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Oxbridge Re Holdings Ltd (OXBR) reported its financial results for the third quarter of 2025, revealing a significant increase in total revenue, which reached $645,000, compared to $205,000 in the same period last year. The company achieved a net income of $187,000, translating to earnings per share (EPS) of $0.02. However, the company’s stock price fell by 7.64% in after-hours trading, closing at $1.30, as investors reacted to the earnings report.
Key Takeaways
- Oxbridge Re’s Q3 2025 total revenue increased significantly year-over-year.
- The company posted a net income of $187,000, or $0.02 per share.
- Stock price dropped by 7.64% in after-hours trading.
- New product launch: AssurancePlus, a Web3 real-world asset subsidiary.
- The company is considering regular dividend payouts for CAC-RE tokens.
Company Performance
Oxbridge Re’s performance in Q3 2025 showed a remarkable improvement in revenue, primarily driven by its innovative product offerings and strategic market positioning. The company has been focusing on blockchain-enabled transparency and data-driven underwriting, setting it apart in the reinsurance industry. Despite the positive financial performance, the stock’s decline suggests investor concerns, possibly due to broader market conditions or specific company challenges.
Financial Highlights
- Revenue: $645,000, up from $205,000 in Q3 2024.
- Net Premiums Earned: $555,000, down from $595,000 in Q3 2024.
- Earnings per share: $0.02.
- Net Loss for 9 Months 2025: $2.19 million, or $0.30 per share.
Outlook & Guidance
Oxbridge Re is poised to continue its expansion in the Web3 and real-world asset sectors, with plans to maintain its focus on long-term shareholder value. Future guidance suggests a mixed outlook, with some quarters projected to see negative EPS, while others are expected to achieve positive earnings. The company is also exploring the possibility of regular dividends for its CAC-RE tokens, which could attract more investors.
Executive Commentary
CEO Jay Madhu emphasized the company’s pioneering efforts in the reinsurance sector, stating, "We are the first publicly traded company to issue tokenized reinsurance securities." He also highlighted the company’s commitment to transparency and alignment, saying, "Our structure is built for transparency and alignment."
Risks and Challenges
- Market volatility could affect stock performance and investor sentiment.
- The company’s reliance on innovative products may pose execution risks.
- Macroeconomic factors and regulatory changes in the Web3 space could impact operations.
- Competition in the reinsurance market remains intense, requiring constant innovation.
Oxbridge Re’s Q3 2025 performance reflects its strategic advancements in the reinsurance industry, particularly through its innovative use of blockchain technology. However, the stock’s post-earnings decline indicates that investors remain cautious, underscoring the importance of continued execution on its strategic initiatives and market expansion plans.
Full transcript - Oxbridge Re Holdings Ltd (OXBR) Q3 2025:
Rochelle, Conference Operator: Afternoon. Welcome to Oxbridge’s third quarter 2025 earnings call. My name is Rochelle, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. Joining us for today’s presentation is Oxbridge Chairman, President, and Chief Executive Officer Jay Madhu, and Chief Financial Officer and Corporate Secretary Rendon Timothy. Following their remarks, we will open up the call for your questions. I would now like to remind everyone that this call will be available via telephone replay until November 20th, 2025. Details for telephone replay are included in the press release issued today. Now, I would like to turn the call over to Rendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Please go ahead.
Rendon Timothy, Chief Financial Officer and Corporate Secretary, Oxbridge: Thank you, Operator. During today’s call, there will be forward-looking statements made regarding future events, including Oxbridge’s future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects, and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that can cause actual results and events that differ materially from such forward-looking statements is included in the section entitled Risk Factors, contained in a Form 10-K filed on March 26th, 2025, with the Securities and Exchange Commission.
The occurrence of any of these risks and uncertainties could have a material adverse effect on the company’s business, financial condition, and the volatility of earnings, which could, in turn, cause significant market price and trading volume fluctuations for our securities. Any forward-looking statements made on this conference call speak only as of the date of this conference call. Except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company’s expectations or any related events, conditions, or circumstances change. Now, I would like to turn the call over to Chairman, President, and Chief Executive Officer Jay Madhu. Jay?
