Executive Summary

Q4 2024 revenue grew 40% year over year to $33.2 million; adjusted net income more than doubled to $13.4 million and adjusted EBITDA was $16.6 million with a 50.0% margin, while GAAP net loss widened to $18.3 million due to higher non-cash stock compensation, acquisition-related costs, and interest expense .
Management initiated FY2025 adjusted net income guidance of $70–$78 million, implying 51%–68% growth versus FY2024 adjusted net income of $46.5 million .
Strategic execution advanced: completed acquisitions of Carlisle and FCF Advisors adding ~$2.6B AUM, rebranded to Abacus Global Management, launched the Abacus FCF Small Cap Leaders ETF (ADLS), and cut ETF fees (5–10 bps reductions plus 20 bps fee waivers on four ETFs for 18 months) .
Management indicated the low end of 2025 guidance was above consensus; however, S&P Global consensus estimates for Q4 2024 were unavailable via our feed, limiting direct beat/miss analysis of the quarter .

What Went Well and What Went Wrong

What Went Well

Strong top-line and adjusted profitability: Q4 revenue up 40% YoY to $33.2M; adjusted net income $13.4M (+>100% YoY); adjusted EBITDA $16.6M (+51% YoY) and 50.0% margin .
Strategic milestones: closed Carlisle and FCF acquisitions (~$2.6B AUM added), rebranded to Abacus Global Management; launched ADLS ETF and reduced ETF fees, supporting broader product and distribution reach .
Liquidity and capital: raised ~$181.7M equity in 2024, secured $150M private debt facility; management emphasized strong balance sheet and capital to deploy in 2025 without needing additional equity .

Quote: “We’re off to a strong start in 2025 - expecting to once again grow our adjusted net income for the full year by over 50%.” — Jay Jackson, CEO .

What Went Wrong

GAAP results impacted by non-cash and one-time items: Q4 GAAP net loss of $18.3M, primarily driven by an $18.6M increase in non-cash stock compensation, acquisition-related costs, and higher interest expense .
Margin compression vs Q3: adjusted EBITDA margin declined to 50.0% in Q4 from 59.2% in Q3, reflecting mix (buy/sell activity, integration costs) even as management targets >50% longer-term .
Operating expenses elevated: Q4 total operating expenses (ex gains/losses and change in fair value of debt) rose to ~$45.5M, driven by stock comp, SG&A investments, and marketing to support growth .

Financial Results

Core Financials and Profitability

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$29.1	$28.1	$33.2
Adjusted Net Income ($USD Millions)	$11.8	$14.9	$13.4
Adjusted EBITDA ($USD Millions)	$16.7	$16.7	$16.6
Adjusted EBITDA Margin (%)	57.5%	59.2%	50.0%
GAAP Net Income (Loss) ($USD Millions)	$0.8	$(5.1)	$(18.3)
Adjusted EPS ($USD)	$0.18	$0.20	N/A (not disclosed)

Note: EPS comparisons and estimate beats/misses for Q4 are limited due to lack of disclosed adjusted EPS and unavailable S&P Global consensus.

Key Operating and Balance Sheet KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Origination Capital Deployed ($USD Millions)	$104.7	$93.2	$96.6
Policy Originations (#)	275	278	214
Balance Sheet Policy Assets ($USD Millions)	$208.7	$274.4	$371.4
Cash and Cash Equivalents ($USD Millions)	$91.3	$19.4	$131.9
Long-Term Debt ($USD Millions)	$81.6	$166.5	$342.4
Annualized ROIC (%)	18%	21%	11%
Annualized ROE (%)	18%	23%	13%

Discrepancy note: CFO remarks cited Q4 cash and equivalents at $128.8M and policy assets at $371.5M versus $131.9M and $371.4M in the press release, respectively .

Segment Breakdown

Not disclosed in Q4 materials; management outlined four business segments (Abacus Life Solutions, Abacus Asset Group, ABL Wealth, ABL Tech) without segment-level financials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Net Income ($USD Millions)	FY 2025	Not provided in prior releases reviewed	$70–$78	Initiated; implies +51%–68% vs FY2024 $46.5M
Adjusted EBITDA Margin (%)	FY 2025	Target >50% historically	Management targeting >50% and more consistency over time (qualitative)	Maintained qualitative target
Capital Needs	FY 2025	N/A	Management does not expect additional equity raises given new debt facility and balance sheet/liquidity	Qualitative improvement

