Executive Summary

Q4 2024 revenue was estimated at $0.50–$0.60M, significantly below the prior outlook calling for 130%–190% QoQ growth from Q3’s $0.339M; implied actual growth was roughly 47%–77%, a clear guidance miss. Bold: Guidance miss on Q4 revenue vs. prior 130%–190% growth outlook .
Cash fell to $3.12M at year‑end from $7.08M at Q3; management cited a $1.5M payment for the Be My Neighbor acquisition and higher operating expenses post‑acquisition as primary drivers. Bold: Material cash drawdown due to acquisition payments and OpEx .
The company discontinued its short‑term rental business (Rhove) amid macro headwinds (higher rates, inflation), recording ~$17.34M goodwill impairment and shifting focus toward AI‑enabled homebuying and services. Bold: Strategic pivot away from STR; large impairment recognized .
In December, reAlpha adopted a crypto treasury policy (Bitcoin/Ethereum/Solana) for up to 25% of excess cash, introducing potential financial statement volatility and regulatory risk disclosures. Bold: Crypto treasury adds volatility/regulatory risk to the narrative .
No Q4 earnings call transcript was furnished; near‑term catalysts are integration progress (BMN), AI platform adoption, and clarity on 2025 expansion pace; results vs guidance are likely to drive stock narrative until more data points are provided .

What Went Well and What Went Wrong

What Went Well

“We have made great strides in 2024 in advancing reAlpha’s goal to become a leader in the real estate technology industry through strategic innovation and impactful acquisitions,” said CFO Piyush Phadke, highlighting revenue growth from acquisitions (AiChat, Be My Neighbor) and ongoing AI investment .
Q2→Q3 revenue acceleration: Q3 revenue reached $339,227 (+440% QoQ, +475% YoY), exceeding prior Q2 guidance for Q3 by 274% at the high end—demonstrating acquisition‑led momentum in the platform/services model .
Product/tech expansion continued: launch of Super App, AI Labs (first investment in Xmore AI), and integration of AiChat and Hyperfast title services—solidifying the tech stack and go‑to‑market footprint .

What Went Wrong

Q4 revenue miss vs guidance: estimated $0.50–$0.60M failed to meet the outlook for 130%–190% QoQ growth from Q3’s $0.339M (implied target ~$0.78–$1.12M), signaling slower than expected ramp post‑BMN acquisition .
Cash declined materially to $3.12M by Dec 31, 2024 (from $7.08M in Q3), driven by a $1.5M acquisition payment and increased operating expenses, tightening liquidity and emphasizing financing discipline. Analysts may question runway and capital deployment pacing .
STR business discontinuation and ~$17.34M goodwill impairment for Rhove reflected macro‑driven challenges (rates/inflation) and non‑recurring losses; annual net loss reached ~$26.02M, with Adjusted EBITDA at $(5.57)M for FY2024 .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD)	$62,353	$339,227	$500,000–$600,000 (estimate)
QoQ Growth (%)	—	+440% (QoQ)	~+47%–+77% (vs $339,227)
YoY Growth (%)	+13.6% YoY	+475% YoY	N/A (not disclosed)
Net loss per share — diluted ($)	$(0.03)	$(0.05)	N/A (not disclosed)
Gross Profit ($USD)	$44,103	$225,866	N/A
Gross Profit Margin (%)	~70.7% (computed from )	~66.6% (computed from )	N/A
Adjusted EBITDA ($USD)	$(1,147,148)	$(1,253,907)	N/A
Cash and Equivalents ($USD)	$3,682,327	$7,076,877	$3,123,530

Notes: Q4 figures are preliminary/unaudited ranges furnished in Item 2.02; EPS, margins, Adjusted EBITDA for Q4 were not disclosed .

Operational KPIs (selected)

KPI	Q2 2024	Q3 2024	Q4 2024
Platform availability footprint	South FL: Palm Beach, Miami‑Dade, Broward (limited availability)	20 counties in Florida (limited availability)	20 counties in Florida (still limited; seeking licenses)
Title services footprint	—	Hyperfast title services integrated	3 U.S. states for title services as of FY end
Mortgage brokerage footprint	—	BMN acquired (licensed in 27 states)	BMN licensed in 28 states by year‑end
AI initiatives	Claire launch; Naamche acquisition	Super App; AI Labs; AiChat acquisition	Crypto treasury adoption; continued AI commercialization

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Revenue growth vs Q3 (QoQ)	Q4 2024	+130% to +190% growth vs Q3 ($339,227)	Actual revenue $0.50–$0.60M → ~+47%–+77% growth vs Q3	Missed (below guided range)

No other quantitative guidance (margins, OpEx, tax rate) was provided for Q4 in filings reviewed –.

