10-Q · May 11, 2026
Abacus Global Management's Q1 2026 results showed revenue of $59.4 million, a decrease of 8.8% from estimates and an increase of 34.4% year-over-year. The company reported adjusted EPS of $0.21, aligning with…
Earnings analysis · 10-Q
ABX earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Abacus delivered strong top-line growth in Q2 2026, with revenue up 29.9% year over year to $73.0 million, led by a 38.3% increase in Life Solutions revenue and a 134.3% increase in Technology Services revenue. However,…
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Abacus delivered strong top-line growth in Q2 2026, with revenue up 29.9% year over year to $73.0 million, led by a 38.3% increase in Life Solutions revenue and a 134.3% increase in Technology Services revenue. However, operating expenses rose 53.6%, operating margin fell to 29.4% from 40.1%, and GAAP net income attributable to Abacus declined 62.3% to $6.6 million. Six-month operating cash flow improved substantially to $130.9 million, but cash declined to $23.4 million and the company faces material debt maturities in 2027 and 2028.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue Accelerated on Life Solutions Growth
Revenue increased to $73,019,990 from $56,224,620, a 29.9% year-over-year increase and approximately 23.7% sequential growth from the $59 million reported in the prior quarter. Life Solutions drove the increase with revenue of $65,425,060, up 38.3%.
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Growth Came With Margin Compression
Gross profit rose to $63,955,539 from $50,169,976, but gross margin narrowed to 87.6% from 89.2% year over year and 89.4% in the prior quarter. Operating income was $21,478,560 versus $22,519,595 in the prior-year quarter, reducing operating margin to 29.4% from 40.1%.
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Technology Revenue More Than Doubled
Technology Services revenue increased 134.3% to $379,277, driven by increases in the number of lives tracked. The segment remained loss-making, but its gross loss improved 14.1% to $(287,997) from $(335,106).
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Operating Cash Flow Surged
Six-month operating cash flow increased to $130,946,310 from $14,511,602. Management attributed the $116,434,708 increase primarily to a $42,667,696 increase in net life-policy settlement sales, a $59,836,371 decrease in the fair value of held settlements, and a $21,473,912 increase in related-party payables.
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Assets Under Management Expanded
External fee-paying assets under management were $3,154,219,813 for the six months ended June 30, 2026, up 10.1% from $2,865,633,717. Total assets under management, including non-fee-paying assets, were $3,537,264,061 at June 30, 2026 versus $3,253,133,469 a year earlier.
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Adjusted Earnings Improved
Adjusted diluted EPS increased to $0.23 from $0.21 in the year-ago quarter, while adjusted EBITDA rose to $39,937,803 from $31,537,543. Adjusted EBITDA margin nevertheless declined to 54.7% from 56.1%.
What to watch
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Operating Expenses Outpaced Revenue
Total operating expenses increased 53.6% to $42,476,979. General and administrative expense rose 74.1% to $32,956,074, including $8,461,035 of additional legal and professional fees and $2,892,265 of higher non-cash stock compensation.
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Liquidity and Debt-Repayment Pressure
Cash and cash equivalents declined to $23,388,190 from $38,112,332 at December 31, 2025. Six-month financing cash outflows were $103,946,767, including higher debt repayments of $31,626,141.
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Near-Term Refinancing Exposure
The Company has a material debt maturity on June 30, 2027, when the LMA Income Series II secured borrowing matures, followed by Sponsor PIK Note and Fixed Rate Senior Unsecured Note maturities in 2028. Interest expense remained substantial at $8,311,904 in the quarter and $18,765,496 year to date.
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Asset-Management Fee Pressure
Asset Management revenue fell 17.6% to $7,215,653, primarily because of lower assets under management in the Carlisle and ETF Funds, and the Company recorded no significant performance fees in the quarter. Average management fees declined to 1.05% for Longevity Funds and 0.45% for ETF Funds.
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GAAP Earnings Were Highly Volatile
Reported net income attributable to Abacus declined 62.3% to $6,627,042 from $17,583,689. Total other expense increased to $10,502,668 from $838,695, while the effective tax rate rose to 39.6% from 18.8%.
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Fair-Value Estimates Remain a Key Risk
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. However, management changed its life-policy fair-value technique to the Historical Return Method, a prospective accounting-estimate change that could affect reported policy values and earnings.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management said existing liquidity is sufficient for operating, debt service, and capital requirements for the twelve months following the filing date. The Company expects to satisfy the June 30, 2027 LMA Income Series II maturity through collateral-pool cash flows and intends to evaluate refinancing alternatives in advance.
Earlier filings 4
10-K · March 13, 2026
Abacus Global Management reported a strong quarter with revenue of $71,899,000 in 2025 Q4, high gross and operating margins (88.8% and 36.4%, respectively) and diluted EPS of $0.06, while assets under management grew to…
10-Q · May 8, 2025
Abacus Global Management, Inc. reported a significant improvement in Q1 2025, with total revenues rising to $44,139,346 compared to $21,487,184 in Q1 2024. The company also saw a return to profitability with net income…
10-Q · November 7, 2024
Abacus Life reported strong top-line growth in Q3 2024 with total revenue of $28,148,491 (up from $21,120,930 a year ago) driven by active management revenue, but swung to a net loss of $(5,284,811) for the quarter…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.