Reliance Global Group Reports Second Quarter 2025 Financial Results and Provides Business Update

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]