Earnings call transcript: Oxbridge Re’s Q2 2025 shows major earnings miss

Oxbridge Re Holdings Ltd (OXBR) reported a significant earnings miss for Q2 2025, with an actual EPS of -$0.25, falling short of the $0.02 forecast. The earnings surprise was a negative 1,350%, and revenue also disappointed, coming in at $664,000 against an expectation of $1.1 million. Following the announcement, Oxbridge Re’s stock price fell by 2.31% in regular trading hours but saw a 6.94% increase in the aftermarket, closing at $1.85. According to InvestingPro data, the company’s market capitalization stands at $12.7 million, with the stock currently trading below its Fair Value.

Key Takeaways

• Oxbridge Re reported a net loss of $1.87 million in Q2 2025.
• The company launched new Web3 initiatives and tokenized reinsurance securities.
• Stock price experienced volatility, dropping in regular hours but rising in aftermarket trading.
• Hurricane Milton significantly impacted financial results.

Company Performance

Oxbridge Re’s Q2 2025 performance was marked by a net loss of $1.87 million, primarily due to the adverse effects of Hurricane Milton. Despite this setback, the company reported an increase in net premiums earned, rising to $582,000 from $554,000 in the same quarter last year. Total revenues surged to $664,000 from $44,000 year-over-year, reflecting growth in its business operations. InvestingPro analysis shows impressive revenue growth of 117.66% over the last twelve months, though the company’s overall financial health score remains weak at 1.23 out of 5.

Financial Highlights

• Revenue: $664,000, a substantial increase from $44,000 in Q2 2024.
• Earnings per share: -$0.25, compared to a forecasted $0.02.
• Cash and cash equivalents rose by 12.9% to $6.7 million.

Earnings vs. Forecast

Oxbridge Re’s actual EPS of -$0.25 missed the forecast of $0.02 by a wide margin, resulting in a negative surprise of 1,350%. The revenue of $664,000 also fell short of the expected $1.1 million, marking a 39.64% revenue surprise. This significant miss underscores the challenges faced by the company during the quarter.

Market Reaction

The stock price of Oxbridge Re declined by 2.31% during regular trading hours but rebounded in the aftermarket, rising by 6.94% to $1.85. This volatility reflects mixed investor sentiment, possibly influenced by the company’s new strategic initiatives and the broader market’s reaction to the earnings miss. InvestingPro data reveals a beta of 1.63, indicating higher volatility than the broader market, with the stock down 67% over the past six months. Unlock comprehensive volatility analysis and real-time trading signals with InvestingPro’s advanced tools.

Outlook & Guidance

Looking forward, Oxbridge Re is focusing on blockchain-enabled real-world asset (RWA) innovation and aims to democratize reinsurance investing. The company has scheduled an extraordinary general meeting to accelerate its strategic initiatives. The EPS forecasts for upcoming quarters remain modest, with expectations of slight losses in the near term.

Executive Commentary

CEO Jay Madhu emphasized the company’s innovative strides, stating, "We are proving that innovation and compliance can go hand in hand." He also highlighted the unique positioning of Oxbridge Re in sectors uncorrelated to broader capital markets, reinforcing the company’s strategic focus on compliance, transparency, and positioning.

Risks and Challenges

• Natural disasters like Hurricane Milton pose significant financial risks.
• The company’s investment in Web3 and RWA technologies involves high initial costs.
• Increased personnel and marketing expenses could pressure margins.
• The broader economic environment and regulatory changes in the reinsurance sector could impact future performance.

Q&A

During the earnings call, analysts inquired about the company’s strategic positioning and conference takeaways. CEO Jay Madhu discussed the importance of compliance, transparency, and yield as key investor focuses. The upcoming AGM and strategic initiatives were also topics of interest, reflecting the company’s forward-looking plans.

Full transcript - Oxbridge Re Holdings Ltd (OXBR) Q2 2025:

Denae, Conference Operator: Good afternoon, and welcome to Oxbridge Re’s Second Quarter twenty twenty five Earnings Call. My name is Denae, 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 Re’s Chairman, Presidents, 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 like to remind everyone that this call will be available via telephone replay up until 08/28/2025. Details for the 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 Re, who will provide the necessary cautions regarding the forward looking statements that will be made by management during this call. Over to you, sir.

