Reliance Global Group Highlights Strong Q1 Results from Spetner Associates

Rhea-AI Summary

Reliance Global Group (Nasdaq: RELI) has highlighted strong preliminary unaudited Q1 2025 financial results from Spetner Associates, a company they are in the process of acquiring. Spetner demonstrated exceptional performance with revenue growth of 95% year-over-year to $5.16 million and net income growth of 220% to $2.98 million.

The company reported significant improvements across key metrics, including an increase in operating income margin to 74% and doubled cash flows from operating activities to $2.6 million. These results align with Reliance's strategy of acquiring high-performing insurance distribution platforms to enhance their technology-driven business model.

Positive

• Revenue growth of 95% year-over-year to $5.16 million
• Net income surged 220% to $2.98 million
• Operating income margin increased to 74% from 46%
• Cash flows from operations doubled to $2.6 million
• Strategic alignment with RELI's acquisition strategy in insurance distribution

Negative

• Results are preliminary and unaudited
• Acquisition closing still pending

Spetner Reports 95% Revenue Growth and Tripled Net Income in Q1 2025, Highlighting Strong Profitability and Cash Flows Ahead of Planned Acquisition

LAKEWOOD, NJ, June 26, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance,” “we,” “us,” “our” or the “Company”) today highlighted the strong preliminary unaudited financial results of Spetner Associates, Inc. (“Spetner”) for the first quarter ended March 31, 2025. As previously announced, Reliance has entered into a definitive agreement to acquire Spetner, and the transaction continues to advance toward closing.

Spetner’s Q1 2025 Financial Highlights (Unaudited):

• Revenue increased by more than 95% year-over-year to approximately $5.16 million, compared with $2.64 million in Q1 2024.
• Operating income margin grew by 29% year-over-year to 74% from 46% in Q1 2024.
• Net income grew by 220% to approximately $2.98 million, more than triple the approximately $0.9 million reported for Q1 2024.
• Cash flows from operating activities increased by 112% to $2.6 million, more than double the $1.2 million generated in Q1 2024.

Ezra Beyman, CEO of Reliance Global Group, commented, “We’re thrilled with Spetner’s impressive first quarter results, illustrating full alignment with our strategy of acquiring and integrating high-performing cash-generating synergistic insurance distribution platforms. Combined with Reliance’s scalable operating model and technology-driven platform, the combined organization will be well positioned to generate consistent significant profits, returns and cash flows.”

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance.  In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “potential,” and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding:

• Our expectation that the acquisition of Spetner Associates, Inc. will close as planned or at all and continue to advance toward completion, including obtaining any necessary regulatory or shareholder approvals;
• Our objective to acquire and integrate high-performing, cash-generating synergistic insurance distribution platforms that align with our scalable, technology-driven model to drive shareholder value;
• Our intention to pursue disciplined, accretive growth opportunities across the InsurTech and insurance agency sectors; and
• Other statements regarding our plans, strategies, expectations and intentions concerning future operations, financial performance, and service offerings of either us, Spetner or the potentially combined company thereof.

These forward-looking statements are based on a number of assumptions, including the assumptions that: the LOI will not be terminated prior to execution of definitive purchase agreements; due diligence and documentation negotiations will proceed without material adverse findings; the Fortman sale and the Spetner acquisition will both close as expected; our revenue and EBITDA projections for Spetner are attainable; integration risks will be managed successfully; and there will be no material adverse changes in market, economic or regulatory conditions affecting our businesses. There can be no assurance that any of these assumptions will prove correct.

There are numerous risks and uncertainties that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These include, among others: the risk that the Fortman buyer may withdraw or renegotiate the terms of the LOI; delays or failure to complete either the Fortman sale or the Spetner acquisition; unanticipated liabilities or integration challenges in connection with Spetner; our inability to realize the projected revenue or EBITDA benefits; competition in the InsurTech and agency brokerage industry; changes in insurance regulation or Nasdaq listing requirements; general economic or financial market conditions; and the other risks and uncertainties described in the “Risk Factors” section of our Registration Statement on Form S-1 and our periodic reports filed with the Securities and Exchange Commission.

You should carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, and the other reports we have filed or will file with the SEC for a more complete discussion of risks and uncertainties. tExcept as required by law, Reliance Global Group, Inc. disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com 

FAQ

What were Spetner Associates' Q1 2025 revenue and net income results?

Spetner reported revenue of $5.16 million (95% growth) and net income of $2.98 million (220% growth) in Q1 2025.

How much did Spetner's operating margin improve in Q1 2025?

Spetner's operating income margin grew by 29% year-over-year to 74% from 46% in Q1 2024.

What was Spetner's cash flow performance in Q1 2025?

Cash flows from operating activities increased by 112% to $2.6 million, more than double the $1.2 million from Q1 2024.

Why is Reliance Global Group (RELI) acquiring Spetner Associates?

RELI is acquiring Spetner as part of its strategy to integrate high-performing cash-generating synergistic insurance distribution platforms with its scalable technology-driven platform.

What is the current status of RELI's acquisition of Spetner Associates?

The acquisition is proceeding under a definitive agreement and continues to advance toward closing, though the specific closing date was not disclosed.