reAlpha's Q2 revenue fell 11% to $1.11M and its net loss narrowed to $3.05M, but cash dropped to $2.2M, about three months of runway by management's own estimate, with a going-concern warning.
Revenue
$1.1M
-11.3% YoY
Net income
-$3.0M
Diluted EPS
$-0.57
Operating margin
-260.7%
This period vs a year ago
Same period last year
This period
Revenue▼-11.3%
≈$1.3M
$1.1M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Q2 2026: a smaller loss, but only about three months of cash left
reAlpha Tech Corp., a small Nasdaq-listed company that sells homebuying services (real estate brokerage, mortgage brokering and title/escrow) through an AI-assisted app, plus software and chatbot subscriptions, reported second-quarter revenue of $1.11 million, down 11% from a year earlier. Its net loss narrowed to $3.05 million from $4.82 million. The figure that matters most is not on the income statement: the company had $2.2 million of cash on June 30. In its 10-Q, management says this will fund operations for about three months from the August 14 filing date, and it states there is "substantial doubt" about its ability to continue as a going concern. That is the formal accounting warning that a company may not survive the next 12 months without new money.
At a glance
Revenue $1.11M, -11% YoY. The drop comes from a mortgage broker (GTG Financial) whose acquisition was unwound in August 2025. It brought in $568K in last year's Q2. Excluding GTG and the newly acquired Prevu brokerage, the rest of the homebuying business was roughly flat.
Net loss $3.05M vs $4.82M. About $1.3M of the improvement is lower marketing expense. Nearly all of last year's marketing bill was non-cash: ad credits that had been paid for with stock.
Cash $2.2M, down from $7.8M at December 31. The company used $5.48M of cash in operations in the first half. It currently can't sell shares through its at-the-market (ATM) program, which lets a company sell new stock gradually into the market.
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$1.11M
$1.25M
-11.3%
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Homebuying services revenue
$0.82M
$1.03M
-20.3%
Technology services revenue
$0.29M
$0.22M
+30.3%
Gross margin
66.0%
49.6%
+16.4 pts
Operating loss
-$2.90M
-$4.09M
Loss 29% smaller
Operating margin
-260.7%
-326.5%
+65.8 pts
Net loss
-$3.05M
-$4.82M
Loss 37% smaller
Diluted EPS
-$0.57
-$2.37
Loss per share 76% smaller
Adjusted EBITDA (company's non-GAAP)
-$2.27M
-$3.47M
Loss 35% smaller
Total transaction volume (trailing 12 months)
$150.4M
$88.4M
+70%
Cash at period end
$2.23M
$0.59M
+$1.64M
Operating margin is the share of revenue left after running the business, before interest and tax. Here it is deeply negative: total costs (cost of revenue plus operating expenses) were about 3.6 times revenue. Per-share figures for 2025 are restated for the 1-for-25 reverse stock split that took effect on April 30, 2026. Percentage changes between two losses are shown as "loss X% smaller," not as signed growth rates.
Takeaway: The income statement improved, but much of that came from expenses that didn't cost cash in the first place, and the cash position got much worse. Operating cash burn rose to $5.48M in the first half from $4.60M. With $2.2M on hand, an ATM program it can't use, and its own estimate of three months of runway from mid-August, reAlpha needs new financing around Q4 2026. That makes heavy dilution for existing shareholders the most likely next step.
What drove the quarter
Revenue: one business left and another arrived. Homebuying revenue fell to $821K from $1.03M. The filing attributes the drop "primarily" to GTG Financial, which used its right to rescind (cancel) its sale to reAlpha in August 2025 and so is no longer included in the results. GTG had contributed $568K of revenue in Q2 2025. Prevu, a brokerage reAlpha acquired in November 2025, added $370K. The rest of the homebuying business (the remaining realty, mortgage brokering and title operations) brought in about $452K, compared with about $462K a year ago. That is a 2% decline. So excluding the acquisition and the unwind, the core homebuying business didn't grow over the year. That matters for a company whose plan is to grow through acquisitions.
The company changed its buyer rebate in mid-January 2026. It used to return up to 75% of the buyer's agent commission. It now offers up to 1.0% of the home price, plus another 0.5% if the buyer also uses reAlpha's mortgage service. Management says it has "not experienced a material change in revenue" from the switch.
Technology services grew. Segment revenue rose 30% to $289K. AiChat, an Asia-Pacific chatbot subscription business, went from $159K to $244K (+54%). AiChat now accounts for 22% of total revenue.
Gross margin rose to 66% from 50%. Gross margin is the share of revenue left after the direct cost of delivering the service. The filing links the rise to GTG leaving (it "had historically incurred higher cost of revenue") and to more revenue coming from AiChat's higher-margin subscriptions. Cost of revenue fell 40% to $377K. The higher margin comes from a change in which businesses the company owns, not from better pricing.
