Company Expands Ownership-Driven Investment Model While Maintaining Insurance and InsurTech Operating Foundation

Company to Host Conference Call Today at 4:30 PM Eastern Time

LAKEWOOD, N.J., May 07, 2026 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ:EZRA) ("we," "us," "our," the "Company" or "Reliance") today reported financial results for the three months ended March 31, 2026, and provided an update on the continued execution of its Scale51 strategy through targeted investments in technology and life sciences platforms.

Key Highlights

Advanced Scale51 strategy through targeted investments in technology and life sciences platforms, including continued capital deployment into Enquantum and the formation of LifeSci Global.
Increased ownership in Enquantum to approximately 29% through additional milestone-based funding, advancing a structured pathway toward majority control.
Strengthened balance sheet with approximately $3.2 million in cash and restricted cash and approximately $2.6 million in working capital as of March 31, 2026.
Improved net loss to approximately $1.4 million for the first quarter of 2026, compared with approximately $1.7 million in the prior year period.
Continued optimization of insurance operations through cost discipline and increased utilization of InsurTech platforms, including ongoing development of RELI Exchange and the launch of RELI Exchange 2.0 to enhance scalability, recruiting capacity and operational efficiency.

"During the first quarter, we continued executing a clearly defined strategy centered on disciplined capital allocation and long-term value creation," said Ezra Beyman, Chairman and Chief Executive Officer of Reliance. "We are focused on building a portfolio of businesses where we can take meaningful ownership positions and contribute operationally, rather than acting as a passive investor. This approach aligns capital deployment with execution and outcomes."

"Through our Scale51 model, we are prioritizing opportunities where we believe we can drive both growth and structural value over time, particularly in cybersecurity, data-driven technologies and, more recently, life sciences through LifeSci Global. We are implementing a milestone-based capital deployment strategy, allowing us to scale investments as companies achieve defined operational and commercial progress, while maintaining financial discipline and improving efficiency across the organization."

"Our insurance and InsurTech platforms remain an important operational foundation, providing stability and infrastructure as we expand into adjacent verticals. While revenue comparisons reflect the impact of our 2025 portfolio realignment initiatives, including the divestiture of certain non-core operations, we believe these actions have created a more streamlined and scalable operating base. During the quarter, we continued to optimize our insurance operations, improving efficiency and leveraging our technology platforms to enhance agent productivity and customer acquisition. We believe this dual-platform approach—combining an established operating base with targeted investments in high-growth sectors—positions us to build a more scalable and diversified business over time," concluded Mr. Beyman.

Strategic Update

During the first quarter of 2026, Reliance continued executing its plan to build a diversified platform that combines its established insurance operations with targeted investments in high-growth technology and life sciences sectors.

A key component of this approach is EZRA International Group and the Company's Scale51 operating model, which is designed to identify, invest in and scale innovation-driven businesses through structured pathways toward majority ownership and active operational involvement.

In parallel, the Company continued to operate and integrate its insurance and InsurTech platforms, maintaining a streamlined cost structure while supporting activity across its agency network. These operations, supported by digital platforms such as RELI Exchange and 5minuteinsure.com, continue to serve as a stable foundation for broader strategic initiatives.

During the quarter and subsequent period, the Company made measurable progress across multiple verticals. Reliance expanded its investment in Enquantum, a post-quantum cybersecurity platform focused on next-generation data protection technologies, increasing its ownership to approximately 29% following the achievement of defined technical and commercial milestones, and continues to advance toward potential majority control.

In addition, Reliance launched LifeSci Global Group, the BioTech arm of EZRA International Group focused on healthcare and life sciences investments, led by highly qualified BioTech professionals David Turner and Scott Korman. LifeSci Global marked its initial transaction with the completion of a strategic investment into Innervate Radiopharmaceuticals, a developer of positron emission tomography (PET) imaging and therapeutic radiopharmaceuticals focused initially on neuroblastoma and broader future applications in cardiovascular and neurodegenerative disease. We also continued to evaluate and support additional opportunities within its expanding pipeline.These initiatives broaden Reliance's exposure to innovation-driven sectors, including cybersecurity, data analytics, and life sciences, while reflecting a disciplined, staged approach to capital deployment.

