Reliance Global Group Inc Stock Price, News & Analysis

Reliance Global Group (Nasdaq: RELI) has announced a significant debt reduction of approximately $5.55 million, representing a 50% decrease in its long-term debt. The debt repayment was primarily funded through the $5.0 million proceeds from the sale of Fortman Insurance Services subsidiary, with additional funds from released cash collateral.

As a result of this strategic deleveraging, RELI's annual principal, interest, and service fee payments are expected to decrease from $2.95 million to $1.1 million, representing a 61% reduction in annual debt service obligations. The company plans to utilize this improved financial flexibility to support strategic initiatives, including the planned acquisition of Spetner Associates.

Reliance Global Group (Nasdaq: RELI) has completed the sale of its subsidiary Fortman Insurance Services for $5 million in cash. The transaction represents a profitable exit, as the sale price exceeds Reliance's initial 2019 purchase price for Fortman.

The strategic divestment of this non-core asset aims to strengthen the company's balance sheet and support its long-term growth initiatives. Additionally, Reliance reaffirmed its plans to complete the acquisition of Spetner Associates, which is expected to enhance the company's OneFirm strategy and operational scale.

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.

Reliance Global Group (NASDAQ: RELI) has secured a private placement agreement for up to $6.75 million, priced at-the-market under Nasdaq rules. The deal includes an immediate $2.5 million through the issuance of 1,488,096 common shares (or pre-funded warrants) at $1.68 per share, plus short-term warrants for 2,976,192 additional shares. The warrants, exercisable at $1.43 per share, could generate an additional $4.25 million if fully exercised within their two-year term. H.C. Wainwright & Co. serves as the exclusive placement agent. The offering, expected to close around June 20, 2025, is restricted to accredited investors under SEC regulations. Proceeds will support working capital and general corporate purposes.

Reliance Global Group (NASDAQ: RELI) has signed a non-binding LOI to sell its Fortman Insurance Agency subsidiary for $5 million in cash, representing a premium over the original acquisition price. The company plans to use the proceeds to support its planned acquisition of Spetner Associates, a growing insurance platform. Under Reliance's ownership, Fortman has undergone operational improvements, system upgrades, and leadership enhancements, resulting in an expanded customer base and market presence. CEO Ezra Beyman emphasizes that this strategic move demonstrates their ability to acquire, improve, and monetize assets while highlighting the underlying value in their portfolio. The transaction, subject to due diligence and definitive documentation, aligns with Reliance's OneFirm strategy and aims to enhance shareholder value through transformative growth opportunities.

Reliance Global Group (NASDAQ: RELI) announced the withdrawal of its Form S-1 Registration Statement (No. 333-284218) from the Securities and Exchange Commission (SEC). The registration statement, initially filed on January 10, 2025, was withdrawn as the company decided not to proceed with the planned public offering at this time. The company confirmed that the registration statement had not been declared effective by the SEC, and no securities were sold in connection with the proposed offering.

Reliance Global Group (NASDAQ: RELI) reported its Q1 2025 financial results, showing improved performance and strategic growth. Commission income revenue increased 4% to $4.24M compared to Q1 2024, while net loss decreased significantly by 68% to $1.74M. The company achieved positive Adjusted EBITDA of $145,407, a 297% improvement from the previous year's loss. Key developments include the upcoming Spetner acquisition and the launch of RELI Auto Leasing, which enables agency partners to offer vehicle leasing services nationwide. The company's OneFirm model and operational streamlining have contributed to cost efficiencies, despite increases in commission expenses and salaries primarily due to non-cash equity awards. Management remains focused on expanding market share and improving profitability through InsurTech innovations and disciplined fiscal management.

Reliance Global Group (NASDAQ: RELI) has announced it will host a conference call on Wednesday, May 14, 2025, at 4:30 PM Eastern Time to discuss its first quarter 2025 financial results and provide a business update. The call will be accessible via telephone and webcast, with U.S. callers able to dial toll-free at +1 888-506-0062 (access code: 848176). A webcast replay will be available through May 13, 2026, while a telephone replay can be accessed until May 27, 2025.

Reliance Global Group (NASDAQ: RELI) has launched RELI Auto Leasing, a new service enabling RELI Exchange Agency Partners to offer vehicle leasing nationwide with delivery to any location in the United States. The initiative allows insurance agents to earn commissions on both lease agreements and residual insurance policies.

Through the agent dashboard, partners can connect clients with leasing options without requiring specialized auto leasing training. The service integrates with RELI's existing insurance business, allowing agents to help clients project how different vehicles will impact their insurance premiums before making a decision.

The platform aims to strengthen client relationships by combining auto leasing and insurance services, providing a comprehensive solution for customers while creating additional revenue streams for agency partners. The service features competitive pricing and a wide selection of vehicles available for delivery across the U.S.