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OXBRIDGE RE HOLDINGS Ltd (OXBR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $0.645M and diluted EPS was -$0.02; both missed S&P Global consensus estimates of $0.742M revenue and -$0.01 EPS, driven by elevated operating costs tied to Web3/tokenization, IR, S-3, HR, and legal expenses. The quarter-over-quarter improvement in loss profile versus Q2 reflects the absence of Hurricane Milton losses in Q3, with the nine-month loss ratio still elevated at 132.4% due to the full-limit loss recognized in Q2 . EPS and revenue estimates marked with an asterisk below were retrieved from S&P Global.*
  • Year-over-year net loss narrowed to -$0.187M from -$0.540M in Q3 2024 on reduced unrealized losses and modestly lower premium rates; however, the expense ratio rose to 146.8% vs. 83.7% last year, lifting the combined ratio to 146.8% for the quarter .
  • Restricted cash and cash equivalents increased to $7.18M (+21.7% vs. 12/31/24) supported by premium deposits and a $2.7M registered direct offering; management reiterated fully collateralized underwriting and no leverage, emphasizing discipline and transparency .
  • Potential stock reaction catalysts: management is evaluating a shift to regular dividend payouts on security-backed CatRe tokens (moving away from purely annual payouts), and continued high-profile RWA/Web3 ecosystem engagement and partnerships that could broaden distribution .

What Went Well and What Went Wrong

What Went Well

  • Tokenized reinsurance performance exceeded targets: Balanced Yield Token (EtaCat Re) tracking ~25% vs. 20% target; High Yield Token (ZetaCat Re) on track for 42% target. “Our RWA tokenized reinsurance program is delivering attractive, high-quality, uncorrelated returns… while broadening investor participation.” — Jay Madhu .
  • Year-over-year loss narrowed: Q3 2025 net loss -$0.187M vs. -$0.540M in Q3 2024, primarily due to reduced unrealized losses on other investments .
  • Liquidity strengthened: Restricted cash and cash equivalents rose to $7.18M (+$1.28M vs. 12/31/24), supported by premium deposits and the $2.7M offering .

What Went Wrong

  • Operating costs surged: Expense ratio climbed to 146.8% in Q3 (vs. 83.7% YoY), driven by IR, Web3 tokenization, S-3, HR, and legal spend, lifting the combined ratio to 146.8% .
  • Consensus miss: Q3 revenue of $0.645M vs. $0.742M* and EPS of -$0.02 vs. -$0.01*, reflecting softer net premiums and higher G&A; coverage remains thin (one estimate) .*
  • Hurricane headwind in the nine months: Loss ratio at 132.4% YTD due to a full-limit loss on one contract affected by Hurricane Milton in Q2, pressuring total expenses to $4.99M for the nine months .

Financial Results

Headline Results vs. Prior Year and Prior Quarter

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$0.205 $0.664 $0.645
Net Premiums Earned ($USD Millions)$0.595 $0.582 $0.555
Diluted EPS ($USD)-$0.09 -$0.25 -$0.02
Loss Ratio (%)0.0% 394.0% 0.0%
Expense Ratio (%)83.7% 227.0% 146.8%
Combined Ratio (%)83.7% 621.0% 146.8%

Results vs. S&P Global Consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($USD Millions)$0.692 $0.664 $0.645
Revenue Consensus Mean ($USD Millions)$0.654*$1.105*$0.742*
EPS Actual ($USD)-$0.02 -$0.25 -$0.02
Primary EPS Consensus Mean ($USD)-$0.02*$0.03*-$0.01*
Revenue - # of Estimates1*1*1*
EPS - # of Estimates1*1*1*

Values retrieved from S&P Global.*

Revenue Composition

Revenue Component ($USD Millions)Q3 2024Q2 2025Q3 2025
Net Premiums Earned$0.595 $0.582 $0.555
Net Investment & Other Income$0.062 $0.093 $0.079
Change in Fair Value of Equity Securities-$0.028 -$0.012 $0.011
Unrealized (Loss) Gain on Other Investments-$0.424 $0.000 $0.000
Realized Gain on Other Investments$0.000 $0.000 $0.000
Total Revenue$0.205 $0.664 $0.645

KPIs

KPIQ3 2024Q2 2025Q3 2025
Loss Ratio (%)0.0% 394.0% 0.0%
Acquisition Cost Ratio (%)11.1% 11.0% 11.0%
Expense Ratio (%)83.7% 227.0% 146.8%
Combined Ratio (%)83.7% 621.0% 146.8%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Token Dividend Payout Cadence (SurancePlus security-backed CatRe tokens)OngoingAnnual payout model Considering regular dividend payouts (moving away from purely annual) Potentially raised frequency
Financial Guidance (Revenue, Margins, OpEx, OI&E, Tax Rate)Q4 2025 / FY25None providedNone providedMaintained at “no formal guidance”
Corporate Dividends (OXBR)OngoingNot discussedNot discussedNo change

