Reliance Global 2025 Q2 Earnings Misses Targets as Net Loss Widens 82%

Reliance Global (RELI) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company missed expectations, with revenue declining by 4.5% compared to the previous year. Despite narrowing losses per share, the net loss widened significantly, reflecting challenges in the period. Reliance remains focused on its strategic initiatives, anticipating a $3.0 million gain from the sale of Fortman Insurance Services in the third quarter. The outlook includes continued debt reduction and financial management improvements.

Revenue

Earnings/Net Income
Reliance Global narrowed its losses to $0.85 per share in 2025 Q2 from a loss of $2.76 per share in 2024 Q2, marking a 69.2% improvement. However, the net loss widened significantly to $-2.71 million in 2025 Q2 from $-1.49 million in 2024 Q2, an 82.0% increase. The EPS improvement suggests progress, but the net loss highlights ongoing financial challenges.

Price Action
The stock price of Reliance Global has dropped 3.03% during the latest trading day, has plummeted 15.23% during the most recent full trading week, and has plummeted 40.19% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Reliance Global (RELI) shares after a reported quarter-over-quarter revenue increase and holding for 30 days has proven to be significantly unprofitable. Over the past three years, this approach has led to a staggering return of -99.93%, far underperforming the benchmark return of 57.37% and generating an excess return of -157.30%. The strategy's compound annual growth rate (CAGR) was a troubling -80.23%, indicating severe depreciation. Moreover, the Sharpe ratio stood at -0.43, underscoring the strategy's poor risk-adjusted returns. Despite the maximum drawdown being 0.00%, suggesting no unrecoverable losses during the backtest period, the strategy consistently failed to capitalize on potential gains, reflecting its overall inefficiency.

CEO Commentary

Guidance

Additional News
Reliance Global Group has been actively pursuing strategic transformations alongside its financial restructuring efforts. Recently, the company announced the sale of Fortman Insurance Services, a move aimed at streamlining its portfolio and reinforcing its focus on tech-enabled, high-growth areas. This transaction is expected to yield a $3.0 million gain in the third quarter, further enhancing the company’s financial flexibility. Additionally, Reliance Global has launched RELI Auto Leasing, a new platform designed to expand revenue opportunities for its agency partners by offering auto leasing options and associated insurance services. This initiative is intended to provide a high-convenience experience for consumers while bolstering the value proposition of the RELI Exchange platform. These strategic moves underscore Reliance Global's commitment to innovation and market expansion, despite facing challenging financial metrics in recent periods.