Abacus Global’s 2026 Q2 Call: Securitization Timelines, Monetization Models, and Equity Plans Clash With Prior Guidance

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Date of Call: Aug 6, 2026

Financials Results

• Revenue: $73 million, up 30% year over year
• EPS: $0.28 per diluted share, above Q2 guidance of $0.24-$0.26

Guidance:

• Q3 adjusted net income expected to be $26 to $28 million, with adjusted EPS of $0.26 to $0.28 per share.
• Full year adjusted net income expected to be $100 to $106 million, with adjusted EPS of $1.00 to $1.05 per share.

Business Commentary:

Revenue and Profitability Growth:

• Abacus Global Management reported revenue of $73 million for Q2 2026, representing a 30% increase over the previous year.
• Adjusted net income was $27.1 million, or $0.28 per diluted share, exceeding Q2 guidance.
• The growth was driven by the Life Solutions segment, which grew 38.3% year-over-year, offsetting declines in asset management fees.

Capital Deployment and Policy Review:

• The company deployed close to $200 million in capital in Q2, bringing the year-to-date total to $362 million.
• They reviewed 9,314 qualified policies in Q2, compared to 8,786 in Q1, with over 50,000 total policies reviewed year-to-date.
• This increase was attributed to the use of artificial intelligence to enhance both top-of-the-funnel leads and case review times.

Longevity Funds and Asset Management Expansion:

• Longevity funds collectively raised $544.2 million in the first half of 2026, surpassing the $500 million target.
• The launch of the ABX Longevity Growth and Income Fund (ABXGX) marks the first registered interval fund dedicated to the longevity asset class.
• This expansion is part of a strategy to provide individual investors and advisors with access to the longevity asset class through a registered vehicle.

Technology and Data Platform Advancement:

• The company is advancing its LifeArk platform, which is gaining traction with significant outreach from large RIA firms.
• LifeArk is being used internally and with partners like Manning and Napier to provide personalized lifespan modeling.
• The platform's monetization is expected through a revenue-sharing model, with a focus on rolling it out within the Manning and Napier platform.

Operational and Strategic Integration:

• The integration with Manning and Napier has established a live referral channel and is converting unqualified leads into wealth management clients.
• Early success includes converting leads and mining policies to identify qualified candidates for settlement.
• This integration is expected to extend to other firms, following the successful playbook with Manning and Napier.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed confidence and excitement about business momentum, noting "strong operating results," beating guidance, and launching key products. Statements include: "We are very pleased with the strength in the platform growth" and "We believe Abacus will become substantially larger."

Q&A:

• Question from Patrick Davitt (Autonomous Research): Is there something you see in the pipeline that suggests a lower 4Q for some reason, or are you just staying conservative?
  Response: Management was staying conservative on the annual guide, targeting the top end which would position Q4 well, with expectations for similar strong results.

• Question from Patrick Davitt (Autonomous Research): What is the updated thoughts on early take-up from advisors and distribution platforms for the Interval Fund?
  Response: The Interval Fund is generating significant interest from large RIA firms and pension funds; assets are expected to flow in during Q3 and Q4.

• Question from Crispin Love (Piper Sandler): What were the drivers of the strong capital deployment in Q2 and expectations going forward?
  Response: Deployment matched new capital inflows into longevity funds; if securitization proceeds, the deployment range could increase to $150-$175 million.

• Question from Crispin Love (Piper Sandler): What is the latest on the LifeArk platform beyond internal use and the Manning partnership, including revenue model?
  Response: LifeArk is gaining traction with significant outreach from large RIA firms; monetization will be via a recurring revenue/rev share model, with a focus on the Manning platform.

• Question from Andrew Clearman (TD Callen): How should we frame average realized gains and what is the competitive landscape for policy demand and supply?
  Response: Historical realized gains are 20-25%; increased competition is not a concern due to the massive, underserved addressable market of $14T in individual life insurance.

• Question from Andrew Clearman (TD Callen): Is taking equity stakes (like Manning & Napier) more beneficial than pure revenue share for partnerships?
  Response: The Manning investment has proven successful and synergistic; similar opportunities exist and could have a massive impact on the RIA industry.

• Question from Timothy D'Agostino (B Riley Securities): How do you bridge the gap to $5B+ AUM by year-end 2026, and is it primarily through the longevity fund?
  Response: Growth will come from longevity funds and new products like the interval fund, diversifying revenue while adding significant AUM.

