reAlpha Tech Q2 revenue up 1,909% to $1.3mln, gross profit at $621,465.

• reAlpha Tech Corp. reports Q2 2025 revenue up 1,909% to $1.3mln • Cash at end of Q2 2025 was $587,311, down from $3.7mln in Q2 2024 • Gross profit rose to $621,465, driven by mortgage brokerage transactions • Gross profit margin declined to 50% from 71% YoY • AI-powered real estate technology company saw growth in digital data revenue.

reAlpha Tech Corp. (NASDAQ: AIRE), an AI-powered real estate technology company, reported significant growth in its Q2 2025 financial results. The company's revenue surged by 1,909% to $1.3 million, compared to $62,353 in Q2 2024. This impressive growth was driven by the company's AI-powered Loan Officer Assistant, which reduced loan processing time by 20%, and the expansion into Texas and Utah markets.

However, the company's financial health remains a concern. Cash reserves dropped by 84% to $587,311, indicating a severe cash burn rate. The net loss widened to $4.1 million from $1.5 million year-over-year, and the gross margin contracted substantially from 71% to 50%. Despite the gross profit rising to $621,465, the adjusted EBITDA loss more than tripled to $3.5 million, suggesting deteriorating operational efficiency.

The company's strategic pivot towards scaling AI-powered mortgage processing capabilities is evident. The appointment of Mike Logozzo as CEO and the launch of the Loan Officer Assistant are key developments aimed at enhancing operational efficiency. However, the aggressive geographic expansion and widening losses raise concerns about the company's growth-at-all-costs approach.

The company's financial fundamentals indicate a need for immediate action to address the unsustainable cash burn rate. The full repayment of its $4.47 million secured promissory note to Streeterville Capital, including a 9% prepayment penalty, has significantly constrained available working capital.

Piyush Phadke, Chief Financial Officer of reAlpha, commented, “We believe that our second quarter’s performance demonstrates the scalability of our platform strategy and reflects the significant traction we are beginning to achieve across our real estate and mortgage operations.” He added, “We remain focused on balancing our growth with fiscal discipline as we commercialize our AI infrastructure and position reAlpha for long-term value creation.”

While the impressive revenue growth is encouraging, the financial strain and operational challenges highlight the need for careful analysis and strategic adjustments. The company's ability to sustain its growth trajectory while addressing its cash flow issues will be a critical factor for investors to monitor.

[1] https://www.stocktitan.net/news/AIRE/re-alpha-tech-corp-announces-1-909-year-over-year-revenue-growth-for-bnmkqqe2eymq.html