reAlpha Tech Corp. Revenue Disclosure
Note 18 - Revenue
Revenue is disaggregated by reportable segment, consistent with how the Company manages its operations and evaluates performance. See Note 16 – Segment Information for additional information regarding the Company’s reportable segments, Homebuying Services and Technology Services.
Disaggregation of Revenue
Revenue from Contracts with Customers and Performance Obligations
The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, by identifying the contract with a customer, determining the distinct performance obligations within the contract, allocating the transaction price to those performance obligations, and recognizing revenue when (or as) control of the promised goods or services transfers to the customer.
AiChat generates revenue from its AI conversational customer experience solutions platform, which includes subscription-based platform access and related consulting services. Platform access represents a stand-ready performance obligation satisfied over time, and revenue is recognized ratably over the subscription term as customers simultaneously receive and consume the benefits of access to the platform. Consulting and implementation services are evaluated to determine whether they are distinct performance obligations. One-time services, such as project setup, are recognized at a point in time upon delivery, while ongoing consulting services are recognized over time as the services are performed. For contracts with multiple performance obligations, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. The Company uses an observable price to determine the standalone selling price for separate performance obligations or a cost-plus margin approach when one is not available.
reAlpha Mortgage generates revenue from mortgage brokerage commissions earned upon the successful funding of residential mortgage loans. Contracts generally contain a single performance obligation to arrange and facilitate a mortgage loan. Revenue is recognized at a point in time upon loan funding, which represents the completion of the brokerage services and satisfaction of the performance obligation.
GTG Financial generated revenue from mortgage brokerage activities by earning commissions upon the successful funding of residential mortgage loans. Its services included loan origination support, borrower application processing, coordination with lenders, and facilitating the closing process. Revenue was recognized at a point in time upon loan funding, which represents the completion of the brokerage services and the point at which the commission became fixed and determinable. Effective as of the Rescission Date, the Company’s acquisition of GTG Financial was rescinded, and its results are not included in the consolidated financial statements for periods thereafter (see Note 5 – Business Combinations – Rescission of GTG Financial Acquisition).
reAlpha Nepal generates revenue primarily from technology development and related service contracts. The Company generates revenue by providing tech support services. These arrangements generally include service-based performance obligations that are satisfied over time, as customers simultaneously receive and consume the benefits of the services provided. Revenue is recognized over time in a manner that reflects the continuous transfer of services to the customer.
Prevu generates revenue from brokerage commissions earned upon the successful completion of residential real estate transactions. Contracts generally contain a single performance obligation to provide brokerage services in connection with the purchase or sale of residential properties. Revenue is recognized at a point in time upon closing, when the Company has satisfied its performance obligation and is entitled to the commission. Prevu offers commission rebate programs under which a portion of the gross commission is rebated to the buyer at closing. The rebate amount is determinable at closing based on contractual terms and is recorded as a reduction of the transaction price, with revenue recognized net of rebates at the time of closing.
The following table presents our revenue disaggregated by revenue type:
| For the year ended December 31, 2025 | For the year ended December 31, 2024 | |||||||
| Technology Services | $ | 1,018,549 | $ | 337,540 | ||||
| Homebuying Services | 3,499,949 | 610,880 | ||||||
| Total | $ | 4,518,498 | $ | 948,420 | ||||
| For the year ended December 31, 2025 | For the year ended December 31, 2024 | |||||||||||||||
| Services transferred at a Point in time | Services transferred Over time | Services transferred at a Point in time | Services transferred Over time | |||||||||||||
| Technology Services | $ | 261,145 | $ | 757,404 | $ | 131,034 | $ | 206,506 | ||||||||
| Homebuying Services | 3,499,949 | 610,880 | ||||||||||||||
| Total | $ | 3,761,094 | $ | 757,404 | $ | 741,914 | $ | 206,506 | ||||||||
Transaction Price Allocated to the Remaining Performance Obligations
At December 31, 2025, we estimated that $396,227 of revenue related to the Technology Services segment is expected to be recognized in future periods for performance obligations that were unsatisfied (or partially unsatisfied) as of the end of the reporting period. We expect to recognize substantially all of these remaining Technology Services performance obligations as revenue during 2026.
Contract liabilities
Contract assets related to the Company’s Technology Services segment primarily represent the Company’s right to consideration for subscription-based platform access, consulting, and software development services performed but not yet billed as of the reporting date and are reclassified to accounts receivable when the right to consideration becomes unconditional; the Company did not have any such contract assets as of the reporting date. Contract liabilities related to the Technology Services segment consist primarily of advance consideration received or advance billings for subscription and service arrangements for which revenue has not yet been recognized, are recorded in deferred liabilities in the consolidated balance sheets, and are recognized as revenue as the related performance obligations are satisfied.
The following table provides information about contract assets and contract liabilities from contracts with customers:
| December 31, 2025 | December 31, 2024 | |||||||
| Deferred revenue | $ | 396,227 | $ | 278,908 | ||||
The revenue recognized during 2025 and 2024 that was included in the contract liabilities at the beginning of the respective periods amounted to $278,908 and $0, respectively.
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About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.