Genius Group Ltd Q4 FY2025 Earnings Call

Good morning, and welcome to the Genius Group Investor Call. I am Roger James Hamilton, the Founder and CEO of Genius Group. I'm joined today by our CFO, Gaurav Dama. We also have Shah Hamza here, who is operating our slides. Shah, if you want to just share the slides, we'll make sure everyone can see these as we go. And we're going to get started. So first of all, today we're presenting our 2025 full year results alongside our plans for 2026. We'll be walking through our three business units: Genius School, Genius Academy and Genius Resorts, and also our Genius City development, our Bitcoin Treasury strategy, current legal cases, our share count and our guidance for the year ahead. Before we begin, I'd like to remind everyone that this call contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These are subject to risks and uncertainties that could cause actual results to differ materially from those stated. For a full discussion, please see our most recent filings with the SEC. We undertake no obligation to update any forward-looking statement to reflect events occurring after this call. During the call, we will also reference non-IFRS financial measures, including adjusted EBITDA and pro forma revenues. Reconciliations to the most directly comparable IFRS measures are in the press release and slide deck, which we are also issuing this morning. Both documents are available on our Investor Relations website at irgeniusgroup.net, where you can also access our Form 20-F, which we are also presenting today for the year ended December 31, 2025, and which we are filing with the SEC this morning. Coming to our introduction, we are leading the AI-powered education revolution towards an exponential future. Let me take a moment to introduce Genius Group for those joining us for the first time. My entire life has been driven by a single question, and for the last decade our team at Genius Group has been focused on answering that same question together: will we pass the final exam? When I was a student at Cambridge University, a mentor of mine, futurist Buckminster Fuller, warned of a future in which technology will accelerate beyond human intelligence. He called this the final exam. He believed the outcome would not depend on the technology but on us—whether humanity raises consciousness fast enough to harness the technology and solve the world's greatest challenges, or whether we would fail and technology would destroy us. He said this around 50 years ago, and at that point we still had time. Today, we are at that threshold. Genius Group was founded to help us pass the final exam. We're an AI-powered education group, preparing students, entrepreneurs, businesses and governments for the future of work. We teach the ABCs of the future: artificial intelligence; the future of work; Bitcoin and blockchain; the future digital economy; and our community, the foundation of human connection in a post-singularity world. We serve 6.1 million students across more than 100 countries through our three business units, which are Genius School, Genius Academy and Genius Resorts. We're developing our first Genius City at Nuanu in Bali, Indonesia as our lifelong learning campus model. Our aspiration is an ambitious goal of impacting 100 million students, launching 100 Genius Cities and achieving a $1 billion valuation by 2030. Turning to our company mission and metrics: as Nelson Mandela said, "Education is the most powerful weapon which you can use to change the world." Genius Group's mission is not to train humans to be better machines—better at repetition, calculation and memorization—but to teach humans to be better humans through self-awareness, self-mastery and self-expression. Buckminster Fuller said the real task of humanity is not to invent more jobs but to rethink learning itself, to go back to school and remember whatever it was we were thinking about before someone told us we had to earn a living. Our Genius Curriculum is not about waking up to your day's work, but waking up each day to your life's work by aligning to your highest purpose, passions and ambitions and harnessing technology to get there. In a post-singularity world, humans do not become more relevant by trying to be smarter machines. They become more valuable by becoming wiser, more creative and more fully themselves. As robots become better robots, the purpose of education is for humans to become better humans. The word genius comes from Latin roots meaning to give birth and unique spirit. This same origin gives us genie, genes, genesis and generation. Genius Group's name is inspired by the insight that everybody is a genius. Instead of judging a fish by its ability to climb a tree, we help every learner discover who they are uniquely here to be. Turning to our metrics: as of December 31, 2025, our total assets stood at $137 million. Our stockholder equity is now at $97 million, which our CFO will go through. Our pro forma revenue for 2025 was $13.6 million, an 80% increase year-on-year. Our current market cap is $96 million. 