Enhanced Group Inc. Class A

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Enhanced Group's second quarter 2026 earning conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please note that this call is being recorded today, August 13, 2026. I'll now turn the call over to Chris Jones, Head of Communications for Enhanced.

Thank you, and good afternoon, everyone. We appreciate you joining us today. Speaking on the call today are Maximilian Martin, Chief Executive Officer, and Siddhartha Banthiya, Chief Financial Officer for Enhanced. Earlier this afternoon, we issued our second quarter 2026 earnings results press release, available in the investor relations section of our website, along with our quarterly report on Form 10-Q filed with the SEC. Thank you for joining us. We will also refer to adjusted EBITDA, a non-gap financial measure. A reconciliation to net loss, the most directly comparable gap measure, is included in our press release. With that, I'll turn the call over to Max.

Thank you, Chris, and good afternoon, everyone. Thank you as well from my side for joining us today. Siddhartha Banthiya We began the year focused on completing our business combination with A Paradise Acquisition Corp., which we disclosed in Q4 of 2025. We closed the BCA within a matter of months with Enhance ringing the bell at the NYSE in May. Three weeks later, we staged the inaugural Enhance Games, an event that became the first medically supervised sporting event allowing enhancement. Despite our critics doing everything to castigate and in some cases block our event, our athletes and staff persevered. We completed a first-of-its-kind IRB clinical trial in a war zone and put on an event that delivered 21 personal bests, a world record, and engaged over 1 billion people globally in the process. Of course, we did all this while also launching our direct-to-consumer telehealth and supplement platform, Live Enhanced, during Q2. to all of this despite the criticisms. More than anything, our aspirations for enhanced required capital. And I'm proud we were able to raise a bit more than $50 million in financing this year, which included additional capital from both our Executive Chairman, Christian Angermayer, and myself, contributing $20 million and $5 million, respectively. Simultaneously, building and delivering one of the most groundbreaking sporting events in history, conducting a first-of-its-kind clinical trial, launching a consumer platform, and going public are not projects most management teams could accomplish in a two- or three-year period. We achieved all this within six months. In May, we hosted the inaugural Enhanced Games. In an arena complex, we designed and built ourselves from the ground up for a global audience that far exceeded expectations. Thank you for watching. and many more. Thank you for watching. Importantly, a portion of our inaugural investment went into infrastructure, including the pool and the track, which can be reused for future enhanced games and the broader Enhanced Breakers series. This will allow us to monetize our sporting business more effectively, while also opening additional revenue streams around the games going forward. The inaugural event was invitation only for both athletes and spectators. However, going forward, we intend to make the games significantly more accessible, including potentially ticket sales. Moreover, having demonstrated the economic impact the Enhanced Games can generate for a host city, we are evaluating future locations not just based on their ability to host the event, but also on the economic development financing opportunities and other incentives we can secure. Together, these factors should have a meaningful positive impact on the margins of the Enhanced Games as our tentpole event throughout the year. Ultimately, this will further strengthen enhanced positioning as one of the most exciting new sporting IPs for consumers to watch built around one of the most compelling sporting rivalries ever, natural versus enhanced. We believe this rivalry is a true differentiating factor for our sporting model and one that we intend to capitalize on significantly as the property scales. As the excitement around the games grew, so too did expectations that the event would produce multiple world records. In Red's respect, we should have managed that narrative more carefully. By allowing those expectations to take hold, we contributed to an impression that the evening had fallen short when only one world record was broken. But actually, it's quite the contrary, which we believe many people yet have to understand. What we delivered was transparent medical protocols helping athletes achieve new personal records, some of these athletes well past their prime at an average age of 30 years old. Looking at it from this perspective, the games were a massive success, but that positioning is something we could have done better. Critics' voices drew the headlines, and hate always attracts more attention than love, leading the superficial reader to believe the games were not a success. This learning helped us make a pivot in our communication strategy to not just better present the power of enhancements, but also position us more relatable to consumers. Nonetheless, there were many achievements which we believe positioned the company well into the future. Enhanced's multi-platform media strategy to produce a sporting event good for how modern fans consume content definitely contributed. Each event was dynamic enough to fit inside a TikTok or reel, providing an AI resistant content model that reached around the globe. We leveraged our own social properties and the largest global Twitch streamers and content creators to deliver more than 4 million live views and more than 1 billion impressions overall. These figures do not include our partner Roku's streaming data, which offered to broadcast in 100 million North American homes and inevitably pushes the viewership numbers even higher. For context, just the 4 million live views without Roku were equivalent to a regular NBA season game or an episode of The Tonight Show with Jimmy Fallon. Independent media coverage far exceeded expectations as well, with 4,000 global stories and publications reaching about 16.7 billion unique monthly visitors with prominent feature stories in Vanity Fair, The Economist, Financial Times, GQ Magazine, and