Fundamental Global, formerly FG Financial Group, Inc., reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which operates in reinsurance, asset management, and managed services, experienced a substantial increase in revenue, driven primarily by its merger with FG Group Holdings, Inc. on February 29, 2024.

For the three months ended September 30, 2024, total revenue reached $10.5 million, a remarkable increase of 155.8% compared to $4.1 million in the same period of 2023. This growth was largely attributed to $4.3 million in reinsurance premium revenue and a $2.2 million increase from Strong Technical Services (STS), which benefited from heightened demand for installation services following the acquisition of Innovative Cinema Solutions, LLC. For the nine months ended September 30, 2024, total revenue was $23.6 million, up 123.4% from $10.6 million in the prior year.

Despite the revenue growth, the company reported a net loss from continuing operations of $5.2 million for Q3 2024, compared to a loss of $3.9 million in Q3 2023. For the nine-month period, the net loss was $16.2 million, an increase from $14.9 million in the same period of 2023. The rise in losses was attributed to increased operational costs associated with the merger, which added approximately $11 million in reinsurance and general administrative expenses.

Total expenses for the three months ended September 30, 2024, were $15.5 million, up from $8.1 million in the previous year, reflecting a 91.1% increase. For the nine months, expenses rose to $41.3 million from $25.5 million, marking a 61.7% increase. The company’s loss from operations for the nine months was $17.7 million, compared to $15 million in the same period of 2023.

As of September 30, 2024, total assets surged to $116.0 million, up from $62.1 million at the end of 2023, primarily due to the merger and the acquisition of Strong Global Entertainment, which became a wholly-owned subsidiary. The company also reported a significant increase in equity securities and other holdings, totaling approximately $68.1 million.

In terms of strategic developments, the company completed the acquisition of Strong Global Entertainment on September 25, 2024, and executed a reverse stock split effective October 31, 2024. The merger and acquisition activities are expected to enhance the company’s market position and operational capabilities, although they have also contributed to increased operational complexity and costs.

Overall, while Fundamental Global has shown strong revenue growth, it continues to face challenges in managing expenses and achieving profitability in the wake of its recent strategic expansions.