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
Tokenized Reinsurance/RWA StrategyQ1: Established SurancePlus; pioneering tokenized reinsurance; democratizing access . Q2: Reinforced first Nasdaq-listed tokenized reinsurance; two-token product suite targeting 20% and 42% .Reiterated disciplined underwriting, fully collateralized, no leverage; strong token performance tracking ~25% and 42% .Sustained strategic focus; growing investor engagement .
Strategic Partnerships & DistributionQ1: MOU with Plume; exploring partnerships . Q2: Strategic partnership with Midnight Foundation; broadened distribution channels .Continued ecosystem presence (TOKEN2049, Rare Evo, Spectrum Cayman); pipeline expansion .Expanding partnerships and market presence .
Hurricane Milton ImpactQ1: Monitoring; awaiting finalized data . Q2: Full-limit loss (~$2.29M) recognized; loss ratio spiked; combined ratio >600% .No Q3 loss impact; quarterly loss ratio 0%, but nine-month loss ratio 132.4% .Acute in Q2; tapering in Q3; elevated YTD .
Expense Discipline & IR/Web3 CostsQ1: Expense ratio 95.8% (down YoY) . Q2: Expense ratio 227% (up sharply) .Expense ratio 146.8%; G&A up on IR, tokenization, S-3, HR, legal .Elevated vs. 2024; stabilization needed .
Regulatory/Compliance & TransparencyQ1: Emphasis on SEC compliance, AML/KYC, PCAOB audits . Q2: Reinforced compliance narrative; investor demand for transparency .Continued focus on compliant distribution and reporting; no leverage; fully collateralized contracts .Consistent positive narrative .
Dividend Policy (Tokens)Q1/Q2: Not discussed as regular payouts; tokens framed by return targets .Considering regular dividends on CatRe tokens .New consideration; potentially supportive for investor adoption .

Management Commentary

  • “We write fully collateralized one-on-one contracts and do not use leverage.” — Jay Madhu .
  • “The Balanced Yield Token… is on pace to achieve approximately 25%, exceeding its 20% target, while the High Yield Token remains on track to achieve its 42% return target.” — Jay Madhu .
  • “Total expenses… increased… due to increased professional costs relating to investor relations, our Web3 subsidiary tokenization costs, S-3 related costs, increased human resources and personnel costs and legal expenditures.” — Wrendon Timothy .
  • “We are evaluating a move towards regular dividend payouts for our security-backed CAC-RE tokens, moving away from a purely annual payout model.” — Jay Madhu .

Q&A Highlights

  • Q3 2025: No analyst Q&A; the operator closed the session without questions .
  • Prior quarters’ context: Analysts focused on tokenization marketing, compliance/transparency, and distribution partnerships; management highlighted PCAOB audits, fully collateralized/no leverage structure, and partnership with Plume/Midnight to expand channels .

Estimates Context

  • Q3 2025: Revenue $0.645M vs. $0.742M* consensus (miss of ~$0.097M); EPS -$0.02 vs. -$0.01* (miss of $0.01). Soft net premiums and higher G&A drove the shortfall relative to consensus .*
  • Q2 2025: Revenue $0.664M vs. $1.105M*; EPS -$0.25 vs. $0.03*, driven by Hurricane Milton full-limit loss and elevated expenses .*
  • Q1 2025: Revenue $0.692M vs. $0.654M* (beat); EPS -$0.02 vs. -$0.02* (in line), aided by realized gains and positive fair value changes .*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Elevated operating costs are the primary overhang; watch for normalization of IR/Web3/S-3/HR/legal spend to bring the expense ratio down toward historical levels and support underwriting profitability .
  • Hurricane Milton’s impact is contained to Q2; Q3 showed a 0% quarterly loss ratio, but nine-month metrics remain pressured; sequential trends should improve absent new catastrophe losses .
  • Token performance is a bright spot with ~25% tracking for balanced yield and 42% for high yield; adoption could be enhanced if management moves to regular token dividends, improving investor engagement and cash flow cadence .
  • Liquidity strengthened (restricted cash $7.18M), supported by premium deposits and equity raise; this provides runway for underwriting and product initiatives .
  • Coverage remains thin (one estimate), increasing the potential for outsized stock reactions on incremental disclosures; proactive monitoring of 8-Ks/press releases and RWA partnerships is warranted [GetEstimates: EPS/Revenue - # of Estimates = 1]*.
  • Near-term trading: Focus on expense trendlines and any updates on token dividend policy and distribution partnerships (e.g., Plume/Midnight) as catalysts .
  • Medium-term thesis: If Oxbridge can sustain disciplined, fully collateralized underwriting (no leverage) and scale compliant tokenized reinsurance distribution, it can diversify revenue and smooth catastrophe volatility, but execution on cost control and risk selection remains critical .

Source Documents

  • Q3 2025 8-K Item 2.02 press release and exhibits .
  • Q3 2025 earnings call transcripts and .
  • Q3 press releases: performance update and call announcement .
  • Prior quarters: Q2 2025 8-K and call ; Q1 2025 8-K and call .

Values retrieved from S&P Global.*