Reliance Global Group Inc (RELI) 2025 Q1 法說會逐字稿

Good day, everyone. Welcome to the Reliance Global Group first-quarter business update conference call. (Operator Instructions)

大家好。歡迎參加 Reliance Global Group 第一季業務更新電話會議。（操作員指示）

It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations. Ted, the floor is yours.

現在我很高興將發言權交給主持人、投資人關係部 Ted Ayvas。泰德，現在輪到你了。

Thanks, Kelly. Good afternoon, and thank you for joining Reliance Global Group's 2025 first-quarter financial results and business update conference call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group; and Joel Markovits, Chief Financial Officer of Reliance.

謝謝，凱利。下午好，感謝您參加 Reliance Global Group 2025 年第一季財務業績和業務更新電話會議。今天與我們進行電話會議的有 Reliance Global Group 董事長兼執行長 Ezra Beyman 和 Reliance 財務長 Joel Markovits。

Earlier today, the company announced its operating results for the quarter ended March 31, 2025, and the press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company will be filing its quarterly report on Form 10-Q with the US Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020.

今天早些時候，該公司公佈了截至2025年3月31日的季度營運業績，新聞稿已發佈於公司網站www.relianceglobalgroup.com。此外，本公司將於今日向美國證券交易委員會提交10-Q表季度報告，該報告也可在公司網站以及美國證券交易委員會網站www.sec.gov上查閱。如果您在電話會議結束後有任何疑問或想了解更多關於公司的信息，請致電(212) 671-1020聯繫Crescendo Communications。

Before Mr. Beyman reviews the company's operating results for the quarter ended March 31, 2025, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements.

在貝曼先生回顧公司截至2025年3月31日的季度經營業績之前，我們想提醒大家，本次電話會議可能包含前瞻性陳述。本次電話會議中除歷史事實陳述以外的所有陳述，包括有關我們未來經營業績和財務狀況、戰略和計劃以及我們對未來經營的預期的陳述均為前瞻性陳述。

The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

預期、估計、期望、預期、計劃、尋求、打算、相信、可能、也許、將會、應該、可能、繼續、設計等詞語以及此類詞語的否定形式和其他類似表達的詞語和術語旨在識別前瞻性陳述。這些前瞻性陳述主要基於公司目前對未來事件和趨勢的預期和預測，公司認為這些事件和趨勢可能會影響其財務狀況、營運績效、策略、短期和長期業務營運和目標以及財務需求。

These 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. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

這些前瞻性陳述受到公司向美國證券交易委員會提交的 10-K 表格中所述的若干風險、不確定性和假設的影響。由於這些風險、不確定性和假設，本次電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能與前瞻性陳述中預期或暗示的結果有重大不利差異。

You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.

您不應依賴前瞻性陳述來預測未來事件。儘管公司認為前瞻性陳述中反映的預期是合理的，但它不能保證未來的結果、活動水準、績效或成就。此外，本公司或任何其他人士均不對這些前瞻性陳述的準確性和完整性承擔責任。

The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.

該公司不承擔更新任何前瞻性陳述的義務。所有與本公司有關的前瞻性陳述均完全符合這些警告性聲明以及本次電話會議上所做的其他聲明的明確限制。您應該在這些風險和不確定性的背景下評估公司所做的所有前瞻性陳述。

Having said that, I would now like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra?

話雖如此，我現在想把電話轉給 Reliance Global Group 董事長兼執行長 Ezra Beyman。以斯拉？

Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. I'm pleased to report that we're starting off 2025 on a strong note with improved financial results that build on the solid momentum we've established in 2024. We've seen meaningful growth in our organic revenues, which speaks to the progress we're making in expanding our market share. At the same time, we significantly reduced our net loss and delivered an increase in EBITDA.

謝謝，泰德。下午好，感謝大家今天的參加。我很高興地報告，我們在 2025 年開局強勁，財務業績有所改善，這得益於我們在 2024 年建立的強勁勢頭。我們的有機收入取得了顯著成長，這表明我們在擴大市場份額方面取得了進展。同時，我們大幅減少了淨虧損並實現了 EBITDA 的成長。

These gains reflect the continued benefits of our disciplined financial approach, the efficiency we've achieved through our streamlined OneFirm operating model, and the absence of impairment charges that impacted last year's results. Altogether, the momentum we're seeing has strengthened our foundation and positioned Reliance Global Group for scalable long-term growth with greater profitability.

