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Reliance Global Group (RELI)
NASDAQ:RELI
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Reliance Global Group
(NASDAQ:RELI)
Rating:52Neutral
Price Target:
$1.50
▲(11.11%Upside)
Reliance Global Group (RELI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.02M
Dividend YieldN/A
Average Volume (3M)47.13K
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth2.40%
EPS Growth94.65%
CountryUS
Employees64
SectorFinancial
Sector Strength84
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.67
Shares Outstanding2,974,909
10 Day Avg. Volume28,798
30 Day Avg. Volume47,125
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.22
Price to Sales (P/S)0.00
P/FCF Ratio-1.67
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda-0.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Reliance Global Group Business Overview & Revenue Model
Company DescriptionReliance Global Group, Inc. engages in the acquisition and management of wholesale and retail insurance agencies in the United States. It provides healthcare and Medicare, personal and commercial, trucking, and employee benefits insurance products. The company was formerly known as Ethos Media Network, Inc. and changed its name to Reliance Global Group, Inc. in October 2018. Reliance Global Group, Inc. was incorporated in 2013 and is headquartered in Lakewood, New Jersey.
How the Company Makes MoneyReliance Global Group generates revenue through several key streams. In the insurance sector, the company makes money by underwriting insurance policies and earning premiums from policyholders. The company also partners with a network of independent agents to expand its reach and enhance its service offerings, earning commissions on the policies sold. In the real estate sector, Reliance Global Group earns income through the acquisition, management, and leasing of residential and commercial properties. The company benefits from rental income, property management fees, and potential gains from property appreciation. These combined efforts in insurance and real estate enable the company to diversify its revenue streams and mitigate risk across different market sectors.
Reliance Global Group Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 9.76%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in financial performance, strategic acquisitions, and new service launches, indicating strong momentum and growth potential. However, there were increased expenses in certain areas. Overall, the sentiment leans towards positive developments and confidence in future performance.Q1-2025 Updates
Positive Updates
Improved Financial Results
Reliance Global Group reported meaningful growth in organic revenues, significantly reduced net loss by 68%, and delivered an increase in EBITDA. The net loss decreased to $1.7 million in Q1 2025 from $5.3 million in Q1 2024.
Launch of Relay Auto Leasing
Introduced Relay Auto Leasing, a new service that enables agency partners to offer vehicle leasing, integrated into the agent dashboard. This innovation is expected to create a powerful recurring revenue stream and deepen client relationships.
Spatner Associates Acquisition
Near completion of the Spatner Associates acquisition, which is expected to expand market footprint, enhance agency network, and provide cross-selling opportunities, contributing meaningfully to revenue growth and margin improvement.
Positive Adjusted EBITDA
Achieved positive adjusted EBITDA, marking a significant improvement of 300% from a loss of $74,000 in Q1 2024 to a gain of $145,000 in Q1 2025.
Negative Updates
Increased Commission and Administrative Expenses
Commission expenses increased by $200,000 to $1.5 million, and general and administrative costs increased by $140,000 in Q1 2025 compared to Q1 2024. These increases were due to higher payouts and non-cash equity payments.
Increased Salaries and Wages
Salaries and wages increased by $400,000 to $2.2 million in Q1 2025 due to non-cash equity awards, although costs were controlled effectively by removing these charges.
