Abacus Global Management, Inc. 2026 Earnings Call

Can hear me okay? That's good to know this mic is working, too. Full house today. This is pretty cool. Everyone know the history of this room? Just a quick, if you were there last night, amazing, Anna, who had led our history lesson on not just the New York Stock Exchange, but a bit of history that I was kind of uninformed on. She was spectacular and wonderful, and one of the things that she didn't get to talk about was this room. This room that we're in, we purposely selected for this event because we were very excited. Partly because this used to be the kind of ballroom/lunchroom, where the brokers would come in and have lunch at a specific table.

Ultimately what happened was, and I think they've covered some of them now, but there would be scaffolding and other things outside of this room, on the outside of these windows here, and you would look for little drill holes. People would sit on the outside and drill holes into the side of the building so that they could hear what the brokers were talking about and try to pick up on stocks, get stock tips, different kinds of things that had happened. It's pretty cool. You can actually go through and she showed me one, and I don't know if it was real or not, but it sure looked cool.

I kind of think about that now when you're going to sit here today at Abacus's Investor Day, and first of all, we couldn't be more excited, thrilled about not just where we've been, but where we're going. I have to believe that as the market has really learned more and more about Abacus's story, there's a bunch of people out there along the side listening through these little holes and wishing they were in this room. As the story continues to evolve and become more common and understanding, that is what's starting to happen in real-time. When we think about time, the first thing I want to do is acknowledge each and every one of you for taking time today. We've got a terrific agenda.

We'll touch on some of those things, and you're going to have an opportunity to really see, listen to the people that are really driving this engine, really driving this car. One of the takeaways that I hope that you're able to pull from today is that what an amazing business. I've heard many of you say that to me, but now you'll actually understand. You'll see what I get to see every single day. You'll sit back and look at this and say, "Boy, that was a great use of an incredibly valuable resource, my time." That's what I want you to say. Today was a great use of my time. How do you place a value on that? It's really interesting, right? When we think about commodities, we think about gold, we think about oil and gas.

Not very often do we put or think about the most valuable commodity that exists. By far is your time, your individual time. Some would argue that time is not a commodity. Why is that? Because it's not a tradable value. I would argue otherwise. Because time is scarcity, it's limited resources, it's incredibly valuable. They are right. How do you place a value, an incremental dollar, a tradable dollar, on time? Let me walk you through a quick exercise. Each and every one of you, just think in your head, if I were to give you a gift, and that gift was an additional year of your life, healthy and prosperous, no issues, how much would you pay for it? If I were to sell that to you right now, how much would you pay for a year? Think about a number in your head.

I think about it all the time. The challenge is each and every one of you has a different number. What's the basis for the dollar number? Sometimes it's what you might have in your bank account. More than likely, it's because you're at a different position in time. Meaning that when you think about time as a period of time, you think about it in a straight line. You think about it, I'm 20 and I'm going to be 80, or I'm 80, I'm going to be 85. It's a straight line. What do physicists say about time? It's a curve. It's actually an arc. What sets the value of your time is where you sit on the arc. If you're in the front end of the arc, you're going to pay less for that year.

If you're on the back end of the arc, how much will you pay? Everything. What Abacus has done is helped you solve and will help you solve and will help everyone solve what the value is of the greatest, most scarce, and most important resource in the world, your time. How we do it is that we help you better understand where you are in your arc. Think about that. We all love market maker businesses. Abacus is a market maker in what we do in our Life Solutions business. We are going to be the market maker, the infrastructure. I'll say it again, the market maker of time. You think about that. Tell me about another business or company that you're a part of that can present that type of opportunity.

We're going to have a couple of great speakers today, where we sit and you think about that concept of how Abacus is going to be the market maker of time. As we always say, please read this. I'm not going to. Ben Franklin said what? Time is money. That's what Ben Franklin said. Pretty wise guy. Goes back about 250 years, that time is money. How do you correlate the two? Many times in financial advice and financial planning, what we talk about is how much you will have at some point, maybe how much you will have in retirement, how much you will have for your legacy and for your heirs.

When we think about being the market maker of time and you look at the four verticals of where Abacus sits and our life solutions business, how do we set the value of time, the net present value of their life insurance policy, right? Pretty incredible. We paid out a quarter of a billion dollars as a market maker of time. Asset management, how we manage our portfolios, raised nearly $1 billion over the last year by understanding the value of time. Now when you think about personal finances, the question that's always asked for somebody is: How much will you have? That's how we manage assets today, typically. We're reframing the question that says instead, "How long will it last?" Then we're going to say, "How much do you want to spend?" Let's take a quick example. We have two neighbors, both age 65.

These are real examples. Maybe not my neighbors, but one of yours. Both age 65, both retiring with $2 million, both handed the same exact financial plan. On that $2 million, what typically happens is neighbor A goes in, sits down with their financial advisor. They're 65. "I have $2 million." What does their plan look like? Might be 60/40, it might be 2%-4%, it might be some standard premise. What's fascinating is what about neighbor B? The second neighbor goes in and gets the same exact plan. What we do know underlying as a fact, though, is that their arcs are different. Neighbor A sits on an arc that has lots of time left. Very healthy. Projected lifespan to age 97. Their incremental dollar value that they're going to place on time is much different than neighbor B, who has a lifespan much shorter.

This person's impaired with an 11-12 year lifespan, age 65. How much value do they place on their time? Much more, right? These customized solutions are not easy to do unless you have all the data to support that, and you're going to hear a lot about that today. All the data we've aggregated over the last 20 years, we are now implementing this to be able to design two different plans, as they should be for these two completely different individuals, even though they're the same age. Customized solutions in financial planning, what ends up happening is something very compelling. First and foremost, we end up increasing their income on a significant basis. Neighbor B, we can kind of get and understand.

11-12 year lifespan, of course, you're going to take out more income, $160,000 a year, leave another nearly half a million dollars a year, shorter lifespan. We get that. What the shocking piece to me was that when we look at this and you have somebody who's going to be in retirement for, in this case, what, 32 years. When someone is 65 and they're going to live a long time, what's the first thing you say to yourself? Go conservative, because you don't want them to run out of money. The exact opposite should happen. If you have 30 years to go in your 401(k), right? You want to retire at 60 and you're 30, how do you allocate? Do you go 80% bonds or the reverse? This is the difference in the power of these stories.

This is how you place a value on time. How we're able to do it is that as a financial infrastructure firm, we created an entire line within our Abacus Intel division called LifeArc. ARC stands for Actuarial Risk Calculator. This is helping you better understand the value of your time and making Abacus, as the infrastructure of that time, the market maker. This will apply not just to what Abacus does with our clients, but financial firms across the country. We start with our medical history analysis, all of our lifespan modeling, and those two things have such a huge impact to someone's investment and their income. This is a real example, and I'll walk you through this just so that you can kind of get an idea. 79-year-old Floridian, $8 million portfolio.

We actually acquired this individual's policy and sat down with him. Then went over and said, "How are you going to apply your lifespan?" We applied this in two ways. One, the value of his life insurance policy. Second now is how do you apply that to a financial plan? With a 9-year remaining lifespan at age 79, what he was doing was that he was taking out about 2%, about $160,000 a year. That's kind of where he was. What we ran is we said, well, with 9-year lifespan and as you graduate this down, you're going too conservative too early. He could actually pull out $317,000 a year and increase the value of his account to almost $10 million. This is the impact in understanding time. Time related to asset allocation is going to be a huge fundamental difference. How does this all work?

What is the grand scheme, and what is the size of this market that's available? Really quickly, what we see is in the financial services market, do I have to work with every single one of these clients? No. What we will do is that this will be a financial infrastructure that will be then utilized by every financial planner. Guess what? They'll pay us a little bit of something all along the way. When we think about recurring revenue, the businesses that have been most successful is through infrastructure and financial infrastructure. We will be the financial infrastructure and engine for how financial planning is done, not just today, but in the future. By the way, that client that we increased those assets to, they're coming. They're leaving a major firm because no one has ever spoken to them about this in the past.

How big is this opportunity? We've all heard about the $124 trillion wealth transfer. Just a point of perspective on what the size and scale of $124 trillion means. If you were to spend a dollar a second, when would you have to start spending money to spend $124 trillion to get to today? The Ice Age. You want to talk about the size of a moat and the size of a market, start with one that's $124 trillion. This is a generational wealth transfer that is occurring. Wouldn't it be nice if you were on the other side of this as a financial planning firm, and you knew when that was happening? Let's go back to the client we talked about, the 79-year-old, 9-year plan. You know the other conversation we had was with his son.

Speaking with the son about how this financial arc is developing now changes their financial plan. You know the next thing you do? You don't underwrite them once, you underwrite them every single year because that plane, that arc, that individual's arc can change every year. On a commodity basis, if I were to share with you what a commodity market looks like that's $124 trillion that we're the financial infrastructure for, you'd get pretty excited about it. That's why hopefully you see how much excitement I have about this. We haven't started this program on our own. We made a material investment into a firm called Manning & Napier. Some of them are here, so welcome. That's an $18 billion asset management and RIA advisory firm. We have been launching this program directly with them.

In the very short term, we have discovered opportunities to the tune of tens of millions of dollars in the first month. This isn't something that says, "Hey, Jay, that's a novel great idea." This is something that is literally in practice right now and is being effective, and we are literally shifting the mindsets of our clients in real-time by helping them better understand what the most valuable resource that they have is as a commodity, and we are the market maker for that commodity. That's the value of their time, and the value of their time increases their portfolio many times, 2x in income and 20%-30% on the legacy that they're leaving to their clients. How big is this opportunity? We're going to meet and sit down with someone here in just a few minutes. His name is Matt Ankum.

He was kind enough to include us in his book, "The Coffee Can Investor," where he talks about 100-bagger opportunities. Frankly, when you look at a size, scale, scope of this kind of opportunity, I feel like Elon Musk would say it's at least 1,000-bagger, but Bill would lose his mind if I said that publicly. I'll stick with what Matt said. When you have a tailwind of $124 trillion over the next 30 years, it's pretty exciting knowing that you can build recurring revenue on an infrastructure play through the most core asset, and by the way, you know who else is doing this? No one. Why? Because they don't have the data.

We're sitting on the data, we're sitting on the records, we're sitting on the actuarial data to produce this into $124 trillion plus market that people are coming to us for, we're changing the impact in how they view not just financial planning, but the most valuable asset they have. We're driving that through our data, through our AI-driven platforms, and of course, the product result of that was our LifeARC program. I said that time is not a straight line. Physicists agree with that. Your lifespan isn't either. You shouldn't measure it that way. It's an arc of probabilities, and you just are going to sit back now and solve for where that arc is, and Abacus is going to help you as the market maker for that arc. Pretty heavy. We've got a lot of amazing things that we're going to talk about today.

As you hear through and sit through our presentations today, one of my hopes is that your biggest takeaway is Abacus has got an opportunity here, and we are just literally at the beginning. It's been an amazing three years. Wait till you see the next three. It is very rare you have the company sitting in the position that it is today that actually generates revenue with a technology, with a basis, and a market size and scale that's doing what we're doing right now in real time, and you're seeing it happen in real time. As we go through our agenda, again, please enjoy everyone that's getting up here to work through this, because I think that they all have something pretty incredible to bring to the table.

Just as a point of reference, when we get to the 11:30 portion, where we have our two guests coming up, interviews, we're going to turn off the live feed and it'll just be a gift to you here live. Don't leave early. If you don't know who John Catsimatidis is, you will. He's a lot of fun. Maria Bartiromo is joining us later. Before that occurs, and before we launch into our presentation from Bill on the financials, which is also thrilling. Bill, you know. We've got a terrific guest speaker with us. I've had the opportunity and pleasure to get to know Matt, over the last, gosh, Matt, probably six or seven years when he first started looking at our business.

Matt has co-authored a book called "The Coffee Can Investor." If you're familiar with Coffee Can Investor, it actually goes all the way back to Warren Buffett, but it's the premise behind 100-bagger companies and the qualities and themes that those companies have had historically. He went a step further and actually picked what he thought would equate to some of the next 100-bagger companies. I'll take a moment and just read his bio here. He is a managing partner at Ankura Capital. He's a chartered financial analyst. He spent a career studying what actually separates good investments from truly extraordinary ones. That's why he picked us. He's best known for his 100-bagger study, deep look at stocks that multiplied in value 100 times across decades, and for the long-term compounding and driven investment philosophy that came out of research.

