Total revenue for the quarter ended September 30, 2025 rose to $1.45 million, a 326% increase from $339,227 in the same period a year earlier. The surge was largely driven by a sharp rise in mortgage‑brokerage transactions through reAlpha Mortgage and the company’s expansion into Georgia, Utah, and Nevada, which added new customer pipelines and broadened its geographic footprint.
Gross profit margin contracted to 52% from 67% year‑over‑year, reflecting a shift toward lower‑margin loan‑brokerage services. The mix change diluted the higher‑margin AI‑powered real‑estate platform revenue, and the company’s cost base grew as it invested in marketing and professional fees to support the expansion.
Net loss widened to $2.10 million, compared with $2.10 million in Q3 2024. The increase was driven by higher operating expenses, including marketing, professional fees, and the cost of loan‑brokerage services, which offset the revenue growth and margin compression.
Earnings per share were $‑0.07, missing the consensus estimate of $‑0.05 by $0.02. The miss was largely due to the combined effect of higher operating costs and a lower gross‑margin mix, which eroded profitability even as revenue accelerated.
CFO Piyush Phadke said the company is well‑positioned to sustain revenue growth, citing a stronger balance sheet from recent equity raises and debt repayment. CEO Mike Logozzo highlighted the company’s pivot from an asset‑heavy rental model to an AI‑powered home‑buying platform, emphasizing a focus on long‑term investors and the need to balance growth with cost discipline.
The company did not provide new guidance in the release. It continues to invest in AI tools such as the Loan Officer Assistant and the Claire concierge, and has regained Nasdaq compliance. Headwinds include margin pressure and widening losses, while tailwinds are the accelerated revenue growth and a strengthened balance sheet that supports future scaling efforts.
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