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]

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]