Reliance Global Group Reports 2025 First Quarter Results and Provides Business Update

Rhea-AI Summary

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.

Positive

• Commission income revenue grew 4% to $4.24M in Q1 2025
• Net loss decreased significantly by 68% to $1.74M
• Achieved positive AEBITDA of $145,407, a 297% improvement YoY
• Launch of RELI Auto Leasing creating new revenue stream for agents
• Non-equity-based operating costs showing decreasing trend

Negative

• Commission expenses increased 15% to $1.47M
• Salaries and wages rose 22% to $2.23M
• General and administrative expenses increased by $141,388
• Company still operating at a net loss of $1.74M

Insights

Financial Analyst

RELI shows improved Q1 2025 results with 4% revenue growth and 68% reduced losses amid restructuring and new ventures.

Reliance Global Group has delivered a modest yet encouraging first quarter for 2025, with commission income rising 4% to $4.24 million compared to Q1 2024. While this growth rate isn't explosive, it represents continued organic expansion in their insurance distribution channels during a transformation period.

The financial health indicators show a company in transition with mixed signals. The 68% reduction in net loss to $1.74 million from $5.35 million year-over-year is substantial, though largely attributable to the absence of previous impairment charges rather than operational improvements alone. When examining core operations, the picture becomes more nuanced.

Commission expenses increased 15% while revenues grew only 4%, suggesting higher agent payouts proportional to sales. This could indicate either competitive pressure to retain top-performing agents or a strategic investment in growth. Similarly, reported salaries and administrative costs increased, though the company emphasizes these rises reflect $1.02 million in non-cash equity awards, with underlying cash expenses actually decreasing.

The shift to positive Adjusted EBITDA of $145,407 versus a loss of $73,654 in Q1 2024 represents a 297% improvement and marks consecutive quarters of AEBITDA gains. This metric, excluding non-recurring items and non-cash expenses, suggests the company's core operations are trending toward profitability.

The pending Spetner acquisition and launch of RELI Auto Leasing represent strategic diversification efforts. The leasing program particularly stands out as it creates a new revenue stream by enabling insurance agents to earn commissions on vehicle leases without requiring specialized auto finance expertise – potentially boosting agent productivity and client retention through service bundling.

The company's "OneFirm" initiative appears to be yielding operational efficiencies, though investors should note the emphasis on "non-cash" improvements and watch carefully whether these translate to actual cash flow improvements in coming quarters.

Company to Host Conference Call Today at 4:30 PM Eastern Time

LAKEWOOD, N.J., May 14, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the quarter ended March 31, 2025.

“We are pleased to begin 2025 with improving financial results that build on the momentum we achieved in 2024,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. “Our growth in organic revenues highlights the attractive strides we’ve made in expanding our market share. At the same time, the substantial reduction in net loss and the increase in AEBITDA reflect the sustained benefits of our disciplined fiscal management, streamlined operations under the OneFirm model, and the absence of prior-year impairment charges. This strong momentum has reinforced our foundation and positioned us for scalable, long-term growth with improved profitability.”

“We are excited about the road ahead as we build on the progress made in 2024 and move closer to completing the Spetner acquisition—an important milestone that is expected to enhance our insurance capabilities and strengthen our financial and market position. We also continue to drive innovation across our platform, most notably with the launch of RELI Auto Leasing. This new offering allows our RELI Exchange agency partners to provide clients with convenient access to vehicle leasing nationwide while earning commissions—without requiring expertise in auto finance. By integrating leasing into the insurance process, we are enhancing our value proposition, deepening client relationships, and opening a compelling new revenue stream for our agents. At the same time, the continued adoption of our advanced InsurTech solutions is transforming the agent experience through AI-driven automation, improved underwriting precision, and streamlined service. These innovations, combined with our disciplined approach to growth and operational excellence, position us to capitalize on emerging opportunities in the evolving InsurTech landscape. We believe the foundation we have put in place sets the stage for a period of exceptional expansion in 2025 and beyond, and we remain committed to delivering superior service to our agents and clients while driving long-term value for our shareholders,” concluded Mr. Beyman.

