Form 8-K
8-K — reAlpha Tech Corp.
Accession: 0001213900-26-048245
Filed: 2026-04-28
Period: 2026-04-23
CIK: 0001859199
SIC: 6500 (REAL ESTATE)
Item: Results of Operations and Financial Condition
Item: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
Item: Financial Statements and Exhibits
Documents
8-K — ea0287658-8k_realpha.htm (Primary)
EX-10.1 — AMENDED AND RESTATED 2025 SHORT-TERM INCENTIVE PLAN (ea028765801ex10-1.htm)
EX-99.1 — PRESS RELEASE, DATED APRIL 28, 2026 (ea028765801ex99-1.htm)
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8-K — CURRENT REPORT
8-K (Primary)
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UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 or 15(d) of the
Securities Exchange
Act of 1934
Date of Report (date
of earliest event reported): April 23, 2026
reAlpha Tech Corp.
(Exact name of registrant
as specified in its charter)
Delaware
001-41839
86-3425507
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification Number)
6515 Longshore Loop,
Suite 100, Dublin, OH 43017
(Address of principal
executive offices and zip code)
(707) 732-5742
(Registrant’s
telephone number, including area code)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered
pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.001 per share
AIRE
The Nasdaq Stock Market LLC
Indicate by check mark
whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☒
If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On
April 28, 2026, reAlpha Tech Corp. (the “Company”) issued a press release regarding its financial results and business highlights
for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this
“Form 8-K”).
The
Company is making reference to non-U.S. GAAP financial information in the press release. A reconciliation of U.S. GAAP to non-U.S. GAAP
results is provided in the attached Exhibit 99.1 press release.
The
information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act,
except as expressly set forth by specific reference in such a filing.
Item 5.02. Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Amended and Restated
2025 Short -Term Incentive Plan
As
previously disclosed on the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”),
the compensation committee of the Company’s board of directors (the “Compensation Committee”) approved the Company’s
2025 Short-Term Incentive Plan (the “STIP”) on February 4, 2025. The STIP’s existing terms are described in the section
titled “Item 11. Executive Compensation – Equity-Based Compensation – 2025 Short Term Incentive Plan” of
the Form 10-K, which description is incorporated herein by reference.
On
April 23, 2026, the Compensation Committee approved and adopted the amended and restated STIP (the “A&R STIP”), which
amends and restates the STIP in its entirety. The amendments effected by the A&R STIP modify the performance targets set forth therein
and the method of computation of the issuance value of any performance-based restricted stock unit awards granted thereunder (each, an
“Award”). There were no other changes to the STIP in connection with the adoption of the A&R STIP except as described
herein.
Generally,
participants may earn Awards pursuant to the A&R STIP based on the Company’s achievement of certain pre-determined quarterly
performance targets for three different performance target categories for each fiscal quarter, which are approved by the Compensation
Committee at the beginning of each fiscal year but may be adjusted on a fiscal quarterly basis at the Compensation Committee’s sole
discretion during the fiscal year depending on the Company’s results. Under the A&R STIP, the Compensation Committee approved
the following quarterly performance targets: (i) revenue achieved by the Company; (ii) the platform handoff rate, which relates
to the efficiency of the post-acquisition integrations, operations functionality, and platform updates to create a product that is closer
to end-to-end; and (iii) the quality of corporate development transactions consummated by the Company during the fiscal quarter, as determined
in the sole discretion of the Compensation Committee. Further, the A&R STIP provides that the Awards issuable thereunder will have
an issuance value computed based on the 10-day volume weighted average closing price of the Company’s common stock, par value $0.001
per share, as reported on The Nasdaq Stock Market LLC, for the ten (10) days prior to and including the applicable grant date of each
Award.
The
foregoing description of the A&R STIP is not complete and is qualified in its entirety by reference to the full text of the A&R
STIP, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
1
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit
Number
Description
10.1+
Amended and Restated 2025 Short-Term Incentive Plan.
99.1*
Press Release, dated April 28, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
*
Furnished herewith.
+
Agreement with management or compensatory plan
or arrangement.
2
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: April 28, 2026
reAlpha Tech Corp.
