Revenue Growth - Total revenues for the three months ended September 30, 2025, reached $62,975,156, a significant increase of 123.5% compared to $28,148,491 for the same period in 2024[201]. - Life solutions revenue increased by $26,090,472, or 93.1%, for the three months ended September 30, 2025, driven by a rise in 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 the same period in 2024, reflecting 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, reflecting 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, reflecting a year-over-year increase of approximately 96%[263]. - The company achieved an adjusted EBITDA of $37,904,835 for the three months ended September 30, 2025, with an adjusted EBITDA margin of 60.2%, compared to 59.2% in the same quarter of 2024[267]. - For the nine months ended September 30, 2025, 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[202]. - Cost of revenues (including stock-based compensation) increased by $13,166,337 or 172.1% for the nine months ended September 30, 2025, primarily due to asset management retrocession fees and increased compensation expenses[212]. - General and administrative expenses (including stock-based compensation) rose by $14,500,083 or 35.0% for the nine months ended September 30, 2025, 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, primarily due to increased advertising costs to support life solutions growth[217]. Cash Flow and Financing - Cash and cash equivalents decreased to $86,418,953 as of September 30, 2025, from $131,944,282 as of December 31, 2024[290]. - Net cash used in operating activities improved to $(18,240,847) for the nine months ended September 30, 2025, from $(116,827,478) in the same period in 2024, reflecting an increase of $98,586,631[296]. - 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 of 2024, driven by an $(86,114,424) decrease in net proceeds from follow-on stock issuances and a $(27,501,830) increase in share repurchases[298]. - The company may seek additional equity or debt financing to support future capital requirements[291]. Asset Management and Investments - 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 had 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]. Realized and Unrealized Gains - The average realized gain per policy sold improved from 19.0% for the three months ended September 30, 2024, to 36.6% for the same period in 2025[206]. - The average realized gain per policy sold improved from 20.2% for the nine months ended September 30, 2024, to 30.2% for the same period in 2025, reflecting increased institutional demand for life settlement policies[208]. - Total lifetime gains, net of lifetime premiums paid, surged by 371.5% to $42,446,139 in Q3 2025 from $9,002,179 in Q3 2024[283]. - Realized gain on equity securities increased by $856,744 or 100.0% for the nine months ended September 30, 2025, compared to the same period in 2024, due to the sale of investments in S&P 500 options[226]. Accounting and Reporting - Adjusted EPS for the three months ended September 30, 2025, was $0.24 (diluted), compared to $0.13 (diluted) for the same period in 2024, representing an increase of 84.6%[263]. - The company has not experienced any material changes to its critical accounting policies or methodologies since the last Annual Report on Form 10-K, except for new policies described in Note 2[299]. - Recent accounting pronouncements and their future adoption are discussed in Note 2 of the consolidated Interim Financial Statements[300]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[301].

Financial Performance - Total revenue for Q3 2025 reached $63.0 million, representing a 124% increase year-over-year from $28.1 million[3] - GAAP net income attributable to shareholders was $7.1 million, a significant recovery from a net loss of $5.1 million in the prior-year period[3] - Adjusted net income increased 60% year-over-year to $23.6 million, compared to $14.7 million in the prior year[3] - Adjusted EBITDA grew 127% year-over-year to $37.9 million, with an adjusted EBITDA margin of 60.2%[3] - Total revenues for Q3 2025 reached $62.98 million, a significant increase from $28.15 million in Q3 2024, representing a growth of 123.7% year-over-year[22] - Life solutions revenue surged to $45.54 million in Q3 2025, compared to $28.03 million in Q3 2024, marking a 62.6% increase[22] - Gross profit for Q3 