The Company's investment model emphasizes milestone-based capital allocation, enabling it to scale commitments based on operational progress and defined performance criteria. This approach enhances risk management, preserves flexibility in capital allocation, and supports the continued rollout of its Scale51 strategy, with a focus on building a diversified portfolio of scalable platforms over the long term.

Financial Highlights

The following summarizes select consolidated financial results for the three months ended March 31, 2026:

Unrestricted cash increased by approximately $1.0 million, or 73%, to approximately $2.3 million as of March 31, 2026, compared with approximately $1.3 million as of December 31, 2025.
Working capital increased by approximately $0.7 million, or 39%, to approximately $2.6 million as of March 31, 2026, compared with approximately $1.9 million as of December 31, 2025.
Stockholders' equity increased by approximately $1.0 million, or 16%, to approximately $7.4 million, compared with $6.4 million as of December 31, 2025.
Commission income was approximately $3.8 million, compared with approximately $4.2 million for the same period in 2025. The decrease primarily reflects the Company's portfolio realignment initiatives undertaken during 2025, including the divestiture of certain non-core operations, including Fortman Insurance Services (FIS), Employee Benefits Solutions (EBS), and U.S. Benefits Alliance (USBA), which reduced commission revenue from those operations. The decline was partially offset by approximately 11% organic revenue growth from the Company's retained businesses.
Commission expense was approximately $1.6 million, compared with approximately $1.5 million for the same period in 2025. The increase primarily reflects higher commission rates driven by general market conditions, as well as increased commission expense associated with approximately 11% organic revenue growth from the Company's retained businesses.
Salaries and wages were approximately $1.6 million, compared with approximately $2.2 million for the same period in 2025. The decrease was primarily attributable to lower non-cash share-based compensation expense, as well as reduced personnel costs following the divestiture of those certain non-core operations during 2025.
General and administrative expenses were approximately $1.4 million, compared with approximately $1.5 million for the same period in 2025. The decrease primarily reflects continued cost optimization efforts and lower non-cash equity compensation expense.
Net loss improved to $1.4 million, compared with approximately $1.7 million for the same period in 2025. The improvement was primarily attributable to lower operating expenses and reduced interest expense.
Adjusted EBITDA ("AEBITDA"), a non-GAAP financial measure, was approximately $(0.4) million, compared with positive AEBITDA of approximately $0.1 million for the same period in 2025. The decrease was primarily attributable to significantly lower non-cash equity compensation add-backs in 2026 compared to the prior-year period, partially offset by improved operating performance, including lower salaries and wages and reduced general and administrative expenses.

The following summarizes net loss for the three months ended March 31, 2026, from our Strategic Ventures Segment:

Strategic Ventures net loss was approximately $0.4 million, primarily reflecting legal, diligence, advisory, and other costs associated with the launch and development of the Company's EZRA International Group and Scale51 platform, as well as equity method investment losses related to Enquantum.

The following summarizes net income for the three months ended March 31, 2026, from our Insurance Segment:

Insurance Segment net income improved to approximately $0.7 million for the three months ended March 31, 2026, compared with approximately $0.5 million for the same period in 2025. The improvement was driven by lower operating expenses, continued operational efficiencies from the Company's OneFirm initiative, and approximately 11% year-over-year revenue growth from the Company's retained businesses.

Conference Call

Reliance Global Group will host a conference call Thursday May 7, 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 943560. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/53992 or through the investor relations section of the Company's website at https://relianceglobalgroup.com/events-and-presentations/.

A webcast replay will be available on the investor relations section of the Company's website through May 7, 2027. A telephone replay will be available approximately one hour following the call through May 21, 2026, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 53992.

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ:EZRA) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company's business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company's business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail "brick and mortar" insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products.

In addition to its insurance and Insurtech operations, Reliance operates EZRA International Group, its strategic growth platform focused on identifying, acquiring, and building majority or controlling stakes in high-growth technology companies. EZRA International Group is designed to complement Reliance's core insurance business by expanding market reach and supporting long-term shareholder value creation through disciplined capital allocation and active ownership.