Operating expenses fell 23% to $3.63M. Marketing dropped to $178K from $1.48M. Last year's figure was mostly non-cash: under a "media-for-equity" deal with MMC, reAlpha paid for advertising with preferred stock. Those credits are now fully used, so the expense has stopped. Professional and legal fees fell to $650K from $1.0M because last year included costs from capital-raising. Payroll went the other way: wages and benefits rose 29% to $2.03M as Prevu's staff joined. In Q2 the company cut about 25% of its global workforce, with $68K of severance. Payroll was only slightly lower than Q1's $2.13M, so the full saving from the cut should show from Q3 if it shows up at all.
Below the operating line, interest expense fell to $17K from $243K after last year's debt was repaid. A $158K non-cash loss came from revaluing a derivative liability tied to the MMC preferred stock. That is an accounting liability that moves with the share price and requires no cash payment.
What the headline numbers hide
Opex fell because of a non-cash item. Excluding marketing, operating expenses were $3.45M, up about 7% from $3.23M a year ago. On a cash basis, the business didn't get leaner over the year.
The cash burn got worse. Net cash used in operating activities was $5.48M in the first half, up from $4.60M, even though the half-year net loss narrowed slightly to $7.39M from $7.67M. The filing blames higher personnel costs and working-capital changes. The gap between the loss and the cash burn is mostly non-cash items: $712K of stock-based compensation, $593K of marketing paid with prepaid stock-funded credits, and $333K of depreciation and amortization. Cash burn averaged about $0.9M a month.
Most of the per-share improvement comes from more shares. The loss per share shrank 76%, but the net loss shrank only 37%. The difference is the share count: weighted-average shares outstanding rose to 5.37M from 2.05M (split-adjusted), about 2.6 times as many. Each existing share now represents a much smaller piece of the company.
Adjusted EBITDA leaves out real costs. Adjusted EBITDA is the company's own profit measure, which leaves out interest, taxes, depreciation and items it treats as non-recurring. The company's figure of -$2.27M adds back $368K of stock-based compensation (up from $193K), the $68K restructuring charge and a $16K write-off of intangible assets (trade name and customer relationships) from the Nepal software unit. For the first half, adjusted EBITDA was worse than a year ago (-$6.07M vs -$5.63M), even though GAAP net loss improved.
Transaction volume grew much faster than revenue. Trailing-twelve-month transaction volume rose 70% to $150.4M, while revenue fell. The filing notes that one home sale can count in more than one service line, and that most of the new volume comes from the lower-revenue mix brought in by Prevu and from mortgage brokerage. Volume is not a good indicator of revenue here.
The balance sheet is shrinking. Total equity halved to $5.58M from $11.50M in six months. Goodwill and intangible assets total $11.49M, which is more than total equity. This means tangible equity, what's left after removing acquired intangibles, is negative.
Funding: the main issue for the rest of 2026
Runway: In management's words, cash "will be sufficient to fund our operating expenses and capital expenditure requirements for a period of three months as of the filing date of this report." The report was filed August 14, 2026, so that points to around mid-November.
Fundraising options are limited: The company raised only $126K through its ATM in Q1. It says it is currently "unable to sell shares pursuant to the ATM program" because of restrictions on its Form S-3 shelf registration. Outstanding warrants could bring in $4.7M if exercised for cash, but that only happens if the share price is high enough. The GEM warrants are tied up in litigation, where settlement talks are under way.
Acquisition payments add to the strain: The company owed about $1.83M of deferred payments to Prevu's former owners at June 30. On August 1 it paid one $625K installment by issuing 426,848 shares valued at about $1.45 each, roughly 8% of the 5.37M shares outstanding at quarter-end. It closed the InstaMortgage acquisition on August 19, 2026. That deal costs $8.5M: $0.5M cash (already in escrow), $1.5M in stock (119,903 shares at a $12.51 reference price set in December 2025), and $6.5M in six installments every six months over three years, of which at least $1.5M must be paid in cash. The gap between the $12.51 reference price and the ~$1.45 price used in August shows how far the stock has fallen. Future installments paid in shares will need far more shares for the same dollar amount.
Outlook
Management gave no revenue or earnings guidance. It says it expects "continued operating losses for the foreseeable future," that it will need to raise money through equity or debt, and that it intends to keep growing by acquisition. InstaMortgage adds direct mortgage lending, so the company can make loans itself rather than only arrange them for other lenders.
Our read: Q3 results (10-Q expected around mid-November 2026, based on last year's November 12 filing) will matter less than how reAlpha raises money before then. Three questions to watch:
Whether a financing closes, and at what price and with what warrants attached.
How much revenue InstaMortgage adds compared with its $6.5M of deferred payments.
Until the funding gap is closed, the improvements in gross margin and AiChat growth are too small to change the picture. At this revenue scale, about $1.1M a quarter, even 66% gross margin covers only a fraction of a $3.6M quarterly cost base.