2025 was a year of restructuring in which we defended the company with a series of corporate actions and legal filings, while consolidating our growth around a high-tech, high-touch model focused on free courses and paid mentoring and experiences. The result was a 10x increase in average revenue per student. We are now focused on building on this profitable model into 2026. Year 1 of the Genius Generation: before we move on to the numbers and plans, I want to share why I believe this is the most important year in Genius Group's history and why entrepreneurial education and reskilling is one of the biggest opportunities for both income and impact in 2026 and beyond. We've reached a tipping point in the acceleration of AI and the urgent need to prepare humanity for the coming disruption. This January, Elon Musk posted on X, "We have entered the singularity." Sam Altman, CEO of OpenAI, wrote last June, "We are past the event horizon, the takeoff has started." Geoffrey Hinton warned CNN in December that "2026 is likely to be the year the jobless boom begins." The World Economic Forum's Future of Jobs Report states that 59 out of every 100 workers will need reskilling or upskilling by 2030; 92 million jobs will be displaced and 170 million new roles are expected to emerge, but only for those who are prepared. There is an urgent need for future school models designed to harness technology rather than compete with it. This is the gap Genius Group is filling and will continue to fill as the gap grows. 2026 is year 1 of 15 of the Genius generation. Strauss and Howe's Generational Theory posits that society moves through 80- to 100-year cycles, and after millennials, Gen Z and Generation Alpha—the last of the pre-singularity human generations—we began year 0 of Generation Beta in 2025, the first exponential generation that will include humans, robots and AI. This is the Genius Generation, and 2026 is year 1. This generation will see us through the singularity and the fourth turning. The education this generation needs is not the education the last generation received. While the 21st-century industrial education model is designed on getting a job, our Genius entrepreneurial curriculum is designed on creating a job. In the past 9-to-5 model, work was defined as what you get paid for—your money work. In the future, we believe humans who design their life's work will have three types of work: money work, defined by what you get; village work, defined by what you give; and personal work, defined by how you grow. Our Genius Curriculum focuses on all three, combining money, village and personal work to make each student an MVP in their own design. As AI assists and frees up time from money work, life meaning will increase as more time goes into giving and growing. In short, our Genius Curriculum is designed for both income and impact, guiding each student to live a more meaningful, fulfilling life of abundance, balance and connection—the future ABCs in a singularity world. Company outlook for 2025 and how we will grow profitably in 2026: in 2025, we reorganized Genius Group around three business units that together form our Genius City Campus model: Genius School for children from early learning to high school graduation; Genius Academy for adult learning and reskilling in entrepreneur, investor, AI, Web3 and future skills; and Genius Resorts, our learning locations where we turn the old education paradigm of a production line into a five-star customer-first experience. In Q4 2025, the three units achieved operational profitability for the first time as a group. This is a milestone we are building on in 2026. Genius School: in November 2025, we completed the acquisition of a 51% majority stake in Pro Ed in Bali, operating under the Cambridge International Education System. We're integrating our Genius School model, built on the World Economic Forum's eight Future Schools framework. In 2026, Genius School is targeting profitable operations with revenue of over $6 million, including the launch of our Genius School Space Capsules, which are Starlink-enabled, connected, and can be dropped into any school within the Asia Pacific region. Genius Academy: we serve 6.1 million adult students worldwide. Revenue per paying student reached $1,856 in 2025, up 1,053% year-on-year, a 10x increase as we shift from mass free access to high-value premium learning journeys. In 2026, Genius Academy is targeting profitable operations with revenue of