Breaking Down Oxbridge Re Holdings Limited (OXBR) Financial Health: Key Insights for Investors

You're looking at Oxbridge Re Holdings Limited (OXBR) and seeing a complex story: a traditional reinsurer in the US Gulf Coast that's aggressively pivoting into tokenized real-world assets (RWAs), and you need to know if the numbers back the narrative. The latest Q3 2025 results show a company in transition, reporting a total revenue of just over $2.00 million for the first nine months, a massive jump from the prior year, but still posting a net loss of $2.19 million for the same period. The big question is whether their innovative SurancePlus subsidiary, with its Balanced Yield Token now tracking an impressive 25% return, can offset the core reinsurance business risks, especially when the nine-month combined ratio-a key measure of underwriting profitability-skyrocketed to a defintely concerning 288.6%. With total assets sitting at $8.854 million as of September 30, 2025, the balance sheet is tight, so let's break down what this tokenization push really means for your investment thesis and what near-term risks, like the $2.293 million loss reserve tied to Hurricane Milton, you need to factor into your decision.

Revenue Analysis

You need to know where the money is coming from, and for Oxbridge Re Holdings Limited (OXBR), the story is shifting from traditional reinsurance to a high-growth, tech-enabled model. The direct takeaway is that while the core reinsurance premiums are stable, the company's total revenue for the first nine months of 2025 has exploded, primarily due to a low comparative base and a surge in investment-related income, which is a key risk to watch.

Oxbridge Re Holdings Limited's revenue streams fundamentally break into two categories: the traditional Net Premiums Earned from its property and casualty (P&C) reinsurance business and Net Investment and Other Income. The P&C reinsurance is focused on underwriting fully collateralized contracts for high-severity, medium-frequency risks, mostly in the US Gulf Coast region, especially Florida. That's the bedrock. The new, defintely more exciting stream is the tokenized Real-World Assets (RWAs) through its subsidiary, SurancePlus, which makes reinsurance securities accessible to a broader investor base.

Here's the quick math on the near-term growth: Total revenue for the nine months ended September 30, 2025, hit $2.001 million. This is a massive year-over-year increase of 1513.71% from the $124 thousand reported in the same period a year prior. What this estimate hides is that the prior year's revenue was exceptionally low, making the percentage jump look astronomical. But still, the trend is up.

When you look at the Q3 2025 revenue breakdown, you see the core business contribution clearly. Total revenue was $645,000 for the quarter. You can see the primary components:

• Net Premiums Earned: $555,000 (about 86.05% of total revenue).
• Net Investment and Other Income: $79,000 (about 12.25% of total revenue).

The remaining small portion is from other adjustments, like the positive change in the fair value of equity securities. The Net Premiums Earned segment is the most stable, but it actually decreased slightly in Q3 2025 to $555,000 from $595,000 in Q3 2024, due to a lower weighted average rate on in-force contracts. The investment income, however, is a growing piece of the pie and a key lever for management.

The biggest change in the revenue profile is the strategic pivot toward tokenized reinsurance, a process of turning real-world assets into digital tokens on a blockchain (like the EtaCat Re and ZetaCat Re tokens). This is a big move to diversify the funding base and is a major part of the company's Mission Statement, Vision, & Core Values of Oxbridge Re Holdings Limited (OXBR). The growth in Net Premiums Earned for the nine-month period, which rose to $1.73 million from $1.71 million, is due to higher weighted average rates on those reinsurance contracts, which is a good sign for pricing power. But, you have to be a realist: the business is still exposed to catastrophe risk. The company recorded a $2.293 million loss reserve tied to Hurricane Milton during the nine-month period, which, while not a direct revenue hit, severely impacts the net loss and signals the volatility inherent in the core business.

Profitability Metrics

You need to look past the small dollar figures and focus on the ratios-that's where the real story for Oxbridge Re Holdings Limited (OXBR) lies. The short takeaway is that while the company is aggressively pursuing a high-growth, high-return strategy through its tokenized reinsurance (Real-World Assets or RWA), its traditional underwriting business faced a severe profitability shock in the first nine months of 2025.

For the nine months ended September 30, 2025, Oxbridge Re reported a cumulative Net Loss of approximately $2.19 million on total revenue of about $2.00 million, resulting in a Net Profit Margin of -109.5%. This is a significant loss, still, it's a slight improvement from the $2.27 million net loss reported in the same period a year prior, mostly due to a reduction in unrealized investment losses.

