8-K: Abacus Global Management Reports Record 2025, Raises Guidance

Abacus Global Management, Inc. announced record 2025 performance, raised full-year adjusted net income guidance, completed a $50 million securitized product offering, and debuted on the NYSE.

Summary

• Abacus Global Management expects to deliver record 2025 results, continuing its transition to a recurring revenue model.
• Full-year adjusted net income guidance has been raised to $80 million to $84 million, representing 72% to 81% year-over-year growth.
• The company completed a $50 million investment grade securitized product offering backed by life insurance assets.
• Abacus debuted on the New York Stock Exchange (NYSE) under the symbol ABX on December 30, 2025.
• Third-quarter results showed 124% year-over-year revenue growth, 60% adjusted net income growth, and 127% adjusted EBITDA growth with 60% margins.
• The company has achieved 10 consecutive quarters of beating earnings expectations.
• Assets under management (AUM) grew to $3.33 billion, up from $2.96 billion at the start of 2025.
• Fee-related earnings currently represent approximately 15% of total revenue, with a long-term target of 70%.
• Abacus acquired AccuQuote in 2025, a premier digital life insurance origination platform.
• An annual dividend of $0.20 per share and a new 10 million share repurchase program were introduced.
• The company is launching an asset-based finance (ABF) strategy within Abacus Asset Group in 2026.

Sentiment

Score: 8

Explanation: The filing presents strong financial performance, raised guidance, strategic growth initiatives (ABF launch, AccuQuote acquisition), and a commitment to shareholder returns (dividend, share repurchase). The NYSE listing and focus on recurring revenue are positive structural changes. The primary negative is the current valuation discount, which the company is actively addressing. Overall, the tone is highly confident and forward-looking, backed by solid numbers.

Positives

• Record 2025 performance is expected, with 10 consecutive quarters of beating earnings expectations.
• Full-year adjusted net income guidance was raised to $80 million to $84 million, indicating 72% to 81% year-over-year growth.
• Strong Q3 2025 results include 124% year-over-year revenue growth, 60% adjusted net income growth, and 127% adjusted EBITDA growth with 60% margins.
• Successful completion of a $50 million investment grade securitized product offering validates underwriting and establishes a repeatable funding mechanism.
• Assets Under Management (AUM) grew to $3.33 billion from $2.96 billion at the start of 2025.
• The strategic acquisition of AccuQuote enhances digital origination capabilities and expands revenue streams.
• Introduction of an annual dividend of $0.20 per share and a 10 million share repurchase program reflects confidence and commitment to shareholder returns.
• The company maintains a strong balance sheet, record cash generation, and accelerating capital inflows, with no need to raise additional equity.
• The NYSE listing (ABX) with Citadel Securities as Designated Market Maker (DMM) is expected to enhance visibility and liquidity.
• A new Asset-Based Finance (ABF) strategy is launching in 2026, targeting a $20 trillion+ market opportunity.

Negatives

• Fee-related earnings currently represent only approximately 15% of total revenue, significantly below the long-term target of 70%.
• The company trades at a significant valuation discount (mid-single digit multiples) compared to public alternative asset managers (average 20x forward earnings), despite higher growth rates.

Risks

• Loss reserves are based on estimates and may be inadequate to cover actual losses.
• Failure to properly price insurance policies.
• Geographic concentration of business.
• Cyclical nature of the industry.
• Impact of regulation on the business.
• Effects of competition on the business.
• Failure of relationships with independent agencies.
• Failure to meet investment objectives.
• Inability to raise capital on favorable terms or at all.
• Effects of acts of terrorism.
• Effectiveness of the control environment, including the identification of control deficiencies.

Future Outlook

Abacus Global Management expects to deliver record 2025 results, establishing a higher earnings and cash flow baseline and accelerating its transition to a more durable, recurring revenue model. The company plans to launch an asset-based finance (ABF) strategy in 2026 to further accelerate AUM and fee-related earnings growth. Management anticipates the market will recognize the current valuation disconnect as the company continues its recurring revenue transition and provides greater transparency into fee-related earnings. The company will continue expanded investor outreach in 2026, including shareholder letters and AMA events. Fourth quarter and full year 2025 results are expected to be shared in March.

