Abacus Life(ABL) - 2025 Q4 - Annual Results

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 full year 2025 was $36.5 million, compared to a net GAAP loss of $23.9 million in the prior year[8] - Adjusted net income for the full year 2025 increased by 84% to $85.7 million, compared to $46.5 million in the prior year[8] - Adjusted EBITDA for the fourth quarter of 2025 increased by 132% to $38.6 million, with an adjusted EBITDA margin of 54%[5] - 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] - Adjusted EBITDA for the year ended December 31, 2025, reached $132,553,833, up from $61,592,431 in 2024, reflecting a strong growth trajectory[31] - The adjusted net income for the year ended December 31, 2025, was $85,660,633, compared to $46,521,713 in 2024, representing an increase of 84%[32] - The adjusted EBITDA margin for the year ended December 31, 2025, was 56%, compared to 55% in 2024, indicating stable profitability[31] Growth Metrics - 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 full year 2025[10] - Annualized return on equity (ROE) for the fourth quarter of 2025 was 22%, compared to 13% in the prior year[8] - Annualized return on invested capital (ROIC) for the fourth quarter of 2025 was 21%, compared to 11% in the prior year[8] - The adjusted annualized return on invested capital (ROIC) improved to 20% for the year ended December 31, 2025, compared to 15% in 2024[32] - The adjusted annualized return on equity (ROE) for the three months ended December 31, 2025, was 22%, up from 13% in the same period of 2024[34] Revenue and Profitability - Total revenues for the year ended December 31, 2025, reached $235.24 million, a significant increase from $111.92 million in 2024, representing a growth of approximately 110%[28] - 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] - The company reported a significant increase in life solutions revenue, which rose to $163.17 million in 2025 from $104.96 million in 2024, marking a growth of approximately 55%[28] - Earnings per share (diluted) for the year ended December 31, 2025, was $0.36, compared to a loss of $0.34 in 2024[28] - The adjusted earnings per share (EPS) for the three months ended December 31, 2025, was $0.24, compared to $0.16 in 2024, reflecting a 50% increase[29] Asset and Liability Management - Current liabilities increased to $148.59 million in 2025 from $62.47 million in 2024, reflecting a rise of about 138%[27] - Cash and cash equivalents decreased to $38.11 million in 2025 from $131.94 million in 2024, a decline of approximately 71%[27] - The total assets of the company increased to $902.24 million in 2025, up from $874.16 million in 2024, representing a growth of about 3%[27] - The company’s long-term debt increased to $275.78 million in 2025 from $224.74 million in 2024, an increase of approximately 23%[27] - Total assets as of December 31, 2025, were $902,240,258, an increase from $874,164,752 in 2024[32] Strategic Initiatives - The company completed a strategic acquisition of AccuQuote to enhance its financial services capabilities[8] - Originations capital deployment for the full year 2025 was $580.8 million, an increase of 53% from the prior year[8] - Stock-based compensation for the three months ended December 31, 2025, was $5,149,800, down from $24,760,007 in the same period of 2024, suggesting improved cost management[31] Quarterly Performance - For the three months ended December 31, 2025, Abacus Global Management reported a net income of $7,226,649, a significant improvement compared to a net loss of $(19,009,504) for the same period in 2024[29]