Closing of Purchase Agreement in Post Quantum Cybersecurity Company Mark First Step in the Scale51 Technology Expansion Strategy
Company to Host Conference Call Today at 4:30 PM Eastern Time
LAKEWOOD, N.J., March 10, 2026 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: EZRA) ("we," "us," "our," the "Company" or "Reliance") today reported financial results for the year ended December 31, 2025, and provided a strategic update on the Company's Scale51 initiative, including the launch of EZRA International Group and the closing of the purchase agreement with Enquantum Ltd., a post quantum cybersecurity company. Scale51 represents the Company's structured framework for expanding into technology driven sectors through disciplined investments and strategic partnerships, while continuing to operate and develop its established insurance platform.
Key Highlights
-- EZRA International Group launched Scale51, a strategic technology-focused
platform designed to identify and scale high growth companies innovative
across cybersecurity, artificial intelligence, fintech, and digital
health.
-- Completed a first investment in Enquantum Ltd., establishing a pathway
toward majority control of a post-quantum cybersecurity platform
developing next-generation encryption technology.
-- Signed a non-binding Term Sheet to acquire a majority stake in Scentech
Medical, an AI-based diagnostics company, developing non-invasive
breath-based disease detection technology. The contemplated acquisition,
if closed would position the Company in the rapidly evolving field of
AI-driven medical diagnostics.
-- Strengthened the balance sheet through strategic divestitures, including
the sale of Fortman Insurance Services and other non-core assets,
enabling significant debt reduction and improved financial flexibility.
"2025 was a transition year focused on enhancing the balance sheet, streamlining operations, and positioning Reliance to execute its Scale51 technology growth strategy," said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. "We strengthened our insurance and InsurTech operations, generating more than $12 million in commission income, reflecting the strategic divestiture of non-core operations during the year, allowing the Company to focus capital on higher growth opportunities. The increase in salaries and wages was primarily driven by non-cash, share-based compensation, aligning management incentives with long-term shareholder value creation. Overall, we reduced net loss year over year and improved our balance sheet through strategic divestitures and debt reduction."
Mr. Beyman continued, "During the year we launched EZRA International Group and our Scale51 operating model, establishing an operational platform to begin building a portfolio of technology-driven businesses in high-growth sectors. Our investment in Enquantum, which establishes a pathway toward majority control of a post-quantum cybersecurity platform, and our non-binding term sheet we entered into to acquire a majority stake in Scentech Medical, an AI based diagnostics company, represent early examples of the innovative technology companies we intend to help scale. Our insurance and InsurTech operations continue to provide a stable operating foundation while the Company expands into technology sectors through the Scale51 growth strategy."
Strategic Update
During 2025, Reliance advanced its strategy to build a diversified operating platform combining its established insurance and InsurTech operations with technology-driven growth initiatives. A key milestone was the launch of EZRA International Group, a division focused on identifying and scaling innovative technology companies. Supporting this initiative is the Company's Scale51 operating model, designed to work alongside management teams to accelerate commercial growth and expand technologies into global markets.
As part of this strategy, Reliance completed an investment in Enquantum Ltd., a cybersecurity company developing post-quantum encryption technologies designed to protect digital infrastructure from emerging threats associated with advances in quantum computing. The transaction establishes a pathway for Reliance to obtain majority control of the Enquantum platform as the business continues to scale.
The Company has also entered into an non-binding term sheet to acquire a majority stake in Scentech Medical, an AI-based diagnostics company developing non-invasive breath-analysis product candidate to detect disease-associated molecular signatures.
Reflecting its evolving strategic direction, the Company transitioned its Nasdaq ticker symbol from RELI to EZRA during the year.
Reliance's insurance and InsurTech operations continue to provide a stable operating foundation, generating more than $12 million in commission income during 2025. Management remains focused on enhancing operational efficiency within its insurance and InsurTech operations while pursuing targeted technology investments through EZRA International Group.
During 2025, Reliance also simplified its operating structure and strengthened its balance sheet through several strategic actions. The Company completed the sale of Fortman Insurance Services and divested its remaining Employee Benefits Solutions and U.S. Benefits Alliance businesses, generating capital used to reduce long-term debt and improve financial flexibility.
Management intends to continue identifying opportunities to expand its technology platform through EZRA International Group while maintaining disciplined capital allocation.
2025 Financial Highlights
The following summarizes select financial results for the year ended December 31, 2025:
-- Strategic transition and portfolio realignment: During 2025, the Company
executed a portfolio realignment through the sale of Fortman Insurance
Services, Employee Benefits Solutions, and U.S. Benefits Alliance.
Proceeds from these transactions were used to reduce debt, strengthen the
balance sheet, and simplify operations as Reliance repositioned the
business to advance its Scale51 technology growth strategy. The Company's
insurance brokerage and InsurTech platforms continue to provide a stable
operating foundation supporting this expansion.
-- Unrestricted cash increased by approximately $0.9 million, or 250%, to
approximately $1.3 million as of December 31, 2025, compared with
approximately $0.4 million as of December 31, 2024.
-- Working capital improved by approximately $1.5 million, or 351%, to
approximately $1.9 million as of December 31, 2025, and stockholders'
equity increased by approximately $3.4 million, or 114%, to approximately
$6.4 million, compared with December 31, 2024.
-- Commission income was $12.4 million for the year ended December 31, 2025,
compared with $14.1 million for the year ended December 31, 2024,
representing a decrease of $1.6 million, or 12%. The decrease was
primarily attributable to the Company's portfolio realignment during
2025, including the divestiture of the Fortman Insurance Services,
Employee Benefits Solutions, and U.S. Benefits Alliance businesses.
-- Commission expense was $4.6 million in 2025, compared with $4.2 million
in 2024, representing an increase of $0.4 million, or 10%. The increase
primarily reflects higher commissions associated with increased sales
activity in certain of the Company's operations, as well as general
market-driven increases in commission rates across the insurance sector.
-- Salaries and wages totaled $10.3 million in 2025, compared with $7.2
million in 2024, representing an increase of $3.1 million, or 43%. The
increase was primarily attributable to non-cash share-based compensation,
partially offset by the elimination of salaries associated with Fortman
Insurance Services following its divestiture.
-- General and administrative expenses were $4.9 million in 2025, compared
with $4.2 million in 2024, representing an increase of $0.7 million, or
16%. The increase was primarily driven by non-cash equity awards to
directors and service providers, partially offset by operational
efficiencies associated with the Company's OneFirm initiative.
-- Net loss improved to $7.0 million in 2025, compared with $9.1 million in
2024, representing an improvement of $2.1 million. The improvement was
primarily attributable to the gain recognized on the sale of certain
businesses during the year, as well as the absence of asset impairment
charges recorded in the prior year.
-- Adjusted EBITDA ("AEBITDA"), a non-GAAP financial measure, was ($1.6
million) in 2025, compared with ($0.3 million) in 2024. The change was
primarily driven by lower revenue following the Company's portfolio
realignment transactions during 2025, as well as higher operating costs
and higher commission expense associated with increased sales activity
within certain of the Company's remaining operations.
Conference Call
Reliance Global Group will host a conference call Tuesday, March 10, 2026, at 4:30 PM Eastern Time to discuss financial results and provide a business update.
The conference call will be available via telephone by dialing +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 121907. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/53733 or through the investor relations section of the Company's website at https://relianceglobalgroup.com/events-and-presentations/.
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