reAlpha Releases InstaMortgage Pro Forma Financials After $8.5 Million Acquisition

reAlpha Tech Corp. released unaudited pro forma financial information for InstaMortgage on Wednesday, giving investors a fuller view of how the mortgage lender would have changed the company’s reported scale if the acquisition had been in place earlier.

For the six months ended June 30, 2026, reAlpha and InstaMortgage would have generated about $6.4 million in combined revenue and $4.6 million in combined gross profit on a pro forma basis. For all of 2025, the corresponding figures were about $11.8 million of revenue and $7.7 million of gross profit.

The September 23 disclosure also provided standalone operating figures for InstaMortgage, which reAlpha acquired in August. The lender generated about $4.5 million in revenue, $3.3 million in gross profit and $0.2 million in net income during the first half of 2026. It reported approximately $7.3 million in revenue, $5.3 million in gross profit and $0.1 million in net income for 2025.

Pro forma figures show a materially larger revenue base

The new figures illustrate why InstaMortgage is financially meaningful to reAlpha despite the relatively modest size of the acquisition. reAlpha reported approximately $2.0 million in standalone revenue and $1.3 million in standalone gross profit for the first six months of 2026. The pro forma presentation raises those measures to $6.4 million and $4.6 million, respectively, after giving effect to InstaMortgage as though the acquisition had already occurred.

The difference is also pronounced on a full-year basis. reAlpha reported roughly $4.5 million in revenue and $2.5 million in gross profit for 2025. Its newly released pro forma figures put combined 2025 revenue at about 2.6 times that standalone level and combined gross profit at about 3.2 times the amount reAlpha reported on its own. reAlpha described the change as an approximately 162% increase in 2025 revenue and a roughly 215% increase in gross profit on a pro forma basis.

Those comparisons do not mean reAlpha actually reported $11.8 million of consolidated revenue in 2025. The company said the unaudited pro forma information was prepared under Article 11 of Regulation S-X and, for the statements of operations, assumes the InstaMortgage acquisition had taken place on January 1, 2025. The presentation is intended to show the effect of the acquisition under specified assumptions rather than replace reAlpha’s historical financial statements.

reAlpha also cautioned that the figures are not necessarily indicative of the results the businesses would actually have produced had they been owned together throughout the periods shown. Nor should they be read as a forecast of future results. That distinction is important because future performance will depend on mortgage origination activity, expenses, financing conditions, regulatory approvals and reAlpha’s ability to operate the acquired lender within its broader real-estate platform.

InstaMortgage adds profitable lending operations and loan volume

The standalone figures provide more detail on the business reAlpha bought. InstaMortgage originated approximately $277.1 million in residential mortgage loans during 2025 and another $177.0 million in the first half of 2026. As of June 30, reAlpha said the lender had originated more than $3.5 billion of residential mortgages since 2015.

Unlike reAlpha’s existing mortgage brokerage model, InstaMortgage brings a full-cycle direct-lending operation that includes origination, underwriting, funding and loan sale. That gives reAlpha an internal lending path alongside its brokerage capabilities rather than requiring every mortgage customer to be handed to an outside lender. The company has framed that capability as part of a broader homebuying platform that also includes real-estate brokerage and title services.

The profitability figures are modest in absolute terms, but they matter in the context of reAlpha’s acquisition strategy. InstaMortgage reported positive net income in 2025 and remained profitable through June 2026, according to the company. reAlpha, by contrast, has continued to invest in expanding its platform and reported a full-year 2025 net loss even as revenue increased sharply from the prior year.

Management is also pointing to a broader base of loan officers and geographic overlap between reAlpha’s real-estate and mortgage services as possible sources of future efficiencies and additional revenue. Those benefits remain management expectations rather than established results. The pro forma disclosure itself does not demonstrate that cost savings or additional cross-selling have already been realized.

The $8.5 million acquisition still carries execution and regulatory considerations

reAlpha completed the InstaMortgage acquisition on August 19. Under the amended agreement, reAlpha bought all outstanding InstaMortgage shares for aggregate consideration of approximately $8.5 million, subject to closing adjustments. The consideration included $0.5 million in cash and $1.5 million of reAlpha common stock at closing, plus up to $6.5 million of deferred consideration payable in semiannual installments over three years. At least $1.5 million of that deferred amount must be paid in cash.

A Form 8-K filed with the Securities and Exchange Commission confirmed that the acquisition closed with InstaMortgage surviving as a wholly owned subsidiary of reAlpha. The filing also disclosed that reAlpha and InstaMortgage waived a closing condition tied to two outstanding state regulatory approvals rather than delay the closing.

reAlpha’s latest disclosure identifies Virginia and New York as the states where approvals remain relevant. The company has warned that failure to obtain those approvals on a timely basis, or at all, could affect InstaMortgage’s ability to operate in those jurisdictions. That is a concrete limitation on the geographic benefits reAlpha expects from the acquisition and remains separate from the larger question of how effectively it can scale the lender across markets where approvals are already in place.

The acquisition also creates future cash and share obligations because most of the purchase price is deferred. reAlpha can elect to settle much of that amount in cash or common stock, subject to the minimum cash requirement. Cash payments would draw on liquidity, while stock payments could dilute existing shareholders. That funding choice will remain relevant as the company balances acquisition obligations with spending on its wider real-estate technology and mortgage operations.

The September 23 pro forma release therefore adds useful scale and profitability data without resolving the main execution questions created by the acquisition. InstaMortgage enters reAlpha with an established loan-origination business and positive net income for the periods disclosed. The next evidence will come from reAlpha’s reported consolidated results, where investors will be able to compare the pro forma picture with the actual performance of the acquired lender under reAlpha ownership.