Latest news with #Spetner
Yahoo
2 days ago
- Business
- Yahoo
JPMorgan Backs RIL Despite Margin Pressures
On Thursday, analysts at JPMorgan reaffirmed their Overweight rating on Reliance Global Group, Inc. (NASDAQ:RELI), while raising the price target to INR1,568 from INR1,530, representing an upside of over 8% from the current levels. In their analysis, the analysts cited that although refining and petrochemical margins have dropped, the downside risk is likely to remain modest throughout the year. An insurance agent talking to a customer in their home office about healthcare insurance options. Having said that, the one-third contribution of the oil-to-chemical (O2C) segment means that there will only be a marginal impact on the consolidated EBITDA. Additionally, the Retail and Telecom segments are anticipated growth catalysts for Reliance Global Group, Inc. (NASDAQ:RELI), driven by favorable base influences. With the Spetner's Associates acquisition completion, the management believes that the strategic traction will accelerate the company's market footprint and expand the agency network. This improvement through synergies and other unanticipated positive factors could translate to higher margins and cost savings. The optimism surrounding EBITDA from the Telecom and Retail sectors can also not be overlooked. Reliance Global Group, Inc. (NASDAQ:RELI) is an InsurTech company that emphasizes acquiring and managing wholesale and retail insurance agencies across the United States. Founded in 2013, the giant leverages technology to transition from the conventional insurance agency model. While we acknowledge the potential of RELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
15-05-2025
- Business
- Yahoo
Reliance Global Group Inc (RELI) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Commission Income: Increased by $154,000 or 4% to $4.2 million in Q1 '25 compared to $4.1 million in Q1 '24. Commission Expense: Increased by $200,000 to $1.5 million in Q1 '25 compared to $1.3 million in Q1 '24. Salaries and Wages: Increased by $400,000 to $2.2 million in Q1 '25 compared to $1.8 million in Q1 '24, primarily due to non-cash equity awards. General and Administrative Costs: Increased by $140,000 to $1.5 million in Q1 '25 compared to $1.4 million in Q1 '24, primarily due to non-cash equity payments. Net Loss: Decreased by $3.6 million or 68% to $1.7 million in Q1 '25 versus $5.3 million in Q1 '24. AEBITDA: Improved by 300% from a loss of $74,000 in Q1 '24 to a gain of $145,000 in Q1 '25. Warning! GuruFocus has detected 6 Warning Signs with RELI. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reliance Global Group Inc (NASDAQ:RELI) reported meaningful growth in organic revenues, indicating successful market share expansion. The company significantly reduced its net loss by 68% compared to the previous year, showcasing improved financial management. RELI launched RELI Auto Leasing, a new service that offers vehicle leasing and insurance, creating a new revenue stream and enhancing client relationships. The upcoming acquisition of Spetner Associates is expected to double revenue and enhance cross-selling opportunities, contributing to profitability. Adjusted EBITDA improved by 300%, reflecting the company's focus on cost control and revenue growth, marking another quarter of positive AEBITDA. Commission expenses increased by $200,000, reflecting higher payouts to agents, which could impact profit margins. Salaries and wages rose by $400,000 due to non-cash equity awards, indicating increased operational costs. General and administrative costs increased by $140,000, primarily due to non-cash equity payments, which could affect overall profitability. Despite improvements, the company still reported a net loss of $1.7 million, indicating ongoing financial challenges. The reliance on forward-looking statements introduces risks and uncertainties that could affect future performance. Q: Can you share some insights into the key benefits that the Spetner acquisition will bring to Reliance? A: Ezra Beyman, Chairman and CEO, explained that the Spetner acquisition is expected to significantly increase AEBITDA positivity and profitability, as well as double the company's revenue. The acquisition will also provide tremendous cross-selling potential, as Spetner services over 85,000 employees who will now have access to Reliance's insurance products. Q: What were the key drivers behind the positive adjusted EBITDA in the first quarter, and how do you see it trending moving forward? A: Ezra Beyman highlighted a multi-faceted approach, including the OneFirm strategy, streamlining expenses, cross-selling, and being cost-conscious. The focus on increasing revenue while reducing expenses has been crucial, and with more technology available, further improvements are anticipated. Q: How has the launch of RELI Auto Leasing impacted the company and its agency partners? A: Ezra Beyman noted that RELI Auto Leasing is a transformative service that allows agency partners to offer vehicle leasing, earning commissions on leases and related insurance policies. This service is integrated into the agent dashboard, enhancing client relationships and creating a recurring revenue stream. Early feedback has been outstanding. Q: Can you elaborate on the financial performance improvements in Q1 2025 compared to Q1 2024? A: Joel Markovits, CFO, reported a 4% increase in commission income to $4.2 million, a decrease in net loss by 68% to $1.7 million, and a significant improvement in adjusted EBITDA by 300% to a gain of $145,000. These improvements are attributed to organic growth, cost efficiencies, and the absence of impairment charges. Q: What strategic initiatives are in place to ensure continued growth and profitability? A: Ezra Beyman emphasized the integration of Spetner Associates, the enhancement of the Quote & Bind platform, and the launch of RELI Auto Leasing as key initiatives. These efforts aim to expand services, increase revenue opportunities, and strengthen market presence, supporting scalable long-term growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