2025 was $55.32 million, up from $25.96 million in Q3 2024, reflecting a growth of 113.2%[22] - Operating income for the nine months ended September 30, 2025, was $65.96 million, compared to $15.87 million for the same period in 2024, indicating a year-over-year increase of 314.5%[22] - Net income for Q3 2025 was $7.08 million, a turnaround from a net loss of $5.28 million in Q3 2024[22] - For the three months ended September 30, 2025, Abacus Global Management reported an adjusted net income of $23,608,143, compared to $14,719,496 for the same period in 2024, reflecting a year-over-year increase of 60.5%[23] - The adjusted EBITDA for the three months ended September 30, 2025, was $37,904,835, with an adjusted EBITDA margin of 60.2%, compared to $16,666,306 and a margin of 59.2% in the same period of 2024[25] - Total revenue for the three months ended September 30, 2025, was $62,975,156, up from $28,148,491 in the same period of 2024, indicating a significant growth of 123.5%[25] - For the nine months ended September 30, 2025, the adjusted net income was $54,567,277, compared to $24,118,367 for the same period in 2024, representing an increase of 126.5%[24] Financial Position - Total assets as of September 30, 2025, amounted to $918.94 million, an increase from $874.16 million at the end of 2024, representing a growth of 5.1%[21] - Current liabilities increased to $148.44 million as of September 30, 2025, compared to $62.47 million at the end of 2024, reflecting a 137.5% rise[21] - Cash and cash equivalents decreased to $86.42 million from $131.94 million at the end of 2024, a decline of 34.5%[21] - The company repurchased 6,726,082 shares at a cost of $50.27 million as of September 30, 2025, compared to 1,048,226 shares repurchased for $12.03 million at the end of 2024[21] Returns and Shareholder Value - Annualized return on invested capital (ROIC) for Q3 2025 was 21%, and annualized return on equity (ROE) was 22%[10] - The adjusted annualized return on invested capital (ROIC) for the period ended September 30, 2025, was 21%, slightly up from 20% in the previous year[26] - The adjusted annualized return on equity (ROE) for the period ended September 30, 2025, was 22%, down from 23% in the previous year[27] - Earnings per share for Q3 2025 were $0.07, compared to a loss of $0.07 per share in Q3 2024[22] - The adjusted EPS for the three months ended September 30, 2025, was $0.25 for basic shares, compared to $0.20 in the same period of 2024[23] Strategic Initiatives - Abacus completed the strategic acquisition of AccuQuote, enhancing its financial services platform and expanding client lifecycle coverage[10] - The company announced a $50 million securitized asset-backed rated note of life insurance assets, marking a scalable funding mechanism[10] - Abacus was added to the Russell 2000® and 3000® Indexes, effective September 22, 2025, enhancing visibility to institutional investors[10] Costs and Liabilities - The company incurred business acquisition and special legal costs of $5,941,429 for the three months ended September 30, 2025[25] - The loss on change in fair value of warrant liability was $1,081,193 for the three months ended September 30, 2025, compared to $8,766,500 in the same period of 2024[25]

Revenue Growth - Total revenues for Q2 2025 reached $56.22 million, a significant increase of 93.6% compared to $29.08 million in Q2 2024[7] - Asset management revenues surged to $8.76 million in Q2 2025 from $204,888 in Q2 2024, reflecting a growth of 4141%[7] - Life solutions revenues increased to $47.30 million in Q2 2025, up 64% from $28.87 million in Q2 2024[7] - Total revenue for the three months ended June 30, 2025, was $56,224,620, a significant increase from $29,076,102 in the same period of 2024, representing a growth of 93.5%[56] - Revenue from the United States for the three months ended June 30, 2025, was $42,988,604, a significant increase from $26,537,067 in 2024, representing a 62.1% growth[89] Profitability - Gross profit for the first half of 2025 was $87.20 million, compared to $45.10 million in the same period of 2024, marking an increase of 93.5%[7] - Operating income for Q2 2025 was $22.52 million, a substantial rise from $6.77 million in Q2 2024, representing a growth of 232%[7] - Net income attributable to Abacus Global Management, Inc. for Q2 2025 was $17.58 million, compared to $769,983 in Q2 