Abacus Global Management Reports Second Quarter 2025 Results

- Second Quarter 2025 Total Revenue Nearly Doubles Year-over-Year to $56.2 Million -

- Longevity Funds Attracted $123.1 Million in Capital Inflows -

- GAAP Net Income of $17.6 Million -

- Adjusted Net Income Grew 87% Year-over-Year to $21.9 Million -

- Adjusted EBITDA Grew 89% Year-over-Year to $31.5 Million -

~ Raises Full Year 2025 Outlook ~

ORLANDO, Fla., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Abacus Global Management, Inc. ("Abacus" or the "Company") (NASDAQ: ABL), a leader in the alternative asset management space, today reported results for the second quarter ended June 30, 2025.

"We delivered another excellent quarter of record profitable growth in the second quarter of 2025, nearly doubling total revenue and adjusted earnings year-over-year, enabling us to raise our full year outlook for adjusted earnings," said Jay Jackson, Chief Executive Officer of Abacus. "Our strong performance was driven by robust demand for policyholder liquidity, as well as increased inflows for our new asset management offerings. Our differentiated origination-focused business model, serving both liquidity-seeking consumers and yield-seeking investors, enables us to capture true market value in any macro environment. With our greater scale and capabilities, our ability to consistently execute on our strategic growth initiatives and our expanding brand recognition, we remain steadfast in our mission to establish Abacus as the leading alternative asset and wealth management company."

Second Quarter 2025 Highlights

• Total revenue for the second quarter grew 93% to $56.2 million, compared to $29.1 million in the prior-year period. The increase was primarily driven by higher revenues from Life Solutions as well as a full quarter of asset management fees from the acquisitions that were completed in the fourth quarter of 2024.
• Origination capital deployment for the second quarter of 2025 was $121.8 million, compared to $104.7 million in the prior-year period; number of policies held as of the end of the second quarter of 2025 stood at 600, compared to 458 in the prior-year period.
• GAAP net income attributable to shareholders for the second quarter of 2025 of $17.6 million grew $16.9 million compared to net income of $0.7 million in the prior-year period. The increase was primarily driven by higher revenues and a non-recurring $4.2 million gain on change in fair value of warrant liability, partially offset by increased operating expenses.
• Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 grew 87% to $21.9 million, compared to $11.7 million in the prior-year period. Adjusted diluted earnings per share for the second quarter of 2025 was $0.22, compared to $0.17 in the prior-year period.
• Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 increased 89% to $31.5 million, compared to $16.7 million in the prior-year period. Adjusted EBITDA margin (a non-GAAP financial measure) for the second quarter of 2025 was 56.1%, compared to 57.5% in the prior-year period.
• Adjusted Annualized return on invested capital (ROIC) (a non-GAAP financial measure) for the second quarter of 2025 was 22%.
• Annualized Return on equity (ROE) (a non-GAAP financial measure) for the second quarter of 2025 was 21%.
• Company introduces supplemental KPIs to provide greater insight into the Company's operational performance:
  • Annualized Turnover Ratio (a non-GAAP financial measure) for the second quarter of 2025 was 2.3x.
  • Average Realized Gain (a non-GAAP financial measure) for the second quarter of 2025 was 26.3%.
• Announced a newly authorized $20 million Share Repurchase program, approved by the Board effective June 5, 2025.
• Hosted Investor Day and Longevity Summit at Nasdaq in New York City on June 12, 2025. During the event the Company announced the public launch of a new corporate-focused commercial campaign. A replay of the event is accessible here.

Liquidity and Capital

As of June 30, 2025, the Company had cash and cash equivalents of $74.8 million, balance sheet policy assets of $387.3 million and outstanding long-term debt of $357 million.

2025 Outlook

Driven by strong second quarter performance, the Company is raising its full year 2025 outlook for Adjusted net income to between $74 million and $80 million, compared to its prior outlook of between $70 million and $78 million. The new range implies growth of between 59% to 72% compared to full year 2024 Adjusted net income of $46.5 million.

For a definition of Adjusted net income, see "Non-GAAP Financial Information" below.

Subsequent Events

On July 30, 2025, the Company eliminated the overhang of its warrants, announcing the completion of its previously announced exchange offer (the "Offer") and consent solicitation (the "Consent Solicitation") relating to its outstanding warrants. As a result of the completion of the Offer and the Post-Offer Exchange, no warrants will remain outstanding. Accordingly, the public warrants are expected to be suspended from trading on the Nasdaq as of the close of business on August 14, 2025, and will be delisted.

