Abacus Global Management, Inc.

Good day, and welcome to the Abacus Global Management Third Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Rob Phillips, Advocates Global Management Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Thank you, Operator, and thank you, everyone, for joining Advocates Global Management's third quarter 2025 earnings call. Here with me today are Jay Jackson, Chairman and Chief Executive Officer, Elena Plesko, Chief Capital Officer, and Bill McCauley, Chief Financial Officer. This afternoon at 4.05 p.m. Eastern Time, Abacus Global Management released its third quarter 2025 results. This afternoon's call will allow participants to ask questions about our results. Before we begin, Abacus Global Management refers participants on this call to the investor webpage, ir.abacusgm.com, for the press release, investor information, and filings with the SEC for a discussion of the risks and uncertainties that can affect the business. Abacus Global Management specifically refers participants to the presentation furnished today on Form 8K with the Securities Exchange Commission and to remind listeners that some of the comments today may contain forward-looking statements and, as such, will be subject to risks and uncertainties which, if they materialize, could materially affect results. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Abacus Global Management's public filings. During the call, we will reference certain non-GAAP financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under U.S. generally accepted accounting principles or GAAP. Please see our public filings for additional information regarding our non-GAAP financial measures, including references to comparable GAAP measures. With that, I'd now like to turn the call over to Jay Jackson, Chief Executive Officer.

Thank you, and good afternoon, everyone. I'm pleased to report that Abacus delivered another record quarter, our 10th consecutive quarter of beating consensus projections, keeping us firmly on track with our long-term growth targets, Our third quarter results were just as impressive. Total revenue increased 124% year-over-year to $63 million. Adjusted net income rose 60% to $23.6 million. And adjusted EBITDA increased 127% to $37.9 million. Due to these strong Q3 results, we are once again in a position to increase our 2025 guidance to 80 to 84 million, resulting in a year over year growth of 72 to 81% for 2025. I want to highlight an important inflection point for Abacus that further reinforces our commitment to long-term shareholder value creation. Earlier today, we announced the initiation of an annual dividend of 20 cents per share and a $10 million share repurchase program. These actions represent a defining moment for Abacus, underscoring both our confidence in the strategy and its validation as we continue building durable, recurring earnings. Our balance sheet and cash generation are at record levels, supported by increasing capital inflows into our longevity funds, growing fee income and expanding margins. As stated in the release, we have the capital strength to fund ongoing growth through new originations, accretive acquisitions and technology investment, while also returning capital to shareholders. I'm incredibly proud of what our team has built and the position of strength their unwavering dedication has created for Abacus. The introduction of a dividend and buyback is not a shift in strategy, but a natural evolution of it. With reoccurring revenues expected to approach 70% of total revenue over time, our capital allocation framework is designed to balance growth investment with consistent shareholder returns. Importantly, these actions also further align advocates with leading public alternative asset managers, many of whom have long demonstrated that recurring fee-based earnings can support both strong growth and meaningful capital returns. This disciplined approach ensures we continue to scale our platform, strengthen our market position, and allow shareholders to directly benefit from the visibility and sustainability of our earnings. I think it's important to take a moment and reflect on where Abacus stands relative to our public asset manager peer group. The numbers tell a clear story, one that I believe deserves your close attention. When we look across our peer group of publicly traded alternative asset managers, Abacus' performance continues to stand out across key financial metrics. We lead our public peer group in year-over-year revenue growth by five times. Abacus has revenue of 124% year-over-year. By comparison, other public alternative managers reported average year-over-year revenue growth between 20 and 30% during the same period. These aren't projections or aspirations. These are results we're delivering today, quarter after quarter, demonstrating both our market leadership and the depth of our growth opportunity. Abacus's growth trajectory remains the strongest in the asset manager industry and is expected to continue outpacing public peers. Driven by discipline execution, strong origination, and increasing investor demand for uncorrelated returns, the company's accelerating fundamentals combined with increasing visibility highlight a clear path towards sustained value creation that sets Abacus apart. When we look at the broader valuation picture, the disconnect becomes more pronounced. The average publicly traded alternative asset manager trades at roughly 20 times projected 2025 earnings. Abacus trades in the mid single digits. This disconnect represents a deep discount to our peer group and an opportunity for investors. While valuation comparisons have their limits, the combination of strong fundamentals, consistent execution, and short-term share price dislocation reflects a familiar dynamic, one that historically corrects itself in favor of fundamentals. At Abacus, we are continuing to diversify our revenue with increased assets under management. Year to date, we have raised $468 million across all of our fund strategies. In Q3, inflows represented $102 million. We are committed to increasing our AUM and generating a greater portion of our total revenue from recurring fee-based revenue, which naturally commands higher valuations. Now, let me be direct. I take responsibility for ensuring the market fully understands this evolution. While we're executing operationally and consistently exceeding expectations, we have more work to do to communicate the depth of our business model and the durability of our results. Beginning with last quarter's results, we introduced new KPIs specifically to simplify our message and to make the abacus story more transparent and accessible. We're committed to clear, consistent communication that helps investors understand what drives our business and how we measure success together. We also made significant strides in expanding our investor outreach program. Between now and the end of 2025, we continuing into 2026, You'll see advocates represented at more conferences, more speaking engagements, and increased visibility through television and media advertising. Our management team remains fully accessible and engaged across both institutional and retail channels, prioritizing transparency and long-term relationship building. We're also advancing strategic engagement. accretive acquisitions that enhance our competitive position and broaden both our origination and global wealth platforms. The recently announced acquisition of AccuQuote is a clear example. AccuQuote, a premier online life insurance brokerage, provides customers with quotes from multiple insurance providers through a single digital platform. This transaction is strategically and financially accretive, adding a new digital origination funnel, expanding our client lifecycle coverage, and supporting accelerating growth in policy origination and asset acquisition volumes. Near term, AccuQuote contributes modestly to revenue and profit. Over the long term, it will serve as a scalable growth engine feeding directly into our underwriting and asset management businesses. Our strong free cash generation, and high returns on invested capital gives us the flexibility to continue funding strategic initiatives while returning capital to shareholders. Let me address the current market environment. Our longevity-based assets are fundamentally uncorrelated to traditional markets. Their performance is driven by actuarial and demographic trends, not market sentiment or interest rate cycles. This structural differentiation provides consistent, non-correlated exposure at a time when diversification is most needed. To that point, we achieved a major milestone following quarter end with a $50 million above investment grade securitization product note backed by life insurance assets sold to institutional investors, insurance companies, and banks. This transaction marks the beginning of a scalable and reoccurring funding mechanism, while validating the strong institutional demand for longevity-linked, less correlated assets. It also reinforces Abacus's position as the market leader in a highly regulated industry, supported by favorable demographic trends expected to persist for decades. We view this transaction as the first of many as we continue building the infrastructure to make it a repeatable and scalable component of our long-term funding strategy, lowering our cost of capital, expanding our distribution channels to banks and insurance investors, converting balance sheet assets into recurring service and fee-based income, and further enhancing profitability and return on equity. To summarize, the financial performance is clear. 10 consecutive quarters of strong earnings growth, industry-leading returns on capital, expanding recurring revenue, and a defined path towards greater visibility and scale, our focus remains on translating these fundamentals into long-term shareholder value. With that, I'll now turn the call over to Elena Plesko, our Chief Capital Officer, to discuss our key performance indicators and capital structure in more detail.