2024, indicating a significant increase[8] - Net income for Q2 2025 was $17.61 million, a substantial rise from $651,749 in Q2 2024[8] - Net income for the six months ended June 30, 2025, was $23,009,955, a significant increase from a net loss of $623,722 in the same period of 2024[14] Liabilities and Equity - Total liabilities as of June 30, 2025, were $426.82 million, a decrease from $450.87 million at the end of 2024[6] - Long-term debt, net, stood at $224.90 million as of June 30, 2025, slightly up from $224.74 million at the end of 2024[6] - Total stockholders' equity was $416.53 million as of June 30, 2025, compared to $423.29 million at the end of 2024[6] - As of June 30, 2025, total stockholders' equity is $416,533,192, a decrease from $423,294,672 as of December 31, 2024, reflecting a decline of approximately 1.8%[10] Cash Flow - Net cash provided by operating activities was $14,511,602, compared to a net cash used of $64,542,510 in the prior year[15] - The net cash used in investing activities was $13,743,342, compared to $716,113 in the previous year[15] - Cash, cash equivalents, and restricted cash at the end of the period totaled $74,836,871, down from $131,944,282 at the beginning of the period[15] Stock and Compensation - Stock-based compensation for the quarter ending June 30, 2025, totaled $3,486,828, reflecting an increase from previous periods[10] - The company repurchased common stock worth $35,051,781 during the quarter ending March 31, 2025, indicating a strategic move to manage equity[10] - The Company authorized a stock repurchase program with an aggregate purchase price not exceeding $15 million, extended by an additional $15 million and $20 million in April and June 2025, respectively, with a total of $2,923,082 remaining available for repurchase as of June 30, 2025[152][153] Acquisitions and Investments - The total purchase price for the Carlisle Acquisition was approximately $145.7 million, with goodwill calculated at $93.7 million[41] - The FCF Acquisition had a total purchase price of approximately $10.4 million, with goodwill calculated at $4.6 million[48] - The NIB Acquisition was completed for approximately $3 million, with goodwill calculated at $686,742[53] - The Company expects to complete an acquisition of an insurance brokerage firm in Q3 2025, using a note receivable of approximately $9.0 million as consideration for 100% interest in the firm[180] Tax and Compliance - The provision for income taxes for the three months ended June 30, 2025 was $4,069,971, with an effective tax rate of 18.8%, significantly lower than the 73.0% effective rate for the same period in 2024[161] - The Company recorded a provision for income taxes of $6,404,056 for the six months ended June 30, 2025, with an effective tax rate of 21.8%, compared to 127.0% for the same period in 2024[162] - As of June 30, 2025, the Company is in compliance with its debt covenants, including a maximum Secured Leverage Ratio and a minimum Consolidated Fixed Charge Coverage Ratio[122] Other Financial Metrics - The company reported a depreciation and amortization expense of $9,942,629, up from $3,432,506 in the previous year[14] - The company recognized realized and unrealized gains from life insurance policies held using the fair value method amounting to $29,621,941 for the three months ended June 30, 2025, compared to $27,006,364 in 2024, reflecting a growth of 9.8%[56] - The fair value of life settlement policies as of June 30, 2025, was $386,144,698, using a Monte Carlo simulation for valuation[96]

Financial Results - Abacus Global Management, Inc. announced its financial results for the quarter ended June 30, 2025[3]. - A press release detailing the financial results is included as Exhibit 99.1[6]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]. Forward-Looking Statements - The report includes forward-looking statements regarding the company's public offering and other strategic initiatives[7]. - Management's expectations and beliefs are subject to risks and uncertainties that may affect actual results[7]. - Abacus explicitly disclaims any obligation to update forward-looking statements except as required by law[7]. Regulatory Filings - The company has filed its most recent annual report on Form 10-K and quarterly report on Form 10-Q with the SEC[7]. Signature - The report was signed by CEO Jay Jackson on August 8, 2025[9].

