Executive Summary / Key Takeaways

• Transformative Growth and Diversification: Abacus Global Management is rapidly evolving from a niche life settlement market maker into a diversified global alternative asset and wealth management platform, driven by strategic acquisitions and organic expansion across its Life Solutions, Asset Management, and ABL Tech segments.
• Technological Moat and Valuation Edge: ABL's proprietary longevity data, advanced actuarial technology, and AI-driven valuation models provide a significant competitive advantage, enabling superior policy pricing, efficient operations, and market-validated realized gains consistently above historical averages.
• Robust Financial Performance and Outlook: The company delivered exceptional Q2 2025 results with total revenue nearly doubling year-over-year to $56.2 million and adjusted net income surging 87% to $21.9 million. Full-year 2025 adjusted net income guidance was raised to $74-$80 million, signaling continued strong growth.
• Strategic Capital Deployment and Structure: ABL is efficiently deploying capital into high-return life settlement policies, maintaining a target of two portfolio turns per year, and has actively simplified its capital structure through warrant exchanges and share repurchases, enhancing shareholder value.
• Differentiated Competitive Stance: As the only publicly traded company in its core industry, ABL leverages its transparent, vertically integrated model and technological leadership to compete effectively against larger, more diversified financial services firms, capturing market share in a growing, less correlated asset class.

The Evolution of Abacus Global Management: Reshaping Longevity Assets

Abacus Global Management, Inc. (NASDAQ: ABL), founded in 2004 as Abacus Life, began with a clear mission: to unlock the inherent value of life insurance policies for consumers. This foundational expertise established ABL as a pioneering originator and market maker in the life settlement space, leveraging proprietary data related to health and lifespan. The company's public market debut, effective around June 30, 2023, marked a pivotal moment, providing the capital access necessary to accelerate its ambitious growth trajectory.

ABL's core business revolves around the acquisition, management, and monetization of life insurance policies. Its vertically integrated model is a significant differentiator, allowing the company to control price discovery through genuine market demand. ABL originates high-quality assets, strategically allocates a portion to its own managed funds, and syndicates the remainder to institutional third-party investors at market-driven prices. This direct control over the asset lifecycle is fundamental to its value proposition and competitive advantage.

The broader financial landscape currently presents a compelling backdrop for ABL's specialized offerings. There is a robust and growing demand for less correlated investments, particularly from institutional investors seeking diversification and yield in volatile markets. Simultaneously, policyholders are increasingly seeking liquidity solutions, driving higher origination volumes. This dual demand environment, coupled with the potential for lower interest rates to further stimulate investment into alternative assets, positions ABL favorably.

ABL's strategic response to these market dynamics has been aggressive expansion and diversification. The company rebranded from Abacus Life to Abacus Global Management in February 2025, a move reflecting its broadened global presence and diversified financial services portfolio. This strategic evolution is underpinned by a series of calculated acquisitions and organic growth initiatives designed to transform ABL into a comprehensive alternative asset and wealth management platform.

Technological Edge: Powering Longevity Solutions

At the heart of Abacus Global Management's competitive strategy lies its advanced technological infrastructure and proprietary data. The company leverages decades of experience, proprietary data analytics, and sophisticated actuarial technology focused on health and longevity. This technological edge is not merely a support function; it is a core driver of ABL's market leadership and financial performance.

ABL's core technology for policy valuation employs a discounted cash flow (DCF) model enhanced by Monte Carlo simulations. This approach uses a risk-based discount rate, which is dynamically calibrated to historical trade spreads, ensuring valuations reflect real-time market dynamics. For instance, in Q2 2025, the average discount rate used was 16%, within a range of 16-18%, informed by historical trade spreads averaging 22% (ranging 14-27% over the last eight quarters). This rigorous methodology, combined with a proprietary risk score (weighted average of 2.32 on a 1-5 scale), allows ABL to accurately assess policy values. The tangible benefit is clear: average realized gains on policy sales have consistently met or exceeded balance sheet marks, with Q2 2025 seeing an average realized gain of 26.3%, significantly above the historical average of 22%. This validates ABL's mark-to-market approach and demonstrates its ability to capture true market value.

Beyond valuation, ABL's technological differentiation extends to its ABL Tech division. This segment provides real-time mortality verification, missing participant verification, and other specialized services to pension funds, insurance companies, and asset managers. The PREADISAN tool, developed in partnership with Lorisco, represents a significant R&D initiative. This revolutionary health prediction and actuarial technology combines blood-based proteomic biomarker analysis with AI-driven models to assess mortality risks, offering personalized longevity forecasting. The stated goal is to provide "highly tailored financial solutions" and "more accurate and personalized services."

The "so what" for investors is profound. These technological capabilities form a robust competitive moat, enabling ABL to achieve superior policy pricing, maintain highly efficient operations, and generate new, recurring revenue streams through ABL Tech. The ability to offer precise valuations and innovative health prediction tools enhances client acquisition and retention, directly contributing to ABL's financial performance and long-term growth strategy. ABL Tech's market-leading differentiation is evident in its success, having won four out of five RFPs against incumbent vendors and expecting to track over one million lives by Q1 2025. This segment is projected to become a material contributor to earnings by summer 2026.