Underwriting Profitability vs. Industry Peers

In the reinsurance world, the Combined Ratio is the truest measure of operational efficiency and gross profitability. It tells you if the core insurance business is making money before considering investment income. A ratio below 100% means an underwriting profit; above 100% means a loss. This is the quick math you need to see.

Oxbridge Re's underwriting performance for the first nine months of 2025 shows extreme volatility. The cumulative Combined Ratio for the nine months ended September 30, 2025, skyrocketed to 288.6%. This means for every dollar of net premium earned, the company spent approximately $2.89 on losses and expenses. This massive underwriting loss, estimated at $3.26 million for the nine-month period, was primarily driven by a full-limit loss on a reinsurance contract affected by Hurricane Milton.

To be fair, the industry average is much healthier. The broader reinsurance sector's average combined ratio stood at a profitable 98.7% in Q1 2025, with major reinsurers maintaining a robust average combined ratio of 81.5% in the first half of 2025. Oxbridge Re's ratio is defintely an outlier, reflecting its focus on high-severity, medium-frequency risks in the Gulf Coast region and the impact of a single major catastrophe. You can see how the company's strategic focus is laid out here: Mission Statement, Vision, & Core Values of Oxbridge Re Holdings Limited (OXBR).

Operational Efficiency and Profitability Trends

The trend in profitability ratios shows a clear deterioration across 2025, which you must track closely. The Q1 2025 Combined Ratio was actually a strong 95.8%, reflecting an underwriting profit. However, this efficiency quickly eroded, with the Q3 2025 Combined Ratio jumping to 146.8%, driven by significantly higher total expenses, which rose to $815,000 in Q3 2025 from $498,000 in Q3 2024.

Here's a snapshot of the operational shift in 2025:

• Q1 2025 Combined Ratio: 95.8% (Underwriting Profit)
• Q3 2025 Combined Ratio: 146.8% (Underwriting Loss)
• 9M 2025 Combined Ratio: 288.6% (Severe Underwriting Loss)

The rise in total expenses, which hit $4.99 million for the nine-month period, is a key concern for operational efficiency. This increase is tied to higher professional costs, legal expenditures, and costs related to its Web3 subsidiary, SurancePlus, which is tokenizing reinsurance securities. The company is essentially trading short-term underwriting profitability for long-term strategic investment in a new business model.

What this estimate hides is the potential for the SurancePlus tokenized products to generate high returns, with the Balanced Yield Token tracking a 25% return and the High Yield Token on pace for a 42% return. The core reinsurance business is struggling, but the new, high-growth RWA segment is the future opportunity. Monitor the expense ratio and loss ratio closely for normalization in the next quarter.

Debt vs. Equity Structure

The short answer is that Oxbridge Re Holdings Limited (OXBR) is overwhelmingly financed by equity, not debt. This is a critical point for investors to understand: the company operates with an extremely conservative capital structure, which dramatically reduces financial risk but also limits the leverage-driven returns you might see in larger, more traditional reinsurance players.

As of the first quarter of 2025 (Q1 2025), the company's total debt was only about $118,000. When you put that against the Oxbridge shareholders' equity of $7.039 million, the Debt-to-Equity (D/E) ratio is a tiny fraction of the industry average. Here's the quick math:

• D/E Ratio (Q1 2025): $118,000 / $7,039,000 $\approx$ 0.017.
• Industry Standard: The average D/E ratio for the reinsurance sector in 2025 is around 0.2705.

Your ratio of 0.017 is defintely a sign of a strong balance sheet, sitting far below the industry benchmark. This company is not using long-term debt to fund its growth; it's practically debt-free.

The company's financing strategy clearly favors equity funding and innovative capital sources over traditional debt. This has been evident in their recent capital-raising activities in 2025. They have focused on direct offerings, which are essentially sales of stock, to strengthen their capital base.

Key recent funding events include:

• Raised gross proceeds of $3 million through a reverse direct offering, subsequent to the end of the 2024 fiscal year.
• Generated $2.7 million net of expenses from a registered direct offering in Q1 2025.