over $6 million, expanding our investor and entrepreneur academies globally and launching GEM-powered community features. Genius Resorts: in August 2025, we acquired Entrepreneur Resorts, bringing Tau Game Lodge and Matla Game Lodge in South Africa and Vision Villas and Genius Cafe Beach Club in Bali into the group. Genius Resorts generated $2.2 million in revenues in 2025 in just five months of operations under the group. In 2026, it targets over $8 million, including the commencement of Genius City construction for our 2027 and 2028 launch. Together, these three units are the proof of concept for the Genius City model. The vision works, the model is profitable, and we are now ready to scale. Genius School: Asia's leading future school. When I was founding Chairman of Green School Bali, the question we were asked was what kind of skill prepares children for a world that doesn't yet exist. Today, that question is more urgent than ever because the world our children will graduate into is one in which many of the jobs that will exist by 2030 have not yet been invented. We began the work by building a new future school curriculum focused on nurturing young change-makers to become the environmental leaders of tomorrow. As a result, when the World Economic Forum published its White Paper, Schools of the Future, it featured Green School as the number one example of what was possible. The WEF identified eight future skills every child needs to thrive: global citizenship, innovation and creativity, technology fluency, interpersonal intelligence, personalized self-paced learning, accessible and inclusive learning, problem-based collaborative learning, and lifelong student-driven learning. The OECD built on these principles in its Learning Compass 2030 framework, emphasizing that teaching values and skills is as important, if not more important, than traditional school knowledge. This combination of values, skills and knowledge, personalized to ignite the genius in each student, is the foundation for our Genius Curriculum and Genius School model. Following our agreement with Nuanu City, Asia's City of the Future in Bali, to take a majority interest in their two school campuses in Umalas and Nuanu, in 2026 we are introducing our Genius School model as an AI-powered personalized learning system, integrating with the world's two top certification systems for international schools: the Cambridge International Education System and the International Baccalaureate system. We are also running Genius Camps, a Genius Apprentice Program connecting students to entrepreneurial enterprises, and our Genius Educator Certification to equip teachers and parents globally to adopt the Genius School system. The launch of our Starlink-connected Future School Space Capsules—solar-powered, off-grid, modular learning pods that can be installed anywhere on earth—will enable us to deliver immersive AI-powered education to any school, village or remote location. The goal of Genius School is to ignite the genius in every student and help them design a life linked to their purpose, passions and talents so they wake every day to their life's work. In 2026, our goal is to build a proven, scalable future school model while achieving profitable operations with revenue of over $6 million. Genius Academy: AI-powered education for adults. Genius Academy is our lifelong learning platform for adults to learn AI, Web3, entrepreneurial and investing skills for the future of work. It delivers AI-powered personalized education at scale through our entrepreneur, investor, AI and Bitcoin academies. We have 6.1 million students and users across the group. Adult learners follow a similar process to younger students: they begin by getting clear on where they are, their purpose, passions and talents through our AI-powered assessments, define where they want to go, and then take steps to get there through our courses and community. We call this the Genius Code. The customer journey is freemium to premium. Learners join a free event or course, meet their AI guide, personalize their journey, follow an AI-powered learning path and build a learning profile. From there, they progress up different levels of our impact meter—from $97 a year plus membership where they can earn and redeem GEM rewards, to $970 per year Pro membership where they can earn as certified mentors and junior city leaders and add their own courses and content to our GEM marketplace. We anticipate that as digital content becomes increasingly free, online education will also be largely free, with students willing to pay for mentoring and live experiences such as summits, workshops, accelerators and retreats. In 2025, we moved toward this model by reducing the cost of online programs and increasing paid in-real-life