Prenetics Global : 2Q26 Letter to Shareholders

About this update from Prenetics Global Limited

Shareholder Letter - Q2 2026 Prenetics Global Limited (NASDAQ: PRE) · August 2026 Dear Shareholders, $46.5M $45.0M ~$251M Q3 2026 Q2 2026 REVENUE +29% QoQ · ~3.9X YoY Q2 2026 IM8 REVENUE +33% QoQ · ~4.6X YoY ANNUALIZED REVENUE RUN-RATE (JULY 2026) POSITIVE CONSOLIDATED ADJUSTED FREE CASH FLOW EXPECTED The Quarter, Delivered Twenty months ago, IM8 did not exist. Last month, the business it powers crossed a line that most consumer brands spend years chasing and many never reach: consolidated Adjusted Free Cash Flow 1 turned positive. I will come back to what that changes. It is the single most important fact in this letter and in the investor deck that accompanies it. First, the quarter. In Q2, IM8 carried Prenetics to $46.5 million of total revenue, up 29.3% from Q1 and roughly 3.9x from a year ago, with IM8 itself contributing $45.0 million - up 33.2% sequentially, at approximately 65% gross margin, up from 57%. That is five consecutive quarters of sequential growth, compounding at an average of 51% per quarter since the brand's first full quarter on the market. We are still at the beginning of this, and yet the machine is already behaving the way mature great businesses behave. We nearly doubled acquisition marketing spend, the largest growth investment in our history, and blended Customer Acquisition Cost 2 did not rise; it edged down, from about $305 to about $301. Scaling brands almost never get that combination. We did, and we believe we are just getting started. Both revenue figures landed within the guidance we set publicly in May and reaffirmed in June: $46 million to $48 million in total, $44 million to $46 million for IM8. IM8 now ships to 46 countries, and the momentum we are seeing in the business, in the brand, and in the pull from customers around the world is the strongest it has been at any point in our history. And along the way we completed our $40 million share repurchase program, with $26.9 million of it this quarter, because we hold the simple belief that when the market prices what we have built below what we know it to be worth, the right response is to buy. 1 Adjusted Free Cash Flow, a non-IFRS measure, is defined as net cash from operating activities plus net fundings under the General Catalyst Customer Value Fund facility. 2 Customer Acquisition Cost ("CAC") is an unaudited operating metric calculated as acquisition marketing spend divided by the number of new customers acquired in the period. Acquisition marketing spend comprises advertising and media, influencer, commissions, sponsorships, agency fees and other related working and non-working marketing expenses as incurred; it excludes marketing personnel and licensing and royalty fees. New customers include subscription and one-time orders across all channels, products and plan types. Then came the weeks after the quarter closed, which matters even more. On July 14 we closed $1 billion of non-dilutive growth financing from General Catalyst - underwritten directly against our cohort economics, after months inside our data. That is more than capital: it is independent validation, with a billion dollars at risk behind it, that our unit economics work and that our future revenue and gross profits are predictable enough to finance. July itself was the strongest month we have ever had: $20.9 million of revenue, an Annualized Revenue Run-Rate 3 of roughly $251 million, and our largest single-month cohort ever - acquired 47,373 customers at a CAC that fell roughly 21% further, to approximately $239. And then July delivered the milestone I opened this letter with - the one every consumer company on earth is racing toward from the day it is born: consolidated Adjusted Free Cash Flow turned positive. One month does not make a trend, but this particular month changes what kind of company we are. Every fast-growing consumer brand lives under the same clock - growth consumes cash, and cash eventually forces a choice between slowing down and diluting shareholders. In July, that clock stopped for us. From here, the machine pays for its own growth: cohorts financed at the point of acquisition, repaying from their own receipts, with the surplus funding the next cohort. Our growth plan no longer depends on equity markets, credit markets, or anyone's patience but our own. For a brand twenty months from launch, still compounding at over 50% per quarter, to be generating cash while growing this fast is nearly unheard of in consumer - most brands at this stage are years from it, and many never arrive. The milestone every young company talks about is no longer in front of us. It is behind us. We expect Q3 to be our first positive Adjusted Free Cash Flow quarter, and we expect to stay positive from there. 