Abacus Life(ABL) - 2025 Q1 - Quarterly Report

Revenue Growth - Total revenues for the three months ended March 31, 2025, were $44,139,346, a significant increase of$22,652,162 or 105.5% 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 3,466.7$36,298,657, an increase of $15,029,408 or 70.7$21,269,249 in the prior year, driven by unrealized gains from life insurance policies[152]. - Revenue from the Asset Management segment was $7,773,077 for the three months ended March 31, 2025, a significant increase of$7,555,142 or 3466.7% compared to 2024[168]. - Revenue from the Life Solutions segment increased by $15,029,408, or 70.7$36,298,657 for the three months ended March 31, 2025 compared to $21,269,249 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, attributed to higher active management revenue[155]. - Operating income for the period was$21,026,964, compared to $2,253,129 in the same quarter of 2024, marking a substantial improvement[150]. - The net income attributable to common stockholders for the three months ended March 31, 2025, was$4,639,583, a turnaround from 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 in 2024[178]. - For the three months ended March 31, 2025, the net income was$5,399,026 compared to a net loss of $1,275,471 in the same period of 2024, representing a significant turnaround[182]. Expenses - Sales and marketing expenses increased by$686,056 or 35.5% to $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% to $12,263,786, influenced by payroll expenses related to business acquisitions and legal fees[158]. - Depreciation and amortization expenses increased by$3,076,492 or 182.9% to $4,758,546, linked to the amortization of intangible assets from acquisitions[159]. - Interest expense was$9,618,330 for the three months ended March 31, 2025, an increase of $5,947,885 or 162.0$3,670,445 in 2024[164]. - Income tax expense rose by $1,160,572, or 98.9$43,761,731 as of March 31, 2025, down from $131,944,282 at the end of 2024, indicating a need for careful liquidity management[196]. - For the three months ended March 31, 2025, the company reported a net cash used in operating activities of$(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[202]. - 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, primarily due to a $(3,000,000) purchase of other investments[203]. - Financing activities resulted in a net cash used of$(22,852,454) for the three months ended March 31, 2025, a decrease of $(60,389,803) compared to 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[204]. Investments and Assets - The total realized gains, net of premiums paid, increased to$13,875,116, a 59.8% increase from $8,683,082 in the previous year[184]. - 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]. - Assets under management (AUM) stood at$2,542,185,454, a significant increase from the previous year[185]. - The number of policies serviced surged to 2,415, up 223.7% from 746 in the same period of 2024[185]. - The total invested dollars increased to $2,556,019,697, reflecting a 1057.2$220,875,215 in 2024[185]. Future 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[198]. - Future capital requirements will depend on revenue growth and expansion activities, with potential plans for additional equity or debt financing[197]. Accounting and Reporting - The company has not reported any material changes to its critical accounting policies or methodologies since the last Annual Report on Form 10-K[205]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[208].