Reliance Global Group, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue growth and increased losses compared to the previous fiscal period. The company’s total revenue for Q3 2024 was $3.4 million, a 5% increase from $3.3 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $10.8 million, up 3% from $10.4 million in the same period last year. This growth was attributed to sustained organic growth in commission income, which also saw a similar increase.
Despite the revenue growth, Reliance Global Group experienced a significant increase in losses. The net loss for Q3 2024 was approximately $837,000, compared to a loss of $139,000 in Q3 2023, marking a 502% increase. For the nine months ended September 30, 2024, the net loss escalated to $7.7 million, up from $3.0 million in the prior year, reflecting a 157% increase. The loss from operations for the nine-month period also rose to $6.7 million, compared to $4.3 million in 2023.
Total operating expenses for Q3 2024 decreased to $3.9 million from $4.7 million in Q3 2023, a reduction of 16%. This decline in expenses contributed to a 64% decrease in loss from operations for the quarter. However, the overall financial performance was impacted by a non-cash asset impairment loss of approximately $3.9 million recognized earlier in the year.
As of September 30, 2024, total current assets decreased to $3.8 million from $4.4 million at the end of 2023, while total assets fell to $17.4 million from $23.0 million. Total stockholders’ equity also saw a significant decline, dropping to $2.8 million from $7.1 million at the end of 2023. Current liabilities increased to $3.4 million, up from $3.2 million.
Strategically, Reliance Global Group has continued its aggressive acquisition strategy, having acquired nine insurance agencies to enhance its market position. A notable recent acquisition includes an agreement to acquire 80% of Spetner Associates for approximately $13.7 million, which will expand its benefits enrollment services. The company has also launched various platforms, including 5MinuteInsure.com and RELI Exchange, aimed at improving its service offerings and operational efficiency.
The company executed a 1-for-17 reverse stock split on July 1, 2024, which adjusted its share count significantly. As of September 30, 2024, Reliance Global Group had 1.7 million shares outstanding, reflecting its ongoing efforts to manage its capital structure effectively.
About Reliance Global Group, Inc.
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