3 Annualized Revenue Run-Rate ("ARR") is an operating metric calculated by multiplying IM8 revenue recognized in the applicable month by twelve and includes revenue from both subscription and one-time purchases. ARR is not a financial measure under IFRS, and is not necessarily indicative of revenue for any future period. ARR reflects orders from both new and existing customers and incorporates the effect of cancellations and non-renewals occurring on or before the applicable month; however, it does not adjust for anticipated future cancellations, non-renewals or pauses. ARR annualizes a single month of revenue and assumes that the revenue recognized in that month is maintained for the following twelve months. As a result, ARR is sensitive to the timing of promotional activity, product launches and billing cycles. In particular, the full order value of quarterly subscription plans is recognized upon shipment of the three-month supply, which increases revenue recognized in months when quarterly billings are concentrated. It may therefore differ significantly from actual future revenue. We are running ahead of our own plan. For Q3 we are guiding to $63-64 million of total revenue, with IM8 contributing $61.5-62.5 million - up 38% sequentially at the midpoint, a seventh consecutive record quarter. And we are raising our full-year guidance: total revenue of $220-230 million, with IM8 contributing $215-222 million. The top of the IM8 range implies a fourth quarter of approximately $81 million, roughly 3x the same quarter last year, into our seasonally strongest period. It also means we expect to exit 2026 at an ARR above $300 million. And we are looking further out than that: today we are initiating full-year 2027 guidance of $400 million or more in IM8 revenue. To put that in perspective: IM8 generated roughly $60 million in 2025, its first full year on the market. We are guiding to $215-222 million in its second. And we expect more than $400 million in its third. We do not treat that trajectory as ambition; we treat it as arithmetic, built cohort by cohort from subscribers we already have and the acquisition engine you will see measured throughout this letter. One more thing about both numbers: they include nothing from the new products arriving over the next few quarters. Hydration launches into a $37 billion category this year and our premium gummies line follows; every dollar they generate is upside to the figures above, sold first to the 140,000+ subscribers we already serve at no incremental acquisition cost. We would rather guide on the machine we can measure and let the launches surprise in one direction only. And we will do all of it the way we have built everything so far: as an AI-native company of roughly 70 full-time employees. At this year's guidance, that is more than $3 million of revenue per employee - a level of output per person with almost no precedent in consumer - and it is not a constraint we are tolerating on the way to something bigger. It is the design. The organization that reaches $400 million will look far more like the one we have than the one convention says we should need. Why a Letter You have just read the scorecard. Beginning this quarter, everything that follows it changes: we are moving to a shareholder letter in place of the earnings-report format we have used in the past. The change is deliberate, and the scorecard above is the reason. A summary can tell you what happened. It cannot tell you why it happened, whether it will happen again, or what we intend to do about it - and this business has moved from proving it can grow to showing exactly how it grows, in the very quarter it starts generating cash instead of consuming it. You cannot see that in a results table. So from now on, we will write to you every quarter and explain the machine behind the numbers. Plainly, with the data, including the parts we are still watching. Our earnings event is changing too. This quarter, for the first time, we will present our results in a live stream that anyone can watch. Analysts ask their questions first, as always. Then we answer questions submitted and up-voted by individual shareholders. Q2 2026 Headlines Q2 2026: total revenue of $46.5 million, up 29.3% from Q1 and approximately 3.9x year-over-year. IM8 delivered $45.0 million, up 33.2% sequentially and approximately 4.6x year-over-year, at approximately 65% gross margin (57% a year ago). Both figures within the Company's guidance of $46-48 million total and $44-46 million for IM8. July 2026 Headlines July 2026 (preliminary and unaudited): the strongest month in our history. Revenue of $20.9 million - 4.3x July last year - puts the ARR at roughly $251 million, and the July cohort of 47,373 new customers was the largest we have ever acquired. Efficiency: blended CAC held essentially flat through a near-doubling of Q2 acquisition marketing spend, then fell roughly 21% in July to approximately $239. It is early - one month - but for a scaling consumer brand it is a rare and important signal, and we explain why below. Unit economics: every $1 we have invested in customer acquisition since launch has now returned $1.52 in gross profit - up from the $1.44 General Catalyst underwrote when it committed $1 billion on July 14. The same cohorts, one month later; the figure rises every month as they age, because gross profit keeps accruing on spend that was paid long ago. Financing (July 14): closed $1 billion in non-dilutive growth financing from General Catalyst's Customer Value Fund ("CVF"), tied for the largest commitment in the CVF's history. The inflection: consolidated Adjusted Free Cash Flow turned positive in July - the first positive month in our history - and is expected to be positive for Q3 2026 and to stay positive from there. The Opportunity In Front of Us It is worth stating plainly what we are pursuing. The global market for vitamins, minerals, and supplements is roughly $200 billion a year and growing. It is one of the largest consumer categories in the world and one of the least consolidated. No brand owns it. Most of what sells is commodity product: undifferentiated formulations with no clinical evidence, competing on price. That is our opening. A premium, clinically validated, globally distributed brand does not need a large share of a $200 billion category to become a very large company. Twenty months in, IM8 already ships to 46 countries, and approximately 54% of revenue comes from outside the United States. Most consumer brands spend a decade building that kind of international footprint. We built it in under two years, which means growth can now compound in two directions at once: deeper into markets we know, and outward into markets we have barely touched. That is why we keep investing in growth rather than harvesting early profits. Categories like this get decided once, they are being decided now, and we intend to be the brand that decides ours. Left: IM8 ARR milestones. Right: IM8 full-year revenue guidance. Twenty Months, and a Record July IM8 launched in December 2024 with one product and 3,794 customers. Twenty months later, IM8 has delivered more than 57 million servings - over 200,000 every day - and generated roughly $160 million in cumulative revenue. Someone, somewhere, orders IM8 about every 27 seconds. Revenue has set a new record in nearly every month since launch: $13.0 million in April, then approximately $16.0 million in each of May and June, and $20.9 million in July. July's cohort of 47,373 new customers was the largest in our history. Roughly 40% of those customers chose quarterly plans, committing to a full quarter of IM8 on day one. IM8 monthly revenue since launch. Management data; unaudited. July 2026 figures are preliminary. Now the July observation we consider most important, and the numbers behind it. In Q2 we nearly doubled acquisition marketing spend - from $18.3 million in Q1 to $35.7 million - to acquire 118,493 new customers, the largest quarter in our history. Every playbook says blended CAC should have jumped. It did not. CAC held essentially flat, edging down from about $305 to about $301. Then in July, with spend moderating to $11.3 million but still roughly double any month in 2025, CAC fell about 21% further, to approximately $239, while we acquired the largest single-month cohort we have ever had. IM8 CAC against monthly acquisition marketing spend. Management data; unaudited. July 2026 figures are preliminary. Why does this matter so much? Because scaling consumer brands almost universally experience the opposite: each incremental customer costs more than the last, and rising CAC is usually what ends the growth story. Ours holding flat through a spend double - and then falling - tells us demand is compounding through channels we do not pay for by the click: the ambassador platform, organic content, word of mouth, and a brand that increasingly walks in the door on its own. At our current pace of new customers, every ten dollars of durable CAC improvement is worth several hundred thousand dollars a month. We want to be equally clear about what this is not. It is one quarter of flat and one month of falling. July is preliminary and unaudited, and a single month does not make a trend. We are not building our plan on CAC staying at $239, and if it reverts, you will read it here first. But we watch this number more closely than any other in the business, and what it did in July is, on the evidence so far, immensely positive. What Our Cohorts Tell Us We manage IM8 cohort by cohort: every month's new customers are tracked as a distinct vintage from their first order onward. Two findings from that data matter most to shareholders. First, our cohorts endure. The chart below stacks each month's billings by the vintage of the customers who generated them. Notice that the layers