reAlpha Tech Corp. Reports 1,909% Revenue Growth in Q2 2025 Amid Operating Loss

reAlpha Tech Corp. reported significant financial changes in its latest 10-Q filing for the second quarter of 2025, reflecting a strategic pivot towards technology-driven real estate services. The company generated revenues of $1.25 million for the three months ending June 30, 2025, a substantial increase of approximately 1,909% compared to $62,353 in the same period last year. For the first half of 2025, revenues reached $2.18 million, up from $82,779 in the prior year. This growth is attributed primarily to contributions from its mortgage brokerage subsidiaries, reAlpha Mortgage and GTG Financial, which collectively generated over $1 million in revenue through loan origination and processing fees.

Despite the revenue surge, reAlpha reported an operating loss of $4.21 million for the second quarter, compared to a loss of $1.21 million in the same quarter of 2024. The increase in operating expenses, which rose to $4.83 million from $1.25 million year-over-year, was driven by higher payroll costs associated with recent acquisitions, marketing expenditures, and professional fees related to capital raising activities. The net loss attributable to controlling interests for the quarter was $4.11 million, or $(0.08) per share, compared to a loss of $1.48 million, or $(0.03) per share, in the prior year.

In terms of strategic developments, reAlpha has transitioned from an asset-heavy operational model focused on short-term rentals to a technology-centric approach aimed at simplifying the homebuying process through its AI-powered platform. The company has made several acquisitions, including GTG Financial and reAlpha Mortgage, which have expanded its service offerings and geographic reach. As of June 30, 2025, the company had approximately 52.36 million shares of common stock outstanding, up from 45.86 million at the end of 2024, reflecting its efforts to raise capital through equity offerings.

Operationally, reAlpha has seen an increase in customer engagement, with its mortgage services now available in 30 U.S. states, and plans to expand its platform nationwide by the end of 2026. The company reported a cash balance of $587,311 as of June 30, 2025, a decrease from $3.12 million at the end of 2024, raising concerns about its liquidity. Management has indicated that it may need to raise additional capital to meet its operational needs, especially given the anticipated continued operating losses in the near term.

Looking ahead, reAlpha's management remains optimistic about the potential for revenue growth driven by its technology services and strategic acquisitions. However, they acknowledge the challenges posed by macroeconomic conditions, including elevated interest rates and inflation, which could impact the housing market and overall business performance. The company is actively seeking to enhance its liquidity through further capital raises and is focused on integrating its acquisitions to drive future profitability.