Executive Summary

Q1 2025 total revenue fell sharply to $0.392M, driven by a $6.419M net loss on equity holdings; net loss from continuing operations widened to $8.797M and total EPS was -$8.03 .
Managed Services products and services revenue was $6.811M (down 13.6% YoY), with management noting order volumes improved through the quarter and are expected to continue trending higher, albeit with macro uncertainty; equity holdings (Saltire, GreenFirst) drove losses and volatility .
Reinsurance exit progressing: sale of FG RE Corporate Member expected to close in Q2 2025 for $5.6M; LOI signed to sell remaining contracts in 2H 2025; additional $1.5M impairment recorded in Q1 to reflect fair value less costs to sell .
Post-merger cost actions continue; management judged G&A burdens “too high” for current scale and is evaluating further simplification and reductions; prior commentary emphasized consolidation and streamlining across 2024 transactions .
No Q1 2025 earnings call transcript or 8-K 2.02 press release found; comparisons to prior quarters use Q3 2024 10-Q and Q4/FY2024 8-K press release .

What Went Well and What Went Wrong

What Went Well

Managed Services resilience: products/services revenue of $6.811M despite box-office softness; management said “order volumes and revenues trend upward as the quarter progressed” and expects trends to continue .
Strategic simplification: “we implemented initiatives to consolidate multiple public companies and streamline and simplify our operating structure,” culminating in 2024 mergers and divestitures (Strong/MDI sale, SGE merger) with a strong year-end balance sheet ($109M assets, $74M equity) .
Reinsurance exit plan advancing: signed agreement for $5.6M sale (Q2 close) and LOI for remaining contracts (2H close), improving focus on core managed services/merchant banking .

What Went Wrong

Equity holdings volatility: net loss on holdings of $6.419M (Saltire and GreenFirst declines) drove a 91% YoY drop in total revenue to $0.392M and widened continuing operations loss to $8.797M .
Macro/box office headwinds: cinema customers delayed projects early in the quarter, contributing to lower managed services product revenue vs. prior year .
Additional non-cash charges tied to the reinsurance exit: cumulative impairment increased by $1.5M in Q1 on disposal group valuation (after a $2.1M charge in Q4 2024) .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($USD Millions)	$4.480	$10.453	$2.531	$0.392
Net Loss from Continuing Ops ($USD Millions)	$(5.076)	$(5.242)	$(5.519)	$(8.797)
Net Income (Loss) Total ($USD Millions)	$(4.445)	$17.659	$(7.432)	$(9.755)
EPS – Total ($USD)	$(6.71)	$15.06	$(6.23)	$(8.03)
EPS – Continuing Ops ($USD)	$(7.65)	$(4.98)	$(4.72)	$(7.28)

Segment performance and mix (Q1 2025):

Segment	Revenue ($USD Millions)	Segment (Loss) Income Before Taxes ($USD Millions)
Merchant Banking	$(6.291)	$(6.669)
Managed Services	$6.573	$(0.168)
Other	$0.110	$0.010
Corporate & Other Non-Segment	N/A	$(2.063)
Total Pre-Tax Loss	N/A	$(8.865)

KPIs and mix:

KPI	Q1 2024	Q1 2025
Net Product Sales ($USD Millions)	$4.637	$3.516
Net Services Revenue ($USD Millions)	$3.242	$3.295
Products & Services Total ($USD Millions)	$7.879	$6.811
U.S. Revenue ($USD Millions)	$7.728	$6.541
Canada Revenue ($USD Millions)	$0.007	$0.189
Europe Revenue ($USD Millions)	$0.126	$0.072
Other Regions ($USD Millions)	$0.018 (Asia+Other)	$0.009 (Other)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Sale of FG RE Corporate Member (portion of reinsurance)	Close timing	“Expect to close in first half of 2025”	“Expect close in Q2 2025; consideration $5.6M”	Maintained timeline; timing narrowed
Sale of remaining reinsurance contracts	Close timing	No prior LOI disclosed	“Non-binding LOI signed; expect close in second half of 2025”	Initiated and targeted timing
G&A and cost structure	FY 2025+	Streamlining and simplification post mergers	“G&A costs too high; evaluating additional actions to further simplify and reduce”	Maintained direction; increased urgency
Series A Preferred Dividend	Quarterly	$0.25/share in prior periods (e.g., Q3 2024)	$0.50/share declared in Q1 2025 ($447K)	Raised vs. Q3 2024

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript found; themes tracked from Q3 2024 10-Q and Q1 2025 10-Q MD&A.

