reAlpha (NASDAQ: AIRE) Provides Pro Forma Financial Information on InstaMortgage Acquisition
The InstaMortgage deal would more than double reAlpha’s 2025 revenue and more than triple gross profit on an unaudited pro forma basis.
Rhea-AI Summary
reAlpha Tech (AIRE) released pro forma financials for its InstaMortgage acquisition, showing 2025 combined revenue of approximately $11.8 million.
InstaMortgage generated about $7.3 million revenue, $5.3 million gross profit and $0.1 million net income in 2025, and $4.5 million revenue, $3.3 million gross profit and $0.2 million net income in the six months ended June 30, 2026, while originating $277.1 million and $177.0 million in residential mortgage volume, respectively. As of June 30, 2026, it had originated over $3.5 billion of loans since 2015.
On an unaudited pro forma basis, reAlpha and InstaMortgage would have had $6.4 million revenue and $4.6 million gross profit for the first half of 2026, and $11.8 million revenue and $7.7 million gross profit for 2025, equal to about 2.6x and 3.2x reAlpha’s standalone 2025 revenue and gross profit. The CFO said the deal increases 2025 revenue by about 162% and gross profit by 215%.
Positive
- InstaMortgage 2025 revenue approximately $7.3 million; gross profit approximately $5.3 million; positive net income
- InstaMortgage 1H 2026 approximately $4.5 million revenue, $3.3 million gross profit, $0.2 million net income
- Loan origination scale $277.1 million (2025) and $177.0 million (1H 2026) residential mortgage volume
- Lifetime production more than $3.5 billion in residential mortgage loans originated since 2015
- Pro forma 1H 2026 revenue approximately $6.4 million and gross profit approximately $4.6 million for the combined company
- Pro forma 2025 revenue and gross profit approximately $11.8 million and $7.7 million, or about 2.6x and 3.2x reAlpha’s standalone 2025 figures
Negative
- All combined figures are unaudited pro forma, based on assumptions and not necessarily indicative of actual or future results
News Explained
The pro forma results assume the completed acquisition occurred on January 1, 2025 and are for information only, not necessarily indicative of results had it occurred then or of future results; the company says the full statements and notes will accompany a Form 8-K/A filed on
Key Figures
- Pro forma combined revenue
- $6.4 million
- Six months ended June 30, 2026; unaudited
- Pro forma combined gross profit
- $4.6 million
- Six months ended June 30, 2026; unaudited
- Pro forma combined revenue
- $11.8 million
- Year ended December 31, 2025; unaudited
- Pro forma combined gross profit
- $7.7 million
- Year ended December 31, 2025; unaudited
- Revenue increase
- 162%
- 2025 pro forma basis versus reAlpha standalone
- Gross profit increase
- 215%
- 2025 pro forma basis versus reAlpha standalone
- InstaMortgage net income
- $0.1 million
- Year ended December 31, 2025
- InstaMortgage net income
- $0.2 million
- Six months ended June 30, 2026
Previous Acquisition Reports
-
Completed InstaMortgage acquisition and disclosed $8.5 million consideration with deferred installments
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
unaudited pro forma financial
regulation s-x regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
InstaMortgage reported approximately
Unaudited pro forma combined revenue was approximately
DUBLIN, Ohio, Sept. 23, 2026 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company, today announced financial and operating results for InstaMortgage Inc. (“InstaMortgage”) and unaudited pro forma combined financial information following the completion of its acquisition of InstaMortgage.
InstaMortgage Standalone Financial Performance
InstaMortgage was acquired by reAlpha with an established operating business that generated revenue, gross profit and positive net income in 2025, while remaining profitable through the second quarter of 2026.
For the year ended December 31, 2025, InstaMortgage:
- Generated approximately
$7.3 million in revenue; - Generated approximately
$5.3 million in gross profit; - Reported approximately
$0.1 million in net income; and - Originated approximately
$277.1 million in residential mortgage loan volume.
For the six months ended June 30, 2026, InstaMortgage:
- Generated approximately
$4.5 million in revenue; - Generated approximately
$3.3 million in gross profit; - Reported approximately
$0.2 million in net income; and - Originated approximately
$177.0 million in residential mortgage loan volume.
As of June 30, 2026, InstaMortgage has originated more than
“We believe that InstaMortgage meaningfully strengthens reAlpha’s financial and operating foundation and demonstrates what we are looking to build through our acquisition strategy,” said Thomas Kutzman, Chief Financial Officer of reAlpha. “On a pro forma basis, the acquisition increases our 2025 revenue by approximately
Kutzman continued, “We are now operating at a larger scale, with a broader base of loan officers, which we believe provide opportunities to identify potential operational synergies and cost efficiencies over time. The expansion in the number of states in which we offer both real estate and mortgage services could create opportunities for revenue synergies by serving customers in these markets with multiple services over the course of a given transaction.”
Unaudited Pro Forma Combined Financial Information
For the six months ended June 30, 2026, reAlpha and InstaMortgage would have had approximately
For comparison, reAlpha reported approximately
For the year ended December 31, 2025, reAlpha and InstaMortgage would have had approximately
For comparison, reAlpha reported approximately
The unaudited pro forma combined financial information was prepared in accordance with Article 11 of Regulation S-X. For purposes of the statements of operations, the financial information gives effect to the acquisition as if it had occurred on January 1, 2025 and is presented for informational purposes only.
