Abacus Global Management (NASDAQ:ABL) raised its full-year profit outlook and announced its first-ever dividend after posting a sharp rise in quarterly revenue and earnings, driven by demand for its longevity-based assets.
The alternative asset manager said third-quarter revenue surged 124% to $63 million from a year earlier, supported by growth in its Life Solutions and Longevity Funds segments and higher asset management fees from recent acquisitions.
Net income attributable to shareholders rose to $7.1 million from a loss of $5.1 million a year ago, while adjusted net income climbed 60% to $23.6 million.
Adjusted EBITDA more than doubled to $37.9 million.
“The third quarter represents our tenth consecutive quarter of earnings growth, driven by disciplined execution and robust demand for our longevity-based assets, uncorrelated to traditional markets at a time when investors are increasingly focused on diversification,” said CEO Jay Jackson.
The company now expects full-year adjusted net income between $80 million and $84 million, up from a prior forecast of $74 million to $80 million, implying growth of up to 81% from 2024.
Abacus declared an annual cash dividend of $0.20 per share and said its board approved a $10 million share repurchase program. The company aims to distribute up to 25% of adjusted net income or 55% of recurring revenue through the dividend program.
“The decision to initiate an annual dividend marks a defining moment for Abacus, underscoring both our confidence in and validation of the strategy that is building durable, recurring earnings,” Jackson said, adding that the company’s cash generation is at record levels.
As of September 30, Abacus held $86.4 million in cash and cash equivalents and $424.7 million in policy assets.
During the quarter, Abacus completed its acquisition of AccuQuote, an online life insurance brokerage, and sold $50 million in securitized life insurance assets through an investment-grade collateralized note offering. The company was also added to the Russell 2000 and 3000 indexes in September.
Abacus said its capital allocation strategy is designed to balance investment in origination growth and acquisitions with shareholder returns.
Shares of Abacus shot higher on Friday, up 18.8% in afternoon trading at around $6.27.