– First Quarter 2025 Total Revenue More Than Doubled Year-over-Year to $44.1 Million –
– Longevity Funds Attracted $122.8 Million in Capital Inflows –
– GAAP Net Income of $4.6 Million –
– Adjusted Net Income Grew 158% Year-over-Year to $17.3 Million –
– Adjusted EBITDA More Than Doubled Year-over-Year to $24.5 Million –
ORLANDO, Fla., May 08, 2025 (GLOBE NEWSWIRE) — Abacus Global Management, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a leader in the alternative asset management space, today reported results for the first quarter ended March 31, 2025.
“We delivered exceptional results in the first quarter of 2025, more than doubling our revenue and adjusted earnings year-over-year while strengthening our market position,” said Jay Jackson, Chief Executive Officer of Abacus. “Our unique business model continues to demonstrate its resilience and appeal in today’s uncertain market environment, serving both policyholders seeking liquidity and investors pursuing uncorrelated alternative assets. Additionally, our asset management business is gaining significant momentum, as evidenced by our newly launched funds attracting $122.8 million in capital inflows in just the first month. With our robust balance sheet, expanded product offerings, and growing brand presence, we are well-positioned to achieve our growth targets for 2025 and beyond.”
First Quarter 2025 Highlights
- Total revenue for the first quarter more than doubled to $44.1 million, compared to $21.5 million in the prior-year period. The increase was primarily driven by higher revenues from Life Solutions (formerly active management and origination), as well as a full quarter of asset management fees from the acquisitions that were completed in the fourth quarter of 2024.
- Origination capital deployment for the first quarter of 2025 was $124.9 million, compared to $54.6 million in the prior-year period; number of policies held as of the end of the first quarter of 2025 stood at 753, compared to 322 in the prior-year period.
- GAAP net income attributable to shareholders for the first quarter of 2025 was $4.6 million, compared to net loss of $1.3 million in the prior-year period. The increase was primarily driven by higher revenues, partially offset by increased operating expenses related to the acquisitions completed in the fourth quarter of 2024.
- Adjusted net income (a non-GAAP financial measure) for the first quarter of 2025 grew 158% to $17.3 million, compared to $6.7 million in the prior-year period. Adjusted diluted earnings per share for the first quarter of 2025 was $0.18, compared to $0.11 in the prior-year period.
- Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2025 more than doubled to $24.5 million, compared to $11.6 million in the prior-year period. Adjusted EBITDA margin (a non-GAAP financial measure) for the first quarter of 2025 was 55.6%, compared to 53.9% in the prior-year period.
- Annualized return on invested capital (ROIC) (a non-GAAP financial measure) for the first quarter of 2025 was 16.7%.
- Annualized Return on equity (ROE) (a non-GAAP financial measure) for the first quarter of 2025 was 16.0%.
Liquidity and Capital
As of March 31, 2025, the Company had cash and cash equivalents of $43.8 million, balance sheet policy assets of $448.1 million and outstanding long-term debt of $238.0 million.
2025 Outlook
The company is maintaining its full year 2025 outlook for Adjusted net income of between $70 million and $78 million. The range implies growth of between 51% to 68% compared to full year 2024 Adjusted net income of $46.5 million.
For a definition of Adjusted net income, see “Non-GAAP Financial Information” below.
Webcast and Conference Call
A webcast and conference call to discuss the Company’s results will be held today beginning at 5:00 p.m. (Eastern Time). A live webcast of the conference call will be available on Abacus’ investor relations website at ir.abacuslife.com. The dial-in number for the conference call is (877) 407-9716 (toll-free) or (201) 493-6779 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at ir.abacusgm.com for one year following the call.
Non-GAAP Financial Information
Adjusted Net Income, a non-GAAP financial measure, is defined as net income (loss) attributable to Abacus adjusted for non-controlling interest income, amortization, change in fair value of warrants and non-cash stock-based compensation and the related tax effect of those adjustments. Management believes that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. A reconciliation of Adjusted Net Income to Net income attributable to Abacus, the most directly comparable GAAP measure, appears below.
The Company is unable to provide a comparable FY 2025 outlook for, or a reconciliation to net income because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. Its inability to do so is due to the inherent difficulty in forecasting the timing of items that have not yet occurred and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities, and other one-time or exceptional items.
