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Reliance Global Group, Inc. (RELI)·Q4 2024 Earnings Summary

Executive Summary

  • Reliance Global Group delivered modest top-line growth and material expense-driven loss improvement for FY 2024; Q4 disclosures focused on annual results rather than standalone quarterly figures. Commission income rose 2% to $14.05M, with net loss narrowing 24% to $(9.07)M and Adjusted EBITDA (AEBITDA) loss improving 39% to $(0.32)M .
  • Operating discipline and “OneFirm” integration underpinned a 21% YoY reduction in total operating expenses and a 45% improvement in loss from operations, according to management’s year-end call commentary .
  • Strategic catalysts remain the pending Spetner Associates acquisition (in final closing stages) and continued expansion of the AI-powered RELI Exchange Quote & Bind platform; management reiterated post-deal revenue near ~$28M and AEBITDA uplift, with timing shifting from H2’24 to early 2025/final stages .
  • No Q4-specific Wall Street consensus estimates were available via S&P Global at this time; as a result, beat/miss analysis versus Street is not provided.

What Went Well and What Went Wrong

What Went Well

  • Cost discipline and integration: “OneFirm” consolidation drove efficiency, with total operating expenses down 21% YoY and loss from operations improving 45% YoY for 2024, per CFO remarks .
  • Profitability trajectory: AEBITDA loss improved 39% YoY to $(0.32)M for 2024, continuing a trend toward EBITDA profitability; Q3 2024 achieved positive AEBITDA of ~$0.043M .
  • Platform expansion: RELI Exchange’s AI-driven Quote & Bind expanded carrier count and product breadth, designed to streamline workflows and improve underwriting precision, with management highlighting strengthened competitive positioning .

Selected quotes:

  • “Our OneFirm strategy has successfully integrated our agency operations into a unified, technology-driven platform, enhancing efficiency, reducing costs, and strengthening net operating results.” — CEO Ezra Beyman .
  • “Total operating expenses decreased by 21% or $5.9 million… loss from operations… improved by 45% or $6.2 million.” — CFO Joel Markovits .
  • “By leveraging AI, automation, and advanced data analytics, we are enhancing efficiency, improving underwriting precision, and delivering superior service…” — CEO Ezra Beyman .

What Went Wrong

  • Revenue growth modest vs. cost progress: Commission income increased only 2% ($14.05M vs. $13.73M), limiting operating leverage absent larger volume or mix improvements .
  • Commission expense pressure: Commission expense rose 12%, outpacing revenue growth due to revenue mix dynamics, pressuring margin capture at the gross level .
  • Acquisition timing slippage: Spetner closing timing shifted from “H2 2024” to “early 2025”/“final stages,” delaying the anticipated revenue step-up and AEBITDA boost .

Financial Results

Annual P&L and cost items (FY 2023 vs. FY 2024)

MetricFY 2023FY 2024
Commission Income Revenue ($USD)$13,731,826 $14,054,361
Commission Expense ($USD)$3,732,939 $4,189,599
Salaries & Wages ($USD)$7,503,052 $7,226,810
General & Administrative ($USD)$4,089,989 $4,219,635
Net Loss ($USD)$(12,009,982) $(9,071,584)
Adjusted EBITDA (AEBITDA) ($USD)$(526,798) $(321,224)

Quarterly trend (limited company-disclosed quarterly detail)

MetricQ2 2024Q3 2024
Revenue ($USD)$3.2M $3.4M
AEBITDA ($USD)$(177,966) ~$43,000

KPIs and operating ratios (FY 2024)

  • Total Operating Expenses YoY change: -21%
  • Loss from Operations YoY improvement: +45% ($6.2M)
  • AEBITDA YoY improvement: +39% (~$0.206M)

Notes:

  • Q4’24 standalone revenue/EPS were not disclosed in the press release or call; the company emphasized FY 2024 figures and qualitative drivers .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Spetner closing timingDeal closeClose in H2 2024 Early 2025 / Final stages Delayed
Post-close RevenueAnnualized~Double to ~$28M ~Double to ~$28M reiterated Maintained
Post-close AEBITDAAnnualized“Significantly boost AEBITDA” “Significantly boost AEBITDA” reiterated Maintained
RELI Exchange scopeOngoingBeta launch; building carriers/products Expanded carriers and product offerings; further enhancements underway Raised execution tempo

