10-K: Abacus Global Management Posts Strong Profit Turnaround

Abacus Global Management, Inc. reported a significant financial turnaround in 2025, achieving substantial net income and revenue growth across its key segments, driven by strategic acquisitions and expanded asset management.

Summary

• Abacus Global Management, Inc. (formerly Abacus Life, Inc.) reported a net income attributable to the company of $36,525,269 for the year ended December 31, 2025, a significant improvement from a net loss of $(23,961,050) in 2024.
• Total revenues increased by 110.18% to $235,237,636 in 2025, up from $111,923,786 in 2024.
• Gross profit surged by 105.2% to $206,379,602 in 2025, compared to $100,552,053 in the prior year.
• Adjusted EBITDA grew by 115.2% to $132,553,833 in 2025, with an Adjusted EBITDA Margin of 56.0%.
• Assets Under Management (AUM) for fee-paying funds increased to $3.28 billion by December 31, 2025, from $2.59 billion at the end of 2024, with total AUM reaching $3.56 billion.
• The company completed several strategic acquisitions in 2024 and 2025, including Carlisle Management Company S.C.A., FCF Advisors, LLC, National Insurance Brokerage, LLC (NIB), and AccuQuote, expanding its asset management, life solutions, and technology services.
• A $0.20 per share annual cash dividend was approved on November 7, 2025, and paid in December 2025, with intentions to continue comparable annual dividends.
• The company initiated a $10 million share repurchase program in November 2025, with $4,191,405 remaining available as of December 31, 2025.
• Net cash used in operating activities significantly decreased to $(25,680,465) in 2025 from $(208,810,444) in 2024, indicating improved operational cash flow efficiency.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as a highly positive filing, reflecting a strong financial turnaround, significant revenue and AUM growth, successful strategic acquisitions, and a clear path for future expansion and shareholder returns, despite increased debt and decreased cash.

Positives

• Achieved a substantial net income of $36.5 million in 2025, reversing a $24.0 million loss in 2024.
• Total revenues more than doubled, growing by 110.18% to $235.2 million in 2025.
• Asset Management revenue saw an exceptional increase of 836.6% to $33.8 million, largely due to strategic acquisitions.
• Life Solutions revenue grew by 85.3% to $200.7 million, driven by increased policy purchases and sales.
• Technology Services revenue experienced a significant surge of 2032.7% to $0.7 million, reflecting growth in tracked lives to 2.8 million.
• The average realized gain per policy sold improved to 32.5% in 2025 from 24.9% in 2024, indicating more favorable pricing conditions and institutional demand.
• Assets Under Management (AUM) grew to $3.56 billion by year-end 2025, demonstrating successful expansion of investment offerings.
• The company launched an asset-based finance (ABF) strategy in January 2026, targeting a large market and aiming for stable cash flows and low volatility.
• Initiated an annual cash dividend of $0.20 per share and a $10 million share repurchase program, signaling confidence in future performance and commitment to shareholder returns.
• Improved net cash used in operating activities by $183.1 million, reflecting better operational efficiency and reduced cash burn.

Negatives

• Cash and cash equivalents decreased significantly from $131.9 million in 2024 to $38.1 million in 2025.
• Total debt increased to $405.8 million in 2025 from $380.8 million in 2024.
• Net cash provided by financing activities decreased substantially from $320.1 million in 2024 to $(44.9) million in 2025, indicating less reliance on external financing but also higher repayments and repurchases.
• General and administrative expenses (including stock-based compensation) remained high at $87.8 million in 2025, despite a decrease in non-cash stock-based compensation.
• The Technology Services segment reported a gross loss of $(1,387,863) in 2025, an increase from $(199,364) in 2024, indicating it is not yet profitable at the gross level.