By:
/s/ Michael J. Logozzo
Michael J. Logozzo
Chief Executive Officer
3
EX-10.1 — AMENDED AND RESTATED 2025 SHORT-TERM INCENTIVE PLAN
EX-10.1
Filename: ea028765801ex10-1.htm · Sequence: 2
Exhibit 10.1
reAlpha 2025 Amended and Restated Short-Term
Incentive Plan
Last Updated: April 23, 2026
1)
GUIDING PRINCIPLES
The 2025 Amended and Restated Short-Term Incentive
Plan (“STIP”), which amends and restates the 2025 Short-Term Incentive Plan in its entirety, represents an important component
of the total rewards philosophy of reAlpha Tech Corp. (“reAlpha”). The STIP provides quarterly equity incentives (“STIP
Awards”) for the achievement of reAlpha annual objectives in alignment with the following guiding principles:
a.
Offer competitive rewards that attract, motivate and retain best talent
b.
Drive superior execution of annual operational plans as part of long-term value creation
c.
Provide the right balance between operational measures to ensure appropriate focus and collaboration across reAlpha
2)
ELIGIBILITY
All of our executive officers, any other executive
officer role that may be created from time to time, and employees and consultants selected by the Compensation Committee (the “Compensation
Committee”) of reAlpha’s Board of Directors (the “Board”) are eligible to participate in the STIP (each, a “Participant,”
and collectively, the “Participants”). The Participants are eligible upon the first date of hire or promotion and must be
employed by reAlpha, or one of its subsidiaries, at the time of a Payout (as defined below) to qualify for a quarterly STIP Award, unless
otherwise provided in an agreement between the Participant and/or one of its subsidiaries.
3)
PLAN TIME FRAME
The STIP time frame is split into quarterly periods,
aligning with the reAlpha fiscal year, which starts on January 1 and finishes on December 31.
Period 1: January 1 - March 31
Period 2: April 1 - June 30
Period 3: July 1 - September 30
Period 4: October 1 - December 31
Hereafter each referred to as (a “Payment
Period” or collectively, the “Payment Periods”).
4)
COMPONENTS AND PAYOUT DETERMINATION
(A)
STIP Award Components
The STIP Awards are a function of the Participant’s
annual salary, Incentive Target and STIP Payout Factor (each as defined below, and collectively, the “Payout Multipliers”):
Incentive Target (% of Annual Base Salary)
The incentive target is expressed as a percentage
of annual base salary for each Participant as set by the Compensation Committee, considering the Participant’s position with reAlpha,
corresponding responsibilities and scope of such position and competitive market data (the “Incentive Target”).
STIP Payout Factor
The payout factor is determined by the level of
reAlpha performance for the Payment Period (the “STIP Payout Factor”). reAlpha’s performance level during the Payment
Period will be assessed through three performance target categories (each, a “Performance Target Category,” and collectively,
the “Performance Target Categories”), consisting of: (i) revenue achieved by reAlpha, (ii) the platform handoff rate, and
(iii) the corporate development quality of transactions consummated by reAlpha, as determined in the sole discretion of the Compensation
Committee. These Performance Target Categories are set by the Compensation Committee at the beginning of the fiscal year, but can be changed
quarterly depending on reAlpha’s results and priorities. The actual STIP Payout Factor achieved can range from 0% to 500%.
Performance Target Category Percentage Weight
Each Performance Target Category is assigned a
different percentage weight for each Participant, depending on the Participant’s scope of responsibility, which percentage weights
will add up to 100% for any given fiscal quarter. STIP Awards for Participants with corporate responsibilities or those spanning all divisions
are based solely on reAlpha consolidated growth performance, whereas the STIP Awards for division presidents are tied to both their respective
division and consolidated reAlpha financial performance. This is to ensure appropriate balance between line of sight and common shared
objectives. The Compensation Committee determines the respective percentage weights for each Participant and each Performance Target Category
at the beginning of each fiscal year, subject to change by the Compensation Committee on a fiscal quarterly basis depending on reAlpha’s
results.
(B)
Payout Determination
Following the Payment Period end, a STIP Payout
Factor is determined by the Compensation Committee according to the level of performance achieved for each measure and its respective
weighting. STIP Payout Factors for financial measures are determined by calculating the percent achievement of actual financial results
compared to the targets set by the Compensation Committee at the beginning of the fiscal year, as those may be adjusted from time to time.
STIP Payout Factors that are subjective are determined at the sole discretion of the Compensation Committee’s evaluations of such
Payout Multiplier.