persist. Customers acquired at launch and through the first half of 2025 were still billing about $3 million in July, twelve to twenty months after we acquired them, while newer and larger layers stack on top. Older cohorts continue to generate meaningful revenue while newer and larger cohorts are added on top. Retention behavior has held consistent across every vintage since launch, through an 18x scaling of monthly volume. That consistency is what makes future revenue from existing customers largely forecastable. It is also, as we explain below, what makes it financeable. IM8 monthly gross billings by acquisition-cohort group. Management billings data, preliminary and unaudited. Second, each new cohort is worth more than the last. A customer acquired in 2026 generates about 50% more billings in their first month than a customer acquired in 2025: roughly $212 for the July cohort against a 2025 average of $142. The biggest driver is commitment mix. Quarterly plans, introduced in November, now account for about 40% of new customers, at an average first order around $321. Customers are arriving in record numbers and arriving with more conviction. Richer cohorts on a consistent retention curve mean faster cost recovery and more future revenue per dollar invested. This is the quiet engine underneath everything else in this letter. The commitment shift is now the majority of the business. Quarterly plans crossed monthly plans in March 2026 and reached 54.8% of July revenue - from zero last October. Active subscriptions ended July at roughly 140,000, about six times the level of fifteen months ago, and the base has grown every single month on record. Approximately 87% of revenue is recurring and about 95% of revenue runs through our own store rather than marketplaces - which means the customer relationship, the data, and the margin stay with us. Active subscriptions at month-end since the April 2025 platform migration. Management data, preliminary and unaudited. First-month billings per new customer, by monthly cohort. Management billings data, preliminary and unaudited. What a Third Party Sees: Independent Card Data Everything above comes from our own systems, so we want to close the cohort discussion with numbers nobody at IM8 produced. Indagari, an independent analytics firm, tracks US consumer credit- and debit-card transactions across brand panels - including IM8 and the three most prominent brands in our category: AG1, Thorne, and Grüns. The data covers the United States only, is transaction-based rather than company-reported, and we cite it precisely because we cannot touch it. Start with the picture that needs no caption. Since December 2024 when IM8 launched, US direct card spend on IM8 has grown roughly 25-fold - while over the same period AG1 declined 36%, Grüns declined 48%, and Thorne grew 51%. Two of the three most prominent brands in the category are shrinking in their home market's direct channel, the third is growing modestly - and the category's growth is concentrating in one brand. And the United States is not even our largest market: roughly 54% of IM8 revenue is generated outside it. Indexed US card-spend growth since December 2024, through late July 2026. IM8's index benefits from a small launch-month base; the direction and divergence, not the multiple, are the point. Source: Indagari US card panel. Second, retention - the claim skeptics test hardest, answered by a third party. Twenty months after first purchase, Indagari's panel shows IM8 retaining 14.2% of customers still transacting - 25% more than Thorne (11.4%), 31% more than AG1 (10.8%), and nearly six times Grüns (2.4%). Card panels count monthly transactions, and the majority of IM8 revenue is on quarterly plans that transact once every three months - which mechanically understates IM8 across the curve. Even measured that way, IM8 finishes highest, and is the only brand whose curve is rising at the tail as early cohorts' quarterly renewals land. Left: share of each cohort still transacting at month 20. Right: the full curve, months 0-20 - the shaded band marks months 1-5, where quarterly-billed IM8 customers transact only every third month and the monthly panel mechanically undercounts IM8. Cohorts from December 2024, data through July 2026. Source: Indagari US card panel. Third, the premium is on the card statements: IM8's average transaction reached $181 in July against $100 for AG1, $83 for Grüns, and $71 for Thorne - 1.8 to 2.5 times the category on every swipe, with the divergence beginning precisely when quarterly plans launched. Growing fastest, retaining longest, at nearly double the price per transaction - measured by someone who has never set foot in our office. The General Catalyst Partnership: Validation, and Fuel On July 14, we closed $1 billion in growth financing from General Catalyst's Customer Value Fund, tied for the largest commitment in