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to Abacus adjusted for depreciation expense, amortization, interest expense, income tax and other non-cash and certain non-recurring items that in our judgement significantly impact the period-over-period assessment of performance and operating results that do not directly relate to business performance within Abacus’ control. A reconciliation of Adjusted EBITDA to Net income attributable to Abacus Life, the most directly comparable GAAP measure, appears below.
Adjusted EBITDA margin, a non-GAAP financial measure, is defined as Adjusted EBITDA divided by Total revenues. A reconciliation of Adjusted EBITDA margin to Net income margin, the most directly comparable GAAP measure, appears below.
Annualized return on invested capital (ROIC), a non-GAAP financial measure, is defined as Adjusted net income for the quarter divided by the result of Total Assets less Intangible assets, net, Goodwill and Current Liabilities multiplied by four. ROIC is not a measure of financial performance under GAAP. We believe ROIC should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.
Annualized return on equity (ROE), a non-GAAP financial measure, is defined as Adjusted net income divided by total shareholder equity multiplied by four. ROE is not a measure of financial performance under GAAP. We believe ROE should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP. The below table presents our calculation of ROE.
Forward-Looking Statements
All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus’s financial and operational outlook; Abacus’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” “intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).
While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the fact that Abacus’s loss reserves are bases on estimates and may be inadequate to cover its actual losses; the failure to properly price Abacus’s insurance policies; the geographic concentration of Abacus’s business; the cyclical nature of Abacus’s industry; the impact of regulation on Abacus’s business; the effects of competition on Abacus’s business; the failure of Abacus’s relationships with independent agencies; the failure to meet Abacus’s investment objectives; the inability to raise capital on favorable terms or at all; the effects of acts of terrorism; and the effectiveness of Abacus’s control environment, including the identification of control deficiencies.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with the U.S. Securities and Exchange Commission from time to time, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.
About Abacus
Abacus Global Management (NASDAQ: ABL) is a leading financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. With a focus on longevity-based assets and personalized financial planning, Abacus leverages proprietary data analytics and decades of industry expertise to deliver innovative solutions that optimize financial outcomes for individuals and institutions worldwide.
Contacts:
Investor Relations
Robert F. Phillips – SVP Investor Relations and Corporate Affairs
rob@abacusgm.com
(321) 290-1198
David Jackson – Director of IR/Capital Markets
david@abacusgm.com
(321) 299-0716
Abacus Global Management Public Relations
press@abacusgm.com
| ABACUS GLOBAL MANAGEMENT, INC. CONSOLIDATED BALANCE SHEET | ||||
| March 31, 2025 (unaudited) |
December 31, 2024 |
|||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $43,761,731 | $131,944,282 | ||
| Accounts receivable | 6,251,043 | 15,785,531 | ||
| Accounts receivable, related party | 6,196,493 | 7,113,369 | ||
| Due from affiliates | 1,666,047 | 1,527,062 | ||
| Income taxes receivable | 1,946,728 | 2,099,673 | ||
| Prepaid expenses and other current assets | 1,639,257 | 1,094,729 | ||
| Total current assets | 61,461,299 | 159,564,646 | ||
| Property and equipment, net | 1,182,611 | 1,025,066 | ||