That work is the foundation of the book, "The Coffee Can Investor," and we're proud to say Abacus is featured in the "100 Bagger Companies" book. Blake, I'm not sure where she is. There she is. I think we have the book, or do we order those? Anybody who would like a copy of that book, we have those and we're going to be sending those out to you. Before I bring Matt up, I do want to acknowledge our team who put all this together. Blake Gallimore and the ICR team, thank you so much for all the hard work last night. If you enjoyed it and you love this today, make sure you tell her thank you. She's worked endless hours to continue to put this together. In the meantime, please help me join Matt up on stage. Hey, buddy. Right here. There you go.

In the hot seat, huh? Okay. Yeah. How does a company get kicked off the list?

What's that? I just want to make sure we don't ever get kicked off that list.

Yeah. Look, Matt, let's kind of start.

We've got a few minutes here. We just want to introduce everyone here to what you did. Could you start with a little bit more detail on kind of your original background, what got you here, what drove the idea behind the Coffee Can? I know it involves your family and some other things, and I think it's worthwhile hearing that piece.

No, it does. Thank you guys for coming out and hearing this. I was a portfolio manager and analyst for about 20, 25 years. I went on to become head of strategy for a Fortune 500 company. Went out and co-founded my own fintech software as a service business. Eventually then became CEO of a brain neurorehabilitation business and then got back into on the investing side. What I think changes a little bit is that when you do both sides.

You actually have a very different appreciation for what investing really means, right? Because as a portfolio manager, it's really easy to put a 50 basis points improvement in the margin for the next 20 years and think that's just going to happen. What you end up really finding is when you're running companies, you realize how hard that is and what it takes to do that. With that, one of the things I did was I went out and said, well, I had read this article by Robert Kirby talking about the Coffee Can portfolio.

It is a great article, basically he came out and said, "Here's a way to put great companies and own them for a long period of time and how they compound with time." I went in and I was looking at that and I was like, "Well, which companies would I want to put in that portfolio?

I went out and did a study, and I call it the 100 Bagger Study. I went out and looked at all companies that went public from 1980 to 2000 that increased in value by 100-fold. The reason why I was looking at over that timeframe was that I wanted to have it looked at in about 30 years. It's 100-bagger over 30 years.

Yeah. The reason why I chose that number was that that's about double what the market is.

These are phenomenal companies and what they do.

Yeah. That's what I'm sure we're going to be talking about.

Yeah is the real characteristics that came out of that.

Really, the book, one of the reasons why myself and the actual author, who if you like the book, it's because he wrote it. It wasn't because of me. I'm just kind of the content in there. In fact, I know he's a great author because he actually can make me sound interesting.

Well, he's the president of CBS, right?

Yeah. He was the co-head of CBS News.

Yeah. I've known him for, like 25 years.

Yeah. What we did was both of us looked at it and said, "Here's an opportunity to take what I've learned and then be able to basically provide the financial literacy for others.

Yeah. While doing that, what we were looking to do is actually build a portfolio for my daughters and talk about building generational wealth for a long time.

That's what the book is about, is going through the process of saying, taking the ideas from the 100 Bagger study, applying them to actually finding stocks, which is always a dangerous game.

Putting the ideas down on paper, being able and willing to hold them for 30 years.

Yeah, I think that's the point, right? I think that's when I read the book and I thought about this, and some of you in the audience might be feeling the same way. Holding a position for 30 years or considering that hold for 30 years. With the amount of digital information that's available to us, and the frequency of trading that you now see, would you think that, of the relationships that you saw in those companies, I'm just curious within the study at all, whether you had identified that, said, "Gosh, there weren't that many people that held it for 30 years." You as a portfolio manager, you get redemptions, you've got to sell it.

Yeah. Is that the biggest issue with hundred bagger companies, is that people just don't stay in them?

That's why they don't get the returns. Yes. Yeah. Of course. For the companies themselves, they're the ones that are just compounding every day.

Yeah. They're doing the little things every day.

From a portfolio manager standpoint, the reason why most people can't do it.

Yeah they just can't afford it.

Of course. They don't have the intestinal fortitude- Yeah to go through that.

To give you an idea, these stocks, all of them obviously went over a 100-fold, but some of them went 300, 500, 600-fold.

Yeah over that timeframe. Here's the crazy thing, is that the average drawdown from the peak to the bottom was 70%.

Hm. Meaning that every single one of those companies, you had the average down 70%.

Some of them. Yeah down 95%.

Obviously. Yeah Amazon was in there.

Sure. To be able to hold that through is what is so hard for a lot of people to do.

What Jay is referring to as well, is that the average holding period today, five and a half months.

Hm. Think about it. In the 1950s, '60s, it was eight years.

It's tough to be a 100 bagger.

Yeah. Five and a half months.

Five and a half months. The reason why that is such an important number is because think about you as a leader of a company.

Yeah. The likelihood that you could change the direction of the company.

Yeah Do anything in five and a half months.

Right. A lot of them, they're just trading on predicting some reason why the stock's going to change in the short term.

Sure. Gosh, that's super interesting. LifeArc itself, where we talk about this fundamental technology that we're bringing out and that we're rolling out, it's going to have this huge impact. Took us three and a half years to build.

Yeah. Right? Nobody could be able to trade on that tech.

Yeah That's a super fascinating piece of that story.

I'll add one thing to what you said, which was super interesting. Had a conversation with Peter Lynch, and one of the things Peter said to me was that, within any 12-month period, particularly small cap stocks, you'll see 100% spread between the high and low.

Yep. Just think about that.

Right? Frankly, we saw that with Abacus.

Right? I think we're up 130 some odd %- Yeah year-over-year.

Peter's premise was, though, is that you kind of reset your lows, right? As the stock continues to grow over time, you're kind of resetting your lows, but you see those spreads happen. When you think about the qualities of the underlying companies, I think what you touched on was super interesting, just compounding returns consistently.

What were a couple of others? Was it management consistency? Maybe that's too basic, right? Were there some other things that are pretty common that we should be paying more attention to?

Yeah. As I was going through the study, several patterns kept emerging.

Yeah. The first one was that quality comes before everything else.

Hm. Said differently, no mediocre company compounds its way to an extraordinary stock with time.

Yeah. Second was that growth matters.

The duration of growth is a lot more important than the velocity.

Yeah. The average company in this study actually grew their top line by 20% a year for 20 years.

That's remarkable, right? Yeah. The bigger lesson from all of that.

Yeah is that it was actually duration of growth actually beats explosive growth.

Interesting The reason why that comes about is if you think about it in compounding.

Yeah The heavy lifting all comes at the later years.

Yeah. It's the same reason why Warren Buffett has actually amassed 98% of his net worth after the age of 65.

It's amazing. Yeah. Yeah. The third was that the best companies actually continuously improved.

Yeah. In the study, on average, they expanded their operating margin by 25 basis points a year.

That's 0.25%. Wow. Doesn't sound like much.

In fact, end of the year it happens, it feels almost imperceptible.

Yeah. Those small thousands of changes that they do are the ones that actually create the insurmountable advantage that the companies enjoy years later.

If I switch it to the qualitative side.

Right Those are interesting as well.

One was nearly 60% of the companies in the study were founder-led or family-run.

Hm. You can say, well.

That's fascinating. Why is that important, right?

Yeah. Well, think about it.

If you're owning these things for 30 years.

Right Management matters. Sure. What was fascinating on this, too, was that every single company in that study actually incurred some kind of existential crisis, whether real or perceived.

It was the leaders, the winners that came out of this, were the ones who were willing to make the financial or the difficult decision to ensure the financial health.

Yeah. I know others might have a different view on this, but what I've actually found is there's a meaningful difference between owners and caretakers.

Yeah. Just like I think there's a big difference between parents and babysitters.

Right. Perhaps the most surprising finding that I actually had from the study was that over 80% of the companies were serial acquirers.

Wow. This was surprising to me, because as a young analyst, I was always taught the only growth that actually matters or that you should value is organic growth.

I no longer believe that to be true.

Yeah. It makes sense, right?

If you have a high quality company generating high returns and growth, they throw off a lot of cash.

Right. It is the smart manager who actually intelligently deploy that money into strategic acquisitions.

I want you to note, these are not the bet the farm.

Yeah acquisitions like an AOL Time Warner.

These were actually very thoughtful, strategic, and oftentimes really small bolt-on acquisitions that accelerated the company's strategic and R&D roadmap. The last one I'll actually point out is more of an observation.

Yeah. Not one of the companies in the study came from an industry that we'd consider glamorous.

They weren't chasing the hot markets.

Right. In fact, if you look at it, most of them were unsexy.

Yeah Pretty boring industries. Yeah.

They were massive. Think construction.

Right Financial services, healthcare. Right.

Right. These leaders, every year, took share, year in, year out. What it actually told me was that extraordinary returns are driven more by exceptional execution.

not some exciting industry. Right.

If I was to sum up all of my kind of the learnings that I had from that, it would be this: Is that the greatest investments are not built on predicting the next big thing.

They are actually built on owning exceptional companies run by exceptional management teams that actually can compound for an exceptionally long time.

Sounds like Abacus. Yeah, yeah.

That's terrific, Matt, it's interesting on the Warren Buffett piece. I've said that. Actually, we used that with our case example before when we think about how we asset allocate to 65-year-olds.

Warren Buffett wasn't in fixed income, right?

No. Accumulated 98% of his wealth in equities past age 65.

When you start to kind of tie all that in, it's really fascinating to then see how everybody can apply similar investment strategies- to the same way that Warren Buffett did.

I'll give you one more, and I'm sure there's lots of other questions, and I want to make sure that you all have an opportunity to chat with Matt. You'll all have a copy of his book. Matt can make himself available if you want to dive down deeper to some of these concepts. It's interesting, though. When you think about these companies over a 30-year period, where did they start 30 years ago, right? Did they start as large cap? Did they start as small cap? Did they grow into large cap? Compounding 20% per year, I get that. That's pretty incredible over a longer period of time. Particularly founders-based business, I assume, like a lot of companies started in garages.

Was there any trend there that said, hey, they erupted out of this area or came out of this area, or was it just consistency over time?

Here's something that I think we as humans struggle with, is this concept of compounding.

Yeah. Right? Is that if you're just in the market, over 30 years.

Yeah you should expect your investments to increase by about twentyfold.

To put this in perspective, everybody who actually owns NVIDIA, if you think that it should just run in line with the market, 30 years from now, it's going to be what? $110 trillion company.

Wow. Which- Yeah just boggles people's mind.

Yeah. Right? What I actually found was it wasn't necessarily the size of the company because they all come smaller.

They go smaller to mid-cap.

Right to big, kind of larger.

Here is what the amazing thing to me was, is that all of them actually were fairly derisked Interesting at the time that they went public.

Yeah. What I mean by that is that they already had a viable product Right they already were generating good economics They actually already had the ability and demonstrating the ability- Right To grow.

That's, again, playing into- Right kind of what a lot of people's misperceptions are, is they're always wanting to chase a hot new thing.

Right. The reality is they're just great businesses that continue to grow.

Again, they have to start smallish.

Right. Because when you're Sure increasing by a hundredfold Yeah it's a little bit You need some room to go probably going to be a little bit harder for Where would that put our price target?

Somewhere around 100? What's that?

Our price target's somewhere around 100, is what you're saying?

Yeah. Okay. Yeah. Remember that's over- I don't know where our analysts are.

I'm just kind of lobbing that out. Matt Ingram said it. Yeah.

When I go into your offices and I tell you we're worth $15, I think that's fair.

Yeah. Actually, the price target would be $1,000.

Oh, that's right. Yeah. I'm only 10-bagging.

Yeah, you're only 10-bagging. 1,000?

Bill. Yeah. You're reining me in.

Yeah. Remember, that is over 30 years, though.

Yeah. That's why. 30 years, let me think about my life arc.

Yeah. I'll be here. I'm in good shape.

Yeah. Yeah, I'll get to see that.

This has been terrific. Yeah.

Our time's a little bit short, but I also just wanted to acknowledge and thank you for including us, doing the research. You did the work. Yeah.

The information and data that you're providing is incredibly useful to investors everywhere. Look forward. Thank you. To seeing you again up here.

