Reliance Global Group, Inc. Q1 FY2025 earnings call

• Launch of Relay Auto Leasing, a service allowing agency partners to offer vehicle leasing with commissions on leases and bundled insurance, integrated into agent dashboard.
• Nearing completion of Spatner Associates acquisition, which will expand market footprint, enhance agency network, and create cross-selling opportunities across Reliance Exchange offerings.
• Continued enhancement of the Quote and Buy platform to streamline the insurance process through automation and expanded carrier access.

Commission income increased by $154,000 or 4% to $4.2 million in Q1 2025 from $4.1 million in Q1 2024. Commission expense increased to $1.5 million in Q1 2025 compared to $1.3 million in Q1 2024. Salaries and wages increased to $2.2 million in Q1 2025 compared to $1.8 million in Q1 2024. General and administrative costs increased to $1.5 million in Q1 2025 compared to $1.4 million in Q1 2024. Net loss decreased by $3.6 million or 68% to $1.7 million in Q1 2025 versus $5.3 million in Q1 2024. EBITDA improved significantly, from a loss of $74,000 in Q1 2024 to a gain of $145,000 in Q1 2025.

• Expect the Spatner Associates acquisition to contribute meaningfully to revenue growth and margin improvement through synergies.
• Confident in the scalable long-term growth trajectory with initiatives like Relay Auto Leasing, the Quote and Buy platform, and the Spatner integration.

• Forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's Form 10-K filed with the US Securities and Exchange Commission.

Q: Insights on the key benefits of the Spatner acquisition?

A: Brings increased EBITDA positivity, doubles revenue, and significant cross-selling potential with access to additional insurance products for Spatner's existing clients.

Q: Key drivers behind the positive adjusted EBITDA in the first quarter and trend moving forward?

A: Key drivers include the one firm operating model, streamlining expenses, cross-selling opportunities, and cost-consciousness; trend is expected to continue improving with technology and further integration efforts