Payout Calculation
Once the Payout Multipliers are determined, including
the STIP Payout Factor for each Performance Target Category, the actual quarterly payout amount per Performance Target Category is calculated
using the formula below (each, a “Payout,” and collectively, the “Payouts”):
Quarterly Payout per Performance Target
Category = (Annual Base Salary/4) * Incentive Target (% of Annual Base Salary) * STIP Payout Factor * Performance Target Category Percentage
Weight
Each Payout will be paid in reAlpha’s restricted
stock units (“RSUs”) under reAlpha’s 2022 Equity Incentive Plan, as amended from time to time, or any successor or replacement
plan adopted by the Board and approved by the stockholders of reAlpha, that will be subject to a vesting period set forth in Section 6
herein. The RSU issuance price will be the 10-day volume weighted average closing price of reAlpha’s common stock, par value $0.001
per share, as reported on The Nasdaq Stock Market LLC (“Nasdaq”) for the 10 days prior to and including the Grant Date (as
defined below).
2
5)
CLAWBACK
The Compensation Committee may, in its sole discretion,
to the full extent permitted by applicable federal, state, provincial and other local law and to the extent it determines it is in the
best interests of reAlpha to do so in accordance with reAlpha’s Clawback Policy currently in effect (or any successor or replacement
plan adopted by the Board) (the “Clawback Policy”), require reimbursement of all or a portion of the STIP Award received by
a Participant or a former Participant under certain conditions.
6)
ADMINISTRATIVE PROVISIONS
New Hires
The STIP Awards for Participants hired by reAlpha
during the Payment Period are prorated based on the number of days of active employment during such Payment Period, specifically from
the Participant’s date of hire until the last day of the Payment Period.
Promotion or Transfer
If a Participant is promoted or transferred to
another executive officer position eligible under the STIP that has different Payout Multipliers, a STIP Award for each role will be calculated
in accordance with Section 4 herein with respect to such role and then prorated for the time worked in each position.
Termination
If a Participant resigns (leaves voluntarily)
or is terminated for any reason prior to the Grant Date of a Payout, such Participant is not eligible to receive any Payout, unless otherwise
provided in an agreement between the Participant and reAlpha or one of its subsidiaries.
Disability and Leave of Absence
If a Participant leaves on short or long-term
disability during the Payment Period or approved leave of absence, the Payouts, if any, will be pro-rated based on actual time worked
during the Payment Period.
Grant Date
The date of grant of any STIP Awards for a given
fiscal quarter will be 30 calendar days after the last calendar day of such fiscal quarter (the “Grant Date”), or if such
date is a non-Trading Day (defined below), the Trading Day immediately prior to such date of grant. The Board retains the right, in its
sole and exclusive discretion, to review, modify and adjust targets and results and reduce individual Payouts earned under the STIP. For
purposes herein, “Trading Day” means any day on which Nasdaq is open for the transaction of business, excluding weekends and
public holidays on which trading is suspended or closed.
Vesting Schedule
The STIP Awards earned in a fiscal quarter, if
any, will vest as follows: (i) 50% will vest on the date that is 12 months from the date of grant, (ii) 12.5% will vest on the date that
is 15 months from the date of grant, (iii) 12.5% will vest on the date that is 18 months from the date of grant, (iv) 12.5% will vest
on the date that is 21 months from the date of grant and (v) 12.5% will vest on the date that is 24 months from the date of grant.
3
Administration
The Compensation Committee shall have full power
to administer and interpret the STIP and, in its sole discretion, may establish or amend rules of general application for the administration
of the STIP.
No Assignment
No STIP Award may be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by a Participant other than by will or the laws of descent and distribution.
Unfunded Plan
The STIP shall at all times be entirely unfunded
and no provision shall at any time be made with respect to segregating assets of reAlpha or any of its subsidiaries for payment of any
amounts hereunder. No Participant, beneficiary, or other person shall have any interest in any particular assets of reAlpha or any of
its subsidiaries by reason of the right to receive any STIP Award under the STIP. To the extent that any Participant acquires a right
to receive any payment pursuant to a STIP Award, such right shall be no greater than the right of any general unsecured creditor of reAlpha
and its subsidiaries.
Governing Law
The STIP shall be construed in accordance with
the laws of Delaware, without giving effect to principles of conflict of laws.
Tax Requirements
reAlpha or an applicable subsidiary of reAlpha
shall have the power and the right to deduct or withhold, or require a Participant to remit, an amount sufficient to satisfy applicable
taxes and mandatory government deductions required by law to be withheld with respect to any STIP Award payment to a Participant.
7)
CONDUCT OF BUSINESS
No Payout shall be earned, due or payable unless
the Participant has at all times fully complied with the requirements of this Section 7.
a.
Every Participant eligible for awards under the STIP is expected to perform his/her job functions in a professional manner and in a way that reflects positively on reAlpha.
b.
