Texas Republic Capital's Net Loss Widens to $773K Amid Revenue Dip

TL;DR

**Texas Republic Capital is bleeding cash, with widening losses and shrinking assets, making it a risky bet for investors.**

AI Summary

Texas Republic Capital Corp (TRCC) reported a net loss of $773,111 for the nine months ended September 30, 2025, an increase from the $700,056 net loss in the prior year period. Total revenues decreased to $4,491,547 for the nine months ended September 30, 2025, down from $4,800,022 in the same period of 2024, primarily due to a decline in net investment income from $1,463,576 to $994,155. Premiums and other considerations, however, increased to $3,430,986 from $3,247,747. Total assets decreased from $33,811,480 at December 31, 2024, to $30,167,544 at September 30, 2025, driven by reductions in available-for-sale fixed maturity securities and mortgage loans. Policy liabilities also decreased from $22,552,804 to $19,303,515. The company continued its private placement offering, raising $4,523,123 through the subscription of 603,083 shares as of September 30, 2025, which is set to end on January 1, 2026. Cash and cash equivalents decreased by $867,259 to $5,782,538 during the nine-month period.

Why It Matters

This 10-Q reveals Texas Republic Capital Corp's continued struggle with profitability, posting an increased net loss and declining total revenues. For investors, the shrinking asset base and persistent losses raise concerns about long-term viability and capital preservation, especially given the ongoing private placement offering. Employees might face uncertainty if financial performance doesn't improve. Customers of Texas Republic Life Insurance Company (TRLIC) and its agencies should monitor the parent company's financial health, though TRLIC's capitalization remains substantial at $13,857,133. In a competitive insurance market, sustained losses could hinder TRCC's ability to invest in growth and innovation, potentially impacting its market position against larger, more established insurers.

Risk Assessment

Risk Level: high — The company reported a net loss of $773,111 for the nine months ended September 30, 2025, an increase from $700,056 in the prior year, indicating a worsening financial performance. Total assets decreased by over $3.6 million from $33,811,480 at December 31, 2024, to $30,167,544 at September 30, 2025, and cash and cash equivalents declined by $867,259, signaling liquidity concerns and a shrinking balance sheet.

Analyst Insight

Investors should exercise extreme caution and consider divesting, or at minimum, avoid new investments in Texas Republic Capital Corp. The consistent net losses and declining asset base suggest fundamental operational challenges that are not improving, despite ongoing capital raises. A deeper dive into the company's strategy for reversing these trends is warranted before any consideration of investment.

Financial Highlights

debt To Equity

N/A

revenue

$4,491,547

operating Margin

N/A

total Assets

$30,167,544

total Debt

N/A

net Income

-$773,111

eps

-$0.05

gross Margin

N/A

cash Position

$5,782,538

revenue Growth

-6.43%

Revenue Breakdown

Key Numbers

• $773,111 — Net Loss (Increased from $700,056 in prior year period for nine months ended September 30, 2025)
• $4,491,547 — Total Revenues (Decreased from $4,800,022 in prior year period for nine months ended September 30, 2025)
• $994,155 — Net Investment Income (Decreased from $1,463,576 in prior year period for nine months ended September 30, 2025)
• $3,430,986 — Premiums and Other Considerations (Increased from $3,247,747 in prior year period for nine months ended September 30, 2025)
• $30,167,544 — Total Assets (Decreased from $33,811,480 at December 31, 2024)
• $19,303,515 — Total Policy Liabilities (Decreased from $22,552,804 at December 31, 2024)
• $5,782,538 — Cash and Cash Equivalents (Decreased by $867,259 from beginning of period for nine months ended September 30, 2025)
• $4,523,123 — Proceeds from Common Stock Subscription (Raised through private placement offering as of September 30, 2025)
• 15,553,619 — Common Stock Shares Outstanding (As of November 1, 2025)
• $13,857,133 — Total Capitalization of TRLIC (As of September 30, 2025)

