Transaction Expected to Enhance Financial Flexibility; 50% of Net Proceeds to Further Reduce DebtLAKEWOOD, NJ, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance,” “we,” “us,” “our” or the “Company”) today announced that it has entered into a non-binding letter of intent to sell its two subsidiaries, U.S. Benefits Alliance, LLC and Employee Benefits Solutions, LLC (together, “EBS”), two non-core agencies located in Cadillac, Michigan. The agreement is subject to executio ...

Core Insights - Reliance Global Group has appointed Blake Janover as Chairman of its Crypto Advisory Board, aiming to enhance its blockchain-based value creation strategies in InsurTech and decentralized finance [1][6][7] - Janover is recognized for his leadership in integrating digital assets into public markets and will guide Reliance's Digital Asset Treasury initiative [2][5] - The appointment is strategically timed following significant consolidation in the crypto markets, which may present opportunities for disciplined digital asset allocation [6] Company Overview - Reliance Global Group, Inc. operates at the intersection of InsurTech and decentralized finance, leveraging AI and cloud technologies to improve efficiencies in the insurance industry [7] - The company offers a business-to-business InsurTech platform, RELI Exchange, and a consumer platform, 5minuteinsure.com, which provides quick online insurance quotes [7] Leadership Background - Blake Janover has over 20 years of experience and has been involved in billions of dollars in commercial property transactions and equity capital markets [4] - He previously founded and led Janover, which went public in 2023 and transitioned into Defi Development Corporation, focusing on digital asset transformation [2][4] Strategic Initiatives - As Chairman, Janover will collaborate with Reliance's management to advance the Digital Asset Treasury strategy and explore opportunities for tokenizing insurance-linked assets [5][6] - The tokenization initiative aims to enhance liquidity, accessibility, and efficiency in the insurance-linked marketplace, merging insurance with decentralized finance [6]

Core Insights - Reliance Global Group, Inc. reported a significant transformation in its financial position, highlighted by the $5 million sale of Fortman Insurance Services, resulting in a $3 million gain and a 50% reduction in long-term debt [2][4] - The company is on track to issue its first-ever dividend of $0.03 per share, payable on December 2, 2025, reflecting confidence in its operational strength and strategic direction [4][5] - The company is advancing its Digital Asset Treasury Initiative, integrating blockchain technology into its capital appreciation model, and has acquired positions in several leading digital assets [2][6] Financial Performance - Unrestricted cash increased by approximately 590%, or $2.2 million, to $2.6 million compared to the prior fiscal year-end, while working capital grew by $1.2 million, or 284%, to $1.6 million [2][9] - Equity improved by approximately $3.7 million, or 125%, to $6.8 million, indicating a strengthened balance sheet [2][9] - Commission income for Q3 2025 totaled $2.5 million, down from $3.4 million in Q3 2024, primarily due to the sale of Fortman Insurance Services [9] Operational Updates - The company has implemented a Client Service Center within its RELI Exchange platform to enhance scalability and operational efficiency [2] - Total operating expenses for the quarter included approximately $2.7 million in non-cash stock-based compensation, reflecting a strategic investment in talent retention [2][9] - The OneFirm initiative continues to drive cost alignment and operational efficiency across the organization [2] Future Outlook - The company expresses confidence in its strategic direction and long-term opportunities, emphasizing disciplined execution and sustainable growth [6] - Reliance aims to build a more focused business with stronger financial flexibility and a clear path toward long-term shareholder value [2][6]

Core Viewpoint - Reliance Global Group, Inc. will host a conference call on November 6, 2025, to discuss its third-quarter financial results and provide a business update [1]. Group 1: Conference Call Details - The conference call is scheduled for November 6, 2025, at 4:30 PM Eastern Time [1]. - U.S. callers can join the call by dialing +1 800-715-9871, while international callers can dial +1 646-307-1963 [2]. - A webcast of the call will be available on the company's investor relations website [2]. Group 2: Replay Information - A webcast replay will be accessible through the investor relations section of the company's website until November 6, 2026 [3]. - A telephone replay will be available approximately one hour after the call until November 20, 2025, with specific dialing instructions for U.S. and international callers [3]. Group 3: 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 B2B platform, RELI Exchange, offers independent insurance agencies tools to compete with larger national agencies while reducing operational costs [4]. - The B2C platform, 5minuteinsure.com, provides quick online insurance quotes for auto, home, and life insurance using AI and data mining [4]. - The company also operates a portfolio of retail insurance agencies across the U.S., offering a variety of insurance products [4].

Company Overview - Reliance Global Group, Inc. is an InsurTech pioneer utilizing artificial intelligence (AI) and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [3] - The company's B2B InsurTech platform, RELI Exchange, offers independent insurance agencies a comprehensive suite of business development tools, enabling them to compete with larger national agencies while minimizing back-office costs [3] - Reliance also operates a B2C platform, 5minuteinsure.com, which employs AI and data mining to provide competitive online insurance quotes for auto, home, and life insurance within minutes [3] - The company manages a portfolio of retail insurance agencies across the United States, which are recognized leaders in their respective regions, offering a diverse range of insurance products [3] Upcoming Events - Ezra Beyman, Chairman and CEO of Reliance, will participate in the 27th Annual H.C. Wainwright Global Investment Conference from September 8 to September 10, 2025, at the Lotte New York Palace Hotel [1] - The company's presentation will be available on-demand for registered attendees starting September 8, 2025, at 7:00 AM Eastern Time [2] - Management will engage in one-on-one meetings with qualified investors throughout the conference [2]

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 Viewpoint - Reliance Global Group, Inc. will host a conference call on July 30, 2025, to discuss its financial results for Q2 2025 and provide a business update [1]. Company Overview - Reliance Global Group, Inc. is an InsurTech pioneer utilizing artificial intelligence (AI) and cloud-based technologies to enhance efficiencies in the insurance agency and brokerage industry [4]. - The company's B2B InsurTech platform, RELI Exchange, offers independent insurance agencies a comprehensive suite of business development tools, enabling them to compete with larger national agencies while reducing back-office costs [4]. - The B2C platform, 5minuteinsure.com, employs AI and data mining to deliver competitive online insurance quotes for auto, home, and life insurance within minutes [4]. - Reliance also operates a portfolio of retail insurance agencies across the United States, providing a diverse range of insurance products [4].

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]