Management Comments

• "At Abacus, we control our own destiny. Nearly 80% of our employees are shareholders, not because they have to be, but because they believe in what we're building. That ownership mentality drives every decision we make." Jay Jackson, Chairman and CEO.
• "Our performance in 2025 has established a higher earnings and cash flow baseline for the Company. Importantly, this performance has also accelerated our transition toward a more durable, recurring revenue model." Jay Jackson, Chairman and CEO.
• "The alternative asset managers that command the highest valuations share a common profile: predictable fee streams, sticky institutional capital, differentiated origination and operating leverage. That is precisely the profile we are building, and we are making measurable progress every quarter." Jay Jackson, Chairman and CEO.
• "We do not need to raise additional equity to fund this growth. Shareholders should not expect dilution." Jay Jackson, Chairman and CEO.
• "We expect the market to recognize this disconnect as we continue executing on our recurring revenue transition and providing greater transparency into fee-related earnings." Jay Jackson, Chairman and CEO.
• "Our retail shareholders matter enormously to us. Many of you were early believers in Abacus, and we do not take that trust for granted. We are committed to communicating with the same transparency and accessibility regardless of whether you own 100 shares or 100,000." Jay Jackson, Chairman and CEO.
• "The transition from ABL to ABX is more than a change of letters—it signals our broader transformation. While ABL served us well, ABX better represents who we've become: a diversified alternative asset manager whose business now extends well beyond longevity assets into structured products, asset management, technology services, and private wealth." Jay Jackson, Chairman and CEO.

Industry Context

Abacus Global Management is positioning itself as a diversified alternative asset manager, moving beyond its core longevity assets. The launch of an asset-based finance (ABF) strategy taps into a large and growing market ($20 trillion+) that institutional investors are increasingly favoring for stable cash flows and low correlation to traditional markets. The company's focus on recurring revenue streams aligns with the valuation profiles of leading alternative asset managers, indicating a strategic shift to enhance market perception and valuation. The acquisition of AccuQuote and the expansion of ABL Tech's services to over 100 pension funds and institutional clients demonstrate a broader trend of financial services companies leveraging technology and data analytics for origination, risk management, and distribution.

Comparison to Industry Standards

• Abacus's Q3 year-over-year revenue growth of 124% significantly outperforms the average growth of public alternative asset managers, which reported between 20% and 30%.
• Despite superior growth, Abacus trades at mid-single digit multiples, a substantial discount compared to the average public alternative asset manager trading at approximately 20x forward earnings.
• The target of 70% fee-related earnings aligns Abacus with leading public alternative asset managers known for predictable fee streams and sticky institutional capital.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, raised guidance, new dividend ($0.20 per share), 10 million share repurchase program, commitment to no dilution, and efforts to address valuation disconnect.
• Employees: Positive impact as nearly 80% are shareholders, fostering an ownership mentality.
• Institutional Investors: Expanded investment offerings (ABF strategy), validated underwriting through securitization, and enhanced visibility via NYSE listing.
• Customers (Life Solutions, ABL Tech, Wealth Advisors): Enhanced services through vertical integration, data-driven mortality verification, and personalized financial planning.
• Pension Funds/Institutional Clients: ABL Tech product now serves over 100 clients, providing faster claim resolutions and confident financial projections.

Next Steps

• Launch an asset-based finance (ABF) strategy in 2026.
• Continue expanding investor outreach in 2026, including publishing shareholder letters and hosting AMA events.
• Share fourth quarter and full year 2025 results in March.
• Continue executing on the recurring revenue transition to reach a 70% target for fee-related earnings.
• Further develop securitized products as a consistent component of long-term funding strategy.

Key Dates

Recommendation

The company is demonstrating exceptional growth (124% revenue growth, 72-81% adjusted net income growth guidance) significantly outpacing industry peers. Strategic initiatives like the recurring revenue transition, successful securitization, and the launch of a new asset-based finance strategy are strong catalysts for future growth and valuation re-rating. The commitment to shareholder returns through dividends and share repurchases, coupled with a strong balance sheet and no need for equity dilution, further enhances investor confidence. The current valuation discount relative to peers, despite superior performance, suggests significant upside potential as the market recognizes the company's transformation and execution.

Keywords

Abacus Global Management, ABX, Alternative Asset Management, SEC Filing, Shareholder Letter, Financial Results, Guidance, Securitization, NYSE Listing, Asset-Based Finance, AUM Growth, Recurring Revenue, Dividend, Share Repurchase, AccuQuote Acquisition, Longevity Funds, Financial Services