Good afternoon, everyone, and a warm welcome to FamiCord's H1 2026 earnings call. You have seen the news published today. In the second quarter, we continue to operate in a challenging market environment while stabilizing profitability and significantly improving operating cash flow. As always, we have prepared a short presentation covering the key developments and figures. Today's call is primarily about the Q&A session that will follow, where we look forward to addressing your questions directly. Please note that the entire call, including the Q&A session, will be recorded and made publicly available on our website after the call. With that, I am pleased to hand you over to the CEO of FamiCord AG, Jakub Baran. Jakub, over to you.
Thank you, Ingo. Welcome, everybody. We do not have many slides to show. As Ingo mentioned, we are rather ready for Q&A session. We announced our results today, and I believe that they were not that much surprising, reflecting what we already communicated before, that we expected challenging year. However, we are pretty happy that from cash perspective, we are doing a little bit better than expected. We also see that Q1 was worse than Q2. If we compare to last year, we can also see that Q2 did relatively better versus Q2 2025 than Q1 2026, versus Q1 2025. There is a kind of improvement going on. Revenue-wise, I do not like to walk through all the table because you see the numbers. Revenue is more or less stable.
EBITDA dropped, but the drop is much lower than it was in Q1, so it looks like we are recovering. That is also related with the structure that drop IFRS. The EBITDA drop is related with the structure of the contracts, as last year, we have a little bit bigger, let us say, IFRS effect. It improved our reported results. While this year, with our current structure, cash is looking better than reported EBITDA. This is unfortunately our story that we cannot really predict behavior of consumers, in terms of how they are selecting payment options, whether they are more pushing for recurrent or more for prepayment. Cash flow increased, as mentioned. Part of that is related with changes in working capital because of the structure of the contracts. We have now less future liabilities because more people prepaid.
It is constructed, then reflected differently in balance sheet. Overall, we see more people selecting subscription, which has pluses and minuses, because from one angle, we have less cash in from these clients. From the other angle, obviously, the future cash flows are better, and overall, these clients paying subscription are bringing us more money in time, also including cost of cash in time. We confirm also our guideline, nothing changed. It is precautious. At the moment, we do not see any substantial risk that may change. Environment is challenging, as said by Ingo. Certain factors are independent from industry. We have fragile economy, war around, changing prices of energy, unpredictability of U.S. politics, household budgets under pressure, lowering number of children, that will not change. Obviously, Germany is hit by that. We have also lowest numbers of births since Second World War finished.
However, from the other angle, our position in the sector is continuously strong. We see also more and more people prolonging prepaid contracts, which finished. They paid in the past, 10, 20 years ago, different forms of prepayments, and they are prolonging. That is strengthening our results. That mass of people finishing prepaid contracts will grow over time. So this is like additional cash injection, and they are usually selecting subscription. However, some of them are also prepaying. We had positive signals, not only signals, but even more from CDMO area. So we announced signing of the contract with ArThec last month or let's say six weeks ago, and it's a new client for CDMO, and we expect to close another transaction in September, and another one October, November. Depends.
But that would be also new clients, so new references, and this is something we really need in CDMO because we are newcomer somehow. We are in that area, but not really broadly recognized. New clients will help. In terms of outlook, I already told, pretty precautious. Not so much different than we had last year, right? In terms of revenue and EBITDA. Obviously, we have to carefully monitor our liquidity and cash position, because this is something which is of first priority in such times. We also continued with certain restructuring activity, particularly in Portugal. I think we'll finish it in Q1 next year, maybe Q2, depends. We have a new board in Portugal. The guys, they were involved in the company, and one of them worked for us a couple of years ago.
He came back, so we had some luck that he could join us. Otherwise, from positive side, I can see that Middle East investment is doing well. Investment meaning, to remind you, we acquired U.K. company. They had a branch in the U.K. We established a local facility there in Dubai two year, two and a half years ago, two years ago. That is doing very well and growing. Certain markets are resistant. Hong Kong is also stable. Smaller markets are fine, right? We are mostly focused on improvements in core markets, particularly Germany. It is mentioned in our report that we are considering entering into a new area, so there are some candidates. We had maybe 15, 17 potential directions of development.
We decided, obviously, to shorten that list to three, four, and now we are collecting information from experts, let's say, market players, ex-employees, and so to understand better the dynamics of this market. Which are not that far away from, let's say, cord blood banking, but they are somehow related, because we cannot jump suddenly to complete the other industry. We simply like to do kind of vertical expansion. So that is more or less, in a nutshell, a summary of current developments. What I may say also, we can see increasing number of cord blood samples used for treatment, particular experimental treatment. This is something actually, which is very important from strategic point of view, because this is the key motivation for our clients to bank, right? If needed, they will have a chance to use cord blood, and that is going relatively well. Thank you.
Great. Thank you, Jakub, for your short summary on Q2. As you all know, this is a pretty hands-on call format that we're choosing here. So we're not having a Q&A line or things like that. You all know the basics. Please just unmute yourself. I already see Tim raising his hand. Tim, please, your first question.
