Abacus Life(US:ABL)2025-11-07 21:02Revenue 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].