This preference for equity is also driven by their unique business model. Oxbridge Re Holdings Limited is a pioneer in the tokenized Real-World Assets (RWAs) space, specifically tokenized reinsurance securities, through its subsidiary SurancePlus. The subsidiary, Oxbridge Re NS, acts as a reinsurance sidecar, issuing participating notes to third-party investors. The proceeds from these notes are then used to collateralize the reinsurance obligations of Oxbridge Reinsurance Limited.

What this estimate hides is that while the company's traditional debt is negligible, the tokenized securities represent a form of non-traditional, collateralized funding that functions as underwriting capacity. This innovative approach to capital formation is a core part of their Mission Statement, Vision, & Core Values of Oxbridge Re Holdings Limited (OXBR).

For a company of this size and structure, a formal, public credit rating from agencies like Moody's or Fitch is often absent, so you won't find a traditional rating to assess creditworthiness. Instead, you must focus on their strong capital base and the success of their tokenized RWA offerings to gauge financial stability.

Liquidity and Solvency

You need to know if Oxbridge Re Holdings Limited (OXBR) can cover its near-term obligations, and the quick answer is yes, but the source of that liquidity is key. The company's liquidity position is strong, primarily driven by a significant cash balance from recent financing activities, not consistent operating cash flow.

For a reinsurance company, looking at the current ratio (current assets / current liabilities) and quick ratio (most liquid current assets / current liabilities) tells us a lot about its immediate financial health. As of March 31, 2025, Oxbridge Re Holdings Limited held a very healthy current ratio of approximately 5.92 and a quick ratio of about 5.34. Here's the quick math for the current ratio: roughly $5.63 million in estimated non-restricted current assets against approximately $0.95 million in estimated current liabilities, which mainly include unearned premiums and loss reserves. That's a defintely strong cushion.

The trend in working capital (current assets minus current liabilities) is also positive. Net Current Asset Value was reported at $2.46 million at the end of December 2024, but our calculation for March 31, 2025, shows a jump to about $4.68 million. This surge means the company has substantially more liquid capital available to fund its day-to-day operations and potential claims than it did at the start of the year. This is the kind of immediate financial flexibility you want to see.

• Current Ratio: 5.92 (March 31, 2025).
• Quick Ratio: 5.34 (March 31, 2025).
• Working Capital: Up to $4.68 million (March 31, 2025).

Cash Flow Statements Overview: Where the Cash Comes From

While the balance sheet looks great, the cash flow statement for the nine months ended September 30, 2025, tells a more nuanced story about the company's core business profitability. Net cash used in operating activities totaled $1.781 million during this period. This means the core reinsurance and tokenized reinsurance operations, after accounting for premiums, expenses, and claims, are still a net drain on cash.

The positive cash position is almost entirely due to financing activities. The company raised significant capital, including a registered direct offering that generated $2.7 million net of expenses, which contributed to an increase in restricted cash and cash equivalents to $7.18 million as of September 30, 2025. Investing activities were a minor net provider of cash at $63,000 over the same nine-month period, reflecting minimal capital expenditure and a focus on managing existing investments.

Near-Term Liquidity Concerns and Strengths

The biggest strength is the sheer amount of cash and near-cash assets relative to liabilities. The high current and quick ratios show Oxbridge Re Holdings Limited is in no danger of missing a short-term payment. The restricted cash, which rose to $7.18 million by Q3 2025, acts as a strong collateral base, which is typical and necessary for a reinsurer. This capital provides a solid foundation for the company's strategic initiatives, especially its tokenized reinsurance products like the Balanced Yield Token (EtaCat Re) and High Yield Token (ZetaCat Re), which are tracking well, as detailed in the Mission Statement, Vision, & Core Values of Oxbridge Re Holdings Limited (OXBR).

However, the key risk is the persistent negative operating cash flow. Relying on capital raises (financing cash flow) to offset operating losses is not a sustainable, long-term business model. The company needs to convert its growing premium base and tokenization efforts into consistent, positive cash flow from operations to truly solidify its financial health. Until then, the liquidity is excellent, but it's an externally funded strength.

Valuation Analysis

You're looking at Oxbridge Re Holdings Limited (OXBR) and wondering if the price reflects the underlying business, especially with all the noise around their tokenized reinsurance push. The quick takeaway is this: based on traditional metrics and the 2025 fiscal year data, Oxbridge Re Holdings Limited (OXBR) appears to be technically undervalued if you believe in the high-end analyst price target, but the fundamental ratios suggest a high-risk, speculative situation due to a lack of profitability.

