Abacus Global Management, Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Abacus Global Management's fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the call over to Robert Phillips, Abacus Global Management's Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Thank you, Operator, and thank you, everyone, for joining Abacus Global Management's fourth quarter and full year 2025 earnings call. Here with me today are Jay Jackson, Chairman and Chief Executive Officer of Elena Plesko, Chief Capital Officer, and Bill McCauley, Chief Financial Officer. This afternoon at 4.15 p.m. Eastern Time, Abacus Global Management released its fourth quarter and full year 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 that can affect the business. Abacus Global Management specifically refers participants to the presentation furnished today on Form 8K with the Securities and 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 Jake Jackson, Chief Executive Officer.

Thank you, Rob, and good afternoon, everyone. Abacus closed the year by delivering another exceptional quarter. our 11th consecutive quarter of beating consensus. Today, I want to walk you through how we are executing against our vision and what the path forward looks like, grounded, not in projections, but in what I'd call our proof point, a track record of consistent, measurable outperformance. 11 quarters ago, we made specific commitments to our shareholders about how we would scale the business. Every quarter since, we have delivered. Let me put that in concrete terms. We have exceeded guidance and beaten consensus every single quarter. Over that span, we have tripled adjusted net income and adjusted EBITDA, expanded margins from 48% to 60%, and grown our asset base more than 35-fold, from under $100 million to nearly $3.6 billion. We have executed disciplined capital allocation with ROE and ROIC consistently at 20% or higher. These are not aspirational figures. They are results, consistently delivered, independently verified, and compounding quarter after quarter. That track record is precisely why you should have confidence in what comes next. Today, we are initiating our full year 2026 outlook for adjusted net income of $96 million to $104 million. This range implies another year of exceptional double-digit growth, up to 22%, compared to full year 2025 adjusted net income of $85.7 million. This guidance is built on the same execution discipline that has defined every quarter of our public history. Before I walk through our next set of goals, I want to ground this discussion in what makes the Abacus business model fundamentally differentiated. First, our assets are mortality-driven and completely uncorrelated to macro markets. They exhibit what we call positive theta, positive accretion over time. As the insured ages and mortality probability increases, asset value naturally appreciates. There is no interest rate sensitivity, no credit cycle dependency, and no reliance on market sentiment. Second, Abacus is a data-driven business that is insulated from AI disruption and, in fact, positioned to benefit from it. We own proprietary mortality data that AI platforms need to source. As AI adoption accelerates, we become a more valuable data provider, not a displaced one. Third, our assets are backed by regulated, A-rated insurance carriers, providing certainty of payment upon maturity. These are contractual obligations from some of the most creditworthy institutions in the financial system. Fourth, they are self-liquidating. Unlike real estate and private equity, we do not need to find a buyer or manufacture an exit. The asset matures by design. Fifth, Typical unlevered, uncorrelated returns range from 8% to 12% with limited downside risk, a profile that is exceptionally rare in today's environment. This is why institutional capital continues to flow into the space. The return profile is predictable, durable, and genuinely diversifying. During periods of market uncertainty, our origination business actually accelerates. Because we provide liquidity to policyholders when they need it most. In 2025 alone, Abacus paid nearly a quarter of a billion dollars to policyholders. Here is the broader reality. There is approximately $5 trillion in permanent life insurance outstanding in the United States today. Roughly 75% of policies held by individuals over 65 lapse without ever paying a claim. Most policyholders do not realize that life insurance is personal property with meaningful market value, often worth significantly more than surrender value. Millions of Americans unknowingly walk away from six- and seven-figure assets simply because they don't know an active secondary market exists. That is a massive, structurally underserved, addressable market, and that is exactly what Abacus was built to capture. So where are we going? Today, I'm laying out the path from where we are now, a company that has tripled its revenue over the last two years to become a mid-cap company, specifically a business operating at approximately $450 million in EBITDA with 70% recurring revenue over the next five years. For those newer to the Abacus story, our strategy is built on four integrated verticals. each one feeding and strengthening the others, creating a flywheel where we control the entire asset value chain. Vertical one, Abacus Life Solutions, the foundation. Abacus Life Solutions is our origination engine and foundation of the entire platform. In a highly regulated industry, we have established ourselves as a clear market leader. In Q4 alone, we deployed a record $230 million of capital, bringing our full year 2025 deployment to over $580 million. Working with 78-plus institutional partners and over 30,000 financial advisors, we expect this momentum to continue accelerating in 2026. This segment delivers consistent, realized earnings while feeding the asset pipeline across all four verticals. Critically, it also generates approximately 10,000 excess leads per month. Individuals seeking insurance-related advice who don't qualify for our core business, but represent significant wealth management opportunities. That organic lead flow is the engine powering our private wealth vertical without the expensive customer acquisition costs typical of the industry. Vertical two, Abacus Asset Group, the growth engine. Our asset group is the primary growth engine. We now manage over $3 billion in fee-paying AUM across our longevity funds and ETFs. In 2025, we generated nearly $34 million in management fees, and our longevity funds alone have attracted $630 million in capital inflows. Our new longevity interval fund, which we expect to launch this year, along with our asset-based finance strategy, are creating clear, executable pathways to reach $5 billion in fee-paying AUM by year-end 2026. This is not a stretch target. It is a natural extension