Aug 18, 2026 earnings call — IM8 growth, new products, General Catalyst financing
Company raised full-year revenue guidance to $220 million to $230 million.
Revenue $0.0B (est $0.0B) · EPS $-0.53 (est $-0.84) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"This morning, we reported $46.5 million in total, up 29% from Q1, roughly 3.9x from a year ago, with IM8 at $45 million, up 33% sequentially at a 65% gross margins."
"One month ago, General Catalyst committed $1 billion against our cohorts."
"we have an ongoing randomized controlled study right now at Mayo Clinic among health care workers."
Analyst Q&A 5
marketing spend and gross margin mix
Q (Ryan Meyers · Lake Street): How will marketing spend change in H2 given General Catalyst funding? Also, how will shifts to quarterly subscriptions affect sustainable gross margins?
A: They expect H2 marketing spend as a similar percentage of revenue to Q2, maybe slightly better but not materially different. Management said quarterly subscriptions are more favorable for gross margin and could add a few percentage points as mix shifts, plus further economies of scale into 2027.
"So what we're looking at for the second half is a percentage of revenue that's likely more in line with the second quarter in terms of percentages, maybe a slightly more favorable number than that, but not materially different." — Brian Rosin (CFO)
time to launch new products
Q (Thomas Forte · Maxim): How long from deciding a new category to consumer product? Also build vs buy strategy and whether health interest is multi-generational.
A: For new categories like hydration, they said development is deliberate and includes clinical and certification work, and it takes about 12 to 18 months or longer to bring a product to market. They said they currently prefer to build products but will consider strategic M&A if the opportunity and capital are right; health interest is multi-generational with millennials and Gen Z driving much spending.
"I would say, going back to your original question, when we first thought about hydration, it was already end of last year, I would say." — Sheng Wu Yeung (CEO)
competition and customer origins
Q (Patrick Budicini · UBS): How has the competitive landscape changed recently? Are new customers switching from competitors or new to the category?
A: They said the brand has taken significant market share from top players and published third-party data showing rapid growth versus peers. Management said many new customers switch from other supplements and that more than 50% of customers have household income above USD 150,000, which helps retention and higher average order value.
social commerce and trial readouts
Q (Alex Hantman · Sidoti): How are TikTok Shop and social commerce affecting CAC and AOV and store vs off-store sales? Also, when will study readouts arrive and how will science support products?
A: They said about 90-plus percent of transactions happen on their own website by design, though they are testing TikTok and other channels while keeping DTC focus. For science, they said two trials (longevity and gut) are underway with results expected by Q1; the Mayo Clinic study will likely take longer, possibly Q2 or Q3.
"So I think with the 2 trials that are underway for the longevity as well as gut, we expect to have results of those by Q1." — Sheng Wu Yeung (CEO)
July CAC drivers and product attach rates
Q (George Kelly · ROTH): What drove July's revenue acceleration and improved CAC, and has CAC normalized in August? Also, what attach rates do you expect for hydration and gummies, and do guidance numbers include General Catalyst funding?
A: They said July CAC fell about 20% versus Q2 due to advertising spillover, strong word-of-mouth, ambassador activity, and many offline events; August is still early so they cannot comment on full-month CAC yet. Surveys of existing customers showed hydration and gummies were top requests and more than 20% of customers asked for those; management confirmed adjusted free cash flow and adjusted EBITDA guidance see General Catalyst funding presented in cash flow and cash assumptions, with cash impacts below EBITDA as interest and repayment.
"I would say the first question in terms of July, and obviously July-wise, I mean our CAC went down by about 20% over Q2, right?" — Sheng Wu Yeung (CEO)