Summary of Abacus Global Management Conference Call Company Overview - **Company Name**: Abacus Global Management (NasdaqCM: ABL) - **Industry**: Asset Management focused on life insurance assets - **History**: Over 20 years of operation, public for 10 quarters Key Financial Metrics - **Q1 Revenue Growth**: Year-over-year growth of over 100% in revenue [4] - **Adjusted Net Income Guidance**: Targeting approximately 80% year-over-year growth [4] - **EBITDA Margin**: Greater than 60% [4] - **Return on Equity (ROE) and Return on Invested Capital (ROIC)**: Both over 20% [4] - **Dividend Yield**: Over 2.5% with the first annual dividend announced [6] - **Market Valuation**: Trading at a multiple of approximately 2.5 earnings, with expectations for growth [5] Business Model and Strategy - **Core Business**: Abacus operates as both an origination company and an asset manager, controlling the lifecycle of client assets [3] - **Market Opportunity**: Positioned in a $14 trillion life insurance industry, with a focus on acquiring life insurance policies as assets [7][10] - **Recurring Revenue**: Aiming to increase recurring revenue from 15% to 70% over the next three to five years [15] - **Growth Strategy**: Plans to triple revenue over the last two years and double it again in the next three years [16] Unique Selling Proposition - **Regulatory Advantage**: Licensed in every state to operate in a highly regulated market [10] - **Data Utilization**: Developed technology to track mortality with 99% accuracy within 48 hours, significantly outperforming traditional systems [18] - **Asset Characteristics**: Life insurance policies are typically A-rated, cash-reserved, and uncorrelated to market fluctuations [12][13] Growth Areas - **Asset Management**: Currently managing approximately $3-$3.5 billion in assets under management (AUM), with expectations to reach $10 billion in five years [26] - **Technology Division**: Significant growth in tracking lives for mortality data, expanding from 26,000 to 2.6 million lives monitored [29] - **Wealth Advisory Services**: Developing financial solutions based on lifespan data to assist clients in retirement planning [19] Market Position and Future Outlook - **Market Penetration**: Abacus is a dominant player in an underpenetrated market, with a unique position as the only public company in its industry with recurring revenue [7] - **Securitization Plans**: Launched its first securitization in October, with plans for more in 2026 to optimize capital costs [32] - **Investor Engagement**: Committed to educating investors about the business model and growth potential [36] Conclusion - **Investment Opportunity**: Abacus presents a compelling investment opportunity with strong growth metrics, a unique business model, and a significant market opportunity in the life insurance asset management space [36]

Abacus Global Management, Inc. (NASDAQ:ABL) is among the 9 Best Life Insurance Stocks to Buy Now.  Northland Securities Analyst Remains Bullish On Abacus Life, Inc. (ABL) ssguy/Shutterstock.com Northland Securities analyst Michael Grondahl reaffirmed his buy rating for Abacus Life, Inc. (NASDAQ: ABL) on December 5, according to TheFly. The analyst kept the stock’s price target at $13.50. According to GlobeNewswire, Abacus Global Management, Inc. (NASDAQ:ABL) announced the date of its first-ever annual ...

In this article, we will discuss: 9 Best Life Insurance Stocks to Buy Now. On December 4, 2025, Reinsurance News reported that Fitch Ratings maintained a ‘neutral’ outlook for the North American life insurance sector in 2026. It cited solid balance sheets as a partial offset to slower economic growth, increased macroeconomic volatility, and geopolitical instability. Despite higher exposure to private credit, the agency expects life insurers to keep strong capitalization and careful asset-liability managemen ...

Group 1 - U.S. stock futures are higher, with Dow futures gaining around 50 points [1] - Tilray Brands Inc announced a one-for-10 reverse stock split, effective December 1 [1] - Tilray shares fell sharply by 15% to $0.88 in pre-market trading [2] Group 2 - Inventiva ADR fell 7.4% to $4.26 in pre-market trading after a previous gain [4] - Anglogold Ashanti PLC dipped 5.5% to $83.97 in pre-market trading after a gain of over 5% [4] - Lexicon Pharmaceuticals Inc fell 5% to $1.36 in pre-market trading [4] - SuperX AI Technology Ltd fell 3.9% to $26.00 in pre-market trading after a significant previous jump of 23% [4] - Palisade Bio Inc declined 3.6% to $2.15 in pre-market trading [4] - Gold Fields Ltd fell 3.4% to $41.76 in pre-market trading after a gain of 6% [4] - Abacus Global Management Inc fell 3.2% to $6.33 in pre-market trading after reporting better-than-expected third-quarter results and announcing a $10 million buyback [4]