Men's Health Magazine, just to name a few. All the above demonstrates the extraordinary global interest in the games and how that helped enhance the incredible brand value as a new sports property. The centerpiece of our sports strategy was delivering the games while setting a new standard for athlete health and safety. It took us more than a year to establish our clinical study, working with the Department of Health in Abu Dhabi and SSMC, the UAE's largest hospital, under an IRB-approved clinical trial. This was an investment in athlete health unlike anything seen before in sport. The results speak for themselves. Every athlete completed the trial safely. Every athlete improved their health data. And our athletes overall achieved 21 new personal bests. For a first Games, that is remarkable and demonstrates that athlete health and performance were never competing priorities. Our medical program and the proprietary data it generated gives us a foundation unlike anything else in the market, one we can now extend to a much broader population through our consumer platform. Partway through the trial, the region experienced a war that put the entire effort at risk. Our team took brave steps to safeguard our athletes, keep the trial's medical integrity intact, and found a path to complete the program on schedule. The credibility and trust we've built within the athlete community through our work is remarkable. I have Olympic champions and world record holders reaching out through Instagram DMs trying to get themselves a spot in our next competitions. And that trust in the quality of what we deliver as a company goes beyond the athletes. It ultimately transfers to consumers and gives us a level of credibility that most consumer companies have to spend years and tons of capital trying to build. Most begin by buying customers, search terms, performance ads, incremental acquisitions, optimizing cost per clicks. We started by building a brand and delivering a global event that engaged over 1 billion people. What we have is not simply a product looking for a category. Personal health and performance is a subject that provokes real emotion. You cannot buy that with performance marketing. You have to demonstrate something publicly, create a conversation and become part of the culture. That is what we're doing with Enhanced. Building a community while building a product. In just two quarters, we put a first-year property alongside competitions that have been building for a decade or more. That is what the investment bought us. A brand, a community and a level of trust that our competitors cannot simply go out and acquire later. Enhanced Sports Property now has real commercial demand despite significant deputational headwinds at the outset. We secured approximately $32 million of sponsorship deal value. We partner with Resolve, an AI commerce company that we chose deliberately rather than opportunistically. Beyond just a sponsorship agreement, Resolve has capabilities that sit directly alongside what we're building into our consumer platform, Live Enhanced. Our distribution agreement with Roku brought credibility in the sports media landscape. For a first-year property with reputational concerns, to be competing for the same budgets as events with decades of history shows a clear commercial validation we intend to build upon. We're also seeing the reputation of the headwinds start to dissipate and the subject of enhancement to be adopted more broadly. In surveying consumers, we found something pretty interesting. Consumers have moved past asking whether enhancements work. What they want to know now is, what works for me? What does my body need? What protocol should I consider? This points to where the category is going, personalized medicine. People need to understand enhancement as a category, but they also need to understand their own health data and what it means for them. Neither of those things is solved by advertising. The question is no longer, does it work? It's what works for me. And answering that requires actually knowing something about the person asking. That is what we're building with Live Enhanced and the Enhanced OS we announced today alongside our quarter. Most telehealth businesses are built around treating a specific problem, weight loss, erectile dysfunction, hair loss, and any other conditions, with the objective of getting someone back to baseline. We're playing in a different space, personalized performance medicine. Our focus is on hormone optimization, recovery, longevity, and ultimately helping people move beyond their baseline to access a level of physical and cognitive performance they otherwise wouldn't be able to reach. And there should not be a universal enhancement protocol, a one size fits all. Two people with different baselines, goals, physiology, lifestyles, and circumstances require completely different approaches. Thank you for watching. We believe we have a unique right to build that personalization because of what we have learned at the absolute frontier of human performance. In the two months leading up to the Games, our medical team has made 274 protocol adjustments across our athletes. That's roughly one adjustment per week per athlete. Every single adjustment generated data, learning, and created medical IP around how different interventions affect different individuals under different circumstances. What we built through this intensive process is incredibly valuable medical IP and now we can democratize access to it, taking knowledge that was previously available only to a very select group of elite athletes and making it available to consumers. The best analogy we like to use is Formula One. When Formula One engineers develop a Formula One car, they're working at the forefront of science, technology, and performance. That car will never be mass produced, but the technology and knowledge developed at that frontier eventually finds its way into the road cars a few years down the line. We believe enhanced works in a similar way. The work we do with elite athletes creates frontier knowledge that can help us build the best personalized protocols for consumers. What helps a 35-year-old athlete set a new personal record may be far too complex for everyday use, but the learnings from that work can shape how we personalize a protocol for a 42-year-old father of two who simply wants to feel