| Intangible assets, net | 75,110,105 | 79,786,793 | ||
| Goodwill | 238,296,200 | 238,296,200 | ||
| Operating right-of-use assets | 4,673,433 | 4,722,573 | ||
| Management and performance fee receivable, related party | 14,037,322 | 13,379,301 | ||
| Life settlement policies, at cost | 1,096,866 | 1,083,977 | ||
| Life settlement policies, at fair value | 446,207,963 | 370,398,447 | ||
| Available-for-sale securities, at fair value | 2,743,338 | 2,205,904 | ||
| Other investments, at cost | 9,850,000 | 1,850,000 | ||
| Other assets | 1,850,148 | 1,851,845 | ||
| TOTAL ASSETS | $856,509,285 | $874,164,752 | ||
| LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Current portion of long-term debt, at fair value | $117,094,610 | $37,430,336 | ||
| Current portion of long-term debt | 1,000,000 | 1,000,000 | ||
| Accrued expenses | 2,756,688 | 6,139,472 | ||
| Operating lease liabilities | 514,137 | 515,597 | ||
| Contract liabilities, deposits on pending settlements | 600,295 | 2,473,543 | ||
| Accrued transaction costs | — | 483,206 | ||
| Other current liabilities | 8,834,692 | 14,423,925 | ||
| Total current liabilities | 130,800,422 | 62,466,079 | ||
| Long-term debt, net | 225,065,112 | 224,742,029 | ||
| Long-term debt, at fair value | — | 105,120,100 | ||
| Long-term debt, related party | 12,905,174 | 12,525,635 | ||
| Retrocession fees payable | 5,361,714 | 5,312,214 | ||
| Operating lease liabilities | 4,460,924 | 4,580,158 | ||
| Deferred tax liability | 28,185,913 | 26,778,865 | ||
| Warrant liability | 14,151,000 | 9,345,000 | ||
| TOTAL LIABILITIES | 420,930,259 | 450,870,080 | ||
| COMMITMENTS AND CONTINGENCIES | ||||
| MEZZANINE EQUITY | ||||
| Series A convertible preferred stock, $0.0001 par value; 5,000 shares authorized; 5,000 issued and outstanding | 5,000,000 | — | ||
| STOCKHOLDERS’ EQUITY | ||||
| Preferred stock, $0.0001 par value; 1,000,000 shares authorized; — issued or outstanding | — | — | ||
| Class A common stock, $0.0001 par value; 200,000,000 authorized shares; 96,853,039 and 96,731,194 shares issued at March 31, 2025 and December 31, 2024, respectively | 10,246 | 10,133 | ||
| Treasury stock – at cost; 1,048,226 and 1,048,226 shares repurchased at March 31, 2025 and December 31, 2024, respectively | (12,025,137) | (12,025,137) | ||
| Additional paid-in capital | 495,949,331 | 494,064,113 | ||
| Accumulated deficit | (53,242,325) | (57,896,606) | ||
| Noncontrolling interest | (113,089) | (857,831) | ||
| Total stockholders’ equity | 430,579,026 | 423,294,672 | ||
| TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY | $856,509,285 | $874,164,752 | ||
| ABACUS GLOBAL MANAGEMENT, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||
| COMPREHENSIVE INCOME (LOSS) | ||||
| Three Months Ended | ||||
| March 31, | ||||
| 2025 | 2024 | |||
| REVENUES: | ||||
| Asset management | $7,773,077 | $217,935 | ||
| Life solutions | 36,298,657 | 21,269,249 | ||
| Technology services | 67,612 | — | ||
| Total revenues | 44,139,346 | 21,487,184 | ||
| COST OF REVENUES (excluding depreciation and amortization stated below): | ||||
| Cost of revenue (including stock-based compensation) | 7,108,407 | 2,720,212 | ||
| Related party cost of revenue | — | 685 | ||
| Total cost of revenue | 7,108,407 | 2,720,897 | ||
| GROSS PROFIT | 37,030,939 | 18,766,287 | ||
| OPERATING EXPENSES: | ||||
| Sales and marketing | 2,616,000 | 1,929,944 | ||
| General and administrative (including stock-based compensation) | 12,263,786 | 11,353,499 | ||
| Change in fair value of debt | (3,362,103) | 2,712,627 | ||
| Unrealized gain on investments | (272,254) | (1,164,966) | ||
| Depreciation and amortization expense | 4,758,546 | 1,682,054 | ||
| Total operating expenses | 16,003,975 | 16,513,158 | ||
| OPERATING INCOME | $21,026,964 | $2,253,129 | ||
| OTHER INCOME (EXPENSE): | ||||
| Change in fair value of warrant liability | (4,806,000) | 946,960 | ||
