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reAlpha Tech Corp. (AIRE)
:AIRE
US Market

reAlpha Tech Corp. (AIRE) AI Stock Analysis

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reAlpha Tech Corp.

(NASDAQ:AIRE)

Rating:39Underperform
Price Target:
$0.50
▲(11.11%Upside)
The overall stock score for reAlpha Tech Corp. reflects significant financial challenges, bearish technical indicators, and poor valuation metrics. Although revenue growth and strategic initiatives are positive, the risks of high leverage, negative cash flows, and potential delisting pose substantial concerns.
Positive Factors
Acquisitions
The acquisition of GTG Financial expands reAlpha’s mortgage geographic footprint to 28 U.S. states, from 27 prior.
Market Opportunity
AIRE's large market opportunity and positive trends from interest rate cuts contribute to a positive outlook.
Platform and Services
AIRE's zero-commission AI home-buying platform provides a low-cost solution to industry shifts in commissions and should serve as a lead generator for the company's services.
Negative Factors
Capital Requirements
At the end of the year, AIRE had $3.1M in cash and $6.0M in debt, indicating a need to raise capital or draw from its ATM to fund operations.
Earnings Estimates
Estimates for 4Q24 were lowered after preannounced results came in lower than guidance and expectations.
Valuation
AIRE currently trades at an EV/2026E revenue multiple of 7.5x vs. a peer group average of 2.5x.

reAlpha Tech Corp. (AIRE) vs. SPDR S&P 500 ETF (SPY)

reAlpha Tech Corp. Business Overview & Revenue Model

Company DescriptionreAlpha Tech Corp., a real estate technology company, focuses on developing, utilizing, and commercializing real-estate focused artificial intelligence (AI). The company operates in two segments, Platform Services and Rental Business. The Platform Services segment offers and develops AI-based products and services to customers in the real-estate industry. The Rental Business segment focuses on purchasing properties for syndication, which is powered by its platform services technologies. The company was formerly known as reAlpha Asset Management Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was incorporated in 2021 and is based in Dublin, Ohio.
How the Company Makes MoneyreAlpha Tech Corp. generates revenue primarily through the acquisition and management of short-term rental properties. The company employs a fractional ownership model, enabling investors to purchase shares in specific properties. This model allows reAlpha to accumulate capital from multiple investors, which is then used to purchase and manage real estate assets. Revenue streams include rental income from short-term property leases, property appreciation over time, and service fees associated with managing the properties. Additionally, strategic partnerships with real estate agencies and technology firms enhance reAlpha's investment capabilities and operational efficiency, further contributing to its earnings.

reAlpha Tech Corp. Financial Statement Overview

Summary
reAlpha Tech Corp. demonstrates strong revenue growth but is unprofitable, with significant financial risks due to high leverage and negative cash flows.
Income Statement
32
Negative
The company has shown a substantial increase in revenue over the periods but remains unprofitable with negative net income and EBIT margins. Revenue growth is strong, but the persistent operating losses indicate challenges in managing costs effectively.
Balance Sheet
27
Negative
The company's balance sheet reflects high leverage with negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is unfavorable, and negative equity suggests the company is highly leveraged or has accumulated significant losses.
Cash Flow
35
Negative
Cash flow metrics show operating cash flow and free cash flow remain negative, indicating ongoing cash burn. The company faces challenges in generating cash from operations, relying heavily on financing activities to support cash needs.
Breakdown
TTMDec 2024Dec 2023Jun 2023Jun 2022
Income StatementTotal Revenue
1.85M948.42K182.53K419.41K229.67K
Gross Profit
607.14K646.34K-1.46M126.21K-61.68K
EBIT
-8.10M-6.90M-9.51M-4.95M-3.02M
EBITDA
-7.80M-6.94M-9.07M-5.12M-5.06M
Net Income Common Stockholders
-27.45M-26.02M-1.88M-5.45M-3.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
605.34K3.12M6.46M1.26M1.64M
Total Assets
16.49M11.99M27.88M21.09M5.67M
Total Debt
260.89K5.98M437.10K7.32M2.23M
Net Debt
-344.45K2.85M-6.02M6.06M589.92K
Total Liabilities
2.73M10.43M3.17M7.93M8.30M
Stockholders Equity
13.75M1.56M24.71M13.16M-2.64M
Cash FlowFree Cash Flow
-7.32M-6.05M-3.00M-5.41M-6.54M
Operating Cash Flow
-6.78M-6.04M-2.83M-4.96M-1.56M
Investing Cash Flow
-1.29M-1.55M506.10K1.08M-2.65M
Financing Cash Flow
4.44M4.26M7.52M3.04M5.53M

reAlpha Tech Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.45
Price Trends
50DMA
0.73
Negative
100DMA
1.16
Negative
200DMA
1.23
Negative
Market Momentum
MACD
-0.08
Negative
RSI
33.03
Neutral
STOCH
15.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRE, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.73, and below the 200-day MA of 1.23, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 15.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIRE.