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was furnished in the document catalog; themes reflect company filings and press releases.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
AI/technology initiatives	Claire launch; Naamche acquisition (team scale)	Ongoing commercialization; crypto treasury decision; continued platform focus	Platform‑centric strategy with broadened tools; treasury diversification
Macro (rates/inflation; NAR settlement)	NAR settlement context (fee elimination)	STR discontinuation attributed to high rates/inflation; FY impairment	Macro headwinds impacting legacy STR; focus shifts to platform/services
Regulatory/legal	NAR settlement reshapes commissions	Crypto treasury risk factors, fair‑value accounting changes (ASU 2023‑08)	Heightened regulatory risk/financial volatility from crypto strategy
Product performance	Q2 revenue $62k; early ramp	Q3 revenue $339k (+440% QoQ, +475% YoY)	Q4 revenue $0.50–$0.60M below outlook; momentum moderated vs guidance
Regional expansion	Initial South FL counties	20 FL counties; seeking broader licenses	Still 20 counties; working to expand U.S. footprint
R&D/AI Labs	Naamche team; AI buildout	AI Labs launched; Xmore AI investment; AiChat integration	Continued AI investments and integrations

Management Commentary

CFO Piyush Phadke: “We have made great strides in 2024 in advancing reAlpha’s goal to become a leader in the real estate technology industry through strategic innovation and impactful acquisitions.” He cited meaningful revenue growth from AI‑driven technologies and acquisitions (AiChat, BMN) .
President & COO Mike Logozzo (Q3): “Our acquisition‑led growth strategy continues to drive positive results, as demonstrated by an over 440% quarter‑over‑quarter revenue increase.” He emphasized further investment in AI and acquisitions to accelerate growth .
CEO Giri Devanur (Crypto PR): “This board‑approved initiative demonstrates our forward‑looking approach to capital management… we aim to diversify our treasury holdings and position reAlpha to adapt to changing market conditions…” .

Q&A Highlights

No Q4 earnings call transcript was furnished; no formal Q&A themes were available in SEC filings or press releases reviewed – .

Estimates Context

S&P Global consensus estimates for AIRE were unavailable during retrieval; therefore, estimate comparisons could not be made. Values retrieved from S&P Global were unavailable due to access limitations; comparisons are anchored to the company’s own Q3 outlook for Q4 and actual Q4 preliminaries .

Key Takeaways for Investors

Q4 revenue underperformed the company’s outlook, implying slower‑than‑expected integration ramp and monetization; near‑term estimate models should reduce revenue trajectories for early 2025 until clearer platform adoption signals emerge .
Liquidity tightened into year‑end ($3.12M cash), with acquisition‑related payments and OpEx increases; monitor financing developments and working capital as the company pursues further acquisitions .
The strategic exit from STR (Rhove) and related impairment refocuses the story on AI‑enabled homebuying and ancillary services, reducing exposure to rate‑sensitive STR dynamics .
Crypto treasury policy introduces non‑operating earnings volatility and regulatory complexity; position sizing and risk controls are key as fair‑value accounting (ASU 2023‑08) increases reported P&L volatility once adopted .
Watch execution KPIs: state/license expansion beyond 20 FL counties, mortgage brokerage growth across 28 states, and conversion within the Super App/Claire funnel .
Short‑term trading implications: guidance miss and treasury strategy shift can drive heightened volatility; upside catalysts include licensing wins, accretive acquisitions, and evidence of sustained revenue scale beyond $0.6M/quarter .
Medium‑term thesis: if AI platform adoption scales and services (title, mortgage, chat engagement) cross‑sell within the Super App, acquisition‑led revenue could normalize with improving operating leverage; funding and execution discipline remain pivotal .

Appendix: Additional Financial Context (FY 2024)

FY 2024 revenue was $948,420 (+270% YoY), cash was $3,123,530, net loss was ~$26.02M, and Adjusted EBITDA was $(5,572,214), reflecting STR discontinuation and impairment dynamics alongside acquisition‑led revenue growth .

reAlpha Tech Corp. (AIRE)·Q4 2024 Earnings Summary