Investment Thesis
reAlpha Tech Corp demonstrates severe operational distress with massive operating losses (-354% margin) and negative free cash flow of -$11.3M despite 376% revenue growth, indicating unsustainable burn rate and deteriorating fundamentals. The company is bleeding cash operationally while revenue growth appears to lack profitability conversion, suggesting structural business model issues rather than early-stage growth.
AIRE Strengths
- Strong liquidity position with $7.8M cash and 2.70x current ratio providing near-term survival runway
- Exceptional gross margin of 54.3% indicates underlying product/service economics are viable
- Dramatic revenue growth of 376% YoY shows significant top-line expansion and market traction
AIRE Risks
- Massive operating losses of -$16.0M and negative FCF of -$11.3M indicate cash burn will exhaust reserves within 7 months at current burn rate
- Operating margin of -354% and net margin of -389% reveal fundamental inability to convert revenue to profit despite gross margin strength
- Deteriorating unit economics evidenced by negative ROE (-153%) and ROA (-81%), suggesting losses accelerate with scale rather than improve
Key Metrics to Watch
- Operating cash burn rate and cash runway remaining before liquidity crisis
- Path to operating profitability and whether negative operating leverage reverses with scale
- Operating margin trends and cost structure efficiency to determine if 54% gross margin can translate to positive EBITDA
AIRE Financial Metrics
AIRE Profitability Ratios
AIRE Balance Sheet & Liquidity
AIRE 5-Year Financial Trend
5-Year Trend Summary: reAlpha Tech Corp.'s revenue has grown significantly by 376% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.58 indicates the company is currently unprofitable.
AIRE Growth Metrics (YoY)
AIRE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $339.2K | -$2.1M | $-0.05 |
| Q2 2025 | $62.4K | -$1.5M | $-0.03 |
| Q1 2025 | $20.4K | -$1.4M | $-0.03 |
| Q3 2024 | $59.0K | -$777.8K | $-0.02 |
| Q2 2024 | $33.5K | $590.1K | $0.01 |
| Q1 2024 | $20.4K | -$864.7K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AIRE Capital Allocation
AIRE SEC Filings
Access official SEC EDGAR filings for reAlpha Tech Corp. (CIK: 0001859199)