0001628280-26-017775
SEC filingRevenue surged 110% YoY to $235M driven by Life Solutions and Asset Management acquisitions; net income swung to $36.5M from -$24M.
Abacus Global Management, Inc. (NYSE: ABX) describes itself as a leading financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. Originally formed as a blank check company (East Resources Acquisition Company), it completed a business combination in June 2023 with Abacus Settlements and Longevity Market Assets, and subsequently changed its name to Abacus Life, Inc. before adopting its current name in February 2025. The Company has expanded through acquisitions: Carlisle (Luxembourg-based asset manager) and FCF Advisors (New York-based asset manager) in December 2024, and AccuQuote (online life insurance brokerage) in October 2025. As of end of 2025, assets under management reached approximately $3.33 billion. The Company transferred its listing from Nasdaq to NYSE on December 30, 2025.
The Company operates through four distinct divisions: Abacus Life Solutions – the core life settlements business, including policy origination, active portfolio management (trade or hold), and third-party portfolio servicing; Abacus Asset Group – manages alternative investment funds and ETFs for institutional and private clients, and launched an asset-based finance strategy in January 2026 targeting $20 trillion market; Abacus Intel – technology solutions for real-time mortality verification, missing participant location, and life insurance market analysis; Abacus Wealth Advisors – data-driven wealth management for financial advisors. Revenue share by segment was not disclosed.
The Company has developed several proprietary technology platforms. The Risk Rating Heat Map measures life insurance contract risk on a 1-5 scale using factors like duration, face value, carrier rating, and life expectancy. The Policy Value Calculator provides instant policy valuations for individuals and advisors. Abacus Analytics serves as a standard pricing and valuation platform. Abacusmarketplace.com is a tertiary trading, servicing, and valuation platform. The Company holds federal trademark registrations for "Abacus Settlements," "Abacus Life," and "Abacus Global Management."
Abacus sources policies through three origination channels: (i) a network of ~30,000 financial advisors and agents (largest channel), (ii) direct-to-consumer via radio/TV ads and the Policy Value Calculator, and (iii) traditional life settlements intermediaries. The AccuQuote acquisition adds a digital insurance marketplace for comparing quotes from multiple carriers. No customer concentration was disclosed. The Company operates in 49 states for life settlements and has a limited broker-dealer for variable/fractionalized policies.
The Company faces competition from numerous life insurance settlement originators, servicers, and investors, alternative asset managers, wealth advisors, and mortality verification companies. Competition is high especially in life settlement origination, with competitors investing significantly in marketing and acquisitions. Few firms compete across all of Abacus's business segments.
Key strategic pillars include: growing origination through expanded marketing and acquisitions (e.g., AccuQuote); continued technology innovation in analytics, liquidity, and risk assessment; leveraging capital market access (NYSE listing, Russell inclusion) to lower cost of capital; transitioning toward a larger hold portfolio with securitization (first $50 million note in October 2025); and scaling asset management fee-related earnings through acquired platforms and new strategies like asset-based finance. The Board approved a $0.20 annual dividend and a $10 million share repurchase program in November 2025.
As of December 31, 2025, the Company had 326 employees, 25 of whom are based outside the United States. None are covered by collective bargaining agreements or union representation. Nearly 80% of employees are shareholders, reflecting an ownership culture.
In 2025, Abacus Global Management reported total revenue of $235.2 million, a 110% increase from $111.9 million in 2024. The surge was primarily driven by the Life Solutions segment (+85.3%) and Asset Management segment (+836.6%), reflecting the full-year impact of acquisitions completed in December 2024 (Carlisle and FCF). Gross profit rose 105% to $206.4 million, though gross margin contracted slightly from 89.8% to 87.7% due to higher cost of revenue from retrocession fees and compensation. Operating income swung from a loss of $(0.9) million to a gain of $88.8 million, yielding an operating margin of 37.7% (vs. -0.8% prior). Net income attributable to common stockholders was $36.5 million, compared to a net loss of $(24.0) million in 2024. Adjusted EBITDA increased 115% to $132.6 million, with margin improving to 56.0% from 55.0%, supported by revenue scale and cost discipline.
Life Solutions, the largest segment, generated $200.7 million in revenue (85% of total), with gross profit of $187.8 million (margin 93.6%). Revenue growth came from realized gains on policy sales (average gain 32.5% vs. 24.9% prior) and new insurance commissions from the NIB and AccuQuote acquisitions. Policies sold rose 127% to 1,059, while policies bought increased 30% to 1,188. Asset Management revenue reached $33.8 million, with gross profit of $20.0 million (margin 59.1%). The segment benefited from $26.4 million in management fees from the Carlisle Funds and $4.0 million from ETF Funds. Average management fees declined slightly (Longevity Funds: 1.36% vs. 1.60%; ETF Funds: 0.49% vs. 0.65%) due to product mix. Technology Services, still nascent, grew to $0.7 million but remained gross-loss negative at $(1.4) million as it scales customer adoption.
