Abacus Life Q1 2025 Earnings Report

Abacus Life EPS Results

• Actual EPS: $0.18
• Consensus EPS: $0.16
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

Abacus Life Revenue Results

• Actual Revenue: $44.14 million
• Expected Revenue: $39.51 million
• Beat/Miss: Beat by +$4.63 million
• YoY Revenue Growth: N/A

Abacus Life Announcement Details

• Quarter: Q1 2025
• Date: 5/8/2025
• Time: After Market Closes
• Conference Call Date: Thursday, May 8, 2025
• Conference Call Time: 5:00PM ET

Abacus Life (NASDAQ:ABL) operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.

Abacus Life Q1 2025 Earnings Call Transcript

Key Takeaways

• Abacus reported a record first quarter with total revenue doubling YOY to $44.1 M, adjusted net income rising to $17.3 M, and adjusted EBITDA reaching $24.5 M, driven by strong demand for policyholder liquidity.
• The company’s unique two-sided model continues to gain traction, with new private fund offerings attracting $123 M in capital in their first month and its real assets ETF achieving $44 M in net inflows.
• Abacus maintains a strong balance sheet with $43.8 M in cash and $448.1 M in balance sheet policy assets, deploying $124.9 M in capital in Q1 and recycling funds through policy sales and asset management.
• The recent rebrand to Abacus Global Management highlights four complementary verticals—Life Solutions, Asset Group, Wealth Advisors, and ABL Tech—with ABL Tech now servicing nearly 1 million lives and expanding its client base.
• The company reaffirmed its full-year 2025 outlook of $70 M–$78 M in adjusted net income, implying 51%–68% growth, and expressed confidence in navigating market volatility.

Presentation

[Operator]

Greetings, and welcome to the Abacus Global Management First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Robert Phillips. Thank you. You may begin.

[Robert Phillips, SVP - Investor Relations & Corporate Affairs at Abacus Global Management, Inc]

Thank you, operator, and thank you, everyone, for joining Abacus Global Management's first quarter twenty twenty five earnings call. Here with me today are Jay Jackson, Chairman and Chief Executive Officer and Bill McCauley, Chief Financial Officer. This afternoon at 04:15 p. M. Eastern Time, Abacus Global Management released its first quarter twenty twenty five results.

[Robert Phillips, SVP - Investor Relations & Corporate Affairs at Abacus Global Management, Inc]

This afternoon's call will allow participants to ask questions about our results. Before we begin, Abacus Global Management refers participants on this call to the investor webpage, ir.abacusgm.com, for the press release, the investor information and filings with the SEC for a discussion of the risks that can affect the business. Abacus Global Management specifically refers participants to the presentation furnished today on Form eight ks with the Securities and Exchange Commission and to remind listeners that some of the comments today may contain forward looking statements and as such will be subject to risks and uncertainties, which, if they materialize, could materially affect results. For more information on the risks, uncertainties and assumptions relating to forward looking statements, please refer to Advocates Global Management's public filings. During the call, we will reference certain non GAAP financial measures.

[Robert Phillips, SVP - Investor Relations & Corporate Affairs at Abacus Global Management, Inc]

Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under U. S. Generally Accepted Accounting Principles, or GAAP. Please see our public filings for additional information regarding our non GAAP financial measures, including references to comparable GAAP measures. With that, I'd now like to turn the call over to Jay Jackson, Chief Executive Officer.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Thanks, Rob. And thank you to everyone joining us today for your interest in Abacus Global Management. And welcome to our first quarter twenty twenty five earnings call. After Bill and I conclude our prepared remarks, we'll open it up to your questions. We are pleased to kick off the New Year with a record first quarter of profitable growth, while continuing to execute our strategic initiatives to scale and diversify our business.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