All Participants must comply with all of reAlpha’s policies at all times, and abide by reAlpha’ Code of Business Conduct & Ethics (the “Code of Conduct”) available in the company handbook in all business activities. The Code of Conduct is subject to update from time to time. Each Participant may be asked periodically to review and reaffirm the Code of Conduct and is expected to do so promptly.
c.
The failure of a Participant to comply with reAlpha’s policies or its Code of Conduct, or any action taken by a Participant to the detriment of reAlpha or a customer or business partner, may result in forfeiture of all Payouts, as determined by the Compensation Committee.
d.
Each Participant must fully comply with the terms of his or her employment agreement or other agreement relating to the terms of employment or relating to restrictive covenants or the treatment of intellectual property and confidential information.
e.
The rights with respect to any award granted pursuant to the STIP of each Participant who is subject to the Clawback Policy shall in all events be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any right that reAlpha may have under the Clawback Policy, or (iii) any other agreement or arrangement with a Participant, or (iii) applicable law.
4
8)
LOCAL LAWS
Sections 4, 5, 6 and 7 are subject to and may
be superseded by the local laws of the country and/or state in which the Participant resides.
9)
DISCLAIMER
Nothing in the STIP implies contractual agreement
nor should be interpreted as a guarantee of continued employment or interfere with or restrict in any way the right of reAlpha or any
of its subsidiaries to discharge any Participant at any time (subject to any contract rights of such Participant). reAlpha reserves the
right to amend, modify, suspend, or discontinue the STIP at any time and for any reason in whole or in parts, in its sole and exclusive
discretion.
10)
SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE U.S. INTERNAL REVENUE CODE
Note: This section is applicable only to the Participants
subject to taxation in the U.S.
This section sets forth special provisions of
the STIP intended to be compliance with Section 409A of the United States Internal Revenue Code of 1986, as amended. It is intended that
the provisions of the STIP comply with or are exempt from Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”),
and all provisions of the STIP will be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties
under Section 409A of the Code. reAlpha cannot make any representations or guarantees with respect to compliance with such requirements,
and it and/or any affiliate will not have any obligation to indemnify a Participant or otherwise hold him/her harmless from any or all
of such taxes or penalties. For purposes of Section 409A of the Code, each installment payment, as applicable hereunder will be deemed
a “separate payment” within the meaning of Treas. Reg. Section 1.409A-2(b)(iii). With respect to the timing of payments of
any deferred compensation payable upon a termination of employment hereunder, references in this document to “termination of employment”
(and substantially similar phrases) mean “separation from service” within the meaning of Section 409A of the Code.
Notwithstanding anything in the STIP Plan to the
contrary, if, at the time of termination of employment hereunder, the Participant is deemed to be a “specified employee” of
reAlpha and/or any affiliate within the meaning of Section 409A of the Code, then (a) only to the extent necessary to comply with the
requirements of Section 409A of the Code, any payments to which the Participant is entitled under the STIP in connection with such termination
that are subject to Section 409A of the Code (and not otherwise exempt from its application) that constitute “nonqualified deferred
compensation” for purposes of Section 409A shall be withheld until the first business day of the seventh month following the date
of such termination (the “Delayed Payment Date”), (b) on the Delayed Payment Date, the Participant shall receive a lump sum
payment in an amount equal to the aggregate amount of such payments that otherwise would have been made to the Participant prior to the
Delayed Payment Date and (c) following the Delayed Payment Date, the Participant shall receive the payments otherwise due to the Participant
in accordance with the payment terms and schedule set forth herein.
Separate Payments. For purposes of Section
409A of the Code, each payment that may be made to a Participant pursuant to the STIP is designated as a “separate payment”
for purposes of Treas. Reg. Section 1.409A-2(b)(iii).
Amendment of This Section
The Board shall retain the power and authority
to amend or modify this section to the extent the Board in its sole discretion deems necessary or advisable to comply with any guidance
issued under Section 409A. Such amendments may be made without the approval of any Participant.
5
EX-99.1 — PRESS RELEASE, DATED APRIL 28, 2026
EX-99.1
Filename: ea028765801ex99-1.htm · Sequence: 3
Exhibit 99.1
reAlpha (Nasdaq: AIRE) Reports First-Quarter
2026 Financial Results
Platform enters spring homebuying season with
broader service coverage, a newly launched Homebuying Hub, and Total Transaction Volume that more than doubled year-over-year
DUBLIN, OH – April. 28 2026 (GLOBE NEWSWIRE)
– reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company,
today announced financial results for the first quarter ended March 31, 2026.
