tiprankstipranks
Trending News
More News >
Abacus Life (ABL)
NASDAQ:ABL
US Market

Abacus Life (ABL) AI Stock Analysis

Compare
99 Followers

Top Page

AB

Abacus Life

(NASDAQ:ABL)

Rating:48Neutral
Price Target:
$5.00
▼(-5.66%Downside)
The overall stock score for Abacus Life is significantly impacted by its weak financial performance and bearish technical indicators. Although recent corporate events are positive, they are not sufficient to offset the challenges posed by unprofitability and cash flow issues.
Positive Factors
Acquisitions
Investor Day Review highlights upbeat sentiment on acquisitions for Abacus Life, Inc.
Earnings
Abacus Life, Inc. reported results that beat expectations on revenue, adjusted EBITDA, and non-GAAP EPS, driven by strong contributions from its core life insurance settlements unit and new Asset Management unit.
Market Position
A short report against Abacus Life, Inc. has been refuted, strengthening the company's market position.
Negative Factors
Valuation Concerns
Morpheus Research claimed that ABL used unreliable estimates of life expectancy provided by non-independent Lapetus Solutions to over-value ABL's portfolio of life insurance settlements.

Abacus Life (ABL) vs. SPDR S&P 500 ETF (SPY)

Abacus Life Business Overview & Revenue Model

Company DescriptionAbacus Life (ABL) is a company operating in the life insurance and financial services sector. It specializes in the secondary market for life insurance policies, offering solutions for policyholders seeking to sell their life insurance policies for cash. Abacus Life provides policy valuation, acquisition, and management services, enabling policyholders to unlock the value of their life insurance assets.
How the Company Makes MoneyAbacus Life generates revenue primarily through the acquisition and management of life insurance policies in the secondary market. The company purchases life insurance policies from policyholders who wish to sell their coverage for a lump sum of cash. After acquiring these policies, Abacus Life holds them and eventually collects the death benefit when the insured individual passes away. The difference between the purchase price of the policy and the collected death benefit constitutes a significant portion of the company's earnings. Additionally, Abacus Life may earn fees related to policy valuation and management services, contributing to its overall revenue. The company's success is influenced by its ability to accurately assess policy value, maintain a diversified portfolio, and effectively manage risk.

Abacus Life Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q4-2024)
|
% Change Since: -36.75%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, significant increases in adjusted net income, strategic acquisitions, and a robust capital position. Despite these positive aspects, the call also addressed increased operating expenses and a GAAP net loss due to non-cash compensation and acquisition costs. The outlook for 2025 remains positive with anticipated continued growth.
Q4-2024 Updates
Positive Updates
Record Revenue Growth
For the fourth quarter of 2024, revenue grew by 40% year over year to $33.2 million. For the full year, revenue increased 69% to $111.9 million.
Significant Increase in Adjusted Net Income
Adjusted net income for Q4 grew 126% to $13.4 million. For the full year 2024, adjusted net income grew 58% to $46.5 million.
Strategic Acquisitions
Completed acquisitions of Carlisle Management Company and FCF Advisors, adding approximately $2.6 billion in assets under management.
Strong Capital Position
Successfully raised $181.7 million in additional equity and secured a $150 million debt-financing facility, enhancing liquidity.
Expansion of Offerings
Rebranded and launched new ETFs under Abacus FCF Advisors, with management fee reductions and an 18-month fee waiver.
Positive 2025 Outlook
Initiated 2025 outlook for adjusted net income to be between $70 million and $78 million, implying growth of 51% to 68%.
Negative Updates
Increased Operating Expenses
Total operating expenses for Q4 2024 were approximately $45.5 million, up from $18.9 million in the prior year, driven by non-cash stock-based compensation and higher SG&A.
GAAP Net Loss
GAAP net loss attributable to stockholders for Q4 was $18.3 million, primarily due to $24.8 million of non-cash stock-based compensation and non-recurring acquisition expenses.
Company Guidance
During the Abacus Global Management fourth quarter 2024 earnings call, the company provided robust guidance for 2025, projecting adjusted net income between $70 million and $78 million, indicating a growth of 51% to 68% from the previous year. For the fourth quarter of 2024, Abacus reported a 40% year-over-year increase in total revenue to $33.2 million. Adjusted net income grew by 126% to $13.4 million, and adjusted EBITDA rose by 51% to $16.6 million. For the full year, total revenue increased by 69% to $111.9 million, adjusted net income grew by 58% to $46.5 million, and adjusted EBITDA climbed 57% to $61.6 million. The company successfully deployed over $344 million in capital throughout the year, significantly expanding their operations and capabilities. Additionally, Abacus completed strategic acquisitions that added approximately $2.6 billion in assets under management, with significant contributions from Carlisle Management Company and FCF Advisors. The company also raised $181.7 million in equity and secured $150 million in debt financing, enhancing its liquidity position to support growth initiatives in 2025.

