Abacus Global Management launches $20M buyback program
Alternative asset manager returns capital to shareholders after strong 2025 performance with 124% revenue growth
Abacus Global Management announced a $20 million share repurchase program on Friday, signaling confidence in the alternative asset manager's long-term strategy and financial strength as the company seeks to capitalize on what executives describe as an undervalued stock price.
The buyback authorization, effective immediately, represents approximately 2.6% of Abacus's $770 million market capitalization and will be funded through cash on hand and free cash flow, according to the company's regulatory filing.
Jay Jackson, Chairman and Chief Executive Officer, framed the authorization as a direct response to the company's operational momentum. "This authorization reflects our confidence in the Company's long-term strategy, financial strength, and future growth prospects," Jackson stated in the announcement. "Additionally, this program further positions Abacus for continued growth while enabling shareholders to benefit directly from strong and sustainable earnings."
The buyback program follows an exceptionally strong 2025 performance, during which the alternative asset manager delivered 124% year-over-year revenue growth in the third quarter, reaching $62.98 million and comfortably surpassing analyst expectations of $50.17 million. The company also reported earnings per share of $0.24 for the quarter, beating estimates by nearly 30%.
Abacus, which operates across four divisions focused on life settlements, asset management, financial technology, and wealth advisory services, has maintained robust profitability with adjusted EBITDA margins of 60% and assets under management reaching $3.33 billion. The company's full-year 2025 guidance projects adjusted net income between $80 million and $84 million, representing 72% to 81% growth compared to the prior year.
Despite these operational metrics, management believes the stock remains undervalued. In a shareholder letter released earlier this month, the company noted that its shares trade at mid-single-digit multiples compared to peer averages near 20 times forward earnings. The stock closed at $8.05 on Thursday, well below its 52-week high of $9.61 but significantly above its 52-week low of $4.60.
The capital return strategy represents the latest effort by Abacus to balance reinvestment in growth with shareholder returns. The company recently completed a $50 million investment-grade securitized product offering and launched a new asset-based finance strategy, while also introducing an annual dividend. The January 8 shareholder letter referenced a broader 10 million share repurchase authorization, with Friday's $20 million program representing a specific component of that capital allocation framework.
Abacus's business model centers on alternative asset management across life insurance policy acquisition through Abacus Life Solutions, institutional and private client asset management via Abacus Asset Group, financial technology innovation through ABL Tech, and investment strategies from Abacus Wealth Advisors. The company completed its transition to the NYSE on December 30, 2025, positioning itself for greater institutional visibility.
The buyback announcement comes at a time when many asset managers face pressure to demonstrate efficient capital deployment amid evolving market conditions. By funding the repurchases through operating cash flow rather than debt, Abacus aims to maintain financial flexibility while reducing its share count at what management views as an attractive valuation.
Analysts forecast the company will report earnings per share of $0.19 on revenue of $55.38 million in the upcoming quarter, with further growth expected through 2026 as the company scales its origination platform and expands its technology-driven wealth solutions.