Financial Highlights
(All figures are approximate and compared to
Q1 2025 unless otherwise stated)
● Revenue decreased 9% to $0.8 million in the first quarter of 2026, compared to $0.9 million in the first
quarter of 2025.
○ Homebuying Services Segment revenue was $0.6 million, compared to $0.8 million in the prior year period, reflecting contributions
from reAlpha Mortgage and Prevu, which was acquired in November 2025, and partially offset by the absence of revenue generated by GTG
Financial following the rescission of the acquisition in August 2025.
○ Technology Services Segment revenue was $0.3 million, compared to $0.2 million in the prior year period,
driven by growth in AiChat’s subscription-based platform and related services.
● Cash and cash equivalents increased 288% to $4.7 million as of March 31, 2026, compared to $1.2 million
as of March 31, 2025, primarily reflecting capital raised during 2025, including proceeds from warrant exercises.
● Gross profit increased to $0.6 million, up from $0.5 million in the first quarter of 2025. Gross margin
increased to 66% from 56% in the first quarter of 2025, primarily reflecting a higher contribution from AiChat’s technology services,
which carry higher gross margins than the Company’s real estate and mortgage operations.
● Adjusted EBITDA was $(3.8) million, compared to $(2.0) million in the first quarter of 2025, primarily
reflecting the full-quarter impact of operating expenses from recently acquired businesses, the use of marketing credits from the media-for-equity
transaction with Mercurius Media and higher operating expenses year-over-year.
● Net loss was $4.3 million in the first quarter of 2026, compared to $2.9 million in the first quarter
of 2025.
● Total Transaction Volume increased by 119% to $131.3 million, compared to $59.9 million in Q1 2025. Total
Transaction Volume reflects the aggregate dollar value of brokerage, mortgage and title transactions facilitated through the reAlpha platform
on a trailing twelve-month basis.
“Our first quarter results reflect continued progress in scaling the reAlpha platform alongside a more dynamic housing market environment.
While revenue declined year-over-year, we delivered strong growth in total transaction volume and improved gross margins, supported by
the performance of our core homebuying and technology services,” said Thomas Kutzman, Chief Financial Officer of reAlpha. “As
the quarter progressed, a combination of interest rate volatility and broader market uncertainty influenced homebuyer activity, contributing
to a more selective and timing-sensitive buyer environment. In this context, execution and efficiency across the platform are critical.
We are focused on improving coordination throughout the homebuying journey, strengthening conversion, and positioning the business for
future growth.”
Business Highlights
During Q1 2026, reAlpha
advanced a set of operating priorities aimed at increasing service coordination, clarifying the buyer value proposition, and improving
readiness for the spring homebuying season:
● Launched Homebuying Hub to coordinate
the buy-side journey across search, financing, and closing. The centralized platform
brings simplified structure to the transaction process by helping buyers navigate key milestones
through a more unified experience. reAlpha believes that the launch of the Hub is an important
step toward improving customer continuity across the full homebuying journey.
● Introduced enhanced “Make an Offer” functionality to streamline the transition from search
to transaction. The updated workflow gives buyers a clearer path into the offer stage and helps reduce friction at a critical point
in conversion. This improvement is part of reAlpha’s ongoing effort to simplify execution across high-intent moments in the buying
process.
● Improved multi-service onboarding and customer progression flows to support a more coordinated cross-service
experience. reAlpha continued refining how customers move between real estate, financing, and related transaction milestones on the
platform. The result is intended to be a more connected experience that better supports engagement across multiple services.
● Upgraded the Multiple Listing
Service data pipeline to improve listing sync and platform responsiveness. Faster listing
updates help ensure that users are seeing more current information as they search and evaluate
homes. The enhancement is also expected to strengthen the reliability of the platform during
periods of active customer engagement.
● Appointed Thomas Kutzman as Chief Financial Officer to oversee financial operations, capital strategy,
and key corporate functions. Mr. Kutzman’s appointment provides senior financial leadership as reAlpha continues to scale its
platform, integration efforts, and public-company infrastructure. reAlpha expects his leadership to support operational discipline, financial
oversight, and execution across key strategic initiatives.
● Embedded agentic AI into core back-office workflows across Operations, M&A, Marketing, Strategy,
and Research. These workflow initiatives are intended to improve how teams manage planning, diligence, coordination, and decision-making
across the organization. reAlpha believes this internal AI layer can help the business scale more efficiently while maintaining execution
speed.