Core Viewpoint - Abacus Life, Inc. (ABL) shows significant upside potential with a mean price target of $13.1, indicating an 110.3% increase from its current trading price of $6.23 [1] Price Targets and Analyst Consensus - The average price target for ABL ranges from a low of $9.00 to a high of $15.00, with a standard deviation of $2.36, suggesting a variability in estimates [2] - The lowest estimate indicates a potential increase of 44.5%, while the highest suggests a 140.8% upside [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Optimism - Analysts have shown growing optimism about ABL's earnings prospects, as indicated by a positive trend in earnings estimate revisions [11] - The Zacks Consensus Estimate for the current year has increased by 4.8% over the past month, with three estimates revised upward and no negative revisions [12] - ABL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as analysts' ability to set unbiased targets has been questioned [3][7] - Price targets should be treated with skepticism, as they can mislead investors more often than guide them [10]

Core Viewpoint - Abacus Global Management has announced its inaugural annual cash dividend of $0.20 per share, reflecting confidence in its business sustainability and a commitment to shareholder returns [2][3]. Dividend Announcement - The annual cash dividend of $0.20 per share will be payable on December 17, 2025, to shareholders of record as of December 2, 2025 [2]. - This dividend represents a distribution of up to 25% of adjusted net income or up to 55% of recurring revenue, as per the company's capital allocation framework [2]. Management Commentary - The introduction of an annual dividend is seen as a significant milestone for the company, indicating strong cash generation and growing fee-based revenues [3]. - The dividend will be funded through cash on hand and free cash flow, supporting the company's disciplined capital allocation strategy [3]. Dividend Policy - Abacus has adopted a dividend policy aimed at balancing consistent shareholder returns with strategic growth investments [7]. - The Board of Directors will evaluate opportunities for capital return through dividends based on factors such as operating cash flow, capital requirements, and strategic investment opportunities [8]. Flexibility in Dividend Declarations - The policy allows the Board to declare dividends while maintaining adequate liquidity for portfolio origination and business expansion [9]. - Specific dividend declarations will remain at the Board's discretion, influenced by business conditions [9]. Company Overview - Abacus Global Management specializes in alternative asset management, data-driven wealth solutions, and technology innovations [10]. - The company focuses on longevity-based assets and personalized financial planning, leveraging proprietary data analytics and industry expertise [10].

Core Viewpoint - Abacus Global Management has reported its tenth consecutive quarter of earnings, showcasing consistent performance and growth in funding and origination capabilities, with a strong outlook into 2026 [1][2]. Financial Performance - Gross revenue increased by 124% year-over-year, while adjusted net income grew by 60% [2]. - The company has achieved earnings beats greater than 30% in six of the last ten quarters, indicating sustained performance [2]. Business Model and Strategy - Abacus operates as an active management company, monetizing contracts and policies on its balance sheet with strong margins of around 37% [3]. - The company has raised nearly $500 million in new capital this year, driven by strong institutional interest in uncorrelated yield [3]. Revenue Composition - 15% of Abacus's revenue is now recurring, and the recently launched dividend represents just over 20% of adjusted net income, allowing for capital return to shareholders while maintaining a return on equity (ROE) over 20% [4]. Recent Acquisitions - The acquisition of AccuQuote enhances client lifecycle coverage, enabling the company to offer better-suited policies and convert previously unmonetized leads into product sales [5][6]. - AccuQuote brings 30 years of experience and $150 million in issued premium, providing both new policy sales and potential legacy contract value [6]. Securitization and Balance Sheet Strength - A recent $50 million securitized asset transaction strengthens the balance sheet and supports future growth through scalable and competitive rates [7][8]. - The participation of insurance companies and banks in this transaction validates the valuations and underlying assets, while the company earns servicing fees for five years [8]. Market Position and Investor Appeal - Being added to the Russell 2000 and 3000 indexes enhances Abacus's visibility, attracting more capital from ETFs and investors seeking strong companies [9]. - The company is now a dividend-paying stock with a yield between 3.5% and 4.5%, placing it in a selective group among Russell 2000 companies [10].

