Reliability RLBY

Reliability Inc provides Employer of Record (EOR) services, staffing solutions, video production, and direct hire placements to clients across various industries. The company specializes in managing workforce logistics, including payroll, benefits administration, and compliance for contingent workers. Its core operations focus on delivering flexible workforce solutions that help clients scale operations while reducing administrative burdens.

Reliability Inc generates revenue through fees charged for EOR services, staffing placements, video production projects, and direct hire recruitment. EOR revenue is derived from managing W-2 and 1099 classified talent on behalf of clients, including payroll processing and related employment costs. Staffing revenue comes from placing temporary and contract workers in client organizations. Video Production revenue is generated from creating multimedia content for corporate and marketing purposes. Direct hire placements involve permanent recruitment services, though this segment generated no revenue during the reporting periods covered in the filing.

The company operates through the following segments: Employer of Record, Staffing, Video Production, and Direct Hire.

• Employer of Record: This segment manages payroll, benefits, tax compliance, and other employment-related functions for contingent workers classified as either W-2 employees or 1099 independent contractors. The company handles client billing and collects payments from end-users while ensuring timely disbursement of funds to field talent. EOR services are delivered through arrangements that include both traditional factoring and lower-cost receivables purchase programs with financial institutions such as JPMorgan and MUFG Bank Ltd. to improve liquidity and cash conversion.
• Staffing: This segment focuses on identifying, screening, and placing temporary and contract workers with client companies across multiple sectors. Reliability Inc manages the recruitment process, onboarding, and ongoing employee relations for assigned personnel. The Staffing business has demonstrated improved profitability and margin expansion, driven by higher-margin managed-service arrangements and stronger operational performance during the six months ended June 30, 2026.
• Video Production: This segment creates custom video content for clients, including corporate training materials, promotional videos, and multimedia presentations. The company oversees the full production lifecycle from concept development and scripting to filming, editing, and final delivery. Video Production revenue has shown notable growth, increasing 52.9% in the quarter and 32.1% year-to-date, supported by improved gross margin performance.
• Direct Hire: This segment involves permanent recruitment services where Reliability Inc identifies and places candidates in full-time positions with client organizations. Although this service offering exists, the segment generated no revenue during the three or six months ended June 30, 2026, compared to $13 thousand and $23 thousand in the prior-year periods, indicating a temporary pause or minimal activity in this line of business.

Reliability Inc operates in a competitive landscape populated by national and regional staffing firms, Employer of Record providers, and workforce solutions companies. The company differentiates itself through its integrated service model combining EOR, staffing, and video production capabilities under a single platform. Its use of structured receivables financing programs with major banks like JPMorgan and MUFG provides a liquidity advantage over competitors reliant on traditional factoring, enabling more efficient working capital management.

The company serves a diverse client base including enterprises in technology, healthcare, manufacturing, and professional services sectors. Specific client names are not disclosed in the filing, but Reliability Inc references a large enterprise client that utilizes its JPMorgan and MUFG administered receivables purchase programs. The business model relies on long-term contractual relationships with organizations requiring scalable workforce solutions and ongoing administrative support for contingent labor.