Abacus Life Financial Statement Overview

Summary
Abacus Life shows significant revenue growth, but profitability and cash flow metrics are concerning. The negative net profit margin and negative operating cash flow indicate financial challenges despite a stable balance sheet with controlled leverage.
Income Statement
55
Neutral
Abacus Life shows a mixed income statement performance. The TTM data indicates a significant increase in total revenue compared to the previous annual period, resulting in a strong revenue growth rate. However, net profit margin is negative due to significant net losses, which raises concerns about profitability. The gross profit margin remains healthy, but the EBIT and EBITDA margins are inconsistent, reflecting volatility in operating performance.
Balance Sheet
65
Positive
The balance sheet of Abacus Life demonstrates a stable equity base with a reasonable equity ratio. The company has managed to maintain a low debt-to-equity ratio, indicating controlled leverage. However, the return on equity is impacted by negative net income, which is a concern for investors looking for profitable returns.
Cash Flow
45
Neutral
The cash flow analysis is concerning as Abacus Life reports negative operating cash flow in both TTM and previous annual periods, leading to negative free cash flow. This indicates cash management challenges. The operating cash flow to net income ratio is unfavorable due to persistent net losses, which raises sustainability risks.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue135.43M111.92M66.40M44.71M22.59M27.37M
Gross Profit117.92M100.55M59.91M38.83M8.39M26.86M
EBITDA23.45M12.72M23.33M34.81M1.03M0.00
Net Income-17.97M-23.96M9.52M31.68M997.41K1.44M
Balance Sheet
Total Assets856.51M874.16M331.83M59.09M5.29M3.74M
Cash, Cash Equivalents and Short-Term Investments43.76M131.94M27.84M30.05M2.60M1.85M
Total Debt123.07M385.91M141.74M28.33M367.51K65.61K
Total Liabilities420.93M450.87M167.76M30.95M2.57M1.13M
Stockholders Equity435.68M424.15M163.93M27.25M80.00K2.08M
Cash Flow
Free Cash Flow-273.46M-209.62M-64.71M10.61M1.12M904.09K
Operating Cash Flow-273.46M-211.01M-64.52M10.69M1.34M904.09K
Investing Cash Flow-8.69M-4.96M2.24M-3.70M-241.53K16.40K
Financing Cash Flow259.73M320.12M57.82M22.96M-354.58K-329.10K

Abacus Life Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.30
Price Trends
50DMA
7.25
Negative
100DMA
7.41
Negative
200DMA
7.98
Negative
Market Momentum
MACD
-0.60
Negative
RSI
36.46
Neutral
STOCH
43.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABL, the sentiment is Negative. The current price of 5.3 is below the 20-day moving average (MA) of 5.65, below the 50-day MA of 7.25, and below the 200-day MA of 7.98, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 43.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABL.

