Expanded Functionality Allows RELI Exchange Agency Partners to Prioritize Growth While Ensuring High-Quality Client ServicingLAKEWOOD, NJ, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today announced a significant enhancement to its RELI Exchange InsurTech platform through the launch of a next-generation Client Service Center. This expanded functionality empowers independent insurance agents to focus on acquiring new business while RELI Exc ...

Reliance Global Group (RELI) Q2 2025 Earnings Call July 30, 2025 04:30 PM ET Speaker0Greetings. Welcome to the Reliance Global Group Second Quarter Business Update Conference Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded.I will now turn the conference over to your host, Ted Avis, Investor Relations. Ted, you may begin.Speaker1Thanks, Paul. Good afternoon, and thank you for joining R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40020 RELIANCE GLOBAL GROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

Core Insights - Reliance Global Group has made significant progress in its long-term strategic objectives, despite a modest decline in overall revenue due to a shift in its medical/health client base, which was offset by an 8% increase in property and casualty (P&C) revenue [3][4] - The company has successfully reduced its long-term debt by approximately 50%, repaying around $5.6 million, which has lowered its annual debt service obligations by over $1.8 million and improved cash flow [3][5] - The launch of RELI Auto Leasing is expected to create new revenue streams for agency partners and enhance customer convenience, further strengthening the company's value proposition [3][5] Financial Performance - Commission income for Q2 2025 was $3.1 million, slightly down from $3.2 million in Q2 2024, primarily due to changes in the medical/health client base, while P&C revenue increased by 8% [4] - The net loss for Q2 2025 was $2.7 million, compared to a loss of $1.5 million in Q2 2024, influenced by non-cash equity compensation and acquisition-related costs [4] - Adjusted EBITDA (AEBITDA) loss for the quarter was $382,000, worsening from a loss of $178,000 in Q2 2024, driven by fluctuations in commission income and expenses [4][16] Strategic Initiatives - The sale of Fortman Insurance Services is a key step in streamlining the company's portfolio, expected to yield a gain of approximately $3.0 million in Q3 2025 [5] - The OneFirm strategy aims to unify agency operations, enhancing internal efficiency and collaboration, which is believed to position the company for sustainable growth and margin expansion [3][5] - Reliance Global Group continues to focus on tech-enabled, high-growth areas that align with its long-term vision for innovation-driven growth [3][5]

Core Insights - Reliance Global Group has successfully repaid approximately $5.55 million, reducing its long-term debt by about 50%, which enhances its financial flexibility and strengthens its balance sheet [1][2] - The debt repayment was funded through a $5.0 million asset sale of Fortman Insurance Services and the release of cash collateral, leading to a significant reduction in annual debt service payments from approximately $2.95 million to $1.1 million, a decrease of over $1.8 million or 61% [1][2] - The company aims to leverage its improved cash flow to support strategic initiatives, including the planned acquisition of Spetner Associates [2] Financial Position - The repayment of debt marks a transformative milestone for Reliance, reflecting the strength of its cash position and commitment to long-term financial health [2] - The reduction in annual debt service obligations enhances the company's cash flow profile, allowing for greater flexibility in funding strategic initiatives [2] Business Operations - Reliance Global Group is an InsurTech pioneer utilizing AI and cloud-based technologies to improve efficiencies in the insurance agency and brokerage industry [3] - The company's InsurTech platform, RELI Exchange, provides independent insurance agencies with business development tools to compete effectively, while its consumer platform, 5minuteinsure.com, offers competitive online insurance quotes [3]

Core Insights - Reliance Global Group, Inc. has completed the sale of its subsidiary Fortman Insurance Services for $5 million, which is part of a strategic initiative to monetize non-core assets and strengthen its financial position [1][2][4] - The sale price exceeds the initial purchase price of Fortman, indicating effective capital deployment and a focus on maximizing shareholder returns [2][4] - The company expects to finalize the acquisition of Spetner Associates, Inc., which has shown consistent growth and healthy cash flow, aligning with Reliance's business model and long-term value creation strategy [3][4] Financial Position - The proceeds from the Fortman sale will enhance the company's balance sheet and provide flexibility to advance strategic priorities [1][4] - The transaction is viewed as a key milestone in Reliance's strategic roadmap, reinforcing its commitment to enhancing and monetizing value within its portfolio [4] Strategic Initiatives - Reliance is focused on executing initiatives that streamline operations and support sustainable growth, aiming to transform into a tech-enabled insurance organization [4] - The company leverages AI and cloud-based technologies through its InsurTech platform, RELI Exchange, to improve efficiencies in the insurance agency/brokerage industry [5]