Management noted the low end of the FY2025 adjusted net income guidance was above consensus (per their understanding) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q4 2024)	Trend
Acquisitions/AUM	Q2: Announced Carlisle (~~$2B AUM) and FCF (~~$600M AUM) ; Q3: Progress; expected close by year-end	Closed both; added ~$2.6B AUM	Executed; integration underway
Rebrand/ETF strategy	Q2: N/A; Q3: Tech platform and health tool (PREADISAN)	Rebranded to Abacus Global Management; launched ADLS ETF; fee cuts/waivers across ETFs	Product suite broadening; fee competitiveness improving
Liquidity/capital	Q2: +$90M equity raise ; Q3: debt $166.5M, cash $19.4M	+$181.7M equity (2024), $150M private debt facility; warrant exchange (~5M warrants for ~1.1M shares)	Strengthened funding; simplified capital structure
Margin narrative	Q2: 57.5% adjusted EBITDA margin ; Q3: 59.2%	50.0% (mix-related); management aiming for >50% and more consistency	Elevated but variable; targeting steadier profile
Advertising/origination	Q2: Origination growth ; Q3: 278 originations	Targeted ads (non-swing states); campaign accretive; 214 originations	Continued demand; refined targeting
Carrier buyback program	N/A in Q2/Q3	Growing with carriers/reinsurers; lumpy quarterly timing	Expanding relationships; episodic flow
Macro/volatility	N/A in Q2/Q3	Volatility supportive for both origination and investor demand for uncorrelated assets	Macro tailwind to pipeline
Tech services	Q3: ABL Tech serving 20+ clients, more in pipeline	Early revenue (small line item); targeting material contribution by summer 2026	Building; multi-year ramp

Management Commentary

Strategy execution and outlook: “We grew total revenue by 40% year-over-year to $33.2 million and recorded strong adjusted earnings... we’ve initiated our full year 2025 outlook for adjusted net income to be between $70 million and $78 million” .
Acquisitions impact: “During the quarter, we successfully completed the acquisitions of Carlisle... and FCF Advisors... which together added approximately $2.6 billion in assets under management to our portfolio” .
Capital and financing: “Securing a new private $150 million debt financing facility... ensures that we will continue growing... without the need for additional equity raises” .
Margin target: “We were always trying to target EBITDA margins greater than 50%... you might see it go from 50 all the way up to nearly 60%... more consistency over time” .

Q&A Highlights

Guidance swing factors: The 2025 guide is not dependent on a remaining $50M revolver draw; upside tied to origination, integration of asset management, and capital raising under Abacus Asset Group (Carlyle, ETFs) .
Advertising cadence: Abacus shifted advertising away from swing states but maintained spend; campaigns remain accretive and generate adviser interest alongside consumer leads .
Capital deployment: Significant year-end deployment despite late-2024 raises; strong Q1 deployment supports confidence in guidance; management reiterated no near-term need for additional equity .
Balance sheet policy strategy: Target ~2 turns per year; average hold 4–6 months; policy assets expected to hover as sold policies are replaced with new purchases .
Carrier buyback program: Expanding (including reinsurers); transaction timing is lumpy, with potential quarterly variability .

Estimates Context

S&P Global consensus estimates for Q4 2024 revenue and EPS were unavailable via our feed at the time of review, limiting direct beat/miss analysis for the quarter.
Management indicated the low end of FY2025 adjusted net income guidance was above consensus, suggesting upward pressure on estimates as integration and capital deployment progress .

Key Takeaways for Investors

2025 setup: The $70–$78M adjusted net income guide and commentary on non-dependence on revolver draw indicate confidence in origination, asset management integration, and fundraising momentum .
Strategic breadth: Completed acquisitions and rebrand expand AUM, product, and distribution; ETF fee reductions enhance competitiveness and may aid flows .
Watch margins: Q4 margin compression to 50.0% vs 59.2% in Q3 reflects mix; management reiterates a >50% target with plans for consistency as fee-related earnings scale .
Balance sheet utilization: Expect policy assets to remain elevated as Abacus targets ~2 turns/year; this capital recycling underpins realized gains and revenue generation .
Funding resilience: 2024 equity raises and $150M debt facility support growth without additional equity; warrant exchange simplifies capital structure .
Pipeline tailwinds: Macro volatility is boosting both origination interest (liquidity seekers) and investor demand for uncorrelated assets, potentially supporting revenue visibility .
Near-term catalysts: Integration updates (Carlisle/FCF), ETF flows post fee cuts/waivers, Q1 deployment pace, and incremental disclosures on ABL Tech revenue runway could drive sentiment .

Sources: Q4 2024 8-K and press release ; Q4 2024 earnings call transcript ; prior quarter press releases .

Abacus Global Management, Inc. (ABL)·Q4 2024 Earnings Summary