Revenue Growth - Total revenues for the three months ended March 31, 2025, were $44,139,346, a significant increase of $22,652,162 or 105.8% compared to $21,487,184 for the same period in 2024[149] - Asset management revenue surged to $7,773,077, reflecting an increase of $7,555,142 or 3466.7% compared to $217,935 in the prior year, primarily driven by the Carlisle and FCF acquisitions[151] - Life solutions revenue rose to $36,298,657, an increase of $15,029,408 or 70.7% from $21,269,249, mainly due to unrealized gains from life insurance policies[152] - Revenue from the Asset Management segment reached $7,773,077 for the three months ended March 31, 2025, a significant increase of $7,555,142 or 3466.7% compared to the same period in 2024[168] - Revenue from the Life Solutions segment increased to $36,298,657 for the three months ended March 31, 2025, up by $15,029,408 or 70.7% compared to the same period in 2024[170] Profitability - Gross profit increased by $18,264,652 or 97.3%, reaching $37,030,939 for the three months ended March 31, 2025, compared to $18,766,287 in 2024[155] - Operating income for the period was $21,026,964, a substantial increase from $2,253,129 in the previous year[150] - Net income attributable to common stockholders was $4,639,583 for the three months ended March 31, 2025, compared to a loss of $(1,348,745) in the same period of 2024[150] - Adjusted Net Income for the three months ended March 31, 2025, was $17,252,141, compared to $6,703,951 for the same period in 2024[178] - Adjusted EPS for the three months ended March 31, 2025, was $0.18, compared to $0.11 for the same period in 2024[178] - Net income for the three months ended March 31, 2025, was $5,399,026, compared to a loss of $1,275,471 in the same period of 2024, representing a significant turnaround[182] - Adjusted EBITDA for the same period increased to $24,506,548, with an adjusted EBITDA margin of 55.5%, up from 53.9% in 2024[182] Expenses - Sales and marketing expenses increased by $686,056 or 35.5%, totaling $2,616,000, primarily due to higher advertising costs to support life policy revenue growth[157] - General and administrative expenses rose by $910,287 or 8.0%, amounting to $12,263,786, driven by payroll expenses related to business acquisitions and legal fees[158] - Depreciation and amortization expenses increased by $3,076,492 or 182.9%, totaling $4,758,546, attributed to the amortization of intangible assets from acquisitions[159] - Interest expense rose to $9,618,330 for the three months ended March 31, 2025, an increase of $5,947,885 or 162.0% compared to the same period in 2024[164] - Income tax expense increased by $1,160,572, or 98.9%, for the three months ended March 31, 2025, compared to the same period in 2024[166] Investment and Cash Flow - The aggregate face value of policies held at fair value reached $1,430,721,703, with a corresponding fair value of $446,207,963 as of March 31, 2025[184] - Total realized gains, net of premiums paid, increased by 59.8% to $13,875,116 compared to $8,683,082 in the prior year[184] - Assets under management (AUM) grew to $2,542,185,454, a significant increase from zero in the same period last year[185] - The number of policies serviced surged by 223.7% to 2,415, compared to 746 in the previous year[185] - The total invested dollars increased by 1,057.2% to $2,556,019,697, up from $220,875,215 in 2024[185] - For the three months ended March 31, 2025, the company reported a net cash used in operating activities of $(61,590,694), a decrease of $(64,104,982) compared to a net cash provided of $2,514,288 in the same period of 2024[201] - The net cash used in investing activities increased to $(3,739,403) for the three months ended March 31, 2025, compared to $(253,793) in the prior year, reflecting a $(3,485,610) increase primarily due to a $(3,000,000) purchase of other investments[202] - Financing activities resulted in a net cash used of $(22,852,454) for the three months ended March 31, 2025, a decrease of $(60,389,803) from a net cash provided of $37,537,349 in the same period of 2024, mainly due to $(38,415,464) repayment of long-term debt[203] Shareholder and Company Outlook - The company has a share repurchase plan approved for $15,000,000, with $2,974,863 remaining available for repurchases as of March 31, 2025[197] - The company believes that current cash and cash equivalents, along with cash generated from operations, will be sufficient to support operating and debt service needs for the next 12 months[198] - The company experienced a $(51,171,210) change in life settlement purchase and sale activity and a $(21,721,963) increase in unrealized gains on life settlement policies during the three months ended March 31, 2025[201] - The company has not reported any material changes to its critical accounting policies or methodologies since its most recent Annual Report on Form 10-K[204] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[207]

Financial Results - Abacus Global Management, Inc. announced its financial results for the quarter ended March 31, 2025[4]. - A press release detailing the financial results is included as Exhibit 99.1[7]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]. Forward-Looking Statements - The report includes forward-looking statements regarding the company's public offering and other strategic initiatives[8]. Financial Metrics - The company has not disclosed specific financial metrics or performance indicators in the provided documents[4][5].

