Abacus Global Management Inc (ABL) reported a strong start to QQ1 2025, underpinned by a robust revenue surge and sustained margin expansion. Revenue rose to USD 44.14 million, a 105.4% year-over-year increase and 32.9% quarter-over-quarter growth, driven by the Life Insurance settlements and diversified business mix across Active Management, Originations, Asset Management, Portfolio Servicing and Technology Services. Gross margin stood at 83.9%, with EBITDA of USD 22.11 million (EBITDA margin ~50.1%), and net income of USD 4.64 million (net margin ~10.5%). These metrics reflect meaningful operating leverage and favorable product mix, as well as disciplined cost management, despite a challenging cash-flow backdrop.
Management commentary available in the earnings materials (where disclosed) emphasizes continued demand for life settlements and growing activity in asset management and technology-enabled services. The company also completed a name change to Abacus Global Management Inc in February 2025, signaling a broader platform strategy and enhanced branding for the combined set of services. While the topline and profitability improvements are encouraging, cash flow from operations remained negative in QQ1 2025, largely due to working capital dynamics and non-cash items. The company ended the period with USD 43.8 million in cash, while gross assets and goodwill remain sizable, underscoring both the platform’s scale and the potential for future impairment risk if market conditions deteriorate. Overall, the investment thesis rests on continued revenue growth, improving operating leverage, and a disciplined approach to liquidity management, with an emphasis on converting EBITDA strength into positive free cash flow over the next few quarters.