Abacus Global Management, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue reached a record $73.0 million in Q2 2026, a 30% year-over-year increase from $56.2 million in Q2 2025, driven by strong Life Solutions growth.
• GAAP net income was $6.6 million for Q2 2026, down 63% from $17.6 million in Q2 2025, attributed to strategic business expenses and personnel costs related to acquisitions and growth.
• Adjusted net income (Gross) was $27.1 million for Q2 2026, up 24% year-over-year from $21.9 million.
• Adjusted EPS (Gross) was $0.28 for Q2 2026, up 22% year-over-year from $0.23, based on diluted share count.
• Adjusted EBITDA grew to a record $39.9 million in Q2 2026, a 27% increase from $31.5 million in Q2 2025.
• Adjusted EBITDA margin was 54.7% in Q2 2026, compared to 56.1% in Q2 2025.
• Operating cash flow for the six months ended June 30, 2026, was $130.9 million, an increase of $116.4 million compared to $14.5 million in the prior-year period.
• Annualized ROIC increased to 23% in Q2 2026 from 22% in Q2 2025.
• Annualized ROE increased to 25% in Q2 2026 from 21% in Q2 2025.
• As of June 30, 2026, the company held $23.4 million in cash and cash equivalents, $383.0 million in balance sheet policy assets at fair value, and $330.6 million in total outstanding debt.

Guidance and Future Outlook

• Projects Q3 2026 Adjusted EPS of $0.26–$0.28, representing up to 17% year-over-year growth.
• Full-year 2026 Adjusted net income (Gross) guidance is $100 million to $106 million, implying 17% to 24% year-over-year growth with a midpoint of approximately 20%.
• Full-year 2026 Adjusted EPS (Gross) guidance is $1.00 to $1.05.

Business Segments and Product Lines

• Life Solutions revenue was the primary driver of growth, contributing significantly to the 30% total revenue increase.
• Launched the ABX Longevity Growth and Income Fund (ticker: ABXGX), the company's first registered interval fund dedicated to the longevity asset class, open to individual investors.
• Began tokenizing in-force life insurance policies to create an on-chain record of chain of title, liens, and cash-flow rights to enhance transparency and liquidity in the secondary market.
• Completed a $53 million minority equity investment in Manning & Napier, Inc. in May 2026.
• Established a live referral channel with Manning & Napier and began rolling out the LifeARC platform across their advisor network.

Market and Competitive Landscape

• Capital inflows for longevity funds in the first half of 2026 totaled $544.2 million, surpassing the $500 million target and exceeding the $604 million raised in all of 2025.
• Second-quarter capital inflows alone totaled approximately $256.1 million.
• The annualized turnover ratio was 2.0x in Q2 2026, within the long-term target range of 1.5x to 2.0x.
• Average realized gain was 25% in Q2 2026, exceeding the long-term target of 20% and reflecting strong origination discipline.

Risks and Challenges

• GAAP net income declined significantly due to strategic business expenses and personnel costs associated with acquisitions and growth across asset management, wealth management, and technology.
• Forward-looking statements are subject to uncertainties including economic conditions, interest rates, political instability, competition, and regulatory compliance.
• The company cannot provide a meaningful or accurate calculation for FY 2026 GAAP net income outlook due to the inherent difficulty in forecasting timing of non-recurring items and acquisition expenses.

Management Commentary and Tone

• CEO Jay Jackson described the quarter as a record quarter reflecting momentum in building the "intelligence layer for lifespan-linked finance."
• Management expressed high confidence in the business trajectory, citing the "flywheel" effect of new product launches, capital inflows, and strategic partnerships.
• The company views longevity and LifeARC as the foundation for how families plan and transfer wealth across generations.

Other Key Points

• Manning & Napier, Inc. has approximately $18 billion in total AUM and 3,400 clients.
• The company received SEC effectiveness for the ABX Longevity Growth and Income Fund following the quarter's end.
• The strategic alliance with Manning & Napier includes a live referral channel and platform rollout.
• The company generated $130.9 million in operating cash flow for the first half of 2026, demonstrating increasing cash generation capacity as longevity fund AUM scales.