Key Players & Entities

• Texas Republic Capital Corporation (company) — parent holding company
• Texas Republic Life Insurance Company (company) — life insurance subsidiary
• Texas Republic Life Solutions, Inc. (company) — life and health insurance agency subsidiary
• Axis Insurance Solutions, LLC (company) — property & casualty insurance agency subsidiary
• Texas Department of Insurance (regulator) — approved TRLIC's life insurance charter
• Securities and Exchange Commission (regulator) — regulates securities offerings
• $773,111 (dollar_amount) — net loss for nine months ended September 30, 2025
• $4,491,547 (dollar_amount) — total revenues for nine months ended September 30, 2025
• $30,167,544 (dollar_amount) — total assets as of September 30, 2025
• $5,782,538 (dollar_amount) — cash and cash equivalents as of September 30, 2025

FAQ

Risk Factors

• Declining Net Investment Income [high — financial]: Net investment income decreased by 32.08% to $994,155 for the nine months ended September 30, 2025, from $1,463,576 in the prior year period. This significant decline contributes to the overall net loss and impacts profitability.
• Increasing Net Loss [high — financial]: The company reported a net loss of $773,111 for the nine months ended September 30, 2025, an increase from the $700,056 net loss in the same period of 2024. This trend indicates worsening financial performance.
• Decreasing Total Assets [medium — financial]: Total assets have decreased from $33,811,480 at December 31, 2024, to $30,167,544 at September 30, 2025. This reduction is primarily due to decreases in available-for-sale fixed maturity securities and mortgage loans.
• Reduced Cash Position [medium — financial]: Cash and cash equivalents decreased by $867,259 to $5,782,538 during the nine-month period ended September 30, 2025. This reduction in liquidity could pose challenges for short-term obligations.
• Dependence on Private Placement Offerings [medium — financial]: The company is actively raising capital through a private placement offering, having raised $4,523,123 as of September 30, 2025. Continued reliance on such offerings suggests potential difficulties in generating sufficient organic cash flow.
• Insurance Regulatory Compliance [medium — regulatory]: As a holding company for a life insurance subsidiary (TRLIC), the company is subject to state insurance regulations. Compliance with capital requirements, solvency standards, and market conduct rules is critical and can impact operations.

Industry Context

Texas Republic Capital Corp operates within the life and annuity insurance sector. This industry is characterized by long-term financial commitments, regulatory oversight, and sensitivity to interest rate environments. Competition often comes from established national insurers as well as regional players. Trends include a focus on digital distribution, product innovation in retirement solutions, and managing investment portfolios to meet long-term liabilities.

Regulatory Implications

As an insurance holding company, TRCC is subject to state-specific insurance regulations, particularly in Texas where its primary subsidiary, TRLIC, operates. These regulations govern capital adequacy, reserve requirements, and market conduct, and non-compliance can lead to fines, sanctions, or operational restrictions.

What Investors Should Do

1. Monitor the trend in net investment income
2. Analyze the effectiveness of the private placement offering
3. Evaluate the drivers of asset and liability reductions

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period for which financial results are reported, showing increased net loss and decreased revenues.
• 2025-01-01: Private placement offering end date — The company's private placement offering is scheduled to conclude, impacting future capital raising efforts.
• 2024-12-31: Total Assets as of December 31, 2024 — Baseline for comparison of asset reduction in the current period.

Glossary

Premiums and other considerations

Revenue generated from insurance policies, including initial payments and subsequent premiums. (A primary revenue stream for the company, showing an increase in the current period.)

Net investment income

Income earned from the company's investments, such as interest, dividends, and realized gains/losses, net of investment expenses. (A significant component of revenue that has seen a substantial decrease, negatively impacting overall performance.)

Policy liabilities

Obligations of the insurance company to policyholders, primarily future policy benefits and claims. (A key liability that has decreased, reflecting a reduction in future payout commitments.)

Available-for-sale fixed maturity securities

Investments in debt securities that are not classified as held-to-maturity or trading securities, whose fair value changes are reported in other comprehensive income. (A component of assets that has decreased, contributing to the overall decline in total assets.)

Accumulated Deficit

The cumulative net losses of the company since its inception, offset by any net profits. (Shows the company's historical unprofitability, which has increased in the current period.)

