reAlpha expands mortgage operations with GTG Financial acquisition

DUBLIN, Ohio - reAlpha Tech Corp. (NASDAQ:AIRE), a technology firm in the real estate sector with a market capitalization of $88 million, today announced its acquisition of GTG Financial, Inc., a licensed mortgage brokerage operating in seven U.S. states, including California. According to InvestingPro data, the company’s stock has shown significant momentum, gaining over 46% in the past six months despite operating with negative EBITDA of $11 million. This move expands reAlpha’s presence to 28 states and is set to enhance its mortgage services within its AI-powered real estate platform.

The acquisition is part of reAlpha’s strategy to augment its mortgage operations and provide a more efficient home financing experience. GTG Financial’s integration is expected to improve reAlpha’s operational capacity and loan processing capabilities, offering more effective mortgage lending and refinancing services to homebuyers. While InvestingPro analysis indicates the company currently maintains a moderate debt level, its overall financial health score remains weak, suggesting this strategic move could be crucial for future growth.

Piyush Phadke, Chief Financial Officer of reAlpha, stated that the addition of GTG Financial will allow reAlpha to scale its lending services and advance its vision for a technology-driven real estate experience. GTG Financial will maintain its brand identity and continue under the leadership of founder Glenn Groves, while benefiting from reAlpha’s resources and generative AI platform.

Glenn Groves, CEO of GTG Financial, expressed confidence in the synergy between the two companies and the potential for reAlpha’s AI-driven platform to transform the real estate industry. Christopher Griffith, CEO of Be My Neighbor and a fellow Marine like Groves, highlighted the shared values of discipline and integrity as a foundation for the successful merger.

Further details regarding the terms of the acquisition will be available in reAlpha’s Current Report on Form 8-K, to be filed with the SEC.

About reAlpha Tech Corp., the company is known for developing a commission-free homebuying platform leveraging AI technology, aiming to streamline the homebuying process and make homeownership more accessible. Analysts anticipate sales growth in the current year, though the company is not expected to achieve profitability. Get deeper insights into reAlpha’s financial metrics and access 10+ additional exclusive ProTips with InvestingPro.

The information in this article is based on a press release statement from reAlpha Tech Corp.

In other recent news, reAlpha Tech Corp. has announced preliminary financial results for the fourth quarter and full year ending December 31, 2024. The company estimates quarterly revenue between $0.5 million and $0.6 million, with full-year revenue projected to be between $0.9 million and $1.0 million. Additionally, reAlpha Tech Corp. has appointed Vijay Rathna as its new Chief Crypto Officer to lead blockchain and cryptocurrency strategies. In a strategic development, the company has amended its sales agreement with A.G.P./Alliance Global Partners (NYSE:GLP), reducing the share price floor from $5.00 to $3.90. This adjustment is part of an "at the market" sales strategy with a potential offering price of up to $14,275,000. Furthermore, reAlpha Tech Corp. has launched a 2025 Short-Term Incentive Plan to drive revenue growth and enhance stockholder value. The plan includes performance-based restricted stock units tied to specific performance targets. Lastly, Piyush Phadke has been appointed as the new Chief Financial Officer, bringing over two decades of finance and capital markets experience to the company.

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