Abacus Global Management (NasdaqCM:ABL) Conference Transcript

Summary of Abacus Global Management Conference Call Company Overview - Company Name: Abacus Global Management (NasdaqCM: ABL) - Industry: Asset Management focused on life insurance assets - History: Over 20 years of operation, public for 10 quarters Key Financial Metrics - Q1 Revenue Growth: Year-over-year growth of over 100% in revenue [4] - Adjusted Net Income Guidance: Targeting approximately 80% year-over-year growth [4] - EBITDA Margin: Greater than 60% [4] - Return on Equity (ROE) and Return on Invested Capital (ROIC): Both over 20% [4] - Dividend Yield: Over 2.5% with the first annual dividend announced [6] - Market Valuation: Trading at a multiple of approximately 2.5 earnings, with expectations for growth [5] Business Model and Strategy - Core Business: Abacus operates as both an origination company and an asset manager, controlling the lifecycle of client assets [3] - Market Opportunity: Positioned in a $14 trillion life insurance industry, with a focus on acquiring life insurance policies as assets [7][10] - Recurring Revenue: Aiming to increase recurring revenue from 15% to 70% over the next three to five years [15] - Growth Strategy: Plans to triple revenue over the last two years and double it again in the next three years [16] Unique Selling Proposition - Regulatory Advantage: Licensed in every state to operate in a highly regulated market [10] - Data Utilization: Developed technology to track mortality with 99% accuracy within 48 hours, significantly outperforming traditional systems [18] - Asset Characteristics: Life insurance policies are typically A-rated, cash-reserved, and uncorrelated to market fluctuations [12][13] Growth Areas - Asset Management: Currently managing approximately $3-$3.5 billion in assets under management (AUM), with expectations to reach $10 billion in five years [26] - Technology Division: Significant growth in tracking lives for mortality data, expanding from 26,000 to 2.6 million lives monitored [29] - Wealth Advisory Services: Developing financial solutions based on lifespan data to assist clients in retirement planning [19] Market Position and Future Outlook - Market Penetration: Abacus is a dominant player in an underpenetrated market, with a unique position as the only public company in its industry with recurring revenue [7] - Securitization Plans: Launched its first securitization in October, with plans for more in 2026 to optimize capital costs [32] - Investor Engagement: Committed to educating investors about the business model and growth potential [36] Conclusion - Investment Opportunity: Abacus presents a compelling investment opportunity with strong growth metrics, a unique business model, and a significant market opportunity in the life insurance asset management space [36]