The unaudited pro forma financial information is not necessarily indicative of consolidated results of operations of the combined business had the acquisition occurred at the beginning of the respective period, nor is it necessarily indicative of future results of operations of the combined company. The unaudited pro forma financial information is based on various assumptions and estimates and should be read in conjunction with the full set of pro forma financial information and the accompanying notes, as presented in Amendment No.1 to the Company’s Current Report on Form 8-K/A that will be filed with the Securities and Exchange Commission (the “SEC”) on September 23, 2026.
About reAlpha Tech Corp.
reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company that aims to transform the multi-trillion-dollar U.S. real estate services market. reAlpha is developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title services. With a strategic, acquisition-driven growth model and proprietary AI infrastructure, reAlpha is building a vertically integrated ecosystem designed to deliver a simpler, smarter, and more affordable path to homeownership. For more information, visit www.realpha.com.
About InstaMortgage Inc.
Originally founded in 2008 by Shashank Shekhar as Arcus Lending, the company rebranded as InstaMortgage, NMLS 1035734, in 2021. InstaMortgage aims to provide a different mortgage experience to its clients across 29 states and Washington D.C. By combining technology with expert advice, excellent customer service, and competitive rates, InstaMortgage delivers mortgage options that are tailored to each client's unique financial situation. To learn more, visit www.instamortgage.com.
Forward-Looking Statements
The information in this press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein, including statements by reAlpha’s Chief Financial Officer, Thomas Kutzman, or statements about the InstaMortgage acquisition, the anticipated benefits of the InstaMortgage acquisition, reAlpha’s ability to integrate InstaMortgage into its business and scale its business following the acquisition of InstaMortgage, reAlpha’s long-term platform strategy and anticipated benefits to customers, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha and InstaMortgage’s ability to obtain regulatory approval in Virginia and New York; reAlpha’s ability to realize the expected benefits of the acquisition of InstaMortgage and its operations, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; the potential negative effects of the Company’s and InstaMortgage’s business from not obtaining the regulatory approvals in Virginia and New York timely or at all; the health of the U.S. residential real estate industry and changes in general economic conditions; reAlpha’s ability to pay contractual obligations, including with respect to the acquisition of InstaMortgage; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s ability to maintain compliance with Nasdaq’s continued listing rules; reAlpha's ability to generate additional sales or revenue from having access to, or obtaining, additional U.S. states brokerage licenses; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to integrate the business of its acquired companies into its existing business, including InstaMortgage, and the anticipated demand for such acquired companies’ services; reAlpha’s ability to successfully enter new geographic markets and to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha’s ability to maintain and strengthen its brand and reputation; reAlpha’s ability to continue attracting loan officers and maintain its relationship with its REALTOR® affiliate to expand its operations nationally; the availability of rebates, which may be limited or restricted by state law; risks related to data privacy, including evolving laws and consumer expectations; the inability to accurately forecast demand for AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; reAlpha’s ability to obtain additional financing or access the capital markets on acceptable terms and conditions in the future; changes in applicable laws or regulations, including with respect to the real estate market, AI and AI technologies, and the impact of the regulatory environment and complexities with compliance related to such environment; reAlpha’s ability to effectively compete in the real estate and AI industries; and other risks and uncertainties indicated in reAlpha’s most recent Annual report on Form 10-K and current or periodic reports filed with the SEC and available for review at www.sec.gov. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Media Contact:
Payton Cuddy, Senior Marketing Manager
media@realpha.com
Investor Relations Contact:
Adele Carey, VP of Investor Relations
InvestorRelations@reAlpha.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What periods are covered by the unaudited pro forma combined financial information?
The unaudited pro forma statements of operations give effect to the InstaMortgage acquisition as if it had occurred on January 1, 2025. They present combined revenue and gross profit for the year ended December 31, 2025, and for the six months ended June 30, 2026.
How does the InstaMortgage acquisition change reAlpha’s scale relative to its standalone 2025 results?
For 2025, the combined company would have had approximately $11.8 million in unaudited pro forma revenue and $7.7 million in gross profit, representing about 2.6 times reAlpha’s reported standalone 2025 revenue of about $4.5 million and 3.2 times its standalone gross profit of about $2.5 million. The CFO said this equates to an approximate 162% increase in revenue and 215% increase in gross profit.
Where will investors find the full pro forma financial statements and notes?
The company states that the full set of unaudited pro forma financial information and accompanying notes will be included in Amendment No. 1 to its Current Report on Form 8-K/A, which is expected to be filed with the SEC on September 23, 2026.
What regulatory framework was used to prepare the pro forma financial information?
The unaudited pro forma combined financial information was prepared in accordance with Article 11 of Regulation S-X and is presented for informational purposes only.
How does InstaMortgage’s business model fit within reAlpha’s platform?
The company states that InstaMortgage operates a full-cycle residential mortgage lending platform spanning origination, underwriting, funding and loan sale. Management believes adding this direct-lending business, along with a broader base of loan officers and expanded state coverage for real estate and mortgage services, aligns with reAlpha’s platform and may create operational and revenue synergies over time.