Fortman Sale Nets a $3 Million Gain and Provides Capital to Significantly Reduce Long-Term Debt

Company Progresses Digital Asset Treasury Initiative to Support Capital Appreciation Model

Company on Track to Issue First Dividend in Its History -- $0.03 Per Share Special Dividend Payable December 2, 2025

Company to Host Conference Call Today at 4:30 PM Eastern Time

LAKEWOOD, N.J., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) ("Reliance", "we" or the "Company") today reported its financial results for the third quarter ended September 30, 2025, and provided a strategic and operational update.

"The third quarter marked another important step in Reliance's transformation and execution of our long-term growth strategy," commented Ezra Beyman, Chairman and CEO of Reliance Global Group. "We completed the $5 million sale of Fortman Insurance Services $(FIS)$, a wholly owned subsidiary, monetizing an asset at an approximate $3 million gain. This transaction added capital to our balance sheet which we immediately deployed to decrease our long-term debt by approximately 50%, improving our financial flexibility, and allowing us to focus resources on scaling higher-margin business segments through our RELI Exchange platform. As a result of this and other prudent financial management steps taken, we have meaningfully strengthened our financial position-- our unrestricted cash increased approximately 590%, or $2.2 million, to $2.6 million, compared to the prior fiscal year-end, while working capital and equity grew by $1.2 million, or 284% to $1.6 million, and equity grew by $3.7 million or 125% to $6.8 million. Together, these achievements highlight our continued progress toward building a stronger, more resilient balance sheet that supports sustainable growth."

"As expected, the sale of Fortman Insurance Services (FIS) reduced short-term commission income, reflecting the divestiture of the asset; however, the transaction also eliminated related salary expenses and contributed to a leaner, more efficient operating model. In addition, we continued to advance our RELI Exchange platform with the addition of our Client Service Center, which enhances scalability by allowing agency partners to focus on growth while Reliance's centralized service team manages client requests and policy administration. This initiative is improving client satisfaction, partner productivity, and operational efficiency."

"Our OneFirm initiative continues to drive cost alignment and strengthen operational efficiency across the organization. These efforts, combined with our technology investments and focus on property, casualty, and health insurance growth, position Reliance for sustainable, technology-driven profitability. We are building a more focused business with stronger financial flexibility and a clear path toward long-term shareholder value. Notably, total operating expenses for the quarter included approximately $2.7 million in non-cash stock-based compensation. These equity awards reflect Reliance's continued commitment to aligning management and employee incentives with long-term shareholder value creation. While this resulted in higher reported salaries and administrative expenses, it represents a strategic, non-cash investment in talent retention and performance alignment rather than ongoing cash outflows."

"Beyond operational execution, we continue to look toward the future with our Digital Asset Treasury Initiative $(DAT)$ -- a disciplined, forward-thinking program that integrates blockchain technology into our long-term capital appreciation model," stated Moshe Fishman, member of the Reliance Global Group Crypto Advisory Board and Director of InsurTech at Reliance. "Supported by our Crypto Advisory Board, the DAT positions Reliance at the forefront of the convergence between InsurTech and decentralized finance. To date, the Company has strategically acquired positions across several leading digital assets -- including Bitcoin, Ethereum, Cardano, XRP, and Solana -- reflecting a diversified approach designed to balance long-term potential with prudent risk management. This carefully structured allocation underscores our commitment to innovation and financial discipline. We see this as an important step toward diversifying our treasury, enhancing technological expertise, and preparing the business for new opportunities that blockchain innovation can bring to insurance and financial services."

2025 Third Quarter Financial Highlights

(approximate figures)

   -- Liquidity was strengthened through prudent financial management, as 
      unrestricted cash increased approximately 590%, or $2.2 million, to $2.6 
      million, compared with the prior fiscal year-end. 
 
   -- Working capital improved by approximately $1.2 million, or 284%, to $1.6 
      million, and Equity improved by approximately $3.7 million, or 125%, to 
      $6.8 million, compared to the 2024 fiscal year-end, reflecting the 
      Company's continued focus on strengthening its balance sheet and 
      maintaining financial flexibility to support growth initiatives. 
 
   -- Commission income totaled $2.5 million in Q3 2025, compared to $3.4 
      million in Q3 2024. The change was primarily driven by the loss of 
      revenue following the sale of Fortman Insurance Services (FIS) and lower 
      medical commission revenues. 
 
   -- Commission expense was $1.0 million in Q3 2025, compared to $0.9 million 
      in Q3 2024. The slight increase was primarily influenced by market-driven 
      conditions in commission rates across the insurance sector. 
 
   -- Salaries and wages were $3.9 million in Q3 2025, compared to $1.7 million 
      in Q3 2024. The increase was primarily due to non-cash share-based 
      compensation, partially offset by the elimination of salaries related to 
      Fortman Insurance Services following its sale. 
 
   -- General and administrative expenses were $1.1 million in Q3 2025, 
      compared to $0.8 million in Q3 2024. The increase was substantially 
      driven by director non-cash equity awards, partially offset by OneFirm 
      efficiencies and overall leaner operations. 
 
   -- Net loss for the quarter was $1.2 million, compared to $0.8 million in Q3 
      2024 with the increase primarily being driven by the FIS sale, non-cash 
      equity compensation but offset the gain recognized on the sale of FIS. 
 
   -- Adjusted EBITDA ("AEBITDA") (Non-GAAP measure) loss for the quarter was 
      $0.7 million, compared to a gain of $0.04 million in Q3 2024. The 
      decrease was primarily due to the revenue decline and related 
      fluctuations in commission expense, as discussed above (see 
      reconciliation to AEBITDA below). 

In keeping with its ongoing commitment to disciplined financial stewardship, the Board of Directors approved a special cash dividend of $0.03 per share, payable on or about December 2, 2025, to shareholders of record as of October 30, 2025. This decision reinforces Reliance's balanced approach to growth and capital allocation, returning value to investors while maintaining the flexibility to advance its strategic initiatives.

"The declaration of this special dividend reflects our conviction in the strength of Reliance's operations and the resilience of our strategy. We are executing with discipline -- investing in technology and innovation while maintaining the financial flexibility to reward our shareholders. Our objective is to continue building value in a way that aligns long-term strategic growth with meaningful, near-term returns," added Mr. Beyman.

"Looking ahead, we are confident in our strategic direction and the long-term opportunities that lie before us. Our foundation is stronger, our operations are more efficient, and our innovation pipeline continues to expand. We are building Reliance for the future -- one defined by disciplined execution, sustainable growth, and enduring value creation for our shareholders," concluded Mr. Beyman.

Conference Call

Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company's financial results for the quarter ended September 30, 2025, as well as the Company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll-free +1 800-715-9871 for U.S. callers or +1 646-307-1963 for international callers and entering access code Reliance Global Group Inc. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/53204 or on the investor relations section of the Company's website, https://relianceglobalgroup.com/events-and-presentations/.

A webcast replay will be available on the investor relations section of the Company's website at https://relianceglobalgroup.com/events-and-presentations/ through November 6, 2026. A telephone replay of the call will be available approximately one hour following the call, through November 20, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 53204.

About Reliance Global Group, Inc.

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November 06, 2025 16:05 ET (21:05 GMT)