For the first quarter of twenty twenty five, we more than doubled total revenue year over year to $44,100,000 and recorded strong adjusted earnings, more than doubling adjusted net income to $17,300,000 and adjusted EBITDA to $24,500,000 year over year. Our strong performance was driven by robust demand for policyholder liquidity. Our excellent first quarter performance positions us very well to achieve our full year 2025 outlook for adjusted net income to be between $70,000,000 and $78,000,000 which implies another strong year of growth between 51% to 68%. Bill will be along shortly to discuss our first quarter financial performance in further detail. While the macro environment remains uncertain in the near term, we strongly believe Abacus remains well positioned successfully navigate through any challenges posed by the current market volatility.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Abacus' unique business model provides us with clear strategic advantages. During times of market volatility, policyholders and their financial advisors often look for different ways to access liquidity. Abacus specializes in helping clients unlock the value from their life insurance policies, driving more business opportunities. Market uncertainty also drives increased investor demand for uncorrelated alternative assets to diversify their portfolios from traditional market performance. Abacus' specialized investment products continue to attract increased interest from registered investment advisors looking for differentiated yield products for their clients.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Meanwhile, our expanded private fund offerings through our longevity funds have generated strong demand from advisors seeking alternative investment options. By serving both consumers seeking liquidity and investors pursuing uncorrelated assets, we have established a durable business model that we believe can succeed in any market cycle. Additionally, our balance sheet and liquidity position has never been stronger with cash and cash and equivalents of $43,800,000 and balance sheet policy assets of $448,100,000 as of 03/31/2025. While we continue to monitor the macro environment closely, we are poised to take advantage of any opportunities that may be caused by any market dislocations. In the first quarter, our asset management offerings continued traction with new AUM inflows of $151,000,000 due to our expanded offerings, geographic reach and the growing institutional interest of private funds that are being stood up specifically to allocate to life insurance policies.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Our expanded private fund offerings that launched in late February this year are off to a strong start with approximately $123,000,000 in new capital inflows in just the first month since launch. Further, our ETFs also saw a positive increase in asset flows in the first quarter with the real assets ETF increasing net new inflows by 44,000,000 As we highlighted on our prior call, we recently rebranded our company to Abacus Global Management to reflect our evolution and our expanded global market presence. The feedback we received and continue to receive has been extremely encouraging. To that end, in the months ahead, you will see us expand our new brand recognition, including via the launch of a new ad campaign that will focus on all of Abacus Global Management's distinct yet complementary business verticals, namely Abacus Life Solutions, which provides premium liquidity solutions for life insurance assets, helping thousands of clients maximize the value of their life insurance assets. Since 02/2004, Abacus has purchased over $10,000,000,000 in face value of life insurance policies.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Abacus Asset Group, which serves institutional investors and select private clients with specialized uncorrelated and longevity based assets and investment strategies, fixed income replacement strategies and free cash flow based investment solutions. The platform uses proprietary analytics to identify unique investment opportunities that deliver consistent results across market cycles while maintaining strict risk asset management. Abacus Wealth Advisors, which redefines wealth management through our twenty plus years of proprietary data and algorithms that create truly customized financial plans based on health, longevity and overall financial well-being. And ABL Tech, which leverages our decades of experience in proprietary data to revolutionize the life planning industry through innovative technology solutions, serving pensions, insurance companies and asset managers. The division has developed platforms that conduct real time mortality verifications, locate missing participants and service the secondary life insurance market with unprecedented speed and accuracy.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Looking ahead, we are building on our momentum as our growing brand recognition is leading to greater policy originations, increased interest in our asset management offerings and our expansion into wealth management. As a result, we remain well on track to achieve our full year financial targets. We remain committed to executing our growth strategy to firmly solidify Abacus as a leader in the alternative asset manager and wealth management space. Our differentiated business model, along with our offerings of uncorrelated assets position us well to successfully navigate the current uncertain environment and come out even stronger than before. With that, I'll now hand it over to our CFO, Bill McAuley, to discuss the specifics of our first quarter results.

[Bill McCauley, CFO at Abacus Global Management, Inc]

Thanks, Jay, and hello, everyone. As Jay mentioned, we had another strong quarter of top line growth and profitability. Total revenue in the first quarter twenty twenty five more than doubled to $44,100,000 compared to twenty one point five million dollars in the prior year period. Our revenue increase was primarily driven by greater life solutions, formerly active management and origination revenues, as well as significant contributions from asset management fees. The key driver of our Life Solutions performance continues to be our highly efficient origination platform as capital deployed increased 128% to $124,900,000 in Q1 twenty twenty five compared to $54,600,000 in the prior year.

