Abacus Global Management Reports First Quarter 2025 Results

2025-05-08 04:31:59

(MENAFN- GlobeNewsWire - Nasdaq) – 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 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
...
(321) 290-1198

David Jackson – Director of IR/Capital Markets
...
(321) 299-0716

Abacus Global Management Public Relations
...


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	%

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