這些收益反映了我們嚴謹的財務方法的持續效益、透過精簡的 OneFirm 營運模式實現的效率，以及沒有影響去年業績的減損費用。總而言之，我們所看到的勢頭增強了我們的基礎，並使 Reliance Global Group 能夠實現可擴展的長期成長並提高獲利能力。

One of the most exciting developments this quarter is the launch of RELI Auto Leasing, a transformative new service that enables our RELI Exchange agency partners to offer vehicle leasing to clients. Any vehicle delivering to any location in the US are earning commissions on both the lease and the related insurance policy. This service is fully integrated into the agent dashboard, requiring no additional training in auto finance.

本季最令人興奮的發展之一是推出 RELI 汽車租賃，這是一項變革性的新服務，使我們的 RELI Exchange 代理合作夥伴能夠為客戶提供汽車租賃服務。任何運送到美國任何地方的車輛都會從租賃和相關保險單中賺取佣金。該服務完全整合到代理儀表板中，無需額外的汽車金融培訓。

Agents now can guide clients through leasing options during standard policy consultations, whether for new vehicles or replacements after accidents. Clients benefit from competitive pricing, nationwide delivery, and advanced insight into how different vehicles may impact their premiums. This integration deepens client relationships and introduces a powerful recurring revenue stream for our partners. Early feedback from agents has been outstanding, and we believe this innovation further distinguishes RELI Exchange as a complete solution for independent agencies.

代理商現在可以在標準保單諮詢期間指導客戶選擇租賃方案，無論是購買新車還是事故後更換車輛。客戶可享受有競爭力的價格、全國範圍內的送貨服務以及對不同車輛如何影響其保費的深入了解。這種整合加深了客戶關係，並為我們的合作夥伴帶來了強大的經常性收入來源。代理商的早期回饋非常出色，我們相信這項創新進一步使 RELI Exchange 成為獨立代理商的完整解決方案。

We are also nearing completion of the Spetner's Associates acquisition, a strategic transaction that will expand our market footprint and enhance our agency network. Spetner brings deep experience in personal and commercial lines, along with strong client relationships and a proven team of agents. Their integration will add scale, complement our existing capabilities, and create immediate cross-selling opportunities across RELI Exchange offerings, particularly Quote & Bind and RELI Auto Leasing.

我們也即將完成對 Spetner's Associates 的收購，這是一項策略性交易，將擴大我們的市場覆蓋範圍並增強我們的代理商網路。Spetner 在個人和商業領域擁有豐富的經驗，並且與客戶關係密切，擁有一支經驗豐富的代理商團隊。他們的整合將擴大規模，補充我們現有的能力，並在 RELI Exchange 產品（尤其是 Quote & Bind 和 RELI Auto Leasing）之間創造直接的交叉銷售機會。

We expect this acquisition to contribute meaningfully both -- to both revenue growth and margin improvement through synergies, and we view it as a significant step toward our InsurTech growth strategy. With these milestones, RELI Auto Leasing, the continued enhancement of our Quote & Bind platform and the upcoming Spetner Associates integration, we are more confident than ever in our trajectory towards scalable long-term growth.

我們預計此次收購將透過綜效對營收成長和利潤率提高做出重大貢獻，我們認為這是我們邁向 InsurTech 成長策略的重要一步。憑藉這些里程碑、RELI Auto Leasing、Quote & Bind 平台的持續增強以及即將到來的 Spetner Associates 整合，我們對實現可擴展長期成長的軌跡比以往任何時候都更有信心。

Each initiative adds meaningful dimension to our strategy, expanding services for our agency partners, increasing revenue opportunities, and strengthening our presence across key markets. RELI Auto Leasing introduces a powerful new offering that allows agents to better serve their clients while generating additional income. Our Quote & Bind platform continues to streamline the insurance process through automation and expanded carrier access.

每項措施都為我們的策略增添了有意義的維度，擴大了我們為代理合作夥伴提供的服務，增加了收入機會，並加強了我們在主要市場的影響力。RELI Auto Leasing 推出了一項強大的新產品，使代理商能夠更好地服務客戶，同時創造額外收入。我們的 Quote & Bind 平台透過自動化和擴大承運商存取權限繼續簡化保險流程。

Meanwhile, the integration of Spetner Associates is expected to broaden our footprint, complement our capabilities, and create valuable cross-selling opportunities across the platform. Together, these efforts reflect our ongoing commitment to innovation, disciplined growth, and shareholder value. We look forward to building on this momentum as we move through 2025 and beyond.

同時，Spetner Associates 的整合預計將擴大我們的業務範圍、補充我們的能力並在整個平台上創造寶貴的交叉銷售機會。總的來說，這些努力體現了我們對創新、穩健成長和股東價值的持續承諾。我們期待在 2025 年及以後繼續保持這一勢頭。

I would like to now turn the call over to Joel Markovits, Chief Financial Officer of Reliance Global, to review the financial results for the quarter ended March 31, 2025. Joel?