Yeah. Thanks, Matt. Yeah. In summary, $1,000 price.

I'm kidding. I won't even say it out loud just because I'm sure David will lose it, our head of IR. It's just important to note, there are some basic great qualities that encompass businesses. If you heard that list, we check a lot of boxes, I think it's fair to say why we were included in Matt's book. When we did go public, we were a business that had produced consistent revenue for over 20 years in the same industry, which someone might seem is a pretty boring industry. In the acquiring insurance policies and using medical data and lifespan data. You look at how we've grown. We had a breakout 2025, 20% a year is exactly where we target.

If we go out and you're a long-term investor, you start to see some of these visions, which I'm hoping you'll hear today, we will affirm that there's a great and significant opportunity here for everyone, we're going to continue to grow because we've got a phenomenal business that generates revenue with consistent management. We're excited to have you be a part of it. Speaking of that, our next presenter is Mr. Bill McCauley. Mr. Bill McCauley recently assumed the role as well, earned the role of our Chief Operating Officer. He's our Chief Financial Officer, wearing a little bit of dual hats as well. If you haven't met Alexei, he's here in the office here in the audience as well. He's our Chief Accounting Officer. The point is that we're bringing from within some pretty amazing talent.

Bill's been with us now six years. Did I say it right this time? Sometimes I extend it. He's been with us six years and has seen the growth and how we've been able to expand this business, growing from where we were. I think our year one public was somewhere around $35 million EBITDA to, I think consensus has us at $150 million. Patrick, where are we at now? North of $150 million. I'm not going to say whether that's target or not. I'm just throwing out a consensus number. What an incredible asset to our firm. He's worked at and had significant financial roles at Transamerica, MassMutual, McKinsey, John Hancock. We were honored to get him six years ago, and I'm even more honored to introduce him here today after six years. Thanks, Bill. Thanks, Jay. Appreciate it.

Thanks, Jay, and thanks, Matt. What a great interview. I want to take a few minutes and, surprise, put some numbers up on the screen, because I think that criteria that was discussed, that financial DNA of 100-bagger companies, that maps almost perfectly onto what we're seeing in our actual financial results. Let me show you the scorecard. Q1 2026, we had revenue of $59.4 million. That's a 34.6% increase over Q1 2025, well above the 20% sustained growth threshold that the 100-bagger framework suggests. We had $32.7 million in adjusted EBITDA at a 55% margin, we've been in that 54%-56% margin for multiple consecutive quarters, that's not a one-quarter number. Then there's the operating cash flow story. In Q1 2025, we had negative $61.6 million in operating cash flow.

In Q1 2026, we had $91.7, so that's a $153 million reversal. A lot of that had to do with the LMA Income 2 fund coming to the end of its initial term, which also reduced $76 million of debt off of the balance sheet. The 100-bagger framework requires three things working simultaneously, revenue growth, expanding margins, and strong returns on investing capital. Q1 2026 was that framework in action with a balance sheet that's getting cleaner by the quarter. In 2025, we built the foundation. Gross revenue of $235 million, which is more than double where we were in 2024. Adjusted net income of $85.7 million. Adjusted EBITDA at $133 million at a 56% margin. Return on invested capital and return on equity both at 20%. We ended the year with approximately $3.6 billion in gross assets under management.

On the right side of this slide is more of the forward look. Earlier this year, we increased our guidance, our full year 2026 guidance to $100 million-$106 million of adjusted net income. That's up to 24% growth on top of a year that we more than doubled the business. Beyond the headline numbers, we have an AUM target of over $5 billion for year-end. A lot of that is going to be driven by inflows into our longevity funds, where we had targeted about $500 million in the first half of the year alone. We also have an Abacus Intel revenue target of $3 million for the year as we begin to monetize the 2.8 million lives across more than 100 institutional systems. Lastly, pushing our recurring revenue mix to 20% towards our goal of 70% fee-recurring earnings by 2030.

The path to scale. The path is going to be paved by catalysts that we've already put in motion. We're going to scale our longevity fund complex with new funds in larger vintages. We have our securitization platform as well as the newly launched interval fund. Hopefully, you saw the press release on that a little bit earlier this week. Those are going to be creating repeatable execution and predictable AUM growth. There's the wealth management build-out, which would include the Manning & Napier referral flywheel. Those things are starting to build the fee revenue layer on top of the core engine. Those asset-based fees, advisory fees, and our technology revenue will move our total recurring revenue mix towards our long-term target. On the right side of the slide, it shows the numbers along the path.

In 2025, we're at $135 million of adjusted EBITDA. By 2028, we expect to be at $250 million, and by 2030, we expect to be at $450 million as our AUM scales and our revenue shifts more towards fee-recurring revenue. We expect the margin profile to hold or improve because every dollar of AUM-based or technology-based revenue carries a structurally higher margin. Why is that important? Multiple expansion. Our revenue breakdown is Abacus Life Solutions is about 84% of our total revenue. It's the engine, it's fantastic. By 2028, we expect that to be about 40% of total revenue, and by 2030, 30%. To be clear, that's not saying that Abacus Life Solutions is going to shrink in total.

It's just as a percentage of total revenue, it'll be smaller because of the anticipated growth we're going to see in asset management, wealth management, and technology, all of which carry a higher valuation multiple than Life Solutions revenue alone. Here's where it really matters. We're at 16% fee recurring revenue today. Every 10 percentage points that we make towards our goal of 70% is an estimated 2 to 3 turns multiple expansion. That's not incremental. That's transformational. On top of a return on invested capital backdrop of 20% at the end of 2025, which is well above our cost of capital, which means every $ we're reinvesting is compounding at meaningful spreads. The 100 bagger framework requires compounding. Compounding revenue, compounding margins, and compounding business quality.

The platform that we've assembled, LifeArc, our asset management business, the Manning & Napier strategic alliance, and Abacus Intel are all strategically designed to deliver on all three. Before I hand it over to Elena, I want to leave you with this. We're delivering strong results, our trajectory is clear, and our compounding business is just getting started. I'm now going to hand it over to Elena, our Chief Investment Officer, who will be our host for the rest of the day. Thank you. Sorry. Good morning, everyone.

I'm Elena Plesco, Chief Investment Officer at Abacus Global Management, and I want to spend the next few minutes on something slightly different, Bill already given you the financial update. I'm not going to talk about fund management. We have a whole section on that. My job this morning is to help frame how we believe investors should think about Abacus. The common mistake is to define a company by the most visible transaction it facilitates, rather than the infrastructure underneath that helps facilitate enterprise value. With that in mind, we'd like to walk you through what kind of company we're becoming. I will start with a question. I'm expecting participation from the audience. What is Amazon's largest revenue-generating business? That is incorrect. I was planning to plant someone to say that, but I didn't need to.

The answer to that is still core commerce. Selling goods is the oldest part of what Amazon does, and clearly to a lot of you, not a very exciting part. Now let me ask you a different question. What is Amazon's one of the most important profit centers? That answer is AWS, yes. Cloud infrastructure, a business that did not even exist for the first decade of the company's life. Here's what I find instructive. AWS did not come from a strategy offsite where someone decided that Amazon should become a cloud company. It came from e-commerce. Amazon needed to build technology infrastructure to operate its own marketplace at a massive scale, and over time, that infrastructure it built for itself became valuable to companies far beyond Amazon.

The core revenue engine funded and necessitated the infrastructure that became one of the company's most important profit centers. That is the lens I want you to use for Abacus. I know people were asking me, is there going to be an analogy? Yes, this one. Today, origination is our largest revenue engine. It's bringing policies, bringing clients, bringing data into the ecosystem. It is the oldest part of what we do, and some may find it not very exciting. Origination is exactly what allowed us to build LifeArc. We did not wake up one day and decided to bolt on a technology story. We needed better data, better mortality insight, better verification, and better pricing. We needed tools to understand how long assets may last and how to think about individuals' longevity. We built those tools. Just as with Amazon, the technology that we built from an internal need is now becoming a business in its own right.

Before I get to that, and we will talk about LifeArc a lot today, let me frame the company itself. Depending on where you enter our story, you may think we're an origination company, an asset manager, data provider, a wealth platform, a technology company, or some sort of business connected to insurance assets. There is truth in all of those descriptions. None of them really capture the full picture. The mistake would really be to look at one part of Abacus and assume it's the whole company. You've heard us talk about the flywheel a lot, and we will continue talking about that more today. I want to touch on two concepts that sometimes get used interchangeably.

The rails are what we own, and the flywheel is what happens when those rails reinforce one another. What we're actually building is the infrastructure for lifespan linked finance. We're building the rails. Origination brings assets, clients, and data into the ecosystem. Abacus Intel through LifeArc turns that flow into personalized lifespan insights, notification, underwriting, and pricing. Wealth from Manning & Napier turns a consumer liquidity event into a long-term planning relationship. Lastly, asset management turns our proprietary access and underwriting discipline into institutional products and fee-paying AUM. With our new pathway into ABF really extending our runway into the broader asset-based finance space. Not to forget about distribution because that moves products, relationships, and capital both domestically and globally. Origination is how assets enter our system. Distribution is how capital enters. You need both to create liquidity.

Later on today, you will hear from Corey, Monty, and Martin on all of those pieces of the business. Why is it that owning the rails matter? Well, the more rails we own, the more we control our own destiny. A traditional asset manager oftentimes relies on third parties to bring them capital and even product. A traditional originator has deal flow but frequently fails to capture the downstream economics. A traditional data business has analytics but lacks captive assets. A traditional wealth manager owns the client relationship but fails to provide any proprietary insight. Well, as for us, we do not wait for someone else's deal flow, and we don't rent someone else's data. We build the rails, we would like to set the terms.

In the Abacus flywheel, those rails allow us to do a multitude of things, such as provide consumers with liquidity, put forward institutional-grade products, and build recurring economics for our shareholders. We build the rails, and the rails are what made LifeArc possible. LifeArc is not just simply a product that sits on top of our platform. It is really the intelligence layer that we have been building towards. I just want to kind of caution you, LifeArc is not an insurance tool. It came from insurance, just like AWS came from inside of a retailer. What it actually does, it turns lifespan into a personalized, quantified financial input. Lifespan should not be an insurance variable. It really is the missing variable in nearly every financial decision a person makes. Think about how we build portfolios today.

We have spent decades getting really precise about risk, return, correlation, volatility. We've modeled markets to the basis point. When it comes for the most important input in any individual's financial life, we reach for an average. We solve a deeply personal 40-year problem by applying the lifespan of a population the person doesn't even belong to. That is the gap. Your portfolio is built for the average person, but you're not an average. Nobody is. LifeArc closes that gap. It is the input that lets us build investment portfolios personalized for you around your lifespan. It is not a guess. It is personalized to how long your money actually needs to last. Now every retirement drawdown, every annuity decision, every glide path, they all depend on one number. How long? Until now, that number was an average. LifeArc makes it yours. Once that input exists, we believe it really belongs in every single portfolio.

We do believe personalized lifespan will become a standard input in portfolio construction. The company that owns most accurate, most defensible view of an individual lifespan will own the input that everything else runs through. That's not simply a feature. That is real infrastructure. As you listen to the rest of the team today, I would encourage you to not hear each section as an individual business unit update. Each of them is a rail in the same system, and when those rails connect, the flywheel starts to turn. That is the investment thesis. Not one product, not one segment, not one transaction. The whole system is the thesis. This system has been building towards the input that finance has always been missing.

If we execute, Abacus does not merely become a participant in lifespan-linked finance. Abacus would become a company that is building the infrastructure that allows this entire category to scale. The various parts of Abacus are, of course, interesting, but the platform is what matters. Please join us as we're building the intelligence layer for lifespan-linked finance. Thank you. Let's see. Now we will move to the more interesting portion. I know last year you have met a lot of our division leaders. This time there will be a lot of new faces as well. First up is Jeff Smith, our Chief Marketing Officer. Jeff has been with the company for almost a decade. I believe somewhere in the fall is his 10-year anniversary.

Jeff probably remembers the time when the marketing budget was probably what it cost to throw this event. Now he's in charge of multimillion-dollar ad buys. He will take you through a lot of our AI and data strategy as well. Welcome, Jeff. Thank you, Elena.

