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

Financial Performance:

• Total revenue for the third quarter of 2026 was $76.9 million, a 22% year-over-year increase from $63.0 million in the prior-year period.
• GAAP net income was $14.5 million, up 105% from $7.1 million in the third quarter of 2025.
• Adjusted net income (Gross) reached a record $29.4 million, a 24% increase year-over-year from $23.6 million.
• Adjusted earnings per share (Gross) was $0.29, up 20% year-over-year from $0.24.
• Adjusted EBITDA grew to a record $42.3 million, a 12% increase from $37.9 million in the prior-year period.
• Adjusted EBITDA margin was 55.0% in the third quarter of 2026, down from 60.2% in the prior-year period.
• Operating cash flow for the nine months ended September 30, 2026, was $167.4 million, compared to a negative $18.2 million in the same period of 2025.
• Total outstanding debt, net of deferred issuance costs and discounts, was $405.0 million as of September 30, 2026.
• Cash and cash equivalents stood at $104.0 million as of September 30, 2026.
• Annualized Return on Invested Capital (ROIC) was 21%, matching the prior-year period.
• Annualized Return on Equity (ROE) was 26%, an increase of 440 basis points from 22% in the prior-year period.
• Average realized gain was 24%, exceeding the long-term target of 20% and down from 37% in the prior-year period.

Guidance and Future Outlook:

• Full-year 2026 Adjusted Net Income guidance was raised to $104.5–$106.5 million, implying 22% to 24% year-over-year growth.
• Fourth Quarter 2026 Adjusted EPS is projected at $0.28–$0.30, representing up to 30% year-over-year growth.
• Management noted revenue growth of at least 20% in every quarter reported as a public company.
• The company raised its outlook for the second time in 2026.

Business Segments and Product Lines:

• Longevity fund inflows totaled $452.4 million in the third quarter, more than six times the prior-year period.
• Year-to-date longevity fund inflows through the third quarter were approximately $997 million, compared to $604 million for all of 2025.
• The company launched the ABX Longevity Growth and Income Fund (ticker: ABXGX) in July, its first registered interval fund dedicated to the longevity asset class.
• In September, Abacus completed a $400 million securitization collateralized by a diversified portfolio of life insurance policies, which received an investment-grade rating and was oversubscribed.
• Early inquiries regarding LifeARC represent more than $500 million of self-reported investable assets.

Market and Competitive Landscape:

• The company focuses on longevity-based assets and personalized financial planning, leveraging proprietary data analytics to price longevity.
• Insurance companies buying into securitizations of over $400 million are cited as a strong vote of confidence in the company's data and underwriting.
• Management stated that demand for their platform is far larger than initial expectations.

Risks and Challenges:

• Forward-looking statements are subject to uncertainties including general economic conditions, political instability, and changes in financial markets.
• Risks include high or increasing interest rates, a weak U.S. economy, and significant competition in the sector.
• Potential risks involve compliance with extensive government regulation and the ability to raise capital on favorable terms.
• The company notes inherent difficulties in forecasting the timing of certain items and quantifying amounts necessary for reconciling non-GAAP measures to GAAP net income.

Management Commentary and Tone:

• CEO Jay Jackson stated that the business built around longevity pricing data began working as a single platform this quarter.
• Management expressed confidence in the platform's success, noting that revenue growth has been at least 20% in every quarter reported as a public company.
• Jackson highlighted that the platform is "working" as intended, driven by strong institutional demand and early inquiries.

Other Key Points:

• In August, the Board of Directors authorized a $100 million share repurchase program.
• Approximately $80 million of common stock was repurchased under prior authorized programs since December 2023.
• The company generated $167.4 million in operating cash flows during the nine months ended September 30, 2026, demonstrating increasing cash generation capacity as longevity fund AUM scales.
• Balance sheet policy assets held at fair value were $370.0 million as of September 30, 2026.
• The company is unable to provide a comparable FY 2026 outlook for net income or a reconciliation to net income due to the difficulty in forecasting timing of certain reconciling items.