2025 First Quarter Financial Highlights

• Commission income revenue increased by $153,782, or 4%, to $4,236,220 in Q1 2025, compared to $4,082,438 in Q1 2024. This increase reflects continued organic growth across the Company’s insurance distribution channels.
• Commission expense increased by $192,885, or 15%, to $1,469,427 in Q1 2025, compared to $1,276,542 in Q1 2024. The increase reflects higher payouts to agents in line with rising commission volumes and improved agency performance.
• Salaries and wages increased by $398,175, or 22%, to $2,229,837 in Q1 2025, compared to $1,831,662 in Q1 2024. The increase is primarily due to $540,015 in non-cash equity awards, and indicates that overall, standard non-equity-based salaries and wages costs have been decreasing for the Company quarter over quarter.
• General and administrative increased by $141,388, to $1,516,228 in Q1 2025, compared to $1,374,890 in Q1 2024. The increase is primarily due to $484,970 of non-cash equity pay to certain of the Company’s directors and service providers, and indicates that overall, standard non-equity-based general and administrative costs have been decreasing for the Company quarter over quarter, reflecting management’s disciplined cost controls and efficiencies gained under our OneFirm initiative.
• Net loss decreased by $3,609,781, or 68%, to $1,736,882 in Q1 2025, compared to $5,346,663 in Q1 2024. This substantial improvement was driven by the elimination of impairment charges, and the Company’s continued focus on cost control and streamlining its operations. When further deducting the total non-cash equity payments of $1,024,985 discussed above, standard non-equity net loss further improves significantly as compared to the quarter in the prior year and is a testament to the Company’s focus and success in increasing its top-line revenues and managing its operating costs.
• Adjusted EBITDA (“AEBITDA”), our key non-GAAP financial measure, increased by $219,061, or 297% to an AEBITDA gain of $145,407 in Q1 2025, compared to an AEBITDA loss of ($73,654) in Q1 2024. This marks another quarter of AEBITDA gain for the Company and demonstrates the continued trend toward increased profitability, brought about through disciplined fiscal management and exciting organic operational growth.

Conference Call

Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025, as well as the Company’s corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 848176. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/52473 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.

A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through May 13, 2026. A telephone replay of the call will be available approximately one hour following the call, through May 27, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52473.

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 "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s most recent Annual Report on Form 10-K, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company's most recent Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contact:

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

INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Namely our key financial performance metric Adjusted EBITDA (“AEBITDA”) is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with GAAP. “AEBITDA” is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below, to result in Adjusted EBITDA (“AEBITDA”). The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company’s operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company’s operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained below.

We exclude the following items when calculating Adjusted EBITDA, and the following items define our non-GAAP financial measure “AEBITDA”:

• Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
  
• Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company’s core cash impacted operational performance.  
  
• Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it’s excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Other income (expense), net: Includes certain non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.  
  
• Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. Thes costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Non-standard costs: This account includes non-standard non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.  
  
• Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company’s ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.

The following table provides a reconciliation from net loss to AEBITDA for the 3 month periods ended March 31, 2025 and 2024, respectively:

		March 31, 2025				March 31, 2024
Net loss		$	(1,736,882	)		$	(5,346,663	)
Adjustments:
Interest and related party interest expense			325,242				410,286
Depreciation and amortization			360,595				534,152
Asset impairment			-				3,922,110
Equity-based compensation employees, directors, and service providers			1,024,985				154,912
Change in estimated acquisition earn-out payables			-				47,761
Other income, net			-				(11	)
Transactional costs			143,187				253,893
Non-standard costs			28,280				45,239
Recognition and change in fair value of warrant liabilities			-				(95,333
Total adjustments			1,882,289				5,273,009
AEBITDA		$	145,407			$	(73,654	)

FAQ

What were RELI's Q1 2025 financial results?

In Q1 2025, RELI reported commission income of $4.24M (up 4%), net loss of $1.74M (68% improvement), and positive AEBITDA of $145,407 (297% improvement YoY).

How much did Reliance Global Group's revenue grow in Q1 2025?

Reliance Global Group's commission income revenue grew by $153,782, or 4%, to $4.24M in Q1 2025 compared to Q1 2024.

What is RELI's new auto leasing initiative?

RELI Auto Leasing is a new offering that allows RELI Exchange agency partners to provide clients with nationwide vehicle leasing services while earning commissions, without requiring auto finance expertise.

How much did RELI reduce its net loss in Q1 2025?

RELI reduced its net loss by $3.61M or 68%, from $5.35M in Q1 2024 to $1.74M in Q1 2025.

What strategic initiatives is RELI pursuing for growth?

RELI is pursuing the Spetner acquisition to enhance insurance capabilities, launching RELI Auto Leasing, and implementing AI-driven automation and InsurTech solutions to improve operations.