Reliance Global Group, Inc. (RELI)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered organic commission revenue growth to $4.24M (+4% YoY) and a 68% YoY reduction in net loss to $1.74M, driven by cost controls and the absence of prior-year impairment charges .
• Adjusted EBITDA turned positive to $0.15M versus a loss of $(0.07)M in Q1 2024, reflecting restructuring benefits under the OneFirm model; management emphasized continued profitability progress .
• Strategic catalysts include the launch of RELI Auto Leasing and continued enhancement of RELI Exchange’s Quote & Bind platform; management expects the pending Spetner acquisition to double revenue and improve EBITDA .
• No formal numerical guidance was issued; estimates coverage appears limited, and Wall Street consensus (S&P Global) was unavailable for Q1 2025 EPS/revenue comparisons. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

• Continued organic commission revenue growth to $4.24M (+$0.15M, +4% YoY) with positive AEBITDA of $0.15M, underscoring operational efficiencies from the OneFirm model .
• New offerings: RELI Auto Leasing enables agents to earn commissions on leases integrated into insurance workflows; early feedback “outstanding,” enhancing cross-sell and client retention .
• Pending Spetner acquisition viewed as materially accretive, with management stating it could “double our revenue” and increase EBITDA positivity through synergies and cross‑selling into a base of 85,000 employees .

What Went Wrong

• Operating expenses increased due to non-cash equity compensation: salaries and wages +$0.40M to $2.23M and G&A +$0.14M to $1.52M, partially obscuring underlying cost discipline .
• Commission expense grew 15% to $1.47M, reflecting higher payouts aligned with revenue growth; while consistent with top-line gains, it pressured near-term margins .
• Limited external coverage: no formal guidance and unavailable consensus estimates reduced ability to benchmark performance vs Street expectations. Values retrieved from S&P Global.*

Financial Results

Quarterly Financials (GAAP)

Values with asterisks (*) retrieved from S&P Global.

Q1 2025 Press Release Metrics vs Prior Year

Notes: Q1 2025 non-cash equity payments totaled $1,024,985; removing these shows decreasing underlying opex quarter-over-quarter .

Segment Breakdown

• Not disclosed; primary revenue reported as commission income across insurance distribution channels .

KPIs (Operating indicators)

• AEBITDA turned positive ($0.15M) vs prior-year loss, reflecting cost discipline and elimination of prior impairment .
• OneFirm operational model underpinning opex efficiencies despite equity comp headwinds .

Guidance Changes

Source: Q1 2025 press release and call; no numeric guidance disclosed .

Earnings Call Themes & Trends

Management Commentary

• “We are pleased to begin 2025 with improving financial results… 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.” — CEO Ezra Beyman .
• “Commission income increased by $154,000 or 4% to $4.2 million… Net loss decreased by $3.6 million or 68%… AEBITDA improved significantly by 300%… to a gain of $145,000.” — CFO Joel Markovits .
• “RELI Auto Leasing… 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.” — CEO Ezra Beyman .
• “Spetner… doubles our revenue… and brings us to a very important increase in EBITDA positivity… tremendous cross-selling potential.” — CEO Ezra Beyman (Q&A) .

Q&A Highlights

• Spetner acquisition impact: Management expects “day one” improvements in profitability and revenue, with cross‑sell into 85,000+ employees and strong technology benefits to streamline expenses .
• Adjusted EBITDA drivers: OneFirm synergies, cross‑selling, cost consciousness, and technology deployment; management expects continued improvement with more technology-enabled efficiencies .
• Capital allocation post-acquisition: Potential consideration of share repurchases given perceived undervaluation, alongside reinvestment in technology and growth initiatives (from Q3 2024 context) .

Estimates Context

• S&P Global consensus estimates for Q1 2025 EPS and revenue were unavailable; no analyst count data returned. Values retrieved from S&P Global.
• Given lack of formal guidance and estimates, near-term Street revisions are unlikely; focus remains on operational execution, M&A timing, and InsurTech adoption.

Key Takeaways for Investors

• Sequential improvement in profitability metrics: AEBITDA positive again and net loss sharply lower YoY; cost structure benefits from OneFirm, though equity comp temporarily elevates reported opex .
• Organic growth intact: Commission revenue up 4% YoY; QoQ revenue inflection vs Q4 2024 supports momentum into 2025. Values retrieved from S&P Global.
• Strategic catalysts: RELI Auto Leasing and expanded Quote & Bind enhance agent value proposition, deepen client relationships, and open new revenue streams .
• M&A upside: Pending Spetner acquisition expected to materially expand revenue and EBITDA with cross‑selling into a large employee base; watch for closing milestones and integration updates .
• Near-term trading: Absence of Street estimates may reduce headline-driven volatility; catalysts include acquisition closing news and further InsurTech adoption disclosures .
• Medium-term thesis: Scalable technology platform plus disciplined cost controls can drive sustained AEBITDA gains; successful M&A integration is key to margin expansion and cash generation .
• Monitoring: Track non-cash equity comp impact on opex, commission expense mix vs revenue growth, and any formal guidance initiation to improve external benchmarking .

Values retrieved from S&P Global.*