Valuation and Financial Risks - The company's valuation of life insurance policies is uncertain, as many values are tied to actual maturity dates, which could materially impact business performance [81]. - The company may fail to accurately forecast life expectancies, leading to lower returns on life settlement policies if people live longer than expected [90]. - The company assumes credit risk associated with life insurance companies, which may affect the realization of full value from insurance payouts [84]. - The company may not realize anticipated benefits from recent acquisitions, which could negatively impact business results and stock value [84]. - The company may experience difficulties in liquidating life insurance policies, which could adversely affect its financial position [84]. - The company assumes credit risk associated with life insurance policies, and the failure or bankruptcy of insurance companies could materially impact its profits [133]. - The insolvency of any insurance company could limit the value of life insurance policies and the collectability of face values, with state guaranty associations capping coverage at $300,000 or lower [134]. - The company may face litigation or claims related to acquisitions that could materially affect its business and financial results [174]. - The company may incur additional indebtedness in the future, which could adversely affect its financial and operational flexibility [193]. Market and Competitive Environment - The company faces increased competition from life insurance companies and brokers, which could adversely affect its ability to acquire quality life insurance policies [97]. - The secondary market for life insurance policies has grown, but the availability of policies may be limited, impacting the company's acquisition strategy [95]. - The life settlement industry faces negative public perception and political opposition, which could adversely affect the value and liquidity of the Company's investments [99]. - The Company may face challenges in realizing the anticipated benefits from the Carlisle Acquisition and the FCF Acquisition, which could adversely affect revenues and operating results [160]. - Integration of the acquired businesses may lead to the loss of key employees and customers, increased costs, and disruptions in ongoing operations [161]. Regulatory and Compliance Risks - Changes in tax regulations or interpretations could negatively affect the company's cash flows and operational results [84]. - Changes in legislation could classify life settlements as securities, imposing additional regulatory burdens and potentially limiting the Company's investment strategies [107]. - The Company must comply with U.S. state securities laws, and failure to do so could result in fines and sanctions that adversely affect its performance [112]. - The Company is subject to various U.S. privacy laws, including the GLBA and HIPAA, and violations could result in significant penalties and operational disruptions [119][120]. - The Company must comply with the EU General Data Protection Regulation (GDPR), and failure to do so could result in significant penalties [167]. - The Company is subject to various international regulatory requirements that could impose additional costs and operational challenges, impacting financial results [164]. Operational Risks - The company is subject to privacy and cybersecurity risks, which could have a material adverse impact on its operations [82]. - The Company faces privacy and cybersecurity risks related to the maintenance of proprietary information, which could lead to financial and reputational damage [114]. - The Company relies on third-party data for tracking life settlement policies, and failures in these systems could lead to financial losses and operational disruptions [102]. - There is a risk of fraud in the origination of life insurance policies, which could result in significant financial losses for the Company if policies are challenged [103]. - The Company must ensure timely premium payments on life insurance policies to avoid lapses, which could materially impact its business [127]. - Pandemics, rising interest rates, and inflation may disrupt the Company's ability to originate life settlement policies, adversely affecting its financial position [142]. - Failure to maintain adequate internal controls over financial reporting could lead to material weaknesses and errors in financial reporting [144]. Financial Position and Capital Structure - The company had outstanding indebtedness of approximately $381 million as of December 31, 2024, including $100 million under its Senior Secured Credit Facility [193]. - The company has an additional committed Delayed Draw Facility of up to $50 million available to be drawn subject to certain conditions [193]. - The Company has irrevocably elected to opt out of the extended transition period under the JOBS Act [360]. - As an emerging growth company, the Company will adopt new or revised accounting standards at the same time as public companies [361]. - Following the consummation of the Business Combination, the Company will comply with new or revised accounting standards on the relevant adoption dates for non-emerging growth companies [361]. - The Company’s ability to raise capital may be limited, affecting its investment strategy and financial condition [147]. - The stock repurchase program may not enhance long-term stockholder value and could increase stock price volatility [176]. - The company has not paid cash dividends in the past and does not expect to pay cash dividends in the foreseeable future [189]. - The company may issue additional securities, which could result in substantial dilution to existing stockholders [181]. - The market price of the company's Common Stock may be volatile due to various factors, including operating performance and market conditions [185]. - The company is subject to restrictive covenants under its Credit Agreement that could impact its operational flexibility [194].