Year-Over-Year Comparison

Compared to the nine months ended September 30, 2024, Texas Republic Capital Corp has experienced a worsening financial performance. Total revenues declined by 6.43% from $4,800,022 to $4,491,547, primarily driven by a substantial 32.08% drop in net investment income. Consequently, the net loss widened by 10.44% from $700,056 to $773,111. Total assets also decreased by approximately 10.79% from $33,811,480 to $30,167,544, while policy liabilities saw a reduction of 14.41%.

Key Financial Figures

• $0.01 — hange on which registered Common stock $0.01 par - None 13215 Bee Cave Parkway, St

Filing Documents

• trcc10q093025.htm (10-Q) — 736KB
• trccex31-1.htm (EX-31.1) — 13KB
• trccex31-2.htm (EX-31.2) — 13KB
• trccex32-1.htm (EX-32.1) — 4KB
• trccex32-2.htm (EX-32.2) — 4KB
• 0001185185-25-001711.txt ( ) — 4766KB
• trcc-20250930.xsd (EX-101.SCH) — 36KB
• trcc-20250930_cal.xml (EX-101.CAL) — 58KB
• trcc-20250930_def.xml (EX-101.DEF) — 184KB
• trcc-20250930_lab.xml (EX-101.LAB) — 353KB
• trcc-20250930_pre.xml (EX-101.PRE) — 200KB
• trcc10q093025_htm.xml (XML) — 629KB

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 3 Consolidated Statements of Financial Position as of September 30, 2025 (Unaudited) and December 31, 2024 3 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 5 Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Controls and Procedures

Item 4. Controls and Procedures 28 Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 29

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 29

Signatures

Signatures 30 Exhibit No. 31.1 Exhibit No. 31.2 Exhibit No. 32.1 Exhibit No. 32.2 Exhibit No. 101.INS Exhibit No. 101.SCH Exhibit No. 101.CAL Exhibit No. 101.DEF Exhibit No. 101.LAB Exhibit No. 101.PRE Exhibit No. 104. FIL Table of Contents PART I – FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Texas Republic Capital Corporation and Subsidiaries Consolidated September 30, 2025 (Unaudited) December 31, 2024 Assets Available-for-sale fixed maturity securities at fair value (Amortized cost: $ 4,516,459 and $ 5,488,966 as of September 30, 2025 and December 31, 2024, respectively) $ 4,374,604 $ 5,190,902 Mortgage loans, net of allowance 10,396,736 12,036,730 Policy loans 4,017 7,327 Other long-term investments 1,346,118 1,667,757 Total investments 16,121,475 18,902,716 Cash and cash equivalents 5,782,538 6,649,797 Accrued investment income 170,872 148,157 Due premium 84,125 81,955 Reinsurance recoverable 1,114,982 1,336,260 Deferred policy acquisition costs 4,877,525 4,514,562 Deferred sales inducement costs 22,067 53,773 Advances and notes receivable, net of allowance 24,951 25,174 Leased property - right to use 189,117 254,581 Prepaid assets 66,388 46,357 Intangible assets, net of accumulated amortization 159,801 196,678 Furniture and equipment, net 11,779 16,290 Other assets 1,541,924 1,585,180 Total assets $ 30,167,544 $ 33,811,480 Liabilities and Shareholders' Equity Policy liabilities Policyholders' account balances $ 14,836,772 $ 18,320,927 Future policy benefits 3,640,368 3,047,347 Policy claims and other benefits 548,902 932,284 Liability for deposit-type contracts 152,199 195,039 Other policyholder liabilities 125,274 57,207 Total policy liabilities 19,303,515 22,552,804 Lease liability 189,117 254,581 Other liabilities 318,627 566,403 Total liabilities 19,811,259

notes to consolidated financial statements (unaudited)

