Abacus Q2 2026 Earnings: Revenue Rose as GAAP Profit Fell

Abacus Global Management (NYSE: ABX) reported Q2 2026 revenue of $73.0 million, up 30% from $56.2 million a year earlier, while diluted GAAP EPS fell to $0.07 from $0.18. Life Solutions drove the revenue increase, but acquisition-related spending, personnel costs, and other expenses weighed on GAAP profitability even as adjusted EBITDA increased. The results cover the quarter ended June 30, 2026, and were released on August 6.

Core Earnings Data

Revenue growth did not carry through to GAAP earnings. Gross profit rose more slowly than revenue, operating income declined slightly, and net income attributable to Abacus fell 62% as operating and other expenses increased.

Adjusted results were more favorable, although adjusted EBITDA margin contracted by 1.4 percentage points. Operating cash flow also improved substantially, but the reported figures cover the first six months of 2026 rather than the second quarter alone.

“Gross” adjusted net income and EPS are presented before the estimated tax adjustment. The detailed reconciliation lists Q2 2026 after-tax adjusted net income of $22.3 million and diluted adjusted EPS of $0.23. It also lists Q2 2025 gross diluted adjusted EPS of $0.22, compared with $0.23 in the press release’s summary table.

Business and Revenue Performance

Life Solutions was the principal growth engine. Including related-party revenue, the category generated approximately $65.4 million, up about 38% from $47.3 million in Q2 2025. It represented nearly 90% of total quarterly revenue and more than offset weakness in asset management.

Combined asset-management revenue declined approximately 18% to $7.2 million from $8.8 million. Technology-services revenue more than doubled to roughly $379,000, but it remained too small to have a material effect on consolidated growth.

Longevity funds attracted approximately $256.1 million during the quarter and $544.2 million during the first half, exceeding the company’s $500 million first-half target. For context, Abacus raised $604 million during all of 2025, although the two periods are not directly comparable.

Abacus also completed a $53 million minority investment in Manning & Napier, which had approximately $18 billion in assets under management and 3,400 clients. The companies established a referral channel and began rolling out Abacus’s LifeARC platform across Manning & Napier’s adviser network. Separately, Abacus began tokenizing in-force life insurance policies during the quarter and launched the ABX Longevity Growth and Income Fund after quarter-end.

Revenue Growth Did Not Translate Into GAAP Earnings Growth

Abacus added approximately $16.8 million of revenue and $13.8 million of gross profit year over year, but total operating expenses increased by approximately $14.8 million. General and administrative expense rose to $33.0 million from $18.9 million, while sales and marketing expense increased to $5.6 million from $3.3 million.

The non-GAAP reconciliation shows that stock-based compensation increased to $6.9 million from $3.5 million. Business acquisition and special-project costs reached $7.6 million, compared with less than $0.1 million a year earlier. These adjustments help explain why gross adjusted net income rose even as GAAP net income declined sharply.

Below the operating line, total other expense widened to $10.5 million from $0.8 million. Interest expense remained substantial at $8.3 million, compared with $8.8 million in Q2 2025. As a result, the decline in net income was much larger than the modest decrease in operating income.

Profitability, Cash Flow, and the Balance Sheet

Adjusted EBITDA increased by $8.4 million, but its margin declined to 54.7% from 56.1%. The lower gross and adjusted EBITDA margins indicate that the costs accompanying growth rose faster than revenue in parts of the business.

Operating cash flow for the first six months reached $130.9 million, compared with $14.5 million in the prior-year period. Management attributed the improvement to the platform’s increasing cash-generation capacity as longevity fund assets under management scaled. This is a year-to-date measure and should not be treated as quarterly cash flow.

At June 30, Abacus had $23.4 million in cash and cash equivalents, down from $38.1 million at the end of 2025. It also held $383.0 million of life settlement policy assets at fair value and reported $330.6 million of outstanding debt, net of issuance costs and discounts. Other investments increased to $73.0 million from $18.3 million, while the carrying value of treasury stock rose to $80.2 million from $55.8 million.

Earnings Guidance

Abacus provided gross adjusted net income and EPS ranges for Q3 and full-year 2026. The company said the Q3 EPS range implies growth of up to 17% year over year, while full-year adjusted net income implies growth of 17% to 24%.

The company did not provide comparable GAAP guidance or a reconciliation because it said acquisition costs, tax rates, and other potential adjustments could not be forecast accurately without unreasonable effort.

Recent Insider Transactions

The supplied six-month aggregate classified 2,017,654 shares across 16 transactions as purchases and 122,158 shares across six transactions as sales, producing net purchases of 1,895,496 shares. The underlying recent records include stock awards as well as sales, so the aggregate should not be interpreted as consisting solely of open-market purchases.

The latest individual records show three sales on August 3 and several stock awards granted on March 12. These transactions are presented objectively and do not by themselves establish insiders’ views about the company’s prospects.

Risks Investors Need to Watch

• GAAP expense pressure: Acquisition and special-project costs, stock-based compensation, and higher personnel-related spending created a wide gap between GAAP and gross adjusted earnings. Continued increases could limit the conversion of revenue growth into GAAP profit.
• Leverage and liquidity: Abacus reported $330.6 million of debt and $23.4 million of cash, while quarterly interest expense was $8.3 million. The value and liquidity of its policy assets remain important to the overall balance-sheet picture.
• Dependence on capital inflows: Management linked cash generation and platform growth to rising longevity fund assets under management. A slowdown in fundraising could affect fee growth, investment capacity, and cash generation.
• Execution across new initiatives: The Manning & Napier alliance, LifeARC rollout, registered interval fund, and policy-tokenization project are still developing. The company did not quantify their current contributions to revenue or earnings.

Summary

Abacus’s Q2 2026 results showed strong Life Solutions revenue growth, higher adjusted earnings, and a major improvement in six-month operating cash flow. However, rising operating and acquisition-related costs, stock-based compensation, and other expenses pushed GAAP earnings lower and reduced margins. The main issues to monitor are whether revenue growth begins to produce stronger GAAP profitability, whether longevity fund inflows remain elevated, and how effectively Abacus manages leverage while expanding its asset-management and technology initiatives.