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].
ET.RES.ACQ(ERESW) - 2025 Q3 - Quarterly Report