On my first day at Abacus, Shane McGonnell, our CRO, had to go down the street to our local Best Buy to pick up my first computer. At the time, as Elena just mentioned, my advertising budget was $100 a day. We had maybe 15 people in the entire office. That was 2016. We are now a New York Stock Exchange-listed company that originates over 100,000 consumer direct leads every year, has participated in billions of dollars of alternative asset transactions, and is active in four unique, distinct, separate business lines, all on infrastructure that we designed and built ourselves. At the outset, I want to clear something up. My title is Chief Marketing Officer, but that word, marketing, doesn't necessarily do a great job at telling you exactly what we do at Abacus. We integrate marketing and operations by design.

We build tools that improve close rates, not just lead volume. We own the attribution infrastructure across TV, digital, and radio. Right now, together with Armando Cabrera, who you will hear from next, I am co-leading a complete digital transformation of all of our companies and merging them into a single data infrastructure that allows us to do things with data and clients that weren't possible in the past. That may not be where your head goes when you think about marketing, but that's by design. One principle we consistently come back to every time we are planning or building any tools like this is the same thing. We don't borrow tools, we build them. That's been true in marketing since day one, and it's what I want to show you here today. The way I think about marketing is as a revenue engine, not a cost center.

In most organizations, marketing and operations are separate roles with separate functions. Marketing generates leads, creates interest in the business. Operations handles everything that comes next. At Abacus, we made the deliberate choice to integrate the two. Increasingly, those integrations are being handled through the use of AI. I will give you one example of many, and we will talk more about AI in a little bit. Right now, when a lead enters our system, machine learning is working instantly, scoring that lead, enriching all of their data, and routing them across every single one of the companies in our umbrella to find the best possible chance for a revenue-creating event. What used to take a human hours, days, might not even happen at all, now happens in seconds. The best part about that is it's not a future state. That's how we operate right now.

An operational integration is what makes that model work, it's what allows us as a marketing department to do something most companies can't. We're able to connect every single dollar we spend to a specific outcome across all of our business lines. Before I go too far into the future state, I think to understand where we're going and where we are today, it would help you understand where we started. When I started Abacus, the job was pretty straightforward. Generate business, don't spend much money. Over time, as we continued to approach the foundation, which involved doing the SEO work, hunting down media placements free as often as possible, and building out the brand, we proved out what worked with the model. As we generated leads, generated revenue with that model, the budget increased. As the budget increased, we were able to spend more intelligently.

One of the ways that intelligent spend actually materialized for Abacus was through the construction of proprietary targeting algorithms with our own data. That means without relying on any third parties, without bringing in other data sources, we took 20 years of Abacus' data and built targeting algorithms that allowed us to generate business at a fraction of the cost of our competitors. We're still using those algorithms today, and every new lead we get, every phone call we make, every email, every piece of client data further informs those algorithms and makes our spend more intelligent. The key insight from those early years was that every piece of infrastructure we built, we built to last.

Now I want to go into the thesis that I've been driving for this fiscal year, because I think it shows one of the ways, at least, the vertical integration creates value in our business. The goal is simple to state. I never want an unqualified lead. That obviously doesn't mean that every lead that comes in through every channel needs to qualify for exactly what they expressed interest in. What it does mean is that across four business lines, we should be able to find a fit for every single consumer who raises their hand. I'll give you an example of that. On the Life Solutions side of our business, someone might express interest in selling a policy. Often those leads don't qualify. We have a very specific buy box.

What we know about that lead is they expressed a dissatisfaction with their policy in some way. What we can now do is have the conversation, connect them directly to AccuQuote, for example, where they might be a perfect fit. Take a wealth management client, for example. We're now engaged in conversations with that individual across their entire financial lifespan. Products like LifeArc, Life Solutions, really every part of our business will come up over the course of those conversations. The verticals feed one another, but only when the infrastructure exists to enable that. That infrastructure is something we've spent the past several years perfecting, and with our unified data platform now in place, we're able to score, enrich, and route leads in real time. We generate over 100,000 leads a year. The question has never been, can we generate them?

The question has been, across 4 business lines, how can we turn that volume into real revenue for all of our companies and not just one? I'm going to talk about AI. Mentioned it earlier. When I talk about AI, I don't mean plugging into someone else's models, licensing a chatbot, or bolting a preexisting vendor tool onto a process we're already doing. When I talk about AI at Abacus, I mean machine learning models that we built with our own data. I mean agentic automations that we built for our own workflows and tools that we own outright, that don't rely on anybody else's models or any form of third-party data to operate. That distinction matters, and it matters for the same reason that our first-party data strategy matters. Ownership creates a moat, and that moat gets harder to cross every single year.

Here's what that looks like in practice. One example is AI Voice, which has effectively extended our operating hours by 16 hours a day and a full two days a week. In the past, when I run a national prime time television campaign, most of that interest is generated in the evening or over the weekend. Our call center operates 9:00 to 5:00, Monday to Friday. AI Voice effectively closes that gap, and we're now able to meet consumers where they are, no matter when they reach out. It doesn't matter if it's in the middle of a Fourth of July weekend or at midnight. That effectively introduces them to our pipeline instantaneously and allows us to start actually acting on that client much faster than we did in the past. Leads no longer go cold overnight or during a long weekend.

AI Voice is just the most visible example of something much deeper. Origination is becoming effectively more data-driven and AI-enabled across our entire platform. We're using AI to identify needs before consumers even raise their hands. Through utilizing better segmentation, more personalized outreach, and serving them relevant education at exactly the right moment. We're also ingesting more signals than ever, we're using those signals to generate higher intent consumers, reduce friction across our pipelines, and better equip advisors to make decisions immediately. The end result is a better equipped advisor on the back end and a more qualified lead entering our system. We've also deployed AI agents across the entire spectrum of our business. That includes case processing and making it more streamlined. That includes automated fraud prevention.

It includes things like internal LLM-powered chatbots that we use on all of our websites, that we built ourselves and aren't reliant on another model. The through line across all of this is that we built it. The important thing to take away from this is that marketing isn't just advertising anymore. It's a scalable education and acquisition engine that makes every single aspect of our business more productive. I want to walk you through media strategy, because I think it's a little bit different than how most companies handle it in our space. When I consider media strategy, I focus on intent capture and intent creation. Intent capture is what you probably think about when you think of platforms like Google, Bing, Yahoo, maybe meeting people directly in their inboxes. Increasingly, that means ChatGPT, Gemini, Claude.

It's showing up when a client's expressing interest in your brand and being the best possible option at that moment. What we find here are people that are searching for our space or people that are tertiarily related to our space within one to two degrees of separation. When you talk about next of kin, when you talk about people that look like a good fit, that's what this looks like. It's inherently data-driven, it's very efficient spend, and it creates really high-quality leads that close at a really great rate. Hearing all that, you're probably thinking, "Great, that's where we should spend all our money." You're telling me the leads are attributable, high quality, easy to generate. Great. The problem is intent capture is inherently finite and self-limiting. There's only so much demand in a space. You can only capture so many clients.

That's where intent creation comes in, and that's when we talk about things like the national TV campaigns, the radio buys, even things like billboards or brochures. A lot of people would usually call this traditional media. It's a little more expensive to originate, it's a little less efficient, and it's very hard to handle attribution around that space. Sometimes impossible in some cases. It does something that you can't replicate in any other way. It creates demand, it builds intent, and it drives consumers to our platform in a way that nothing else can. In that way, it actually makes our intent capture model more efficient. It makes it more productive because more leads are coming into our space.

We're taking a spend with some weaknesses, driving it into a spend with a lot of efficiencies, and in that way, interestingly, the more money we spend on TV, typically, the more efficient our spend becomes in gross. The strategy for us was always to build intent capture first, perfect it, capture every consumer that enters our space, and always be the best option, and then, and only then, move into intent creation. You don't build the fire before the fireplace is ready, and that's why you didn't see Jay's trademark sweater on TV until 2023, not 2016. I want to take a step back and talk about how everything we've talked about today actually connects. Some of this will be a rehash because I think it's important that we bring it all together.

Abacus operates across four business verticals, and the question investors reasonably ask is: how do those four business verticals actually complement each other rather than just operate alongside one another? The answer is the operational spine. As previously mentioned, we recently completed a full refactor of all of our separate operating environments, bringing all of our disparate data points into a single source. Every lead, every client record, every transaction, one environment. What does that actually mean in practice? It means that when a consumer enters our system through literally any medium, we can now score, enrich, and route that lead in real time across all of our businesses to find the best possible revenue-generating result. I want you to take a second to think about what happens, for example, when we facilitate a life solutions transaction.

Let's just say a million-dollar policy that we purchased for $250,000, just for illustrative purposes. That's money in motion. The question we can now reasonably ask, because we have the infrastructure to ask it is: does the client have a plan for that capital? What happens next for them? Usually, the answer to those questions is they don't know, and no. Now, with the infrastructure in place to properly facilitate all of these things, we're able to meet every single consumer exactly where they are. I started at Abacus with a computer Shane McGonnell got me at Best Buy, a $100 a day budget, and a blank whiteboard. What we've built since then isn't just a marketing department.

It's a proprietary data and origination engine that generates over 100,000 consumer direct leads a year, routes them intelligently across four business verticals, and helps to dig the competitive moat that gets harder to cross every single year. Under Jay's leadership and with the support of my incredible team, I've had the privilege to expand on what it means to lead marketing at Abacus. Thank you so much for the opportunity to talk here today, and I'm excited for what's next. I'll come down. Okay, thank you.

Up next, we have Armando Ferrara. He currently serves as President of Abacus Centaur. Since you saw him last, he got a promotion, and as you may recall, he is really the mastermind behind every technological piece Abacus has put in place. He will also be joined by Dr. Jay Olshansky, who's our Academic in Residence. I will not attempt to read his entire bio, but Dr. Jay Olshansky is one of the world's leading experts on aging and longevity and biodemography. Sorry, English is my third language. For more than four decades, his research has shaped our understanding on lifespan, healthy aging, and the outer limits of human life. Dr. Jay Olshansky is a very prolific author with dozens of papers.

He has been collaborating with a numerous amount of business entities and entities in academia, and he also currently is the Professor Emeritus at the University of Illinois Chicago.

Thank you, Elena. You're going to hear from Dr. Jay a little bit in a second, but today we're going to talk about the foundation that LifeArc is built on. We're going to talk about the development of LifeArc and how it actually works, as well as the applications we've been seeing in our business, as well as in the future. After that, we're going to have a quick M-Verify update and discussion on our mortality database. First, what is the foundation that LifeArc is built on? We've talked a lot about the data that we have and something that we've been aggregating over the last 20 years. Let's think about in our core business of Life Solutions. When we're purchasing an individual's life insurance policy, what information is needed?

Well, we need to get the medical records for this individual to understand their impairments, all the comorbidities that they may have, to understand what that asset may look like and what the duration may seem. From there, we've aggregated millions and millions of pages of medical records that help inform our models. It's not just the medical record data that we have. In addition to that, we need to be able to attach real outcomes to the individuals we've seen over the past two decades to understand what the true lifespans they actually experienced. With that's where our mortality verification mortality database, or M-Verify, yields results for LifeArc. It's not just the data. The data is a vital component, but something unique we're also able to do at Abacus is provide expertise that no one else in the market has.

You heard Dr. Jay's bio. When we look at our data, we're not just simply putting a model or a machine learning model or AI on top of it and hoping for good outcomes. What we're doing is we're applying longevity expertise to help interpret and understand the context that this data is in. Things like understanding why certain outliers occur and adding nuance to scenarios that no model can understand. This allows us to take our data to the next level. Now, what's the last set of expertise that we have here at Abacus? Well, today we've talked a lot about accurate lifespans and the fact that LifeArc can produce accurate lifespan estimates. When we use that word accurate, what does that mean? Think about that for a second. When I say our lifespan estimates are accurate, how would you define that accuracy?

Just take a second to think. I'm thinking, too. I think the answer is very dependent, but let's say for an individual, they have a 10-year lifespan that we estimated, and they live 10 years. Would you say that was an accurate estimate? I hope so. If you said yes, I'd agree. That's not the world we live in. What if that individual lived nine years, maybe 11 years, maybe 15 or 20? At what point do you say that is no longer an accurate estimate and that accuracy falls off? I think the asset management expertise that we have at Abacus allows us to answer that question a lot more intelligently. If you think about our core business, when we're purchasing life insurance policies, we may want to optimize our models based on a different factor than we will for in the financial planning space.

