Abacus Global Management (NASDAQ:ABL) earlier this week reported record financial results and raised its 2025 guidance. The company said it nearly doubled both revenue and adjusted net income year over year in 2024 and has continued its momentum into 2025.
CEO Jay Jackson talked Proactive through the company’s growth drivers in this interview.
Proactive: We’ve got a couple of pieces of news to talk about. First off, you just announced your numbers, showing the company is on a great trajectory.
Jay Jackson: It is. Year over year, we nearly doubled the top end, same thing on the bottom end. Our adjusted net income numbers on an earnings per share basis beat the consensus by over 20%. We’re outperforming what Wall Street analysts believed we should be at.
For the remainder of 2025, we also increased our year-over-year guidance. We moved from a range of 52% to 67% growth to between 59% and over 70% growth on the bottom line, on an adjusted net income basis. Very few companies grow at over 50% per year, especially after nearly doubling in 2024. We’ve got a lot of momentum, and in volatile markets, we tend to perform very well.
What has led to all of this success?
There are a couple of drivers. One is our life solutions division, where we acquire policies from policyholders. This is a non-correlated business, and during volatility, seniors seek more liquidity. That leads to more origination opportunities. We’re licensed in nearly every state that requires it, so we can have these conversations with policyholders.
The second driver is investor demand. We raised almost $124.00 million in new assets in Q2. Investors want us to purchase these contracts because they provide uncorrelated yield, like a mortality-driven zero coupon. As contracts approach maturity, correlation decreases and yields rise. So we’re in a strong position with both policyholders selling and investors buying.
The company really has a good cash position too?
Yes. In Q1, we had over $123.00 million in cash and equivalents. In Q2, that was about $75 million. We turned our book over at a trailing 12-month rate of 2.23 times, showing strong demand. We expect this to continue and generate cash flow.
You also announced a minority investment in Dynasty Financial Partners. Why the move?
Dynasty is a leading provider of technology platforms for large registered investment advisors. They have over $120 billion in assets under management. We made a minority investment in them, and they did the same in us. This gives us access to their large network of RIAs, which can help with both investment and origination opportunities. We believe it’s mutually beneficial.
Finally, your outlook for the rest of 2025 and into 2026?
We feel great. We’re increasing GAAP net income guidance and making strategic investments like Dynasty Financial Partners. This shows Abacus Life is continuing to evolve and capture mutually beneficial relationships.