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
AI/InsurTech – Quote & BindQ2: OneFirm benefits, platform positioning; launch planning . Q3: AI-powered commercial Quote & Bind launched in beta; broader policy coverage .Expanded carriers/products; designed to streamline agent workflows and improve underwriting accuracy .Accelerating product breadth and integration
Spetner acquisitionQ2: Close H2’24; ~double rev to ~$28M; strong BenManage growth to 85k covered employees . Q3: Nearing close; EBITDA margin ~40%+; synergy/cross-sell potential .In final closing stages; continued confidence in value creation .Timing pushed but business case reinforced
Profitability trajectoryQ2: AEBITDA near breakeven; cost efficiencies (OpEx -13% YoY in Q2) . Q3: Positive AEBITDA ~$43k; operating cost improvements .FY AEBITDA loss improved 39%; operating expenses -21% YoY; loss from operations +45% .Improving toward sustained EBITDA profitability
Capital structure/Balance sheetQ2: Warrant overhang removed; simplified capital structure . Q3: Reiterated simplified structure .Simplified balance sheet; reduced fair value and warrant liabilities impact on P&L .Cleaner equity/liability structure sustained
Real estate initiativeQ2: Formation of real estate division post Spetner close . Q3: Not emphasized.Not discussed in Q4 materials .Deprioritized near-term; focus on core and Spetner

Management Commentary

  • Strategic focus and scale: “These initiatives have significantly improved profitability and… positioned the Company for long-term, scalable growth in the evolving InsurTech landscape.” — CEO Ezra Beyman .
  • Platform differentiation: “AI-driven automation enhances underwriting accuracy, while access to top-tier carriers ensures competitive pricing and diverse coverage options.” — Company statement .
  • Profitability lens: “The 39% EBITDA improvements demonstrate the Company's continued trend towards sustained EBITDA profitability.” — CFO Joel Markovits .
  • Acquisition momentum: “The planned Spetner acquisition… is in the final closing stages… expected to expand Reliance’s insurance offerings, further strengthening its competitive position…” — Company statement .

Q&A Highlights

  • Spetner status: Management indicated “we’re getting close” with “finishing touches” underway; reiterated excitement about growth metrics and cross-selling potential into >85k employees, signaling confidence in near-term closing and integration benefits .
  • No other substantive Q&A items were disclosed in the Q4 call transcript beyond status confirmation; Q&A was limited .

Estimates Context

  • EPS and revenue consensus for Q4 2024 via S&P Global were unavailable at this time due to data access limits; therefore, no beat/miss determination versus Street can be provided. If needed, we will update this section once S&P Global estimates are retrievable.
  • All company-reported figures cited herein are sourced from the firm’s press releases, 8-K Item 2.02 materials, and management’s Q4 and prior-quarter call transcripts .

Key Takeaways for Investors

  • Execution is skewing toward margin and cash discipline: FY 2024 shows meaningful expense reductions and improved AEBITDA, with Q3 demonstrating the first positive AEBITDA print in the year—supportive for a return to sustained EBITDA profitability post-integration .
  • The near-term stock catalyst is Spetner’s closing: timing slipped, but management characterizes the deal as in “final closing stages” with a path to ~doubling revenue and boosting AEBITDA; watch for closing announcement and first consolidated guide/print .
  • Commercial traction in RELI Exchange matters: expanding carrier/product breadth should enhance agent productivity and commission throughput; monitor attach rates and commission expense mix to ensure revenue growth monetizes with improving margins .
  • Mix and commission cost management are key: commission expense outpaced revenue growth in 2024; scaling volume and optimizing carrier/product mix will be critical to widening gross and operating margins as the platform scales .
  • Balance sheet simplification reduces P&L noise: liquidation/reduction of fair value and warrant liabilities lessens non-operating volatility, improving earnings quality optics as operations scale .
  • Real estate initiative appears secondary: emphasis shifted to core InsurTech and Spetner execution; treat property initiatives as optionality rather than a near-term driver .
  • Data watchlist: seek Q1 2025 (post-close, if applicable) clarity on consolidated revenue run-rate, AEBITDA bridge, integration costs, and KPIs (agent adoption, carrier count, policy bind velocity) to refine the medium-term profitability trajectory .

Sources: Company press releases and 8-K (Item 2.02) dated March 6, 2025; Dec 23, 2024 operational update; Q2 and Q3 2024 updates; and Q4 2024 earnings call transcript .