The most sensitive area of cash flow in a life insurance policy and when affecting the value of that policy is in the early-stage mortalities. Maybe instead of optimizing on the midpoint or the lifespan of an individual, we will optimize the precision in the early years of their survival distribution. That question kind of flips when you ask an individual what are they most scared about in retirement. If that fact is running out of money, do we really care about the midpoint or the early-stage mortalities as much as we do as the worst case scenario for them? Instead, what we can do is we can apply this expertise to optimize the models based on these 90th or 95th percentiles that give our clients in financial advising the confidence that the data that they're seeing is accurate and precise.

The data that we have builds that foundation, and the expertise we apply sets us apart as well. From there, I'm going to allow Dr. Jay to go into the predictability and longevity science behind lifespans, and I'll continue after that.

All right. Thank you very much for having me here, by the way. It's an absolute honor and a pleasure. I'm actually going to be brief. I have one slide with almost no words on it. I do like to keep it simple. I actually want to emphasize something that Jackson said earlier, which has to do with this issue of healthy life. 4 years ago, I testified before Congress on this very issue of manufacturing healthy life, which is what aging science is all about. As it turns out, there's a direct link between how well you deal with your finances during the course of life and how much healthy life you can manufacture later. There's a direct link. A lot of this concept of a LifeArc, which gives you a sense of where you're likely to be headed in the future, is extraordinarily valuable.

This looks like a pretty esoteric figure here. It's actually not. What you're looking at here is one of the most famous lines in public health, in epidemiology, in a variety of different scientific disciplines. About 200 years ago, an actuary by the name of Benjamin Gompertz came up with a formula, a very simple formula, that described the dying out process of humans. It was pretty simple. Depending on how old you are, what's your risk of death? All of you have been using the Gompertz formula, believe it or not, even though you're probably not aware that you have been using it, you have been using it for quite some time, and it's fairly simple.

The risk of death for humans doubles about every seven to eight years. That line there, which by the way, is on a semi-log scale. Right, it's a log scale vertically, arithmetic horizontally, which means when you see a straight line, that is a definitive explanation for an exponential increase in the risk of death. In humans, the risk of death doubles about every seven to eight years. It has never changed in human history. It likely will not change in the lifetime of anyone in this room. What did we do? We took all of the Abacus data from the last 20 years. We wanted to see how valuable that database actually is. Fairly straightforward exercise. We uploaded all of the data. Did it fit the Gompertz Law of Mortality?

The green line is the Gompertz Law of Mortality, and the red dots represent the Abacus data. What does that tell us? It tells us that the Abacus database is extraordinarily valuable. It can be used to help predict duration of life at the individual level. It can be used in a variety of industries, for example, in wealth management. It's sort of perfectly suited for that purpose. Keep in mind, at the individual level, of course, let's just say you're looking at age 85, we know that some people have a lower risk of death, that's going to be below the line, and some people have a higher risk of death, that's going to be above the line. LifeArc is designed to determine where you are on that distribution.

Nobody can determine definitively exactly how long you're going to live, but we can come pretty darn close to figuring out which distribution you're likely to be in. That's indicated by those green lines in the upper right-hand corner. At the population level, we've got very stable data. At the individual level, you need more personal information about individuals. That's what you heard Armando talking about earlier. We've created And I like using imagery, by the way. We've created a number of knobs that we can turn that give us a better sense of how long individuals are likely to live. The more information you put in there, the more knobs we can turn, the closer we can come to figuring out how far above or below that average you are likely to be.

We've actually created what I refer to as a gold standard set of life tables, Abacus set of tables, that are designed to help us determine how long individuals are likely to live. It's an extraordinarily valuable resource. It's particularly comforting that all of the data follow the Gompertz Law of Mortality. I would point out, by the way, that we've demonstrated definitively over the years that this trajectory has in fact never changed. The fact is that some subgroups of the population do much better than others. For example, individuals that are wealthier, more highly educated, tend to be on the lower side of that distribution, lower mortality, longer life. Individuals that have more challenging health conditions are in the upper side of that distribution.

I'm just trying to emphasize the importance and the value of the database that Abacus has in hand, and it will grow more valuable with time. I'm going to stop there. Thank you. Thank you, Dr. Jay.

Now I want to emphasize a point that we've kind of reiterated today. LifeArc is not something that's new to Abacus. LifeArc is something that's been powering our core business for years now. When we think about acquiring a life insurance policy, what is one of the key inputs? Well, we need to understand the risk profile of an individual and how long they're expected to live. LifeArc has been powering us to make smarter acquisition decisions on these assets before we buy them. Once we own these policies, what does it help us do? As we continue to aggregate more data and more medical records for a given individual, it allows us to make more intelligent sell or hold decisions on the assets we actually currently own.

This sets us apart in the market as we have additional data that we can then utilize to manage our book more efficiently. Now, we're stepping into a new frontier, and that frontier uses the exact same engine of LifeArc that we've been utilizing for years. That engine is the same. That same point you need to value a life insurance policy is that same data you need to use to create the most educated and intelligent financial plan for every consumer. Again, Jeff said it, and we've said it before as well. These are not licensed or leased products or data that we bought from anybody else. This is data that we've been building for decades, and this allows us to have no third-party dependencies, and it's something unique to us. This cannot be easily replicated.

Now as we shift focus, how does LifeArc actually work? Well, let's think about some of the data that we have. If we look at the medical records that we have, what do those really look like? Well, a lot of times it's going to be scanned digital PDFs. Maybe it's going to be a scanned paper document on somebody's phone. Maybe it's doctor's handwriting, which might be a little bit more difficult to read, at least for me. All of this information exists in an unstructured format that's not usable for any modeling. What is our first step?

Our first step is to ingest all of this unstructured information and use natural language processing to understand the context around all the medical records, as well as optical character recognition to read somewhat unreadable doctor's handwriting or scanned PDFs to allow us to put this in a central structured database, and that sets the foundation for our models. Once we have our central database, we now have to think about what makes an individual unique, what factors about an individual allow us to understand their unique life. Simply put, maybe we're going to extract features such as gender, maybe we're going to get age. Those are more of the simple ones. Let's think a little bit more complex because the human population, especially in the U.S., is very complex. We're going to need things like how many impairments do they have?

What is their most severe impairment? Not only that, what is the progression of that impairment over time? These are just some of the hundreds of features we're extracting from our central database to create an accurate model. This model, again, I talked about accuracy, and it depends on the context. This model produces accurate lifespans in a point estimate, but also a distribution of survival for that individual. Additionally, we're also creating a clinical summary that is easily interpretable for both financial advisors and clients to understand where does their lifespan come from, and where is the scientific backed research that justifies this in addition to our data. Not just that. LifeArc is not static. Your LifeArc is an arc of probabilities, just as Jay has said.

As your LifeArc continues to grow and you have new investment goals or you have new medical impairments or medical records, LifeArc updates with you and in real time. We not only adjust for the real-time trends we see in the population, but also with the data that's specific to you. This data is so vital to you, and it's so hyper-personalized that nobody else can recreate it, and it constantly updates no matter what happens in your life. You might say, "Armando, whoa. You're talking a lot about how LifeArc works and what you guys did to develop this. Aren't you a little bit scared? Isn't that your secret sauce?" To that, I would say, if I bundled our models and created our complex models and gave them to you today, you're going to have a great lifespan estimator.

In a week, you're going to call me and you're going to say, "Look, this has been working great." I'm going to agree with you. I think those models are great. You know what? You're actually a week behind us now. Why are you a week behind us? Because the infrastructure we've built allows us to capture the data that's occurred. There's been a week more of medical records we've aggregated. A week more of real mortalities that could affect trends that are affecting each individual. This information sets us apart. We're not just data. We're the infrastructure to aggregate and analyze that data. What does LifeArc look like now and in the road ahead? We've said it a bunch. We want to be the intelligence layer of financial planning.

We're going to be the AI and data tool that advisors use to educate their clients on one of their most important inputs to their financial plan, their lifespan. As we look at what we're doing, we've had a lot of excitement around LifeArc, several meetings, and several integrations that we worked on. LifeArc was built to be modular. It was built to meet a client or advisor at every phase of life. We can integrate seamlessly into existing wealth management platforms so that advisors can use our information immediately and without adjusting their workflows. We've also built a proprietary platform where if you want more detailed and interpretable results, clients and advisors alike can log in and see where the lifespan comes from and how it's generated. In addition to that, LifeArc, as I said, is not static.

The mortality data that we aggregate on a daily basis continue to feed the models and create the most up-to-date information without the need of actuarial estimates or studies that could take years to occur. I think that yields us into a good transition point to talk about mVerify or mortality verification. mVerify is our product that aggregates the deaths that occur across the United States every single day. We boast a 97% national coverage, as well as a less than 1% false positive rate in the deaths we report. mVerify isn't just an internal product. It's something that we also sell to hundreds of clients, as I think Bill had mentioned earlier. What do these clients look like? These clients are usually pension funds, unions, or life insurance companies.

mVerify allows them to prevent fraud and overpayments when an individual passes away to stop their pensions, as well as for life insurance companies to either stop annuity payments or pay faster life insurance claims. If we think about it's not only the data that mVerify has, but it's also the speed to that data. Normal state databases can take two to three months to report deaths, whereas mVerify usually does it within the first week. If you can see here, we've made significant market penetration. We've over doubled the amount of lives we've been tracking since Q1 of 2025. Why is that important? Well, mVerify is a subscription-based product that our clients pay an annual fee for based on the number of lives we're tracking for them.

The reason why we're able to charge this subscription-based model is because as mortality events occur every single day, we continue to add value to our clients. Just think about the technology we've talked about today. Everything we build at Abacus is extremely intentional. If we think about why are we incentivized to build a better mortality verification product? If you ask yourself that question, well, we have a whole servicing division that focuses on finding when individuals have passed away and getting our life insurance death benefits quicker so we can rotate our capital sooner. Not only that, mVerify feeds directly into LifeArc, just as we've talked about today. Whether it's LifeArc or whether it's mortality verification, everything we do is built upon our core and has continued to grow and create a scalable future for Abacus. Thank you. I'd like to invite back Jay, Bill, and they will also be joined by Jim Morrow, CEO and founder of Caladyne Capital.

For the next few minutes, we will do a panel on wealth planning. Thank you. We were just going to have Bill talk about this, but I thought it'd be way more fun to crowd his party.

No, go on. I'll start.

For some of you who attended our investor days in the past, we are always honored and excited to have James Morrow with us from Caladyne Capital, and he's got an awesome history. I did learn in an actual meeting with Mr. Peter Lynch that you were assigned to him. How did that go? You were at Fidelity for what, 17 years, right?

Yep. 18, yep. 18 years. $50 billion in AUM and equity income fund.

Yeah, that's fun. How did they do that with the mentor, right? Because Peter Lynch was there, right?

I started as a summer intern.

Okay. When I got hired full-time, they assign you a mentor.

Yeah. They're like, "Your mentor is Peter Lynch.

Nope. Okay. No pressure. That's a pretty wild way to start your career.

Yeah. Yeah. Yeah. I spent a lot of time with him.

That's super cool. Jim has made investments in all kinds of industries and businesses and runs what I believe to be one of the top hedge funds in our country and has grown exponentially. He has a unique outlook on not just Abacus. Now, I do have to say, all hands on table, his funds don't have any type of ownership, but was part of our original IPO when we went public, and has some shares at the corporate level. With that said, one of the things that we get to do is I get to engage and get perspective from people like James Morrow on how do we think about the opportunities that we build, like LifeArc.

When we first thought about entering the vertical of wealth planning and what that might look like, we knew we had to have some kind of key differentiators, because as a market maker in the insurance side, which you just heard from Armando, what would this look like and how do we capitalize? You heard from Jeff on all the leads we generate. How do we capitalize on those? For us, this flywheel was incredibly important to be able to say, we can monetize this in other ways in a very thoughtful, intelligent way, but it didn't happen overnight. Bill's background, for those of you who've heard some of this, yeah, he hasn't just been with us for six years, but Bill was the CFO of Transamerica Financial Advisors, right?

Yep. Did I get that one right?

Yeah. Different financials at John Hancock and also was at McKinsey.