As always. Yeah, thanks for the quick update and encouraging to see that Q2 is sort of on a slight upward tick, I would say. You mentioned half year's a bit lower than last year, but Q2 is up from last year, so that's, I guess, a positive trend. I'd like to double-click on the revenue split, Jakub, and Thomas, obviously also, if you want to add something. You said you don't really have a choice or you can't really influence what the consumer, which kind of revenue model he goes for. I would maybe add that you do, and you have in the past by incentivizing with rebates or-
Yeah
advertising, et cetera.
Sure. I should be more precise. Obviously, if you offer a discount to existing annually paying clients, you may attract some of them prepaying. Yes? So from the perspective of tools we have in terms of cash generation, we have it in place. What I meant is that if we don't do any action, yeah, we have limited influence, because they are-
Exactly.
Yeah
That would be my question.
Yes.
Yeah, I know. Exactly. That was sort of the implied question is, I gather you didn't really have emphasis on the one or the other in the quarter, so it was more like an organic kind of selection by the-
Exactly.
Okay.
We have no clue really how, because there are so many factors influencing that we cannot really predict it. Yes? But obviously we, in Poland, we have a small action. We continue calling some annually paying clients, whether they would consider prepayment. Why in Poland? Because that is the biggest group of annually paying clients, but we have not decided to expand it more broadly because we have to balance, yes, current cash inflows and annually paying clients.
Mm. Understood. So I would, from my gathering- You said at the moment there's a slight trend to subscription model, which I think would probably correspond with a more consumer spending cautious environment, I would say. That in my mind-
Exactly
that adds up
Exactly
to the overall picture. But then encouraging to see that the cash flow, even though is very positive. Maybe Thomas, a quick question there. Is there any special things we should keep in mind or is that a pretty normal picture overall?
It's recurrent business. Our revenues are increasing by EUR 1 million, I think, in this quarter year to date. And it's also the price effect, so pricing for the product is a little bit higher. That's also an impact that we have on our cash flows. So there are several factors coming together here.
Okay. But no positive one-offs or anything, so more like a normal
Yeah, normal business.
Yes.
There is one thing which is going super well. After we last year solved, let's say, certain legal issues we have related with the bankrupted Cryo-Save, that group of former clients of bankrupted company, we really massively increased our activity. And these clients are, let's say, converting well, becoming our clients right now. That is something which is maybe interesting.
Okay, and then one other question on the CDMO. Congratulations first on increasing your reach there. Can you remind us how the revenue usually and the business is structured there? Is it continuous kind of funding or is it a bit more lumpy like project business?
Depends.
It depends.
We have certain categories here. One category is business we are doing in Germany and in Poland related with production of bone marrow, peripheral blood for transplantation, let's say, clinics. That is growing, steadily growing. Actually in Germany is flat and in Poland is growing. It is continuous. I do not expect any sudden changes here. Rather positive because we are acting now to get some more clinics in Germany and Poland is still growing, as I said. This is one part of CDMO. Second part are experimental therapies in Poland where we are supplier both for private and public hospitals providing them Advanced Therapy Medicinal Products in hospital exemption procedure. That is growing as well since three years.
Before we had it relatively large couple of years ago then due to certain regulatory issues, we dropped a lot and pandemic did not help, but we are recovering, and I expect further growth in that area. Then we have another part which is more classical CDMO that you have a client like ArThec. We have to win, and then you stay with such client for couple of years. I would guess at least three. If the outcome of that cooperation is positive, but it is not about manufacturing, it is more about the results of the clinical study, because usually that manufacturing is for clinical study. They have funds, they continue for a while. These are project-based but with an option of longer relationship. The new clients we are expecting will be of that nature as well. This is the category number three.
In CDMO, we have also some smaller categories like cell and tissue sourcing, analytics, this kind of stuff. That is going on slowly, and these are small amounts of money. Here we believe in growth. However, we are still at relatively low level. Internally, we are treating CDMO like a, let's say, separate business sector. It is not from reporting point of view because it is too small, but for, let's say, monitoring from management perspective, yes. We see the growth.
Great. Thanks, Jakub, and thanks, Tim. Oh, please, a follow-up question. Yes.
Yeah, just one more. If I look at the guidance for EBITDA, and we look at Q2 half year. Yeah, if we can continue on this level, CDMO may be going up a bit. It doesn't have a big effect yet, but I think still it would be fair to assume that the lower end of that range is more the probable outcome from today's point of view.
Yes.
Yeah. Okay. Thank you, and all the best.
Thank you.
Thank you, Tim. This call is from contribution. Folks, please just unmute yourself, ask a question. Yes, Niels. Thank you, Niels.
Hi, Ingo. Nice to see you again. Hi, Jakub, and hi, Thomas.
Hi.
Hi.
Thank you very much for taking my question. Really glad that you are doing this and that you are also pushing the video afterwards onto your website so that other participants can listen to it. Jakub, thank you very much for giving some light on the Cryo-Save case. Could you give us some hint into how many clients you already signed up from Cryo-Save specifically?
