Abacus Q1 2025 presentation reveals 105% revenue growth, confirms 2025 guidance

Published 08/05/2025, 21:26
Abacus Q1 2025 presentation reveals 105% revenue growth, confirms 2025 guidance

Introduction & Market Context

Abacus Global Management (NASDAQ:ABL) presented its Q1 2025 investor presentation on May 8, 2025, showcasing exceptional financial performance with revenue and profits more than doubling year-over-year. The company, which rebranded from Abacus Life Inc. to reflect its evolution into a global asset manager, saw its stock trading at $8.38, up 1.58% from the previous close of $8.25.

The presentation highlighted Abacus’s continued momentum following its strong Q4 2024 results, when the company reported a 40% year-over-year revenue increase and saw its stock rise 7.69% in aftermarket trading. This positive trajectory appears to be accelerating in 2025, with Q1 showing even stronger growth rates across key metrics.

Quarterly Performance Highlights

Abacus reported remarkable financial results for Q1 2025, with total revenue reaching $44.1 million, representing a 105% increase compared to Q1 2024. The company’s profitability metrics showed even stronger growth, with adjusted net income surging 158% year-over-year to $17.3 million and adjusted EBITDA growing 111% to $24.5 million.

As shown in the following financial performance highlights:

The company maintained an impressive adjusted EBITDA margin of 56%, slightly higher than the 53.9% reported in the same period last year. GAAP net income attributable to shareholders was $4.6 million, a significant improvement from the net loss of $1.3 million in Q1 2024.

Other notable operational metrics included $125.9 million in capital deployed for policy purchases (a 131% year-over-year increase) and total inflows of $151 million. The company’s newly launched income fund vintages attracted $122.8 million in inflows during the quarter.

Business Model & Strategic Initiatives

Abacus operates through four interconnected business verticals that form the foundation of its growth strategy. These verticals create synergies that allow the company to leverage its expertise in life insurance, technology, asset management, and wealth advisory services.

The company’s business model is illustrated in the following diagram:

Abacus Life Solutions serves as the foundation of the business, transforming life insurance into a high-performing asset class. The division combines industry expertise with proprietary technology to source, price, and manage secondary life insurance assets at scale. With over $10 billion in face value of policies purchased since 2004, this segment provides stable earnings and uncorrelated investment products.

ABL Tech represents the company’s technological edge, offering innovative solutions including:

The technology division has significantly expanded its data analytics capabilities, with the number of lives tracked increasing from 127,851 to 1,598,536, providing valuable mortality and policy data for the company’s pricing algorithms and investment strategies.

Financial Analysis & Growth Trajectory

Abacus has demonstrated consistent financial growth over the past two years, with quarterly revenue increasing more than fourfold from $10.2 million in Q1 2023 to $44.1 million in Q1 2025. This growth trajectory is illustrated in the company’s historical financial KPIs:

The company’s asset management business has shown particularly impressive expansion, with assets under management growing from $125 million in 2023 to approximately $3 billion in 2025. This represents a 24x increase in just two years, with plans to reach $10 billion in the future.

The growth strategy for Abacus Asset Group is outlined in the following slide:

Additional key performance indicators show strong operational momentum across the business:

Forward-Looking Statements

Abacus confirmed its full-year 2025 guidance, projecting adjusted net income between $70 million and $78 million, representing growth of 51% to 68% compared to the $46.5 million achieved in fiscal year 2024.

The guidance details are presented in the following slide:

The company’s optimistic outlook is supported by its strong position as a global asset manager and continued growth in originations. This guidance aligns with the projections provided after Q4 2024 results, indicating management’s confidence in sustaining the growth momentum throughout 2025.

Abacus also announced its upcoming Investor Day and Longevity Summit, scheduled for June 11-12, 2025, in New York City. The event will focus on applying lifespan insights to financial products and provide shareholders with deeper insights into the company’s business model, current products, and future outlook.

Looking ahead, Abacus plans to continue expanding its asset management capabilities while maintaining a strong focus on recycling capital and managing its policy portfolio effectively. The company’s strategy of integrating its four business verticals positions it well to capitalize on opportunities in the alternative asset management space, particularly in longevity-based assets and ETF solutions.

Full presentation:

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