[Bill McCauley, CFO at Abacus Global Management, Inc]

With the growth in policy origination and capital deployment, as of 03/31/2025, Abacus holds seven fifty three insurance policies with a value of $448,100,000 on the balance sheet. We're very excited about the contributions from the asset management business as this is the first full quarter of asset management fees from our acquisitions that closed in late twenty twenty four. Q1 '20 '20 '5 had $7,800,000 in revenue in that business segment. Turning to expenses, total operating expenses excluding unrealized and realized gains and losses on investments and the change in fair value of debt for the first quarter twenty twenty five were approximately $19,600,000 compared to $15,000,000 in the prior year. The increase from the prior year period was primarily due to the incorporation of operating expenses of the companies that were acquired in Q4 twenty twenty four, greater depreciation and amortization, and higher investments in SG and A and marketing to support our growth profile.

[Bill McCauley, CFO at Abacus Global Management, Inc]

The company typically realizes the benefit of marketing spend within ninety to one hundred and twenty days. On an adjusted basis, excluding non cash stock compensation, business acquisition costs, amortization and change in fair value of warrant liability, adjusted net income for the first quarter of twenty twenty five more than doubled to $17,300,000 compared to $6,700,000 in the prior year, which represents a 158% increase over the prior year. Adjusted EBITDA for the quarter also more than doubled to $24,500,000 compared to $11,600,000 in the prior year. Adjusted EBITDA margin was 55.6% for the quarter compared to 53.9% in the prior year. GAAP net income attributable to stockholders for the quarter was $4,600,000 compared to a GAAP net loss of $1,300,000 in the prior year, primarily driven by higher revenues, partially offset by increased operating costs from our acquisitions.

[Bill McCauley, CFO at Abacus Global Management, Inc]

Now turning to our balance sheet metrics. For the first quarter twenty twenty five, annualized adjusted return on equity was 16%, and annualized adjusted return on invested capital was 16.7%, both reflecting our highly profitable business model. As of 03/31/2025, the company had cash and cash equivalents of $43,800,000 balance sheet policy assets of $448,100,000 and outstanding long term debt of $238,000,000 As Jay mentioned in his remarks, despite current market volatility, we remain confident in our ability to achieve our full year 2025 outlook for adjusted net income to be between $70,000,000 and 78,000,000 The range implies growth of between 51% to 68% compared to full year 2024 adjusted net income of $46,500,000 In summary, we are off to a strong start to the year as we delivered record growth on our top line as well as significantly growing profitability on an adjusted basis. We expect to maintain our momentum and execute our growth plans to capture the growth opportunities ahead of us. I will now turn it back to our CEO, Jay Jackson, for our closing comments.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Thanks, Bill. In conclusion, our record first quarter performance further validates our resilient and differentiated business model. We are well positioned to successfully navigate the current uncertainty as we deliver on our unique value proposition to policyholders and investors seeking uncorrelated assets. We remain very excited about the vast market opportunity in front of us and we're committed to building on our two decade track record of financial success to deliver long term profitable growth. Again, thank you all for joining us today, and we appreciate your interest in Abacus Global Management. With that, we look forward to your questions.

[Operator]

Thank you. We will now be conducting a question and answer session. You. The first question we have is from Patrick David of Autonomous Research. Please go ahead.

[Patrick Davitt, Partner at Autonomous Research]

Good evening, everyone. If theoretically, there's an argument for policyholders to potentially be looking for more liquidity in uncertain times. So be curious to hear your thoughts on or any noticeable uptick in inquiries since Liberation Day.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Hey, Yeah, it's interesting. The answer is, is it that yes, we have seen noticeable upticks related to interest.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

What's interesting is, is it how do we correlate that then with the amount of advertising that we're already doing? I think the way that we're starting to see that is that the advertising that we're doing is potentially having a larger impact with the potential, I would argue, uncertainty that's been developing in our markets post Liberation Day. So we've seen a positive impact from the position of increase interest. And as we've talked about in the past, other side of this is that we've certainly seen a very significant interest from investors seeking a less correlated asset. These assets are traditionally from an origination point of view.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

We're one of the few places that they can get these assets in. And so, in the launch of our funds, and we had added two additional follow on offerings in mid February or late February, and just that short amount of time you saw in the release, we were able to raise from investors one hundred and twenty three million, which was certainly impressive from our perspective, considering that was even before Liberation Day. So I think that just investors in general are certainly seeking this kind of uncorrelated yield that we've talked about in the past. And in addition to that, we have seen certainly a rise in inquiries from policyholders who are interested in learning more about what the market value of the policy might be.

[Patrick Davitt, Partner at Autonomous Research]

Great.

