Executive Summary

Q2 2025 was dominated by a full-limit catastrophe loss (Hurricane Milton) that drove a 621% combined ratio and a net loss of $1.87M (-$0.25 EPS), versus a 111% combined ratio and -$0.14 EPS in Q2 2024 .
Results materially missed Wall Street consensus: EPS -$0.25 vs +$0.03 consensus and revenue $0.664M vs $1.105M consensus, reflecting the storm loss and higher G&A; estimate set size was thin (1 analyst)*. Values retrieved from S&P Global.
Management advanced its tokenized reinsurance strategy: announced a strategic partnership with Midnight Foundation (privacy-focused blockchain) and reiterated its position as the first Nasdaq-listed issuer of a tokenized reinsurance security; an EGM was scheduled to accelerate strategic initiatives .
Liquidity improved via capital raises; cash and restricted cash totaled ~~$6.65M at quarter-end (up from $5.89M at YE), supported by a registered direct offering (~~$2.7M net) and ongoing ATM sales .

What Went Well and What Went Wrong

What Went Well
- Net premiums earned increased slightly year over year to $0.582M (Q2 2025) from $0.564M (Q2 2024) on higher rates on contracts in force .
- Strategic progress in Web3/tokenized reinsurance: partnership with Midnight Foundation to bring tokenized reinsurance securities to a privacy-first chain; management highlighted first-mover status in tokenized reinsurance .
- Liquidity and balance sheet: total cash and restricted cash reached ~$6.65M at quarter end, aided by capital markets activity (registered direct + ATM), adding financial flexibility during storm-driven volatility .
What Went Wrong
- Hurricane Milton: Recognized a full limit loss of ~$2.29M on one reinsurance contract; loss ratio surged to 394% and combined ratio to 621% for Q2 2025, overwhelming underlying premium growth .
- Operating expense pressure: total expenses rose to $3.61M (vs $0.628M in Q2 2024), driven by the storm loss and higher IR/marketing, web3 tokenization, S-3, HR, and legal costs .
- Bottom line deterioration: net loss widened to -$1.87M (vs -$0.82M in Q2 2024) as catastrophe losses and higher G&A offset modest revenue improvements .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($USD)	$422,000	$692,000	$664,000
Net Premiums Earned ($USD)	$595,000	$595,000	$582,000
Net Income (Loss) ($USD)	$(460,000)	$(139,000)	$(1,873,000)
Diluted EPS ($USD)	$(0.05)	$(0.02)	$(0.25)
Loss Ratio (%)	0.0%	0.0%	394.0%
Expense Ratio (%)	83.5%	95.8%	227.0%
Combined Ratio (%)	83.5%	95.8%	621.0%

Year-over-year comparison (Q2 2025 vs Q2 2024)

Metric	Q2 2024	Q2 2025
Total Revenue ($USD)	$44,000	$664,000
Net Premiums Earned ($USD)	$564,000	$582,000
Net Income (Loss) ($USD)	$(821,000)	$(1,873,000)
Diluted EPS ($USD)	$(0.14)	$(0.25)
Loss Ratio (%)	0.0%	394.0%
Expense Ratio (%)	111.3%	227.0%
Combined Ratio (%)	111.3%	621.0%

Vs. S&P Global consensus (Q2 2025)

Metric	Consensus	Actual
Revenue ($USD)	$1,105,000*	$664,000
Primary EPS ($)	$0.03*	$(0.25)

Note: Values retrieved from S&P Global.

Additional KPIs and balance sheet

Cash and cash equivalents + restricted cash and cash equivalents: $6.653M at 6/30/25, up from $5.893M at 12/31/24 .
Unearned premiums reserve: $2.037M at 6/30/25 (vs $0.991M at 12/31/24), reflecting new 2025–2026 contracts .
Company reports a single operating segment (Web3/Property & Casualty Reinsurance) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance (Revenue/EPS/margins)	FY/Q3 2025	None provided	None provided	Maintained (no formal guidance)
Tokenized offering targets (non-GAAP product targets)	2025–2026	42% high-yield target reiterated	Added balanced-yield 20% target; 42% target reiterated	Expanded product suite

