Abacus Global Management Q2 2025 slides: revenue doubles as company raises guidance

Introduction & Market Context

Abacus Global Management, Inc. (NASDAQ:ABL) presented its Q2 2025 earnings results on August 7, 2025, showcasing substantial growth across all business segments despite challenging market conditions. The global alternative asset manager, which focuses on longevity-based assets and ETF solutions, reported nearly doubled revenue compared to the same period last year, while also raising its full-year guidance.

The company’s strong performance comes amid a period of stock volatility, with shares closing at $5.50 on the day of the presentation, down 0.9% for the session. This represents a significant decline from earlier in the year when the stock traded above $9 following Q1 results, suggesting a disconnect between operational performance and market valuation.

Quarterly Performance Highlights

Abacus reported exceptional financial results for Q2 2025, with revenue nearly doubling year-over-year to $56.2 million compared to $29.1 million in Q2 2024. Adjusted net income grew to $21.9 million from $11.7 million in the prior year period, while adjusted EBITDA increased to $31.5 million from $16.7 million. GAAP net income showed dramatic improvement at $17.6 million versus just $0.7 million a year earlier.

As shown in the following chart of quarterly financial performance:

The company maintained strong profitability metrics, including a 56% adjusted EBITDA margin, 21% adjusted annualized ROE, and 22% adjusted annualized ROIC. These figures underscore the company’s ability to generate substantial returns from its business model.

The historical trend of key financial indicators demonstrates consistent growth over the past two years:

Capital deployment for policy purchases reached $121.8 million in Q2 2025, representing a 16% year-over-year increase. The company also reported significant inflows of $123.1 million into its longevity funds during the quarter, contributing to total inflows of $142 million.

Business Model and Strategic Initiatives

Abacus Global Management operates through four integrated business verticals that form the foundation of its value proposition:

The company’s core business revolves around transforming life insurance into an investment asset class through its Abacus Life Solutions division. This segment serves as the origination engine for longevity funds, with excess production sold to third-party investors. The company’s competitive advantages include market leadership, decades of accumulated data, sophisticated pricing models, a national distribution network, and institutional partnerships.

As illustrated in the following breakdown of their life solutions business:

The asset origination platform continues to show strong momentum, with 3,101 policies reviewed year-to-date and relationships with over 78 institutional origination partners. The company’s servicing capabilities now cover 2,860 policies with a total face amount of $6.2 billion.

Abacus Asset Group manages approximately $3.3 billion in assets across various categories, including $2.2 billion in longevity funds and $825.9 million in ETFs:

The company’s technology division, ABL Tech, provides mortality intelligence services with national coverage of 97% and false positive rates below 1%. This technology component has shown explosive growth, with a 17x year-over-year increase in lives tracked, now serving over 100 government and union systems.

Forward Guidance and Outlook

Based on strong year-to-date performance, Abacus has raised its full-year 2025 guidance for adjusted net income from the previous range of $70-78 million to a new range of $74-80 million. This updated guidance implies year-over-year growth of 59% to 72%.

The following slide illustrates the company’s updated guidance:

Management expressed confidence in the company’s positioning, noting that they are "well-positioned for a strong 2025 to firmly solidify Abacus as a leading global alternative asset manager." They attribute this optimistic outlook to the strength of their origination platform and expanded business verticals.

The company’s performance metrics also show strong realized gains, with average realized gains trending between 21% and 27% for Q2 2025:

Stock Performance and Valuation

Despite the strong operational results and raised guidance, Abacus Global Management’s stock has faced pressure in recent months. After trading as high as $9.05 following Q1 2025 results (an 8% gain in aftermarket trading at that time), the stock has declined significantly to its current level of $5.50.

This price sits near the lower end of its 52-week range of $4.60 to $11.86, suggesting a potential disconnect between the company’s financial performance and its market valuation. The contrast is particularly striking given the company’s consistent revenue growth, strong profitability metrics, and raised guidance.

The company completed a warrant exchange offer during the quarter, which may have impacted its capital structure and contributed to stock price volatility. However, the fundamental business performance remains strong, with the company highlighting its ability to maximize shareholder value through robust financial performance, technological innovation, and strategic initiatives:

As Abacus continues to execute on its strategy of vertical integration across the entire asset value chain, investors will be watching closely to see if the stock price eventually aligns with the company’s operational performance and growth trajectory.

Full presentation:

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