Reliance Global Group (RELI) AI Stock Analysis

• Market Cap: $6.63M
• Dividend Yield: N/A
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 2.40%
• EPS Growth: 94.65%
• Country: US
• Employees: 64
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Brokers
• EPS (TTM): -0.67
• Shares Outstanding: 3,098,876
• 10 Day Avg. Volume: 7,988,792
• 30 Day Avg. Volume: 2,691,599
• PEG Ratio: -0.02
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.00
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $2.50 ▲(16.82%Upside)

Reliance Global Group's score reflects a mix of challenges and opportunities. Key strengths include strategic initiatives and positive technical indicators, but financial instability and negative valuation metrics pose significant risks. Improvement in operational efficiency and financial health is essential for long-term success.

Reliance Global Group Business Overview & Revenue Model

Company Description

Reliance Global Group, Inc. (RELI) is a diversified company engaged in the insurance and real estate sectors. The company primarily focuses on acquiring and managing a portfolio of insurance agencies in the United States, leveraging technology and data-driven strategies to enhance operational efficiencies and customer experience. Additionally, Reliance Global Group holds interests in real estate investments that complement its insurance operations.

How the Company Makes Money

Reliance Global Group generates revenue through its insurance operations by acquiring and managing insurance agencies, which provide a steady stream of commissions and fees from policy sales. The company focuses on optimizing these agencies' performance through technology integration, which enhances customer acquisition and retention, thereby increasing revenue. Additionally, Reliance Global Group benefits from its real estate investments, which provide rental income and potential appreciation in property values. The combination of these revenue streams allows the company to diversify its earnings and mitigate risks associated with market fluctuations in each sector.

Reliance Global Group Financial Statement Overview

Summary

Reliance Global Group is encountering significant financial challenges, demonstrated by volatile revenues, high leverage, and negative cash flows. The company's profitability metrics are weak, with negative EBIT and net profit margins, indicating operational inefficiencies. The balance sheet reflects high debt levels, and cash flows are insufficient for organic growth, necessitating external financing.

Income Statement

Reliance Global Group has shown volatility in its revenues, with fluctuations over recent periods. The TTM shows a slight increase of 1.1% in total revenue compared to the previous annual period. However, profitability metrics are concerning, with negative EBIT and net profit margins due to ongoing losses, despite slight improvements in gross profit. This indicates challenges in managing operational efficiency and cost structures in a competitive industry.

Balance Sheet

The company's financial leverage is high, with a substantial debt-to-equity ratio due to significant borrowings. Stockholders' equity has declined over time, impacting the equity ratio negatively. The return on equity is negative, reflecting ongoing losses. These factors suggest potential financial instability and a high-risk profile, necessitating prudent financial management to improve equity standing.

Cash Flow

Operating cash flows are consistently negative, and the free cash flow has not shown significant improvement. The free cash flow to net income ratio is negative, which highlights the challenges in generating sufficient cash from operations. The company relies heavily on financing activities, which could pose liquidity risks if external financing becomes constrained.

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	3.69M	2.64M	2.50M	4.78M	2.61M	2.06M
EBITDA	-2.35M	-5.70M	-5.76M	-3.94M	-1.31M	-2.30M
Net Income	-5.46M	-9.07M	-12.01M	34.63M	-38.75M	-3.19M
Balance Sheet
Total Assets	17.76M	17.32M	23.02M	38.43M	27.68M	17.92M
Cash, Cash Equivalents and Short-Term Investments	232.63K	372.69K	1.33M	505.41K	4.14M	45.21K
Total Debt	13.62M	13.03M	14.54M	16.37M	9.43M	13.97M
Total Liabilities	16.70M	14.32M	15.87M	29.52M	53.74M	17.81M
Stockholders Equity	1.06M	3.00M	7.15M	8.91M	-26.07M	114.39K
Cash Flow
Free Cash Flow	-2.18M	-2.60M	-1.04M	-3.99M	-2.94M	-468.46K
Operating Cash Flow	-2.11M	-2.52M	-847.97K	-3.19M	-2.25M	-468.46K
Investing Cash Flow	-68.73K	-83.23K	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

• Technical Analysis Sentiment: Positive
• Last Price: 2.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.14 is above the 20-day moving average (MA) of 1.73, above the 50-day MA of 1.37, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RELI.

Reliance Global Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
RELI	65 Neutral	$6.63M	―	-238.61%	―	2.40%	94.65%
EHTH	59 Neutral	$126.77M	―	3.19%	―	17.04%	74.07%
ZBAO	54 Neutral	$32.15M	10.97	48.31%	―	80.80%	―
GOCO	48 Neutral	$65.02M	―	0.80%	―	13.18%	97.01%
HUIZ	47 Neutral	$20.79M	11.44	-3.92%	―	0.48%	-127.19%
TIRX	42 Neutral	$12.51M	―	-12.03%	―	158.74%	14.86%

Reliance Global Group Corporate Events

Reliance Global Group Amends Credit Facility Agreement

On June 24, 2025, Reliance Global Group, Inc. amended its Revolving Credit Facility Agreement with YES Americana Group, LLC, increasing the loan commitment from $600,000 to $2,000,000. This amendment, along with a corresponding Note Amendment, signifies a substantial enhancement in the company’s financial flexibility, potentially impacting its operational capabilities and market positioning.

Reliance Global Group Announces Private Placement Agreement

On June 18, 2025, Reliance Global Group, Inc. announced a securities purchase agreement with an accredited investor for a private placement involving pre-funded warrants and warrants, resulting in approximately $2.5 million in gross proceeds, with potential additional proceeds of $4.25 million if all warrants are exercised. The company plans to use the proceeds for working capital and general corporate purposes, and has entered into a registration rights agreement to facilitate the resale of shares. The private placement, priced at-the-market under Nasdaq rules, aims to strengthen Reliance’s financial position and support its growth strategy in the InsurTech and insurance agency sectors.

Reliance Global Group to Sell Fortman Insurance

On June 17, 2025, Reliance Global Group announced its intention to sell its subsidiary, Fortman Insurance Agency, for $5 million in cash. This strategic move is part of Reliance’s plan to acquire Spetner Associates, a rapidly growing insurance platform, which is expected to enhance the company’s operations and shareholder value. The sale of Fortman, which has been improved and monetized since its acquisition, underscores Reliance’s disciplined capital allocation and commitment to growth.

Reliance Global Withdraws Public Offering Plans

On June 16, 2025, Reliance Global Group, Inc. announced that it filed a request with the Securities and Exchange Commission to withdraw its Registration Statement on Form S-1, indicating that it no longer plans to pursue a public offering at this time. This decision may impact the company’s financial strategies and market positioning, as it shifts focus away from the public offering initially planned.

Reliance Global Group Holds Virtual Annual Meeting

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.