notes to consolidated financial statements (unaudited). 3 Table of Contents Texas Republic Capital Corporation and Subsidiaries Consolidated (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues Premiums and other considerations $ 979,886 $ 1,171,460 $ 3,430,986 $ 3,247,747 Net investment income 306,816 442,543 994,155 1,463,576 Net realized losses on investments ( 317 ) - ( 13,346 ) - Commission income 49,288 45,042 79,752 88,699 Total revenues 1,335,673 1,659,045 4,491,547 4,800,022 Benefits, claims and expenses Increase in future policy benefits 46,576 35,713 260,408 332,394 Death and other benefits 3,485 261,581 565,050 605,599 Interest credited to policyholders 162,949 193,554 506,530 701,952 Total benefits and claims 213,010 490,848 1,331,988 1,639,945 Policy acquisition costs deferred ( 374,960 ) ( 716,011 ) ( 1,185,342 ) ( 1,831,849 ) Policy acquisition costs amortized 233,164 458,240 822,379 866,274 Commissions 534,068 810,855 1,709,164 2,210,367 Salaries and employee benefits 490,600 508,059 1,506,482 1,503,878 Office rent 25,107 24,727 73,919 72,781 Third-party administration fees ( 675 ) 50,718 133,403 101,946 Travel, meals, and entertainment 13,357 22,363 40,147 46,529 Professional fees 47,467 205,730 300,092 432,177 Other general and administrative expenses 155,775 170,133 532,426 458,030 Total benefits, claims and expenses 1,336,913 2,025,662 5,264,658 5,500,078 Net loss $ ( 1,240 ) $ ( 366,617 ) $ ( 773,111 ) $ ( 700,056 ) Net loss per common share outstanding and subscribed $ 0.00 $ ( 0.02 ) $ ( 0.05 ) $ ( 0.04 ) See

notes to consolidated financial statements (unaudited)

notes to consolidated financial statements (unaudited). 4 Table of Contents Texas Republic Capital Corporation and Subsidiaries Consolidated (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net loss $ ( 1,240 ) $ ( 366,617 ) $ ( 773,111 ) $ ( 700,056 ) Other comprehensive income Total net unrealized gains arising during the period 52,779 184,625 142,863 116,593 Plus net realized investment losses 317 - 13,346 - Net unrealized investment gains 53,096 184,625 156,209 116,593 Total other comprehensive income 53,096 184,625 156,209 116,593 Total comprehensive income (loss) $ 51,856 $ ( 181,992 ) $ ( 616,902 ) $ ( 583,463 ) See

notes to consolidated financial statements (unaudited)

notes to consolidated financial statements (unaudited). 5 Table of Contents Texas Republic Capital Corporation and Subsidiaries Consolidated Nine Months Ended September 30, 2025 and 2024 (Unaudited) Common Stock $.01 Par Value Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Loss Accumulated Deficit Total Shareholders' Equity Balance as of January 1, 2024 $ 159,598 $ 24,519,315 $ ( 47,720 ) $ ( 287,271 ) $ ( 14,348,391 ) $ 9,995,531 Common stock shares subscribed 1,717 1,280,975 - - - 1,282,692 Other comprehensive income - - - 116,593 - 116,593 Net loss - - - - ( 700,056 ) ( 700,056 ) Balance as of September 30, 2024 $ 161,315 $ 25,800,290 $ ( 47,720 ) $ ( 170,678 ) $ ( 15,048,447 ) $ 10,694,760 Balance as of January 1, 2025 $ 161,319 $ 25,802,694 $ ( 47,720 ) $ ( 298,064 ) $ ( 15,180,537 ) $ 10,437,692 Common stock shares subscribed 717 534,778 - - - 535,495 Other comprehensive income - - - 156,209 - 156,209 Net loss - - - - ( 773,111 ) ( 773,111 ) Balance as of September 30, 2025 $ 162,036 $ 26,337,472 $ ( 47,720 ) $ ( 141,855 ) $ ( 15,953,648 ) $ 10,356,285 Three Months Ended September 30, 2025 and 2024 (Unaudited) Common Stock $.01 Par Value Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Loss Accumulated Deficit Total Shareholders' Equity Balance as of July 1, 2024 $ 160,979 $ 25,549,500 $ ( 47,720 ) $ ( 355,303 ) $ ( 14,681,830 ) $ 10,625,626 Common stock shares subscribed 336 250,790 - - - 251,126 Other comprehensive income - - - 184,625 - 184,625 Net loss - - - - ( 366,617 ) ( 366,617 ) Balance as of September 30, 2024 $ 161,315 $ 25,800,290 $ ( 47,720 ) $ ( 170,678 ) $ ( 15,048,447 ) $ 10,694,760 Balance as of July 1, 2025 $ 161,848 $ 26,196,406 $ ( 47,720 ) $ ( 194,951 ) $ ( 15,952,408 ) $ 10