Following completion of the Offer, there are approximately 102,050,981 shares of common stock outstanding (an increase of approximately 4% from prior to the closing of the Offer) and following completion of the Post-Offer Exchange there will be approximately 102,555,154 shares of common stock outstanding (an increase of approximately 5% from prior to the closing of the Offer and the Post-Offer Exchange).

Webcast and Conference Call

A webcast and conference call to discuss the Company's results will be held today beginning at 5:00 p.m. (Eastern Time). A live webcast of the conference call will be available on Abacus' investor relations website at ir.abacuslife.com. The dial-in number for the conference call is [phone] (toll-free) or [phone] (international). Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at ir.abacusgm.com for one year following the call.

Non-GAAP Financial Information

Adjusted Net Income, a non-GAAP financial measure, is defined as net income (loss) attributable to Abacus adjusted for non-controlling interest income, amortization, change in fair value of warrants and non-cash stock-based compensation and the related tax effect of those adjustments. Management believes that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. A reconciliation of Adjusted Net Income to Net income attributable to Abacus, the most directly comparable GAAP measure, appears below.

The Company is unable to provide a comparable FY 2025 outlook for, or a reconciliation to net income because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. Its inability to do so is due to the inherent difficulty in forecasting the timing of items that have not yet occurred and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities, and other one-time or exceptional items.

Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to Abacus adjusted for depreciation expense, amortization, interest expense, income tax and other non-cash and certain non-recurring items that in our judgement significantly impact the period-over-period assessment of performance and operating results that do not directly relate to business performance within Abacus' control. A reconciliation of Adjusted EBITDA to Net income attributable to Abacus Life, the most directly comparable GAAP measure, appears below.

Adjusted EBITDA margin, a non-GAAP financial measure, is defined as Adjusted EBITDA divided by Total revenues. A reconciliation of Adjusted EBITDA margin to Net income margin, the most directly comparable GAAP measure, appears below.

Annualized return on invested capital (ROIC), a non-GAAP financial measure, is defined as Adjusted net income for the quarter divided by the result of Total Assets less Intangible assets, net, Goodwill and Current Liabilities multiplied by four. ROIC is not a measure of financial performance under GAAP. We believe ROIC should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.

Annualized return on equity (ROE), a non-GAAP financial measure, is defined as Adjusted net income divided by total shareholder equity multiplied by four. ROE is not a measure of financial performance under GAAP. We believe ROE should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP. The below table presents our calculation of ROE.

Forward-Looking Statements

All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus's financial and operational outlook; Abacus's operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus's ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words "believe," "project," "estimate," "expect," "intend," "anticipate," "goals," "prospects," "will," "would," "will continue," "will likely result," and similar expressions (including the negative versions of such words or expressions).

While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the fact that Abacus's loss reserves are bases on estimates and may be inadequate to cover its actual losses; the failure to properly price Abacus's insurance policies; the geographic concentration of Abacus's business; the cyclical nature of Abacus's industry; the impact of regulation on Abacus's business; the effects of competition on Abacus's business; the failure of Abacus's relationships with independent agencies; the failure to meet Abacus's investment objectives; the inability to raise capital on favorable terms or at all; the effects of acts of terrorism; and the effectiveness of Abacus's control environment, including the identification of control deficiencies.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with the U.S. Securities and Exchange Commission from time to time, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.

About Abacus

Abacus Global Management (NASDAQ: ABL) is a leading financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. With a focus on longevity-based assets and personalized financial planning, Abacus leverages proprietary data analytics and decades of industry expertise to deliver innovative solutions that optimize financial outcomes for individuals and institutions worldwide.

Contacts:

Investor Relations

Robert F. Phillips - SVP Investor Relations and Corporate Affairs
[e-mail]
[phone]

David Jackson - Managing Director of Investor Relations
[e-mail]
[phone]

Abacus Global Management Public Relations
[e-mail]