Management did not issue quantitative financial guidance for revenue, margins, or EPS.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Tokenized reinsurance/RWA strategy	Reiterated first tokenized reinsurance security; marketing and distribution build-out	Reinforced first-mover claim; announced Midnight Foundation partnership to enhance privacy-first RWA distribution	Positive momentum in partnerships and positioning
Catastrophe exposure and losses	Monitored Helene/Milton; no impacts as of Q4/Q1	Full-limit loss from Hurricane Milton recognized; 394% loss ratio and 621% combined ratio	Negative; cat event hit underwriting
Capital & liquidity	Reverse/registered direct offering ~$3M gross; strong cash build	~$2.7M net RD proceeds; additional ATM activity; cash + restricted cash ~$6.65M	Stable-to-improving liquidity
Strategic review / EGM	Strategic review contemplated to maximize value	Update on initiatives (potential carve-out/listing of SurancePlus) and EGM to accelerate strategy	Strategic optionality increasing
Compliance/transparency focus	Emphasis on compliance and audited financials	Conferences highlighted investor demand for compliance/transparency; “no leverage” structure underscored	Consistent emphasis; messaging resonating

Management Commentary

CEO tone and positioning: “We have not only expanded our footprint in the rapidly growing tokenized reinsurance market but also forged strategic partnerships that position us for accelerated growth. As the first Nasdaq-listed company to issue a tokenized reinsurance security, we are proving that innovation and compliance can go hand-in-hand.”
Strategy acceleration: “We have scheduled an Extraordinary General Meeting to approve measures that will accelerate our strategy and strengthen our leadership.”
Partnership milestone: Midnight Foundation partnership “positions SurancePlus at the forefront of next-generation high-yield, confidential RWAs,” marrying audit-grade transparency with programmable privacy for institutional distribution .
Loss drivers: CFO detailed the Milton-driven loss and ratio impact, citing a full limit loss of ~$2.3M and higher G&A tied to IR, web3 tokenization, legal, and S-3-related costs .

Q&A Highlights

Compliance and transparency as adoption drivers: “Investors…want to know what kind of compliance and transparency are part of our tokenized product…there’s no leverage on our product…PCOAB [PCAOB]-audited financials” .
EGM rationale: Building blocks now to move quickly “when the timing is right” for blockchain/RWA expansion; highlights massive TAM for reinsurance (~$700B) and tokenization opportunity .
Conferences and distribution: Engagement across blockchain/RWA events opened doors and partnerships to broaden reach (e.g., Midnight, Plume) .

Estimates Context

Q2 2025 misses: EPS -$0.25 vs +$0.03 consensus; Revenue $0.664M vs $1.105M consensus; one estimate each*. Values retrieved from S&P Global.
Implications: The full-limit cat loss and higher G&A likely drive near-term estimate cuts for profitability; expense run-rate and catastrophe seasonality may force models to reflect higher volatility until loss activity normalizes .

Key Takeaways for Investors

Cat volatility is the swing factor: A full-limit loss pushed the combined ratio to 621%; near-term trading likely remains sensitive to storm headlines and further loss development .
Liquidity cushion improved: ~$6.65M cash + restricted cash and recent equity inflows add flexibility to fund growth and absorb volatility .
Strategy catalysts: Midnight Foundation partnership and an EGM to accelerate strategic options (including a potential SurancePlus carve-out) could reshape the narrative toward distribution and platform value over time .
Expense trajectory matters: Elevated G&A tied to IR, tokenization, and legal/S-3 costs hurt the expense ratio; watch for normalization as scaling benefits materialize .
Estimate resets likely: Given the Q2 miss and cat loss, expect downward revisions to near-term earnings expectations and a wider range of outcomes during hurricane season*. Values retrieved from S&P Global.
Execution watchlist: Progress converting partnerships (Midnight/Plume) into assets under management and fee income, plus disciplined underwriting into 2025/26, will be key to re-rating .

Appendix: Additional Detail on Loss Drivers and Ratios

Hurricane Milton details: Full limit loss ~$2.29M; net equity impact ~$1.18M after tokenholder share .
Performance ratios (Q2 2025): Loss ratio 394.0%; Expense ratio 227.0%; Combined ratio 621.0% .
Expense bridge: Increase driven by storm loss plus higher IR/marketing, web3 tokenization, S-3, HR, and legal versus prior year .

Sources: Q2 2025 press release and 8-K (Item 2.02), Q2 2025 earnings call transcript, Q2 2025 10-Q, Q1 2025 press release and call, FY 2024 materials, and partnership/strategic update press releases .

OXBRIDGE RE HOLDINGS Ltd (OXBR)·Q2 2025 Earnings Summary