Topic	Previous Mentions (Q3 2024)	Q4 2024	Current Period (Q1 2025)	Trend
AI/technology/SPAC platform/merchant banking	Equity method losses; SPAC-related valuation assumptions drive volatility	Not detailed in press release	Losses from Saltire/GreenFirst impacted holdings; volatility acknowledged	Continued valuation-driven volatility
Supply chain/box office/macros	STS demand improved; ICS acquisition support	Not detailed	Cinema customers delayed projects early; order volumes improved later in quarter; macro uncertainties persist	Early-quarter softness, improving trend
Regulatory/legal	Standard proceedings and asbestos suits reserve ~$0.1M	N/A	Proceedings reserve ~$0.3M; legacy landfill action noted	Slightly heightened legal disclosures
Reinsurance strategy	Added premiums/losses; FGRe operations	Announced plan to sell	Sale of FG RE corporate member (Q2 close); LOI for remaining contracts (2H)	Execution progress
Cost reduction/G&A	Higher G&A post-merger	Streamlining emphasized	G&A “too high,” further actions under evaluation	Intensified focus

Management Commentary

“During 2024, we implemented initiatives to consolidate multiple public companies and streamline and simplify our operating structure... We successfully completed three merger transactions, monetized one of our real estate holdings, and continued to drive operating profit improvements in our managed services business” — CEO Kyle Cerminara .
“Our balance sheet is strong, with $109 million in total assets, nominal long-term debt and $74 million in stockholders’ equity” — CEO commentary accompanying FY 2024 release .
“We saw order volumes and revenues trend upward as the quarter progressed and expect those trends to continue looking to the remainder of the year; however, we are monitoring the economic environment and customer order trends closely” — Q1 2025 MD&A .
“General and administrative costs continue to be too high for the current scale of the company… We are evaluating additional actions to further simplify our organization, reduce our general and administrative burden, and increase long term value creation” — Q1 2025 MD&A .

Q&A Highlights

No Q1 2025 earnings call transcript was found in filings; therefore, there are no Q&A highlights or clarifications to report for the quarter [ListDocuments 2025-01–2025-06 shows none; earnings-call-transcript not found].

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for FGF due to missing S&P Capital IQ mapping for the ticker; as such, beats/misses vs consensus cannot be assessed at this time [GetEstimates error: SpgiEstimatesError – missing mapping for 'FGF'].

Key Takeaways for Investors

Equity holdings drove the quarter: the $6.419M holdings loss overwhelmed operating revenue, compressing total revenue to $0.392M and widening continuing loss; holdings will remain a key swing factor for near-term results .
Managed Services underlying demand appears intact; watch for sustained order momentum and normalization as box office schedules improve through the rest of 2025 .
Reinsurance exit should improve strategic focus and simplify the story; monitor Q2 close of the $5.6M sale and second-half close of remaining contracts for cash and balance sheet clarity .
Continued cost actions likely: management explicitly flagged G&A burden as “too high”; incremental simplification could be a catalyst for improved operating leverage over the medium term .
Legal and regulatory disclosures ticked up modestly; current reserves (~$0.3M) appear manageable but warrant monitoring .
Quarter-to-quarter prints may remain volatile given equity method accounting and SPAC/merchant banking exposures (Saltire, GreenFirst, FGMP); position sizing should reflect this risk .
Near-term trading: news flow on reinsurance sale closings and any visible cost actions likely to drive sentiment; medium-term thesis hinges on stabilizing Managed Services growth plus reduced G&A drag and lower holdings volatility .

Appendix: Prior Quarter References

Q3 2024: revenue $10.453M; loss from continuing ops $(5.242)M; EPS total $15.06 (discontinued gains); managed services strength noted .
Q4 2024 (press release): revenue $2.531M; loss from continuing ops $(5.519)M; EPS total $(6.23); balance sheet assets $109.5M; equity $74.2M .

Fundamental Global Inc. (FGF)·Q1 2025 Earnings Summary