Enhanced Group Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue was $3.3 million, compared to $17.7 million in the second quarter of 2026 and $0 in the prior-year period.
• Net loss for the quarter was $13.5 million, compared to $61.9 million in the second quarter of 2026 and $5.9 million in the prior-year period.
• Adjusted EBITDA loss was $8.8 million, compared to a loss of $42.7 million in the second quarter of 2026 and a loss of $3.8 million in the prior-year period.
• Cash and cash equivalents were $12.1 million as of September 30, 2026, down from $19.6 million as of June 30, 2026, and $25.3 million as of December 31, 2025.
• Games, athletes, and event operating costs were $2.7 million for the quarter, compared to $52.0 million in the second quarter and $1.3 million in the prior-year period.
• Selling, general, and administrative expenses were $12.7 million for the quarter, compared to $16.6 million in the second quarter and $4.2 million in the prior-year period.
• Total operating expenses were $16.8 million for the quarter, compared to $61.9 million in the second quarter and $6.0 million in the prior-year period.
• Loss from operations was $13.5 million for the quarter, compared to $61.9 million in the second quarter and $6.0 million in the prior-year period.
• For the nine months ended September 30, 2026, revenue was $21.0 million, compared to $0 in the prior-year period.
• For the nine months ended September 30, 2026, net loss was $91.8 million, compared to $12.2 million in the prior-year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA loss was $65.0 million, compared to a loss of $9.7 million in the prior-year period.
• Net cash used in operating activities was $69.96 million for the nine months ended September 30, 2026, compared to $11.4 million in the prior-year period.
• Net cash provided by financing activities was $64.18 million for the nine months ended September 30, 2026, compared to $10.7 million in the prior-year period.
• Accounts payable and accrued expenses increased to $25.4 million as of September 30, 2026, from $3.0 million as of December 31, 2025.

Guidance and Future Outlook:

• Following the closing of the DEAG acquisition (expected Q1 2027), the combined group is projected to generate approximately $670 million in revenue and $26 million in Adjusted EBITDA for the full year 2027.
• Management expects telehealth revenues in 2027 to reach "well into the double-digit millions."
• The Company targets a budget of approximately $20 million for the 2027 Enhanced Games, aiming to break even or better for the sports business in 2027.
• The Company anticipates a $20 million sponsorship inflow at the end of 2026, including a $10 million cash payment from Zoop due December 31, 2026, and the monetization of $10 million in Rezolve stock unlocked in December 2026.
• Management stated the Company is "fully financed for growth" and entering "hyper-growth mode" following the DEAG acquisition.

Business Segments and Product Lines:

• Live Enhanced telehealth revenues increased during the third quarter.
• The Company launched the beta version of "Enhanced OS," an AI-powered platform combining medical records, biomarker testing, and wearable data into individualized health plans.
• Live Enhanced expanded its product offerings to include Modafinil and six additional peptides (BPC-157, TB-500, KPV, MOTS-c, Epitalon, and Semax), supplementing 12 existing Rx products.
• The "Enhanced Breakers 1" event was completed, featuring a world record in the snatch; "Enhanced Breakers 2" is scheduled for December 19, 2026.
• The Company completed the third and final closing of an approximately $50 million private placement on August 14, 2026.
• The Company amended the Rezolve sponsorship agreement to a fixed $10.0 million consideration settled in Rezolve ordinary shares.

Market and Competitive Landscape:

• DEAG operates in seven core European markets, stages approximately 6,000 live events annually, and runs proprietary ticketing platforms.
• DEAG has completed more than 30 acquisitions since 2019.
• The DEAG transaction implies an enterprise value of approximately $139 million, representing 5.3x DEAG's FY2027E Adjusted EBITDA, compared to a median of 14.1x for listed live entertainment peers.
• Management cites macro tailwinds including AI and robotics reducing human labor needs, potentially increasing leisure time for real-life shared experiences.

Risks and Challenges:

• The Company has a limited operating history and a history of operating losses.
• Risks include the need for additional capital and the ability to obtain financing on acceptable terms.
• Regulatory risks exist regarding performance-enhancing substances, peptides, compounded products, and telehealth compliance.
• Risks include the ability to stage future events profitably and secure sponsorship, media rights, and ticketing revenue.
• The Company faces competition in the telehealth, supplement, and performance medicine markets, including pricing pressure.
• Risks relate to athlete health and safety, medical protocols, and the Company's dependence on key personnel and partners.
• The Company must remediate existing material weaknesses and implement effective internal controls over financial reporting.

Management Commentary and Tone:

• Maximilian Martin, Co-Founder and CEO, described Q3 as a "deliberate breather" to refine offerings and enter agreements for DEAG, stating the Company is entering "hyper-growth mode."
• Sid Banthiya, CFO, noted the Company held back on aggressively scaling telehealth to optimize unit economics and tripled marketing efficiencies.
• Management expressed confidence that the telehealth business is ready to shift into growth mode towards the end of the year.
• Management clarified that Class B shares carry voting rights only and do not represent economic ownership, noting some data providers may conflate share classes.

Other Key Points:

• Enhanced Group signed a definitive agreement to acquire approximately 77% of DEAG Deutsche Entertainment AG via an all-stock transaction at 5.3x FY2027E Adjusted EBITDA.
• A concurrent $15 million straight equity PIPE was announced with long-term, blue-chip investors.
• The DEAG transaction is expected to add approximately 11 million Class A shares, and the PIPE is expected to add approximately 2.1 million Class A shares upon closing in Q1 2027.
• The Company effected a one-for-ten reverse stock split effective October 29, 2026.
• Key shareholders voluntarily extended the lock-up on approximately 3.1 million Class A shares from six months to twelve months, reducing shares subject to expiration by 60%.
• The Company has approximately 13.7 million Class A shares outstanding, with a market capitalization of roughly $110 million based on an $8.05 closing price.
• The DEAG transaction is all-stock with no cash consideration, valued at EUR 4.00 per DEAG share.
• The Company will host a conference call on November 12, 2026, at 4:30 pm ET to discuss results.