the CVF's history. We want shareholders to understand what this represents beyond the capital. General Catalyst spent months inside our cohort data before committing. They studied the same vintages, curves, and billing records described above, and their underwriting reduced to a single number: blended across all mature cohorts, every $1 we have invested in customer acquisition has returned $1.44 in gross profit. That was the number at underwriting. One month later, the same cohorts stand at $1.52 - and the figure rises every month, because gross profit keeps accruing on acquisition marketing spend that was paid long ago. Every historical monthly cohort continues to exceed the performance thresholds in their underwriting. A billion dollars from one of the world's premier growth investors, secured against the performance of our customer economics, is the strongest external validation our model has received. It arrived without a single share of dilution. The plain-terms effect: a significantly larger business, sooner, with more cash in the bank and a higher return on capital. The mechanics matter as much as the amount. General Catalyst finances up to 70% of IM8's marketing spend on a monthly cohort basis, and IM8 keeps full discretion over how much of the facility to use. In return, General Catalyst receives a capped share of income tied to the cohorts it finances. Once that capped return is recovered on any cohort, every remaining dollar of lifetime value belongs to IM8 permanently. No shares were issued, and none can be issued under the facility. The largest use of cash in our business is now substantially funded by a partner whose return depends on the same cohort quality we already manage the business around. There is precedent for what this structure does to a company, and it is public. Lemonade (NYSE: LMND) partnered with the same General Catalyst platform in mid-2023 to finance up to 80% of its customer acquisition. Within twelve months it was reporting net-cash-flow-positive quarters while tripling growth spend year over year; within eighteen it posted its first full year of positive Adjusted Free Cash Flow, with its earliest funded cohorts repaid in full. Its market capitalization has roughly increased from ~$1bn to now more than $4bn since the partnership began. We are not Lemonade, and our categories differ. But the mechanism now working underneath IM8 is the same one - and our cohorts pay back materially faster than insurance customers do. The Inflection: Consolidated Adjusted Free Cash Flow Turned Positive, and the Full P&L Behind It In July, consolidated Adjusted Free Cash Flow - which includes fundings under the General Catalyst facility - turned positive for the first time in our history. This is the milestone we have been tracking since before the brand existed. It was in the founding model on day one: the point where growth stops consuming our cash. And I will say something honestly here, because this letter is built on transparency: it arrived far faster than I ever believed we could reach it. Two things made that possible, and they are connected. The cohorts came first - customers who stay, spend more over time, and return their acquisition cost in months rather than years. And it was those cohorts that earned the second thing: a billion dollars of General Catalyst's capital, committed after months inside our data, which now funds acquisition so that our own cash no longer has to. Strong cohorts attracted the capital; the capital freed the cash flow; and the cohorts' repayment speed is why it happened in July - rather than years from now. We expect Q3 to be our first positive quarter, and we expect to stay positive from there. This is a change of state, not a one-quarter event: the difference between a business that consumes cash to grow and one that grows on its own receipts and its partners' conviction. Why does this matter so much? Because it ends the defining trade-off of high-growth consumer companies. Until now, every dollar of growth we bought showed up first as cash out the door. The faster we grew, the more cash we consumed. From Q3, that reverses. The existing subscriber base generates the cash, the CVF funds the growth, and the funded cohorts repay from their own receipts. We now control our own destiny. We never have to raise equity into a bad market. We never have to slow down to conserve cash. It negotiates partnerships, launches, and expansion from strength. The economies of scale are now visible across the P&L. Gross margin for IM8 tells the story most directly. We started at roughly 57% a year ago and reached approximately 65% in Q2, more than 800 basis points of expansion earned while revenue grew about 4.6x. We see further room over time as manufacturing volumes, shipping density, and product mix keep working in our favor. Scale is compounding on the cost line the same way brand is