現在，我想將電話轉給 Reliance Global 財務長 Joel Markovits，以審查截至 2025 年 3 月 31 日的季度財務表現。喬爾？

Thank you very much, Ezra, and good afternoon. It will be my pleasure to share with you some of our key financial highlights for the quarter ended March 31, 2025. All figures presented are approximates. Commission income increased by $154,000 or 4% to $4.2 million in Q1 '25 compared to $4.1 million in Q1 '24. The 4% increase reflects encouraging continued organic growth across our insurance distribution channels.

非常感謝，埃茲拉，下午好。我很高興與您分享截至 2025 年 3 月 31 日的季度的一些主要財務亮點。所有呈現的數字均為近似值。2025 年第一季佣金收入為 420 萬美元，較 2024 年第一季的 410 萬美元增加了 15.4 萬美元，增幅為 4%。4% 的成長反映了我們保險分銷管道令人鼓舞的持續有機成長。

Commission expense increased by $200,000 to $1.5 million in Q1 '25 compared to $1.3 million in Q1 '24. The increase reflects higher payouts to agents in line with the increased revenues. Salaries and wages increased by $400,000 to $2.2 million in Q1 '25 compared to $1.8 million in Q1 '24. The $400,000 increase is primarily due to non-cash equity awards in the amount of $540,000. And removing the impact of these non-cash equity charges, salaries and wages actually decreased quarter over quarter, a testament to cost efficiencies deployed by the company while still being able to grow revenues.

2025 年第一季佣金支出增加 20 萬美元，達到 150 萬美元，而 2024 年第一季為 130 萬美元。這一增長反映了隨著收入增加，支付給代理商的金額也隨之增加。2025 年第一季度，薪資和薪水增加了 40 萬美元，達到 220 萬美元，而 2024 年第一季為 180 萬美元。40 萬美元的增幅主要歸因於 54 萬美元的非現金股權獎勵。除去這些非現金股權費用的影響，工資和薪水實際上環比下降，證明了公司在提高成本效率的同時仍然能夠增加收入。

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 $485,000 of non-cash equity payments to certain of the company's directors and service providers. And when removing the impact of these non-cash equity charges, general and administrative costs show a handsome decrease quarter over quarter, a reflection of management's disciplined approach to cost controls and the success of our OneFirm business model.

2025 年第一季的一般及行政費用為 150 萬美元，較 2024 年第一季的 140 萬美元增加了 14 萬美元，主要原因是向公司某些董事和服務提供者支付了 48.5 萬美元的非現金股權支付。當消除這些非現金股權費用的影響時，一般和行政費用環比大幅下降，這反映了管理層對成本控制的嚴格態度以及我們的 OneFirm 商業模式的成功。

Net loss decreased by $3.6 million or 68% to $1.7 million in Q1 '25 versus $5.3 million in Q1 '24. This substantial 68% improvement is a result of no new asset impairment charges during our current quarter and the company continuing to remain laser focused on streamlining its operations, increasing its revenues, and controlling its costs. AEBITDA, our adjusted EBITDA metric, a non-GAAP measure by key company performance indicator, improved significantly by 300% in Q1 '25 from a loss of $74,000 in Q1 '24 to a gain of $145,000 in Q1 '25, a $220,000 increase. This marks another quarter of AEBITDA gain for the company and demonstrates our continued trend towards sustained and increased profitability.

2025 年第一季淨虧損為 170 萬美元，較 2024 年第一季的 530 萬美元減少 360 萬美元（68%）。這一 68% 的大幅成長是由於本季沒有新的資產減損費用，而且公司繼續專注於精簡營運、增加收入和控製成本。AEBITDA 是我們調整後的 EBITDA 指標，這是一項非 GAAP 關鍵公司績效指標，2025 年第一季大幅改善了 300%，從 2024 年第一季的虧損 74,000 美元增至 2025 年第一季度的盈利 145,000 美元，增加了 220 美元。這標誌著公司又一個季度的 AEBITDA 獲利，顯示我們繼續保持持續和增加獲利的趨勢。

In summary, as mentioned by Ezra, we've gotten off to a very good start in 2025 with exciting organic growth in our revenues, decreasing cash operating costs, and increasing net AEBITDA gains. With our scalable operating model, focus on innovation and expansion of our market footprint by organic and acquisitive growth, we remain firmly committed to continuously build a highly profitable business enterprise that delivers long-lasting value to our employees, investors, and shareholders.

總而言之，正如 Ezra 所提到的，我們在 2025 年取得了非常好的開端，收入實現了令人興奮的有機成長，現金營運成本下降，淨 AEBITDA 收益增加。憑藉我們可擴展的營運模式，專注於創新以及透過有機成長和收購成長擴大我們的市場足跡，我們堅定地致力於不斷打造一個高利潤的商業企業，為我們的員工、投資者和股東提供持久的價值。

We'll now turn the call back to the operator to open the lines for questions, comments, and/or feedback. Operator?

