Q1 2026 Abacus Global Management Inc Earnings Call

May 7, 2026

Operator: Good day, ladies and gentlemen. Welcome to the Abacus Global Management Q1 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star 0. After the presentation, there will be an opportunity to ask questions. To ask a question, please press star 1 on your telephone keypad. To leave the queue at any time, please press star 2. Please note that this event is being recorded. I would now like to turn the call over to Robert Phillips, Abacus Global Management's Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead, sir.

Operator: Please note that this event is being recorded. I would now like to turn the call over to Robert Phillips, Abacus Global Management's Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead, sir.

Robert Phillips: Thank you, operator, thank you everyone for joining Abacus Global Management's Q1 earnings call. Here with me today are Jay Jackson, Chairman and Chief Executive Officer; Elena Plesco, Chief Investment Officer; and Bill McCauley, Chief Financial and Chief Operating Officer. This afternoon at 4:15 PM Eastern Time, Abacus Global Management released our Q1 2026 results. This afternoon's call will allow participants to ask questions about our results. Before we begin, Abacus Global Management refers participants on this call to the investor web page ir.abacusgm.com for the press release, investor information, and filings with the SEC for a discussion of the risks that can affect the business.

Robert Phillips: Abacus Global Management specifically refers participants to the presentation furnished today on Form 8-K with the Securities and Exchange Commission and to remind listeners that some of the comments today may contain forward-looking statements and as such will be subject to risks and uncertainties, which, if they materialize, could materially affect results. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Abacus Global Management's public filings. During the call, we will reference certain non-GAAP financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under US generally accepted accounting principles or GAAP. Please see our public filings for additional information regarding our non-GAAP financial measures, including references to comparable GAAP measures.

During the call, we will reference certain non-GAAP financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under U.S. generally accepted accounting principles, or GAAP.

Robert Phillips: With that, I'd now like to turn the call over to Jay Jackson, Abacus Global Management's Chairman and Chief Executive Officer.

please see our public filings for additional information, regarding our non-gaap financial measures, including references to comparable, gaap measures

Jay Jackson: Thank you, Rob, and good afternoon, everyone. Having had the pleasure of speaking with many of you in the weeks following our Q4 earnings call, I will keep my remarks focused and direct. I want to lead with the headline. Based on what we are seeing in the business today, we are raising our full year 2026 adjusted net income guidance from a range of $96 to 104 million to a new range of $100 to 106 million, lifting both the low end and the high end of our range. The new range translates into $1.00 to $1.05 in adjusted EPS. The conviction behind that decision comes from a few drivers we are seeing in real time.

With that, I'd now like to turn our call over to Jay Jackson, Abacus, Global Management's, chairman and chief executive officer.

Thank you Rob and good afternoon. Everyone having had the pleasure of speaking. With many of you in the weeks following our fourth quarter earnings call, I will keep my remarks focused and direct

I want to lead with the headline based on what we are seeing in the business. Today we are raising our full year 2026 adjusted. Net income guidance from a range of 96 to 104 million

To a new range of $100 to $106 million, lifting both the low end and the high end of our range.

The new Range translates into 1 dollar to 105 and adjusted eps.

Jay Jackson: We raised $288 million into our longevity funds this quarter, on top of the $275 million in Q4. By way of context, we raised $630 million across all of 2025. The step change in fundraising we saw at year-end has carried cleanly into the new year, and our pipeline continues to grow. In Q1 alone, we reviewed nearly 9,000 qualified policies, compared to roughly 11,000 across all of 2025. The flywheel is working exactly as designed. Increased assets under management drives origination, and our infrastructure is meeting that demand. That near-term visibility is what gives us the confidence to provide a forward quarter guide alongside our full year range. For Q2 2026, we expect adjusted net income of $24 to 26 million, or $0.24 to $0.26 in adjusted EPS.

The conviction behind that decision comes from. A few drivers, we are seeing in real time.

We raised 288 million into our longevity funds. This quarter on top of the 275 million in Q4.

30 million across all of 2025.

The step change in fundraising, we saw at year end has carried, cleanly into the new year and our pipeline continues to grow in q1 alone. We reviewed nearly 9,000 qualified policies compared to roughly 11,000 across all of 2025.

The flywheel is working. Exactly as designed increased assets under management. Drives origination and our infrastructure is meeting that demand.

Jay Jackson: I want to spend a moment in the shape of the year because the pace of our growth over the past several years has obscured a normal dynamic in how we operate. Revenue does not flow evenly across quarters. January is typically our lightest month, with activity picking up through February and March, then running robustly through spring and summer. August is generally a slower month for both deployment and fundraising before momentum picks back up in the fall and builds through a strong Q4 finish. Q1 ANI came in at $20 million. Q2 is guided to $24 to 26 million. The back half is historically our strongest, and that is the path to our raised full year range. Bill will walk you through business operations and financial results, and you will see that strength reflected across the metrics that matter. Elena will cover our KPIs and capital allocation.

That near-term visibility is what gives us the confidence to provide a forward quarter guide. Alongside our full year range, for Q2 2026 we expect adjusted net income of $24 to $26 million, or $0.24 to $0.26 in adjusted EPS.

I want to spend a moment in the shape of the year because the pace of our growth over the past several years has obscured a normal dynamic in how we operate.

Revenue does not flow evenly across quarters. January is typically our lightest month, with activity picking up through February and March, then running robustly through spring and summer. August is generally a slower month for both deployment and fundraising. Momentum picks back up in the fall and builds through a strong fourth-quarter finish.

Q1 Ani came in at 20 million.

Q2 is guided to 24 to 26 million.

The back half is historically, our strongest and that is the path to our raised full year range.

Jay Jackson: First, let me set up the two dynamics that I believe define this moment for Abacus. The first is the current macro environment and what it means for our asset class. The uncertainty that has characterized Q1 has created a defining moment across the alternatives landscape. Investors are reassessing where they allocate capital. They are moving toward assets that are genuinely uncorrelated from market sentiment and credit cycles. That is precisely what Abacus offers. Our yield is mortality-driven, not rates-driven. That means our returns are structurally uncorrelated. In this quarter, that distinction drove capital to us in a meaningful way. Assets under management grew substantially in Q1, fueled by capital inflows from investors who understand that we are not private credit, we are the alternative to it.

Bill will walk you through business operations and financial results. And you will see that strength reflected across the metrics that matter Elena will cover our kpis and capital allocation. But first, let me set up the 2 dynamics that I believe Define this moment for advocacy.

The first is the current macro environment and what it means for our asset class. The uncertainty that has characterized Q1 has created a defining moment across the alternatives landscape. Investors are reassessing where they allocate capital. They are moving toward assets that are genuinely uncorrelated from market sentiment and credit cycles. That is precisely what Abacus offers.

Jay Jackson: Now, I want to address something that is important for investors to understand clearly: the relationship between increased demand and purchase discount rates. As more institutional capital has flowed into the asset class, buyers are competing more aggressively for policies. That competition means buyers are paying more for each policy, which translates directly into lower purchase discount rates. I want to be emphatic about this. A lower purchase discount rate in our business is a positive outcome. It reflects rising asset values and expanded long-term spreads on the contracts we already hold, and we believe this dynamic will continue through 2026. The second thing I want to highlight is what I consider one of the most important proof points this company has ever delivered, and it happened this quarter.

