Abacus Global Management, Inc.

Capital Officer will highlight in her remarks. These metrics will give you deeper insight into how we're executing in our overall business initiatives and specifically on how we manage our balance sheet. Along with our strong second quarter results, we expanded our brand recognition, including the launch of a new corporate-focused commercial campaign on June 12, 2025, at our Investor Day and Longevity Summit held at NASDAQ in New York City. The event centered around Abacus's positioning as a visionary leader in longevity-based asset management. The feedback we've continued to receive on our new branding remains encouraging. As prudent stewards of capital, in early June, our board of directors authorized a new $20 million share repurchase program effective June 5th, 2025, running for up to 18 months. Additionally, in late July, we completed an exchange offer and consent solicitation related to our outstanding warrants as we continue to simplify our capital structure. We were able to tender 88% of the warrants at .23 per warrant with the remaining 12% to be converted at .207 shares per warrant on August 14th. Looking ahead, We're building on our excellent first half achievements and growing brand recognition, which is driving greater policy originations, increased interest in our asset management offerings, and our expansion into wealth management, all of which resulted in us raising our full year adjusted net income target. We remain steadfast in our mission to establish Abacus as the go-to player in alternative assets and wealth management. Our distinct market approach, paired with access to non-correlated assets, creates a powerful competitive advantage. This foundation enables us to not only to weather market uncertainty, but to capitalize on it and build an even more resilient business. With that, I'll now hand it over to our Chief Capital Officer, Elena Plesko, who joined the Abacus team a little over a year ago from KKR, where she served as co-head of specialty finance. Elena will discuss the additional KPIs that will provide further insight and increased transparency into our business performance.

Thanks, Jay. As Jay mentioned, I'd like to highlight some of our existing and new KPIs, which we believe are important to understand our balance sheet efficiency and capital deployment. First, we pay close attention to portfolio turnover and velocity metrics. In financial services, turnover ratio is a fundamental tool for measuring balance sheet velocity and capital efficiency. Specifically, how quickly we cycle invested capital and realize returns. In Q2 2025, annualized turnover ratio was 2.3 times. Due to stronger demand post-liberation day, the ratio is slightly elevated as compared to our previously stated long-term average target of 1.5 to 2.x. During Q2, we purchased 250 new policies while selling 399 policies, resulting in a sale-to-purchase ratio for 1.6 times, indicating accelerated velocity. This compares favorably to the prior quarter, where we experienced a 0.69 times sales-to-purchase ratio on the back of 171 purchases and 118 sales in the quarter. This highlights our increased selective selling activity following a period of aggregation on the balance sheet. Second, we also focus on strategic portfolio aging and inventory management. A key indicator of our balance sheet management efficiency is our ability to monetize season policies at optimal timing. In the second quarter of 2025, our sold policies averaged 243 days held, compared to 229 days for owned positions, underscoring our ability to efficiently rotate mature inventory while preserving overall portfolio quality. This 14-day delta for sold policies, while narrower than the first quarter of 2025's exceptional 82-day delta, 294 versus 212 days, continues to validate our proactive approach of realizing gains on well-seasoned positions rather than engaging in reactive selling. This metric highlights our ability to exit older policies and clearly demonstrates that we're managing the balance sheet strategically rather than simply churning newer acquisitions. Third, our health portfolio is a strong indicator of our best ideas. Our commitment to retaining our highest conviction positions is evidenced by our policies held over 365 days, which represent approximately 15% of our total portfolio value, including cash holdings. These season holdings maintain a weighted average grade reflective of their low risk, weighted average life expectancy of 50 months, and weighted average age of 85 years. underscoring the quality of our long-term hold decisions. This concentration in our best ideas reflect our disciplined approach to portfolio construction and our confidence in our underwriting capabilities. Finally, we also closely monitor our unit economics performance. Our policy level unit economics validate the effectiveness of our active management strategy and operational discipline. Realized gain on sale represents the difference between what abacus paid to originate a policy and the actual sales price received when that policy is sold to investors who use their own valuation data to assess the market value of the asset. Our average realized gain on sale is 26.3% for Q2 2025. And you can find that information in our audit of financial statements. Over the last year and a half, this number has consistently stayed above 20%, which demonstrates our capacity to generate consistent returns through strategic balance sheet management while maintaining rigorous cost discipline for our operations. We will continue to provide updates on these additional and historical KPIs in the quarters ahead. With that, I'll now hand it over to our CFO, Bill McCauley, to discuss the specifics of our second quarter results.

Thanks, Elena. And hello, everyone. As Jay mentioned, we had another excellent quarter of top line growth and profitability. Total revenue in the second quarter of 2025 grew by 93% to 56.2 million compared to 29.1 million in the prior year period. Our revenue increase was primarily driven by greater life solutions, formerly active management and origination revenues. as well as significant contributions from asset management fees. The key driver of our life solutions performance continues to be our highly efficient origination platform and our trading division. Capital deployed increased 16% to 121.8 million in Q2 2025, compared to 104.7 million in the prior year. In addition to our capital deployment, we had a very successful quarter monetizing originations. Abacus syndicated 399 policies to 15 different counterparties in Q2 2025, which represented $208.4 million in fair value and total realized gains of $58.3 million. With the growth in policy origination and capital deployment, as of June 30, 2025, Abacus holds 600 policies with a value of $387.3 million on the balance sheet. We're very excited about the contributions from the asset management business as this is the second full quarter of asset management fees from our acquisitions that closed in late 2024. Q2 2025 had $8.8 million in revenue in that business segment. Turning to expenses, total operating expenses excluding unrealized and realized gains and losses on investments and the change in fair value of debt for the second quarter of 2025 were approximately $27.4 million compared to $20.1 million in the prior year. The increase from the prior year period was primarily driven to greater depreciation and amortization, the incorporation of operating expenses of the companies that were acquired in Q4 2024, as well as increased marketing to support our growth profile. The company typically realizes the benefit of marketing spend within 90 to 120 days. On an adjusted basis, excluding non-cash stock compensation, business acquisition costs, amortization and change in fair value of warrant liability, net income for the second quarter of 2025 increased by 87% to $21.9 million compared to $11.7 million in the prior year. Adjusted EBITDA for the quarter grew to $31.5 million compared to $16.7 million in the prior year, which represents an 89% increase. adjusted EBITDA margin was 56.1% for the quarter compared to 57.5% in the prior year. Gap net income attributable to stockholders for the quarter was 17.6 million compared to 0.7 million in the prior year, primarily driven by higher revenues and the gain on the change in the fair value of warrant liability, partially offset by increased operating costs from our acquisitions. Now turning to our balance sheet metrics, For the second quarter 2025, adjusted return on equity was 21%, and adjusted return on invested capital was 22%, both reflecting our highly profitable business model. As of June 30, 2025, the company had cash and cash equivalents of 74.8 million, balance sheet policy assets of 387.3 million, and outstanding long-term debt of 357 million. As Jay mentioned in his remarks, given our strong first half and our confidence in our business momentum, we are raising our full year 2025 outlook for adjusted net income to between $74 million and $80 million, up from our prior range of $70 to $78 million. The new range implies growth of between 59% to 72% compared to the full year 2024 adjusted net income of $46.5 million. In summary, we are pleased to maintain our momentum of continued record growth on our top line, as well as significantly growing profitability. I will now turn it back to our CEO, Jay Jackson, for closing comments. Thanks, Bill.