Further information about the Company can be found at https://www.relianceglobalgroup.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than statements of historical fact and may be identified by the use of words or expressions such as "may," "should," "could," "would," "will," "expect," "anticipate," "intend," "plan," "believe," "estimate," "continue," "seek," "potential," "target," "project," "forecast," "outlook," or similar expressions, or by discussions of strategy, plans, or intentions.

Forward-looking statements in this press release include, without limitation, statements regarding: the Company's strategic plans, including its Scale51 strategy and the activities of EZRA International Group and LifeSci Global Group; the Company's ability to identify, invest in, integrate, scale, and obtain controlling interests in technology and life sciences businesses, including the timing and likelihood thereof; the Company's investment in Enquantum Ltd., the satisfaction of milestones under the related share purchase agreement, the Company's ability to acquire a majority or controlling interest in Enquantum, and the development, commercialization, and market adoption of Enquantum's post-quantum cybersecurity technologies; the Company's investment in Innervate Radiopharmaceuticals LLC and the development and potential commercialization of Innervate's positron emission tomography imaging and therapeutic radiopharmaceutical product candidates, including for the treatment of neuroblastoma and potential future applications; the future operations and prospects of LifeSci Global Group LLC and any future investments to be made through that platform; the Company's intention and ability to effect a 1-for-40 reverse stock split, the timing of effectiveness, and the Company's ability to regain and maintain compliance with the minimum bid price requirement and other continued listing standards of The Nasdaq Capital Market; the Company's ability to continue executing on its insurance and InsurTech operations, including the development and rollout of RELI Exchange 2.0 and the anticipated benefits of the Company's OneFirm initiative and 2025 portfolio realignment; the Company's expectations regarding revenue growth from retained businesses, cost optimization, operating efficiencies, and trends in non-cash equity-based compensation; the Company's liquidity, working capital, capital allocation priorities, and ability to fund existing and future investment commitments, including remaining tranches under the Enquantum share purchase agreement and additional commitments to LifeSci Global Group LLC; the Company's broader business strategy and growth outlook; and any other statements regarding future events, plans, or expectations.

These forward-looking statements are based on management's current expectations and assumptions and are subject to risks, uncertainties, and other factors, many of which are beyond the Company's control, that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, without limitation: the highly speculative nature of, and substantial risk of loss associated with, investments in early-stage technology and life sciences companies, including Enquantum and Innervate; the development, regulatory, manufacturing, intellectual property, supply chain, reimbursement, and commercialization risks specific to radiopharmaceutical and post-quantum cryptography product candidates; the Company's ability to satisfy the conditions to remaining tranches under the Enquantum share purchase agreement and to acquire a controlling interest on the contemplated timeline or at all; the Company's ability to identify and complete suitable additional investments through Scale51, EZRA International Group, and LifeSci Global Group, and the risk that anticipated strategic, operational, or financial benefits of these initiatives may not be realized within expected timeframes or at all; conflicts of interest associated with the Company's life sciences investment platform, including the ownership of LifeSci Global Group LLC by certain members of the Company's management and board of directors and the role of one of the Company's directors as chief executive officer of Innervate; the Company's ability to maintain compliance with the continued listing standards of The Nasdaq Capital Market, including the minimum bid price requirement, by the applicable compliance deadline of June 10, 2026, and the risk that the reverse stock split may not achieve its intended effect or may need to be supplemented by additional measures; risks related to changes in the composition of the Company's board of directors and committees, including the impact of any change in the independence of the Company's directors on the Company's compliance with Nasdaq listing standards; cross-border legal, regulatory, geopolitical, tax, and currency risks associated with the Company's investment in an Israeli company and any future international investments; risks associated with the Company's digital asset treasury strategy and the volatility, custody, and regulatory treatment of digital assets; the Company's ability to access additional capital on acceptable terms, or at all, including under its existing at-the-market offering program and equity line of credit, both of which are conditioned on continued Nasdaq listing; the Company's ability to maintain and grow revenue from its retained insurance and InsurTech operations following the divestiture of Fortman Insurance Services, Employee Benefits Solutions, and U.S. Benefits Alliance; competition, regulatory developments, and other risks affecting the insurance brokerage and InsurTech industries; risks related to litigation, settlements, and legal proceedings, including the matters described in the Company's filings with the Securities and Exchange Commission; and general business, economic, market, interest rate, and geopolitical conditions.