Our yield is mortality driven, not rates driven. That means our returns are structurally uncorrelated and this quarter that distinction drove Capital to us in a meaningful way assets under management, grew substantially in q1 fueled by capital inflows from investors who understand that we are not private credit. We are the alternative to it.

Now, I want to address something that is important for investors to understand clearly the relationship between increased demand and purchase discount rates.

As more institutional Capital has flowed into the asset class, buyers are competing more aggressively for policies. That competition means buyers are paying more for each policy which translates directly into lower purchase discount rates. I want to be emphatic about this. A lower purchase discount rate in our business is a positive outcome.

It reflects Rising asset values.

And expanded long-term spreads on the contracts. We already hold. And we believe this Dynamic will continue through 2026.

Jay Jackson: Our LMA Income II Fund reached the end of its initial term. This is a fund we launched 3 years ago that grew to approximately $115 million in assets under management. At conclusion of its term, we returned capital to every single investor who requested it. 100% on time as promised. Returning investor capital at the end of a fund's term should be the norm. Across the alternatives industry today, it is not. At a moment when restrictions on investor capital have been commonplace, when redemption gates have become accepted norms, Abacus did what we said we would do. Here's what makes it even more meaningful. Approximately one-third of those investors chose to extend their investment, and another third reinvested their capital into our new products. This is not just capital retention. That is an affirmation.

The second thing I want to highlight is what I consider 1 of the most important proof points. This company has ever delivered, and it happened this quarter. Our LMA income to fund reached the end of its initial term.

This is a fund, we launched 3 years ago, that grew to approximately 115 million in assets, under management. At conclusion of its term. We returned Capital to every single investor who requested it 100% on time as promised.

Returning investor Capital, at the end of a funds term, should be the norm across the Alternatives industry. Today, it is not

at a moment when restrictions on investor Capital have been common place. When Redemption Gates have become accepted Norms Abacus did what we said we would do and here's what makes it even more meaningful.

Approximately 1/3 of those investors chose to extend their investment.

And another third reinvested their Capital into our new products.

Jay Jackson: Investors who had full optionality evaluated this asset, evaluated these funds, and chose to put more capital to work with us. That is the strongest endorsement we can receive. Bill will address the balance sheet impact in detail, but I will note that this event reduces debt on our balance sheet by more than $75 million, further strengthening our capital position as we move through the remainder of the year. Looking ahead, I want to highlight two transformational growth opportunities that I believe will define the next chapter for Abacus. The first is our investment in Manning & Napier. This relationship continues to progress with real momentum. The strategic alliance and distribution agreements are both taking shape, and we are already working to integrate our respective platforms. Manning's existing infrastructure is robust and well suited to support what we are building together. This is not a passive investment.

This is not just Capital retention, that is an affirmation investors who had full optionality evaluated, this asset evaluated, These funds and chose to put more Capital to work with us. That is the strongest endorsement we can receive.

Bill will address the balance sheet impact in detail, but I will note that this event reduces debt on our balance sheet by more than $75 million.

Further strengthening our capital position as we move through the remainder of the year.

With opportunities that I believe will Define the next chapter for abacus.

The first is our investment in Manning and appear.

This relationship continues to progress with real momentum.

Jay Jackson: It is a distribution partnership that we expect to materially expand the reach of our products to a broader base of advisors and their clients. We expect early results from that alliance in Q2, and we'll have more to say as that relationship matures. The second is our securitization program. Following the success of our first securitization, we are actively targeting a second significant securitization in late Q2 or early Q3. Securitization is a powerful tool for us. It allows us to recycle capital efficiently, diversify our funding sources, and demonstrate to institutional markets the quality and consistency of the assets we originate. A second transaction in this timeframe would represent a meaningful acceleration of that program and further validate the institutional credibility of this asset class. We will provide updates as that process advances. With that, I will turn it over to Bill.

The Strategic Alliance and distribution Agreements, are both taking shape and we are already working to integrate our respective platforms Mannings. Existing infrastructure is robust and well suited to support, what we are building together. This is not a passive investment.

It is a distribution partnership that we expect to materially expand the reach of our products to a broader base of advisors and their clients. We expect early results from that alliance in Q2 and will have more to say as that relationship matures.

The second is our securitization program.

Following the success of our first securitization, we are actively targeting a second. Significant securitization in late, Q2 or early. Q3

Securitization is a powerful tool for us. It allows us to recycle Capital efficiently, diversify our funding sources, and demonstrates institutional markets, the quality, and consistency of the assets. We originated

Our second transaction and this time frame would represent a meaningful acceleration of that program. And further validate the institutional credibility of this asset class.

Bill McCauley: Thanks, Jay. I want to cover 2 things. First, how the business operated during the quarter, and second, what our financial results reflect about the momentum Jay described. I'll turn it over to Elena for KPIs and capital allocation. Jay covered the headline drivers for the quarter. I want to get into the operational detail underneath them. The deployment volume Jay referenced ran through an origination process that remained highly selective. We reviewed a substantial number of qualified policies in Q1 and closed at a rate consistent with our historical standards. We did not relax underwriting to meet demand. The higher inbound flow simply gave us more to choose from. Elena will take you through the specific metrics, but the headline is that volume went up and quality held. The most direct evidence of how the operational pieces came together this quarter is the cash flow statement.

We will provide updates as that process advances with that. I will turn it over to Bill.

Thanks Jay. I want to cover 2 things first. How the business operated during the quarter? And second what our financial results reflect about the momentum J described.

Then I'll turn it over to Elena for kpis and capital allocation.

J covered the headline drivers for the quarter. I want to get into the operational detail underneath them.

The deployment volume J reference ran through an origination process, that remained highly selective. We reviewed a substantial number of qualified policies in q1 and closed out a rate consistent with our historical standards.

We did not relax underwriting to meet demand the higher inbound flow. Simply gave us more to choose from

Elena will take you through the specific metrics, but the headline is that volume went up and quality held.

Bill McCauley: We generated $91.7 million in operating cash flow in Q1 2026, compared to -$61.6 million in Q1 2025, a swing of more than $153 million year-over-year. That reflects three things converging at once: policies on our balance sheet generating cash through trading and maturities, the LMA Income II fund completing its initial term and releasing capital, and the underlying operating leverage of the platform as we scale revenue without a commensurate increase in cash costs. Cash conversion is the ultimate test of whether the model is working, and Q1 passed that test decisively. On the portfolio, the short version is that quality and margin are both tracking ahead of target. Realized gains for the quarter exceeded our 20% long-term benchmark, and our seasoned assets continue to appreciate in line with actuarial expectations.

The most direct evidence of how the operational pieces came together. This quarter is the cash flow statement,

We generated 91.7 million in operating cash flow in q1 2026, compared to negative -61.6 million in q1 2025.

A swing of more than 153 million year-over-year.

That reflects 3 things converging at once.

Policies on our balance sheet, generating cash through trading and maturities.

The LMA income 2 fund completing its initial term and releasing capital in the underlying operating leverage of the platform as we scale Revenue without a commensurate increase in cash costs.

cash conversion is the ultimate test of whether the model is working and q1 passed that test decisively

on the portfolio. The short version is that quality and margin are both tracking ahead of Target.

