Abacus Global Management posts 124% revenue growth

Core Viewpoint - Abacus Global Management has reported its tenth consecutive quarter of earnings, showcasing consistent performance and growth in funding and origination capabilities, with a strong outlook into 2026 [1][2]. Financial Performance - Gross revenue increased by 124% year-over-year, while adjusted net income grew by 60% [2]. - The company has achieved earnings beats greater than 30% in six of the last ten quarters, indicating sustained performance [2]. Business Model and Strategy - Abacus operates as an active management company, monetizing contracts and policies on its balance sheet with strong margins of around 37% [3]. - The company has raised nearly $500 million in new capital this year, driven by strong institutional interest in uncorrelated yield [3]. Revenue Composition - 15% of Abacus's revenue is now recurring, and the recently launched dividend represents just over 20% of adjusted net income, allowing for capital return to shareholders while maintaining a return on equity (ROE) over 20% [4]. Recent Acquisitions - The acquisition of AccuQuote enhances client lifecycle coverage, enabling the company to offer better-suited policies and convert previously unmonetized leads into product sales [5][6]. - AccuQuote brings 30 years of experience and $150 million in issued premium, providing both new policy sales and potential legacy contract value [6]. Securitization and Balance Sheet Strength - A recent $50 million securitized asset transaction strengthens the balance sheet and supports future growth through scalable and competitive rates [7][8]. - The participation of insurance companies and banks in this transaction validates the valuations and underlying assets, while the company earns servicing fees for five years [8]. Market Position and Investor Appeal - Being added to the Russell 2000 and 3000 indexes enhances Abacus's visibility, attracting more capital from ETFs and investors seeking strong companies [9]. - The company is now a dividend-paying stock with a yield between 3.5% and 4.5%, placing it in a selective group among Russell 2000 companies [10].