“As we navigate current market headwinds, we are seeing our platform strategy translate into real momentum, with total transaction
volume more than doubling year over year as we expand our service coverage and better coordinate real estate, mortgage, and title,”
said Mike Logozzo, Chief Executive Officer of reAlpha. “During the quarter, we focused on making a better homebuying model more
tangible, with a clearer savings proposition, a more organized path from search through financing, and continued progress in how the buyer
journey works together. In a market where affordability is stretched and buyers are more selective, we believe the long-term winner will
be the company that makes homebuying easier, more trustworthy, and more affordable for the customer.”
About reAlpha Tech Corp.
reAlpha Tech Corp. (Nasdaq:
AIRE) is an AI-powered real estate technology company that aims to transform the multi-trillion-dollar U.S. real estate services market.
reAlpha is developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title
services. With a strategic, acquisition-driven growth model and proprietary AI infrastructure, reAlpha is building a vertically integrated
ecosystem designed to deliver a simpler, smarter, and more affordable path to homeownership. For more information, visit www.realpha.com.
2
Forward-Looking Statements
The information in this
press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein,
including statements by reAlpha’s Chief Executive Officer, Mike Logozzo, and reAlpha’s Chief Financial Officer, Thomas Kutzman,
are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”,
“could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”,
“forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”,
“believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations
of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are
not limited to: reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; the
health of the U.S. residential real estate industry and changes in general economic conditions; reAlpha’s ability to pay contractual
obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s ability
to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) and maintain compliance with all Nasdaq
listing rules; reAlpha’s ability to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2);
reAlpha’s ability to generate additional sales or revenue from having access to, or obtaining, additional U.S. states brokerage licenses;
whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability
to commercialize its developing AI-based technologies; reAlpha’s ability to translate improvements to its platform and homebuying
journey into increased revenue; reAlpha’s ability to integrate the business of its acquired companies into its existing business
and the anticipated demand for such acquired companies’ services; reAlpha’s ability to successfully enter new geographic markets
and to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees
of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings or any legal proceedings that may be instituted
against reAlpha; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or
its subsidiaries, operate in, or intend to operate in; the inability to maintain and strengthen reAlpha’s brand and reputation;
reAlpha’s ability to enhance its operational efficiency, improve cross-functional coordination and support the reAlpha platform’s
continued growth through the implementation of new internal processes and initiatives, including upgrades thereto; reAlpha’s ability
to continue attracting loan officers and maintain its relationship with its REALTOR® affiliate to expand its operations nationally;
any accidents or incidents involving cybersecurity breaches and incidents; the availability of rebates, which may be limited or restricted
by state law; risks specific to AI-based technologies, including potential inaccuracies, bias, or regulatory restrictions; risks related
to data privacy, including evolving laws and consumer expectations; the inability to accurately forecast demand for AI-based real estate-focused
products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability
of reAlpha’s customers to pay for reAlpha’s services; reAlpha’s ability to obtain additional financing or access the
capital markets on acceptable terms and conditions in the future; changes in applicable laws or regulations, including with respect to
the real estate market, AI and AI technologies, and the impact of the regulatory environment and complexities with compliance related
to such environment; reAlpha’s ability to effectively compete in the real estate and AI industries; and other risks and uncertainties
indicated in reAlpha’s filings with the U.S. Securities and Exchange Commission (the “SEC”). Forward-looking statements
are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements.
Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance
that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ
materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual
results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about
the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put
undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
Media Contact:
Cristol Rippe, Chief
Marketing Officer
media@realpha.com
Investor Relations
Contact:
Adele Carey, VP of Investor
Relations
InvestorRelations@reAlpha.com
3
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2026 (Unaudited) and December 31,
2025
March 31,
2026,
December 31,
2025
ASSETS
Current Assets
Cash
$ 4,667,612
$ 7,783,529
Accounts receivable, net
91,610
68,148
Pre-paid expenses
353,958
961,411
Other current assets
237,385
362,293
Escrow deposit
500,000
600,000
Total current assets
5,850,565
9,775,381
Property and Equipment, at cost
Property and equipment, net
$ 103,165
$ 64,626
Other Assets
Investments
59,417
111,646
Intangible assets, net
4,164,833
4,306,553
Goodwill
7,459,125
7,459,125
TOTAL ASSETS
$ 17,637,105
$ 21,717,331
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable
$ 551,533
$ 306,216
Related party payables
5,622
5,654
Short term loans - related parties -current portion
72,046
86,585
Short term loans - unrelated parties -current portion
186,839
209,601
Accrued expenses
325,274
660,577
Deferred liabilities- current portion
1,242,466
1,960,850
Deferred revenue
363,618
396,227
Total current liabilities
$ 2,747,398
$ 3,625,710
Long-Term Liabilities
Derivative liability
4,602,480
4,574,980
Other long-term loans - unrelated parties - net of current portion
71,630
88,411
Deferred liabilities - net of current portion
577,836
561,740
Contingent consideration
326,527
344,877
Total liabilities
$ 8,325,871
$ 9,195,718
Mezzanine Equity
Preferred Stock, $0.001 par value; 5,000,000 shares authorized, of which 1,000,000 shares are designated as Series A Convertible Preferred Stock; 256,125 and 250,000 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively.