The stock is cheap for a reason. Its price-to-earnings (P/E) ratio is negative 3.6x (Trailing Twelve Months or TTM) because the company is currently losing money, reporting a net loss of $187,000 in Q3 2025. You can't value a company on earnings when it doesn't have any. Instead, we look at the price-to-book (P/B) ratio, which sits at about 1.7x. This means you are paying $1.70 for every $1.00 of book value (assets minus liabilities), which is a premium, but not an excessive one for a company with growth aspirations. The Enterprise Value-to-EBITDA (EV/EBITDA) is also challenging to interpret given the volatility in earnings before interest, taxes, depreciation, and amortization (EBITDA), but the TTM Net Debt to EBITDA is around 2.47, showing some leverage relative to operating cash flow. It's a tough read, honestly.

• P/E (TTM): -3.6x (Loss-making)
• P/B (TTM): 1.7x (Paying a premium for book value)
• Stock Price (Nov 2025): Around $1.25

Stock Price Trend and Dividend Reality

The stock price trend over the last year is a flashing yellow light. The 52-week range is a brutal illustration of risk, moving from a high of $5.81 to a low of $1.21. As of mid-November 2025, the price is hovering near the low end at around $1.25, representing a sharp one-year decline of approximately -55.67%. This kind of volatility is typical for micro-cap stocks undergoing a major strategic shift, like Oxbridge Re Holdings Limited's move into tokenized reinsurance through SurancePlus. The market is defintely pricing in high uncertainty.

On the income front, you shouldn't expect a payout. Oxbridge Re Holdings Limited (OXBR) currently does not pay a dividend, so your dividend yield is 0% and the payout ratio is not applicable. Your return here is purely dependent on capital appreciation, which ratchets up the risk profile considerably.

Analyst Consensus and Actionable Insight

The analyst consensus is mixed, which is often the case with small, transforming companies. One analyst maintains a 'Buy' rating with an ambitious 12-month price target of $5.00, suggesting a massive +300.00% upside from the current price. Another report, however, points to a 'Hold' consensus. The technical indicators, in contrast, signal a 'Strong Sell' trend, reflecting the recent negative price momentum. Here's the quick math: if the stock hits that $5.00 target, it's a huge win, but that target is based on the success of their new, unproven tokenized reinsurance business, which is a major 'if'.

What this estimate hides is the execution risk. The company's combined ratio for the nine months ending September 30, 2025, ballooned to 288.6%, up from 98% a year prior, showing significant underwriting and expense challenges in the core business. So, your action is clear: treat this as a venture capital-style bet on the success of their blockchain pivot, not a traditional reinsurance investment. Before you jump in, you should be asking who else is buying and why. You can read more about that here: Exploring Oxbridge Re Holdings Limited (OXBR) Investor Profile: Who's Buying and Why?

Risk Factors

You need to understand that investing in Oxbridge Re Holdings Limited (OXBR) right now is a two-sided coin: you get exposure to a traditional, high-risk reinsurance book alongside a hyper-innovative, but still unproven, Web3 strategy. The near-term risks, especially operational and financial, are clearly visible in the Q3 2025 numbers.

The company's ability to generate consistent underwriting profit is the first major hurdle. For the third quarter of 2025, Oxbridge Re Holdings Limited reported a Combined Ratio of 146.8%. This is a massive jump from 83.7% in Q3 2024, and simply means the company is paying out far more in claims and expenses than it is collecting in premiums. You can't sustain that long-term.

Here's the quick math on the financial and operational pressure points:

• Catastrophe Exposure: The nine-month loss ratio spiked to 132.4%, and the combined ratio hit 288.6%, due to a single, full-limit loss from Hurricane Milton. This is the core risk of their property and casualty (P&C) focus in the U.S. Gulf Coast region.
• Rising Expenses: Total expenses for Q3 2025 increased sharply to $815,000, up from $498,000 in Q3 2024. This increase is tied directly to higher professional and legal costs, mostly related to the Web3 subsidiary's tokenization efforts.
• Net Loss: The company posted a net loss of $187,000 for Q3 2025, contributing to a nine-month net loss of $2.19 million. You're buying into a company that is still losing money.