That experience he had at Transamerica Financial Advisors, thinking about where these products may or may not actually fit. Jim, I will start with you. When you think about some of the things you've heard today, specifically around LifeArc, the scalability of that market, and I threw around a number, $124 trillion wealth transfer. What does that typically mean? When you look at companies and you say, "Hey, there's big opportunities here," where do they fit? Is it important to be the guy selling it or the person building it?

Yeah, I think- Both. I think building it and leveraging what you've built is sort of the key value proposition.

I think markets in general, and humans in general, have a hard time differentiating between linear and exponential sort of change.

Yeah. I think your original core business, $250 billion a year of policies that lapse that you can address, that's an amazing opportunity.

Yeah. 5% of what you described is $5 or $6 trillion, right?

Right. That's exponential change in the opportunity set, and your ability to create recurring revenue models around that changes the story of Abacus from what it is today to what it can become in a way that's really hard for markets to understand and appreciate.

It'll take time, you'll compound over time with that story, but that type of rate of change is one of the things that Peter always talked about.

Right. Is that the market usually struggles in that moment to fully grasp, right?

Everybody's obsessed with AI right now, everybody knows about NVIDIA and other things.

That's the building of the infrastructure. The ultimate winners will be companies that can apply that technology.

Right. I can't think of a bigger market than $120 trillion to apply that kind of technology against with proprietary data.

That's the real change that the market will have to absorb and price in over time.

When you think about over time, you see this happen often, over time in mindsets from your perspective. When they start to price in not just on the Abacus stock, but you think about some just huge players in the wealth market who are talking about this. Like I had said, I was on stage at the Milken Institute with JP Morgan and the Milken and HSBC. Their primary focus was on product to address us. I think what we were trying to talk about were some customized solutions. How long do you think until when a market looks at something like this and they start to see, "Hey, we should start to adapt it." What do you typically see in those cycles?

I was told never give a price estimate and a time.

Yeah. Time is tough. Markets, it can ignore things for a while, and then suddenly price them in.

Again, if you think about wealth planning and you think about asset allocation, right now that whole process in an enormously attractive industry is missing an incredibly important piece of information, is how long am I planning for?

Right. I think that addressable market for LifeArc is just, I don't even know how to quantify it.

Right quite honestly. It's a really important input to that process.

Right that's missing today. Can you capture that market with the host of advisors that are out there, that all of their clients will benefit from that knowledge?

It'll take time for it to penetrate. When the market recognizes it is hard to say.

It's interesting, too, because we've talked about if you think about $124 trillion, 5%, that'd be amazing as a market share.

Yeah. What's that, Bill? What's that, about $6 trillion?

Yeah. Yeah. That's what's super interesting.

I'll tell you what I found interesting about LifeArc was that one of the outputs you saw specifically in our case example, we have lots of these now. Let's be clear, we are literally generating converting leads, like the one I showed you. That person's policy who had $8 million of liquidity and net worth, you know what their policy size was that we purchased? $300,000. Right? This mindset of, oh, they only have a $300,000 policy, therefore they must not have a lot of net worth. I still think the thing that really excited him in the end, and he was so funny, he goes, "I don't need $316, just give me $200." I was like, "Oh, okay, well, $200 is the number, you're taking $160, so great." The fact that the 25% growth to legacy, right?

When you go to the $120 trillion and we're going to add 20%-30% of additional value to that wealth transfer, we can all do the quick math. That study was done by Cerulli Associates, who came out in very conservative asset allocations. When you add what LifeArc brings, LifeArc actually brings another $20 trillion to the transfer. $155 trillion is actually what LifeArc we think that wealth transfer will be. That's what I think is so unique about that. Bill, you're at Transamerica Financial Advisors. Think about going back then, some of the things that you guys were selling, some of the products that you were representing in both insurance and financial planning, how do you think LifeArc would've impacted?

It would've been a game changer. You just think about all the different things that are impacted in a financial plan by the length of time that you need it. Obviously duration, but how are you going to structure retirement income? How much do you need to reserve for just long-term care? It would be a complete game changer. No one's doing this today.

When you sold the Transamerica bit, you sold that, right? You were part of that.

We sold the majority of it to John Hancock.

To John Hancock, right? How much would the price would've gone up with LifeArc? Imagine that. You can go back to your Transamerica friends and say like "Hey, I could've made you another $100 million if you had this program." Right?

Absolutely. Yeah. That is, I think, one of the things we're talking about fundamentally.

It doesn't just add value to what we see as, of course, the underlying client, but if you can add value to the company who adopts it, and that's where I'm hoping we see this. Jim, back to you for another thought process around this. When I look at this, how we price in a LifeArc model so that it can be adopted. One of the things we've talked about, Matt brought up serial acquirers. We're arguably serial investors for sure, and with what we've been able to make a minority investment in a group like Manning & Napier. Could you maybe give some just maybe macro viewpoint on the impact to Manning, the impact maybe that you see in a company like Abacus, and then what that might look like for the whole market?

Yeah, it's hard to even quantify. If you can help grow a firm's assets organically 10% or 20% with an adoption of a technology, just to put that in perspective, in the wealth industry, that may represent five or seven years of organic growth that can be captured.

That's an enormous value add.

Yeah. How you think about coming to market with that data and that information and that acceleration, and how do you share in that success with both the firm and most importantly, the end client?

I'm always struck by this is sort of one of those rare wins across the board, that people can access wealth that may be trapped inside of a life insurance policy and get to enjoy that themselves and with their heirs before they die. That's really important to people.

Right. Right? That's your time to enjoy what you've accomplished or what you've accumulated.

I think for any wealth firm, that's just an enormous opportunity that is dormant today.

Right. Everybody's working hard in the industry.

Everyone's trying to add value for clients. This is sort of a new arrow in the quiver, right? To be like, "Hey, we've never talked about this.

Right. You get a natural engagement with Gen Two, which is the holy grail.

Right of wealth management. How do you sort of move to have a relationship not just with the individual, but their heirs?

It's an incredibly exciting technology for the industry to look at.

Yeah, we feel the same. Bill, we're talking about how we best price this. Right. We can talk about some of that. There's a couple of different mindsets around it where you do a per life and say, "Hey, here's a dollar amount that you might charge per life." We talk about understanding the value of what this brings to someone. I remember an old quote that I had heard that said, "Cost is only important in the absence of value." I think it's one of those things. When you look at industries in the past that do very well, people are always going to pay their electric, they're always going to pay for these things.

To get updated medical information on an annual basis that most people never have, that's going to feel like something like paying, we say, their cable bill, but now it's a different type of Google bill or whatever they pay. Bill, when you think about the financial structure of this, I know we've talked a little bit about how we build this into more of a revenue-sharing model. If you want to talk and elaborate some of that.

Yeah, absolutely. I think this plays into our recurring revenue theme of we have a 70% target long term of having fee recurring earnings, just having this charge be something that's annual based on assets. I think that just makes this timeframe go even faster.

I guess add to that, too, to the sense of if you're accreting value, meaning we're adding 20%-30% return, you just measure that against your cost, right?

Absolutely. I'm not going to put you on the spot, what are we thinking about?

What are we going to charge? You're COO, CFO. Boy. No, I'm kidding you.

I don't want you to say that out loud yet because we haven't rolled it out. What I would like you to think about is that operationally, what we need to do operationally to continue to expand that. What are our costs to run this? Which is also compelling and when you think about the margin on LifeArc and that part of our business, what does that look like, Bill?

Anything that's coming out of Abacus Intel and LifeArc, it's structurally higher margins. It's really improving our margins over time, which goes along the line of the 100 bagger framework.

I got him to say it. It's taken me five years to get someone, six years to get Bill to talk about 100 bagger. Jim, last question, then we'll wrap up. Businesses like this and how we're integrating flywheel, Lana highlighted, if you look at Amazon and they were really good at establishing a flywheel that was infrastructure-based. We all thought AWS. By the way, I answered AWS when she first asked me the question. I didn't realize. I was like, "Oh, okay." It's these other things. It's the financial infrastructure sets you apart. What I find interesting too is the multiple expansion. We talk a lot about growing the business on revenue. Talk about companies that have maybe even as Abacus and we're adding these types of verticals, what that potentially looks like and how that impacts those things.

Yeah, the market is arguably obsessed with what are called incremental TAMs or total available markets that are very large as companies move through their natural life cycle. What you're talking about is opening up a TAM that is many multiples the size of your current one, and you're doing it in a way that is in a model the market really resonates with over time, which is called, you're building a data layer and a technology platform and then offering mass customization.

Yeah. Right? That's Amazon. We all have individual relationships with Amazon, right?

They know what you want, they know what you order, they know where your house is, right?

Yeah. That mass customization is what makes it such a phenomenal model.

You're talking about taking that and saying, "I've got your individual medical data. I've got asset allocation frameworks and financial frameworks, and I'm taking that data and putting it together and offering you mass customization, a very custom plan based on an aggregate of data." That's just a remarkable expansion in your business opportunity. The market will recognize that as it starts to play out. Multiples are hard to predict, but certainly companies like that have been able to demonstrate that, achieve very high multiples if they can compound growth over time.

First of all, thank you. Thank you both for your insight and input on where Abacus, as we talk about, is looking, and we're targeting over the next three to five years. I think Jim said something also very thoughtful and correct. We're not distancing ourselves from our core business. Our core business is a massive opportunity. It lapsing north of $250 billion in paper every year, and we grew $1 billion in AUM just last year, growth and lots of opportunity. When you look at what we put out for three years going forward, we talked about this kind of, "Hey, what does 2028 look like?" What I tend to focus most on is I'm looking at $250 million EBITDA and what's that path there.

A $250 million EBITDA puts us, I think, very right in the center of where we trade at, even at current multiples as a solid, near mid-cap stock. That's the growth that you want. You want that path, if you look at the path to get there, you look at the Life Solutions business that's continually growing at 15%-20% per year, you're talking about these other verticals. What happens is that we have a clear path to that $250 million. As you consider the growth that we have in our core business, you're adding on some really interesting fee-related earnings businesses that are recurring revenue through asset management, wealth management, and things like LifeArc technology, which will be a recurring business model. It's a very clean path to that $250 million, I think that's what we're very excited about.

The other side, which Jim just highlighted, is that we also think that during that time period, the market will start to recognize a multiple expansion with it. When you start to think about where pricing comes in, we'll be one of those, I think, very unique businesses that isn't just in a single position that people will look at this as almost a separate ecosystem and economy where people can capitalize on their financial advice, their planning and their solutions in a single location. What we do know historically, as Matt will point out, markets pay significant for that type of business, so thank you.

Amazon still sells books. Amazon, thank you for saying that.

Amazon still sells books, and they sell a lot of them. I bought a couple, including Matt's. I'll get as many plugs in for you as I can, Matt. Thank you. We appreciate it. Let us know if you have any other questions.

Go ahead. For our next session, I'm going to do a little fireside chat with Samantha Butcher.

Oh, are we going to Get cozy.

I'm going to do a fireside chat with Samantha Butcher. She is the President of Life Solutions. I think a lot of you do not get a lot of airtime with Samantha because she is busy making money, oftentimes at least 12 hours a day.

Enough people get airtime with me. It's okay. We decided instead of having her just present on the industry, we'll make this a little more interactive.

For those who don't know, Samantha has been at Abacus for over 20 years, and it was actually her first job out of college when she graduated from University of Florida with a degree in math. I guess, Samantha, before we dive in, how did you decide to go to Abacus? You were 22 years old.

You know, it's funny, I was just maybe a little bit of a math geek who just wanted to find something that I could utilize that, but also be in the business sector. That's how I started. That makes sense.

Yeah. Actually, I don't know if a lot of you guys know, so before Abacus, so I was at KKR, and the longevity assets was one of the sectors that we started investing, and I spearheaded that initiative.

Very similar to Samantha, that's what attracted me to the asset class because we do a lot of analysis in finance, Most of the analysis ain't that good. With longevity assets, you can actually model those assets in a very detailed way. In a very similar way, that attracted me to the space.

Yeah. Let's dive in. I prepared a lot of questions for Samantha.

Great. I have notes. I guess before we get into the numbers, maybe just walk someone what's the day-to-day in Life Solutions looks like.

What does your team do?

