reAlpha Tech Corp. Reports 4,432% Revenue Growth to $925,635 in Q1 2025

reAlpha Tech Corp. reported significant financial growth in its latest quarterly filing, with revenues reaching $925,635 for the three months ended March 31, 2025, a substantial increase from $20,426 during the same period in 2024. This 4,432% rise in revenue was primarily driven by contributions from its recently acquired subsidiaries, including Be My Neighbor and GTG Financial, which generated $386,594 through mortgage brokerage transactions. The company also reported a gross profit of $518,667, compared to just $2,177 a year earlier. However, operating expenses surged to $2,940,925, up 125% from $1,308,835, largely due to the integration of new businesses and increased payroll costs.

The company’s net loss from continuing operations for the first quarter of 2025 was $2,850,351, compared to a loss of $1,418,206 in the prior year. This increase in losses was attributed to higher operating expenses associated with the integration of acquired companies and increased interest expenses related to its secured promissory note. The company’s total assets grew to $18.54 million as of March 31, 2025, up from $11.99 million at the end of 2024, reflecting its strategic acquisitions and investments in technology.

In terms of operational developments, reAlpha Tech has transitioned from an asset-heavy model focused on short-term rentals to a technology-driven approach centered on its AI-powered homebuying platform, reAlpha. The company has made several strategic acquisitions, including Naamche, AiChat, and GTG Financial, which have expanded its service offerings and market reach. The reAlpha platform is currently available in 20 counties in Florida, with plans for nationwide expansion by the end of 2026, contingent on obtaining necessary licenses and market conditions.

The company’s cash position has also changed, with cash and cash equivalents decreasing to approximately $1.20 million as of March 31, 2025, down from $3.12 million at the end of 2024. Management has indicated that current cash levels may not be sufficient to meet operational needs for the next 12 months, raising concerns about the company’s ability to continue as a going concern. To address this, reAlpha plans to pursue additional capital through equity or debt offerings, although market conditions may pose challenges.

Looking ahead, reAlpha Tech Corp. anticipates continued operating losses as it invests in growth initiatives and integrates its acquisitions. The company remains focused on enhancing its technology offerings and expanding its market presence, with the expectation that these efforts will lead to increased revenue streams in the future. However, management has acknowledged the uncertainty surrounding its ability to raise additional capital and achieve profitability, emphasizing the need for ongoing monitoring of its financial condition and operational strategies.