[Patrick Davitt, Partner at Autonomous Research]

Thanks. And then as a follow-up on new repurchase authorization, how do you think about using that to take advantage of the low stock valuation versus not wanting the stock to be more liquid?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Yeah, we when we looked at that, it's from a repurchase option. Obviously, if you kind of look at the numbers, the way that we positioned it over an eighteen month time period, it wasn't a significant amount of our very large amount of total dollars. But what we were optically looking at was when we went to the board to have that discussion was that post kind of tariff conversations, the overall market had sold off quite significantly.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And the fact that we looked at was based on evaluation basis was our stock significantly more discounted than what we felt like we had on ROE against policies that we were acquiring. And when the math falls in the favor that the stock appears like it was at a higher discount than what we might receive on an ROE. It made sense to consider what that plan looked like. I think that it was a very thoughtful decision on our end and we think that it was successful and continues to be a successful plan. Now, as we're seeing some results, and we continue to see the performance of the stock, certainly that math equation starts to flip, but it always comes down to it has to be more accretive than the asset we're buying.

[Patrick Davitt, Partner at Autonomous Research]

Thank you.

[Operator]

The next question we have is from Crispin Love of Piper Sandler. Please go ahead.

[Crispin Love, Director at Piper Sandler Companies]

Thank you and good afternoon everyone. You deployed nearly $125,000,000 in the first quarter, which I think has to be a record. Following capital raise and debt rates late last year. Would you consider advocacy fully deployed today? Then as you recycle capital, what do you think a run rate level could be for capital deployed in the coming quarters?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. We certainly built into this and you're correct. This was a higher level of capital deployment, particularly in a Q1 than we had seen historically. And a lot of that's driven to a couple of factors. Certainly, our origination efforts are certainly coming into play here where we're able to deploy capital in a very successful way.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

But in addition to that, with the increased investor demand for the asset, what we're seeing is that we're also able put those policies either back into market or into other investment products that then frees up more capital on the balance sheet to continue to purchase policy. So I think that we're very much in a very strong position here that as we look into '25, and we think about how we either recycle capital or continue to add capital to the balance sheet, specifically through policy sales, or any other activity that we may be able to take advantage of. We're just in a really good spot right now. And I think that that trend will continue when we looked at our guidance for this year. There's a reason why we didn't make any adjustments to it just because I think we're well positioned from a cash perspective.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Yes, we put a lot of money to work in Q1, but we still have forty three, forty four million dollars of cash on the balance sheet to put to work. And plus the success of the capital raise in the longevity funds for Q1 gives us a lot of flexibility and puts us in a really strong position for the rest of the year.

[Crispin Love, Director at Piper Sandler Companies]

Great. Thanks, Jay. And then just second question from me. Can you share some of your latest thoughts on carrier buyback program? Was it active in the first quarter?

[Crispin Love, Director at Piper Sandler Companies]

And then what are opportunities for potentially new relationships through 2025?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. Yes, we still saw activity in Q1. We noted some of that activity that activity can be a little bit chunky in a sense of, depending on the size of the transaction and kind of whether they're looking at a larger block or individuals. But what we're seeing is that this is continuing to evolve in different types of structures and strategies. And we're continuing to engage with and have conversations with both carriers and reinsurers where this is suitable for them.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And as this kind of concept continues to grow, we think as we look into 2025 that the carrier buyback program or the policy buyback program will only continue. And the other way that we're looking at this as well is that there's also such investor demand for the asset to be quite frank, the carriers themselves are potentially having more competition for the asset than they've had in the past.

[Crispin Love, Director at Piper Sandler Companies]

Great. Thank you. Jay. I appreciate you taking the questions.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure.

[Operator]

The next question we have is from Randy of B. Riley. Please go ahead.

[Randy Binner, Managing Director at B.Riley Securities]

Hey, good evening. Thanks. I guess I just I have a couple of follow ups to the prior questions. I guess on just on your kind of carrier buyback, more I think kind of a broader relationship with insurers and reinsurers, Jay, as you said. I think you said it was engaged in the quarter, was that the kind of a notable item in Life Solutions?

