Abacus Global Management (ABX) Q2 FY26 earnings call: guidance and Q&A

Why is full-year guidance maintained despite Q2 beat and strong Q3 guidance?

Management is being conservative with the full-year guidance and expects to hit the top end of the range, indicating strong performance in Q4.

“Yes. Thank you for the question, Patrick. We were just staying conservative on the annual guide. We are looking towards the top end of that guide, which would put us in a really good position for Q4.”

asked by Patrick Davitt · answered by Jay Jackson

What are the early take-up trends for the interval fund from advisors (Dynasty, Manning) and what does the future distribution pipeline look like?

There is strong interest from RIAs and institutional clients (pension funds) for the uncorrelated yielding product. Significant asset intake is expected in Q3 and Q4, with discussions ongoing with large distribution firms beyond existing relationships.

“It's essentially an uncorrelated yielding product in a time period where I think investors across the board are seeking these kinds of uncorrelated assets. And what's great about the interval fund is that it's not just for retail. This is we've been showing it to all of our pension fund clients that we already work with specifically through our mortality verification. And that's generated a significant amount of interest, too.”

asked by Patrick Davitt · answered by Jay Jackson

What drove the strong capital deployed in Q2, and what are the expectations for future deployment compared to the previous $130M-$150M range?

Strong Q2 deployment matched record new capital inflows into longevity funds. Excess demand for assets exists. Securitization in Q3 or early Q4 could increase capital deployed to $150M-$175M, up from the initial $130M-$150M target.

“And if we are able to move forward to the securitization in Q3 or even early Q4, but targeting Q3, as we had said on the prior call, I think that we could comfortably see that capital deployed number increase above our initial target goal of $130 million of $150 million to that $150 million to $175 million range.”

asked by Crispin Love · answered by Jay Jackson

Beyond internal use and Manning & Napier, what is the latest on LifeARC sales, target customers, and the potential revenue model?

Significant outreach from large RIA firms. Monetization is envisioned through a recurring revenue share model, not individual life sales. Primary focus remains the successful rollout with Manning & Napier, where it's proving effective with multimillion-dollar accounts.

“And so the way that we are looking to monetize the platform is in more of a rev share model versus an individual life model. And in that process, we are in negotiations with some firms as to kind of what that rev share model might look like.”

asked by Crispin Love · answered by Jay Jackson

How should the average realized gains (25% in Q2) be framed, and what is the landscape for policy demand and competition?

Realized gains typically track in the 20%-25% range and could expand with lower cost of capital from securitizations. The addressable market is vast ($250B annually from $14T in-force), so increased competition is not a major concern due to ample supply.

“I think historically, we've typically tracked in this 20% to -- top end 25% range. And we don't see any reason why that would change in the near term. ... If we see more success in securitizations or other lower cost of capital formats, then yes, you would see that realized gain maybe move up some.”

asked by Andrew Kligerman · answered by Jay Jackson

How will Abacus bridge the gap to $5B+ AUM by year-end '26, and is it primarily through longevity funds?

AUM growth will come from longevity funds and new products, particularly the interval fund, which is expected to be a significant contributor. This growth is additive to the Life Solutions business and aims to drive multiple expansion for the company.

“It is coming through longevity funds. It's also coming through, as we've talked about some new products. The interval fund will be, I think, a significant contributor to that asset growth.”

asked by Timothy D'Agostino · answered by Jay Jackson

What caused the lower-than-expected asset management revenue in the quarter, and will fee rates on AUM normalize higher?

The impact was primarily driven by rotation out of the ETF business, which is not a wide-margin segment. Longevity asset side revenue was strong. Fee rates on AUM for related parties are expected to normalize higher, leading to consistent revenue growth as the company shifts to more fee-related earnings.

“I think the impact there was just driven by ETFs. And there's -- an ETF business in itself isn't a wide margin business. But you've seen some rotation out of those ETFs, which is what impacted some of the asset management revenue.”

asked by Randy Binner · answered by Jay Jackson

Should investors expect dividends to continue at current levels going forward?

Based on the company's calculation method (percentage of fee-related earnings and adjusted net income), an increase in the dividend for 2026 is expected.

“But based upon what we're seeing here, yes, you would see a percentage increase in relationship to the dividend this year.”

asked by Dmitrii Primashov · answered by Jay Jackson