1,057,500
1,020,377
Stockholders’ Equity
Common stock ($0.001 par value; 200,000,000 shares authorized, 134,118,789 and 131,740,675 shares outstanding as of March 31, 2026; and December 31, 2025, respectively.
134,119
131,741
Additional paid-in capital
68,588,279
67,466,893
Accumulated deficit
(60,356,156 )
(55,980,534 )
Accumulated other comprehensive (loss)
(123,538 )
(127,889 )
Total stockholders’ equity of reAlpha Tech Corp.
8,242,704
11,490,211
Non-controlling interests in consolidated entities
11,030
11,025
Total stockholders’ equity
8,253,734
11,501,236
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
$ 17,637,105
$ 21,717,331
4
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
and Comprehensive Loss
For the Three Months Ended March 31, 2026 and
2025 (Unaudited)
March 31,
2026
March 31,
2025
Revenues
$ 841,062
$ 925,635
Cost of revenues
288,797
406,968
Gross Profit
552,265
518,667
Operating Expenses
Wages, benefits and payroll taxes
2,128,488
1,060,104
Marketing and advertising
1,261,980
518,939
Professional and legal fees
727,632
742,159
Depreciation and amortization
165,202
179,149
Other operating expenses
549,621
440,574
Total operating expenses
4,832,923
2,940,925
Operating Loss
(4,280,658 )
(2,422,258 )
Other Expense (Income)
Changes in fair value of contingent consideration
(18,350 )
93,000
Interest expense, net
24,680
205,063
Change in fair value of derivative liability
27,500
-
Other expense, net
24,007
129,846
Total other expense
57,837
427,909
Net Loss from continuing operations before income taxes
(4,338,495 )
(2,850,167 )
Income tax (expense) benefit
-
-
Net Loss from continuing operations
(4,338,495 )
(2,850,167 )
Net Loss
$ (4,338,495 )
$ (2,850,167 )
Less: Net Income (Loss) Attributable to Non-Controlling Interests
5
(409 )
Net Loss Attributable to Controlling Interests
$ (4,338,500 )
$ (2,849,758 )
Preferred stock dividend
37,123
$ 184
Net Loss Attributable to Common Stockholders
$ (4,375,623 )
$ (2,849,942 )
Other comprehensive income
Foreign currency translation adjustments
4,351
(11,931 )
Total other comprehensive (Loss) income
4,351
(11,931 )
Comprehensive Loss Attributable to Common Stockholders
$ (4,371,272 )
$ (2,861,873 )
Basic loss per share
Continuing operations
$ (0.03 )
$ (0.06 )
Net Loss per share — basic
$ (0.03 )
$ (0.06 )
Diluted loss per share
Continuing operations
$ (0.03 )
$ (0.06 )
Net Loss per share — diluted
$ (0.03 )
$ (0.06 )
Weighted-average outstanding shares — basic
132,384,827
45,913,591
Weighted-average outstanding shares — diluted
132,384,827
45,913,591
5
reAlpha Tech Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2026, and
2025 (unaudited)
For the
Three Months Ended
For the
Three Months Ended
March 31,
2026
March 31,
2025
Cash Flows from Operating Activities:
Net Loss
$ (4,338,495 )
$ (2,850,167 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
165,202
179,149
Amortization of loan discounts and origination fees
-
72,501
Common stock issued to non-employee
3,115
-
Stock based compensation - employees
340,848
78,355
Change in fair value of contingent consideration
(18,350 )
93,000
Non-cash commitment fee expenses
-
125,000
Change in fair value of derivative liability
27,500
-
Non-cash marketing and advertising
593,429
-
Interest expense on deferred consideration
-
-
Loss from equity method investment
2,229
872
Changes in operating assets and liabilities
Accounts receivable
(28,965 )
17,732
Receivable from related parties
-
5,465
Pre-paid expenses
14,024
(3,810 )
Other current assets
224,908
(7,160 )
Accounts payable
245,317
184,803
Payable to related parties
(32 )
93
Accrued expenses
(387,081 )
(187,813 )
Deferred liabilities
65,208
-
Deferred revenue
(32,609 )
24,877
Total adjustments
1,214,743
583,064
Net cash used in operating activities
(3,123,752 )
(2,267,103 )
Cash Flows from Investing Activities:
Additions to property and equipment
(47,334 )
(13,665 )
Cash paid for acquisitions, net
-
349,529
Cash used for additions to capitalized software
(16,476 )
(91,310 )
Net cash (used in) provided by investing activities
