Prenetics Global Q1 Earnings Call Highlights

Key Points

• IM8 is driving a major turnaround for Prenetics, with Q1 revenue jumping 334% year over year to $36 million and most of that coming from the supplement brand. Management said IM8 is now shipping to 43 countries and tracking toward about $186 million in annualized recurring revenue.
• Subscription growth improved unit economics, with 82,000 active subscribers, 93% of IM8 revenue from subscriptions, and quarterly subscribers showing 10% better retention than monthly customers. Average order value also rose sharply as the company rolled out quarterly subscription plans.
• Prenetics raised its IM8 outlook and strengthened its balance sheet, lifting full-year 2026 IM8 revenue guidance to $190 million-$210 million while keeping adjusted EBITDA loss guidance at $15 million-$20 million. The company also sold its Bitcoin holdings after quarter-end, boosting cash and financial resources to about $147 million.

Prenetics Global NASDAQ: PRE said its first-quarter results reflected the company’s shift away from diagnostics and genome testing toward a subscription-driven consumer health model anchored by its IM8 supplement brand.

Chief Executive Officer and Co-Founder Danny Yeung told investors that IM8, launched 17 months ago with one product and no revenue, is now shipping to 43 countries and delivering about 150,000 servings per day. He said IM8’s May monthly revenue is tracking at about $15.5 million, implying roughly $186 million in annualized recurring revenue.

“This is what product market fit looks like at scale,” Yeung said, adding that Q1 was the company’s “best quarter as a consumer health company” and that April and May were tracking better.

Revenue jumps as IM8 drives results

On a continuing operating basis, Prenetics reported first-quarter revenue of $36 million for the period ended March 31, up about 334% from $8.3 million a year earlier, Chief Financial Officer Stephen Lo said. IM8 contributed $33.8 million, while CircleDNA contributed $2.2 million.

Gross profit rose to $23.3 million, up about 315% year over year. Consolidated gross margin was 64.8%, and IM8’s gross margin was 64.3%, which management said represented an improvement of roughly 400 basis points sequentially. Lo attributed the margin gains to manufacturing scale, negotiated supplier economics, product mix, packaging optimization and fulfillment efficiencies across international markets.

The company reported a loss from operations of $8.9 million, compared with $6 million in the prior-year period. Adjusted EBITDA loss was $5.6 million, compared with $4.5 million a year earlier. Lo said the larger loss reflected deliberate marketing investment tied to the international rollout of quarterly subscriptions.

Lo noted that the company’s results were preliminary while it completes quarter-end closing procedures for certain non-cash, non-operating items tied to loan liabilities from a December 2025 exchange program and share consideration from the Europa divestiture.

Subscription model lifts order value and retention

Executives highlighted the global rollout of quarterly subscriptions as a key driver of improved unit economics. Yeung said IM8’s average order value rose from about $110 for full-year 2025 to $157 for new customers in Q4 2025 and $240 in Q1 2026.

Active subscribers reached 82,000, and 93% of IM8 revenue came from subscriptions. Servings delivered increased 28% sequentially to 8.8 million in the quarter, which Yeung said was a more meaningful metric than customer orders because quarterly subscribers buy three months of product at a time.

Yeung said January 2026 quarterly subscription cohorts generated $587 in cumulative revenue per customer in four months, compared with the January 2025 monthly cohort taking 12 months to reach $549. He said current cohorts are tracking toward an implied 12-month lifetime revenue range of $900 to $1,100 per customer, compared with $571 for mature cohorts.

During the question-and-answer session, Yeung said quarterly subscribers showed 10% higher retention than monthly subscribers over the first four-month period.

Guidance raised, new products excluded from outlook

Prenetics raised its full-year 2026 IM8 revenue guidance to $190 million to $210 million, up from its prior range of $180 million to $200 million. For the second quarter, Yeung said the company expects total revenue of $46 million to $48 million, with IM8 contributing $44 million to $46 million.

Management said the outlook does not include expected contributions from three planned Q4 product launches: hydration, creatine and kids gummies. Yeung described the products as extensions into large and growing categories, and said the company expects to sell them into its existing base of more than 80,000 subscribers.

Yeung said internal modeling suggests the three new SKUs could add approximately $178 to $378 of incremental second-year revenue per customer at illustrative attach rates, though he emphasized the revenue is not included in current guidance.

In response to an analyst question, Yeung said the company’s adjusted EBITDA guidance remained unchanged, with an expected adjusted EBITDA loss of about $15 million to $20 million for the year.

Marketing, athletes and clinical studies remain focus areas

Yeung said IM8’s marketing engine has expanded rapidly, with about 3,000 live Meta ads at any given time and roughly 600 to 800 new ads produced weekly. The company currently spends about 85% of its marketing budget on Meta and 15% on Google, but is testing TikTok, YouTube and AppLovin.

In Q1, management said marketing spend totaled $22 million. Yeung said the company is spending about $3,000 to $5,000 per day testing newer channels and expects progress on TikTok over the next three to six months. He said IM8 has about 500 TikTok affiliates and expects to reach 1,000 by the end of the month.

The company also highlighted its athlete and sports partnerships. Yeung said David Beckham co-founded IM8, while other equity-aligned partners include Aryna Sabalenka, Ollie Bearman and Giannis Antetokounmpo. Prenetics also recently announced a partnership with Inter Miami that includes becoming the club’s official health supplements partner, an equity stake in Prenetics, NIL rights with at least four players including Lionel Messi, and an IM8 nutrition center at the team’s training facility.

Yeung said the company’s scientific advisory board includes individuals associated with Mayo Clinic, Cedars-Sinai and NASA. He said IM8 has completed one randomized controlled trial for its flagship product and has two additional randomized controlled trials underway in gut health and longevity, with recruitment expected to begin within 30 to 45 days.

Bitcoin sale boosts cash position

Prenetics said it ended the quarter with $56 million in cash and cash equivalents and no debt. The company also held $34.8 million in Bitcoin and about $15 million in current financial assets measured at fair value through profit and loss.

After quarter-end, the company sold its entire 510 Bitcoin position for $41.3 million in cash proceeds. Yeung said the board adopted a policy that Prenetics will not purchase Bitcoin or other digital assets going forward. Management said the company now has about $147 million in cash and financial resources, including financial investments and escrow cash.

Under its $40 million share repurchase authorization, Prenetics has deployed approximately $19 million to repurchase about 968,000 shares. Yeung said he and other senior managers also purchased $2.75 million of shares in open-market transactions during prior trading windows.

Yeung said future capital allocation will focus on potential expansion of the share repurchase program, IM8 direct-to-consumer marketing, the Q4 product pipeline and international expansion.

About Prenetics Global NASDAQ: PRE

Prenetics Global NASDAQ: PRE is a molecular diagnostics and genetic testing company that delivers a broad range of laboratory and at-home testing solutions. The company's core offerings include next-generation sequencing (NGS) panels for hereditary health risks, pharmacogenomic reports to guide medication choices, and comprehensive consumer DNA testing services. In addition to genetic insights, Prenetics provides infectious disease diagnostics—most notably real-time PCR testing for pathogens such as SARS-CoV-2—through an integrated platform that combines sample collection, laboratory processing and digital reporting.

Serving both business-to-consumer and business-to-business markets, Prenetics operates a network of laboratories and service centers across Asia Pacific, Europe, the Middle East and North America.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.