Bill McCauley: Elena will walk through the detailed KPIs of turnover, weighted average life expectancy, and insured age. The directional read is clean across the board. On LMA Income II, Jay described the fund outcome and what it means for investor confidence. I want to add the financial reporting dimension. Because of the fund's initial structure, we were required under GAAP to consolidate it as debt on our balance sheet. With the conclusion of the fund's initial term this quarter, that obligation unwinds. The result is a reduction in reported balance sheet debt of more than $75 million. I want to be precise about this. It is not a corporate de-leveraging event. It is the reduction of a fund-level consolidation from our balance sheet. The practical effect is that our reported leverage ratios improve significantly without any change in our underlying capital structure.

realize gains for the quarter, exceeded our 20% long-term Benchmark, in our seasoned assets, continue to appreciate in line with Actuarial expectations,

Elena will walk through the detailed, kpis of turnover weighted, average life, expectancy and ensured age. But the directional read is clean across the board.

On LMA, income 2, J described the fund outcome and what it means for investor confidence. I want to add the financial reporting dimension.

Because of the funds initial structure we were required under gaap to consolidate it as debt on our balance sheet.

With the conclusion of the funds, initial term, this quarter that obligation unwinds.

The result is a reduction in reported balance sheet debt of more than 75 million.

I want to be precise about this. It is not a corporate deleveraging event. It is the reduction of a fund level consolidation from our balance sheet.

Bill McCauley: I will address the specific metrics next in the financial section. Turning to our financial results, total revenue in Q1 grew 34.6% to $59.4 million, compared to $44.1 million in the prior year period. Growth was primarily driven by strong performance in Life Solutions, which generated $50.6 million, along with continued expansion in asset management fees, which reached $8.5 million, reflecting the growth in fee-paying AUM across our longevity fund strategies. Technology services contributed $0.4 million, consistent with our continued early-stage build-out of that segment. Turning to expenses, total operating expenses for Q1 were approximately $34.8 million, compared to $19.6 million in the prior year, when excluding the impact of gain on change in fair value of debt and gain on equity securities.

The Practical effect is that our reported leverage ratios improve significantly without any change in our underlying capital structure.

I would address the specific metrics next in the financial section.

Turning to our financial results.

Total revenue in the first quarter grew, 34.6% to 59.4 million compared to 44.1 million in the prior year period.

Growth was primarily driven by strong performance and Life Solutions, which generated 50.6 million along with continued expansion in Asset Management fees which reached 8 and a half million reflecting. The growth in fee-paying AUM across our longevity fund strategies.

Bill McCauley: The year-over-year increase was primarily driven by higher sales and marketing spend in support of our distribution build-out, along with increased G&A expenses associated with our platform investments, business acquisition, and special project expenses. These are deliberate investments in the growth profile of the business. On an adjusted basis, excluding non-cash stock compensation, business acquisition and special project costs, amortization, and changes in the fair value of investments, adjusted net income for Q1 grew by 16.6% to $20.1 million, compared to $17.3 million in the prior year. Adjusted EBITDA for the quarter grew 33.3% to $32.7 million, compared to $24.5 million in the prior year. Adjusted EBITDA margin was 55% for the quarter, compared to 56% in the prior year.

Turning to expenses total operating expenses for the first quarter were approximately 34.8 million compared to 19.6 million in the prior year, when excluding the impact of gain on change, in fair, value of debt, and gain on Equity securities.

The year-over-year increase was primarily driven by higher sales and marketing, spend in support of our distribution buildout, along with increased GNA, expenses associated with our platform Investments business acquisition and special projects expenses.

These are deliberate investments in the growth profile of the business.

On an adjusted basis. Excluding non-cash, stock, compensation business acquisition and special project costs amortization and changes. In the fair value of Investments adjusted, net income, for the first quarter grew by 16.6% to 20.1 million, compared to 17.3 million in the prior year.

Adjusted EBITDA for the quarter grew 33.3% to $32.7 million, compared to $24.5 million in the prior year.

Bill McCauley: We are committed to growing the business responsibly, which is demonstrated by our ability to grow revenue and EBITDA by over 30% while sustaining margins in that range. GAAP net income attributable to Abacus Global Management for the quarter was $7.3 million or $0.07 per diluted share, compared to $4.6 million or $0.05 per diluted share in the prior year period, representing growth of 59%. Turning to our balance sheet, for Q1, adjusted return on equity was 19% and adjusted return on invested capital was 17%, both improvements from Q1 2025. As of 31 March 2026, the company had cash of $37.2 million, balance sheet policy assets of $392.8 million, and outstanding long-term debt of approximately $330 million.

Adjusted to even margin was 55% for the quarter compared to 56% in the prior year.

We are committed to Growing the business responsibly which is demonstrated by our ability to grow revenue and ibido by over 30%. While sustaining margins in that range.

GAAP net income attributable to Abacus Global Management for the quarter was $7.3 million, or $0.07 per diluted share, compared to $4.6 million, or $0.05 per diluted share in the prior year period, representing growth of 59%.

Turning to our balance sheet for q1. Adjusted return on Equity was 19% and adjusted return on invested Capital was 17% both improvements from q1 2025.

Bill McCauley: The reduction in reported debt from $405.8 million at year-end reflects the conclusion of the initial term for the LMA Income II fund I described earlier, which removed approximately $76.7 million in fund level reporting obligations from our balance sheet. In summary, we are very pleased with our strong start to 2026. We delivered meaningful top-line growth, sustained profitability, and strengthened our balance sheet, all while continuing to invest in the platform initiatives that will drive the next chapter of this company's growth. With that, I'll turn it over to Elena.

As of March 3120 2026, the company had cash of 37.2 million balance sheet policy assets of 392.8 million and outstanding long-term debt of approximately 330 million.

The reduction in reported debt from $405.8 million at year end reflects the conclusion of the initial term for the LMA income-to-fund I described earlier, which removed approximately $76.7 million in fund-level reporting obligations from our balance sheet.

Elena Plesco: Thanks, Bill. I want to use my time today to walk through two things: how our balance sheet performed during the quarter and how we think about capital allocation at Abacus. Turning to the performance of our balance sheet. For Q1, our annualized portfolio turnover was 1.9 times, in line with our long-term target of 1.5 to 2 X. Our average realized gain was 26% for the quarter. These margins reflect rigorous origination, precise actuarial targets, and patience, exceeding our target of 20%. Portfolio quality continues to be strong. Assets seasoned beyond 365 days had a weighted average life expectancy of 46 months and a weighted average insured age of 88 years, compared to 45 months and 88 years last quarter.

In summary, we are very pleased with our strong, start to 2026, we delivered meaningful Topline growth, sustained, profitability and strengthened, our balance sheet all while continuing to invest in the platform initiatives that will drive the next chapter of this company's growth with that, I'll turn it over to Elena.

Thanks Bill. I want to use my time today to walk through 2 things,

How our balance sheet performed during the quarter and how we think about Capital allocation at abacus.

Turning to the performance of our balance sheet for q1. Our annualized, portfolio turnover was 1.9 times in line with our long-term Target of 1 and a half to 2X

Our average realized gain was 26% for the quarter.

These margins reflect rigorous, origination precise, Actuarial targets, and patience.

Exceeding, our Target of 20%.

Portfolio quality continues to be strong.

Assets season Beyond 365 days had a weighted average life expectancy of 46 months.

