On May 1, 2026, the Company completed the sale of Reliance, its mortgage segment, pursuant to the Purchase Agreement entered on October 31, 2025. The total consideration received for the sale of Reliance consisted of cash proceeds of $49,667, subject to customary post-closing adjustments. The disposal group incurred cumulative impairment losses of $9,052 upon its initial classification as held for sale and as a discontinued operation in 2025 which was inclusive of a goodwill and intangible impairment of $1,708. During the six months ended June 30, 2026, the Company recognized a favorable adjustment of $486 in discontinued operations related to subsequent changes in estimated fair value less costs to sell, resulting in a cumulative pre-tax loss of $8,566.

On May 29, 2026, the Company completed the sale of Fortegra, its insurance segment, pursuant to the Sale Agreement entered on September 26, 2025. The total consideration received for the sale of Fortegra consisted of cash proceeds of $1,650,000, less transaction expenses of $25,023 in which the Company received consideration of $1,121,743. The Company recognized an after-tax gain on sale of $372,240, which is included in net income from discontinued operations for the three and six months ended June 30, 2026.

Prior to their sale, the assets and liabilities of Fortegra and Reliance were classified as held for sale as of December 31, 2025. Upon completion of the sales in the three months ended June 30, 2026, the Company transferred control of the respective subsidiaries to the buyers and derecognized the related assets and liabilities from the Company’s condensed consolidated balance sheet.

In connection with the sale of Fortegra and Reliance, the results of operations for these businesses are presented as discontinued operations in the condensed consolidated statements of operations for all periods presented. The results of discontinued operations include the operating results of Fortegra and Reliance through their respective disposal dates in the three months ended June 30, 2026, and the gain (loss) recognized upon disposition.

The following table presents details of Fortegra’s revenues and expenses of discontinued operations in the condensed consolidated statements of operations for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Earned premiums, net	$	252,085	$	381,941	$	627,130	$	745,378
Service and administrative fees		53,522		96,847		138,339		194,145
Ceding commissions		1,810		3,542		5,159		7,175
Net investment income		5,926		10,505		22,254		22,234
Net realized and unrealized gains (losses)		24,454		11,968		15,893		8,549
Other revenue		3,792		8,214		11,231		16,117
Total revenues		341,589		513,017		820,006		993,598

Expenses:
Policy and contract benefits		136,736		226,472		332,834		435,785
Commissions expense		86,188		140,486		231,801		292,086
Employee compensation and benefits		38,898		37,711		76,541		74,146
Interest expense (1)		6,515		10,469		16,153		20,528
Depreciation and amortization expenses (2)		—		4,484		—		8,934
Other expenses (2)		19,496		28,461		59,127		60,320
Total expenses		287,833		448,083		716,456		891,799
Income (loss) before taxes		53,756		64,934		103,550		101,799
Gain (loss) on sale of discontinued operations		484,544		—		484,544		—
Income (loss) before taxes (including sale)		538,300		64,934		588,094		101,799
Less: provision (benefit) for income taxes (3)		131,677		23,582		152,229		37,640
Net income (loss) from discontinued operations		406,623		41,352		435,865		64,159
Less: net income (loss) attributable to non-controlling interests		10,416		12,144		19,146		19,477
Net income (loss) from discontinued operations after non-controlling interests	$	396,207	$	29,208	$	416,719	$	44,682

(1)

Due to a loan covenant on the Tiptree Holdings debt, repayment was required from the proceeds of the Sale. In accordance with ASC 205-20, Presentation of Financial Statements, expenses related to this debt have been classified within discontinued operations, for the six months ended June 30, 2026 and 2025 amounted to approximately $2,951 and $3,236, respectively. See Note (5) Debt, net for further details.

(2)

In accordance with ASC 360, Property, Plant and Equipment, the Company ceased recording depreciation and amortization on long-lived assets upon their classification as held for sale.

The following table presents details of Reliance’s revenues and expenses of discontinued operations in the condensed consolidated statements of operations for the following periods:


	Three Months Ended June 30,					Six Months Ended June 30,
	2026			2025		2026			2025
Revenues:
Net realized and unrealized gains (losses)	$	2,744		$	10,132	$	13,026		$	19,642
Other revenue		2,795			6,100		8,417			11,769
Total revenues		5,539			16,232		21,443			31,411

Expenses:
Employee compensation and benefits		3,231			9,827		12,449			19,143
Interest expense		226			392		518			694
Depreciation and amortization expenses (1)		—			79		—			153
Impairment expense (2)		175			—		(486	)		—
Other expenses (1)		2,871			5,696		8,051			11,393
Total expenses		6,503			15,994		20,532			31,383
Income (loss) before taxes		(964	)		238		911			28
Less: provision (benefit) for income taxes (3)		(439	)		41		563			(31	)
Net income (loss) from discontinued operations	$	(525	)	$	197	$	348		$	59

(1)

In accordance with ASC 360, Property, Plant and Equipment, the Company ceased recording depreciation and amortization on long-lived assets upon their classification as held for sale.

(2)

As part of the sale of mortgage segment, the Company recognized an impairment charge to reduce the carrying amount of the subsidiary’s assets to their estimated fair value, based on the consideration specified in the Reliance Purchase Agreement.

(3)

For the six months ended June 30, 2026 and 2025 deferred tax expense of $466 and $0, respectively, was associated with the book-to-tax basis difference in Tiptree’s investment in Reliance. While the liability is a parent-level tax attribute, the expense relating to it is classified within discontinued operations in accordance with ASC 740-10-45-20, Income Taxes.

The following table represents a summary of cash flows related to discontinued operations included in the condensed consolidated statements of cash flows for the following periods:


	Six Months Ended June 30,
	2026			2025
Net cash provided by (used in):
Operating activities	$	(14,590	)	$	2,684
Investing activities		29,888			(737	)
Financing Activities		13,249			(4,340	)
Net cash flows provided by (used in) discontinued operations	$	28,547		$	(2,393	)