Abacus Global Management, Inc. Q4 FY2025 earnings call

Jay Jackson mentioned that Abacus Global Management, Inc. closed the year with another exceptional quarter, the eleventh consecutive quarter of beating consensus. The company has tripled adjusted net income and adjusted EBITDA, expanded margins from 48% to 60%, and grown the asset base more than 35-fold. It initiated the full-year 2026 outlook for adjusted net income of $96 million to $104 million. The business model is fundamentally differentiated with mortality-driven assets, data-driven nature insulated from AI disruption, backed by regulated A-rated insurance carriers, self-liquidating, and having uncorrelated returns. The four verticals (Abacus Life Solutions, Abacus Asset Group, data and technology, Abacus Wealth Advisors) are executing, with targets for EBITDA and AUM in the long term. Capital allocation includes share repurchases and dividends. Securitization strategy was launched in October, creating additional financing and distribution channels

Abacus Life Solutions: In 2025, the full-year deployment of capital exceeded $580 million. It collaborated with more than 78 institutional partners and over 30,000 financial advisors. Abacus Asset Group: Generated nearly $34 million in management fees in 2025, and the longevity funds attracted $630 million in capital inflows. It is expected to reach $5 billion in fee-paying AUM by the end of 2026. Data and technology (Abacus Intel): mVerify achieved 4x growth, tracking nearly 3 million lives with over 300% year-over-year increase. Abacus Wealth Advisors: Accelerated development in 2026, and enhanced the wealth management channel through the acquisition of Manning & Napier

Initiated full-year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to full-year 2025 adjusted net income of $85.7 million

Abacus Global Management, Inc. refers participants to the investor webpage ir.abacusgm.com for a discussion of the risks that can affect the business. Some comments may contain forward-looking statements subject to risks and uncertainties which could materially affect results

Q: Hi. Good afternoon, everyone. You mentioned in the deck that you expect to do another securitization in the first half, and I think you said last quarter you could have done a bigger one. So could you expand on how the investor demand side of the equation has evolved since then? And what that could mean for the size and frequency of these going forward?

A: Sure. Thank you, Patrick. The demand has continued to be there and, in fact, increase, and we are in, you know, process in Q1 of measuring that demand against building another product to put out via a securitization. And, you know, within that process, I think the demand has met or exceeded our expectations. And particularly in this market, right, one of the things we found really interesting is that with some of the recent volatility in the markets, the underlying asset that we have has actually increased in demand. But to couple that, or to go with that, it is interesting too. You know, we have seen uptick in origination as well. So as individuals may seek capital from their life insurance policies, you know, we are kind of seeing a positive response. So I think with the markets as they are today, you know, relatively around some uncertainty and some volatility, that has presented, I think, more opportunity for us to potentially do something even more sizable. We are still targeting first half versus Q1, but, you know, we feel pretty good about the outcome there.

Q: Is it fair to assume it could be bigger than the first one just based on what you said last quarter or too early to say?

A: That is yes. I think that is certainly the goal, and the target would be bigger. The first one was $50 million, and,you know, as we look forward, whether that is $100 million or larger, you know, those are some of the areas that we are targeting. And, you know, the demand is certainly there. I would add one thing as well. Whether it is in the securitization, which is great, you know, overall, I, you know, I like to point you to the fund flow. You know, if we look at, you know, the new inflows for, you know, Q4 that we reported, I mean, north of over $400 million should also give you a pretty good indication of the demand that we are seeing for the underlying asset.

Q: Thank you, operator. The next question comes from Crispin Love with Piper Sandler. Please go ahead.

Q: Thank you. Good afternoon, everyone. Appreciate taking my question. So on capital deployed, definitely a big quarter there, $230 million. I think that is 125%-plus growth versus just last quarter. And while Life Solutions revenue was strong, and, of course, it matched that growth too, can you walk through that a little bit? Did it come at a lower margin and how was that capital deployed different than past quarters? Just curious if there is any major differences.

A: Right. No. There was not anything different. Now there was some, when we look at that gross capital number, you know, there was I think it was $408 million total of gross inflows. One thing that, yeah, you are right to pick up on at least from, you know, how we break that down, there was a little over $100 million that just on the ETF side. So, you know, that would contribute to typically those ETFs have a lower management fee as well as additional recurring revenue fees just in general. And so then when we then look at just the longevity market asset, or just in general inflows, you know, those were higher than Q3. You know, I think what we saw there was that it is some of it is just allocating that capital during the quarter. Right? And so you did see that we also had some excess cash there as we were, you know, finishing out the quarter. And so I think that, you know, those will kind of couple themselves together again a little more closely as we get into, you know, Q1, Q2. But, otherwise, you know, it was really successful. We were able to put a large piece of that capital to work, effectively right away. We are meeting certainly the demand that we have with our origination, and you saw a pretty significant uptick in capital deployed as well, which we were, you know, I think one of the highlights of the quarter is when you look at the capital deployed number of over $230 million.

Q: Great. Thank you, Jay. No. That makes a lot of sense on the ETF side. And then you have talked about five-year path to $450 million adjusted EBITDA. I think you had a little over $130 million in 2025. So if I am doing the math right, I think that is compounding adjusted EBITDA about 28% per year. Can you just discuss how you expect to get there? Is that all organic? Are there acquisitions involved? And then is asset management the overwhelming driver of that growth?

A: For sure. And I am glad you asked that because, you know, one of the things we highlighted in the call here was that if you look back over the last three years and I sat back with most of our shareholders and said we expect a 3x growth top and bottom line, you probably would not have taken us very seriously. And yet here we are again looking forward three and five years out with similar aspirations. And that is why we put that illustrative target out there, and partly driven by a couple of things. One, let us not forget we do have a massive addressable market with the underlying Life Solutions business. But even beyond that, when you look at some of the key drivers there, absolutely, it is driven by asset management. It is driven by wealth management. And, you know, there is a blend of organic as well as acquisition. And when I think about the acquisition piece, you know, we highlighted a minority investment in just a terrific firm, a fifty-year firm, in Manning & Napier, where, you know, culturally, you know, we see things a lot of the same way. And that is a first entry point for us. And I think when you start to look at the synergies that we are going to, that we have with that firm already and some of the things I believe we are going to be able to do to jointly grow together, things like, you know, increasing assets under management for both parties by having both a distribution agreement and, you know, being able to monetize the lead generation that we are able to generate from our platform through Manning is incredibly exciting. And I think when you look then at the growth of our business and how we are able to achieve these growth numbers, it is what we are doing really well going forward is capitalizing on the life cycle of our clients. And we are generating significant value for them in both policy purchases and policy payouts. And now we are going to monetize that over time. And so, you know, the growth of this asset driven by our data, specifically longevity and lifespan data and how that applies to financial planning, yes, we are very excited about how that growth is going to continue. And now looking forward,我需要把上面的问答部分整理成符合要求的JSON中的question_and_answer字段内容。不过由于输入内容较长，可能需要更精准的整理，但按照要求，最终生成如下JSON：{