• Question from Timothy D'Agostino (B Riley Securities): How do you get to $3M in technology revenue, and is LifeArk involved?
  Response: Technology revenue is projected to grow based on existing contracts; LifeArk will also contribute, enhancing private wealth channel recurring revenue.

• Question from Randy Benner (Texas Capital): Why did asset management revenue come in below expectations, and will fee rates normalize?
  Response: The decline was driven by ETF outflows; longevity asset revenue was strong, and fee rates on AUM should normalize higher.

• Question from Randy Benner (Texas Capital): Was the higher tax rate this quarter unusual, and what is the full-year expectation?
  Response: The higher rate was due to specific items like 162M and interest deductions; it should normalize to a slightly lower rate for the year.

• Question from Dmitry Primyshov (Freedom Broker): Should we expect dividends to continue at the current level?
  Response: Based on current performance relative to fee-related earnings, a percentage increase in the dividend for 2026 is expected.

Contradiction Point 1

Capital Deployment Target and Securitization Timing

Contradiction on when the capital deployment target range increases and when the securitization is expected.

Crispin Love (Piper Sandler) - Crispin Love (Piper Sandler)

2026Q2: The target range is expected to increase to $150–$175M per quarter, with seasonal strength historically in Q4. The company is also progressing toward a securitization, targeting Q3. - Jay Jackson(CEO)

What drove the nearly $200 million capital deployment in Q2, and do expectations align with the previous $130–$150M quarterly target going forward? - Crispin Love (Piper Sandler)

2026Q2: With the potential for a securitization in Q3 or early Q4, the capital deployed target could increase to a range of $150-$175 million. - Jay Jackson(CEO)

Contradiction Point 2

Timeline and Impact of Securitizations

Contradiction on whether a securitization in Q2 would be additive to capital inflow targets.

Crispin Love (Piper Sandler) - Crispin Love (Piper Sandler)

2026Q2: The company is also progressing toward a securitization, targeting Q3. - Jay Jackson(CEO)

What drove the nearly $200M in Q2 capital deployment, what are expectations going forward, and does the previous $130–$150M quarterly target still hold? - Patrick Davitt (Autonomous Research)

2026Q1: Yes, a securitization in Q2 would be in addition to the $500 million inflow expectation for the first half. It would represent a meaningful acceleration of the securitization program. - Jay Jackson(CEO)

Contradiction Point 3

Monetization Model for LifeArk

Contradiction on the primary revenue model for the LifeArk product.

Crispin Love (Piper Sandler) - Crispin Love (Piper Sandler)

2026Q2: The monetization model is a rev share/recurring revenue model, not a per-person cost model. - Jay Jackson(CEO)

What is the latest on LifeArk's sales outreach and potential revenue models (e.g., subscription, cost-per-person) beyond internal and Manning & Napier use? - Andrew Kligerman (TD Cowen)

2026Q1: The roadmap is a 'build it or buy it' strategy... The Manning & Napier investment is a key part... - Jay Jackson(CEO)

Contradiction Point 4

Timing of Interval Fund Launch and SEC Process

Contradiction on the expected timing for the SEC announcement and fund launch.

Patrick Davitt (Autonomous Research) - Patrick Davitt (Autonomous Research)

2026Q2: The company expects to begin taking assets into the fund in Q3 and Q4. - Jay Jackson(CEO)

What is the updated take-up from advisors (e.g., Dynasty, Manning & Napier) for the newly launched interval fund, and is there a pipeline of additional distribution platforms in discussions? - Patrick Davitt (Autonomous Research)

2026Q1: The company is working diligently with the SEC and feels good about potentially making an announcement in Q2. - Jay Jackson(CEO)

Contradiction Point 5

Strategy and Intent Regarding Equity Issuance

Contradiction on using equity to fund balance sheet purchases.

Patrick Davitt (Autonomous Research) - Patrick Davitt (Autonomous Research)

2026Q2: The full-year guide is intentionally conservative. The company is targeting the top end of the annual guide, which would position Q4 very well. - Jay Jackson(CEO)

Given that you beat Q2's high end and guided Q3 above consensus while maintaining the full-year EPS guidance of $1–$1.05, does this suggest a weaker Q4 outlook or a conservative approach? - Patrick Davitt (Autonomous Research)

2025Q4: There is no intent to issue equity to fund balance sheet purchases for policy acquisitions. - Jay Jackson(CEO)

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