Elena Plesco: These positions reflect conviction in our underwriting, and we expect them to generate attractive returns as they continue to season. During Q1, we deployed $163.6 million in capital off our balance sheet. Our origination platform reviewed more than 9,000 qualified policies during the quarter, and we remain highly selective. This metric underpins the depth of our pipeline, as last year we have reviewed a little under 11,000 policies total. I want to spend the balance of my time on how we think about capital allocation because I believe it's one of the most important things for our shareholders to understand about this business. We think about capital allocation in two categories. Operating and investing. Operating capital supports the day-to-day engine of the business. That means purchasing policies, acquiring other operating assets, and funding organic growth across our platform.

And a weighted, average insured age of 88 years, compared to 45 months and 88 years last quarter.

These positions reflect conviction in our underwriting and we expect them to generate attractive returns as they continue to season.

During q1, we deployed 163.6 million in capital off our balance sheet.

Our origination platform reviewed, more than 9,000 qualified policies during the quarter.

And we remain highly selective.

This metric underpins the depth of our pipeline as last year. We have reviewed a little under 11,000 policies. Total

I want to spend the balance of my time on how we think about capital allocations.

Because I believe it's 1 of the most important things for our shareholders to understand about this business.

We think about Capital allocation, in 2 categories.

Operating and investing.

Operating Capital supports the day-to-day engine of the business.

That means purchasing policies, acquiring other operating assets.

Growth across all platforms.

Elena Plesco: Investing capital is effectively everything else. Returning capital to shareholders through dividends and buybacks, pursuing strategic M&A, and supporting the growth of our asset management business, whether that means seeding new fund strategies, supporting our securitization program, or providing the infrastructure for AUM expansion. These are not competing priorities. They're sequenced deliberately, and our goal is to ensure we always have the flexibility to do both well. When we look at where our capital comes from, the starting point is our balance sheet. We view our active balance sheet, our managed assets, as approximately $450 million in cash and liquid assets that we convert into cash in short order for our normal origination to monetization cycle. That is the core funding mechanism of the business, and it is self-sustaining. We do not need incremental balance sheet capital to grow our core life solutions business.

Investing capital is effectively everything else.

But returning, Capital to shareholders through dividends and BuyBacks.

Pursuing strategic m&a and supporting the growth of our asset management business. Whether that means seeding, new fund strategies.

Supporting our securitization program or providing the infrastructure for AUM expansion.

These are not competing priorities.

There is sequenced deliberately and our goal is to ensure. We always have the flexibility to do both. Well,

when we look at where our Capital comes from, the starting point is our balance sheet.

We view our active balance sheet. Our managed assets as approximately 450 million in cash and liquid assets that we convert Into Cash in short order, for our normal origination to monetization cycle.

That is the core funding mechanism of the business, and it is self-sustaining.

We do not need incremental balance sheet Capital to grow our core Life Solutions business.

Elena Plesco: Beyond that, we have two external levers, debt and equity. On debt, we're currently meaningfully under-levered. Our recourse debt-EBITDA ratio stands at around 2x compared to capacity we believe extends to 4x. That gives us significant incremental borrowing ability to deploy into high returning opportunities without diluting shareholders. On equity, we're not looking to raise primary capital outside of any potential M&A activity. Our business generates the cash flow to fund its own growth, and we intend to keep it that way. When I step back and look at the business today, the story is straightforward. We have a core origination engine in Life Solutions that continues to perform at a high level, supported by disciplined underwriting and consistent monetization.

Beyond that we have 2 external lovers.

Debt and equity.

On that we're currently meaningfully underlever.

Our recourse debt to ibida ratio stands at around 2X.

compared to capacity, We Believe extends to 4X

That gives us significant incremental borrowing ability to the poor into high returning opportunities without diluting shareholders.

On Equity, we are not looking to raise primary Capital outside of any potential m&a activity.

Our business generate the cash flow to fund its own growth and we intend to keep it that way.

When I step back and look at the business today, the story is straightforward.

We have a quote origination

in Life Solutions that continues to perform at a high level,

Elena Plesco: On top of that, we're building a scalable asset management platform designed to generate growing fee-related earnings for our longevity funds, our ETFs, our asset-based finance strategy, and continued expansion of our distribution capabilities. Since inception, the new vintage of longevity funds has attracted nearly $1 billion in investor capital. Growing fee-related earnings remains a central priority. As we scale fee-paying assets across our strategies, we generate contractual high margin management fee income without requiring additional balance sheet capital. Our capital allocation framework is designed to ensure that every dollar we deploy, whether into operations or investments, is building toward that outcome. We're executing on this deliberately step by step with a long-term perspective, and we believe that approach will continue to create value for our shareholders. With that, I'll turn it over to Jay for closing remarks.

Supported by discipline underwriting and consistent validation.

On top of that, we're building a scalable Asset Management platform designed to generate growing fuel related earnings for our longevity funds. Our ETFs,

Our asset-based finance strategy and continued expansion of our distribution capabilities.

since Inception, The New Vintage of longevity funds, has attracted nearly 1 billion in investor capital,

Growing Theory, related earnings remains a central priority.

As we scale fee, paying assets across our strategies, we generate contractual high margin management fee income.

Without requiring additional balance sheet capital.

And our Capital allocation Frameworks is designed to ensure that every dollar we deploy whether into operations or Investments is building toward that outcome.

We're executing on this deliberately, step by step, with a long-term perspective.

And we believe that approach will continue to create value for our shareholders.

With that, I'll turn it over to Jay for closing remarks.

Jay Jackson: As I reflect on this quarter, what stands out is not any single result but the convergence of everything we have been building toward. Capital is flowing into this asset class because investors are seeking exactly what we provide: consistent, predictable, uncorrelated returns. Our operational infrastructure is meeting that demand. Our funds are performing, and our strategic initiatives are positioning us to capture a much larger share of the opportunity in front of us. The foundation is strong, and the trajectory is clear. These initiatives represent the kind of strategic scaling that moves a company from small cap to midcap. We are executing with both urgency and conviction. I want to thank our investors for their continued confidence, our team for their exceptional execution this quarter, and our partners for their commitment to what we are building.

As I reflect on this quarter, what stands out is not any single result, but the convergence of everything we have been building toward.

Capital is flowing into this asset class because investors are seeking exactly what we provide consistent, predictable, uncorrelated returns.

Our operational infrastructure is meeting that demand. Our funds are performing and our strategic initiatives are positioning us to capture a much larger share of the opportunity in front of us.

The foundation is strong, and the trajectory is clear.

These initiatives represent the kind of strategic scaling that moves a company from small cap to midcap.

We are executing with both urgency and conviction.

Jay Jackson: We look forward to updating you on our progress and delivering on the opportunity this moment represents. We will now turn it over to the operator for any questions.

I want to thank our investors for their continued confidence, our team for their exceptional execution this quarter, and our partners for their commitment to what we are building.

We look forward to updating you on our progress and delivering on the opportunity. This moment represents

We will now turn it over to the operator for any questions.

Operator: Thank you. To ask a question, please press star one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, you may withdraw yourself from the queue by pressing star two. Once again, that is star one if you would like to ask a question. Our first question will come from Patrick Davitt with Autonomous Research. Your line is open.

Thank you to ask a question. Please press star 1 on your telephone keypad.

If you're using a speaker-phone, please pick up your handset before pressing the keys.

Stressed, you may withdraw yourself from the queue by pressing star 2.