Jay Madhu, Chairman, President, and Chief Executive Officer, Oxbridge: Thank you, Rendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on-chain and broadening investor access. While we remain solidly rooted in our core reinsurance business, underwriting fully collateralized policies that cover property losses from specific catastrophes, we continue to compete effectively with large carriers by focusing on selective, data-driven underwriting. Our objective is to achieve long-term growth and book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk. We specialize in low-frequency, high-severity risks where sufficient data exists to analyze a risk-return profile with discipline. We are intentional about risk selection, pricing, and structure, and we maintain full collateralization to protect counterparties and ensure transparency.
Building on this foundation, in 2022, we started AssurancePlus, our Web3 real-world asset, or RWA, subsidiary dedicated to bringing reinsurance on-chain. AssurancePlus specializes in democratizing tokenized real-world assets, or RWAs, offering tokenized reinsurance securities as alternative investment opportunities. These securities leverage blockchain technology to support transparency and regulatory compliance, representing a meaningful advantage in the digital securities market. This initiative is designed to broaden investor participation, intending opportunities beyond what traditionally has been a select group of ultra-high-net-worth investors. We believe we are the first publicly traded company to issue tokenized reinsurance securities. We are advancing this focus and momentum. Our blend of disciplined underwriting and modern, compliant technology is positioning Oxbridge for the opportunities ahead. Looking ahead, we remain focused on expanding Oxbridge’s presence in the RWA and Web3 sector.
In summary, we maintain a strong sense of optimism regarding the long-term outlook of our core reinsurance business alongside the successful integration of AssurancePlus as we embrace the RWA market more comprehensively. I will turn things over now to Rendon to take us through our financial results. Rendon?
Rendon Timothy, Chief Financial Officer and Corporate Secretary, Oxbridge: Thank you, Jay. I’d like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums earned for the quarter ended September 30, 2025, decreased to $555,000 from $595,000 for the quarter ended September 30, 2024. The decrease is due to lower-weighted average rate on reinsurance contracts in force during the quarter ended September 30, 2025, when compared with the prior period. Net premiums earned for the nine-month period ended September 30, 2025, increased to $1.73 million from $1.71 million for the nine-month period ended September 30, 2024. The increase is due to higher-weighted average rate on reinsurance contracts in force during the nine-month period ended September 30, 2025, when compared to the prior period. Our net investment income and other income for the three months ended September 30, 2025, increased to $79,000 from $62,000 from prior to the quarter.
There was an increase in the fair value of equity securities during this period of $11,000. Along with net premiums, our total revenue amounted to $645,000 for the three-month period ended September 30, 2025, compared to $205,000 in the prior year’s third quarter. Our net investment and other income for the nine months ended September 30, 2025, increased to $251,000 from $188,000 from the prior period. Along with net premiums and along with the change in the fair value of equity securities and other investments, resulted in total revenues of $2 million for the nine-month period ended September 30, 2025, compared to $124,000 in the prior year. For the three months ended September 30, 2025, total expenses, including policy acquisition costs and general admin expenses, increased to $815,000 from $490,000 for the quarter ended September 30, 2024.
The increase is primarily due to increased professional costs related to investor relations, our Web3 subsidiary tokenization costs, S-3-related costs, increased human resource and personnel costs, and legal expenditures when compared with prior comparable period. For the nine months ended September 30, 2025, total expenses, including policy acquisition costs, loss and loss adjustment expenses, and general admin expenses, increased to $4.99 million from $1.67 million for the nine months ended September 30, 2024. The increase is primarily due to the recording of full-limit loss on one of our reinsurance contracts during the quarter ended June 30, 2025, along with increased professional costs, increased human resource and personnel costs, and legal expenditures.
Net income for the quarter ended September 30th, 2025, was $187,000 or $0.02 per basic and diluted loss per share, compared to a net loss of $540,000 or $0.09 basic and diluted loss per share for the quarter ended September 30th, 2024. The decrease in net loss is primarily due to a decrease in the unrealized loss on other investments during the quarter ended September 30th, 2025, when compared with the prior period. Net loss for the nine months ended September 30th, 2025, was $2.19 million or $0.30 basic and diluted loss per share, compared to a net loss of $2.27 million or $0.37 basic and diluted loss per share for the nine months ended September 30th, 2024.
Again, the decrease in net loss is primarily due to the decrease in unrealized loss on other investments during the nine-month period ended September 30, 2025, when compared with the prior period. As we have discussed before on investor calls, we use various measures to analyze the growth and profitability of our business operations. For our reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio, and combined ratio. Our loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses incurred to net premiums earned. The loss ratio is the ratio of loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the three-month period ended September 30, 2025, when compared with the prior comparative period.