like himself again. The decades of experience within our medical and scientific commissions, combined with the intensive work we've done optimizing protocols for elite athletes, are creating a body of medical IP that informs how we personalize enhancements for consumers. And this process is where AI and our data infrastructure become so important. We want to connect the consumer to their health and their everyday lives through wearables, health data, and ongoing feedback, and use that information to continuously improve what we recommend and how we educate them. We believe this will close the gap between what someone's body is telling them and the decisions they make about their health and performance. And that is important because the molecules themselves will become increasingly commoditized. When everyone is selling the same molecules through the same funnels, price becomes the only thing left to compete on. We want to compete on something much harder to replicate. Trust, knowledge and personalization. That also creates a fundamentally different relationship with the consumer. When someone stops an enhancement protocol, they generally return to their baseline. Once you have experienced, though, what it feels like to operate at your own personal best, going back to baseline can be a compelling reason to remain a consumer. We believe that dynamic, combined with the personalization and education we provide, can drive stronger retention and ultimately higher lifetime value than a traditional episodic healthcare model. Thank you for joining us. Today, our platform consists of an Rx business spanning testosterone replacement therapy, hormone replacement therapy, certain longevity medications and approved peptides, as well as a supplements business built around two stacks targeting distinct customer goals. But this is only the beginning. We intend to expand both the depth of our personalization and the breadth of our offering into more lifestyle-oriented applications and performance categories, including areas such as cognitive enhancement, and that brings us back to the core of our mission, to give everyone the opportunity to live enhanced. What that means is different for every one of us, so we need to be positioned to serve that. For some, it may simply mean the right supplementation, exercise and nutrition. For others, it may include hormone or peptide therapies. Where an individual sits on that spectrum is entirely up to them. Our job is to help each person understand where they are, where they want to go and what personalized path can help them get there. What we've learned through the first half of 2026 has therefore refined how we get there. We are not simply building another telehealth business or supplements company. We are building the platform for performance medicine, bringing the knowledge and learnings from the frontier of elite human performance to a much broader population because enhancements are relevant not just for athletes, but for anyone. Okay, coming to an end soon. Bear with me for a few more minutes. On the sports side, we're moving toward more frequent events at community scale. In July, we staged our first Enhanced Breakers series in Los Angeles, a smaller format competition where Beatrice Piron set a new world record in her weight class in the Olympic snatch. The Breakers model gives us a way to promote the mission at a much lower cost base, and it gives us a preview of the type of cost-effective live events shareholders can expect from us throughout the year beyond the Tempol Enhanced Games. These are proof points that keep our athletes competing, our audience engaged, journalists talking, sponsors interested, and the conversation around performance medicine in front of the world year round. but we also want to go beyond spectator events. We don't just want Enhanced to be something you watch elite athletes do. We want it to be something you can participate in yourself. So we're looking at everything from partnering with existing participatory communities like run clubs to creating local events where you can come together, compete and test yourself. We think that can make the Enhanced ecosystem much more accessible and much more community driven. And as we work through that, you'll see more announcements from us coming. On the consumer side, what we've built so far is a strong and trusted brand and a baseline offering around enhancement. What we're building next is the platform that takes the medical IP we've developed through Elite Sports and uses it to inform personalized performance protocols for the individual. One thing we hear constantly from consumers is very simple. What should I buy? Ideally, just tell me what to take. And that is exactly what we're building toward with the Enhanced OS, which many of you have seen alongside our announcement today. We're planning to launch the Enhanced OS later this year, and we believe it can become one of the deepest modes we have against anyone else in the telehealth space. Because it means we're not just sending a file to someone's doorstep. We're accompanying that person through their health journey, understanding their baseline, their goals, what they're taking, how they're responding, and continuously helping them adjust. and when you take a step back, that's really where the flywheel starts to come together. Our long-term thesis is to build an ecosystem where events create attention and trust, medical IP and data enable personalization. Personalization connects each individual to the right product or service and community keeps people engaged. Each part of this ecosystem makes the others more valuable. Attention on its own doesn't compound. A flywheel of these assets collectively does. And I think that becomes particularly interesting in a world increasingly shaped by AI. As AI and robotics make more things digital, automated and cheaper, people are going to place even more value on the parts of their lives that are difficult to replicate. Sports, life entertainment, community and human connection. That's the ecosystem we're building around. And as we grow it, we'll also look opportunistically at strategic M&A, where we can add capabilities, expand the product offering, strengthen the community, or deepen the mode we're building. And with that, let me turn it over to our Chief Financial Officer, Siddhartha Banthiya, to discuss our results.