A Diversified Growth Engine: Segment Performance and Strategic Acquisitions

Abacus Global Management's recent financial performance underscores the effectiveness of its diversified growth strategy and the successful integration of its strategic acquisitions. The company reported a stellar second quarter of 2025, with total revenue nearly doubling year-over-year to $56.2 million, a 93% increase from $29.1 million in Q2 2024. This growth translated into robust profitability, with adjusted net income surging 87% to $21.9 million and adjusted EBITDA increasing 89% to $31.5 million, maintaining a healthy 56.1% adjusted EBITDA margin.

The Life Solutions segment remains a primary revenue driver, posting $47.30 million in Q2 2025, a 63.8% increase year-over-year. This was largely fueled by a $49.64 million increase in realized gains from policy sales, demonstrating strong investor demand and efficient monetization of assets. Operationally, ABL purchased 250 policies and sold 399 in Q2 2025, resulting in an annualized turnover ratio of 2.3x, exceeding its long-term target of 1.5x-2x due to strong market demand. Policies held on the balance sheet totaled 600 with a value of $387.3 million as of June 30, 2025, reflecting a strategy to maintain an average holding period of four to six months and target two portfolio turns per year.

The Asset Management segment experienced explosive growth, with Q2 2025 revenue soaring to $8.76 million, a 4176.4% increase from Q2 2024. This dramatic rise is directly attributable to the late 2024 acquisitions of Carlisle Management Company and FCF Advisors. Carlisle, a Luxembourg-based life settlement investment manager, added approximately $2 billion in AUM, expanding ABL's international footprint and institutional offerings. FCF Advisors, a New York-based asset manager specializing in free cash flow-focused ETFs, contributed around $600 million in AUM, accelerating the growth of ABL Wealth. These acquisitions have significantly broadened ABL's capabilities, attracting $142 million in new AUM inflows in Q2 2025, with ETFs contributing $11 million net.

The nascent Technology Services segment, which commenced revenue activity in December 2024, generated $161,900 in Q2 2025. While currently incurring gross losses due to compensation expenses, this segment is strategically vital. It leverages ABL's proprietary data to offer mortality verification and other services to institutional clients, with management projecting it to become a material earnings contributor by summer 2026.

Consolidated gross profit for Q2 2025 reached $50.17 million, up 90.5% year-over-year, driven by increased policy purchases and asset management fees. Operating expenses, excluding non-cash items, increased due to higher legal and professional fees, increased payroll from acquisitions, and elevated marketing spend aimed at driving future origination. The company's adjusted return on equity (ROE) stood at 21% and adjusted return on invested capital (ROIC) at 22% for Q2 2025, reflecting its highly profitable business model.

Competitive Arena: Differentiating in a Dynamic Market

Abacus Global Management operates in a dynamic financial services landscape, competing with both specialized life settlement firms and larger, diversified financial institutions. While precise market share figures for all niche competitors are not publicly detailed, ABL's unique positioning as the only publicly traded company in its core industry provides distinct advantages in capital access and market messaging.

Comparing ABL to established players like Voya Financial (VOYA), Lincoln National Corporation (LNC), AIG (AIG), and Primerica (PRI) reveals ABL's strategic differentiation. ABL's gross profit margin of 85% (TTM) is competitive, and its operating profit margin of 23.38% (TTM) and EBITDA margin of 28.95% (TTM) are comparable to or exceed those of some larger, more diversified competitors. For instance, VOYA and AIG reported TTM operating and EBITDA margins around 14%, while LNC and PRI were closer to 22-23%. This indicates strong operational efficiency within ABL's specialized model.

ABL's competitive moat is built on several pillars. Its vertically integrated model, from origination to asset management and technology, allows it to "control its own destiny" in price discovery and asset deployment. The company's proprietary longevity data and advanced actuarial technology, as discussed, provide a valuation edge and enable superior policy acquisition. Furthermore, ABL's transparent pricing model and performance are actively promoted by CEO Jay Jackson as key differentiators, contrasting with less transparent industry practices. This commitment to transparency is a strategic response to competitive pressures, as evidenced by the company's lawsuit against Coventry First LLC for alleged defamation and anticompetitive conduct, where ABL claims Coventry is "losing market share" due to ABL's superior model.

Despite these strengths, ABL faces vulnerabilities inherent in its smaller scale compared to financial giants like AIG, which can command vast resources for R&D and global expansion. ABL's current ratio of 0.76 (TTM) is lower than most diversified competitors, indicating tighter short-term liquidity, though management asserts sufficient liquidity. The intense competitive environment, highlighted by the lawsuit, underscores the need for ABL to continuously leverage its technological and operational efficiencies to maintain its market position. Barriers to entry in the life settlement industry, such as regulatory approvals, capital requirements, and specialized expertise, help protect ABL's niche but also favor larger, well-capitalized entities. ABL's strategy of expanding into adjacent industries and forming strategic partnerships, such as with Amcor for distribution and Dynasty Financial Partners for wealth management solutions, is crucial for broadening its reach and mitigating these scale-related disadvantages.

