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Abacus Life(ABL) - 2025 Q1 - Earnings Call Transcript
ABLAbacus Life(ABL)2025-05-08 22:00
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Financial Data and Key Metrics Changes - Total revenue for Q1 2025 more than doubled year over year to 44.1millionfrom44.1 million from 21.5 million [6][13] - Adjusted net income increased to 17.3million,representinga15817.3 million, representing a 158% increase compared to 6.7 million in the prior year [15] - Adjusted EBITDA also more than doubled to 24.5million,withanadjustedEBITDAmarginof55.624.5 million, with an adjusted EBITDA margin of 55.6% compared to 53.9% in the prior year [15] - GAAP net income attributable to stockholders was 4.6 million, compared to a GAAP net loss of 1.3millionintheprioryear[15]BusinessLineDataandKeyMetricsChanges−LifeSolutionsrevenuewasakeydriver,withcapitaldeployedincreasing1281.3 million in the prior year [15] Business Line Data and Key Metrics Changes - Life Solutions revenue was a key driver, with capital deployed increasing 128% to 124.9 million in Q1 2025 compared to 54.6millionintheprioryear[13]−AssetmanagementrevenueforQ12025was54.6 million in the prior year [13] - Asset management revenue for Q1 2025 was 7.8 million, marking the first full quarter of asset management fees from acquisitions [14] Market Data and Key Metrics Changes - New AUM inflows of 151millionwererecorded,withapproximately151 million were recorded, with approximately 123 million coming from expanded private fund offerings launched in late February [9][10] - The real assets ETF saw an increase in net new inflows of 44millioninthefirstquarter[10][72]CompanyStrategyandDevelopmentDirection−Thecompanyaimstosolidifyitspositionasaleaderinalternativeassetmanagementandwealthmanagement,focusingonuncorrelatedassets[12]−ArebrandingtoAbacusGlobalManagementreflectsthecompany′sevolutionandexpandedglobalmarketpresence[10]−Thecompanyiscommittedtoexecutingitsgrowthstrategyandexpandingitsbrandrecognitionthroughanewadvertisingcampaign[10][12]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinnavigatingcurrentmarketvolatilityandachievingfull−year2025adjustednetincomeguidanceof44 million in the first quarter [10][72] Company Strategy and Development Direction - The company aims to solidify its position as a leader in alternative asset management and wealth management, focusing on uncorrelated assets [12] - A rebranding to Abacus Global Management reflects the company's evolution and expanded global market presence [10] - The company is committed to executing its growth strategy and expanding its brand recognition through a new advertising campaign [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and achieving full-year 2025 adjusted net income guidance of 70 million to 78million,implyinggrowthof5178 million, implying growth of 51% to 68% [6][16] - The macro environment remains uncertain, but the company believes it is well-positioned to capitalize on opportunities arising from market dislocations [9][12] Other Important Information - As of March 31, 2025, the company had cash and cash equivalents of 43.8 million and balance sheet policy assets of 448.1million[9][16]−Thecompanyhaspurchasedover448.1 million [9][16] - The company has purchased over 10 billion in face value of life insurance policies since February 2004 [10] Q&A Session Summary Question: Has there been an uptick in inquiries from policyholders since Liberation Day? - Management noted a noticeable increase in inquiries related to policyholder liquidity and investor demand for uncorrelated assets [20][21] Question: How does the company view the new repurchase authorization? - The company considers the repurchase option thoughtfully, evaluating stock valuation against return on equity from policies acquired [23][24] Question: Is the company fully deployed today? - Management confirmed that the capital deployment of nearly $125 million in Q1 was a record and indicated strong origination efforts [27][28] Question: What are the latest thoughts on the carrier buyback program? - Management reported ongoing activity in the carrier buyback program and noted increasing competition for assets [31][33] Question: Can you provide an update on technology solutions? - The technology solutions segment has nearly one million lives under management, with significant growth expected [41][42] Question: What is the mix of policy acquisitions? - Approximately 40% of policy flow was direct to consumer, 40% from financial advisors, and 20% from brokers [66] Question: What is the status of the AUM and advisor strategy? - The company reported significant inflows in both private funds and ETFs, with plans to grow the advisor strategy in the coming quarters [71][77]