[Randy Binner, Managing Director at B.Riley Securities]

Is there a way to kind of quantify that versus third parties?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. The way that we look at the carrier program versus selling the policies outright is that from our perspective, it's important that obviously that area will continue to grow. But beyond that, we're looking at this from who can pay the most for the contract. And so in this example, we're looking at this and we're seeing pretty strong investor demand and it's going to be a little more competitive process than it was in the past, whether it was a carrier or reinsurer. With that said, the growth potential and opportunity is significant and continues to grow as we continue conversations and add more relationships.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And the first part of your question was, I think a little bit more about how are our relationships growing with carriers and how do they stand with carriers and reinsurers? We have multiple solutions for them. It's not just the buyback. Some of the things that we're able to offer them is, for example, our mortality verification program, where we've built, I think, very competitive program there. And we're signing up, continue to sign up significant pension funds.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

You'll see in our public deck how that businesses as which will be out shortly has continued to grow. And we're adding reinsurers and carriers. So it's really interesting is that even beyond the buyback, we're growing into a service provider for them. They're looking at us for other alternative asset solutions that they might be able to invest in. So when we think about our ETF strategies and other things that we're doing, we're able to potentially source several types or several areas of revenue from the same carrier beyond just buyback.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And I think that's what I'm really absolutely thrilled about is that we are what I believe to be very good partners. Because of that partnership has evolved into other revenue opportunities.

[Randy Binner, Managing Director at B.Riley Securities]

All right. That's very helpful. I appreciate that. And then I'll jump to maybe the smallest line item, but it's interesting. Technology solutions is its own line item in this new reporting.

[Randy Binner, Managing Director at B.Riley Securities]

And so that's great. Can you give any update just like on the number of clients you have there and kind of where that is in its life cycle?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. The way that we tend to track this and you'll see this in our deck as an ongoing KPI is the number of lives, right? Because ultimately, this is a business that's charged for life. So, we're seeing that grow pretty significantly In the number of lives that we have is just under a million as it stands today, and we've got another 700 plus thousand in trial, which means that those are clients that we're in process of potentially bringing on. And so that business will continue to evolve and grow very, very quickly.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

I think that as you add larger clients, which we've done, you tend to catch by word-of-mouth through other opportunities with other large pension clients, reinsurers and even carriers. But again, what I point out about that business, which also gets me very excited, it can also be an entry point to other revenue sources for us, meaning asset management. So, now we're having asset management conversations with some of our mortality verification clients. That's why this is the first time that you're starting to see that breakout. Thank you for noticing it, where you'll see the AVL tech or the AVL technologies separated from the asset management separated from, of course, the active management.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And this is all in our overall goal to be able to show you how we're diversifying our revenue. We're growing substantially. We're meeting all of the targets that we've put out to do and we'll continue that process.

[Randy Binner, Managing Director at B.Riley Securities]

All right. Appreciate it. Thank you.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. Thanks, Randy.

[Operator]

The next question we have is from Andrew Kligerman of TD Securities. Please go ahead.

[Andrew Kligerman, Managing Director at TD Securities]

Hey, thanks a lot. Good afternoon. I guess a few follow ups as well. On the capital deployed for policy originations, 125,900,000.0, similar to the number last quarter. How should we Jay, you kind of talked a bit in-depth about it and seem very excited.

[Andrew Kligerman, Managing Director at TD Securities]

Should we see that start to come up or do you kind of want to keep it level? How do we see that playing out for the next several quarters?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. I mean, there's a couple of drivers, right? From a crystal ball basis, I'm not sure how that looks. But what I can share with you is that I think that we're starting to find consistency within our balance sheet and 125,900,000.0 in this case, kind of puts us in kind of how we're fully deployed and then we're able to recycle that capital and continue from there. As policyholder demand continues, meaning that policyholders are still seeking more liquidity and we have more policies to purchase, which we think that we'll continue to see in '25 and '26.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

We expect growth there. And when that happens, we're matching capital alongside that growth. And that's where I think that the asset management has been really important. And that's why we broke it out for you. So, as you see these numbers begin to increase, it's going to be demand driven and also investor driven.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And that's why I keep kind of bringing us back to this market that we're in today. I don't know very many companies that are as well positioned as Abacus is in 2025 for this potentially volatile markets that we're going to continue and certainly remain in for the remainder of the year.