offerings. The result was average revenue per student increasing from $161 to $1,856, contributing to our move to profitability. In 2026, Genius Academy is expected to achieve profitable operations with revenue of over $6 million. Plans include expanding our Investor Academy and Entrepreneur Academy globally, launching AI-enabled GEM-powered community features—GEM stands for Genius Education Merits—growing our Bali-based AI Labs and Genius Masters Retreats, and delivering AI-powered educator tools and course builders. Genius Resorts: experiential learning hospitality. Furthering our move toward in-person experiences, Genius Resorts bridges the digital and physical worlds by turning learning into a five-star experience. We acquired the profitable locations of Entrepreneur Resorts Limited in August 2025, bringing four world-class learning destinations into the group: Tau Game Lodge and Matla Game Lodge in Madikwe Game Reserve in South Africa—luxury safari lodges serving as venues for entrepreneurial leadership immersion programs—and Vision Villas and Genius Cafe Beach Club in Nuanu in Bali, which will be the basis for our upcoming Genius City in Nuanu, serving as villa retreats and community hubs. Genius Resorts generated $2.2 million in audited revenue from August to December 2025 alone. In 2026, it will deliver a full year of revenue contributing over $8 million as we launch new locations, including Genius Beach at Genius City Bali, grow our calendar of camps, workshops and retreats, and begin Phase 1 development of Genius City's Living Hub, Learning Hub and Student Hub. While many adults do not have budgets set aside for lifelong learning, they do have budgets for travel, holidays, food and drink. By turning learning into a hospitality and entertainment expense, we tap into existing budgets and annual calendars, making lifelong learning a lifestyle. In 2026, we are launching our Genie AI App with point-of-sale purchase and redemption, enabling GEM rewards that learners earn for taking steps in their learning, living, earning and giving to be spent within our Genius community. Our long-term goal is that the amount each learner can earn by giving and growing daily—contributing time and knowledge to the community—will be sufficient to cover living expenses without needing a traditional money job. Genius City: bringing it all together in a lifelong learning campus. Our three business units come together in the Genius City model. In November 2025, we signed and closed a joint venture for Genius City at Nuanu Creative City, Bali, to develop our first Genius City. Nuanu sits on 44 hectares of oceanfront land between Tanah Lot and Canggu on Bali’s west coast. It is already a world-class creative community attracting entrepreneurs, investors and artists globally, hosting international summits and festivals including Coinfest, Asia's largest crypto festival, and our own Future Summit, which we hosted to a sold-out crowd in November 2025. Situated in the center of Nuanu and near the current Pro Ed primary and secondary school campuses, Genius City Nuanu will become Nuanu's first fully integrated living and learning campus. Our architect Inspiral, our award-winning designers, have created a structure inspired by Buckminster Fuller's Spaceship Earth bio-architecture. They have completed concept plans and begun the second phase of design and development. The development includes a 100-key MICE hotel—MICE stands for meetings, incentives, conferences and exhibitions—as our living hub; an 800-seat multipurpose dome, Spaceship Earth, as part of our learning hub; and a future high school teaching our Genius Curriculum as our student hub, with shared co-working, creative labs, media labs and tech labs to drive a robust shared revenue model. Built on 15,500 square meters of land, the project cost is $28.3 million with a target three-year revenue of $19.8 million per year and operating profit of $5.8 million annually. The targeted enterprise value of this project alone is $46.4 million, to be funded through a nondilutive real-world asset blockchain-based property fund. Construction begins this year with completion targeted by the end of 2027. This is our prototype, and once proven, our aim is to replicate the model globally, targeting 20 Genius Cities by 2030 and ultimately 100 Genius Cities around the world. We anticipate each Genius City will have its own AI-powered community where learners can instantly connect to mentors, projects, opportunities and apprenticeships that match their purpose, passions and talents. Each Genius City will have its own sovereign fund, investing in startups and ventures, returning value to the community. The micro economy will be built on collaboration and contribution. The Genius City model is based