compounding on the demand line. The same shift shows up in Adjusted EBITDA 4 . The first-half loss of $24.6 million was the deliberate investment that bought our largest cohorts ever. And here it is worth pausing on something unusual about Q2, because it says a great deal about how we report: our Adjusted EBITDA loss of $19.0 million is larger than our actual net loss for the Q2 under IFRS Accounting Standards of $9.0 million. That is not a typo. This quarter included $10.0 million of net fair value gains and other related items, and our adjustment convention strips them out - exactly as it stripped out losses of the same kind in Q1. We adjust against ourselves, in both directions. On the statutory line, the one no convention touches, net loss per share improved to $(0.52) from (0.94) a year ago - 45% better while revenue grew 3.9x. The second half should look very different, and July has already shown you what it looks like. On preliminary figures, July's consolidated Adjusted EBITDA loss was approximately $2.4 million - about 11% of revenue, versus 41% in Q2 - with a preliminary net loss for the period of approximately $3.6 million. Our second-half guidance of an $8 to $12 million Adjusted EBITDA loss, an improvement of more than 50% even as we keep investing at record levels, is not a promise about a distant future; it is a description of the run-rate the first month of the half already delivered. Both views - the consolidated P&L all the way down to earnings per share, and the IM8 engine with July standalone, every partner cost named, including royalty at its stepped-down 3.5% - are reproduced from the investor deck directly below. And one thing said directly, because we would rather you hear it from us than reconstruct it: in May we spoke about a full-year Adjusted EBITDA loss of roughly $15-20 million. The first half alone came to $24.6 million, and our second-half guidance implies a full year beyond that old range. What changed is not discipline; it is the capital model. When we discussed that range, every dollar of EBITDA loss was a dollar of our 4 Adjusted EBITDA is defined as EBITDA further adjusted to exclude amortization of deferred expenses, equity-settled share-based payment expenses, transaction-related expenses associated with acquisition, disposal and fundraising activities, strategic realignment and discontinued products impact, exchange gains or losses, net, fair value gains or losses on financial assets at fair value through profit or loss, warrant liabilities and digital assets, and profit or loss from discontinued operations, net of tax. EBITDA is defined as loss for the period, adjusted to exclude depreciation and amortization, interest income, other finance costs, and income tax expense or credit. own cash. The General Catalyst facility broke that link. So when Q2 presented the largest cohorts in our history at flat CAC, we bought them, at a measured $1.52 of gross profit per dollar and rising, and the proof the trade worked sits on the cash line: consolidated Adjusted Free Cash Flow turned positive in July, the very month the facility went live. We spent more, reported a larger EBITDA loss, and burned less cash than the old plan would have. Going forward you have both dials from us, guided: second-half Adjusted EBITDA loss of $(8)-(12) million 5 , and Adjusted Free Cash Flow positive from Q3. EBITDA tells you how hard we are pressing the accelerator; cash flow tells you whether we can afford to. The Three Questions We Hear Most D epending on who is asking, we are apparently either burning too much money or not spending nearly enough. Three questions come up in almost every investor conversation we have. Here they are, answered plainly. "When will you be profitable?" The direct answer: we could be profitable tomorrow if we chose to be. Roughly 140,000 active subscriptions renew on a schedule at approximately 65% gross margin - that recurring engine already produces more than enough gross profit to cover our entire cost structure. What would go is the growth investment, and that is precisely the trap. Every dollar we have invested in acquiring customers has returned $1.44 in gross profit at underwriting - already $1.52 today; cutting that investment to print a profit today would trade compounding value for cosmetics. I say it inside the company the same way I will say it here: profitability is a choice, not a destination. And the major step has already arrived: consolidated Adjusted Free Cash Flow turned positive in July, we expect Q3 to be our first positive quarter, and the business now funds its own ambitions. A self-funding company gets to pick its moment of profitability. We will pick ours when slowing down costs you less than speeding up, and not a quarter before. "Can you be more aggressive? Why not spend more?" It surprises people that we hear this at least as often as the first question - and