reAlpha Tech Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.81B10.770.50%8439.03%5.72%-20.80%
56
Neutral
$33.33M-44.60%5.80%30.19%
48
Neutral
$26.72M-97.62%-19.80%21.22%
46
Neutral
$475.39M-47.67%2.36%-23.60%
40
Neutral
$7.83M-340.81%90.36%-560.01%
39
Underperform
$23.21M-78.33%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIRE
reAlpha Tech Corp.
0.47
-0.60
-56.07%
FTHM
Fathom Holdings
1.30
-0.51
-28.18%
OPEN
Opendoor Technologies
0.65
-1.51
-69.91%
OPAD
Offerpad Solutions
0.97
-4.02
-80.56%
LRHC
La Rosa Holdings Corp.
0.13
-1.12
-89.60%

reAlpha Tech Corp. Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
reAlpha Tech Corp. Faces Nasdaq Delisting Notice
Negative
May 23, 2025

On May 20, 2025, reAlpha Tech Corp. received a notification from Nasdaq that the company no longer meets the minimum bid price requirement of $1 per share, as per Nasdaq Listing Rule 5550(a)(2). The company has been given until November 17, 2025, to regain compliance by achieving a closing bid price of at least $1 per share for 10 consecutive business days. If the company fails to meet this requirement, it may seek an additional compliance period or face potential delisting. reAlpha Tech Corp. plans to monitor its stock price and explore options to address the issue.

The most recent analyst rating on (AIRE) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on reAlpha Tech Corp. stock, see the AIRE Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
reAlpha Tech Corp. Unveils Strategic Growth Plans
Positive
May 20, 2025

On May 20, 2025, reAlpha Tech Corp. released a corporate presentation detailing its strategic focus and business developments. The company is positioned to lead the evolving real estate market with a tech-forward, consumer-aligned solution, leveraging its AI-driven platform to enhance customer value and engagement. The presentation highlights reAlpha’s significant growth through strategic acquisitions and its ability to generate multiple revenue streams across the home purchase process, which has resulted in a substantial year-over-year increase in revenue.

The most recent analyst rating on (AIRE) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on reAlpha Tech Corp. stock, see the AIRE Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
reAlpha Tech Corp. Reports 4,432% Revenue Surge
Positive
May 16, 2025

reAlpha Tech Corp. announced a significant 4,432% increase in revenue for the first quarter of 2025, reaching $925,635 compared to $20,426 in the same period in 2024. Despite a higher net loss due to increased operating expenses from recent acquisitions, the company improved its net profit margin significantly. The company has launched several tools to enhance operational efficiency and customer experience and has made strategic appointments and acquisitions, including GTG Financial, which contributed to a substantial loan volume. Additionally, reAlpha secured a $5 million media-for-equity investment to boost marketing efforts.

The most recent analyst rating on (AIRE) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on reAlpha Tech Corp. stock, see the AIRE Stock Forecast page.

Executive/Board Changes
reAlpha Tech Corp. Approves New RSU Award Agreement
Neutral
Apr 30, 2025

On April 28, 2025, reAlpha Tech Corp.‘s compensation committee approved a form of restricted stock unit (RSU) award agreement for its executive officers and eligible participants under the company’s 2022 Equity Incentive Plan. The RSU Grants, which represent the right to receive shares of the company’s common stock, are designed to enhance compensation for executives and align with peer group practices. The grants will vest over a period of 24 months, contingent on continuous service, with specific amounts allocated to key executives each quarter.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
reAlpha Tech Corp. Faces Financial Challenges Amid Innovations
Negative
Apr 2, 2025

In 2024, reAlpha Tech Corp. made significant advancements in the real estate technology sector through strategic innovations and acquisitions, including the launch of a commission-free homebuying platform and the acquisition of stakes in Hyperfast Title and AiChat. Despite a 270% increase in revenue, reAlpha faced financial challenges, including a net loss of $26.02 million due to a goodwill impairment related to its discontinued short-term rental operations. The company decided to cease these operations in early 2025 due to persistent macroeconomic conditions.

Delistings and Listing ChangesExecutive/Board Changes
reAlpha Tech Corp. Ends Market Sales Agreement
Neutral
Mar 28, 2025

On March 24, 2025, reAlpha Tech Corp. announced its decision to terminate its At the Market Sales Agreement with A.G.P./Alliance Global Partners, which allowed the company to offer and sell shares of its common stock. The termination will be effective on March 29, 2025. Under the agreement, reAlpha Tech Corp. had sold 160,879 shares, generating gross proceeds of $231,235.73. Additionally, the company had previously terminated its Chief Product Officer, Jorge Aldecoa, on February 27, 2025, and entered into a separation agreement with him, which includes a severance payment.

Private Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
reAlpha Tech Corp. Resolves Disputes and Alters Financial Structure
Neutral
Mar 21, 2025

On March 19, 2025, reAlpha Tech Corp. entered into a Mutual Settlement and Release Agreement with Unreal Estate Inc. to resolve disputes related to previous agreements, resulting in reAlpha retaining full ownership of US Realty and agreeing to pay Unreal Estate $80,000. The agreement included a mutual release of claims and the cancellation of a convertible promissory note. Additionally, on March 20, 2025, reAlpha entered into an exchange agreement with Streeterville Capital, LLC, involving the exchange of a partitioned promissory note for shares of reAlpha’s common stock, impacting the company’s financial structure. Furthermore, GEM Yield Bahamas Limited filed a lawsuit against reAlpha on March 19, 2025, alleging breach of a warrant agreement, with reAlpha planning to defend itself vigorously.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.