Abacus Global Management, Inc. Q4 FY2025 earnings call

• CEO mentioned 11 consecutive quarters of beating consensus, tripled adjusted net income and adjusted EBITDA, expanded margins from 48% to 60%, and grown asset base over 35-fold. - Business model differentiated by assets being mortality-driven, uncorrelated to macro markets, data-driven insulated from AI disruption, backed by regulated A-rated carriers, self-liquidating, and having predictable returns. - Four verticals: Life Solutions as origination engine, Asset Group as growth engine managing over $3B AUM, Intel as competitive moat with data growth, Wealth Advisors as distribution channel with Manning and Napier acquisition. - Long-term financial goals: 2028 EBITDA to $250 million with $30B AUM and 60% recurring revenue; 2030 EBITDA to $450 million with $50B AUM and 70% recurring revenue. - Capital allocation: Share repurchase programs and dividends to return capital to shareholders. - Securitization strategy: Inaugural securitization in October 2025, improving capital efficiency and scalability.

Abacus Life Solutions is the origination engine and foundation. In Q4, it deployed a record $230 million of capital, with full-year 2025 deployment over $580 million, working with 78-plus institutional partners and over 30,000 financial advisors. Abacus Asset Group manages over $3 billion in fee-paying AUM across longevity funds and ETFs, generated nearly $34 million in management fees in 2025, and expects to reach $5 billion in fee-paying AUM by year-end 2026. Abacus Intel (data and technology division) continues to grow at strong multiples, with mVerify achieving 4x growth, tracking nearly 3 million lives. Abacus Wealth Advisors is the client-facing distribution channel, with an acquisition of a minority position in Manning and Napier to enhance wealth distribution and synergies across multiple dimensions.

Abacus is initiating its full year 2026 outlook for adjusted net income of $96 million to $104 million. This range implies another year of exceptional double-digit growth, up to 22%, compared to full year 2025 adjusted net income of $85.7 million. The guidance is built on execution discipline.

• Market uncertainty could materially affect the business. - Non-GAAP financial measures have limitations as they are not recognized under GAAP. - Risks associated with securitization, such as market acceptance and structural characteristics. - Integration risks related to acquisitions, like Manning and Napier, and ensuring synergies are realized.

Q: Patrick DeWitt with Autonomous Research asked about investor demand evolution for securitization and size potential.

A: Jay Jackson said demand has continued and increased, in process in Q1 measuring demand against building another product, expecting potential for a bigger securitization than the first $50 million one, and fund flows of over $400 million in Q4 indicate demand.

Q: Crispin Love with Piper Sandler asked about capital deploy, margin, and growth path.

A: Jay Jackson said capital deploy was strong, with $230 million in Q4, some from ETF side contributing to lower fees, and growth driven by asset management, wealth management, and a blend of organic and acquisition.

Q: Andrew Kogerman with TD Cohen asked about equity issuance and acquisition pipeline.

A: Jay Jackson said the company is insider owned, valuation is undervalued, no immediate intent to issue equity, and there is a pipeline of potential acquisitions with synergies.

Q: Timothy D'Agostino with V-Rally Securities asked about Abacus Intel value and AUM guidance.

A: Jay Jackson said Abacus Intel provides valuable mortality verification data to pension funds, insurance companies, etc., and the increase in AUM guidance for 2026 is due to visible demand and new products.

Q: Mike Grondahl with Northland Securities asked about capital deploy and Manning and Napier.

A: Jay Jackson said $230 million in Q4 deploy included the $50 million securitization, and the acquisition of Manning and Napier complements the wealth advisor strategy and feeds multiple other areas.