Risks

• Valuation of life insurance policies is uncertain, tied to actual maturity dates and life expectancies, and erroneous valuations could materially impact the business.
• Failure to accurately forecast life expectancies or general changes leading to people living longer could result in lower returns on life settlement policies.
• Policy acquisitions are limited by market availability of policies meeting eligibility criteria, and failure to secure sufficient quality policies could adversely affect the business.
• Increased competition from originating life insurance companies, brokers, and investment funds could materially impact the business.
• Negative public perception of the life settlement industry and political opposition from life insurance companies could affect investment value and liquidity.
• Risk of fraud in the origination or subsequent sales of life insurance policies could adversely affect investment returns.
• Potential claims by life insurance companies, individuals, their families, or regulatory authorities could have a material adverse impact.
• Privacy and cybersecurity risks related to maintaining proprietary and sensitive information (e.g., health data) could lead to financial loss, business disruption, or reputational damage.
• Failure to accurately and timely track and pay premium payments on held life insurance policies could result in policy lapses and investment loss.
• Life insurance companies may increase the cost of insurance premiums, adversely affecting investment returns.
• Inability to liquidate life insurance policies when needed could have a material adverse effect on the business's liquidity.
• Bearing the credit risk associated with life insurance companies, with potential for non-realization of full policy value in case of insurer failure or bankruptcy.
• Dependence on experienced management and talented employees; inability to retain them could harm competitiveness.
• Intellectual property rights may not adequately protect the company's business.
• Outstanding and future indebtedness could adversely affect financial and operational flexibility.
• Failure to maintain adequate financial, information technology, and management processes and controls could lead to material weaknesses in financial reporting.
• Ability to timely raise capital in the future may be limited or unavailable on acceptable terms, harming business and financial condition.
• Use of different estimates and assumptions in accounting policies could result in material changes to reported financial condition and results of operations.
• International operations pose additional risks, including staffing, data processing, tax changes, protectionism, government actions, geopolitical instability, and foreign currency risk.
• Litigation and other claims may arise from acquisitions, increasing expenses and disrupting operations.
• External events (e.g., high inflation, geopolitical tensions, pandemics) may disrupt the ability to originate life settlement policies.
• Life settlements, if deemed securities, would require further compliance with federal and state securities laws, increasing regulatory burdens and limiting investments.
• Potential future requirement to register as an investment company under the Investment Company Act, necessitating a substantive change in business model.
• Lawsuits questioning insurable interest in life policies could lead to unenforceability and loss of investment.
• Changes in tax laws or regulations or their interpretation could negatively impact cash flows and results of operations.
• Additional or different government regulation in the future could materially impact the business.
• Stock repurchase program may not enhance long-term stockholder value and could increase stock price volatility or diminish cash reserves.
• Board's broad discretion to issue additional securities could result in substantial dilution to stockholders.
• Issuance of additional debt securities could restrict operations and adversely affect common stock price.
• Lack of or adverse changes in research reports from securities analysts could cause stock price decline.
• Volatility in the trading price of common stock due to various factors, including operating performance, market conditions, and regulatory changes.
• Investing in common stock involves a significant degree of risk due to the speculative nature of life insurance policy investments.

Future Outlook

Abacus Global Management anticipates continued growth in the life settlements industry, projecting a 5% compounded annual growth rate for the total face value of life insurance policies from $6 billion in 2022 to $8 billion in 2028. The company plans to fuel origination growth through technology and marketing investments, expand its hold portfolio, and increase securitization activities to drive lower capital costs and higher long-term returns. The launch of the asset-based finance strategy in January 2026 is expected to further scale asset management and fee-related earnings. The company intends to continue paying comparable annual cash dividends.

Management Comments

• "Our mission is to revolutionize financial services through expert asset management and data-driven lifespan insights, leveraging advanced technology to deliver personalized solutions that optimize financial well-being across every stage of life." Jay Jackson, Chairman and Chief Executive Officer of Abacus Global Management, Inc.
• "Abacus envisions a future where financial decisions are transformed by the powerful intersection of technology, longevity data, and expert asset management. Through our four integrated verticals—Life Solutions, Asset Management, Private Wealth Management, and Health and Longevity Technology—we strive to be the premier financial partner that helps institutional investors, financial advisors, and clients harness untapped value in lifespan metrics, creating investment strategies that stand the test of time." Jay Jackson, Chairman and Chief Executive Officer of Abacus Global Management, Inc.

Industry Context

StockSavvy.ai notes that Abacus Global Management's strong performance in 2025, particularly its significant revenue and AUM growth, positions it as a leader in the expanding life settlements market. The company's strategic acquisitions of Carlisle and FCF Advisors, along with the launch of its ABF strategy, align with broader industry trends towards diversification into alternative assets and technology-driven financial solutions. The focus on longevity-based assets and data analytics provides a competitive edge in a market with high barriers to entry and increasing institutional interest. The industry's low market penetration (2% of a $224 billion annual opportunity) suggests substantial runway for growth, which Abacus is actively pursuing through education and expanded origination channels. The company's NYSE listing and inclusion in Russell indexes enhance its visibility and access to capital, a critical factor for scaling in this capital-intensive sector.

Comparison to Industry Standards

• Abacus Global Management holds approximately a 26% market share in the U.S. life settlements industry based on 2023 capital invested, indicating a leading position compared to other industry participants.
• The average realized gain per policy sold of 32.5% in 2025 (up from 24.9% in 2024) demonstrates strong returns relative to the cost basis, suggesting effective policy selection and market timing compared to general investment benchmarks.
• The company's proprietary risk-rating platform and policy value calculator provide a technological advantage in valuing and purchasing life insurance policies, differentiating it from less technologically advanced competitors.
• Over 90% of Abacus's carriers have an A Rating or better, indicating a focus on high-quality investment-grade counterparties, which is a strong standard in the insurance-backed asset space.
• The launch of an asset-based finance (ABF) strategy, targeting a $20 trillion-plus market with 65% of investments in investment-grade-like characteristics, positions Abacus to compete with diversified alternative asset managers like Blackstone or Apollo Global Management, which also deploy capital into structured credit and asset-backed investments, though Abacus's niche in insurance analytics provides a unique angle.
• The company's ability to securitize life insurance assets, as demonstrated by the $50 million investment-grade securitized note in October 2025, aligns with sophisticated financial institutions that leverage securitization for lower-cost funding and recurring fee-based revenue, similar to how large banks or specialized finance companies manage asset portfolios.