almost always from the investors with the deepest experience in direct-to-consumer businesses. They quote our own numbers back at us: the gross-profit multiple on acquisition, the ~3-6 month payback, a projected 3:1 LTV / CAC 5 ratio - lifetime value on a gross-profit basis over 36 months, extending observed cohort curves beyond our oldest vintage of twenty months, with no contribution from future product launches assumed. With those economics, they argue, the expensive mistake is under-spending. They are right about the math, and candidly, we share the instinct. What governs our throttle is no longer capital - the CVF removed that constraint. It is cohort quality, expressed as three gates. The marginal cohort must clear our payback thresholds. Creative and audience depth must support the next dollar as well as they supported the last. And the operation - fulfillment, service, the product experience itself - must absorb the growth without degrading what customers feel. In Q2 all three gates were green, and we nearly doubled spend. In July we acquired our largest single-month cohort ever - on somewhat less spend than Q2's monthly peak - and CAC fell a further 21%. When the gates are green, expect us to be every bit as aggressive as these investors want us to be. The moment one turns amber, expect us to hold. Spend is an output of cohort quality, not a target - which is also the honest answer to question one: we are not protecting a profit number, and we are not chasing a spend number. We are following the cohorts. "What gives you conviction the growth is sustainable?" Five things, each of them checkable. First, the record: since its first full quarter, IM8 revenue has compounded at 51% per quarter - $5.7 million to $45.0 million in five quarters - and our Q3 guidance implies a sixth. Second, the cohorts: nineteen consecutive monthly vintages, every one retaining along the same curve through an eighteen-fold scaling of monthly volume, with newer cohorts worth roughly 70% more in their first month than last year's. Growth built on a leaky bucket shows the leak by the third vintage. Ours has held through nineteen. 5 LTV/CAC is defined as cumulative gross profit per customer over 36 months divided by CAC. Note: Q2 2026 IM8 revenue has been updated from previously disclosed preliminary amounts to exclude certain taxes collected on behalf of tax authorities in accordance with IFRS 15. As a result, previously disclosed Q2 2026 revenue of approximately $47.8 million was revised to $45.0 million. Third, the nature of the demand. The CAC pattern described earlier in this letter is the signature of demand arriving through doors no one can buy - ambassadors, word of mouth, a brand that walks in on its own. Growth that depends on one algorithm is fragile; growth arriving through a dozen doors is not. Fourth, the runway - and the arithmetic of the path. We hold roughly a tenth of one percent of the $200 billion category, ship to 46 countries most of which we have barely begun to develop, and have entered neither US retail nor China. And the path to our 2027 guidance is shorter than it looks: as of July we were already at a $251 million annualized run-rate, and our Q4 guidance implies we exit 2026 above $300 million. From that exit rate, $400 million-plus in 2027 does not ask the machine to accelerate. It asks the machine to keep doing what nineteen consecutive cohorts show it does - and considerably less than it did this year, when revenue grew nearly 4x. On top of all that sits the pipeline: Hydration launches in Q4 and our premium gummies line follows in the first half of 2027, and we hold both to the same promise as the flagship - we believe each will be the best product in its category at launch, clinically studied and NSF certified, selling into an active base whose acquisition cost is already paid, with none of that revenue in guidance. Our conviction does not require the next act to be lucky. The next act is already built. And fifth, our conviction has been independently audited by General Catalyst who spent months inside the same cohort data before putting a billion dollars behind the conclusion. Is that certainty? No. Certainty is not available in business. It is conviction with tripwires - the "What We Are Watching" section below lists exactly what would change our posture, and we will report those indicators whether they flatter us or not. A Balance Sheet Built for This Moment The CVF partnership was negotiated from strength, and the balance sheet shows it. As of June 30, 2026, the Company had $59.1 million in cash and cash equivalents and $50.3 million in current financial assets at fair value through profit or loss, representing an aggregate balance of approximately $109.4 million. Net current assets were $111.1 million, up from $106.5 million at March 31, 2026. A company that carries this balance sheet with zero debt, completes $40 million of share repurchases, and runs its largest investment quarter ever - all at once - did not take a billion dollars because it needed rescue. It took the capital because the cohort math says deploy more. One housekeeping note on the capital structure. Approximately 2.36 million Class C Warrants remain outstanding at an $18.00 exercise price; exercised in full, they would bring roughly $42.5 million of additional cash into the company. We also hold a forced-exercise right: if our shares trade at or above $21.60 for ten consecutive trading days following registration, we can require the warrants to be exercised. On capital allocation, our priorities are simple and in this order: product and clinical investment, growth investment wherever cohort economics clear our bar, and opportunistic capital returns when the market prices us below what the model is worth. The $40 million repurchase program is complete, and management separately put $2.75 million of personal capital into open-market purchases this year. Science: The Bar That Builds the Moat In a $200 billion category built mostly on marketing claims, clinical evidence is the scarcest asset and the hardest to copy. Our flagship, Daily Ultimate Essentials, is backed by a completed randomized controlled trial. Three further randomized, placebo-controlled trials are underway - one at the Mayo Clinic, and two double-blind, IRB-registered studies at an independent U.S. research institute - and their designs are worth describing, because in clinical research, the design tells you how serious a company is long before any result arrives. Start with the Mayo Clinic study, because it sets the highest bar: at Mayo Clinic in Florida, investigators led by Dr. George Pujalte are running a randomized, placebo-controlled trial of Daily Ultimate Essentials in 100 healthcare workers - the people who deliver medicine, at one of the most respected medical institutions in the world. Over eight weeks, with a four-week supplement washout before baseline, the study measures objective physical performance - a six-minute walk test, body composition, grip strength - alongside weekly well-being and bloodwork drawn at baseline and repeated at week eight: vitamins, minerals, inflammatory markers including CRP and IL-6, and cardiometabolic measures including ApoB. The study is investigator-initiated, designed and run by Mayo Clinic investigators under Mayo Clinic research protocols. The longevity study enrolls 180 participants across four arms - placebo, a single dose of IM8 Longevity, a double dose, and the full Beckham Stack of Longevity taken together with Daily Ultimate Essentials - 45 per arm over 90 days, with every participant wearing the same standardized wearable, analyzed centrally, so sleep and recovery physiology are measured rather than self-reported. The co-primary endpoints are the two most validated short-horizon biomarkers in longevity research: hsCRP for systemic inflammation and HOMA-IR for insulin resistance - the processes that sit upstream of most age-related disease. The fourth arm is the one we consider most telling: it tests the actual regimen our customers buy, head-to-head against its own components and against placebo, with the comparison pre-specified. The gut health study enrolls 135 participants across three arms - placebo, single dose, double dose - over eight weeks, a dose-response design that strengthens causal inference well beyond a simple two-arm comparison. Its co-primary endpoints measure exactly what the product promises: the GSRS, the validated gold-standard instrument for digestive symptom burden, and microbiome diversity measured by shotgun metagenomic sequencing of stool samples at baseline and week eight - we sequence the microbiome; we do not merely survey it. The protocol excludes recent antibiotic and probiotic use before baseline, the two confounders that quietly invalidate most microbiome studies. Results from the two independent-institute studies are expected by the first quarter of 2027, with the Mayo Clinic study reading out on its own academic timeline, and we will publish what we find. Endpoints are pre-specified objectives, not results - no study's outcome is assured, and we would not want it any other way. Evidence that cannot fail is not evidence. Beyond these, we are planning additional clinical trials across the product portfolio, because our standard is simple. Every product we launch completes IM8-level clinical validation first, and products already in market keep earning deeper evidence over time. Every IM8 SKU is NSF Certified for Sport, the certification trusted by professional athletes and anti-doping bodies. All of this is slower and more expensive than how the category usually operates. It is also why the category's typical brands fade, and why we expect to endure.

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