Once again, that is star 1. If you would like to ask a question,

our first question will come from Patrick data with autonomous research, your line is open,

Patrick Davitt: Well, hey, good evening, everyone. This first on flows. Since you say in the release that the second securitization could slip into Q3, if that did fall in Q2, would that be incremental to the $500 million H1 inflow expectation?

Uh hey. Good evening everyone.

Uh its first on flows. Uh since you say in the in the release that the second securitization could slip into 3 Q.

If that did fall in 2 Q, would that be incremental to the 5 500 million, first half, inflow expectation.

Jay Jackson: Hi, Patrick. Yes, that would be in addition to that $500 million.

Patrick Davitt: Okay, great. Could you update us on where we are in the SEC process for the interval fund?

Hi Patrick. Yes, that would be. In addition to that 500 million?

Jay Jackson: Sure. Thanks for asking. We've been working diligently with the SEC, and while we can't, you know, specifically state where and how their specific process timing is, we feel good about potentially being able to make an announcement in Q2.

Okay, great. Uh and could you update us on on where we are in the the FCC process for the interval fund?

Sure, thanks for asking. Uh, we've been working diligently with the SEC, uh, and while we can't, you know, specifically state where and and, and how their specific, uh, process timing is, um, we've we feel good about, uh, potentially being able to make an announcement in Q2.

Patrick Davitt: Great. Thanks a lot. I'll get back in the queue.

Great. Thanks a lot. I'll get back in the queue.

Operator: Thank you. Our next question will come from Andrew Kligerman with TD Cowen. Your line is open.

Andrew Kligerman: Hey, good afternoon, everyone. Looking at your slide 11, I thought that was pretty interesting. It implies that wealth advisors would move from 0 to about 25% of revenue over the next few years. Could you walk us through like a little roadmap as to how you get to 25% of revenue? Is it Manning & Napier? Is it existing advisors? Do you expect a fair amount in deals? Just curious as to the roadmap there on like

Thank you. Our next question. Will come from Andrew kilg with TD Cowen, your line is open

Hey, good afternoon, everyone.

Jay Jackson: Yeah.

Andrew Kligerman: Could you walk us through like a little roadmap as to how you get to-

Jay Jackson: Sure.

Andrew Kligerman: 25% of revenue? Is it Manning & Napier? Is it existing advisors? Do you expect-

Jay Jackson: Right.

Andrew Kligerman: A fair amount in deals? Just curious as to the roadmap there on like

Jay Jackson: Thanks for asking that, Andrew, and great to hear from you. Yeah, our roadmap to the financial advisory slash really private wealth division is really consistent with the premise that it's the build it or buy it. We have a number of opportunities that we think will come to fruition and help us meet those targets. The Manning & Napier initial investment here, I think made a ton of sense for us to demonstrate and show the synergies that we've talked about between sourcing contracts, sending them and processing, potentially lead gen for them, and then kind of operating those synergies with additional cash flow from both entities.

Uh looking at your slide 11. I thought that was pretty interesting. So it it implies that wealth advisors would move from zero to about 25% of uh of Revenue over the next few years. Um could you walk us through kind of a like, a little road map is to how you get to 25. Uh percent of of Revenue is it Manning? And Napier is it is it existing, advisors, do you expect a fair amount of deals, just curious as to the roadmap there on that?

Thanks for asking that uh, Andrew and and great to hear from you. Uh, yeah, our our road map uh to the financial advisory really private wealth division um is is really consistent with the premise that it's it's the bill that are buy it and we have a number of opportunities that we think will um, come to fruition and and, and help us meet those targets. Uh, the Manning and Napier, uh, initial investment here, I think made a ton of sense for us to demonstrate and show the, uh, synergies, uh, that we've talked about between sourcing contracts, sending them and processing, uh, potentially Legion, uh, for them. Uh, and

Jay Jackson: We're already seeing some success there and very close to kind of finalizing our strategic alliance agreement and then go forward agreement. We have a number of additional opportunities in place of registered investment advisors that I think are seeking that same type of partnership, whether that's in a minority position or a full position full acquisition. We're really excited about the pipeline for that. I think we'll see more of that through year-end and certainly more heavily into 2027.

Andrew Kligerman: Got it. Makes a lot of sense. Just looking at slide 27, you know, I thought it was a nice trend to see the days held on the sold policies increased, you know, really significantly to 290, which you know, maybe you could share with us, you know, the kinds of gains that you have by holding that for quite a bit of time. Then on the flip side, the days held on the own policies kind of decreased meaningfully to 209. What are you thinking about both of those metrics as we move forward? Are they right in the band where they should be? Or do you see one of them moving up or down? What are your thoughts going forward?

And and then kind of operating those synergies with additional cash flow from from both entities and we're already seeing some um, success there and very close to kind of finalizing. Our strategic Alliance agreement and then go forward agreement and we have a number of additional opportunities in place of uh, registered investment advisors that I think are seeking that that same type of partnership, whether that's in a minority position, or a full position, uh, full acquisition. And, and so we're really excited about the pipeline for that. I think we'll see more of that through year end, uh, and certainly more heavily into 27.

Jay Jackson: Yeah

Andrew Kligerman: you know, maybe you could share with us, you know, the kinds of gains that you have by holding that for quite a bit of time. Then on the flip side, the days held on the own policies kind of decreased meaningfully to 209. What are you thinking about both of those metrics as we move forward? Are they right in the band where they should be? Or-

Jay Jackson: Right

Andrew Kligerman: Do you see one of them moving up or down? What are your thoughts going forward?

Jay Jackson: thank you. you know, I think you nailed it on the last part of the question was that we believe we're in kind of the band where we target. if you look at kind of historically where that's been at, you know, whether it's days held and/or days held via transactions, we're finding a little bit of a sweet spot there. you know, there was, you know, in the prior quarter, we saw a little bit of shift where we had taken advantage of some contracts that, you know, that were very opportunistic and moved a larger percentage of those. I think historically, where we're trading at right now is kind of where you should see those numbers start to kind of think about modeling going forward.

Got, it makes a lot of sense. And and then just looking at slides, slide 27. Um, you know, I I thought it was a nice Trend to see the, uh, the days held on the soul policies increased, you know, really significantly to 290 which, you know, maybe you could share with us, you know, the kinds of games that you you have by by holding that uh, for for quite a bit of time. And then on the flip side, the uh, the days held on the own policies kind of decreased meaningfully the 209. So what do you, what are you thinking about both of those metrics as we move forward, are they right in the band where they should be? Or do you see 1 of the moving up or down? What what are your thoughts going forward?

Jay Jackson: right, I think in the quarter, we were somewhere around 1.9 to 2 times on an annual basis related to our book turnover, and I think that's reflective of the opportunities we see in the market. One of the things I'll highlight, though, is that we are seeing significant increased demand for the underlying asset, driven by its certainly uncorrelated nature. If you consider some of the volatility that we've seen in other kind of adjacent asset classes, if you will, this opportunity, I think, in this asset class is has certainly been more appealing to institutional investors who are looking for maybe a little bit less yield, but they want that uncorrelated stability nature that these policies represent.

Turn over and I think that's reflective of the opportunities we see in the market, 1 of the things. I'll highlight though is that we are seeing significant increase demand for the underlying asset, uh, driven by its certainly uncorrelated nature. Uh, but if you consider some of the volatility that we've seen in other kind of adjacent asset classes, if you will, um,

this opportunity, I think in this asset class has has certainly, uh,

Been more appealing, uh, to institutional investors who are looking for, uh, maybe a little bit less yield, but they want that uncorrelated stability nature that these policies represent.