The company's traditional reinsurance business is defintely facing market competition, too. Net Premiums Earned for Q3 2025 decreased to $555,000, down from $595,000 in the prior year, a drop attributed to a lower weighted average rate on reinsurance contracts. This suggests pricing power is being squeezed in their niche market.

On the strategic front, the biggest external risk is regulatory uncertainty. Oxbridge Re Holdings Limited is pioneering tokenized reinsurance securities, or Real-World Assets (RWAs), through its SurancePlus subsidiary. While this innovation is a huge opportunity-the Balanced Yield Token is tracking a return of approximately 25% versus its 20% target-it puts the company directly in the crosshairs of evolving global digital asset regulations. Plus, the board has initiated a formal strategic review process to explore alternatives like a sale or spin-out for the company and its Web3 division. That level of corporate uncertainty can weigh heavily on the stock price.

The primary mitigation strategy is the successful performance and expansion of the tokenized reinsurance platform. The strong returns from the CatRe tokens are attracting capital, and the company is considering introducing regular dividend payouts on these tokens to broaden investor appeal. Also, the company's restricted cash and cash equivalents rose to $7.18 million as of September 30, 2025, which gives them some cushion to navigate the volatility.

The table below summarizes the core financial risks and the strategic counter-measures in the nine months ended September 30, 2025:

The next step for you is to dive deeper into the tokenized asset side of the business, because that's where the growth story is. Exploring Oxbridge Re Holdings Limited (OXBR) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at Oxbridge Re Holdings Limited (OXBR) and trying to map their future, and the clear takeaway is this: their growth story isn't about traditional reinsurance anymore. It's a Web3 play. The company is betting its future on digitizing reinsurance securities into tokenized Real-World Assets (RWAs), and that pivot is the single biggest driver of their near-term opportunity.

The core of this strategy is their subsidiary, SurancePlus Inc., which is pioneering a way to democratize access to the institutional-grade reinsurance market. This is a massive shift, and frankly, it's smart. They're the first Nasdaq-listed company to issue a tokenized security in this space, giving them a defintely valuable first-mover advantage.

Product Innovation and Revenue Projections

Their product innovations are directly tied to attracting a broader investor base. The 2025-2026 tokenized reinsurance offerings, launched through SurancePlus, provide two distinct risk-return profiles. This is how they scale: by offering choice and high potential yields.

• EtaCat Re: Balanced-yield product targeting a 20% annual return.
• ZetaCat Re: High-yield option targeting a 42% annual return.

Here's the quick math on projections: Analysts currently project Oxbridge Re Holdings Limited's full-year 2025 revenue to be around $3.27 million, with a consensus Earnings Per Share (EPS) estimate of $0.01. To be fair, this is a thin margin, and the company reported a net loss of $2.19 million for the nine months ended September 30, 2025, or $0.30 per share, so the tokenization strategy needs to accelerate fast to hit that full-year EPS target.

Strategic Alliances and Competitive Edge

The real engine for future revenue growth is distribution, and Oxbridge Re Holdings Limited is tackling this through key strategic partnerships. They know they can't build the whole ecosystem alone, so they're using alliances to expand their reach and bolster their Real-World Asset (RWA) platform.

A major initiative was the March 2025 Memorandum of Understanding (MOU) with Plume, a blockchain platform that manages over $4.5 billion in committed assets. This immediately enhances distribution for their tokenized securities. Also, their August 2025 partnership with the Midnight Foundation is aimed at launching a privacy-enabled offering on the Midnight Network, which is built by a subsidiary of the firm behind Cardano.

Their competitive advantage is simple: they are bridging traditional finance and blockchain, all while operating as a Nasdaq-listed entity, which provides a layer of compliance and transparency that many competitors lack. This makes the RWA-collateralized reinsurance contracts more appealing to a wider range of investors. For more on their long-term focus, you can check out their Mission Statement, Vision, & Core Values of Oxbridge Re Holdings Limited (OXBR).

The table below summarizes the 2025 financial performance from the first three quarters, showing the current operational scale before the tokenization strategy fully matures.

The next concrete step is to monitor the Q4 2025 earnings call for an update on the capital raised from the EtaCat Re and ZetaCat Re offerings, as that will be the true indicator of distribution success. Finance: track the change in restricted cash for Q4 to gauge RWA offering uptake.