on the Balinese Banjar village model, where each member identifies with their village role as much as their money job, where everyone’s living and food are covered and the calendar of festivals and community events provides ongoing opportunity to create, connect and celebrate. The Bali Tri Hita Karana philosophy—three sources of harmony—focuses on attaining fulfillment, happiness and peace through the balance of spirit, nature and humanity. The three hubs of Genius City are entered through the Spirit Gate, Nature Gate and Village Gate, with Spaceship Earth at the center. Market size: lifelong learning is our market and it's a $10 trillion opportunity. Global education and upskilling spend is on track to reach $10 trillion by 2030 according to HolonIQ. It is growing at a 4.5% CAGR and will be over six percent of global GDP. K-12 education alone will exceed $5 trillion. Behind these numbers is something more urgent: as the World Economic Forum estimates, 59 out of 100 workers worldwide will require reskilling or upskilling by 2030—hundreds of millions of people who need new skills, new purpose and new pathways. The corporate training market alone stands at $361 billion today and is projected to reach $800 billion by 2035. Companies must upskill their workforces because the world of work is being disrupted at a pace no previous generation has experienced. This is a historic moment we have been preparing for, and we believe the most powerful solution is personalized, experiential and lifelong education. Corporate actions, legal progress and shareholder rewards: 2025 was not an easy year for us. We reported throughout the year the challenges we faced from third parties and the corporate and legal actions we have been taking. The good news is that the combination of actions we have taken, while distracting from our core business, has enabled us to successfully defend the company. We continue to make positive progress on these cases. On corporate actions, we got shareholder approval and executed a series of share buybacks. Our directors, officers and I also purchased shares of Genius on the open market, and we were successful in releasing all liens on our assets from third parties related to earlier debt agreements, which were repaid in full. We also commenced the dual listing process on the Australian Stock Exchange. While we looked at other exchanges, such as Hong Kong and Taiwan, regulatory rules made short-term listings there impractical. The ASX has a good history of dual listings with U.S. companies, which influenced our choice. On legal actions, we succeeded in our filing with the appeals court to have the preliminary injunction on our ability to sell shares, raise financing and buy Bitcoin stayed until the arbitration case with LZGI is completed, after which the case will be closed. In the arbitration, we are seeking to recover 7.4 million junior shares and $6.6 million in funds paid to LZGI, and we expected a ruling by the end of January. However, the ICC has extended that date and will now give a final ruling at the end of March. Last year, we also filed a RICO complaint and a class action lawsuit against various parties, collectively seeking damages of $1 billion. These cases are in progress, and we are pleased to leave them in the capable hands of our lawyers so the company can focus on executing our operational plan. On shareholder rewards: in 2026, we encouraged shareholders to keep shares in book-entry form at our share transfer agent, Vstock. We announced a $0.10 per share Bitcoin loyalty payment program for shares held in book-entry form from November 28, 2025 through May 28, 2026. In addition, ERL began distribution of GNS shares to ERL shareholders on February 15, 2026, with the majority of these shares also receiving the loyalty program benefit by remaining in shareholders' names at Vstock. Currently, there are a total of 17.3 million shares held at Vstock as part of this reward program. We also held a share count on February 15, coinciding with the commencement of the ERL share distribution. We expected to provide the results by now but are still collecting data and will report in full once complete, which I expect will be fairly shortly. While we have a goal of building our Bitcoin treasury and accessing funding via an SEC-approved shelf and ATM, we are mindful to only use our ATM when it is accretive to the business, and we used it conservatively in 2025. We will continue to maintain a conservative balance between financing activities, Bitcoin purchases and share buybacks, with the ongoing goal of maximizing shareholder value while building the performance and profitability of our core operations. And with that, I'm going to hand it over to our CFO, Gaurav Dama, for the financial summary and guidance.