Actual results may differ materially from those expressed or implied by these forward-looking statements. Additional information regarding factors that may cause actual results to differ materially is included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and in the Company's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission, copies of which are available free of charge through the Securities and Exchange Commission's website at www.sec.gov. The forward-looking statements in this press release speak only as of the date of this press release. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances, or otherwise.

The financial information presented in this press release is preliminary, unaudited, and subject to the completion of the Company's customary review and reporting processes. Such financial information has been prepared by, and is the responsibility of, the Company's management and reflects estimates based on information available to management as of the date of this press release. Although the Company believes the financial information presented in this press release fairly reflects the Company's results of operations and financial condition for the periods presented, this information should not be regarded as a representation by the Company, its management, or its independent registered public accounting firm as to the actual results that will be reflected in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2026, when filed. This information should be read in conjunction with the Company's audited consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as amended. The Company's independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to the financial information presented herein and does not express an opinion or any other form of assurance with respect to such information.

Contact:

Crescendo Communications, LLC

Tel: +1 (212) 671-1020

Email: EZRA@crescendo-ir.com

INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Adjusted EBITDA ("AEBITDA"), our key financial performance metric, is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The most directly comparable GAAP financial measure to AEBITDA is net loss. "AEBITDA" is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below. The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company's operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Among other limitations, AEBITDA does not reflect cash expenditures, future requirements for capital expenditures, or contractual commitments; does not reflect changes in, or cash requirements for, working capital needs; does not reflect interest expense or the cash requirements necessary to service interest or principal payments on the Company's debt; does not reflect tax payments that may represent a reduction in cash available to the Company; and excludes equity-based compensation expense, which has been, and will continue to be for the foreseeable future, a recurring expense in the Company's business. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company's operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained in our Quarterly Report on Form 10-Q under "Results of Operations".

We exclude the following items when calculating AEBITDA, and the following items define our non-GAAP financial measure AEBITDA:

Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company's core operational performance.
Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance.
Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance.
Equity-based compensation: Non-cash compensation provided to employees and service providers, (including period amortization cost of service provider prepaid expenses that were prepaid with stock) excluded to provide more meaningful supplemental information regarding the Company's core cash impacted operational performance.
Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it's excluded to provide more meaningful supplemental information regarding the Company's core operational performance.
Other income (expense), net: Includes certain non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.
Gain (Loss) from Equity Method Investment: Includes certain gains and losses on equity method investments that are non-operating and non-cash, and thus excluded to provide more meaningful supplemental information regarding the Company's core operational performance.
Unrealized gains (losses) on digital assets, net: This account includes unrealized gains and losses from digital assets and is thus excluded as unrelated to core operations of the company.
Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. These costs are excluded because management does not consider them indicative of period-to-period operating performance.
Non-standard costs: This account includes discrete, specifically identifiable non-operational items, related to costs incurred for a legal proceeding the Company has filed against one of the third parties involved in previously discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

The following table provides a reconciliation from consolidated net loss to consolidated AEBITDA for the three months ended March 31, 2026 and March 31, 2025.

	Three Months Ended
	March 31, 2026		March 31, 2025

Net income (loss)	(1,471,167	)	(1,736,882	)
Adjustments:
Interest and related party interest expense	126,386		325,242
Depreciation and amortization	304,443		360,595
Equity based compensation employees directors and third parties	191,358		1,024,985
Transactional costs	339,272		143,187
Non-standard costs			28,280
Loss from Equity Method Investment	26,030		-
Unrealized gains (losses) on digital assets, net	55,943		-
Total adjustments	1,043,432		1,882,289

AEBITDA	(427,735	)	145,407

Reliance Global Group Reports First Quarter 2026 Results and Advances Scale51 Strategy Through Targeted Technology and Life Sciences Investments