我們現在將把電話轉回給接線員，以便解答疑問、評論和/或回饋。操作員？

(Operator Instructions) [Nicole Kaufman, Black Ridge Capital].

（操作員指示）[Nicole Kaufman，Black Ridge Capital]。

Good afternoon, gentlemen. Thanks for taking my questions and congrats on the positive quarter. My first question is related to the Spetner acquisition. So once this is complete, can you share some insights into the key benefits that Spetner will bring to Reliance?

先生們，下午好。感謝您回答我的問題，並祝賀本季取得積極進展。我的第一個問題與 Spetner 收購有關。那麼，一旦完成，您能否分享一些關於 Spetner 將為 Reliance 帶來的主要好處的見解？

Yes, sure. We're excited about that. Well, God willing, it first of all brings us to a very important -- significant increase in AEBITDA positivity, profitability and also doubles our revenue. And that doesn't even take into account the amazing and tremendous cost-selling potential. Remember, they service over 85,000 employees. And we have many insurance products that they haven't had access until now. So we really see that as a tremendous potential as well aside from the intrinsic on day-one increase in profitability and revenue. But we're really excited about it.

是的，當然。我們對此感到很興奮。好吧，如果上帝願意的話，它首先為我們帶來了一個非常重要的——AEBITDA 積極性和盈利能力的顯著提高，同時也使我們的收入翻了一番。這還沒有考慮到驚人而巨大的成本銷售潛力。請記住，他們為超過 85,000 名員工提供服務。我們有許多他們至今還無法獲得的保險產品。因此，除了獲利能力和收入在第一天的內在成長之外，我們確實認為這也具有巨大的潛力。但我們對此感到非常興奮。

Well, thank you for that. And then going into adjusted EBITDA, so congrats on achieving positive adjusted EBITDA again. Obviously, this is an important milestone. What were the key drivers behind the positive adjusted EBITDA in the first quarter, and how do you see it trending moving forward?

嗯，謝謝你。然後進入調整後的 EBITDA，恭喜您再次實現正調整後的 EBITDA。顯然，這是一個重要的里程碑。第一季調整後 EBITDA 呈正成長的主要驅動因素是什麼？您認為其未來趨勢如何？

So I think the -- I mean, it's really a multi approach, not just one, focusing, like Joel mentioned, on the OneFirm approach, streamlining expenses when we can across different the different agencies; also, cross-selling and offering more selling abilities to our in-house agents and the downline agents; and bring, of course, focus also on good old-fashioned, not wasting money.

所以我認為——我的意思是，這實際上是一種多方法，而不僅僅是一種方法，就像喬爾提到的那樣，專注於OneFirm方法，在不同的機構之間精簡開支；同時，交叉銷售並為我們的內部代理商和下線代理商提供更多的銷售能力；當然，也要注重傳統的好方法，不要浪費錢。

Trying to be cost conscious when we know as time goes on, you see where to spend the money and where not to waste the money. So a combination of increasing revenue, like we've actually showed on the reducing expenses. And we look forward actually with today, more and more technology available to -- in all these areas to improve. We look forward to even more exciting increases.

隨著時間的推移，我們會努力提高成本意識，知道在哪裡花錢，在哪裡不浪費錢。因此，就像我們在減少開支方面所實際展示的那樣，增加收入是一種結合。事實上，我們期待著今天有越來越多的技術可用來改善所有這些領域。我們期待更多令人興奮的成長。

Well, thank you very much. I appreciate that insight. If I have another question, I'll hop into the queue. Thank you.

嗯，非常感謝。我很欣賞這種見解。如果我還有其他問題，我會加入隊列。謝謝。

Great. Thank you very much.

偉大的。非常感謝。

(Operator Instructions) There are no additional questions in queue at this time. I would now like to turn the floor back over to management for any closing remarks.

（操作員指示）此時隊列中沒有其他問題。現在我想將發言權交還給管理階層，請他們做最後發言。

Thank you. On behalf of Ezra and the entire Reliance team, we appreciate your participation in today's business update. We're very enthusiastic about the horizon for Reliance. I'm grateful to you, our valued shareholders and stakeholders, for being with us on this onward journey together. Thank you, and all the very best.

謝謝。我謹代表 Ezra 和整個 Reliance 團隊感謝您參與今天的業務更新。我們對 Reliance 的未來充滿信心。我感謝你們，我們尊貴的股東和利害關係人，與我們一起踏上這段前進的旅程。謝謝您，祝您一切順利。

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。現在您可以斷開電話線，並享受美好的一天。感謝您的參與。