Thank you, Roger. Good morning, everyone. On Slide 13, we present our audited financials for the year 2025. Our 20-F will be filed today together with our guidance for 2026. Given our two significant acquisitions during the year, which are Genius Resort in July and Pro Education in November, we present both audited financials and pro forma financials, the latter reflecting a full year contribution from both businesses. In terms of our revenue, the audited revenue for 2025 was $8.4 million for the full year, which was up from $7.6 million in 2024. On the pro forma basis, incorporating the full year contribution from Genius Resort and Pro Education, our revenue was $13.6 million, an 80% increase year-on-year. You can see that clearly in the revenue chart, the 2024 bar is reflecting $7.3 million in core operations, plus $0.3 million from discontinued operations making 80% growth in our core business from 2024 to 2025, clearly visible. Our gross profit rose to $4.9 million on a pro forma basis, which is a significant improvement of 110% year-on-year. Our adjusted EBITDA loss was about $13.1 million for the year. The reported net loss was $56 million, including $42.9 million in noncash items. These are mainly asset impairment from discontinued operations, restructuring, provisions, share-based compensation. These are predominantly one-off costs associated with our consolidation and transformation. On an underlying operational basis, we achieved operational profitability from our business units in Q4 2025. Our cash used in operations improved dramatically down by 76% from $46.3 million in 2024 to $10.6 million in 2025; this reflects significantly tighter operational discipline across the business and the elimination of extraordinary costs, which occurred in 2024. On our balance sheet, our total assets grew 37% to $136.9 million. Our shareholders' equity is $96.6 million. Subsequent to year-end, we sold approximately 102.6 Bitcoin at an average price of $71,035 per Bitcoin, which is for a total of $7.3 million. This helps us to reduce our Bitcoin-backed loan from $8.5 million to $3.3 million, which further strengthened our balance sheet. Our total students grew from 5.8 million to 6.1 million in 2025 compared to 2024. Revenue per paying student grew 1,053% from $161 to $1,856, a strong leading indicator of our shift to a premium integrated high-tech and high-touch model. Turning to 2026 guidance, which you see on the right-hand side of the slide, we are guiding to $20 million to $22 million in terms of revenue, which is 48% growth from our 2025 pro forma and a positive EBITDA from our operations of $1.5 million to $2 million. All three business units are expected to achieve profitable operations, which is Genius School over $6 million, Genius Academy over $6 million and Genius Resort over $8 million. With that, I'll hand it back to you, Roger.

Thank you very much, Gaurav. We are now entering 2026 with the strongest foundations in Genius Group's history. Our three business units profitable together for the first time. Genius City signed and underway, $137 million in total assets and over $1 billion in damages being pursued by our legal team. And on top of that, a dual listing on the ASX is in process. So moving to our final slide, the future ABCs. I want to close with a message that resonates with all of our students and sets us apart from other education companies. The result of our Genius Education is a shift in focus on the ABCs that we are teaching and what we are currently experiencing. If you look below, the left column are the present ABCs experienced by many children and adults today. These are the ABCs of anxiety, burnout and crisis. These are not abstract words. These are the lived experience of hundreds of millions of people right now. Workers facing displacement, parents watching their children prepare for a world that no longer exists, leaders trying to navigate unprecedented change, the anxiety of not knowing what comes next, the burnout of running faster just to stay still and the crisis of a system built for a world that is ending. The right column are the future ABCs that our learners experience from Genius: abundance, balance, connection. These are not ideals. These are outcomes. The abundance that comes when technology takes care of scarcity and humans take care of each other. The balance that comes when we work to live, not live to work. The connection that comes when we start competing and start creating together. How we do this is through the ABCs we teach. This is a central three, the Genius Code: AI, Blockchain, Community. These are not just technologies, they are the tools of liberation. AI is not to replace human intelligence, but to amplify it. Blockchain is not just about Bitcoin and digital currency, but also digital trust, digital ownership, digital sovereignty. And community, because none of us can pass the final exam alone. We pass it together or not at all. The image here that you see is the Genius City that we are building at Nuanu in Bali and that we aim to replicate in 100 locations around the world, a place where anxiety can turn to abundance, where burnout can turn to balance and where the sense of crisis and separation is replaced with lifelong connection and belonging. While some of our shareholders listening may be new to Genius, I know many of you have been long-time investors who have continued to support us through the challenging times because you believe in the importance of our mission as much as we do. And I want to say to you, thank you so much for continuing to be on this journey with us. 2026 is a year that I personally am changing my own ABCs from anxiety, burnout and crisis to abundance, balance and connection as we deliver on this mission. We are in the year of the singularity. We are at the beginning of the Genius Generation; we're at the moment Buckminster Fuller spent his life preparing us for, and we have been building exactly the right vehicle at exactly the right time to pass the final exam. This is the work we are committed to. This is the future we are building. Thank you for joining our journey. And with that, we're going to bring this shareholder meeting to a close, and we look forward to continuing the conversation online. Thank you very much, everyone.