Company Guidance
The Reliance Global Group's first-quarter conference call for fiscal year 2025 highlighted several key metrics and strategic initiatives aimed at enhancing growth and profitability. The company reported a 4% increase in commission income to $4.2 million and a 68% reduction in net loss to $1.7 million compared to the same period in 2024. Additionally, adjusted EBITDA improved significantly by 300%, marking a gain of $145,000. The launch of Relay Auto Leasing, which integrates vehicle leasing and insurance services, was a major development, promising recurring revenue and enhanced client relationships. The impending acquisition of Spatner Associates is expected to double revenue and significantly boost EBITDA, with promising cross-selling opportunities. Overall, the company emphasized its commitment to innovation and disciplined growth, setting a strong foundation for scalable long-term success.Reliance Global Group Financial Statement Overview
Summary
Reliance Global Group faces significant financial challenges, including persistent losses, high leverage, and negative cash flows. Despite revenue growth, profitability and financial stability are major concerns, with operational inefficiencies and weak cash management posing risks.Income Statement
Reliance Global Group has seen fluctuating revenue growth, with revenue increasing over the past two years. However, the company consistently experiences negative net income, indicating poor profitability. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.32
Negative
Balance Sheet
The debt-to-equity ratio is extremely high, suggesting significant leverage and financial risk. Stockholders' equity has decreased over time, and the equity ratio is low, implying limited financial stability. Negative return on equity further highlights poor shareholder returns.28
Negative
Cash Flow
The company has negative operating and free cash flows, indicating cash generation issues. While there has been some improvement in free cash flow over the past year, the overall cash flow position remains weak with limited liquidity.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.21M | 14.05M | 13.73M | 16.76M | 9.71M | 7.28M | Gross Profit |
| 4.52M | 2.64M | 2.50M | 4.78M | 2.61M | 2.06M | EBIT |
| -4.07M | -7.70M | -13.88M | -7.33M | 14.74M | -3.64M | EBITDA |
| -2.33M | -5.91M | -5.76M | -3.94M | -1.31M | -2.30M | Net Income Common Stockholders |
| -5.46M | -9.07M | -12.01M | 34.63M | -38.75M | -3.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 388.38K | 372.69K | 1.33M | 505.41K | 4.14M | 45.21K | Total Assets |
| 16.82M | 17.32M | 23.02M | 38.43M | 27.68M | 17.92M | Total Debt |
| 3.49M | 13.03M | 14.54M | 16.37M | 9.43M | 13.97M | Net Debt |
| 3.10M | 12.66M | 13.21M | 15.86M | 5.30M | 13.92M | Total Liabilities |
| 14.21M | 14.32M | 15.87M | 29.52M | 53.74M | 17.81M | Stockholders Equity |
| 2.62M | 3.00M | 7.15M | 8.91M | -26.07M | 114.39K |
| Cash Flow | Free Cash Flow | ||||
| -2.17M | -2.60M | -1.04M | -4.14M | -2.94M | -468.46K | Operating Cash Flow |
| -2.11M | -2.52M | -847.97K | -3.19M | -2.25M | -468.46K | Investing Cash Flow |
| -68.73K | 710.19K | 710.19K | -24.64M | -2.30M | -1.95M | Financing Cash Flow |
| 1.88M | 1.66M | 966.92K | 25.12M | 8.64M | 2.45M |
Reliance Global Group Technical Analysis
Positive
1.35
Price Trends
1.15
Positive
1.47
Negative
1.83
Negative
Market Momentum
0.03
Negative
65.14
Neutral
64.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELI, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.15, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 64.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELI.
Reliance Global Group Risk Analysis
Reliance Global Group disclosed 38 risk factors in its most recent earnings report. Reliance Global Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reliance Global Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.79B | 9.75 | 7.54% | 16970.99% | 12.09% | -7.43% | |
59 Neutral | $124.34M | ― | 3.19% | ― | 17.04% | 74.07% | |
54 Neutral | $20.34M | ― | -12.03% | ― | 158.74% | 14.86% | |
52 Neutral | $32.15M | 10.97 | 48.31% | ― | 80.80% | ― | |
52 Neutral | $4.02M | ― | -238.61% | ― | 2.40% | 94.65% | |
48 Neutral | $61.24M | ― | 0.80% | ― | 13.18% | 97.01% | |
48 Neutral | $20.53M | 11.44 | -0.10% | ― | 2.63% | -101.10% |
* Financial Sector Average
Performance Comparison
RELI
Reliance Global Group
1.35
-3.27
-70.78%
EHTH
Ehealth
4.10
-1.55
-27.43%
HUIZ
Huize Holding
2.04
-3.16
-60.77%
TIRX
Tian Ruixiang Holdings
2.00
-0.56
-21.88%
GOCO
GoHealth
5.51
-4.54
-45.17%
ZBAO
Zhibao Technology Inc. Class A
1.02
-3.41
-76.98%
Reliance Global Group Corporate Events
Executive/Board ChangesShareholder Meetings
Reliance Global Group Holds Virtual Annual Meeting
Neutral
May 29, 2025
On May 29, 2025, Reliance Global Group, Inc. held its virtual annual meeting of stockholders where several key decisions were made. The stockholders elected five directors to the board, approved the 2025 Equity Incentive Plan, endorsed the executive compensation package, and ratified the appointment of Urish Popeck & Co., LLC as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
Business Operations and StrategyFinancial Disclosures
Reliance Global Group to Host Q4 2024 Earnings Call
Neutral
Mar 4, 2025
On March 4, 2025, Reliance Global Group announced it will host a conference call on March 6, 2025, to discuss its financial results for the fourth quarter and the year ended December 31, 2024, and to provide a business update. The call will be accessible via telephone and webcast, with replays available until March 20, 2025. This announcement is part of the company’s ongoing efforts to communicate its financial performance and strategic direction to stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.