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $28,148,491, an increase of 33.2% compared to $21,120,930 for the same period in 2023[199]. - Active management revenue increased to $26,967,575 for the three months ended September 30, 2024, up 42.5% from $18,926,144 in the prior year[199]. - Portfolio servicing revenue rose by $4,177, or 7.5%, to $59,847 for the three months ended September 30, 2024, compared to $55,670 in 2023[204]. - Total active management revenue for the nine months ended September 30, 2024, increased by $33,857,270, or 84.8%, reaching $73,778,331 compared to $39,921,061 in 2023[209]. - Total revenue for the active management segment increased by $33,857,270, or 84.8%, for the nine months ended September 30, 2024, compared to the same period in 2023[254]. - Total revenue for the originations segment increased by $2,424,020 for the nine months ended September 30, 2024, compared to the same period in 2023, representing a 123% increase[258]. Profitability Metrics - Gross profit for the three months ended September 30, 2024, was $25,960,510, compared to $17,755,973 in the same period of 2023, reflecting a 46.2% increase[199]. - Gross profit for the nine months ended September 30, 2024, increased by $33,181,368, or 87.6%, to $71,059,365 compared to $37,877,997 in 2023[219]. - Adjusted Net Income for the three months ended September 30, 2024, was $14,879,252, compared to $9,020,747 for the same period in 2023[264]. - Adjusted EPS for the three months ended September 30, 2024, was $0.20, compared to $0.14 for the same period in 2023[264]. - Adjusted EBITDA for the three months ended September 30, 2024, was $16,666,306, compared to $10,796,500 for the same period in 2023[270]. Expenses and Costs - Total cost of revenue for the three months ended September 30, 2024, was $2,187,981, a decrease from $3,364,957 in the prior year[199]. - Sales and marketing expenses increased by $465,043, or 27.3%, to $2,169,197 for the three months ended September 30, 2024, compared to $1,704,154 in 2023[220]. - General and administrative expenses increased by $5,650,552, or 57.4%, to $15,489,503 for the three months ended September 30, 2024, compared to $9,838,951 in 2023[223]. - General and administrative expenses for the nine months ended September 30, 2024, increased by $30,282,964, or 272.5%, to $41,396,346 compared to $11,113,382 in 2023[224]. - Cost of revenue (excluding depreciation and amortization) decreased by $1,169,425, or 34.8%, to $2,187,551 for the three months ended September 30, 2024, compared to $3,356,976 in 2023[216]. Losses and Financial Challenges - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(5,125,055), compared to net income of $903,361 in the same period of 2023[199]. - Loss on change in fair value of debt increased by $3,726,462, or 1202.6%, for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in the risk-free fair value of market-indexed notes[235]. - The company reported a net cash used in operating activities of $116,827,478 for the nine months ended September 30, 2024, compared to $50,232,674 for the same period in 2023, representing an increase of $66,594,804[280]. Cash Flow and Financing - Financing activities provided $111,815,591 of net cash during the nine months ended September 30, 2024, an increase of $57,555,987 compared to $54,259,604 in the same period of 2023[283]. - Cash flows from investing activities showed a net cash outflow of $1,167,166 for the nine months ended September 30, 2024, compared to a net inflow of $2,569,437 in the same period of 2023[282]. - The company has a share repurchase plan approved for $15,000,000, with $2,974,863 remaining available for repurchases as of September 30, 2024[278]. Operational Insights - The company operates in 49 states and the District of Columbia, holding licenses in 43 jurisdictions for life and viatical settlements[194]. - The company utilizes a proprietary "heat-map" technology platform to assess the risk and viability of life insurance policies, enhancing its origination and management processes[191]. - The number of policies serviced decreased by 329, or 21.4%, from 1,539 in 2023 to 1,210 in 2024[274]. - The value of policies serviced decreased by $984,218,408, or 29.9%, from $3,290,222,030 in 2023 to $2,306,003,622 in 2024[274]. - The number of policy originations to external parties increased by 57, or 167.6%, from 34 in 2023 to 91 in 2024[274]. Tax and Regulatory Matters - Income tax expense increased by $442,436, or 19.8%, for the nine months ended September 30, 2024, compared to the same period in 2023, driven by limitations on stock-based compensation expense deductions[247]. - Provision for income taxes for the six months ended June 30, 2023 was $2,289, primarily due to annual report filing fees[313]. Strategic Outlook - The company plans to support future capital requirements through revenue growth and potential acquisitions or investments in complementary businesses[277]. - The company operates as a single operating segment, with performance assessed based on total originations, revenue, gross profit, and adjusted EBITDA[314]. - Management uses non-GAAP financial measures, including Adjusted EBITDA, to evaluate business performance and make strategic decisions[315].

