidence building .
  • Post-GTG rescission adds near-term noise to reported contributions; focus on organic brokerage growth and cross-service monetization (realty, mortgage, title) as platform scales .
  • Near-term estimate resets: revenue beats and EPS outperformance vs consensus suggest top-line traction, but EBITDA miss underscores the need for cost discipline and margin improvement; expect models to reflect ongoing investment and margin mix*. Values retrieved from S&P Global.
  • Trading implications: momentum longs may focus on revenue/AI catalysts and listing progress; skeptics will point to margins, cash burn, and path to profitability—key events include licensing expansions, operational KPIs on conversion/processing time, and any movement toward numeric guidance .