Cutting a loss is different from turning a profit. A narrowing loss means the company still burns cash, just less of it than before. That is where reAlpha Tech Corp. (Nasdaq: AIRE) stood at the end of the second quarter of 2026: a net loss of approximately $3.0 million, down from approximately $4.8 million in the same period a year earlier, on revenue of approximately $1.1 million, an 11% decline from $1.3 million a year prior.
The revenue drop has a specific explanation. In the second quarter of 2025, reAlpha recognized approximately $0.6 million from GTG Financial, an acquisition that was rescinded on August 21, 2025. That revenue is gone. Prevu, acquired in November 2025, and reAlpha Mortgage together softened the gap but could not close it fully. The Homebuying Services segment came in at approximately $0.8 million, down 20%. Technology Services rose 30% to approximately $0.3 million, powered by subscription fees from AiChat, the company's B2B conversational AI unit.
What the margin expansion actually shows
Gross profit margin is the share of revenue left after paying the direct cost of delivering a service. ReAlpha's margin for the first six months of 2026 reached 66%, up from 52% in the comparable period a year earlier. The company attributes the gain to dropping the higher-cost GTG Financial operations and adding Prevu's more favorable revenue mix.
Operating expenses fell approximately 23% year over year. During the second quarter, reAlpha cut roughly 25% of its global workforce and reduced vendor spending. Management said those actions are expected to produce approximately $2 million in annualized savings. Adjusted EBITDA, a measure of operating cash burn that strips out non-cash items, improved to approximately negative $2.3 million from approximately negative $3.5 million.
Cash on hand stood at approximately $2.2 million as of June 30, 2026, up 280% from approximately $0.6 million a year earlier, primarily from capital raised in the second half of 2025 through warrant exercises.
Total transaction volume on the platform reached $150.4 million for the trailing twelve months ended June 30, 2026, up approximately 70% from approximately $88.4 million a year earlier. That metric counts the aggregate dollar value of brokerage, mortgage, and title transactions processed through the reAlpha platform.
The InstaMortgage deal and what it would add
The company expects to close its acquisition of InstaMortgage by the end of August 2026, subject to standard closing conditions. If completed, reAlpha said the deal would add direct lending and in-house underwriting capabilities and expand its mortgage licensing to 38 states and Washington, D.C.
ReAlpha also regained compliance with Nasdaq's minimum bid price rule on May 14, 2026, after its stock held above $1.00 per share for ten consecutive business days. AiChat, the Technology Services subsidiary, received two Silver Awards at the Hashtag Asia Awards 2026 for its work with Senoko Energy.