Competition and Market Risks - The company faces increased competition from life insurance companies and investment funds, which could adversely affect its ability to acquire quality life insurance policies [97]. - The company is subject to significant competition for life settlement policies, which may limit access to desired policies at acceptable prices [98]. - The supply of life insurance policies in the secondary market may be reduced due to various factors, impacting the company's ability to execute its strategy [96]. - Historical negative public perception of the life settlement industry could affect the value and liquidity of the company's investments [99]. - The company may experience regulatory changes that could impose additional burdens and limit its investment capabilities [84]. Financial and Operational Risks - The company's financial condition may be adversely affected by its outstanding and future indebtedness, impacting operational flexibility [85]. - The Company has approximately $406 million in outstanding indebtedness as of December 31, 2025, which could limit financial flexibility and operational capacity [123]. - The Company has primarily funded its operations through the origination and management of life settlement policies, but it cannot guarantee sufficient cash flow for ongoing operations or growth [128]. - The Company may face challenges in liquidating life insurance policies, impacting its ability to meet cash flow needs [113]. - Increases in insurance premiums by life insurance companies could adversely affect the Company's investment returns and policy values [110]. Regulatory and Compliance Risks - The Company may be subject to claims from life insurance companies and regulatory authorities, which could negatively affect its business operations [103]. - The Company may face increased regulatory burdens if life settlements are classified as securities, which could materially impact its ability to conduct business [140]. - Compliance with U.S. privacy laws is critical, as failure to adhere could result in regulatory investigations, fines, and reputational harm [147]. - The Company is subject to the EU General Data Protection Regulation (GDPR), which imposes complex compliance requirements that could be costly [133]. - The Company may be required to register as an investment company under the Investment Company Act, which would necessitate a significant change in its business model [146]. Data Privacy and Cybersecurity Risks - The company faces privacy and cybersecurity risks related to proprietary information, which could materially impact its business [83]. - The Company is exposed to privacy and cybersecurity risks that could compromise proprietary information and disrupt business operations [106]. - The Company has implemented various policies to comply with data privacy and security laws, but failure to comply could result in government enforcement actions and negatively impact operations [151]. Management and Operational Integrity - The company's success depends on retaining experienced management and key employees, as their loss could harm competitive ability [85]. - The Company must maintain effective internal controls over financial reporting to prevent errors and ensure compliance as a public entity [125]. - The Company has faced challenges in certifying the effectiveness of its internal controls, which could lead to misstatements in its consolidated financial statements and regulatory scrutiny [127]. Investment and Market Volatility Risks - The Company may experience significant risks associated with investments in life insurance policies, which could lead to higher volatility and potential losses [166]. - The Company has broad discretion to issue additional securities, which may lead to substantial dilution for existing stockholders [160]. - The stock repurchase program may not enhance long-term stockholder value and could increase market price volatility [158]. - The market price of the Company's Common Stock may be volatile due to various factors, including operating performance and broader market conditions [163]. - The Company may be exposed to additional risks if it issues debt securities, which could restrict operations and adversely affect stock price [161]. Fraud and Data Reliability Risks - There is a risk of fraud in the origination and sale of life insurance policies, which could lead to significant investment losses for the Company [102]. - The Company faces risks related to the accuracy and reliability of third-party data used for tracking life settlement policies, which could adversely impact revenues [101]. - The Company may face material adverse effects from lawsuits questioning the insurable interest in life insurance policies, which could affect its business [152]. Foreign Operations and Currency Risks - The Company is subject to foreign currency risk due to operations in currencies other than the U.S. dollar, with significant fluctuations in exchange rates impacting financial results [135]. - The Company faces risks from international operations, including geopolitical instability and regulatory reforms that could adversely impact financial results [131].

Financial Performance - Fourth quarter 2025 total revenue increased by 116% to $71.9 million, compared to $33.2 million in the prior-year period[5] - Full year 2025 total revenues grew by 110% to $235.2 million, compared to $111.9 million in the prior year[8] - GAAP net income for the fourth quarter 2025 was $7.2 million, a significant improvement from a net loss of $18.3 million in the prior-year period[5] - Adjusted net income for the full year 2025 rose by 84% to $85.7 million, compared to $46.5 million in the prior year[8] - Adjusted EBITDA for the fourth quarter 2025 increased by 132% to $38.6 million, with an adjusted EBITDA margin of 54%[5] - Adjusted Net Income for Q4 2025 was $22,968,251, compared to $13,403,973 in Q4 2024, representing a year-over-year increase of 71%[29] - Adjusted EBITDA for Q4 2025 was $38,604,907, significantly higher than $16,633,028 in Q4 2024, reflecting a 132% increase[31] - The Adjusted EBITDA Margin for Q4 2025 was 54%, compared to 50% in Q4 2024, showing an improvement in operational efficiency[31] - The company reported a Net Income Margin of 10% for Q4 2025, a significant recovery from a margin of -57% in Q4 2024[31] Growth and Outlook - The company initiated its full year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to 2025[10] - Originations capital deployment for the full year 2025 was $580.8 million, an increase of 53% from the prior year[8] - Life solutions revenue for the year ended December 31, 2025, was $163.17 million, up from $104.96 million in 2024, representing a growth of approximately 55%[28] - Total Revenue for the year ended December 31, 2025, reached $235,237,636, up from $111,923,786 in 2024, indicating a growth of 110%[31] Profitability Metrics - Return on equity (ROE) for the full year 2025 was 20%, compared to 17% for the full year 2024[8] - Adjusted Annualized Return on Invested Capital (ROIC) improved to 21% in Q4 2025 from 11% in Q4 2024[32] - Adjusted Annualized Return on Equity (ROE) for Q4 2025 was 22%, up from 13% in Q4 2024, indicating enhanced profitability for shareholders[34] Asset and Liability Management - The company reported a total asset value of $902.24 million as of December 31, 2025, up from $874.16 million in 2024, reflecting an increase of approximately 3.9%[27] - Current liabilities increased to $148.59 million in 2025 from $62.47 million in 2024, marking a rise of approximately 137.5%[27] - The company’s total liabilities increased to $478.70 million in 2025 from $450.87 million in 2024, an increase of about 6.2%[27] - Cash and cash equivalents decreased to $38.11 million in 2025 from $131.94 million in 2024, a decline of about 71%[27] Strategic Initiatives - The company completed a strategic acquisition of AccuQuote to enhance its financial services capabilities[8] - The company approved an inaugural annual cash dividend of $0.20 per share and authorized a $20 million share repurchase program[8] - Business acquisition and project legal costs for Q4 2025 totaled $5,772,287, compared to $5,129,947 in Q4 2024, indicating ongoing investment in growth initiatives[31] - The company incurred Stock-Based Compensation of $5,149,800 in Q4 2025, down from $24,760,007 in Q4 2024, reflecting cost management efforts[31] Operating Performance - Gross profit for the year ended December 31, 2025, was $206.38 million, compared to $100.55 million in 2024, indicating a growth of about 105%[28] - Operating income for the year ended December 31, 2025, was $88.76 million, a significant improvement from an operating loss of $0.89 million in 2024[28] - Total Assets as of December 31, 2025, were $902,240,258, an increase from $874,164,752 in 2024[32]

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].