AIRE · 10-Q · 2026Q1 · Full report

Gross Margin Drivers

reAlpha Tech Corp. · 2026-04-28 · Importance 67 · Surprise 58 · From source text

Gross profit margin increased to approximately 66% in Q1 2026, up ~10 percentage points year‑over‑year, primarily due to lower cost of revenues after the rescission of GTG Financial and a higher mix of AiChat subscription revenue, which carries higher margins than real estate and mortgage operations. The company attributes the margin improvement to service mix shifts and the absence of high cost-of-revenue operations historically associated with GTG Financial. Management monitors gross margin to evaluate unit economics across homebuying and technology services and attributes changes to pricing, compensation/commission structures and technology/service delivery costs. The margin uplift reflects both structural mix changes and recent acquisitions integrating higher‑margin tech revenue.

Key facts

• Gross profit margin for the three months ended March 31, 2026 increased to approximately 66%, an increase of approximately 10% compared to the three months ended March 31, 2025. source
• Cost of revenue decreased approximately 29% compared to the three months ended March 31, 2025. source
• The increase in gross profit margin was mainly due to lower cost of revenues from the rescission of GTG Financial and increased subscription-related revenue from AiChat. source
• Gross profit for the three months ended March 31, 2026: $552,265. source
• Cost of revenue for the three months ended March 31, 2026: $288,797. source

Impact estimates