Financial Performance - Total revenue for Q3 2024 increased by 33% year-over-year to $28.1 million, up from $21.1 million in the prior-year period[3] - Adjusted net income grew 65% year-over-year to $14.9 million, compared to $9.0 million in the prior-year period, with adjusted diluted earnings per share at $0.20[3] - Adjusted EBITDA rose 54% year-over-year to $16.7 million, with an adjusted EBITDA margin of 59.2%, compared to 51.1% in the prior-year period[3] - Total revenues for Q3 2024 reached $28.15 million, a 33.2% increase from $21.12 million in Q3 2023[20] - Active management revenue increased to $26.97 million, up 42.5% from $18.93 million year-over-year[20] - Adjusted Net Income for Q3 2024 was $14.88 million, compared to $9.02 million in Q3 2023, reflecting a 64.5% increase[21] - Adjusted EBITDA for Q3 2024 was $16.67 million, with an adjusted EBITDA margin of 59.2%, compared to 51.1% in Q3 2023[23] - Total operating expenses for Q3 2024 were $19.11 million, an increase from $11.46 million in Q3 2023[20] - Gross profit for Q3 2024 was $25.96 million, compared to $17.76 million in Q3 2023, indicating a gross margin improvement[20] Policy Originations and Capital Deployment - The number of policy originations increased by 54% to 278 in Q3 2024, compared to 181 in the prior-year period, with origination capital deployment reaching $93.2 million[3] Acquisitions and Growth Initiatives - The company expects to close acquisitions of Carlisle Management and FCF Advisors, adding approximately $2.6 billion in assets under management by the end of Q4 2024, subject to regulatory approval[2] - The ABL Tech platform serves over 20 clients, with 23 more in negotiations, demonstrating significant growth in just eight months since its launch[2] - The company launched PREADISAN™, a health prediction and actuarial technology tool, in partnership with Lorisco, aimed at enhancing personalized financial solutions[2] Returns and Losses - GAAP net loss attributable to shareholders was $5.1 million, primarily due to a non-cash increase in warrant liability of $7.8 million[3] - Net loss attributable to common stockholders for Q3 2024 was $5.13 million, compared to a profit of $0.90 million in Q3 2023[21] - The company reported a loss on change in fair value of warrant liability of $8.77 million for Q3 2024, compared to a loss of $0.94 million in Q3 2023[21] Returns on Investment - Annualized return on invested capital (ROIC) for Q3 2024 was 21%, and annualized return on equity (ROE) was 23%[3] - Adjusted Annualized Return on Invested Capital (ROIC) improved to 20.6% as of September 30, 2024, up from 18.0% as of June 30, 2024[24] - Adjusted Annualized Return on Equity (ROE) increased to 23.1% for the period ended September 30, 2024, compared to 18.4% for the period ended June 30, 2024[25] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $19.4 million, with total assets amounting to $477.3 million[4][18]

Revenue Growth - Total revenues for Q2 2024 reached $29.08 million, a significant increase from $11.38 million in Q2 2023, representing a growth of 155.5%[200] - Active management revenue surged to $27.01 million in Q2 2024, compared to $11.02 million in Q2 2023, marking a 145.0% increase[200] - Portfolio servicing revenue increased by 240.5% to $84,218 in Q2 2024 from $24,737 in Q2 2023, driven by a rise in serviced policies[204] - The company’s origination revenue for Q2 2024 was $1.86 million, compared to no origination revenue in Q2 2023[200] - Active management revenue rose by $15,989,358, or 145.0%, for the three months ended June 30, 2024, driven by a net increase of $24,245,464 related to policies accounted for under the fair value method[206] - Total revenue for the active management segment increased by $15,989,358 or 145.0% for the three months ended June 30, 2024, compared to the same period in 2023[249] - Total revenue for the originations segment increased by $1,857,457 for the three months ended June 30, 2024, compared to the same period in 2023, with no prior revenue recorded[251] Profitability Metrics - Gross profit for Q2 2024 was $26.33 million, up from $10.41 million in Q2 2023, reflecting a growth of 153.0%[200] - Gross profit increased by $15,927,203, or 153.1%, for the three months ended June 30, 