Management did not provide explicit financial guidance but highlighted several strategic priorities: continued expansion in life settlement origination, leveraging proprietary risk analytics to improve realized gains, and scaling the Technology Services division. The company ended the year with $38.1 million in cash and $3.6 billion in assets under management (up from $2.6 billion). Capital allocation includes up to $4.2 million remaining for share repurchases. The MD&A emphasizes that the company expects current liquidity to support operating and debt service needs for the next 12 months. Key risks include interest rate sensitivity, regulatory changes, and the integration of acquired businesses, though the overall tone reflects confidence in the business model's scalability and uncorrelated asset appeal.
As of December 31, 2025, Abacus Global Management held $38.1M in cash and equivalents, down from $131.9M a year earlier, reflecting heavy investing and financing outflows. Total assets reached $902.2M, led by life settlement policies at fair value ($468.9M) and goodwill ($252.8M). Stockholders' equity was $418.5M, slightly down from $423.3M due to share repurchases and dividends. Total debt rose to $405.8M, including $114.4M of current portion at fair value, primarily from consolidated VIEs that may be redeemed in early 2026. The current ratio stood at 0.47x, indicating near-term liquidity risk, though management expressed confidence in cash and policy sales to meet obligations.
Material purchase commitments are limited. The company disclosed only $0.1M in estimated future premiums for life settlement policies held under the investment method. The Strategic Services and Expenses Support Agreement expired at end of 2025, with no renewal. Contingencies are minimal; no material legal proceedings were noted.
Share repurchases accelerated to $43.8M (6.4M shares) in 2025, compared to $10.7M in 2024. Common dividends of $19.6M were initiated, plus $0.4M on Series A preferred. Net debt issuance of approximately $25M (from $76M gross issuance and $52.4M repayments) funded operations and acquisitions. Capital expenditures were minimal at $0.9M (0.4% of revenue), reflecting an asset-light model.
Three reportable segments: Asset Management, Life Solutions, and Technology Services. Life Solutions contributed 85% of total revenue and 91% of gross profit, with gross margin of 93.6% from fair value gains on policies. Asset Management revenue surged 837% YoY to $33.8M due to the Carlisle acquisition, with a 59.1% gross margin. Technology Services remained immaterial and loss-making. Geographically, 86% of revenue originated in the United States, 13% in Luxembourg (Carlisle), and 1% elsewhere.
The most fundamental risk is the uncertainty in valuing life insurance policies. The company relies on subjective life expectancy estimates from medical underwriters, which can vary widely. Any inaccuracy in forecasting mortality—whether from flawed initial data or future improvements in healthcare—directly impacts investment returns. The company acknowledges that actual maturities could be significantly longer than projected, delaying returns and potentially causing underperformance.
A key regulatory risk is the potential classification of life settlements as securities under federal law. The 5th Circuit's decision in Living Benefits (2019) already deems whole life policies as securities for Investment Company Act purposes; if extended, the company would face registration, disclosure, and operational restrictions. Additionally, challenges to insurable interest (STOLI) could lead to policy invalidation. The company operates in 49 states and faces varying licensing and privacy laws (including GLBA, HIPAA, GDPR), with costly compliance burdens.
The supply of eligible life insurance policies is limited and competition from insurers and investment funds is intense. Negative public perception of life settlements could further impair liquidity. Operational failures—such as inaccurate tracking of premiums or data breaches—could cause policy lapses or reputational harm. The company also faces fraud risk, where misrepresentations in policy origination survive contestability periods.
As of December 2025, the company had ~$406M in debt, including a senior secured credit facility maturing in 2030. Restrictive covenants limit financial flexibility. The company’s ability to raise capital on acceptable terms is uncertain, and reliance on debt could reduce cash flow for investments. Additionally, credit risk from insurers is mitigated only partially by state guaranty funds, which cap at $300,000 per policy.
Key person dependence is notable: success relies on retaining experienced management. International operations (e.g., EU subsidiary regulated by CSSF under AIFM Directive) introduce currency risk and regulatory complexity. Macroeconomic events (pandemics, geopolitical tensions) can disrupt policy sourcing. The company’s stock repurchase program may not enhance value and could reduce cash reserves.
The provided document excerpt does not contain the cash flow statement figures. Only the balance sheet and audit report are included.