Corporate Governance

Legal Proceedings

• The company is not currently aware of any legal matters that would individually or collectively have a material adverse effect on its business, financial position, results of operations, or cash flows as of December 31, 2025.

Related Party Transactions

• Sponsor PIK Note: An unsecured loan of $14,114,199 from East Sponsor, LLC (Sponsor) to the Company, with a 12.0% annual interest rate compounding semi-annually, maturing June 30, 2028.
• Life policy sales and purchases: The Company engages in life policy sales to and purchases from the Carlisle Funds, LP Funds, and Securitized Funds, which are considered related party activities.
• Management and performance fees: The Company recognized $27,593,157 in asset management fees from related party funds (Carlisle Funds and LP Funds) in 2025.
• Servicing fees: The Company recognized $2,075,518 in servicing revenue from related parties in 2025, with a fee of $1,000 per policy per year for Carlisle Funds, $996 per policy per year for LP Funds, and 100 basis points of collateral pool value per year for the Securitized Fund.
• Related party receivables: As of December 31, 2025, the Company had $9,320,103 in current and $14,800,140 in noncurrent related party receivables, primarily from the Carlisle Funds.
• Policy acquisitions from related parties: In 2025, the Company paid $15,656,875 to acquire policies from the Carlisle Funds and $8,602,285 from the LP Funds.
• Net revenue from life policy sales to related parties: The Company recognized $37,502,458 in net revenue from life policy sales to the Carlisle, LP, and Securitization Funds in 2025.
• Nova Funds: In 2024, the Company purchased $98,400,029 in policies from Nova Trading (US), LLC and Nova Holding (US) LP (Nova Funds), but there were no purchases from these entities in 2025 as they no longer hold life policies.

Stakeholder Impact

• Shareholders: Positively impacted by the significant turnaround to net income, substantial revenue growth, initiation of an annual cash dividend, and a share repurchase program, indicating increased shareholder returns and confidence in future performance.
• Employees: The company's growth and strategic acquisitions have led to an increase in employee headcount (326 employees as of Dec 31, 2025), with nearly 80% being shareholders, fostering an ownership mentality.
• Customers (policyholders): Benefit from the Life Solutions division's ability to help monetize life insurance policies, offering significantly more than cash surrender value, and expanded access to insurance solutions through AccuQuote.
• Institutional Investors: The growth in Assets Under Management (AUM) and the launch of new investment strategies (e.g., ABF) provide more opportunities for institutional investors seeking uncorrelated and longevity-based assets.
• Creditors: The increase in total debt and the establishment of a Senior Secured Credit Facility indicate increased leverage, but the improved operating cash flow and asset coverage ratio (1.79x for LMAIS II) suggest the company is managing its obligations.

Next Steps

• Continue to invest in technology and marketing infrastructure to support origination growth in the life settlements market.
• Expand the balance sheet hold portfolio and increase securitization activities to drive lower cost of capital and higher long-term returns.
• Scale Asset Management and Fee-Related Earnings, including through the newly launched asset-based finance (ABF) strategy.
• Anticipate paying comparable annual cash dividends in the future, subject to board discretion and financial conditions.
• Address the first redemption window for LMA Income Series II, LP opening on March 31, 2026, by offering investors options to redeem, extend, or roll over their investments.
• Integrate the recently announced $52.9 million acquisition of a minority position in Manning & Napier, a wealth advisory firm.

Key Dates

Recommendation

Abacus Global Management's 2025 10-K filing reveals a dramatic and positive financial transformation, moving from a significant net loss to substantial net income. This turnaround is underpinned by exceptional revenue growth across all segments, particularly in Asset Management and Life Solutions, driven by successful strategic acquisitions like Carlisle, FCF Advisors, and AccuQuote. The company's AUM has grown significantly, demonstrating its expanding market presence and ability to attract capital. The initiation of an annual cash dividend and a share repurchase program signals strong management confidence in sustained profitability and a commitment to shareholder returns. While the cash position decreased and debt increased, the substantial improvement in operating cash flow indicates a healthier underlying business. The strategic expansion into asset-based finance and continued innovation in longevity-based assets position the company for long-term growth in an underpenetrated market. Given these strong indicators of financial health, strategic execution, and shareholder-friendly actions, a seasoned investor would likely view this as a 'strong buy' opportunity.

Keywords

Life Settlements, Asset Management, Financial Services, Longevity-Based Assets, SEC Filing, 10-K, Abacus Global Management, ABX, Insurance Policies, Wealth Management, Technology Services, Acquisitions, Dividends, Stock Repurchase, AUM Growth, Financial Performance, Risk Management, Corporate Governance