Financial Strength and Capital Allocation

Abacus Global Management's financial health and capital allocation strategy reflect a company in a rapid growth phase, balancing aggressive expansion with prudent balance sheet management. As of June 30, 2025, ABL maintained a cash and cash equivalents balance of $74.8 million, supported by $387.3 million in balance sheet policy assets. Total long-term debt stood at $357 million. Management affirms that current liquidity, combined with cash generated from operations, is sufficient to cover operating and debt service needs for the next 12 months.

The company's cash flow generation has shown significant improvement. For the six months ended June 30, 2025, operating activities provided $14.51 million in net cash, a substantial increase of $79.05 million year-over-year. This was primarily driven by a $65.48 million increase in net life settlement sales and a $23.63 million increase in net income. Investing activities utilized $13.74 million, largely for a $7.00 million note receivable and the $2.10 million NIB acquisition. Financing activities used $57.88 million, reflecting a decrease in proceeds from prior stock issuances, increased share repurchases, and debt repayments.

ABL has been proactive in optimizing its capital structure. In late 2024, it successfully raised $181.7 million in additional equity and secured a new $150 million private debt-financing facility, providing ample capital for growth without immediate reliance on further equity raises. The company is also committed to enhancing shareholder value through capital returns; a new $20 million share repurchase program was authorized in June 2025, with $2.92 million remaining available as of June 30, 2025. Furthermore, ABL completed an exchange offer and consent solicitation for its outstanding warrants in July 2025, successfully tendering 88% of warrants at 0.23 shares per warrant, with the remainder converting at 0.207 shares. This move significantly simplifies its capital structure and reduces potential dilution.

Outlook and Investment Thesis: A Clear Path Forward

Abacus Global Management's outlook for 2025 and beyond is one of sustained, profitable expansion, underpinned by its differentiated business model and strategic initiatives. The company recently raised its full-year 2025 adjusted net income guidance to between $74 million and $80 million, up from a prior range of $70 million to $78 million. This revised guidance implies robust year-over-year growth of 59% to 72% compared to the $46.5 million adjusted net income reported in 2024.

Management anticipates continued growth in the second half of 2025, acknowledging potential macroeconomic uncertainties but highlighting historical trends of stronger performance in Q3 and Q4. Key assumptions driving this optimistic outlook include sustained high origination volumes, fueled by increased marketing spend and new distribution partnerships. The successful integration of the Carlisle and FCF Advisors acquisitions is expected to continue driving significant contributions to asset management fees and AUM. Furthermore, the ABL Tech division, with its growing client base and strong RFP win rate, is on track to become a material earnings contributor by summer 2026, adding a valuable stream of recurring fee-based revenue.

The core investment thesis for ABL centers on its unique position as a vertically integrated originator, market maker, and asset manager in the longevity economy. Its proprietary technology and data analytics provide a distinct competitive edge in policy valuation and operational efficiency, translating into consistent, market-validated realized gains. Strategic acquisitions have diversified its revenue streams and expanded its global footprint, while prudent capital management and a simplified capital structure enhance shareholder value.

However, investors should consider certain risks. Macroeconomic volatility could impact investor demand or policyholder behavior. The ongoing legal dispute with Coventry First LLC highlights intense competitive pressures and the potential for reputational challenges, though ABL is vigorously defending its practices. The upcoming redemption window for LMAIS II debt in March 2026, while deemed manageable by management, represents a significant liquidity event to monitor. Despite these factors, ABL's resilient business model, technological leadership, and clear strategic roadmap position it for compelling long-term growth.

Conclusion

Abacus Global Management is executing a powerful transformation, leveraging its deep roots in life settlements to build a diversified global alternative asset and wealth management powerhouse. The company's vertically integrated model, underpinned by proprietary longevity data and advanced AI-driven technology, provides a formidable competitive advantage in a market hungry for less correlated assets and liquidity solutions. This technological leadership is not merely theoretical; it translates directly into superior policy valuation, efficient operations, and consistently strong realized gains, validating ABL's mark-to-market approach.

The robust financial performance in Q2 2025, marked by near-doubling revenue and surging adjusted net income, coupled with a raised full-year guidance, signals strong momentum. ABL's strategic acquisitions have significantly expanded its addressable market and recurring revenue streams, while proactive capital management and a simplified capital structure enhance its financial flexibility. As the company continues to expand its ABL Tech and Asset Management segments, its unique competitive positioning as the only publicly traded player in its core industry, combined with its commitment to transparency and innovation, positions Abacus Global Management for sustainable, profitable growth, making it a compelling consideration for discerning investors.