OXBRW · Oxbridge Re Holdings Limited

Oxbridge Re Holdings Limited reported improved quarterly profitability for Q4 2025 with net income of $120,000, reversing from a net loss of $460,000 in the same quarter last year. This improvement was primarily driven by the allocation of underwriting losses to tokenholders, decreased negative change in fair value of equity securities, and increased investment income. However, net premiums earned decreased to $555,000 from $595,000 due to lower weighted average rates on reinsurance contracts. For the full year 2025, the company's net loss narrowed to $2.08 million from $2.73 million in 2024, attributed to higher overall revenues driven by a significant decrease in unrealized loss on other investments, partially offset by higher expenses and underwriting losses borne by tokenholders. Total expenses increased substantially to $6.04 million for 2025 from $2.17 million in 2024, primarily due to losses on reinsurance contracts affected by Hurricane Milton, increased professional costs for investor relations, web3 subsidiary tokenization costs, S-3 related costs, and higher personnel and legal expenditures. The company's tokenized reinsurance offerings showed strong performance, with the Balanced Yield Token (EtaCat Re) now anticipated to achieve 25% return (exceeding its initial 20% target) and the High Yield Token (ZetaCat Re) remaining on track for its 42% target. Management highlighted platform expansion through strategic partnerships with Alphaledger in the Solana ecosystem and LayerZero for distribution across more than 160 blockchain networks. Looking ahead, the company is preparing for the 2026-2027 contract cycle with T20 and T42 offerings targeting 20% and 42% returns respectively, while evaluating opportunities to expand into tokenization of data center revenue streams aligned with artificial intelligence infrastructure growth. Management believes the current market valuation does not fully reflect the company's approximately $6.9 million cash and restricted cash position or future earnings potential.