Prenetics Global Q2 Earnings Call Highlights

Key Points

• Strong IM8-led growth: Second-quarter revenue reached $46.5 million, up 29% sequentially, with IM8 contributing $45 million at a 65% gross margin. Prenetics raised its 2026 revenue outlook to $220 million–$230 million and introduced a 2027 target of at least $400 million.
• Customer acquisition and cash flow improved: IM8 added 118,000 customers in Q2 and ended the period with 140,000 active subscribers; July acquisition costs fell 21% to about $239. The company reported its first positive consolidated adjusted free cash flow in July, including General Catalyst financing, while expecting second-half adjusted EBITDA losses to narrow substantially.
• Expansion plans continue: IM8 plans to launch hydration products in Q4 and premium gummies in Q1 2027, neither of which is included in current guidance. Prenetics also has three ongoing randomized clinical studies, with results expected primarily in 2027.

Prenetics Global NASDAQ: PRE reported second-quarter revenue of $46.5 million, up 29% sequentially and about 3.9 times from a year earlier, as its IM8 supplement business continued to add subscribers and scale marketing spending. The company raised its full-year revenue outlook and said July marked its first month of positive consolidated adjusted free cash flow, including funding provided under its General Catalyst facility.

The webcast was the company’s first live earnings video presentation. Management said it released a 40-page shareholder letter and an 80-page investor deck detailing cohort performance, acquisition costs and retention data.

Revenue Growth and Updated Outlook

IM8 generated $45 million of second-quarter revenue, while total Prenetics revenue reached $46.5 million, within the company’s prior guidance ranges. IM8 revenue rose 33% from the first quarter and carried a 65% gross margin, according to management.

The company raised its 2026 total revenue guidance to $220 million to $230 million, including IM8 revenue of $215 million to $222 million. For the third quarter, Prenetics forecast total revenue of $63 million to $64 million, with IM8 contributing $61.5 million to $62.5 million.

Management said the full-year outlook implies approximately $81.2 million in fourth-quarter revenue at the top end of the range. It also introduced a 2027 revenue outlook of at least $400 million and said it expects to exit 2026 at an annualized revenue run rate above $300 million.

In July, Prenetics reported preliminary total revenue of $21.4 million, including roughly $20.9 million from IM8. Management said the month represented the company’s highest monthly revenue level and was equivalent to an annualized run rate of about $251 million.

Subscriber Growth, Marketing and Profitability

Brian Rosin, U.S. CFO of Prenetics, said the company acquired 118,000 new IM8 customers in the second quarter, a 98% increase from the prior quarter. Customer acquisition cost was flat to slightly lower sequentially despite a significant increase in acquisition spending.

July customer acquisition cost declined to about $239, down 21% from the second-quarter average, while IM8 added approximately 47,000 new customers during the month. Rosin said the company had not incorporated the July improvement into its forward guidance assumptions.

Prenetics ended the period with 140,000 active subscribers. Management said approximately 87% of revenue is recurring and that half of subscribers had remained with the business for at least three months.

• Second-quarter gross profit was $30.2 million, representing a 65% gross margin.
• Fixed operating costs were $8.8 million, or 19% of revenue.
• Contribution profit was $21.4 million, or 46% of revenue.
• Adjusted EBITDA was a loss of $19 million during the quarter.
• Net loss was $9 million, or $0.52 per share, compared with a loss of $0.94 per share a year earlier.

For July, the company reported a preliminary adjusted EBITDA loss of $2.4 million and a net loss of $3.6 million. Rosin said operating costs declined to 15% of revenue during the month, while acquisition marketing spending fell to 54% of sales as customer acquisition efficiency improved.

For the second half of 2026, Prenetics expects adjusted EBITDA loss to narrow to between $8 million and $12 million, compared with a $24.6 million adjusted EBITDA loss in the first half. Rosin said the anticipated improvement is expected to come from operating leverage, potential gross-margin gains, lower ambassador costs as a percentage of sales and more efficient acquisition spending.

General Catalyst Facility and Balance Sheet

Management highlighted a $1 billion commitment from General Catalyst, which it said was based on diligence of IM8’s monthly customer cohorts. Rosin said the facility is expected to fund 70% of the company’s acquisition marketing spending, allowing Prenetics to invest in growth while reducing the cash burden of customer acquisition.

The company said adjusted free cash flow turned positive in July when including financing under the General Catalyst facility, and it expects the third quarter to be its first positive quarter on that basis.

Prenetics reported $109.4 million in cash and current financial assets. During the first half, it spent $36.1 million net of proceeds on a share buyback. The company said it had 15.2 million shares outstanding and a fully diluted share count of 19.2 million, including warrants and grants available to be issued.

Product Pipeline and Clinical Research

Management said IM8 plans to enter the hydration category in the fourth quarter and launch a premium gummy line in the first quarter of next year. The company said the hydration market is valued at $37 billion and the gummy category at $25 billion. Neither launch is included in its financial outlook, according to management.

The company said it currently operates in 46 countries and is focused on direct-to-consumer sales, with about 95% of transactions occurring through its own website and approximately 5% through Amazon. Management said it does not see a need to enter retail over the next 24 to 36 months, given current online growth and unit economics.

Dawn Mussallem, chief medical officer of Fountain Life and a founding IM8 scientific advisory board member, discussed three ongoing randomized controlled studies. One Mayo Clinic study includes 100 healthcare workers and is expected to report results by the second quarter of 2027, if not sooner. A longevity study with 180 participants is expected to produce results in the first quarter of 2027, while a gut-health study includes 135 participants and will assess the microbiome using shotgun metagenomics.

Mussallem said IM8 products are NSF Certified for Sport and third-party batch tested. She also cited the company’s earlier 12-week randomized controlled study, in which participants reported improvements in energy, vitality, gut health, sleep and clarity of thought.

Prenetics also announced that Caroline Levy joined its board as an independent director and became a member of the audit committee and governance and nominating committee. Levy said she was drawn to the company’s execution, consumer affinity for the IM8 brand and the opportunity to bring analytical rigor to the board.

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.

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