Core Insights - Spetner Associates, Inc. reported a 95% year-over-year revenue growth to approximately $5.16 million in Q1 2025, compared to $2.64 million in Q1 2024 [6] - Net income increased by 220% to approximately $2.98 million, more than tripling from approximately $0.9 million in Q1 2024 [6] - Operating income margin grew by 29% year-over-year to 74% from 46% in Q1 2024 [6] - Cash flows from operating activities increased by 112% to $2.6 million, more than double the $1.2 million generated in Q1 2024 [6] Company Overview - Reliance Global Group, Inc. is an InsurTech pioneer utilizing AI and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [4] - The company's platform, RELI Exchange, provides independent insurance agencies with a suite of business development tools to compete effectively with larger national agencies [4] - Reliance also operates a consumer platform, 5minuteinsure.com, which offers competitive online insurance quotes using AI and data mining [4] Strategic Direction - The CEO of Reliance expressed enthusiasm for Spetner's results, indicating alignment with the strategy of acquiring high-performing, cash-generating insurance distribution platforms [3] - The combined organization is expected to be well-positioned to generate consistent significant profits, returns, and cash flows [3] - Reliance aims to pursue disciplined, accretive growth opportunities across the InsurTech and insurance agency sectors [7]

Group 1 - Reliance Global Group, Inc. has announced a private placement for the issuance and sale of 1,488,096 shares of common stock and short-term warrants to purchase up to 2,976,192 shares at a price of $1.68 per share, with expected gross proceeds of approximately $2.5 million [1][3] - The short-term warrants will be exercisable at an exercise price of $1.43 per share and will expire two years from the effective date of the Resale Registration Statement [1][3] - The company intends to use the net proceeds from the offering for working capital and general corporate purposes [3] Group 2 - H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering [2] - The securities offered in the private placement are not registered under the Securities Act and are only available to accredited investors [4] - The company has agreed to file registration statements with the SEC covering the resale of the shares and shares issuable upon exercise of the warrants [4] Group 3 - Reliance Global Group, Inc. is an InsurTech pioneer utilizing AI and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [6] - The company's platform, RELI Exchange, provides independent insurance agencies with business development tools to compete effectively with larger agencies [6] - Reliance also operates a consumer platform, 5minuteinsure.com, which offers competitive online insurance quotes for auto, home, and life insurance [6]

Core Viewpoint - Reliance Global Group, Inc. has signed a non-binding Letter of Intent to sell Fortman Insurance Agency for $5 million, indicating a strategic move to unlock capital for the acquisition of Spetner Associates, which is expected to enhance shareholder value and operational efficiency [1][3][4]. Group 1: Transaction Details - The sale price of $5 million represents a significant premium over the original acquisition cost of Fortman, showcasing the company's ability to enhance and monetize its assets [1][3]. - Proceeds from the sale are intended to support the acquisition of Spetner Associates, a rapidly growing insurance platform that is expected to generate strong cash flow [3][4]. Group 2: Operational Enhancements - Since its acquisition, Reliance has made operational improvements at Fortman, including upgrading internal systems and establishing a strong leadership team, resulting in a well-capitalized agency with a growing customer base [2]. - The company aims to replace Fortman with Spetner to align with its long-term vision for scale, synergy, and sustained cash flow generation [4]. Group 3: Strategic Vision - The CEO of Reliance emphasized that the potential sale of Fortman reflects a disciplined capital allocation strategy and a commitment to value creation, highlighting the underlying value across the company's broader portfolio [3]. - Reliance's strategy focuses on pursuing transformative and accretive growth opportunities within the InsurTech and insurance agency industries [4].

Core Viewpoint - Reliance Global Group, Inc. has filed a request for withdrawal of its Registration Statement on Form S-1 with the SEC, indicating it will not pursue a public offering at this time [1] Company Overview - Reliance Global Group, Inc. is an InsurTech pioneer utilizing artificial intelligence and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [3] - The company's B2B platform, RELI Exchange, offers independent insurance agencies a suite of business development tools to compete with larger national agencies while reducing operational costs [3] - The B2C platform, 5minuteinsure.com, provides quick online insurance quotes for auto, home, and life insurance using AI and data mining [3] - The company also operates a portfolio of retail insurance agencies across the United States, offering a variety of insurance products [3]