Reliance Global Group Reports 4% Revenue Growth and 68% Reduction in Net Loss for Q1 2025

Reliance Global Group, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $4.24 million, a 4% increase from $4.08 million in the same period last year. The company experienced a significant reduction in its net loss, which decreased by 68% to approximately $1.74 million compared to a net loss of $5.35 million in the first quarter of 2024. This improvement was attributed to a decrease in total operating expenses, which fell by 38% to $5.64 million, down from $9.11 million in the prior year.

The company’s operational metrics showed a notable increase in commission income, which rose by $153,782, primarily driven by organic growth. However, commission expenses also increased by 15% to $1.47 million, reflecting the growth in revenues. Salaries and wages saw a 22% increase to $2.23 million, influenced by non-cash share-based compensation, while general and administrative expenses rose by 10% to $1.52 million. The company reported a significant decrease in depreciation and amortization expenses, which dropped by 32% to $360,595, as a result of previously impaired intangible assets no longer incurring depreciation.

Strategically, Reliance Global Group has been active in expanding its market presence through acquisitions. As of March 31, 2025, the company had acquired nine insurance agencies and is in the process of acquiring Spetner Associates, a benefits enrollment company, for $16.05 million. This acquisition is expected to enhance the company’s offerings in voluntary benefits, serving over 75,000 employees across the United States. Additionally, the company launched its 5MinuteInsure.com platform, which allows consumers to compare insurance quotes quickly, further expanding its digital footprint.

In terms of financial health, Reliance reported cash and restricted cash of approximately $1.81 million as of March 31, 2025, with current liabilities totaling $3.93 million. The company has a negative working capital of about $77,000, indicating a need for careful cash management. Despite these challenges, management expressed confidence in the company’s ability to raise capital and continue operations without substantial doubt regarding its viability as a going concern.

Looking ahead, Reliance Global Group plans to focus on further geographic expansion and market share growth within the insurance sector. The company aims to leverage its acquisition strategy to enhance operational efficiencies and increase revenues. Management remains optimistic about the future, citing the potential for continued organic growth and the successful integration of acquired entities into its operational framework.