reAlpha Tech Corp.

reAlpha Tech Corp. (AIRE) Annual Report Summary - Year Ended December 31, 2025

This summary provides an overview of reAlpha Tech Corp.'s strategic transformation, current business operations, financial position, and future outlook for the fiscal year ended December 31, 2025.

Strategic Transformation and Business Overview

reAlpha Tech Corp. (Nasdaq: AIRE) is a real estate technology company building an AI-powered, end-to-end platform for homebuying. The year 2025 marked a significant strategic shift for the company, moving away from its previous model of acquiring and operating short-term rental properties.

Pivot from Short-Term Rentals: Facing challenging economic conditions, including high interest rates and property prices, reAlpha began winding down its short-term rental operations in early 2024. By early 2025, the company completed the sale of its last short-term rental property, fully exiting this business.

Current Business Segments: reAlpha's operations now focus entirely on two core segments:

• Homebuying Services: Providing a comprehensive, AI-driven platform for consumers to buy homes.
• Technology Services: Developing AI and software solutions for both internal use and external clients.

Management's Discussion and Analysis (MD&A) Highlights

Management's discussion typically reviews the company's financial condition and operating results, highlighting key trends, challenges, and opportunities.

• Overview of Operations: The most significant operational change for 2025 was the strategic pivot away from short-term rentals to a pure-play technology and homebuying services model. This shift was driven by market conditions and the long-term vision for an AI-powered platform.
• Liquidity and Capital Resources: Given reAlpha's history of losses and potential need for future funding, liquidity management and capital raising are critical focus areas.

Homebuying Services

reAlpha's Homebuying Services segment streamlines the homebuying process through an integrated platform that offers:

• Realty Services: Assisting buyers with property search and tours.
• Mortgage Brokering: Connecting buyers with financing options.
• Digital Title and Escrow Services: Facilitating closing processes.

AI Integration: AI integration is a key differentiator, featuring "Claire," an AI-powered digital concierge providing 24/7 customer support, and internal AI tools that enhance loan officer efficiency through automation.

Rebate Program: To attract customers, reAlpha offers a rebate program. A significant change to the rebate program occurred in mid-January 2026 (after the reporting period):

• New Structure: Buyers using reAlpha's realty services can receive up to 1.0% of the home's purchase price back. An additional 0.5% is available if mortgage services are also utilized, totaling up to 1.5% off closing costs.
• Previous Structure: Prior to January 2026, the rebate was up to 75% of the buyer's agent commission, dependent on the number of reAlpha services used. The new structure aims for greater clarity and simplicity.

Geographic Reach: As of December 31, 2025, reAlpha offers all three services (realty, mortgage, title) in Florida and Virginia. The company offers two services in 8 additional states and at least one service in 25 other states and Washington D.C., expanding its total operational footprint to 35 U.S. states and D.C.

Technology Services

The Technology Services segment leverages reAlpha's AI and software development capabilities:

• Software Development (reAlpha Nepal): reAlpha's team in Nepal develops core technology, AI, and applications for its internal platforms (like "Claire"). They also provide these development services to external companies.
• AI Chat Platform (AiChat): Through its subsidiary AiChat, reAlpha offers AI-powered chat platforms to businesses, primarily in the Asia-Pacific region. These platforms automate customer service, marketing, and sales through popular messaging apps (e.g., WhatsApp, Instagram). AiChat's technology supports over 270 languages and generates revenue from subscription packages.

Financial Health and Liquidity

reAlpha's history of operating losses and potential need for substantial additional funding suggest a constrained cash position.

• Capital Expenditures: reAlpha's focus on technology development and potential acquisitions suggests ongoing investment needs.
• Funding Needs: The company has a potential need for future funding, which could dilute existing equity through new share issuances.

Future Outlook and Growth Strategy

reAlpha's growth strategy centers on several key objectives:

• Continuous Innovation: Continuously enhancing its AI and technology offerings.
• Nationwide Expansion: Aims to offer its full suite of homebuying services across the entire U.S. Achieving this requires obtaining additional state licenses and further technology development.
• Strategic Acquisitions: reAlpha plans to continue acquiring companies that align with its strategy, citing past acquisitions like reAlpha Nepal, AiChat, and Prevu.
  • InstaMortgage Inc.: A proposed acquisition of InstaMortgage Inc. aims to add direct lending capabilities.
  • GTG Financial: reAlpha canceled its acquisition of GTG Financial in 2025.

Competitive Position

reAlpha competes in both the homebuying services and business-to-business (B2B) technology solutions markets. The real estate technology market is highly fragmented and competitive, featuring traditional brokerages, established online platforms, and emerging property technology startups.

• Key Competitors: In homebuying services, reAlpha competes with traditional real estate brokerages, online platforms (e.g., Zillow, Redfin), mortgage lenders, and title companies. In technology services, it competes with other software development firms and AI chat platform providers.
• Competitive Advantages: reAlpha aims to differentiate itself through its AI-powered, end-to-end platform, offering an integrated suite of services (realty, mortgage, title) and a unique rebate program. Its internal AI tools and the 'Claire' digital concierge serve as key differentiators. Offering external technology services through reAlpha Nepal and AiChat also diversifies its business.
• Competitive Strategy: reAlpha's strategy involves continuous AI innovation, nationwide expansion of its integrated services, and strategic acquisitions to enhance its offerings and market reach. The company aims to provide a more streamlined and cost-effective homebuying experience compared to traditional models.

Risk Factors

Investors should be aware of several significant risks:

• History of Losses & Funding Needs: reAlpha is a relatively new company with a history of operating losses and an accumulated deficit. Future profitability is not guaranteed. The company may require substantial additional funding, which could dilute existing equity through new share issuances.
• Real Estate Market Dependence: reAlpha's success is highly sensitive to the health and stability of the U.S. housing market. Downturns could severely impact demand for its services.
• Intense Competition: The real estate and technology sectors are highly competitive, requiring reAlpha to continuously innovate and differentiate itself.
• AI Integration & Ethical Risks: While central to its strategy, AI integration presents operational challenges, potential privacy concerns, and reputational risks.
• Regulatory Compliance: Operating across realty, mortgage, and title services in multiple states, and developing AI, exposes reAlpha to complex and evolving regulatory landscapes. These include licensing requirements, consumer protection laws, and data privacy regulations.
• Limited Geographic Reach: The full suite of homebuying services is not yet available nationwide, potentially limiting growth until broader expansion is achieved.
• Acquisition & Integration Risks: reAlpha's acquisition strategy carries inherent risks related to successfully integrating operations, technology, and personnel, as evidenced by the canceled GTG Financial acquisition.
• Cybersecurity & Data Privacy: Handling sensitive customer financial and personal data makes reAlpha vulnerable to cybersecurity breaches. Such breaches could result in significant financial losses, reputational damage, and regulatory penalties.
• Key Personnel Reliance: The company's success significantly depends on its founders and key management team.
• Stock Volatility: As a relatively new public company, AIRE's stock price can be highly volatile, leading to significant fluctuations in investment value.

Company Snapshot

• Trading Symbol: AIRE on Nasdaq
• Market Capitalization: Approximately $5.5 million as of June 30, 2025.
• Shares Outstanding: 131,852,546 shares as of March 12, 2026.

This summary aims to provide a clear picture of reAlpha's current standing and future direction to help you make informed investment decisions.