Andrew Kligerman: Great. Thank you, Jay.

Jay Jackson: Awesome. Thank you.

Great, thank you. Jay

Awesome. Thank you.

Operator: Thank you. Our next question will come from Mike Grondahl with Northland Securities. Your line is open.

Mike Grondahl: Hey, thank you. I just wanted to ask about the 9,000 policies you reviewed-

Mike Grondahl: Hey, thank you. I just wanted to ask about the 9,000 policies you reviewed in Q1 2026 versus the 11,000 in 2025. Would you say that's all organic growth, all inbound? You know, any extra marketing or anything to drive that?

Thank you. Our next question will come from Mike grundle with Northland, Securities. Your line is open.

Jay Jackson: Yeah

Mike Grondahl: In Q1 2026 versus the 11,000 in 2025. Would you say that's all organic growth, all inbound? You know, any extra marketing or anything to drive that?

Jay Jackson: Sure. Thanks, Mike. It's a very astute pickup. Yes, it is organic. It's also, I would argue, a bit opportunistic from our perspective in that we're seeing opportunities out there as we continue to have demand and increased capital related to our own funds and certainly other funds. That's driving up supply. I think what I'm really trying to highlight there is that as we continue to you know raise capital in our funds, securitizations and some of these other products, sometimes that leads to the question of, do we have the policies to support that demand? I think clear evidence shows in Q1 we do. Some of that's carrying over into Q2 and we're excited about that. That is organic. We're not necessarily turning up the advertising budget.

Hey, thank you. Um, I I just wanted to ask about the 9000 policies you reviewed in 1q 26 versus the 11,000 and 2025, would you say that's all organic growth, all inbound, you know, any extra marketing or anything to drive that?

Sure. Thanks.

it's a very astute pickup, um,

Yes, it it is organic. It's also I I would argue a bit opportunistic from our perspective and that we're seeing opportunities uh, out there as we continue to have uh, demand and increase Capital, um, related to our own funds and certainly other funds that's driving up Supply. And I think, what I'm really trying to highlight there is that

Jay Jackson: I think the budget year over year was fairly stable in Q1. Instead, I also believe that the work of 25, where we did increase our budget, right, particularly Q3, Q4, you start to see that paying off in Q1 and Q2 and Q3.

As we continue to, you know, raise capital on our funds securitizations and some of these other products sometimes that leads to the question of, do we have the policies to support that demand? And I think, clear evidence shows in q1, we do and some of that's carrying over into Q2 and and we're, we're excited about that. So that is organic. We're not necessarily turning up the advertising budget. I think the budget year-over-year was fairly stable in q1. But instead, I also believe that the work of 25 where we did increase our budget, right? Particularly Q3 Q4 you start to see that paying off in q1 and Q2 and Q3.

Mike Grondahl: Got it. You know, you talked about rising asset value and the demand for those policies, you know, resulting in that lower purchase discount rate.

Mike Grondahl: Got it. You know, you talked about rising asset value and the demand for those policies, you know, resulting in that lower purchase discount rate. Can you quantify that for us a little bit, Jay? Like, is that worth a point or two? How do we measure that or get a sense?

Jay Jackson: Right.

Mike Grondahl: Can you quantify that for us a little bit, Jay? Like, is that worth a point or two? How do we measure that or get a sense?

Got it. And then you know you talked about Rising asset value and the demand uh for those policies you know, resulting in that lower purchase discount rate.

Jay Jackson: Sure. I think the best way to think about it, right, is when you look at the slide related to our gross trade spread margin, right? When you see that number, I think we're ±26 for the quarter. You know, that's the best way to quantify it. Even though you might see demand increase, which in most markets, you know, when you have demand increase driving prices up, you would historically see those discount rates or the forecasted purchase rates compressing. In our case, what we're stating is that can actually be a good event for us, right? Because prices go up, we sell at a higher price, and that demand then drives additional revenue. My point is, I believe we're gonna see more of that, right?

Right. Can you quantify that for us a little bit J. Like is that worth a pointer to or how do we measure that or get a sense?

Sure. I think the best way to think about it, right? Is when you look at the slide related to our gross gross trading, right. Um, when you see that number, I think we're plus or minus around 26 for the quarter.

You know, that's the best way to quantify it. So even though you might see demand increase which in most markets you know when you have demand increase driving prices up, you you would historically see those discount rates on the forecasted purchase rates.

Compressing, in our case, what we're stating is, is it...

Jay Jackson: When you just look at the cash flows into our own funds, but then demand from investors who are seeking capital sources that again are less volatile and correlated, those kinds of attributes, it becomes a positive outcome for us. To be specific, if you were to kind of quantify this to, you know, kind of a percentage point, you know, I think that's a bit of a challenge because we'll see that happen in any given quarter. You know, my point is that whether it's 100 basis points or 200 basis points, it's ultimately a positive outcome for us.

that can actually be a good event for us, right? Because prices go up, we sell at a higher price and that demand then drives additional revenue. And and my point is, I believe we're going to see more of that.

Right. Um, when you just look at the cash flows into our own funds, but then demand from investors who are seeking um, Capital sources and again are less volatile and correlated. Uh, those kinds of those kinds of attributes. Uh, it becomes a positive outcome for us, so, uh, to be specific, if you were to kind of quantify this to a, you know, kind of a percentage point, you know, I think that's a bit of a challenge because we'll see that happen in any given quarter. But, you know, my point is, is that whether it's a 100 basis points or 200 basis points, it's ultimately a positive outcome for us.

Mike Grondahl: Got it. Well, thanks a lot.

Got it.

Jay Jackson: Thank you.

Well, thanks a lot.

Thank you.

Operator: Thank you. Our next question will come from Crispin Love with Piper Sandler. Your line is open.

Thank you. Our next question, will come from Chris and love with Piper Sandler. Your line is open.

Ben Graham: Hi, good afternoon. This is Ben Graham in for Crispin Love. Thanks for taking the question. I'm just wondering-

Ben Graham: Hi, good afternoon. This is Ben Graham in for Crispin Love. Thanks for taking the question. I'm just wondering if you could share a little bit more about your current thoughts on M&A, just specifically what types of assets you're most interested in currently. Basically, would it be more on the RIA side, technology, or some other areas? Thank you.

Jay Jackson: Sure

Ben Graham: If you could share a little bit more about your current thoughts on M&A, just specifically what types of assets you're most interested in currently. Basically, would it be more on the RIA side, technology, or some other areas? Thank you.

Jay Jackson: Yeah, sure. Great question. The pipeline is fairly robust right now, and the areas that we're most interested in, you nailed it on the RIA side. We think that there are some very interesting opportunities there. You know, for us, we're also super selective. We wanna make sure that this is the type of platform that meets our expectations culturally, that is profitable, and most importantly, and I think this is the biggest takeaway for any of our M&A, it's gotta be accretive, right? It's super important that these opportunities are accretive to us, both from a EPS basis, but in addition to that, accretive in relationship to our synergies. We wanna show that this is the type of acquisition that's gonna help grow the business into 2027, 2028, because I think that's what our shareholders want us to do.

Hi, good afternoon. This is Ben Graham and for Chris and love, thanks for taking the question. Um, I'm just wondering if you could share a little bit more about your current thoughts on m&a, just specifically what types of assets. Uh, you're most interested in currently and basically would it be more on the Raya side technology or some other areas. Thank you.