(63,810 )
244,554
Cash Flows from Financing Activities:
Proceeds from issuance of debt- related parties
-
155,481
Proceeds from issuance of common stock
131,341
231,235
Payments of debt
(54,083 )
(283,711 )
Equity issuance expenses
(5,191 )
-
Net cash provided by financing activities
72,067
103,005
Net decrease in cash
(3,115,495 )
(1,919,544 )
Effect of exchange rate changes on cash
(422 )
-
Cash - Beginning of Period
7,783,529
3,123,944
Cash - End of Period
$ 4,667,612
$ 1,204,400
Supplemental disclosure of cash flow information
Interest expense
$ (6,659 )
-
Non-cash Investing and Financing Activities:
Series A Convertible Preferred Stock issuance - MMC
-
5,000,000
Series A Convertible Preferred Stock issuance - GTG Financial
-
284,992
Deferred cash payments - GTG Financial
-
1,344,750
Deferred issuance of common stock - GTG Financial
-
1,287,000
Deferred issuance of common stock - Prevu
617,495
-
6
Non-GAAP Financial Measures
To supplement our financial
information presented in accordance with U.S. GAAP, we believe “Adjusted EBITDA,” a “non-U.S. GAAP financial measure,”
as such term is defined under the rules of the SEC, is useful in evaluating our operating performance. We use Adjusted EBITDA to evaluate
our ongoing operations and for internal planning and forecasting purposes. We believe that this non-U.S. GAAP financial measure may be
helpful to investors because it provides consistency and comparability with past financial performance. However, this non-U.S. GAAP financial
measure is presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered
in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including
companies in our industry, may calculate a similarly titled non-U.S. GAAP measure differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of this non-U.S. GAAP financial measure as a tool for comparison. A reconciliation
is provided below for our non-U.S. GAAP financial measure to the most directly comparable financial measure stated in accordance with
U.S. GAAP. Investors are encouraged to review the related U.S. GAAP financial measure and the reconciliation of this non-U.S. GAAP financial
measure to its most directly comparable U.S. GAAP financial measure, and not to rely on any single financial measure to evaluate our business.
We use Adjusted EBITDA, a non-U.S.
GAAP financial measure, to evaluate our operating performance and facilitate comparisons across periods and with peer companies. We reconcile
our Adjusted EBITDA to our net income (loss) adjusted to exclude interest expense, depreciation and amortization, share-based compensation,
and other non-cash, non-operating, or non-recurring items that we believe are not indicative of our core business operations. We believe
this measure provides useful insight into our ongoing performance; however, it should not be considered a substitute for, or superior
to, net income or other financial information prepared in accordance with U.S. GAAP.
The following table provides
a reconciliation of net income to Adjusted EBITDA for the periods presented below:
For the Three Months Ended
March 31,
2026
2025
Net loss
$ (4,338,495 )
$ (2,850,167 )
preAdjusted to exclude the following
Depreciation and amortization
165,202
179,149
Amortization of loan discounts and origination fee
-
121,251
Changes in fair value of contingent consideration (1)
(18,350 )
93,000
Change in fair value of derivative liability (2)
27,500
-
Interest expense
24,680
205,063
GEM commitment fee
-
125,000
Stock based compensation (3)
343,963
78,355
Acquisition-related expenses
-
87,352
Adjusted EBITDA
$ (3,795,500 )
$ (1,960,997 )
(1) Represents
non-cash changes in the fair value of contingent consideration payable to reAlpha Mortgage which is calculated based on revenue and EBITDA
targets.
(2) Represents
non-cash changes in the fair value of derivative liability recorded in connection with our media-for-equity transaction with MMC.
(3) Represents
non-cash stock-based compensation expenses recognized during the period.
7
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