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 up from $9,947,038 in 2024, reflecting 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 59.2% in 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) 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) increased by $14,500,083 or 35.0% for the nine months ended September 30, 2025, mainly due to payroll expenses and legal fees[219]. - Sales and marketing expenses rose 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]. - The company incurred business acquisition and special legal costs of $5,941,429 for the three months ended September 30, 2025, compared to $1,948,118 in 2024[267]. Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, totaled $86,418,953, down from $131,944,282 at the end of 2024[290]. - Net cash used in operating activities improved from $(116,827,478) in 2024 to $(18,240,847) in 2025, an increase of $98,586,631[296]. - Investing activities used $(13,979,145) of net cash during the nine months ended September 30, 2025, compared to $(1,167,166) in the same period of 2024, reflecting an increase of $(12,811,979) primarily due to a $(7,000,000) note receivable issuance[297]. - 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]. - The average management fee on Longevity Funds was 1.37% in Q3 2025, a new metric introduced[288]. - The company sold approximately 51% of the policies on the balance sheet as of December 31, 2024, and redeployed a majority of that capital to purchase additional policies[208]. 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]. - Total lifetime gains, net of lifetime premiums paid, increased by 371.5% from $9,002,179 in 2024 to $42,446,139 in 2025[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]. - Unrealized loss on equity securities decreased by $417,677 or 100.0% for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to investments in S&P 500 options sold in 2024[222]. - Unrealized gain on equity securities decreased by $1,220,161 or 100.0% for the nine months ended September 30, 2025, compared to the same period in 2024, mainly due to investments in S&P 500 options sold in 2024[223]. 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, driven by an increase in net income[237]. - The estimated tax impact for the nine months ended September 30, 2025, is $11,096,742, compared to $2,803,760 in 2024, reflecting changes in tax expenses[276]. - 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].
EAST RESOURCES A(ERES) - 2025 Q3 - Quarterly Report