Record Financial Performance in 2025

As Abacus closes out 2025, Jackson emphasizes the company’s proprietary ownership model, where nearly 80% of employees are shareholders. This alignment of interests has driven impressive results, including:

• Revenue Growth: Year-over-year revenue increased by 124%.
• Adjusted Net Income Growth: An impressive rise of 60%.
• EBITDA Growth: A remarkable 127% increase alongside 60% margins.
• Earnings Expectations: The company has outperformed earnings forecasts for 10 consecutive quarters.

Updated Financial Guidance and Earnings Outlook

With consistent performance through Q3, Abacus has raised its full-year adjusted net income guidance to between $80 million and $84 million, which translates to a 72% to 81% growth compared to the previous year. This substantial growth is setting a new benchmark for both earnings and cash flow, aiding Abacus’s transition to a more robust, recurring revenue model.

Understanding the Abacus Flywheel

Abacus’s operational model, referred to as the Abacus Flywheel, integrates four key divisions:

• Life Solutions: The division focuses on sourcing and managing life insurance assets.
• Asset Group: Packages these assets into longevity funds offering risk-adjusted returns.
• ABL Tech: Enhances platform efficiency with mortality verification services, benefiting over 100 pension funds and institutions.
• Wealth Advisors: Provides personalized financial planning informed by longevity insights.

This comprehensive structure enables Abacus to optimize its revenue streams, generating income from origination gains, management fees, servicing fees, and advisory services.

Transition to Recurring Revenue Model

Currently, approximately 15% of Abacus's revenue is derived from fee-related earnings. The company's long-term goal is to achieve a 70% share of recurring income, particularly as its ABL Tech and Wealth Advisors divisions expand. The total assets under management have climbed to $3.33 billion, up from $2.96 billion earlier this year.

This shift towards predictable, stable income is vital, as asset managers with consistent revenue streams attract higher valuations.

Milestones: Investment Grade Securitized Product Offering

In one of its significant achievements, Abacus completed a $50 million investment grade securitized offering backed by life insurance assets. This not only diversifies the company’s institutional reach but also enhances their underwriting and portfolio management capabilities.

Jackson noted, "This transaction validates our strong operational expertise and will serve as a foundation for future funding strategies." Abacus's ongoing role as the servicer of these securitized assets further reinforces the recurring revenue and visibility into asset performance.

Introducing Asset-Based Finance Strategy

Looking ahead to 2026, Abacus plans to unveil an asset-based finance (ABF) strategy aimed at accelerating AUM and fee-related earnings growth. This strategy will leverage third-party capital in sectors like:

• Asset-backed lending
• Structured credit
• Corporate asset-based credit

The ABF market is vast, presenting over $20 trillion in opportunities, particularly appealing to institutional investors seeking stable and predictable cash flows.

Strategic M&A Activity: AccuQuote Acquisition

In 2025, Abacus expanded its capabilities by acquiring AccuQuote, a leading digital life insurance origination platform. This acquisition strengthens Abacus’s flywheel by increasing its consumer outreach and providing opportunities to convert leads into revenue through innovative policy solutions.

Capital Allocation Strategy

Abacus is also implementing a robust capital allocation strategy, including an annual dividend of $0.20 per share and a 10 million share repurchase program. This reflects confidence in the established business model and commitment to returning value to shareholders as the shift toward recurring revenue continues.

Conclusion: Strengthening Financial Position

As Abacus Global Management (ABX) moves forward, the company's financial health remains strong with record cash generation levels and increasing inflows into its longevity funds. These developments position Abacus for future growth, underscoring its strategic focus on transitioning to a recurring revenue framework.