Rendon Timothy, Chief Financial Officer and Corporate Secretary, Oxbridge Re: Thank you, operator. During today’s call, there will be forward looking statements made regarding future events, including us with Reed’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 could cause actual results and events to differ materially from such forward looking statements are included in the section entitled Risk Factors contained in our Form 10 ks filed on 03/26/2025, 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 our earnings, which in turn could cause significant market price and trading volume fluctuation for our securities. Any forward looking statements made on this conference call speak only as of the date of this conference call. And 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 our Chairman, President and Chief Executive Officer, Jay Mathieu.

Jay?

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: Thank you, Brendan, and welcome, everyone. Thank you for joining us today. Let me start by saying we’re proud of the significant steps we have taken to fortify and diversify our business. While we are solidly entrenched in the RWA Web3 space, where we issue tokenized reinsurance securities and an RWA for real world assets, our core business remains reinsurance, where we write fully collateralized policies to cover property loss from specific catastrophes. And because we write fully collateralized contracts, we believe we can compete effectively with large carriers.

We specialize in underwriting low frequency, high severity risks, where we believe sufficient data exists to effectively analyze the risk return profile of reinsurance contracts. Our objective is to achieve long term growth in book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk. Building the stable reinsurance foundation, we have begun to diversify our business in 2022. We expanded our business portfolio by establishing SureSplants Inc, a new subsidiary focused on RWA Web three technology. AssurancePlus specializes in democratizing tokenized real world assets or RWAs, offering tokenized reinsurance securities as alternative investment opportunities.

These securities leverage blockchain technology to ensure complete transparency and compliance with SEC guidelines, representing a significant advancement in the digital security market. This initiative aims to broaden investor participation, extending our opportunities beyond what traditionally has been a select group of ultra high net worth individuals. We are enthusiastic about the prospects of these two new investments and remain committed to keep our stakeholders informed of our progress in the forthcoming quarters. Looking ahead, we intend to position Oxbridge as a prominent player in the real world asset or 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’ll now turn things over to Brendan and take us through our financial results. Brendan?

Rendon Timothy, Chief Financial Officer and Corporate Secretary, Oxbridge Re: Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. With respect to net premiums earned, net premiums earned for the quarter ended 06/30/2025 increased to $582,000 from $554,000 for the quarter ended 06/30/2024, Net premiums earned for six months ended June 2025 increased to 1,180,000.00 from 1,100,000.0 for the six months ended 06/30/2024. The increases are due to higher rates on contracts that we enforced in the three and six month period ended 06/30/2025 when compared to the contract enforced in the prior year period. Our net investment income and other income for the three months ended June 3025 increased to $93,000 from $56,000 from prior year second quarter.

These factors combined resulted in total revenues of $664,000 for the three months ended 06/30/2025, compared to $44,000 in the prior year second quarter. Our net investment and other income for the six months ended 06/30/2025, increased to $173,000 from $126,000 from prior year period. These factors taken together resulted in total revenues of $1,360,000 for the six months ended 06/30/2025, compared to negative $81,000 in the prior year comparable period. For the quarter ended 06/30/2025, total expenses, comprised of loss and loss adjustment expenses, policy acquisition costs and general and admin expenses increased $3,610,000 from $628,000 for the quarter ended June 2024. For the six months ended June 2025, total expenses increased to 4,180,000.00 from 1,180,000.00 for the six months ended 06/30/2024.

These increases are primarily due to the adverse development and loss recognition from Hurricane Milton on one of our insurance contracts, coupled with increased human resources, personnel costs, professional marketing and higher costs, our Web three subsidiary token addition costs, renewed SG related costs and legal expenditures when compared with prior year period. Our net loss for the quarter ended 06/30/2025, was $1,870,000 or $0.25 per basic and diluted loss per share compared to a net loss of 821,000 or $0.14 basic and diluted loss per share for the quarter ended 06/30/2024. Net loss for the six months ended 06/30/2025, was 2,010,000.00 or 28¢ basic and diluted loss per share compared to a net loss of 1,730,000.00 or $0.29 per basic and diluted loss per share for the six months ended 06/30/2024. The increases, again, are primarily due to the adverse development and loss recognition from Hurricane Milton and one of our reinsurance contracts during the three and six month period ended 06/30/2025 when compared with prior periods. As we have discussed before in our 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 loss and loss adjustment expenses incurred to net premiums earned. The loss ratio increased to three ninety four percent and one hundred ninety four point eight percent for the quarter and six month period ended 06/30/2025, respectively, when compared with the prior comparative period. This was due to the full limit loss of approximately $2,300,000 on one of our reinsurance contracts affected by Hurricane Milton. Net impact of Hurricane Milton’s loss on the company’s equity, however, after accounting for the portion of losses borne by external to shareholders was approximately $1,200,000 Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition cost to net written earned.

