Abacus Global Management (ABL) Q3 2024 earnings summary

Executive summary

• Achieved 33% year-over-year revenue growth to $28.1M in Q3 2024, with adjusted EBITDA up 54% to $16.7M and adjusted net income up 65% to $14.9M, or $0.20 per diluted share.

• For the nine months ended September 30, 2024, revenue rose 84% year-over-year to $78.7M, driven by strong active management revenue and increased policy purchases.

• GAAP net loss of $5.1M in Q3 2024, primarily due to a non-cash $8.7M increase in warrant liability and higher expenses; net loss attributable to common stockholders was $(5.7)M for the nine months.

• Significant progress in strategic initiatives, including ABL Tech expansion, key acquisitions, and new product launches such as PREADISAN.

• Two major acquisitions announced: Carlisle Management and FCF Advisors, expected to add $2.6B in AUM, both pending regulatory approval.

Financial highlights

• Q3 2024 total revenue was $28.1M, up from $21.1M in Q3 2023; for the nine months, revenue was $78.7M, up 84% year-over-year.

• Adjusted EBITDA margin increased to 59.2% in Q3 2024; for the nine months, adjusted EBITDA was $44.96M with a 57.1% margin.

• Capital deployed in Q3 2024 was $93.2M, up from $56.4M; policy originations grew 54% to 278.

• Gross profit for the nine months ended September 30, 2024 rose 88% to $71.1M.

• Cash and cash equivalents at quarter-end: $19.4M; long-term debt: $166.5M.

Outlook and guidance

• Q4 is expected to follow historical trends with strong origination as policyholders seek to conclude transactions before year-end.

• Management anticipates closing key acquisitions by year-end, which are expected to drive future servicing revenue and add $2.6B in AUM.

• Positioned for sustained growth and profitability into 2025, with current liquidity and planned activities supporting operations and debt service.