Revenue Growth - Total revenues for the three months ended September 30, 2025, were $62,975,156, a significant increase from $28,148,491 for the same period in 2024, representing a growth of 123.8%[201]. - Life solutions revenue rose by $26,090,472, or 93.1%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by increased realized gains[205]. - Life solutions revenue for the three months ended September 30, 2025, was $54,122,577, a 93.1% increase from $28,032,105 in 2024[249]. - For the nine months ended September 30, 2025, revenue increased to $25,168,756, a 4567.7% increase compared to $539,209 for the same period in 2024[244]. - Revenue from the asset management segment increased to $8,633,803 for the three months ended September 30, 2025, compared to $116,386 in 2024, representing a change of 7318.2%[239]. Income and Profitability - Operating income for the three months ended September 30, 2025, was $22,413,178, compared to $6,849,971 for the same period in 2024, marking a growth of 227.5%[202]. - Net income attributable to Abacus Global Management, Inc. for the three months ended September 30, 2025, was $7,075,348, compared to a net loss of $5,125,055 for the same period in 2024[202]. - Adjusted net income for the three months ended September 30, 2025, was $19,497,978, significantly higher than the adjusted net income of $9,947,038 for the same period in 2024, representing a year-over-year increase of approximately 96%[263]. - Adjusted EBITDA for the three months ended September 30, 2025, was $37,904,835, with an adjusted EBITDA margin of 60.2%, compared to an adjusted EBITDA of $16,666,306 and a margin of 59.2% for the same period in 2024[267]. - For the nine months ended September 30, 2025, the net income attributable to Abacus Global Management, Inc. was $29,298,620, compared to a net loss of $(5,703,817) for the same period in 2024[263]. Expenses and Costs - Total operating expenses for the three months ended September 30, 2025, were $32,906,280, up from $19,110,539 in the same period in 2024, reflecting increased operational activities[202]. - Cost of revenue for the same period rose to $10,132,030, reflecting a 986.5% increase from $932,556 in the prior year[245]. - General and administrative expenses (including stock-based compensation) increased by $14,500,083 or 35.0% for the nine months ended September 30, 2025 compared to the same period in 2024, mainly due to increases in payroll and legal fees[219]. - Sales and marketing expenses increased by $3,031,657 or 45.6% for the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to higher advertising costs[217]. - Depreciation and amortization expense increased by $9,164,926 or 177.0% for the nine months ended September 30, 2025 compared to the same period in 2024, primarily related to the amortization of acquired businesses' intangible assets[221]. Asset Management and Investments - Assets under management as of September 30, 2025, totaled $2,906,540,011, reflecting an increase from the previous balance[241]. - Total assets under management as of September 30, 2025, reached $2,906,540,011, with inflows of $468,306,186 and outflows of $155,492,297[246]. - Longevity Funds experienced new subscriptions of approximately $71.0 million and outflows of approximately $16.3 million, resulting in a net change in value of approximately $50.5 million due to realized and unrealized gains[242]. - ETF Funds saw new subscriptions of approximately $31.1 million and outflows of approximately $9.3 million, leading to a net change in value of approximately $14.8 million from realized and unrealized gains[243]. - The number of policies serviced increased by 164.4% from 1,210 in 2024 to 3,199 in 2025[288]. Cash Flow and Financing - Cash and cash equivalents decreased from $131,944,282 at the end of 2024 to $86,418,953 by September 30, 2025[290]. - Net cash used in operating activities improved by $98,586,631, from $(116,827,478) in 2024 to $(18,240,847) in 2025[296]. - The company may seek additional equity or debt financing to support future capital requirements[291]. - The company approved repurchase plans totaling $50,000,000, with $— remaining available for repurchases as of September 30, 2025[292]. - Financing activities used $(13,305,337) of net cash during the nine months ended September 30, 2025, a decrease of $(125,120,928) compared to $111,815,591 provided in the same period in 2024[298]. Tax and Accounting - Income tax expense increased by $4,943,054 or 1974.3% for the three months ended September 30, 2025, compared to the same period in 2024[237]. - The estimated tax impact for the nine months ended September 30, 2025, is $11,096,742, compared to $2,803,760 in 2024, indicating a substantial increase in tax expenses[276]. - The company has not made any material changes to its critical accounting policies since the last Annual Report on Form 10-K[299]. - Recent accounting pronouncements and their future adoption are discussed in the Summary of Significant Accounting Policies and Recent Accounting Standards[300]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[301].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Core Insights - Abacus Life, Inc. reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and matching the earnings from the previous year [1] - The company achieved revenues of $62.98 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 32.80% and significantly increasing from $28.15 million year-over-year [2] - The stock has underperformed, losing approximately 32.3% since the beginning of the year, while the S&P 500 has gained 15.6% [3] Earnings Performance - Abacus Life has surpassed consensus EPS estimates in all four of the last quarters [2] - The company had an earnings surprise of +11.11% for the latest quarter and a +37.5% surprise in the previous quarter [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $50.49 million, and for the current fiscal year, it is $0.79 on revenues of $198.29 million [7] - The Zacks Rank for Abacus Life is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Insurance - Life Insurance industry is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]