reAlpha Tech Corp. Reports Revenue Decline and Operating Loss in Q2 2026

reAlpha Tech Corp. reported a decline in revenue for the second quarter of 2026, with total revenues of $1.11 million, down approximately 11% from $1.25 million in the same period last year. For the first half of 2026, revenues totaled $1.95 million, a decrease of about 10% compared to $2.18 million in the first half of 2025. The decrease in revenue was primarily attributed to the absence of contributions from GTG Financial, which was deconsolidated in August 2025, and a shift in service mix. Despite the revenue decline, the company achieved a gross profit of $732,947 for the quarter, reflecting an increase in gross profit margin to 66%, up from 52% in the prior year, largely due to reduced costs associated with the absence of GTG Financial's higher operational costs.

Operating expenses for the second quarter decreased to $3.63 million from $4.71 million year-over-year, driven by lower marketing and advertising costs, as well as reduced professional and legal fees. The company implemented a restructuring plan that included a workforce reduction of approximately 25%, which contributed to a decrease in overall operating expenses. As a result, reAlpha reported an operating loss of $2.90 million for the quarter, an improvement from the $4.09 million loss in the same quarter of 2025. The net loss attributable to common stockholders for the second quarter was $3.09 million, compared to a loss of $4.87 million in the prior year.

In terms of operational metrics, reAlpha's total transaction volume for the trailing twelve months reached approximately $150.4 million, a 70% increase compared to the previous year, driven by the expansion of its mortgage brokerage operations and the integration of Prevu's services. The company reported a significant increase in customer engagement, particularly through its technology services segment, which saw revenue growth from AiChat's subscription-based offerings. As of June 30, 2026, reAlpha had cash and cash equivalents of $2.23 million, a decrease from $7.78 million at the end of 2025, reflecting ongoing cash burn and operational expenditures.

Looking ahead, reAlpha Tech Corp. faces challenges related to its liquidity and ongoing operational losses, raising substantial doubt about its ability to continue as a going concern. The company plans to seek additional capital through debt or equity financing to support its operations and strategic initiatives. Additionally, the proposed merger with InstaMortgage, expected to close by the end of August 2026, aims to enhance its mortgage operations and expand its service offerings. The company remains focused on leveraging its AI-driven platform to improve the homebuying experience while navigating the complexities of the current economic environment.