0001628280-25-050614
SEC filingRevenue surged 124% YoY in Q3 2025, driven by acquisitions and life solutions expansion, turning net income positive.
For the three months ended September 30, 2025, Abacus Global Management reported total revenue of $62,975,156, a 123.7% increase from $28,148,491 in the same period of 2024. The surge was predominantly fueled by the asset management and life solutions segments. Gross profit rose 113.1% to $55,319,458, although gross margin contracted from 92.2% to 87.8% due to higher cost of revenue, including retrocession fees. Operating income jumped 227.2% to $22,413,178, reflecting operating leverage despite increased expenses. Net income attributable to Abacus turned positive at $7,075,348 compared to a loss of $5,125,055 in the prior year, driven by revenue growth and a reduction in non-recurring losses.
Asset Management revenue skyrocketed to $8,633,803 from $116,386, a 7318.2% increase, primarily due to the Carlisle and FCF acquisitions completed in December 2024. Cost of revenue also rose, but gross profit shifted to $4,290,884 from a loss of $285,107. Assets under management reached $2.91 billion as of September 30, 2025, with significant inflows in both Longevity and ETF funds. Life Solutions revenue grew 93.1% to $54,122,577, driven by a $26.1 million increase in realized gains from policy sales. The average realized gain per policy sold improved from 19.0% to 36.6%, reflecting stronger institutional demand. Gross profit rose 96.5% to $51,583,638. Technology Services contributed $218,776 in revenue, a new segment from December 2024, but recorded a gross loss of $555,064 due to startup costs.
Management believes current cash and cash equivalents of $86.4 million are sufficient to support operations and debt service for the next 12 months. The company's capital base was strengthened by a $90.0 million equity raise in November 2024 and a $100.0 million debt facility in December 2024. No specific financial guidance was provided, but the continued expansion in life solutions and asset management, along with the recent share repurchase programs totaling $50 million, indicate a focus on growth and shareholder returns. The company remains exposed to risks such as interest rates and competition, as detailed in the Risk Factors section.
As of September 30, 2025, cash and equivalents stood at $86.4M, down 34% from $131.9M at year-end 2024, primarily due to operating cash outflows of $18.2M and investing activities of $14.0M. The company held $423.8M in life settlement policies at fair value, which serve as collateral for secured borrowings. Total debt increased to $409.3M from $380.8M at December 31, 2024, reflecting net borrowings of $28.5M. The debt-to-equity ratio remained manageable at 0.94x. Shareholders' equity grew to $434.6M, supported by comprehensive income of $29.3M year-to-date.
Purchase commitments are limited: a $500,000 obligation to fund a convertible promissory note and a Strategic Services and Expenses Support Agreement that expires at year-end 2025. Future premiums on investment-method life policies total $120,513 through 2028, but these are not contractual purchase commitments. No material off-balance-sheet obligations were disclosed.
During the nine months ended September 30, 2025, the company aggressively repurchased 5.7M shares for $38.2M, exhausting the $50M authorization. A new $10M buyback program was authorized on November 6, 2025. Dividends on Series A preferred stock totaled $187,500 year-to-date; a $0.20 per share annual common dividend was declared post-period. Net debt issuance of $28.5M funded operations and acquisitions. Capital expenditures were modest at $0.8M, primarily for computer equipment.
The company reports three segments: Asset Management, Life Solutions, and Technology Services. In Q3 2025, Life Solutions contributed 86% of total revenue and 93% of gross profit. The new Technology Services segment posted a negative gross profit. Geographically, 87% of revenue originated in the US, 12% in Luxembourg, and 1% in other regions. Related-party transactions with Carlisle funds and LP funds drove a significant portion of Asset Management and Life Solutions revenue.