Reliance Global Group Inc. Q2 FY2026 earnings call

Organizational & Leadership Updates

• Completed significant simplification, streamlining and balance sheet strengthening over the past year to position the firm for long-term growth
• Added three key senior leaders: Judah Korman as Chief Operating Officer, Zack Wilder as Chief Technology Officer, and promoted Mody Beyman to Executive Vice President, bringing complementary experience in operations, technology, and product development to execute the strategy of building a technology-driven insurance company

Strategic Portfolio & Cost Efficiency

• Completed divestiture of non-core operations to create a more focused, efficient organization, with organic growth continuing within retained core insurance operations, demonstrating the strength of the core insurance platform
• Reduced total operating expenses by approximately 28% year-over-year and improved the net loss by approximately 26% year-over-year, building a stronger cost foundation for future growth

AI Platform Development Progress

• Achieved a key milestone with the successful development and launch of proprietary secure browser automation technology for insurance workflows
• AI platform is designed to automate repetitive, administrative workflow tasks (such as navigating carrier websites and processing transactions) that currently consume significant insurance professional time, improving efficiency, consistency, and customer service
• The platform is developed and tested internally within Reliance's own operating insurance business, allowing for real-world testing, refinement and immediate operational benefits, rather than being developed as a standalone technology product
• Management views insurance operations and AI/technology development as highly complementary: the core insurance business provides a live testing environment, while technology strengthens the core business and creates new long-term opportunities

The company does not break out financial performance for multiple distinct product segments in this call. All operating results are reported on a consolidated basis: consolidated commission income for Q2 2026 was $2.1 million, down from $3.1 million in Q2 2025, a decline driven by strategic portfolio realignment and non-core divestitures, partially offset by organic growth in retained insurance operations. Consolidated commission expense was $0.8 million (down from $1 million YoY), salaries and wages totaled $1.6 million (down from $2.6 million YoY), and general and administrative expenses were $1.2 million (down from $1.5 million YoY). Consolidated net loss attributable to Reliance Global Group improved to $2 million from a $2.7 million net loss in Q2 2025. Adjusted EBITDA (non-GAAP) was a $1.1 million loss, compared to a $0.4 million loss in the prior year quarter.

Management did not provide formal full-year financial guidance in this call. Key forward-looking statements include:

• Management expects the proprietary AI automation platform to begin generating new revenue within 6 to 9 months, with the potential for earlier commercialization
• AI-driven cost reduction is already in process for internal operations, as mundane administrative tasks are automated, freeing existing personnel to focus on revenue-generating activities
• The company will continue expanding AI platform deployment across internal operations, evaluating external commercialization opportunities, and maintaining disciplined cost management
• Management will continue evaluating strategic opportunities that leverage the company's new AI capabilities to strengthen the core business and support sustainable long-term growth

Standard risk disclosures were provided for all forward-looking statements:

• Forward-looking statements about future AI progress, revenue generation and growth are based on current management expectations, and are subject to significant risks, uncertainties and assumptions that could cause actual results to differ materially from expectations
• Material risks are outlined in the company's most recent Form 10-K filed with the U.S. Securities and Exchange Commission
• The company disclaims any obligation to update forward-looking statements after the date of this call

Q: The analyst asks what major milestones for the AI platform investors can expect over the next 6 to 12 months, after management highlighted the new technology in prepared remarks. / A: Management expressed strong enthusiasm for the rapid progress of the AI platform under new CTO Zack Wilder, noting that automated tasks that previously required human intervention are now completed end-to-end with no human input internally. Management declined to share unannounced details but confirmed rapid ongoing development is exceeding internal expectations.

Q: The analyst follows up asking when management expects the AI platform to begin generating new revenue for the company. / A: Management stated that the most likely timeline for the AI platform to begin generating revenue is 6 to 9 months, with some possibility of an earlier launch. Management also emphasized that AI is already delivering value today through internal cost reduction, as automation frees staff from mundane administrative work to focus on revenue-generating activities.