| Interest expense | (9,618,330) | (3,670,445) | ||
| Interest income | 1,175,001 | 421,426 | ||
| Other expense | (44,524) | (53,028) | ||
| Total other (expense) | (13,293,853) | (2,355,087) | ||
| Net income (loss) before provision for income taxes | 7,733,111 | (101,958) | ||
| Income tax expense | 2,334,085 | 1,173,513 | ||
| NET INCOME (LOSS) | 5,399,026 | (1,275,471) | ||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 759,443 | 73,274 | ||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $4,639,583 | ($1,348,745) | ||
| EARNINGS (LOSS) PER SHARE: | ||||
| Earnings (loss) per share – basic | $0.05 | ($0.02) | ||
| Earnings (loss) per share – diluted | $0.05 | ($0.02) | ||
| Weighted-average stock outstanding—basic | 96,193,199 | 63,027,246 | ||
| Weighted-average stock outstanding—diluted | 97,498,923 | 63,027,246 | ||
| NET (LOSS) INCOME | 5,399,026 | (1,275,471) | ||
| Other comprehensive income (loss), net of tax or tax benefit: | ||||
| Change in fair value of debt (risk adjusted) | — | 7,436 | ||
| Comprehensive (loss) income before non-controlling interests | 5,399,026 | (1,268,035) | ||
| Net and comprehensive income (loss) attributable to non-controlling interests | 759,443 | 68,760 | ||
| COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $4,639,583 | ($1,336,795) | ||
| ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED NET INCOME | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 4,639,583 | $ | (1,348,745) | ||
| Net income (loss) attributable to noncontrolling interests | 759,443 | 73,274 | ||||
| Stock based compensation | 2,355,395 | 6,093,371 | ||||
| Amortization expense | 4,691,720 | 1,667,109 | ||||
| Change in fair value of warrant liability | 4,806,000 | (946,960) | ||||
| Tax impact [1] | — | 1,165,902 | ||||
| ADJUSTED NET INCOME | $ | 17,252,141 | $ | 6,703,951 | ||
| [1] Tax impact represents the permanent difference in tax expense related to the restricted stock awards granted to certain executives due to IRC 162(m) limitations. | ||||||
| ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED EBITDA | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| NET INCOME (LOSS) | $ | 5,399,026 | $ | (1,275,471) | ||
| Depreciation and amortization expense | 4,758,546 | 1,682,054 | ||||
| Income tax expense | 2,334,085 | 1,173,513 | ||||
| Interest expense | 9,618,330 | 3,670,445 | ||||
| Other expense | 44,524 | 53,028 | ||||
| Interest income | (1,175,001) | (421,426) | ||||
| Change in fair value of warrant liability | 4,806,000 | (946,960) | ||||
| Stock based compensation | 2,355,395 | 6,093,371 | ||||
| Unrealized gain on investments | (272,254) | (1,164,966) | ||||
| Change in fair value of debt | (3,362,103) | 2,712,627 | ||||
| ADJUSTED EBITDA | $ | 24,506,548 | $ | 11,576,215 | ||
| Adjusted EBITDA margin | 55.50% | 53.90% | ||||
| Net Income (Loss) margin | 12.20% | -5.90% | ||||
| ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED RETURN ON INVESTED CAPITAL (ROIC) |
||||||||
| For the Period Ended |
For the Period Ended |
|||||||
| March 31, 2025 |
March 31, 2024 |
|||||||
| Total Assets | $ | 856,509,285 | $ | 376,719,400 | ||||
| Less: | ||||||||
| Intangible assets, net | (75,110,105 | ) | (28,048,028 | ) | ||||
| Goodwill | (238,296,200 | ) | (140,287,000 | ) | ||||
| Current Liabilities | (130,800,422 | ) | (23,835,352 | ) | ||||
| Total Invested Capital | $ | 412,302,558 | $ | 184,549,020 | ||||
| Adjusted Net income | $ | 17,252,141 | $ | 6,703,951 | ||||
| Adjusted Annualized ROIC | 16.7 | % | 14.5 | % | ||||
| ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED RETURN ON EQUITY (ROE) |
||||||||
| For the Period Ended |
For the Period Ended |
|||||||
| March 31, 2025 |
March 31, 2024 |
|||||||
| Total Shareholder Equity | $ | 430,579,026 | $ | 165,340,772 | ||||
| Adjusted Net income | $ | 17,252,141 | $ | 6,703,951 | ||||
| Adjusted Annualized ROE | 16.0 | % | 16.2 | % | ||||
