reAlpha Tech 2025 Q3 Earnings 326% Revenue Surge Amid Widening Net Loss of $5.78M

reAlpha Tech (AIRE) reported a 326% year-over-year revenue increase to $1.45 million in Q3 2025, exceeding estimates, but GAAP EPS of -$0.07 missed expectations by $0.02. The company sustained a net loss of $5.78 million, a 175.5% increase from the prior year.

Revenue

reAlpha Tech’s total revenue surged to $1.45 million in Q3 2025, driven entirely by its technology services segment, which generated the full $1.45 million in revenue. This reflects robust growth in AI-driven real estate and mortgage services, though the company’s revenue mix remains concentrated in a single business line.

Earnings/Net Income

The company’s net loss widened to $5.78 million, or $0.07 per share, compared to a $2.10 million loss ($0.05 per share) in Q3 2024. The EPS shortfall and deteriorating profitability underscore ongoing operational challenges despite top-line growth.

Post-Earnings Price Action Review

The strategy of buying AIRE shares on earnings release dates and holding for 30 days has underperformed significantly over the past three years, with a cumulative return of -44.57% versus the S&P 500’s 31.44%. This poor performance highlights the risks of relying on earnings announcements for timing decisions. Investors may need to explore alternative analysis-based strategies to navigate AIRE’s volatile stock.

CEO Commentary

CEO Michael J. Logozzo attributed the revenue surge to expanded cloud infrastructure adoption but acknowledged margin compression due to elevated R&D and supply chain costs. Strategic priorities include scaling AI-driven analytics and accelerating mortgage automation tools.

Additional News

1. M&A Activity: reAlpha rescinded its acquisition of GTG Financial effective August 21, 2025, limiting the subsidiary’s contribution to Q3 results.

2. Geographic Expansion: The company expanded mortgage operations into Utah and Nevada, appointing Jennifer Buserini to lead Nevada’s market.

3. Nasdaq Compliance: reAlpha regained compliance with Nasdaq’s minimum market value of listed securities (MVLS) on September 22, 2025, after ten consecutive days above the $35 million threshold.

Guidance

The company did not provide formal guidance for future periods but emphasized continued investment in AI tools and geographic expansion to drive long-term value creation.