of the institutional demand we are already seeing. Vertical three, data and technology are competitive moat. Our data and technology division, now operating as Abacus Intel, continues to grow at strong multiples, adding another durable leg to our recurring revenue strategy. Our flagship product, mVerify, has achieved 4x growth and now tracks nearly 3 million lives, an over 300% year-over-year increase across 100-plus institutional systems, delivering 97% coverage with less than 1% error rate. To put this in perspective, government mortality systems such as Social Security can lag by up to nine months and carry lower accuracy. Our system identifies mortality events in approximately 48 hours with near complete accuracy. That data advantage is a genuine competitive mode. It enhances our underwriting, asset management, and wealth management capabilities simultaneously. Let me be clear how we leverage AI. We are not using AI to manage portfolios. We are using AI and large language models to aggregate, structure, and interpret health and medical data from policyholders and direct consumers. The result, broader data sets delivered in usable summary formats that accelerate underwriting, enhance fraud prevention, and optimize pension liability analysis faster than traditional methods. We are targeting over $3 million in technology revenue for 2026, with significant M&A upside as we expand into insurance, pension, and mortgage verticals. Today, we are already monetizing this data externally, packaging mortality analytics for state pension funds and generating recurring SaaS-like revenue streams. Vertical 4. Abacus Wealth Advisors is our client-facing distribution channel and we expect dramatic acceleration in 2026. Our team build-out and acquisition strategy are ahead of schedule. Over time, we expect private wealth to represent approximately 30% of our recurring revenue mix, supported by organic lead flow from our core business, not expensive external acquisition. And we're already putting that strategy into action. In a recent development, Abacus Global Management has agreed to deploy approximately $50 million to acquire a minority position in Manning and Napier, a proven wealth advisory platform with over $18 billion in AUM, more than 50 years of trusted investment management, and historical EBITDA in excess of $25 million. This investment creates compelling, mutually reinforcing synergies across three dimensions – Converting Abacus existing policyholder relationships into managed wealth accounts in the Manning and Napier platform. Sourcing new life insurance policies through Manning and Napier's advisor network and accelerating distribution of Abacus-related alternative investment products to Manning and Napier's client base. This investment represents a defining moment in Abacus's evolution from a life solutions originator to a fully integrated, longevity-focused alternative asset management platform. Combined with our proprietary life arc data and actuarial capabilities, the partnership completes the Abacus flywheel, connecting our life solutions origination engine, our growing asset group, and now a dedicated wealth distribution channel. We are not simply acquiring a minority stake. We are building a longevity-focused wealth ecosystem that we believe will generate significant and durable value for our shareholders. With all four verticals now in place and executing, let me walk you through what the long-term financial picture looks like. This is illustrative, but it is grounded in the same execution discipline that has defined the past 11 quarters. Here's the pathway. Our 2028 milestones are targeting EBITDA growth to $250 million while maintaining approximately 50% margins, supported by $30 billion in total AUM, recurring revenue divisions from 16% of revenue today to 60% of our total revenue mix. As we execute this shift, we align significantly closer to a peer set that commands materially higher valuations, and we expect that valuation gap to narrow accordingly. Our 2030 milestones, EBITDA approaches 450 million, supported by 50 billion in AUM. Recurring revenue divisions represent 70% of total revenue. That is an approximate 14x increase in AUM and a 3.5x increase in EBITDA from today, while maintaining approximately 50% EBITDA margins throughout. Our long-term goal is to extend this trajectory. And we are looking at approximately $2.5 billion in revenue, $1.5 billion in EBITDA, and roughly $150 billion in assets under management. These targets are not aspirational. They are backed by live pipelines, executed contracts, and the same underwriting discipline this team has demonstrated for two decades. Before I turn it over to Elena, I want to touch on capital allocation because it is central to how we create shareholder value. We deploy capital where risk-adjusted returns are highest, whether it is acquiring policies, funding asset management growth, or repurchasing shares. Following our Q3 earnings, we announced a $10 million buyback program. Most recently, we authorized an additional $20 million share repurchase program on top of that, in addition to paying a dividend derived from our recurring net income. This capital return to shareholders through both dividends and share repurchases reflects our continued confidence in the trajectory of this business. When the market presents opportunities to buy our own stock at what we believe is a significant discount to intrinsic value, we act. When policy acquisition spreads are attractive, we deploy there. It is dynamic, it is disciplined, and it is designed to maximize long-term shareholder value. I also want to address our securitization strategy because it represents an important lever for scaling capital efficiency. In October, we launched our inaugural securitization. That transaction was fundamentally about education getting institutions, rating agencies, and market participants comfortable with the asset class and its structural characteristics. The underlying asset in our securitizations is a life insurance policy issued by a rated carrier that is cash-reserved with a default ratio of near zero. This is a consistent, high-quality asset that institutions want to own. And critically, the yield is uncorrelated, mortality-driven, not debt-driven, like traditional private credit. That uncorrelated return profile is exactly what institutional portfolios are seeking in today's environment of elevated rates and credit uncertainty. Securitization creates additional financing and distribution channels, particularly with banks and insurance companies, while improving our capital efficiency and scalability. We expect this pattern to grow into a meaningful and recurring channel going forward. With that, I'll turn it over to Alana to walk through our investment performance and detailed KPIs, and then over to Bill on the financials.