ABACUS GLOBAL MANAGEMENT, INC. CONSOLIDATED BALANCE SHEET
	June 30, 2025 (unaudited)				December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	74,836,871			$	131,944,282
Accounts receivable		14,512,827				15,785,531
Accounts receivable, related party		10,989,251				7,113,369
Income taxes receivable		145,839				2,099,673
Prepaid expenses and other current assets		5,435,222				2,621,791
Total current assets		105,920,010				159,564,646
Property and equipment, net		1,517,845				1,025,066
Intangible assets, net		71,392,006				79,786,793
Goodwill		238,921,108				238,296,200
Operating right-of-use assets		4,867,682				4,722,573
Management and performance fee receivable, related party		14,501,482				13,379,301
Life settlement policies, at fair value		386,144,698				370,398,447
Life settlement policies, at cost		1,109,808				1,083,977
Available-for-sale securities, at fair value		3,287,463				2,205,904
Other investments		9,850,000				1,850,000
Other assets		10,845,818				1,851,845
TOTAL ASSETS	$	848,357,920			$	874,164,752
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, at fair value	$	117,869,504			$	37,430,336
Current portion of long-term debt		1,000,000				1,000,000
Accrued expenses		5,316,412				6,139,472
Current operating lease liabilities		646,851				515,597
Contract liabilities, deposits on pending settlements		45,869				2,473,543
Accrued transaction costs		879,329				483,206
Other current liabilities		12,143,344				14,423,925
Income taxes payable		2,276,726				-
Total current liabilities		140,178,035				62,466,079
Long-term debt, net		224,895,561				224,742,029
Long-term debt, at fair value		-				105,120,100
Long-term debt, related party		13,296,214				12,525,635
Retrocession fees payable		5,361,714				5,312,214
Noncurrent operating lease liabilities		4,713,328				4,580,158
Deferred tax liability		28,411,876				26,778,865
Warrant liability		9,968,000				9,345,000
TOTAL LIABILITIES		426,824,728				450,870,080
COMMITMENTS AND CONTINGENCIES
MEZZANINE EQUITY
Series A convertible preferred stock, $0.0001 par value; 5,000 shares authorized; 5,000 issued and outstanding		5,000,000				-
TOTAL MEZZANINE EQUITY		5,000,000				-
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 5,000 issued and outstanding		-				-
Class A common stock, $0.0001 par value; 200,000,000 authorized shares; 97,954,471 and 96,731,194 shares issued at June 30, 2025 and December 31, 2024, respectively		9,795				10,133
Treasury stock - at cost; 6,129,703 and 1,048,260 shares repurchased at June 30, 2025 and December 31, 2024, respectively		(47,076,918	)			(12,025,137	)
Additional paid-in capital		499,438,543				494,064,113
Accumulated deficit		(35,767,080	)			(57,896,606	)
Noncontrolling interest		(71,148	)			(857,831	)
TOTAL STOCKHOLDERS' EQUITY		416,533,192				423,294,672
TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY	$	848,357,920			$	874,164,752

ABACUS GLOBAL MANAGEMENT, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
REVENUES:
Asset management fees	$	8,761,876			$	204,888			$	16,534,953			$	422,823
Life solutions		47,300,844				28,871,214				83,599,501				50,140,463
Technology services		161,900				-				229,512				-
TOTAL REVENUES		56,224,620				29,076,102				100,363,966				50,563,286
COST OF REVENUES (excluding depreciation and amortization stated below):
Cost of revenue (including stock-based compensation)		6,054,644				2,743,534				13,163,051				5,464,431
GROSS PROFIT		50,169,976				26,332,568				87,200,915				45,098,855
OPERATING EXPENSES:
Sales and marketing		3,267,715				2,552,801				5,883,715				4,482,745
General and administrative (including stock-based compensation)		18,926,329				14,553,344				31,190,115				25,906,843
(Gain) loss on change in fair value of debt		-				1,199,463				(3,362,103	)			3,912,090
Unrealized loss (gain) on investments		272,254				362,482				-				(802,484	)
Realized gain on investments		-				(856,744	)			-				(856,744	)
Depreciation and amortization expense		5,184,083				1,750,452				9,942,629				3,432,506
TOTAL OPERATING EXPENSES		27,650,381				19,561,798				43,654,356				36,074,956
OPERATING INCOME		22,519,595				6,770,770				43,546,559				9,023,899
OTHER INCOME (EXPENSE):
Gain (loss) on change in fair value of warrant liability		4,183,000				(667,500	)			(623,000	)			279,460
Interest expense		(8,752,145	)			(4,529,187	)			(18,370,475	)			(8,199,632	)
Interest income		1,012,278				639,906				2,187,279				1,061,332
Other income		2,718,172				195,470				2,673,648				142,442
TOTAL OTHER EXPENSE		(838,695	)			(4,361,311	)			(14,132,548	)			(6,716,398	)
NET INCOME BEFORE PROVISION FOR INCOME TAXES		21,680,900				2,409,459				29,414,011				2,307,501
Income tax expense		4,069,971				1,757,710				6,404,056				2,931,223
NET INCOME (LOSS)		17,610,929				651,749				23,009,955				(623,722	)
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST		27,240				(118,234	)			786,683				(44,960	)
NET INCOME (LOSS) ATTRIBUTABLE TO ABACUS GLOBAL MANAGEMENT, INC.	$	17,583,689			$	769,983			$	22,223,272			$	(578,762	)
EARNINGS (LOSS) PER SHARE:
Earnings (loss) per share - basic	$	0.18			$	0.01			$	0.23			$	(0.01	)
Earnings (loss) per share - diluted	$	0.18			$	0.01			$	0.23			$	(0.01	)

ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED NET INCOME
	Three Months Ended June 30,									Six Months Ended June 30,
		2025				2024				2025				2024
Net income (loss) attributable to Abacus Global Management		$	17,583,689			$	769,983			$	22,223,272			$	(578,762	)
Net income (loss) attributable to noncontrolling interests			27,240				(118,234	)			786,683				(44,960	)
Stock-based compensation			3,486,829				6,165,459				5,842,224				12,258,830
Business acquisition costs			74,782				1,325,000				74,782				1,325,000
Amortization expense			4,667,987				1,706,033				9,301,141				3,388,117
(Gain) loss on change in fair value of warrant liability			(4,183,000	)			667,500				623,000				(279,460	)
Tax impact[1]			233,137				1,178,552				233,137				2,344,454
Adjusted Net Income		$	21,890,664			$	11,694,293			$	39,084,239			$	18,413,219
Weighted-Average Stock Outstanding - Basic			94,690,195				63,846,170				95,437,545				63,087,878
Weighted-Average Stock Outstanding - Diluted			97,372,470				67,162,820				97,801,477				63,102,210
Adjusted EPS - Basic		$	0.23			$	0.18			$	0.41			$	0.29
Adjusted EPS - Diluted		$	0.22			$	0.17			$	0.40			$	0.29
[1] Tax impact represents the permanent difference in tax expense related to the restricted stock awards granted to certain executives due to IRC 162(m) limitations.

ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED EBITDA
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Net Income (Loss)		$	17,610,929			$	651,749			$	23,009,955			$	(623,722	)
Depreciation and amortization expense			5,184,083				1,750,452				9,942,629				3,432,506
Income tax expense			4,069,971				1,757,710				6,404,056				2,931,223
Interest expense			8,752,145				4,529,187				18,370,475				8,199,632
Other income			(2,718,172	)			(195,470	)			(2,673,648	)			(142,442	)
Interest income			(1,012,278	)			(639,906	)			(2,187,279	)			(1,061,332	)
(Gain) loss on change in fair value of warrant liability			(4,183,000	)			667,500				623,000				(279,460	)
Stock-based compensation			3,486,829				6,165,459				5,842,224				12,258,830
Business acquisition costs			74,782				1,325,000				74,782				1,325,000
Realized and Unrealized gain on investments			272,254				(494,262	)			-				(1,659,228	)
Change in fair value of debt			-				1,199,463				(3,362,103	)			3,912,090
Adjusted EBITDA		$	31,537,543			$	16,716,882			$	56,044,091			$	28,293,097
Total Revenue		$	56,224,620			$	29,076,102			$	100,363,966			$	50,563,286
Adjusted EBITDA Margin %			56.1%				57.5%				55.8%				56.0%
Net Income Margin %			31.3%				2.2%				22.9%				-1.2%

ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED RETURN ON INVESTED CAPITAL (ROIC)
	For the Period Ended				For the Period Ended
	June 30, 2025				June 30, 2024
Total Assets	$	848,357,920			$	483,854,905
Less:
Intangible assets, net		(71,392,006	)			(26,352,123	)
Goodwill		(238,921,108	)			(139,930,190	)
Current Liabilities		(140,178,035	)			(55,383,057	)
Total Invested Capital	$	397,866,771			$	262,189,535
Adjusted Net income	$	21,890,664			$	11,694,293
Adjusted Annualized ROIC		22.0%				17.8%

ABACUS GLOBAL MANAGEMENT, INC. ADJUSTED RETURN ON EQUITY (ROE)
	For the Period Ended				For the Period Ended
	June 30, 2025				June 30, 2024
Total Shareholder Equity	$	416,533,192			$	256,849,488
Adjusted Net income	$	21,890,664			$	11,694,293
Adjusted Annualized ROE		21.0%				18.2%