Abacus Global Management (NASDAQ:ABL) earlier this week reported its tenth consecutive quarter of earnings, as the company continues to deliver consistent performance and expand its funding and origination capabilities.
CEO Jay Jackson talked with Proactive about the company's continued momentum into 2026.
Proactive: Abacus has reported its 10th consecutive quarter of earnings. Gross revenue is up 124% year-over-year. Adjusted net income growth of 60%. You've also launched your first-ever dividend. What were the key drivers behind this third quarter momentum, and how sustainable do you see this growth going through 2026?
Jay Jackson: Sure. Those key drivers are very similar to what we've maintained not just over the past 20 years, but the last ten consecutive quarters since we became a public company. We've had six of those quarters with earnings beats greater than 30%, which shows that this is not a one-off result. It reflects consistent performance.
We're an active management company. We monetize contracts and policies on our balance sheet and resell them at strong margins—around 37%. In addition to that, there's strong institutional interest from banks and private credit funds in uncorrelated yield, which our asset class provides. This has helped us raise nearly $500 million in new capital this year.
This investor confidence supports both our asset and Abacus as a business. We've also reported that 15% of our revenue is now recurring. Our dividend, while conservative, represented just over 20% of adjusted net income. It allows us to return capital to shareholders while still deploying capital at ROEs over 20%.
Jay, the recent acquisition of AccuQuote and digital origination—how do these expand your client lifecycle coverage, and what impact do you expect on policy origination and asset acquisition volumes?
We're focused on capturing the full lifecycle of our clients. Some come to us wanting to understand their policy's market value but may not qualify to sell due to policy type or age. In those cases, we can now offer them better-suited policies.
We’re able to convert leads that previously didn’t monetize into product sales. AccuQuote has 30 years of experience and $150 million in issued premium. Some of those older policies could also become origination opportunities for us. So this acquisition brings both new policy sales and potential legacy contract value.
You recently completed a $50 million securitized asset transaction. How does that strengthen your balance sheet, and what role will securitizations play in supporting future growth?
This was a true sale from our balance sheet. The economics are the same as selling to a third party, but with more competitive rates and consistency. It’s scalable and now we’ve built the infrastructure for repeat transactions.
Insurance companies and banks participated in this first-rated product. That validates our valuations and the underlying asset. Plus, we remain as servicer on the contracts, earning servicing fees for five years. It's a lower cost of capital that helps drive long-term revenue.
You were recently added to the Russell 2000 and 3000 indexes. What does this mean for Abacus, and how do you plan to leverage the recognition to attract more capital?
Being added to the Russell indexes is a key step. Many ETFs and investors look for strong companies in these indexes. Abacus is now one of them. What’s even more compelling is that we are now a dividend-paying stock, yielding between 3.5% and 4.5%.
There are over $500 billion of ETFs focused on dividend-paying stocks. Only one-third of Russell 2000 companies pay a dividend—and fewer than 10% pay over 4%. That puts us in a very selective group and should drive more investor interest. We expect this dividend to be consistent and grow over time, along with our business.
Quotes have been lightly edited for style and clarity