The acquisition cost ratio remained consistent at approximately 11% for the quarter ended six months ended 06/30/2025, when compared with the quarter and six month period ended 06/30/2024. Our expense ratio, which measures operating performance, compares policy acquisition costs and general and other expenses with net premiums earned. For the quarter ended 06/30/2025, the expense ratio increased to 227% from 111.3% from the quarter ended 06/30/2024. For the six month period ended 06/30/2025, the expense ratio increased to 160.7% from 105.7% for the six month period ended 06/30/2024. The increases are primarily due to increased professional costs relating to investor relations and our work through subsidiary markets and operations, renewed history related costs, increased human resources and personnel costs and legal expenditures during the quarter and six month period ended 06/30/2025 when compared with the prior comparable period.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio increased to 621% from 111.3% for the quarter ended 06/30/2024. For the six month period ended 06/30/2025, the combined ratio increased to 355.5% from 105.7% for the six month period ended 06/30/2024. The increase, again, is primarily due to losses incurred from Hurricane Milton and increased general and admin expenses during the three and six month period ended 06/30/2025 when compared with the prior comparable period. Now turning to the balance sheet.

Our investment portfolio decreased to $1.00 4,000 at 06/30/2025 from $115,000 at prior year end, primarily due to decrease in fair value of equity securities during the six month period ended 06/30/2025. Cash and cash equivalents and restricted cash and cash equivalents increased by 750,000 or 12.9% to 6,700,000.0 from 5,900,000.0 as of December 2024. The increase is a net result of premium deposits made during the six months ended 06/30/2025, the registered direct offering that generated 2,700,000.0 net of expenses and payment of hurricane million losses on general admin expenses during the period. I’ll now turn the call back over to Jay to wrap up before we take any questions. Jay?

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: Pardon me, guys.

Denae, Conference Operator: Thank

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: you, Brendan. This quarter marks a pivotal moment for Oxbridge Insurance Plus. We’ve not only expanded our footprint in the rapidly growing tokenized reinsurance market, but also forged strategic partnerships that position us for accelerated growth. As the first NASDAQ listed company to tokenize to issue a tokenized reinsurance security, we are proving that innovation and compliance can go hand in hand, creating new opportunities for investors and setting a high standard for the industry. To further accelerate our strategy and strengthen our leadership position, we have scheduled an extraordinary general meeting to approve measures that will accelerate our strategy and strengthen our leadership.

These initiatives combined with our ongoing focus on transparency position us to capture significant opportunity in the quarters ahead. Bringing building on our memorandum of understanding with Tulum last quarter, a leading real world asset platform with an institution of great tokenization infrastructure and a track record in scaling compliant blockchain solutions, have now entered into a strategic partnership with Midnight Foundation, which is an input output growth company, the same founders of Cardano. The Midnight Foundation supports ecosystem growth and enterprise adoption of the Midnight Network, a private focused blockchain developed by Sheila Technologies, a subsidiary of Input Output Global, the team behind Cardano again. Today, these alliances expand AssurancePlus’ reach, strengthen distribution capabilities and position our platform at the forefront of blockchain enabled RWA innovation. We have advanced our twenty twenty five and twenty twenty six tokenized reinsurance offerings, which provide some diversity of investment opportunities within the $760,000,000,000 reinsurance market TAM.

Our sector uncorrelated to broader capital markets. Our balance sheet product targets a 20% annual return and our high yield product targets a 42% annual return, assuming no underlying losses. By delivering compliant blockchain power pathways into this traditionally elusive asset class, we are broadening investor participation and reinforcing our mission to democratize reinsurance investing. This year, we have been an active participant and sponsor at leading blockchain and RWA events globally, including iConnect in Miami, ETH in Denver 2025 and RWA Day in Denver, Apex Invest 2025 in The Cayman Islands, Token 2,049 in Dubai, Money 2020 in Europe and Amsterdam, Permissionless Four and YieldDay NYC in New York and ETHCC in Cannes, and Rare Evo recently in 2025 again in Las Vegas. These forms provide an opportunity to showcase AssurancePlus, strengthen industry leaderships, sign new partnerships and explore collaborative opportunities with leading blockchain platforms.

