Strengthened financial position and scalable tech platform pave the way for accelerated growth and margin expansionLAKEWOOD, NJ, July 10, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance,” “we,” “us,” “our” or the “Company”) today announced that it has repaid approximately $5.55 million, or approximately 50% of its long term debt, a strategic action that reduces its leverage, strengthens its balance sheet, and enhances financial flexibility. The repayments were funded through p ...

The Company also reaffirmed its expectation that the acquisition of Spetner Associates, Inc. ("Spetner") will be completed. Spetner has built significant momentum in recent years, with consistent growth and healthy cash flow contributions across its operations. The transaction is expected to complement Reliance's existing business model and align with its OneFirm strategy, creating opportunities to expand operational scale and drive long- term value. Proceeds to further solidify balance sheet as Company adv ...

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]

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]

Core Viewpoint - Reliance Global Group, Inc. reported improved financial results for Q1 2025, highlighting organic revenue growth, reduced net loss, and increased AEBITDA, positioning the company for long-term growth and enhanced profitability [2][5]. Financial Performance - Commission income revenue increased by $153,782, or 4%, to $4,236,220 in Q1 2025 from $4,082,438 in Q1 2024, reflecting organic growth in insurance distribution channels [5]. - Commission expense rose by $192,885, or 15%, to $1,469,427 in Q1 2025 compared to $1,276,542 in Q1 2024, due to higher payouts to agents [5]. - Salaries and wages increased by $398,175, or 22%, to $2,229,837 in Q1 2025 from $1,831,662 in Q1 2024, primarily due to $540,015 in non-cash equity awards [5]. - General and administrative expenses increased by $141,388 to $1,516,228 in Q1 2025 from $1,374,890 in Q1 2024, mainly due to $484,970 of non-cash equity pay [5]. - Net loss decreased by $3,609,781, or 68%, to $1,736,882 in Q1 2025 from $5,346,663 in Q1 2024, driven by the elimination of impairment charges [5]. - Adjusted EBITDA (AEBITDA) increased by $219,061, or 297%, to a gain of $145,407 in Q1 2025 compared to a loss of ($73,654) in Q1 2024, indicating a trend toward increased profitability [5][14]. Strategic Initiatives - The company is focused on completing the Spetner acquisition, which is expected to enhance its insurance capabilities and strengthen its market position [2]. - The launch of RELI Auto Leasing allows agency partners to offer vehicle leasing services, enhancing client relationships and creating a new revenue stream [2]. - Continued adoption of advanced InsurTech solutions is transforming the agent experience through AI-driven automation and improved underwriting precision [2].

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 to compete with large national agencies while minimizing back-office costs [4] - Reliance also operates a B2C platform, 5minuteinsure.com, which uses AI and data mining to provide quick online insurance quotes for auto, home, and life insurance [4] - The company has a portfolio of retail insurance agencies that are leaders in their regions across the United States, offering a diverse range of insurance products [4] Upcoming Events - Reliance Global Group will host a conference call on May 14, 2025, at 4:30 PM Eastern Time to discuss Q1 2025 financial results and provide a business update [1] - The conference call can be accessed via telephone or through a webcast available on the company's investor relations website [2] Replay Information - A replay of the conference call will be available on the investor relations section of the company's website until May 13, 2026 [3] - Telephone replay will be accessible approximately one hour after the call until May 27, 2025 [3]