reAlpha Tech Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was approximately $1.1 million for the quarter ended June 30, 2026, a 11% decrease from $1.3 million in the second quarter of 2025.
• Homebuying Services segment revenue was approximately $0.8 million, down 20% from $1.0 million in the prior-year period, partially offset by revenue from reAlpha Mortgage and Prevu following their November 2025 acquisition.
• Technology Services segment revenue increased 30% to approximately $0.3 million from $0.2 million in the prior-year period.
• Gross profit increased to approximately $0.7 million from $0.6 million in the second quarter of 2025.
• Gross profit margin for the six months ended June 30, 2026, was 66%, up from 52% for the same period in 2025.
• Net loss narrowed to approximately $3.0 million in the second quarter of 2026, compared to $4.8 million in the second quarter of 2025.
• Adjusted EBITDA improved to approximately $(2.3) million in the second quarter of 2026, compared to $(3.5) million in the second quarter of 2025.
• Cash and cash equivalents increased 280% to approximately $2.2 million as of June 30, 2026, from $0.6 million as of June 30, 2025.
• Total transaction volume increased approximately 70% to $150.4 million for the trailing twelve months ended June 30, 2026, compared to $88.4 million for the trailing twelve months ended June 30, 2025.
• Operating expenses declined approximately 23% year-over-year in the second quarter of 2026.
• Deferred revenue was $256,713 as of June 30, 2026, down from $396,227 as of December 31, 2025.

Guidance and Future Outlook

• The company anticipates closing the InstaMortgage acquisition by the end of August 2026, subject to customary closing conditions.
• Management intends to move forward with a leaner organization and a more focused mortgage strategy following the InstaMortgage acquisition.
• The company aims to convert the growing level of total transaction volume activity into stronger financial performance.
• Management expects return-driven spending initiatives implemented in May to generate approximately $2 million in annualized savings.

Business Segments and Product Lines

• The Homebuying Services segment revenue was impacted by the absence of GTG Financial revenue recognized in Q2 2025 prior to the rescission of that acquisition on August 21, 2025.
• The Technology Services segment growth was driven by the continued expansion of AiChat's subscription-based platform.
• AiChat launched conversational commerce and AI-powered ticketing capabilities for business clients.
• reAlpha Mortgage launched a Flat Fee Compensation Model to support national loan originator recruitment and build a scalable production network.
• The InstaMortgage acquisition, if completed, will add direct lending, in-house underwriting, and funding capabilities, expanding the mortgage footprint to 38 states and Washington, D.C.

Market and Competitive Landscape

• The company operates in a housing market described as sensitive to rates and affordability.
• reAlpha Mortgage expanded its footprint through the integration of Prevu and the planned acquisition of InstaMortgage.
• AiChat received two Silver Awards at the Hashtag Asia Awards 2026 for its work with Senoko Energy, including Best Use of AI and Best Social Media Use of Emerging Technologies.

Risks and Challenges

• The company faces risks related to the health of the U.S. residential real estate industry and general economic conditions.
• Risks include the ability to secure adequate financing, maintain liquidity, and realize anticipated cost savings from the restructuring plan.
• The company must maintain compliance with Nasdaq's continued listing rules.
• Challenges include the ability to generate additional sales from access to U.S. state brokerage licenses and the successful integration of acquired businesses.
• Risks specific to AI-based technologies include potential inaccuracies, bias, regulatory restrictions, and data privacy concerns.
• The company faces risks related to the potential loss of key employees and the outcome of outstanding legal proceedings.

Management Commentary and Tone

• Thomas Kutzman, CFO, stated the company made deliberate changes to optimize headcount, simplify the business, and rationalize vendor relationships to focus on areas with clear returns.
• Mike Logozzo, CEO, emphasized that the quarter was about "earning the right to scale" by making difficult decisions to sharpen priorities and concentrate resources on businesses with the clearest path to revenue and stronger economics.
• Management indicated the goal is not to own more of the homebuying transaction for its own sake, but to ensure every capability produces more value for the customer and the company.

Other Key Points

• The company regained compliance with Nasdaq's minimum bid price requirement on May 14, 2026, after maintaining a closing bid price of at least $1.00 per share for ten consecutive business days.
• A restructuring plan was implemented in the second quarter of 2026, including a reduction of approximately 25% of the global workforce and the rationalization of certain third-party vendor relationships.
• The GTG Financial acquisition was rescinded on August 21, 2025.
• The company received proceeds from warrant exercises and capital raised during the second half of 2025.
• Non-cash stock-based compensation was $715,457 for the six months ended June 30, 2026.
• The company incurred $68,244 in restructuring costs during the second quarter of 2026.