Our achievement in the quarter reflects a disciplined approach to execution and clear vision of the future. With a strong balance sheet, innovative products and an expanding network of strategic relationships, Oxbridge is well positioned to drive sustainable growth, create long term shareholder value and lead the tokenized reinsurance market into its next phase of evolution. With that, we are ready to open the call for questions. Operator, please provide the appropriate instructions.

Denae, Conference Operator: Thank you, The first question that we have comes from Allen Klee of Maxim Group. Please go ahead.

Allen Klee, Analyst, Maxim Group: Excuse me. Hi. Congrats on growing your premium. Was interested in You’ve You’ve been very active on the conference front. And I was just wondering of what takeaways you have to share with us from what you’ve gotten from all those attendants?

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: Yeah. So first off, Alan, thanks for getting on the call and listening. Conferences, in my opinion, are very important, right, because you have various different people in the ecosystem that can congregate in various different places, and being front and center at these events is very important. We not only glean important information about our ecosystem, but we’re also able to talk to folks about how they could how we all can add value by collaborating together. So, some of the things that we have learned from all these conferences is what investors are very, very importantly want to know is compliance and transparency.

So, it’s great to show yield. Everybody wants to see yield, but they also want to know what kind of compliance and transparency are part of our tokenized product. You know, are we writing, you know, how do we do it, what kind of leverage are we putting on our product, what kind of opportunity there is. And they’re stunned when we tell them there’s no leverage on our product. We write one to one, and there’s total transparency compliance.

So AssurancePlus has PCOB audited financials as does Oxbridge, everything flows up. But AssurancePlus has segregated PCOB audited financials, which is I think key in making sure that full compliance aspect works. So, we’re making some great strides. We’re making some great opportunity over here. We’ve opened a few different doors, some of which we have already put out and some of which we are still working to, which I think would be extremely interesting as we go forward.

So, all in all, very important to go on the trail, but more importantly, it’s important to get the right mix of folks involved.

Allen Klee, Analyst, Maxim Group: That’s great. You talked about an upcoming AGM meeting and some proposals. Could you elaborate on that, please?

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: Yes. We, it’s no it’s nothing new that we’re always very transparent and open. We put out information in the past that we are looking to get in the blockchain space, RWA space in a bigger way. So part of this is not only planning for the future, making sure that we have the right partners and so on involved in this, But it’s also important when the timing is right, and let me emphasize, when the timing is right and we need to do something, we need to make sure that all the bits and pieces are in place. So, the EGM that we have over here is making sure that as opposed to hoping that things will go right once we kind of get into that spot, we’re putting all the building blocks in place.

That way, when timing is right, we can move in the right direction. So very interesting space. The current administration has talked widely, widely about not only the blockchain and crypto space, but they’ve also recently in the last two days have talked highly about the RWA space. We’re slap bang in that. Just to put some perspective to this, the reinsurance space is the TAM of the reinsurance space is $700,000,000,000 And to just kind of put a point to it, the put a point to it, dollars 150 is a stablecoin TAM, right?

So, stablecoins, which everybody talks about, the TAM on stablecoins is $150,000,000,000 but reinsurance is a $750,000,000,000 market. So, compliance, transparency, positioning the company in the right direction, making the right partners, growing the right partnerships and getting it into the right direction is where we’re currently working towards.

Allen Klee, Analyst, Maxim Group: That’s great. Thank you so much.

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: Thank you, Al.

Denae, Conference Operator: Thank you. At this time, this concludes our question and answer session. I’d now like to turn the call back over to Mr. Madhu for any closing remarks. Please go ahead, sir.

Jay Madhu, Chairman, President and Chief Executive Officer, Oxbridge Re: 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 experience 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 or before. 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.

Denae, Conference Operator: Thank you. Ladies and gentlemen, that then concludes today’s conference. Thank you for joining us. You may now disconnect your lines.

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