reAlpha Tech Corp. (NASDAQ: AIRE) was granted a 180‑day extension by Nasdaq, extending the deadline for the company to meet the Capital Market’s minimum bid‑price rule to May 18, 2026. The rule requires a closing bid price of at least $1.00 per share for ten consecutive business days. The extension gives the company a six‑month window to improve liquidity and market value, thereby mitigating the immediate risk of delisting.
The extension follows a series of compliance notices that highlighted the company’s vulnerability. In May 2025, Nasdaq issued a non‑compliance notice for the minimum bid price, and in July 2025 a separate notice addressed the minimum market‑value requirement. While reAlpha has since regained compliance with the $35 million market‑value threshold, the bid‑price issue remains unresolved. The new deadline underscores the importance of meeting the bid‑price rule, as failure to do so would trigger a delisting process that could severely limit trading and access to capital markets.
Financially, reAlpha reported a 326% year‑over‑year revenue increase to $1.45 million in Q3 2025, driven by its Technology Services segment and mortgage subsidiaries. However, the net loss widened to approximately $5.8 million from $2.1 million in Q3 2024, and the gross profit margin fell from 67% to 52% year‑over‑year. The margin decline is largely attributable to a higher mix of lower‑margin loan‑brokerage services. Cash on hand improved to $9.3 million from $7.0 million, reflecting recent equity financing and warrant exercises that have bolstered the company’s liquidity position.
Segment analysis shows that Technology Services—encompassing AI‑driven analytics and cloud infrastructure—generated the bulk of revenue, while mortgage subsidiaries contributed $1.04 million and the AiChat platform added $331,000. The shift toward lower‑margin loan brokerage services has pressured overall profitability, explaining the margin contraction. Despite the widening loss, the company’s cash runway has strengthened, providing a buffer to pursue strategic initiatives and meet the bid‑price requirement.
CEO Mike Logozzo emphasized that the extension offers “continued flexibility as we execute our strategic and operational priorities.” He highlighted the company’s focus on expanding its real‑estate and mortgage platforms, advancing AI technology, and potentially implementing a reverse stock split to address the bid‑price rule. CFO Piyush Phadke noted that recent capital raises have alleviated going‑concern doubts and positioned the company for sustained revenue growth.
The extension is a critical stopgap that allows reAlpha to address its bid‑price shortfall while pursuing growth initiatives. The company’s improved cash position and strategic focus on AI and real‑estate services provide a foundation for meeting the bid‑price requirement. However, the widening net loss and margin compression signal ongoing profitability challenges that management must manage as it works toward compliance and long‑term value creation.
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