reAlpha Tech Corp. (NASDAQ: AIRE) announced on December 22 2025 that it has entered into a definitive agreement to acquire InstaMortgage Inc., an independent mortgage lender headquartered in San Jose, California, for a total consideration of approximately $8.5 million.
The transaction structure includes $500,000 in cash at closing, $1.5 million in reAlpha common stock based on a 10‑day VWAP, and $6.5 million in deferred consideration payable bi‑annually over three years in cash or stock, providing a mix of immediate and future value to both parties.
Strategically, the acquisition expands reAlpha’s mortgage footprint by adding direct lending capabilities and multi‑state licensing in 32 states, including New York, New Jersey, Illinois and Ohio—markets that were previously outside reAlpha’s reach. Integrating InstaMortgage’s originations platform with reAlpha’s brokerage and AI‑powered services is intended to streamline the entire home‑buying journey and reduce handoffs between brokerage, lending and closing.
Financially, reAlpha reported Q3 2025 revenue of $1.45 million, a 326% year‑over‑year increase, but a net loss of $5.8 million. The prior quarter (Q3 2024) saw revenue of $339,227 and a net loss of $2.1 million, while the gross profit margin fell to 52% from 67% due to a shift toward lower‑margin brokerage services. In contrast, InstaMortgage has generated over $4 billion in loan originations over the past five years and is licensed in 32 states, underscoring the scale of the acquisition relative to reAlpha’s current operations.
The announcement was well received by investors, reflecting confidence in the strategic expansion and the potential to scale reAlpha’s business model. Analysts noted that the deal could accelerate the company’s transition to a vertically integrated, AI‑driven real‑estate platform.
CEO Mike Logozzo said the agreement would "materially expand our mortgage business capabilities" and "enable tighter workflow alignment from intake through closing." InstaMortgage CEO Shashank Shekhar expressed enthusiasm about integrating the two companies’ technology platforms to create a seamless, AI‑powered home‑buying experience.
The acquisition positions reAlpha to become a fully integrated real‑estate technology platform, potentially transforming its revenue mix and scale. The modest $8.5 million price, relative to InstaMortgage’s $4 billion in loan originations, highlights the strategic nature of the deal and its potential to drive long‑term growth.
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