Abacus Life Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GNGNW
73
Outperform
$3.26B15.892.73%0.98%156.14%
67
Neutral
$16.86B11.649.71%3.83%11.61%-9.60%
CNCNO
62
Neutral
$3.84B13.5312.47%1.76%-0.78%-16.22%
CICIA
59
Neutral
$181.04M20.874.23%1.80%-39.04%
53
Neutral
$48.34M-1.43%0.94%2.04%-66.36%
BHBHF
49
Neutral
$3.09B6.4313.00%14.74%
ABABL
48
Neutral
$518.70M-5.98%76.25%-924.20%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABL
Abacus Life
5.33
-3.61
-40.38%
AAME
Atlantic American
2.36
0.80
51.28%
CIA
Citizens
3.57
0.90
33.71%
CNO
CNO Financial
37.86
10.47
38.23%
GNW
Genworth Financial
7.83
1.80
29.85%
BHF
Brighthouse Financial
53.78
9.83
22.37%

Abacus Life Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Abacus Life Launches Warrant Exchange Offer
Neutral
Jun 30, 2025

On June 30, 2025, Abacus Global Management announced the commencement of an exchange offer and consent solicitation related to its outstanding public and private placement warrants. The company aims to simplify its capital structure and reduce the potential dilutive impact of the warrants by offering 0.23 shares of common stock in exchange for each warrant tendered. If successful, this move could increase the company’s flexibility for future financing and potentially result in an increase of approximately 5% in the total outstanding shares of common stock. The offer and consent solicitation are set to expire on July 29, 2025, and require the consent of at least 50% of the public warrant holders to amend the warrant agreement.

The most recent analyst rating on (ABL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Abacus Life stock, see the ABL Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Abacus Life Announces Warrant Exchange Offer Plan
Positive
Jun 27, 2025

On June 27, 2025, Abacus Global Management, Inc. announced its plan to conduct a registered exchange offer and consent solicitation for its outstanding public and private placement warrants. The company intends to offer holders 0.23 shares of common stock for each warrant exchanged, while also seeking consent to amend the Warrant Agreement to allow a mandatory exchange at a slightly lower ratio. This move aims to streamline the company’s capital structure and potentially enhance shareholder value.

The most recent analyst rating on (ABL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Abacus Life stock, see the ABL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Abacus Life Holds 2025 Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 12, 2025, Abacus Global Management, Inc. held its 2025 Annual Meeting of Stockholders where key decisions were made regarding the company’s governance and financial oversight. The meeting resulted in the re-election of Cornelis Michiel van Katwijk, Mary Beth Schulte, and Karla Radka as Class II directors for a three-year term, and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (ABL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Abacus Life stock, see the ABL Stock Forecast page.

Executive/Board Changes
Abacus Life Announces Executive Compensation Changes
Neutral
May 12, 2025

On May 8, 2025, Abacus Global Management, Inc. announced salary adjustments and compensation changes for its executive team, including the CEO, CFO, and Presidents. The changes involve increased annual salaries, performance-based restricted stock units (RSUs), and annual cash bonuses tied to the company’s 2025 performance targets. The RSUs will vest based on the company’s adjusted net income performance, with a stretch target set at $140 million. Additionally, the CEO is eligible for a one-time equity bonus if certain market capitalization targets are achieved.

The most recent analyst rating on (ABL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Abacus Life stock, see the ABL Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Abacus Life Announces $15 Million Stock Buyback
Positive
Apr 10, 2025

On April 9, 2025, Abacus Global Management, Inc. announced that its Board of Directors approved a $15 million stock repurchase program, which will be in effect for eighteen months. This strategic move is expected to impact the company’s operations by potentially increasing shareholder value and improving market positioning.

Executive/Board Changes
Abacus Life Revises Vesting Terms for CFO’s RSUs
Neutral
Apr 2, 2025

On March 27, 2025, Abacus Global Management, Inc.’s Compensation Committee revised the vesting terms for restricted stock units (RSUs) granted to employees under the 2023 Long-Term Equity Compensation Incentive Plan. The changes affect 500,000 RSUs granted to the CFO, William H. McCauley, Jr., with the revised terms allowing one-third of the RSUs to vest and convert to common stock or cash on July 3 of 2024, 2025, and 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025