We are not sharing that information publicly.
Okay. Just for my clarification, in the past, you spoke about 225,000 direct Cryo-Save clients. What do you expect is a realistic target to reach within the next one or two years as potential customer?
One or two years is not perspective. I think that we should think from the perspective of rather three to five years. Why? Because Cryo-Save was the most successful between 2007, 2010, and these clients prepaid for 20, 25 years. This is the biggest pool of these clients, right? This is why not one, two years, but rather three to five. I would aim for 100,000, maybe 80,000. It's very difficult to say. Let's say 80,000 is safe, 100,000 would be ambitious.
This is, let's say, 35% of these B2C clients. The biggest problem we see. Actually, there are two. First is Spain, the largest market of Cryo-Save. I would say that out of these 225,000, 230,000 families, 85,000 were from Spain, and they were sold the service through insurance policies they had. They were buying private healthcare insurance, and that healthcare insurance had a component of private cord blood banking. Many of them, they even don't know or did not know now, they forgot they had that service done. They did not buy cord blood banking consciously. They bought it because they had this healthcare insurance. Now, such a client is not so easy to convince, right? Because he does not care. He did not spend any extra money from his perspective. That is first issue. Also quality of data is second issue.
The data we got from Cryo-Save are not so good overall, in terms of contact data up-to-date data. It is normal that after many years, the clients are not updating contact data and so and so. But in case of this pool of clients, it is worse than statistically than in our case, yes, of our clients.
These are two major obstacles. But overall, I am pretty happy with performance now after we solve these legal issues, and then the perspectives are rather positive. Whether we reach this, whatever, 80,000 or even more, I cannot predict, but at the moment, it is going well. Yes. That, at least I can see. We also finally, but these are small streams, we also convinced two more former partners of Cryo-Save. They were storing their clients with Cryo-Save to sign with us. There will be also small revenue stream from B2B as here.
Mm-hmm. Coming back to Tim's last question regarding the guidance, could you narrow the guidance a little bit because at the end of the day, we are already in September now or close to September. H1 is always the lower or weaker year and quarters of the year. We already have EUR 43 million in revenues. It should not be too ambitious to reach EUR 88 million in revenues, right?
It is the market which is really unpredictable. That is the issue. While we cannot expect surprises in number of children, right? In terms of reaction of consumers to what is going on, energy prices changing like they are changing and one move of Russia or U.S. or Iran is suddenly changing the behavior of consumers. Yeah. It is very difficult to say we are safe saying that we will reach the same revenue like last year. As said before, we are precautious this year, and we knew it that it will be like that. Yes. Unfortunately, I would be glad to say, "Yes, I am sure that we will deliver XYZ," but I cannot say so even we are now in August, or end of August. No, I cannot, unfortunately. If I would see, for example, either positive or negative one factor, it is not the case. Yes?
Besides CDMO, what I already commented, where we see clearly where we are with certain contracts, and clients. In terms of other developments, it is hard to say. Thomas did not mention, but we are keeping control of the costs. That is important. You notice we have much less FTEs in the group now. We are simply not rehiring if someone leaves for some positions, certain positions we had in the budget, we are not filling. Because we have to be careful. Yes.
Regarding CDMO, and the two contracts which are in the pipeline, how large would be the revenue impact if you sign them?
We have to talk with the clients whether they will allow us to share that information. Yes. Likely, yes, because initially we asked them, they told they have nothing against, but I need a permit first. But these are not breakthrough contracts, otherwise we will have an ad hoc. And then these are contracts which will last couple of years with possible extension. What I can tell today that one is from Eastern Europe, one is from Western Europe, and that production would be in Poland, yes, in Warsaw, because we have by far the largest capacity here.
Regarding cost measures, is there any update on Germany and how you can streamline the organization there?
There is, but again, we cannot disclose that information yet because we have clear picture what we should do. We analyzed several scenarios, but we need to simply discuss things with our supervisory board. I expect that will come in next couple of weeks. Then we start potential implementation. That is also dependent on also regulatory topics and so on. So what happened in Germany that we went down to Scale, market actual to save money. Because with our market cap, we are not fitting Prime Standard. That was one of the measures that relatively simple, surprisingly. As said before, we have less people now in Germany already because we did not hire people we originally planned. We merged eticur into FamiCord AG. So we maintain brand of eticur, but eticur itself is non-existing company.
We saved some money with that, and according to our calculations, the eticur brand itself, if you deduct one-offs related with merger, first time in history is over breakeven because the company has never been profitable.
Okay. Thank you very much from my side.
Thank you.
Thank you. Is there anybody who would like to add something to this Q&A? Nope. It doesn't look like this, but a half an hour call is a good call from our perspective. Thank you all for joining again. It's been a pleasure having you. We meet again next time in November for this next call on Q3. Until then, I wish you all a great time, and for now, a happy weekend. Enjoy the time. Bye-bye.
Thank you.
Thanks.
Bye-bye