[Andrew Kligerman, Managing Director at TD Securities]

Got it and maybe a little color on Carlisle since you've acquired it. How many months has it been on board now? How do you see assets growing within Carlyle over the next couple of years? What do you think the opportunity is there?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. We obviously think the opportunity is significant, but for a number of reasons. We did close on that transaction in the December. So now we're through May now, we're approximately six months in. But if we're talking about Q1, that would have been December and then the first quarter of twenty five is what this reporting period is.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And over that timeframe, we were quite pleased with a couple of things related to that acquisition. First is the integration. We were and have successfully begun to integrate what I think is pretty seamlessly a number of the synergies that we spoke about from servicing to valuation, etcetera. And we've seen that in our first earnings with those funds included. Secondly, they've been incredibly active out having this conversation and raising capital globally.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

The thing to remember, they're based in Luxembourg, but predominantly their assets are from investors all overseas. And so they've been traveling the world in several different locations from Asia and all over Europe, telling this story. And they've begun to have, I think, some significant success. I'll add one additional piece to this. A number of their investors are also interested in the stock.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Whereas before they might've been limited to a single discussion just on to invest in the individual funds. And now they're saying, gosh, we should maybe even add to our position or add to a larger position in not just the investment within their funds, but also an investment in the stock. So I think that is part of the compelling reasons why that asset manager, Carlyle specifically, is going to continue to have success. As we continue to tell our story, this is a synergy business that not only do we have additional revenue sources, but on top of that, the story itself has become far more streamlined and it's made it easier for investors to invest both in Abacus as well as in their funds.

[Andrew Kligerman, Managing Director at TD Securities]

Got it. And Jay, the stocks, I mean you've had a couple, you've been stringing together a bunch of very strong quarters and the stock is not reacting as one would expect. Given that do you get inquiries on M and A that companies might want to acquire you for the very reasons why these non correlated assets are attractive to investors, but maybe just some thoughts on the stock performance because your operating performance warrants a lot more upside in the stock.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Well, thank you for saying that. We believe that as well and we're going to continue to tell our story. That's what I believe is the secret to this. And one of the things you heard that we announced in this call is that, one, the rebranding is working. As you begin to tell that story and people gather better understanding of what Abacus does on not just our life solutions division, but our asset management, our technology.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And as we're taking a good look at what we can do in our upcoming wealth division, as those segments of the business continue to grow and we continue to diversify that revenue, we believe that would be reflected in the stock price. And over time, we think that that's definitely going to occur. And I would say in the short term or in the near term over the last, like, let's just say thirty days, the stocks perform quite well against the Russell two thousand, the S and P and almost every index out there. So I've actually been quite pleased the way the investors have viewed our company as the type of company that is well positioned and performs well in this type of volatile environment. So where we sit today as a stock price, I agree with you.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

There's certainly a lot of room to go. And I think that that's going to be realized, right? What I know and you've been in the market a long time, you start to string these quarters together. And ultimately what happens is that the market is incredibly efficient. And as we continue to tell our story with an efficient market over time, this stock, I think will be potentially much more what you and I both agree would be fairly valued based upon the earnings the company that we have.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

We're doing we will and will continue to do everything we can to tell this story and get this story out. But the great news for us right now in these volatile markets, gosh, shareholders and investors are looking for stories like ours. And we're going to get on the front of this and we're going to start running advertisements in relationship to this, whether that's television, etcetera, really talking about a rebranding and it's going to continue to have an impact. So thank you for that question.

[Andrew Kligerman, Managing Director at TD Securities]

Yeah. So it sounds like no urgency for any M and A. It sounds like you're going to exit continue to execute. Is that the right read?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

I think that's the yeah, we it's our job to continue to execute. What I can't control is M and A and inquiries and those kinds of things. Like, who knows what that means. Like, from our perspective, the best thing we can do for our shareholders is to continue to deliver quarters like we just did. That's what matters.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

And I think as we continue to execute all the other things will take care of themselves. And I believe that's going to happen in the near term. I think from our perspective, we're more interested in M and A on our end, meaning that are there opportunities we should be taking advantage of. Right? We've got great earnings.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

One of the things I'm most proud of is that our EBITDA margin actually increased Q4 to Q1. We're up to 55% EBITDA margin. And so from that perspective, what are some great uses of the stock that we might have in our treasury as well as the cash we have on the balance sheet, assuming that they're very, very accretive. So we're on the flip side, Andrew, I would say that we're looking at opportunities.