Right now, and the areas that were most interested in, uh, you've nailed it on the Raa side. We, we think that there are some very interesting opportunities there, uh, and you know, for us, we're also super selective. We want to make sure that this is the type of platform that

Meets our expectations, culturally that is profitable, and most importantly. And I think this is the biggest takeaway for any of our m&a. It's got to be a creative.

Jay Jackson: We're very disciplined in that. We want accretive businesses. When we look at our technology platforms, we're still developing, I think, some very exciting things in-house that in the next probably 60 days, we're gonna start announcing. Certainly at our Investor Day, we're gonna roll some of those out that are gonna fundamentally have a significant transformative shift in private wealth management. Those types of programs where we're incorporating lifespan into financial planning is starting to happen in real time. You know, adopting different AI platforms to assist with that, to accelerate that process is all happening in real time.

Jay Jackson: If we're looking at technology-type platforms, it's the type of platforms that can provide data and information to our clients that is incredibly useful for a customized solution of whether it's insurance or financial planning, but all related to their longevity data. I just spoke with the Milken Institute on this, and this was a huge, huge talking point because there's $1 trillion of wealth transferring. Our point is wouldn't the world like to know when that's going to transfer? You can know that better if you better understand the longevity and lifespan data behind it. Those companies are super interesting to us.

Right. It's super important that these opportunities are a creative. Thus, both from a EPS basis. But, in addition to that a creative in relationship to our synergies, we want to show that this is the type of acquisition that's going to help grow the business into 27/28 because I think that's what our shareholders want us to do. So we're very disciplined in that. We want to create a businesses when we look at our technology platforms that we're still developing. I think some very exciting things in house that I in, in the next probably 60 days we're going to start announcing certainly at our investor day, we're going to roll some of those out that are going to fundamentally have a significant transformative shift in private wealth management and those types of programs where we're incorporating lifespan into financial planning is is starting to happen in real time. And you know adopting uh different AI platforms to assist with that to accelerate that process is all happening in real time. So is if we're looking at technology type platforms, it's the type

Type of platforms that can provide data and information to our clients that is incredibly useful useful for a customized solution of whether it's insurance or financial planning, but all related to their longevity data. I just spoke with the Milken Institute on this and this was a huge, huge talking point because there's a trillion dollars of wealth transferring. Our point is, wouldn't the world like to know when that's going to transfer? And you can know that better if you better understand the longevity and lifespan data behind it. So those companies are super interesting to us.

Ben Graham: Awesome. Thank you so much for all the color there. Just briefly on the carrier buyback program, I'm just wondering if there's anything new to call out here, new announcements, expectations for the year, and just if anything's baked into the guide there.

Jay Jackson: Sure.

Ben Graham: Thanks.

Jay Jackson: There still continues to be a very high level of interest and structure that we're working directly with carriers on. I think in addition to the buyback, we're also working and speaking with carriers about new product issuance related to our underwriting. You know, it's amazing how this is really coming full circle in our partnerships and strategic partnerships with carriers as well as reinsurance companies. You know, when I talk about structure in relationship to a buyback, there are some structural advantages that we're working through with some of our carrier partners that can actually make that buyback more affordable as well as easier to execute on. We're continuing that program through 2026, and we're also, in addition to that, adding to some of our carrier relationships, even potentially new product sales.

Awesome. Thank you so much for all the color there and then just briefly on the on the carrier buyback program. I'm just wondering if there is anything anything new to call out here new announcements um expectations for the year and just if anything's baked into the guy there, thanks.

There's still still can continues to be a very high level of interest and structure that we're working directly with carriers on. I think, in addition to the buyback, we're, we're also working and speaking with carriers about, uh, new product issues related, to our underwriting. So, you know, it's amazing how this is really coming full circle, um, in our Partnerships and strategic Partnerships with carriers as well as reinsurance companies. And, you know, when I talk about structure and relationship to a buyback, uh, there's some structural, uh, advantages that we're that we're working through with some of our carrier partners that can actually make that buyback, uh, more affordable as well as um,

Uh, easier to execute on. So

Uh, we're continuing that program through 2026, and we're also in addition to that, adding to some of our carrier relationships, even potentially the product sales.

Ben Graham: Awesome. That's it for me. Thanks so much for taking the questions.

Jay Jackson: Thank you.

Awesome. That's it for me. Thanks so much for taking the questions. Thank you.

Operator: Thank you. Our next question will come from Timothy D'Agostino with B. Riley Securities. Your line is open.

Thank you. Our next question, will come from Timothy the Agostino with B Riley Securities. Your line is open.

Timothy D'Agostino: Hi. Thank you. Thanks for taking the questions. Joining a bit late here, so apologies if anything's repeated. Looking at capital deployed for policy originations on slide 26, that number for Q1 continues or was ahead again of what we were forecasting. I guess trying to understand, you know, in 2025 in the beginning part, you know, it was about $120 million. At these current levels of $230 million in Q4 and $163 million in Q1, are you comfortable with this kind of being the run rate, or are you taking advantage of opportunities? Thank you.

Yeah. Hi. Thank you. Uh, thanks for taking the question joining me today here. So apologies if anything's repeated um, looking at Capital deployed for policy originations on slide 26. Um,

Jay Jackson: A great question, and you know, yes, certainly opportunistic, but I would also add that we had capital demand to meet that capital deployment. Now if we're modeling to what we think a closer range will be, you know, we have a couple of analysts who have tracked us at a really high number, which isn't necessarily the right way to think about it either. I think, you know, where we're tracking is in that $130 to $150 range, and certainly had a really nice quarter in Q1. The one kind of KPI we take into consideration is that you could see that number increase over $150 like we did in Q1 if you see our gross capital inflows higher, right?

That number for 1 Q continues, or was ahead again of what we were forecasting. I guess trying to understand, you know, in 2025, in the beginning part, you know, it was about 120 million. I, I at these current levels of 230 million in the fourth quarter and 163 in the first quarter. Are you comfortable with this kind of being the Run rate or are? Are you taking advantage of opportunities? Thank you.

but a great question and, you know,

Jay Jackson: you know, the way that I would think about it is that number can be correlated to the amount of demand and capital that we have to put to work. you know, I'm hesitant to come out and say, Oh, you know, model this at 200, because in any given quarter, as I've highlighted, that could change a little bit. we're much more comfortable in this kind of guiding to that 130 to 150 number. If we surpass that by a little bit like we did in Q1, that's great. That's always our target is to exceed expectations. It's also why we raised our guidance, right? We kind of tried to put an indicator out there that said, Look, we feel pretty good about what's gonna happen in the remainder of 2026, including capital deployed.

you know, the way that I would think about it is, is that

Jay Jackson: We're comfortable in maybe the higher range of the 130 to 150 and therefore we'll increase our guidance to reflect that.

That number can be correlated to the amount of demand and capital that we have to put to work. And so, you know, I'm hesitant to come out and say oh, you know, model this at 200 because in any given quarter as I highlighted that could uh, change a little bit. And so we're much more comfortable in this kind of guiding to that 130 to 150 number. And then if we surpass that buy a little bit like we did in q1, that's great. That's always our Target is to exceed expectations. It's also why we raised our guidance, right? We kind of tried to put an indicator out there that said look, we feel pretty good about what's going to happen in the remainder of 26, including Capital deployed, we're comfortable and maybe the higher range of the 130 to 150 and and and therefore will increase our guidance to reflect that.