notes to consolidated financial statements (unaudited)

notes to consolidated financial statements (unaudited). 6 Table of Contents Texas Republic Capital Corporation and Subsidiaries Consolidated (Unaudited) Nine Months Ended September 30, 2025 2024 Operating activities Net loss $ ( 773,111 ) $ ( 700,056 ) Adjustments to reconcile net loss to net cash used in operating activities: Net accretion of discount and amortization of premium on investments ( 87,401 ) ( 147,431 ) Net realized capital losses 13,346 - Provision for depreciation and amortization 41,388 42,343 Policy acquisition costs deferred ( 1,185,342 ) ( 1,831,849 ) Policy acquisition costs amortized 822,379 866,274 Amortization of mortgage loan origination fees 24,367 10,827 Provision for estimated mortgage loan losses ( 8,119 ) ( 12,559 ) Provision for estimated uncollectible advances and notes receivable - ( 7,649 ) Interest credited to policyholders 506,530 701,952 Change in assets and liabilities: Accrued investment income ( 22,715 ) 12,171 Due premium ( 2,170 ) ( 53,305 ) Reinsurance recoverable 221,278 ( 438,094 ) Advances and notes receivable 223 220,511 Prepaid assets ( 20,031 ) ( 30,578 ) Other assets 43,256 177,226 Future policy benefits 593,021 658,014 Policy claims ( 383,382 ) 184,064 Other policy liabilities 68,067 697,830 Other liabilities ( 247,776 ) 122,204 Net cash provided by (used in) operating activities ( 396,192 ) 471,895 Investing activities Sales and maturities of available for sale securities 954,583 230,845 Payments on mortgage loans 1,642,236 2,529,880 Policy loans 3,310 8,901 Payments on other long-term investments 395,128 1,055,392 Net cash provided by investing activities 2,995,257 3,825,018 Financing activities Proceeds from the subscription of common stock 535,495 1,282,692 Policyholder deposits 3,120,104 966,886 Policyholder withdrawals ( 7,079,083 ) ( 9,721,667 )

notes to consolidated financial statements (unaudited)

notes to consolidated financial statements (unaudited). 7 Table of Contents Texas Republic Capital Corporation and Subsidiaries Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) 1. Organization and Significant Accounting Policies Nature of Operations Texas Republic Capital Corporation (the "Company") is the parent holding company of Texas Republic Life Insurance Company ("TRLIC"), Texas Republic Life Solutions, Inc. ("TRLS"), and Axis Insurance Solutions, LLC ("AIS"). The Company was incorporated in Texas on May 15, 2012, for the primary purpose of forming and capitalizing a life insurance company subsidiary. The Texas Department of Insurance approved TRLIC's life insurance charter on August 1, 2016. The Company capitalized TRLIC with $ 3,000,000 and owns 100 % of TRLIC. TRLIC began insurance operations on April 3, 2017 and is currently selling life and annuity products in the state of Texas. In 2018, the Company made additional capital contributions totaling $ 2,750,000 for the entire year. In 2019, the Company made two more capital contributions to TRLIC. The first contribution consisted of mortgage loans valued at $ 857,133 and the second one was a $ 1,300,000 cash contribution. In 2021 and 2022, the Company made additional total capital contributions of $ 2,100,000 and $ 2,100,000 , respectively. In 2023, the Company made $ 1,750,000 in total capital contributions. Total capitalization of TRLIC was $ 13,857,133 at September 30, 2025. TRLS, a life and health insurance agency, was incorporated February 1, 2017. The Company capitalized TRLS with $ 50,000 and owns 100 % of TRLS. In 2018 and 2020, the Company made additional capital contributions of $ 100,000 and $ 200,000 , respectively. In 2021 and 2022, the Company made additional total capital contributions of $ 50,000 and $ 150,000 , respectively. Total capitalization of TRLS was $ 550,000 at September 30, 2025. AIS, a property & casualty insurance agency, was form

View Full Filing

View this 10-Q filing on SEC EDGAR