[Andrew Kligerman, Managing Director at TD Securities]

And one last one, to kind of get a sense of your inbound policies that you're acquiring. Jay, could you give a sense of the mix? What percent was direct to consumer versus advisors versus specialists?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Sure. And we've seen this adjust quarter to quarter. It just depends. Historically, and kind of where we saw things in the first quarter, about 40% of our flow was in direct to consumer, approximately 40% was from our financial advisor division and about 20% was from what we call our brokerage division. And that continues to stay fairly consistent.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

We will occasionally see, it depends on the quarter and the level of advertising we do. We'll see that direct to consumer increase, but between financial advisors and brokers would and then direct to consumers. Ideally, that split is we'll kind of see this fiftyfifty blend and we're basically there.

[Andrew Kligerman, Managing Director at TD Securities]

Perfect. Thanks a lot.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Awesome. Thank you, Andrew.

[Operator]

Next question we have is from Mike Grondahl of Northland Securities. Please go ahead.

[Mike Grondahl, Head of Equities & Director of Research at Northland Capital Markets]

Hey guys, thanks and congrats on a nice start. My first question, on the AUM, you mentioned a hundred and 20 3 million. Did that relate only to the private funds and then you had an additional or incremental 44,000,000 inflows on the ETF. Could you just clarify that? Did I hear that right?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Yes, so the longevity funds of the private funds brought in new assets in January, just under 123,000,000. I think it's 122.8. And then in the ETF strategies, the real asset strategy increased in AUM by about $44,000,000 which if you consider the market conditions, think some of that makes sense. And so the ETF strategies combined with what we did in the longevity fund assets that totaled I think we believe we have this in the release is around 150.

[Bill McCauley, CFO at Abacus Global Management, Inc]

Yeah, yeah, 160,000,000 in net new flows.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

It's about 160,000,000 in net net inflows are just under part of that when you look at the ETF. So we know the real assets was up 44. There were a couple of the other funds that had some lighter redemptions, but it still left them positive net inflows for the quarter. And that's when you look at total net inflows or total net inflows for the quarter was almost 160,000,000 between all the assets.

[Mike Grondahl, Head of Equities & Director of Research at Northland Capital Markets]

Got it. Great. And I see in the financials, the asset management revenue of 7,700,000.0 in the first quarter. Did you guys disclose like a consolidated AUM balance at March 31? I didn't see that, like total AUM.

[Bill McCauley, CFO at Abacus Global Management, Inc]

Yes, so that'll be in our financial supplement that'll be put out here shortly.

[Mike Grondahl, Head of Equities & Director of Research at Northland Capital Markets]

Okay, in the supplement. Okay, and then is there any updated timeline on ABL wealth, kind of the advisor strategy you're implementing there?

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Yeah, Mike, thanks for asking. And we've actually just worked through a recent name change on that from a wealth to Abacus wealth advisors. And I think we put that in the press release, but it's now being titled Abacus wealth advisors. And from an update perspective, we are still in process. I think of some pretty interesting opportunities that we look forward to sharing with you as soon as those come to fruition.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

But our target for this year is to have that continue to grow and have some significant opportunities there come to realization, potentially Q3, Q4. As we come into '26, our anticipation is that the financial advisor division will be a meaningful part of our revenue split.

[Mike Grondahl, Head of Equities & Director of Research at Northland Capital Markets]

Perfect. Perfect. Okay. Hey, thanks guys.

[Operator]

Thank you. At this stage, there are no further questions. And I would like to turn the floor back over to Jay Jackson for any closing remarks.

[Jay Jackson, Chairman & CEO at Abacus Global Management, Inc]

Thank you again to everyone for joining our call. We are absolutely thrilled after a very strong and historic first quarter for us. And what I think that I feel even better about is that we're well positioned for the remainder of 2025. We are remaining and keeping our guidance intact at $70,000,000 to $78,000,000 of adjusted net income, which is a 51 to 68% increase year over year. So as we continue our process, Abacus is well positioned as a company to continue this growth, and we look forward to speaking to you next quarter.

[Operator]

That concludes today's conference. Thank you for joining us. You may now disconnect your lines.

Participants

Executives

• Jay Jackson, Chairman & CEO

Analysts

• Robert Phillips, SVP - Investor Relations & Corporate Affairs at Abacus Global Management, Inc
• Bill McCauley, CFO at Abacus Global Management, Inc
• Patrick Davitt, Partner at Autonomous Research
• Crispin Love, Director at Piper Sandler Companies
• Randy Binner, Managing Director at B.Riley Securities
• Andrew Kligerman, Managing Director at TD Securities
• Mike Grondahl, Head of Equities & Director of Research at Northland Capital Markets