Let's think about Abacus Life Solutions and our typical client, right? We're speaking with 75-year-olds who have million-dollar policies that they've been paying on for 20 to 30 years, right? Now they're in a part of their life where it's changing. Their kids have left, their house maybe is paid for, or quite frankly, they can't afford the policy anymore. Normally they thought they had two options. They could stop paying premiums and just lapse the policy, or they could give it back to the carrier for what little surrender value it may have. What they don't realize is we are a third option for them. Instead, they can come to us, sell their policy, get meaningfully more money than the carrier would give them. That's the opportunity that we provide.

From day one when they call, we help them from everything, from gathering their medical records, looking at their underwriting, pricing the asset, helping them through closing and paperwork to acquire this asset. That's what Abacus Life Solutions does. We find the policies, we price the policies, and we turn them into assets for these individuals. Everything you've heard today from Jay to Armando, everything begins because our department purchases the policy.

Awesome. When someone hears that, like when I first heard that, it's like, "Oh, it's a no-brainer. Everyone should be doing that." I think the statistics that we quote, there are $224 billion of policies that lapse every year- The market penetration is quite low.

Why do you think that is?

You have to think of the market. There's $14 trillion of life insurance policy. According to the Conning Report, I think of that $224 billion was policies that would qualify for what we consider a life settlement. Last year, as an industry, we only transacted on $4 billion to $5 billion of life insurance. That's only a 2%-3%. Why is that? It's not demand, it's awareness. People just don't know that this asset exists. They don't know that it's their property that they can sell. To unlock that, you have two different things. Distribution is super important. You heard Jeff talk about the marketing and our TV campaign, and we work with 30,000-plus advisors whose job it is to make their clients aware of this transaction. Next, we unlock it just with demographics, right?

We have an aging community right now, 65 million over the age of 65. That's going to grow to 75 million over the next 8 to 10 years. That's how we continue to build the funnel and unlock the value of those assets.

Awesome. Q1 has been a pretty big quarter for us. I think we've reviewed 24,000 policies total, out of which 9,000 were qualified. I think as Jeff mentioned, AI was a big contributor to that. How do you think that trend evolves? When are we going to need more bodies? Is AI going to be doing all the work?

AI is exciting, especially for what I do, because if you think about us purchasing these assets, it's a process from when we first get the policy to the medical records, the underwriting, and through the closing. If you just think about the medical records, that has been a slow process. You're gathering hundreds of pages of records. You're analyzing them just to determine if this is a viable policy for our market. Now we're able to use AI to review those records in hours, not days. Why is that important? You have consumers that are in a part of their life where they just can't afford their premiums. They're looking at something where this money is going to be useful in their life. The faster we can acquire these policies and take it through the flow of the acquisition, the better for that.

You think about AI, the bodies you said that we're using to evaluate these medical records or underwriters that we need. Now, we can do more policies over faster time with less people.

That allows us to buy more, but still maintaining those strong margins that we have.

To grow further, do you think what's the constraint? Is it capital? Is it capacity?

I actually don't think it's either of those. If you think about capacity, that's just an infrastructure that we're able to handle through AI and whatnot. Capital, we're able to turn our book two times a year, so we just fund our own growth.

I don't think either of those are the constraint right now. I bring it back to the awareness. That is what's super important for us to make sure everyone is aware of this, and we're able to capture that now with marketing.

That makes sense. Maybe I'll ask two questions that I think might be top of mind for our investors. Of course, earlier today, we've spent a lot of time talking about recurring revenue, how this is what we're calling Abacus Life Solutions the least exciting part of the business.

The boring part. The boring part.

How do you think investors should really think about Abacus Life Solutions in the broader Abacus ecosystem?

I don't think you should look at Life Solutions as a balance sheet business, but more of a flow business, right? Jay said it earlier, we are the market maker. Every policy that we are acquiring, we are then trading either to our own asset managed arm, third party institutional investors, or through securitizations. If you look at first quarter alone, we were able to realize revenue in real cash, not marks, not models. Life Solutions was able to do that. When you're talking to investors who are looking at these models, they're seeing the real transactions and the real profits- that we are able to do.

Yeah. I know. Obviously, again, Life Solutions is very profitable, which allowed us to build LifeARC and do all the other fun things that we're doing because of the profitability. A lot of the times what I think investors ask me, and when I was first looking at the Abacus model from my prior seat, was like, "Whoa, you make so much money. Someone else is bound to swoop in and compete with you.

What do you think about that?

Ugh. It's just not that easy. I think when you're thinking about, like you said, the margins, why aren't people knocking down the door to get into this industry? It's not that easy. You have a couple different factors that make us successful in this. First, it's the licensing. We're licensed in 49 states. That took us 20 years to get here. Every state is different. They require different paperwork, different things we have to submit to them, and it's a slow process. Some states take months, some take years, and we've built that over the last 20 years. Second, I think the data is super important. When you're pricing these assets, it's highly based on lifespan, and over the last 20 years, we have this proprietary mortality data that we use to price this asset.

If anyone comes in without having that, they could make some real costly mistakes real early. Data is super important. We look at origination. We continue to be the origination engine, and with the TV campaign and our relationships with our advisors, we've built a brand that people trust. This is such a trust-based transaction, right? You have 75-year-olds who want to trust their counterparty because this is a lifelong transaction. Last, it's the capital. You have to be able to build the balance sheet and then trade the balance sheet, and we've been able to do that.

Definitely. Earlier today we were talking about how the rest of the business is going to look three years from now. How do you think Life Solutions looks three years from today? Any other parting thoughts for our guests?

I think Life Solutions will continue to be a bigger engine on a bigger platform. We've talked today about AI, that's going to allow us to be faster and quicker and acquire these policies at a cheaper cost. We're going to continue to be an origination engine and have these relationships and make sure clients are not continuing to lapse their policies. You have to remember, we are a market maker in a market that's right now only 2%-3% penetrated. Right? Our competition isn't everyone else out there. Our competition is the awareness. It's 90% of policies that are lapsing right now because they're not aware of it. If we can just bring 1% of awareness, we've already built the platform, we have the licenses, we have the data, we have the brand.

That's what makes me super excited and super compelled to bring this forward.

Thank you, Samantha. Thank you.

For those of you who have not spent much time with Samantha, do catch her during lunch and ask her more questions. Thank you everyone. Thanks. We will now move over to the asset management portion.

Up next will be Corey McLaren. He's been at Abacus for two years now. However, he has been in the industry for over 20 years. He has been a portfolio manager at numerous funds prior to joining Abacus, and right now he is the lead portfolio manager on the Longevity funds.

Good morning, ladies and gentlemen. As you can see, I drew the short straw when it comes to portfolio, or excuse me, presentation spots, because I have to follow the difficult fireside chat, especially with Elena and Sam on stage who always do a great job. All kidding aside though, we just had the opportunity to hear about how important our Life Solutions division is in driving growth at Abacus. About how we built this machine, this origination engine for sourcing assets, high quality assets sourced in high volumes. What are we doing with them? If origination creates the assets, asset management packages them in the most attractive way for investors around the world to access. That's what I want to talk to you about today, how asset management drives growth at Abacus. For those of you who don't know me, my name is Corey McLaren.

As Elena mentioned, I've been with the firm for almost two years now, but I have over 20 years of experience working with the underlying assets. I see a lot of you are probably thinking, "He doesn't look that old," and I appreciate that, but I am. Abacus Asset Group is the fastest growing vertical at the company. We have over $3.5 billion of assets under management with over $2.5 billion in our Longevity funds and another $700 million plus across ETF assets. We have a suite of products that includes both onshore and offshore investment funds, separately managed accounts, and securitization vehicles. We're launching new strategies like our asset-based finance strategy that Monty will talk about, as well as an S&P-linked longevity strategy that offers investors some downside protection.

If we're talking about new strategies, I'd be remiss if I didn't mention that we just launched our interval fund. The interval fund is the first registered access to lifespan investing. Think about how that will enhance our distribution capabilities. It'll put us in front of a new audience. Individual investors and their financial advisors will now have a registered access point to our asset class, a registered access point to Abacus. We're incredibly excited about that and all the new initiatives that we have, but for now, I want to speak about where we currently stand and what have been the biggest growth drivers for us from an asset management perspective. In particular, our Longevity funds. In March of 2025, approximately 15 months ago, we launched our Premier and Enhanced Income Funds.

Those funds, unlike the traditional buy and hold strategies that the market had to offer, those funds pay quarterly distributions to investors, which proved to be very valuable. Over the course of a 15-month timeframe, we raised almost $1 billion of new capital across those vehicles. In Q1 of 2026 alone, we saw almost $300 million of new capital inflows, and through Q2 we were tracking to be north of half a billion dollars. We have tremendous momentum right now. What do we attribute that to? Yes, we launched some new funds, but what is it that's generating so much interest in the asset class? For starters, the underlying asset has an incredibly attractive risk profile. There's a high degree of principal protection because remember, we're purchasing contracts issued by life insurance carriers.

As long as we fulfill our contractual obligations, those contracts will cash flow, those carriers will pay claims. The carriers I'm talking about, they're A-rated, they're cash reserve regulated on a state-by-state basis. There's no more senior obligation for a life insurance carrier than the obligation they have to pay a death claim, and as a result, there's near zero default history. On top of all that, the underlying investment has incredibly low correlation because returns are driven by mortality. Human mortality, not interest rates, market cycles, or foreign affairs. It's an incredibly attractive asset to own. Let's take it one step further. What makes us confident in our ability to grow from three and a half billion dollars of AUM up to $5 billion or up to $10 billion and beyond? What is it that makes Abacus an institutional caliber manager?

Well, there's four things I want to highlight, the first of which is scale. Institutional investors typically make larger investments, which means we have to be prepared to deploy larger amounts of capital, and that's where that origination engine becomes so important. As we take in additional investment dollars from these institutions, we feed them into that origination engine. That scales accordingly and sources more assets. Number 2, and I'm going to go out of order here, number 2 is structure. Structures or funds create access points, and it's important that we have different access points that meet the different needs of investors around the world. Now, that could be debt versus equity, onshore versus offshore. The $1 billion of new capital inflows that we saw in our income funds, those were institutional investors who are comfortable with an equity style fund investment.

The securitization, on the flip side, is a rated debt offering, That speaks to an entirely different audience of investors, like banks and insurance companies. Having those different access points is important to capitalize on the different types of interest we receive. Three is awareness. Pretty self-explanatory, but you have to be out there telling your story to stay top of mind. Distribution drives capital. We partner with some allocators that get us in front of new audiences. We participate in events like the Milken Institute in order to increase our exposure. No matter how attractive the underlying asset may be, if investors are not aware of what you have to offer, it doesn't matter. Number 4 is data. Data drives confidence, as does experience on both sides of the aisle.

As a manager, data gives us confidence in the decisions we make and the new products that we launch. For investors, knowing that we are operating with the data and experience that we have, they have confidence in our ability to hit our targets. What data do we have and what are we doing with it? At the core of every decision made at our firm is this repository of data that we've been building for over 20 years. 20-plus years of data related to health impairments and mortality, but also 20-plus years of data related to life insurance contracts and how they price. We make data-driven decisions related to underwriting, new policy selection, portfolio construction, and ongoing portfolio management. Recently, we started capturing that data at both the asset level and the deal level on blockchain as a means of creating immutable records.

Those immutable records drive security and efficiency in the transaction. For us, for now, blockchain isn't the strategy. It's not the asset, but it fortifies both of those things. In addition to enhancing security and transparency and efficiency, blockchain can be used for scalability and liquidity. If you think about where we currently stand, we have a little over 100 assets on blockchain, but it's our goal by year-end to have our entire portfolio tokenized. What that's going to do is put us in front of an entirely new audience of investors who have an appetite for digital assets, investors who are looking for tokenized cash flows. Again, we're very excited about what lies ahead of us. We're very proud of how far we've come.

In closing here, I want to kind of circle back to where we started with that origination engine, the origination engine that creates the supply, the assets that are fed into our asset management business, where we develop the structures that can be distributed around the world to investors. As that new capital comes in, we feed it back into the origination engine and the system repeats and it scales. We've built a powerful engine, we've built a powerful system, and it's one that we've built to scale, and it's one that we've built on 20-plus years of data and experience. I'll leave you with a quote. I wasn't sure if I was going to include this or not, depending on timing, but I'm looking at Elena and she said I have a minute.