The loss ratio, however, increased to 132.4% for the nine-month period ended September 30, 2025, when compared with the prior comparative period. This was due, again, to the full-limit loss on one of our reinsurance contracts affected by Hurricane Milton. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs to net premiums earned. The acquisition cost ratio remained consistent at 11% for the quarter and nine-month period ended September 30, 2025, when compared with the prior comparative period. Our expense ratio, which measures operating performance, compares policy acquisition costs and general and admin expenses with net premiums earned. For the quarter ended September 30, 2025, the expense ratio increased to 146.8% from 83.7% for the three-month period ended September 30, 2024. For the nine-month period ended September 30, 2025, the expense ratio increased to 156.2% from 98% for the nine-month period ended September 30, 2024.
The increase is primarily due to the increased professional costs related to investor relations of our Web3 subsidiary marketing and operations, renewed S-3-related costs, increased human resource, personnel, and legal expenditures during the quarter ended September 30, 2025, when compared with prior comparable periods. Now, to the balance sheet. Our investment portfolio increased to $115,000 at September 30, 2025, from $113,000 at the prior year-end, primarily due to an increase in fair value of the equity securities during the nine-month period ended September 30, 2025. Cash and cash equivalents and restricted cash and cash equivalents increased by $1.28 million to $7.18 million from $5.9 million at December 31, 2024. The increase is the net result of premium deposits during the nine-month period ended September 30, 2025, registered direct offering that generated $2.7 million net of expenses, and payment of Hurricane Milton losses and general and admin expenses.
Now, I’d like to turn the call back over to Jay to wrap up before we take your questions. Jay?
Jay Madhu, Chairman, President, and Chief Executive Officer, Oxbridge: Thank you, Rendon. We are encouraged by the compelling performance of our 2025-2026 tokenized reinsurance contracts. The balance sheet token, EDA CAC-RE, is on pace to achieve approximately 25%, exceeding its 20% target, while the high-yield token, ZETA CAC-RE, remains on track to achieve its 42% return target. These results reflect disciplined underwriting and show how our tokenized platform is delivering attractive, high-quality, uncorrelated returns within the $750 billion TAM for reinsurance. Equally important, our structure is built for transparency and alignment. We write fully collateralized one-on-one contracts and do not use leverage. Our risk selection focuses on low-frequency, high-severity perils where the data support rigorous analysis for expected loss and tail risk. Tokenization provides compliant digital access and enables clearer, more frequent reporting for investors. Looking ahead, we are evaluating a move towards regular dividend payouts for our security-backed CAC-RE tokens, moving away from a purely annual payout model.
This new approach aligns with current Web3 market demand and investor preference. Consistent presence at marquee industry events continues to expand our partner platform and investor pipeline and elevate awareness across traditional finance and Web3. Since the prior quarter updates, we have participated in Token 2049 in Singapore, Rare Evo, which is in Las Vegas, and Spectrum Cayman in Grand Cayman. Operationally, we are focused on three priorities: one, maintaining underwriting quality and diversification across seedings and perils; two, scaling compliant distribution channels that support broadened investor participation; and three, advancing product enhancements such as regular dividends that improve accessibility without compromising risk controls. Taken together, these efforts position Oxbridge and AssurancePlus to deepen our roles in bringing reinsurance returns on-chain. With continued discipline, strategic relationships, and technology-driven product innovation, we remain focused on building long-term shareholder value and expanding investor access to this unique uncorrelated asset class.
With that, we are open to calls or questions.
Rochelle, Conference Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the Star keys. We will pause for just a moment. Just a reminder, it is Star 1 if you would like to ask your question. It appears there are no questions. I will turn the call back over to the speakers for any additional or closing remarks.
Jay Madhu, Chairman, President, and Chief Executive Officer, Oxbridge: Thank you for joining us on today’s call. Before we conclude, I would like to extend my gratitude to our employees, business partners, and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team, whose extensive expertise has been instrumental in navigating and advancing our business amidst these challenging circumstances. We anticipate providing you with further updates on our progress during our next call. Should you have any additional questions, please do not hesitate to reach out to us anytime. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?
Rochelle, Conference Operator: Thank you. That will conclude today’s call. We thank you for your participation. You may now disconnect.
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