reAlpha Tech Corp. Segments Disclosure
Note 16 - Segment Reporting
The Company determined its reportable segments based on the nature of its products and services and how management organizes and evaluates the business. The Company’s operations are structured around two primary revenue-generating activities: (i) homebuying services and (ii) technology services. These activities have distinct service offerings, operational structures, and performance metrics, and are managed separately for purposes of resource allocation and performance assessment by the Company’s chief operating decision maker (CODM).
The Homebuying Services segment includes the Company’s integrated real estate brokerage, mortgage brokerage, and digital title and escrow services provided primarily through the reAlpha platform. The Technology Services segment includes software development services provided to third parties and the AI-powered conversational customer experience platform offered by AiChat. Management reviews financial information for these two segments separately in making operating decisions, evaluating performance, and allocating capital and personnel. Accordingly, the Company has concluded that it has two reportable segments: Homebuying Services and Technology Services.
Segment Information
Technology Services
The Technology Services segment includes AiChat’s AI conversational customer experience solutions platform, which provides subscription-based platform access and related consulting and implementation services. This segment also includes reAlpha Nepal’s technology development and monthly support services for third parties, as well as corporate-level technology activities of the Company.
Homebuying Services
The Homebuying Services segment consists of the Company’s residential real estate brokerage, mortgage brokerage, and related settlement services operations. This includes Prevu and reAlpha Realty, which provide residential real estate brokerage services to buyers and sellers; reAlpha Mortgage and GTG Financial, which provide residential mortgage brokerage services, including loan origination support and facilitation of loan closings; and Hyperfast, which offers title and related real estate settlement services.
FASB ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The Company’s , who is its CODM, reviews segment revenue and Segment Adjusted Operating Income on a segment basis for purposes of making operating decisions and assessing financial performance. For each segment, the CODM uses segment revenue and Segment Adjusted Operating Income in the annual budget and forecasting process and considers budget-to-actual variances when making decisions about allocating capital and personnel.
The following table present information about the Company’s reportable segments for the years ended December 31, 2025 and 2024 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements. Prior period segment information is presented on a comparable basis to the basis on which current period segment information is presented and reviewed by the CODM.
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue by segment | ||||||||
| Technology Services | $ | 1,018,549 | $ | 337,540 | ||||
| Homebuying Services | 3,499,949 | 610,880 | ||||||
| Consolidated revenue | 4,518,498 | 948,420 | ||||||
| Segment cost of revenues | ||||||||
| Technology Services | 153,048 | 174,486 | ||||||
| Homebuying Services | 1,914,012 | 127,598 | ||||||
| Consolidated segment cost of revenues | 2,067,060 | 302,084 | ||||||
| Segment operating expenses | ||||||||
| Wages, benefits and payroll taxes | ||||||||
| Technology Services | 798,127 | 273,516 | ||||||
| Homebuying Services | 1,224,440 | 294,450 | ||||||
| Marketing and advertising | ||||||||
| Technology Services | 27,176 | 23,661 | ||||||
| Homebuying Services | 285,614 | 208,294 | ||||||
| Professional and legal fees | ||||||||
| Technology Services | 63,379 | 34,736 | ||||||
| Homebuying Services | 133,454 | 89,842 | ||||||
| Other operating expense | ||||||||
| Technology Services | 109,060 | 78,071 | ||||||
| Homebuying Services | 593,085 | 176,323 | ||||||
| Consolidated segment operating expenses | 3,234,335 | 1,178,893 | ||||||
| Segment earnings | ||||||||
| Technology Services | (132,241 | ) | (246,930 | ) | ||||
| Homebuying Services | (650,656 | ) | (264,692 | ) | ||||
| Total consolidated segment operating loss | (782,897 | ) | (511,622 | ) | ||||
| Intangible amortization expense | 515,120 | 441,801 | ||||||
| M&A-related expenses | 137,770 | 517,251 | ||||||
| Corporate expense | 14,571,171 | 5,431,939 | ||||||
| Non-operating other expense (income), net | 1,583,434 | 834,360 | ||||||
| Net Loss from continuing operations before income taxes | (17,590,392 | ) | (7,736,974 | ) | ||||
| Income tax benefit | (54,260 | ) | ||||||
| Net Loss from continuing operations | $ | (17,590,392 | ) | $ | (7,682,714 | ) | ||
| (1) | Segment operating expenses consist primarily of wages and employee benefits, payroll taxes, marketing and advertising costs, professional and legal fees, and other direct operating expenses attributable to each reportable segment. |
| (2) | Intangible amortization expense primarily represents the amortization of definite-lived intangible assets recognized in connection with business combinations. |
| (3) | Acquisition related costs consist of acquisition-related costs, including transaction, advisory, legal, and other professional fees incurred in connection with business combinations. |
| (4) | Corporate expense includes costs that are managed at the corporate level and are not allocated to the reportable segments. These expenses consist primarily of executive and functional compensation, deal-related costs, and administrative expenses associated with the corporate headquarters. Unallocated corporate expenses also include finance, human resources, legal, and other management-related costs that are not considered by the CODM in evaluating segment performance. |
The following table presents information about the company’s reportable segment assets for the years ended December 31, 2025 and 2024:
| For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Total Assets by Segment | ||||||||
| Technology Services | $ | 389,911 | $ | 301,432 | ||||
| Homebuying Services | 256,213 | 336,758 | ||||||
| Corporate | 21,071,207 | 11,356,268 | ||||||
| $ | 21,717,331 | $ | 11,994,458 | |||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Apr 2, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.