Abacus Global Management (NASDAQ:ABL) earlier this week told investors it expects adjusted net income to grow by between 51% and 68% in 2025.
The company reported full-year 2024 revenue growth of 69% year-over-year. This followed a record-setting 2023 and marked the second consecutive year of strong performance. It also recorded 20 consecutive years of positive net income.
In this interview with Proactive, Jay Jackson, CEO of Abacus Global Management, noted that the company is well positioned for 2025, with cash on the balance sheet to support further contract purchases and asset growth.
Proactive: For viewers new to the story, tell us a bit about Abacus Global Management.
Jay Jackson: Sure. Abacus was founded over 20 years ago, even though we've just been public for nearly two years now. It's based upon the foundation that we educate people on their investments, specifically starting with life insurance and now our life solutions division, but with an underlying theme of data — data relating to someone's health and lifespan.
A lot of people don't realize how valuable that asset is and how it can be used in a multitude of ways. First and foremost, it's used in understanding the value of a life insurance policy. If you're going to continue to pay on it, wouldn't you like to know how long that's going to be? Then try to solve for what the net present value is.
Where Abacus stands apart is that we're the origination company and the market maker, and ultimately the asset manager. Why invest in Abacus? Because we control our own destiny. We've now applied that across other business segments to capture the entire lifecycle of our client. That includes asset management across several asset classes, financial advice, and our lifespan and health technology, which we also resell as a service to major pension funds globally.
You recently rebranded from Abacus Life. What was the reasoning behind that name change?
The most important piece was to better capture everything we do. When people hear Abacus Life, they assume we’re a life insurance company, but we're actually an alternative asset manager that invests in non-correlated assets — including life insurance policies.
We're an asset manager. The name change to Abacus Global Management reflects that. We also own a large institutional asset manager in Luxembourg, so the global aspect was also important.
You were out with your fourth quarter and full-year 2024 results just last week. Quarterly revenue up 40% year-over-year and full-year revenue up 69%. A really good year for the company.
This isn't a surprise to us. We have 20 consecutive years of positive net income. We've seen growth in our industry and investor demand for this asset class. 2023 was a record year, and 2024 beat that by more than 50%.
Looking into 2025, we're guiding for growth of 50% to 60%. It’s hard to find a small cap growth company performing this well in such a volatile market.
Take us through some of the growth drivers. You made some strategic acquisitions in the year — what else contributed?
Acquisitions helped in the asset management space. We’re also expanding our financial advisor channel. Future acquisitions might support that area as well.
Then there’s growth in our tech division. Combining all three — asset management, financial advice, and tech — with industry growth creates strong momentum. In volatile markets, policyholders are looking for liquidity. Investors are looking for less correlated assets, which is exactly what we originate.
How are you incorporating AI into your business as you grow?
AI is a substantial tool. We receive close to 10,000 inquiries monthly. We're using AI for customer service and to help people understand life insurance or financial advice options.
More broadly, it helps us analyze data. Think about the billion scenarios in someone’s lifespan — AI helps us understand more accurate outcomes. That’s powerful when thinking about retirement planning. If the number one fear is running out of money, wouldn’t you want to know how long retirement might last?
You've already hinted at 2025. The first quarter is almost over. Tell us more about what's ahead.
2024 was great. We’re very well positioned for 2025. We have cash on our balance sheet to buy more contracts and grow asset management. A key theme for 2025 will be increased interest in our asset management division.
We've guided for adjusted net income to be 51% to 68% higher than in 2024. So we feel confident.
Apart from financial growth, what else should investors be excited about?
When investing, you want to know where a company sits. Abacus is an origination company, a market maker, an asset manager, and a technology company — we’re at the forefront.
If you can control your own destiny, that’s the kind of stock to look for. In a market with limited control, we control the lifecycle and the downline. I can’t predict the broader market, but I know that on an earnings basis, Abacus should perform very well.
Quotes have been lightly edited for style and clarity