I'll leave you with a quote, the quote is from a French industrialist from the 1800s by the name of Jean Baptiste André Godin. The quote is, "The quality of our expectations determines the quality of our actions." At Abacus, we expect to be the gold standard for all things longevity and lifespan investing. We expect to grow our AUM from $3.5 billion up to $10 billion and beyond. It's the quality of the actions we're taking today and the processes we implement today that prepare and position us for the future we're expecting. Thank you very much. Hope you enjoyed the presentation. Monty. For the next section, we will speak about our expanding asset management business.

I think we've gotten a lot of questions, kind of like, "Why do you have this other product?" Well, fun fact, when you do well, your investors ask what else can they invest with you. The broader asset-based finance universe actually encompasses longevity market assets. Longevity market assets are just a flavor of a variety of other things that can be doing in asset-based finance. A lot of those things are database. They have a lot of very similar characteristics, and our investors demand that we offer more product to them. Earlier this year, we hired a very good friend of mine, Monte Koch, who is leading that effort, and he will take you through the presentation today.

Good morning. You've heard today about how the Abacus Asset Management business, Abacus Asset Group, creates durable shareholder value through fee-related AUM. One of the ways that we grow that fee-related AUM, as you heard from Corey, was we increase our longevity fund products. The other way that we grow that fee-paying AUM is through adding additional strategies, new investment strategies. The more strategies we can grow, the more we have to offer investors. Every new strategy we add is a new source of recurring fee-paying assets. That diversification matters now more than ever, right? You heard about that $120 trillion generational wealth transfer. The more strategies we can offer, the better positioned we are to capture more of that $120 trillion.

Today, I want to introduce the newest engine of that growth, a new ABF strategy that we are building. I'll walk you through our platform, the market opportunity, what makes our approach different, and what it all means for long-term value. First, a quick grounding in what asset-based finance is. ABF is lending against assets, the things that power everyday main street commerce, mortgages on where people live, credit cards and auto loans behind how they buy, equipment and commercial loans behind how businesses operate. Take equipment finance. A specialty lender originates thousands of leases secured by things like tow trucks, forklifts, manufacturing machinery, but it can't hold them all on its balance sheet. It needs capital to keep lending. ABF can provide that capital. By lending against those pools of leases, the contractual cash flows repay us, the equipment is the collateral behind it.

Multiply that across mortgages, credit cards, auto loans, equipment and commercial finance, and you see just how massive the market is and the built-in diversity. The key point, this isn't abstract or exotic. It's financing tied to the whole economy, which is exactly what makes the market so significant. Why do we like asset-based finance? It's the natural evolution of our alternative assets expertise, and the market is enormous and under-penetrated. The addressable market is something like $20 trillion for ABF, and it's only about 4% penetrated. Compare that to the corporate credit market, which is about half the size, $10 trillion or $11 trillion, yet it's 16% penetrated. That implies roughly a 4x plus room for growth. It's diversified across numerous verticals, right? Commercial finance, hard assets, consumer finance, contractual cash flows. This is why we're building ABF, for the market opportunity.

The market is benefiting from a dramatic, extraordinary structural shift. Over two decades, banks have retreated under regulatory pressure since the global financial crisis. In 2023, we had the regional banking crisis, and that really accelerated it. The private ABF market has grown something like 67% since 2006. It's clearly at an inflection point and poised for institutional scale. Fewer dedicated players in a large target-rich, data-rich market. Early movers with real expertise win. Also, for the portfolio benefits. Low correlation to corporate credit and structural advantages like liquidity and cash flows and shorter durations. For the superior risk-adjusted returns, the historically lower losses versus a corporate credit and structural downside protection that's inherent in the strategy. Here's what makes our approach different. We deliberately target the mid-market sweet spot, which is this, call it under $200. We have $100 here, $100-$200 market.

It's generally underserved. It's as a result of the fact that the mega platforms have moved up market where they can deploy their capital more efficiently. Less competition means wider spreads on our credit investments, stronger covenants and structural protections, more lender-friendly documentation, all without taking on weaker credit. That's how you create alpha. Our ABF strategy also benefits from more thorough underwriting of the originator and the assets, and also, the fact that I just realized someone's flipped my slide here. We'll get to it. By sourcing opportunities through these deep relationships, look to avoid competitive processes and benefit from both team-wide and Abacus-wide relationships as we source these specialty finance insurance transactions. As Elena noted, senior team here has more than a decade of experience working together, targeting transactions in the sweet spot, and also originating numerous proprietary transactions.

The bigger story for investors is fee-related earnings. As the strategy scales AUM, it creates a durable stream of fee-related earnings, the high quality, high multiple earnings that the market rewards. Because it runs on our existing platform, that growth compounds the value of the asset management business. We're building and launching this now. It's one of the ways we create the long-term value and also position the platform to capture more of that $120 trillion wealth transfer. Beyond the direct revenue, there are significant secondary benefits. First, cross-sell. ABF is a logical addition to our asset-driven longevity strategy. Second, client stickiness. Investors in multiple funds simply don't leave. The lifetime value goes up. Third, platform leverage. We're adding strategies to the existing Abacus platform. By adding those strategies, we're reusing compliance, operations, finance, IR infrastructure. The marginal cost is a fraction of building standalone.

Every strategy we add makes the entire platform more defensible, more valuable, and more attractive. The core message I'm going to leave you with on value creation, product depth is a competitive moat. ABF accelerates that moat building. Thank you. We have one more presentation before we move to outside speakers.

Martin is one of the newer additions to the team. Martin is based in Luxembourg. He is the COO of the Abacus Asset Group outside of the U.S., and he has a wealth of experience in working in various European jurisdictions, such as Luxembourg, Switzerland, and Liechtenstein. He has worked at a variety of businesses, both large and small, and he has held role across finance, investing, and operations, which is why we're very fortunate and lucky to have him join our team because, of course, we're all looking to expand our asset management capabilities globally, even more so than we have today. Welcome, Martin. Thank you very much.

Welcome, Martin. Thank you, everyone.

Good morning also from my side. I'm between you and a couple of very interesting interviews, it'll take about seven minutes. I do operations. We're on time. My name is Martin Larsen, and I'm the Chief Operating Officer for Abacus in Europe. Elena spoke about the concept of rails and how long-term value of a platform increasingly resides in the infrastructure it owns rather than in the individual transaction. I would like to spend a few minutes on discussing one of those rails, which is capital formation and distribution, EMEA, Asia. One of the observations from the well-known Hundred Bagger Study was that exceptional long-term businesses tend to share several characteristics. They operate in large addressable markets. They continuously invest in infrastructure around their core businesses, and they build capabilities that support the long-term compounding.

In financial services, that infrastructure increasingly includes governance, product manufacturing, and distribution. That is where Europe and the rest of the world plays an important role for Abacus. Europe represents one of the world's largest pools of institutional alternative investment capital. Today, approximately $8.1 trillion of alternative investment fund assets under management. This is money that's already invested in products in Europe. That's addressable assets for us. Importantly, this market is not defined only by the scale, but also by the sophistication of the investor base. Pension funds, insurance companies, private banks, wealth managers, institutional allocators, they continue to increase the exposure to alternative assets as they seek diversification, income generation, and differentiated return streams. One of the observations from the Hundred Bagger Study was that exceptional businesses tend to operate in very large markets and continuously expand the infrastructure around their core capabilities.

We believe there is an important lesson here for alternative asset managers. Competitive advantage is no longer created solely by originating differentiated assets. Increasingly, it is also created by building efficient access to institutional capital. Let's say, put differently, long-term platform value is created by controlling both access to differentiated assets and access to capital. As private markets have matured, institutional investors have become increasingly focused on governance, transparency, risk management, and operational resilience. Again, the Hundred Bagger Study also observed that many exceptional businesses continuously invest in infrastructure around their core competencies, and we've seen a similar evolution in private markets. Institutional capital increasingly requires institutional frameworks before capital can be deployed, at least at scale. In Europe, the Alternative Investment Fund Managers Directive and framework, which we call in everyday speak the EU passport, emerged as one of the infrastructures supporting this institutionalization process.

More recently, AIFMD, Alternative Investment Fund Managers Directive 2, has continued to reinforce these themes to enhance the governance, delegation of oversights, liquidity management, and regulatory transparency. The broader point is not regulation. The broader point is that institutional capital requires institutional infrastructure. Elena described how Abacus is building the rails that support lifespan linked finance. Those rails includes origination, data servicing, asset management, and distribution, and Europe plays an important role within that broader capital formation and distribution infrastructure. The European AIFM framework and the EU passport supports capital formation through governance and product infrastructure and distribution. Investor protection creates confidence, governance creates accountability, and product infrastructure creates investable structures, and distribution provides efficient access to institutional and professional capital. Taken together, these capabilities create the infrastructure required to connect investment opportunities with institutional capital.

This is important because as asset classes mature, competitive advantages increasingly comes not only from owning the differentiated assets, but also from owning the infrastructure that enables efficient capital formation. That means that we're slowly coming to the end, but I'll leave you with a few takeaways and that's in particular three observations. Institutional capital requires institutional frameworks. Governance, transparency, operational resilience remains the prerequisites for institutional allocations. Second, distribution is a core platform rail. Elena described how origination data servicing supports and creation and management of investment opportunities, but distribution performs a complementary role by connecting those opportunities with institutional capital. Long-term platform value increasingly comes from controlling both access to assets and the capital. Third and my last point today, one of the recurring observation from the Hundred Bagger Study was the exceptional businesses continuously invest in and expand infrastructure around their core competencies.

In financial services, that infrastructure increasingly includes governance, product infrastructure, and distribution. In that sense, Europe is not simply a geography. It is part of the infrastructure that helps connect institutional capital with investment opportunities and support the long-term scalability of our broader platform. Thank you very much for your time. Thank you for coming. Over to you, Jay.

Awesome. Thank you. Martin, you can go that way and get Martin. Martin. Hey, Bill, send him that way to get to Martin. All right. Well, this has been, I think, an amazing day thus far of sharing with you, and hopefully you feel the same way about Abacus' team as I do. It's compelling, they're confident, they all have a great deal of experience in everything that we do, but it's an example of our culture. Also, everyone you heard from today is a shareholder of Abacus. They have ownership in this business. I think that that's one of the things that I'm most proud of is that when we think about how businesses are run and successful over a long period of time, Matt said it really well. Everyone you heard from today is a founder.

They have been with this business for many times, in Samantha Butcher's case, 22 years. Now, maybe not in the definitive sense that some of us think about what a founder looks like, but to me, that's what the founders are. They're everybody that you've already heard from, the breadth of our team, and they all have the same alignment that each and every one of you do as a shareholder I kicked off my commentary today around this concept of time and Abacus being the market maker of the most scarce, most valuable resource there is. My hope today is that if you've heard these conversations, you heard from Armando how valuable that is, but how we can actually definitively start to set a price on that. We heard that things were pretty accurate from Dr. Jay Olshansky.

Now when you take accuracy, foundation, platform, and you start to now think about how that can build into the other verticals, now you can see why I'm up here, and I am so excited about what's coming next. When we think about what's next, the stock price is going to continue to grow because we're going to continue to put forth the things that really matter, continue to compound our earnings, but even more so than that, expand our multiple with businesses that are complementary to what we already do. That's really the secret. You kind of heard that from James Morrow. Multiple expansion is where you see significant growth in businesses, and that's what we're really starting to, in fact, step into. I want to first and foremost say thank you to each and every person who had dialed in on our live feed.

Dialed, this isn't 1986. It's like AOL. Who signed in through their internet platform of some form into our live feed. We want to thank you for participating in the Investor Day. For those of you that are here live, stay seated, because as a special treat for everyone who comes live to our Investor Day, we always hold two interviews or a few interviews that are only for the people here that are live. I want to leave you with this quote from the live feed. We talked about how Benjamin Franklin had the quote that time is money. There's another quote that I like and it's from the founder of Rolex. What he said was that a Rolex doesn't just tell time, it tells history. Because Rolex has solved this idea around the value of time just differently. It was in a watch.

Abacus Global Management tells the future. When you think about the value of that time for each and every one of you on that arc, think about the scalability and think about the impact and the difference that Abacus is going to have on every single investor, advisor, consultant, and firm, how we're already applying it and how we're going to apply it next. Thank you to our live feed audience. Everyone else, please stay seated. We're going to see you again. If you have any questions from the live feed, you can always submit those to our IR team.