2024, primarily due to an increase in active management revenue driven by an increase in policies purchased[217] - Adjusted Net Income for Q2 2024 was $11,812,527, compared to $6,750,145 in Q2 2023, reflecting a significant increase of 75.7%[260] - Adjusted EPS for Q2 2024 was $0.19 (basic) and $0.18 (diluted), up from $0.13 (both) in Q2 2023, representing a 46.2% increase in basic EPS[260] - Adjusted EBITDA for Q2 2024 was $16,716,882, compared to $9,143,985 in Q2 2023, marking an increase of 82.8%[265] - The Adjusted EBITDA margin for Q2 2024 was 57.5%, down from 80.4% in Q2 2023, indicating a decrease in operational efficiency[265] Expenses and Losses - Operating income for Q2 2024 was $6.77 million, a decrease from $8.37 million in Q2 2023, indicating a decline of 18.9%[200] - Sales and marketing expenses increased by $1,868,960, or 273.3%, for the three months ended June 30, 2024, primarily related to an increase in advertising costs to support origination and active management growth strategy[220] - General and administrative expenses increased by $13,975,805, or 2,419.9%, for the three months ended June 30, 2024, primarily due to non-cash stock-based compensation expense and payroll expenses[222] - Interest expense increased to $4,529,187 for the three months ended June 30, 2024, compared to $584,075 for the same period in 2023, primarily due to various interest expenses[234] - Income tax expense increased by $573,139 or 48.4% for the three months ended June 30, 2024, compared to the same period in 2023[242] Investment Performance - Unrealized loss on investments increased by $1,035,418, or 153.9%, for the three months ended June 30, 2024, primarily due to changes in the fair value of S&P 500 options[226] - The average realized gain on policies sold under the investment method was 48.2% for the six months ended June 30, 2024, compared to 16.3% in the same period in 2023[208] - Realized gain on investments increased by $856,744 for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to the sale of S&P 500 options[228] - Loss on change in fair value of debt decreased by $245,766 or 17.0% for the three months ended June 30, 2024, compared to the same period in 2023[231] - Loss on change in fair value of debt increased by $1,513,428 or 63.1% for the six months ended June 30, 2024, compared to the same period in 2023[232] Cash Flow and Financing - Net cash used in operating activities for H1 2024 was $(64,542,510), an increase of $26,178,339 compared to $(38,364,171) in H1 2023[275] - Net cash provided by financing activities surged to $130,993,784 in H1 2024, compared to $35,983,097 in H1 2023, reflecting a significant increase of 263.5%[279] - The company has a $15,000,000 share repurchase plan approved in December 2023, with $2,974,863 remaining available for repurchases as of June 30, 2024[273] Policy and Market Activity - The number of policies serviced increased by 41.0% to 1,155 in the first half of 2024, compared to 819 in the same period of 2023[270] - The value of policies serviced rose by 38.6% to $2,526,819,484 in H1 2024, up from $1,823,437,795 in H1 2023[270] - Total invested dollars increased by 59.4% to $1,081,579,116 in H1 2024, compared to $678,400,432 in H1 2023[270] - The company operates in 49 states and the District of Columbia, holding licenses in 43 jurisdictions for life and viatical settlements[195] - Abacus operates in 49 states and the District of Columbia, holding licenses in 43 jurisdictions for life and viatical settlements[287] Historical Performance - For the three months ended June 30, 2023, total revenue was $6,884,690, with origination revenue contributing $1,689,088 and related-party revenue at $5,195,602[289] - Gross profit for the same period was $1,986,710, resulting in a gross margin of 29%[296] - The net loss for the three months ended June 30, 2023, was $318,098, with an adjusted EBITDA of $(310,867)[312] - For the six months ended June 30, 2023, total revenue reached $13,184,676, with origination revenue at $3,252,738 and related-party revenue at $9,931,938[289] - The gross profit for the six months was $3,891,373, yielding a gross margin of 30%[298] - The net loss for the six months ended June 30, 2023, was $974,901, with an adjusted EBITDA of $(957,207)[312]