Timothy D'Agostino: Okay, great. Then if I can ask a second question on AUM. Relatively flat quarter over quarter. I understand it's a short period, it's just the Q1.

Timothy D'Agostino: Okay, great. Then if I can ask a second question on AUM. Relatively flat quarter over quarter. I understand it's a short period, it's just the Q1 the 2028 guide of 30 billion of AUM, I guess could you walk us through again, you know, how much of that is coming from like organically and how much is inorganic? Thank you.

Jay Jackson: Yeah

Timothy D'Agostino: The 2028 guide of 30 billion of AUM, I guess could you walk us through again, you know, how much of that is coming from like organically and how much is inorganic? Thank you.

Jay Jackson: Yeah, you know, the premise there is to get pretty close to like a 50/50 number as we get out to 2028 on organic versus inorganic. The inorganic would be acquisition in whether that's through some very exciting opportunities on the asset management side in addition to the private wealth side as I had spoken about before. That's the way that we're mapping that. We see more of that taking place as we come into 2027. Based upon some of the opportunities we have in our buy pipeline, you know, I will tell you that we believe we're tracking at that number.

Okay, great. And then if I can ask a second question on AUM, relatively flat quarter over a quarter and understand. I think it's a short period, just the first quarter, but as we look at the, the 2028 guide of 30 billion of AUM, I I guess. Could you walk us through again? You know, how much of that is, is coming from like organically and how much is inorganic. Thank you.

Yeah, it, you know, the purpose there is to get pretty close to like a 50/50 number, as we get out to 2028 on organic versus inorganic and the inorganic would be acquisition in in whether that's through, uh, very exciting opportunities on the acid Asset Management side, in addition to the private wealth, uh, side as I as I had spoken about before. So that's the way that that we're mapping that uh, we see more of that taking place as we come into 27. But based upon some of the opportunities we have in our bike pipeline, you know, I I will tell you that we're we, we believe we're tracking at that number.

Timothy D'Agostino: Okay, great. Thank you so much for taking the questions today.

Jay Jackson: Sure.

Okay, great. Thank you so much for taking the questions today.

Operator: Thank you. Our next question will come from Patrick Davitt with Autonomous Research. Your line is open.

Thank you. Our next question, will come

Patrick Davitt: Hey, thanks for the follow-up. I don't think I saw it in the materials, but how much is left on the repurchase authorization? Through the lens of this M&A conversation, could you update us on how you're thinking about the stock here and repurchases from here? Thank you.

Jay Jackson: Thank you, Patrick. We've deployed plus or minus around 50% of the last $20 million board-approved buyback. We still have, I think, some, you know, a decent amount of powder left to execute on. We look closely at that. I mean, what you touched on is really important because we look at where we sit on a multiple basis based upon, you know, where our earnings are, you know, our kind of consistent performance here, certainly in relationship to our recent, you know, we look, we just announced we're raising again our EPS targets for 2026 and then forecasted into 2027, 2028. When we look at would we consider more stock repurchase, the answer is yes.

Uh hey this is the follow up. Um, I I don't think I saw in the materials. But uh, how much is left on the re repurchase authorization and through the lens of this m&a. Conversation, could you update us on how you're thinking about the stock here, uh, and, and repurchases from from here, thank you.

Sure. Um thank you Patrick. Uh We've deployed plus or minus around 50% of the last 20 million. Um, board approved buyback. Uh, so we still have, I think some, you know, a decent amount of of uh, powder left to execute on it. Um, and and we look closely at that. I mean, once you've touched on it is, is is really

Jay Jackson: I think that, you know, we still very much see the pricing of our stock is a very discounted price. When we measure that against where we may deploy other assets, right? We're looking at, you know, ROEs and ROIs in the high teens, low twenties. We think that even based upon price targets from our analysts, we're currently trading at a pretty significant discount to that. You know, buybacks are still very much what we believe is an important piece of our, you know, kind of things that we might deploy. When that is related to M&A, you're right? The, you know, stock price is important to that.

Important. Because we look at where we sit on a multiple basis based upon, you know, where our earnings are. You know, are kind of consistent performance here, certainly, in relationship to our recent, you know, we, we just announced we're raising again our, uh, EPS targets for 26 and then forecasted in the 2728 28. So, when we look at, would we consider more stock repurchase? The answer is. Yes. Uh, I think they, you know, we still very much see, uh, the pricing of our stock, uh, is a very um, discounted price. And when we measure that against what we, what we may deploy, other assets, right? We're looking at, you know, Rolex and Roes and the high teams low 20s. And, you know, we think that even based upon, uh, price targets, uh, from our analysts that, that is we're currently trading at a pretty significant discount to that. So, you know, BuyBacks are still very much what we believe is.

Jay Jackson: I think that, you know, in most M&A transactions, a percentage of that is related to the stock. I think what's interesting to me is that the deals that we're looking at now in our pipeline are accretive even at this pricing. Imagine if we pick up you know, another 10%, 15%, 20%, 30% in stock valuation, these deals even become more accretive. When we're looking at a deal now, we're assuming in that M&A that, hey, this is at a very favorable stock price. Is this deal still accretive? As the stock price continues to carry some upward momentum, these deals will look even better. We think we're in a great spot on the M&A side.

Is is, is an important piece to, um, of of, of our, you know, kind of things that we might deploy when that is related to m&a. You're right. Right. The, you know, the stock price is important to that and I think that you know, in in most m&a transactions a percentage of that is related to the stock. And I think what's interesting to me is, is that the deals that we're looking at now in our pipeline are a creative even at this pricing

And so imagine, if we pick up, you know, another 10%, 15%, 20%, 30% in stock valuation. These deals even become more accretive. And so, when we're looking at a deal now, we're assuming in that M&A that, hey, this is at a very favorable stock price. Is this deal still accretive as the stock price continues to carry some upward momentum? Um, these deals will look even better. So, we think we're in a great spot on the M&A side.

Patrick Davitt: Thank you.

Jay Jackson: Thank you, Patrick.

Thank you.

Operator: Thank you. This concludes our question and answer session. I would now like to turn the meeting back over to Jay Jackson for any additional or closing remarks.

Thank you, Patrick.

For any additional or closing remarks.

Jay Jackson: Thank you. Again, we just want to express our gratitude to our partners, our analysts, our shareholders, and certainly each and every one of our employees, where nearly all of them are shareholders. I think it speaks volumes into the production of our company and our ability to continue to meet these consistent goals that we have set out. We raised our targets in 2026. Our expectations are we're gonna continue to push through those through 2027 and through 2028, and we're tracking to our 250 million EBITDA of 2028. We are grateful and thankful for all of you to be on our journey together, and look forward to our next call.

Thank you again. We just want to express our gratitude, to our partners, our analysts, our, uh, shareholders and and certainly each and every 1 of our employees, where nearly all of them are shareholders,

I think it speaks volumes into the production of our company and our ability to continue to meet these consistent goals that we have set out, uh,

We raised our Targets in 2026. Um, our expectations are, we're going to continue to push through those through 27 and through 28. And we're tracking to our 250 million ibida of 28. Uh and so we are grateful and thankful for all of you to be on our journey together. Uh and uh look forward to our next call.

Operator: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Thank you. That brings

meeting, we appreciate your time and participation you may now disconnect