Prenetics Global Q4 Earnings Call Highlights

Key Points

• Prenetics reported record 2025 revenue of $92.4 million (up 480% YoY), driven by its premium consumer health brand IM8, which reached a ~$120 million annualized run rate in under 12 months and contributed $27.4 million to Q4 with strong subscription metrics (80% subscription rate, ~3x LTV:CAC, 3.4‑month payback).
• The company executed a strategic pivot by divesting non-core assets (ACT Genomics, Europa, and a 35% Insighta stake) and ended 2/15/26 with ~$171.1 million in adjusted liquid assets and zero debt; management also stopped buying crypto and currently holds 510 BTC.
• Prenetics reaffirmed 2026 guidance of ~$180–$200 million in IM8 revenue (~300% YoY) with a ~60% gross margin and an expected adjusted EBITDA loss of $16–$20 million as it invests in growth, while targeting adjusted EBITDA profitability by Q4 2027 and testing quarterly subscriptions that raised AOV to about $233.

Prenetics Global NASDAQ: PRE used its fourth-quarter and full-year 2025 earnings call to detail what Chief Executive Officer and Co-founder Danny Yeung described as a “transformative” year, driven primarily by the launch of its premium consumer health brand IM8, which was co-founded with David Beckham.

Management said the company delivered record 2025 revenue of $92.4 million, up 480% year-over-year, and outlined a strategy to become a “pure-play consumer health leader” through divestitures of non-core assets. Prenetics also reiterated a roadmap to reach adjusted EBITDA profitability by the fourth quarter of 2027.

IM8 growth cited as key driver

Yeung said IM8 reached a $120 million annualized revenue run rate in less than 12 months, calling the trajectory among the fastest in the global supplement industry. He attributed early traction to the combination of “global influence and scientific credibility,” and said IM8’s quarterly revenue climbed from $6 million in Q1 to $27.4 million in Q4.

Management described IM8 as globally diversified, with 40% of revenue coming from the U.S. and 60% coming internationally across 30 markets. Yeung highlighted recurring revenue dynamics, stating the business had an 80% new-customer subscription rate.

On unit economics, Yeung said the blended LTV-to-CAC ratio was projected to be about 3x across products and that the 2025 payback period was 3.4 months, which he said allowed the company to recycle marketing spend quickly.

Strategic pivot and divestitures

Yeung said Prenetics executed a strategic pivot during 2025 and into early 2026 by divesting three assets to focus resources on higher-growth, higher-margin opportunities. He listed the transactions as:

• ACT Genomics: sold in June 2025 for $72 million, including $46 million in cash to Prenetics
• Europa business: exited in January 2026 via an all-stock transaction valued at $13 million; management characterized Europa as low-margin
• Insighta stake: sale of Prenetics’ 35% stake to Tencent for $70 million in cash, with $69 million already received, according to management

As of Feb. 15, 2026, Yeung said Prenetics had $171.1 million in “total adjusted liquid assets,” including cash, financial assets, and bitcoin holdings, and noted the company had zero debt.

Yeung also addressed the company’s bitcoin position, stating Prenetics stopped purchasing bitcoin as of Dec. 4, 2025 and “will permanently not engage in any Bitcoin or crypto purchases in the future.” He said the company currently holds 510 BTC on its balance sheet.

In governance updates, Yeung said board member Andy Cheung, who joined in connection with the company’s bitcoin strategy, resigned. Prenetics also appointed Dr. Darshan Shah to the board; Yeung described Shah as an expert in longevity and performance optimization and said his experience building longevity clinics in the U.S. would help as IM8 scales globally.

Financial results: Q4 surge and improving EBITDA loss

Chief Financial Officer Stephen Lo reported that fourth-quarter revenue rose 457% year-over-year to $36.6 million and increased 55% sequentially from Q3. Lo said IM8 contributed $27.4 million of Q4 revenue.

Lo reported fourth-quarter gross profit of $21.7 million, up more than 800% year-over-year, and a consolidated gross margin of 59%. Adjusted EBITDA loss for Q4 was $2.3 million, which Lo said represented a 70.4% improvement from the prior-year period.

For full-year 2025, Lo reported gross profit of $48.9 million, up about 428% year-over-year, and an adjusted EBITDA loss of $13 million, improving 27% from 2024. IM8 generated $60.1 million in 2025 revenue with a 63% gross margin, according to Lo. He added that exiting the Europa business is expected to further enhance consolidated margins in 2026.

2026 outlook, subscriptions, and product pipeline

Lo said Prenetics reaffirmed its 2026 guidance, projecting IM8 revenue of approximately $180 million to $200 million for the full year, which he said would represent nearly 300% year-over-year growth. The company is targeting a gross margin of about 60% in 2026 and expects an adjusted EBITDA loss of roughly $16 million to $20 million as it continues investing in marketing. Management reiterated a goal of achieving adjusted EBITDA profitability by Q4 2027.

During Q&A, Yeung discussed a shift to quarterly subscriptions that began with testing in the U.S. in December. He said customers can opt for three months of product at a time and save about $10 per month versus a monthly subscription. Yeung said the quarterly option increases average order value and improves logistics efficiency by consolidating shipments. He stated average order value rose to about $233 in early 2026 from roughly $130 exiting Q4, and from a blended $110 level during 2025.

Yeung also said the 90-day format could support retention, citing clinical trial results that he said showed “95% of individuals after 90 days have felt a noticeable difference,” including higher energy levels, better sleep quality, and better recovery.

On product expansion, Yeung said Prenetics plans to launch two new SKUs by the end of Q4 this year, describing them as health and performance supplements in “very large total addressable markets.” He said revenue from the new products is not included in the 2026 IM8 revenue guidance.

Management also discussed marketing execution and the use of AI. Yeung said the company rolls out roughly 800 to 1,000 new ads weekly and uses algorithms to identify “winning” creatives. He also referenced an AI video campaign featuring tennis player Aryna Sabalenka that he said reached 233 million views on Instagram. Yeung said marketing spend has been concentrated on Meta and Google (about 85% and 15%, respectively), with plans to diversify into channels including YouTube, podcasts, AppLovin, and TikTok by the end of the quarter and into Q2.

Internationally, Yeung said Prenetics is working on localizing websites, ads, and campaigns, and expects localization to lift performance in local markets by 10% to 15%. He said the company aims to localize in at least five markets by Q2, citing Germany as one example.

Yeung concluded by reiterating confidence in IM8’s trajectory and the company’s long-term operating leverage, pointing to scale benefits and potential margin expansion over time as key factors toward the Q4 2027 adjusted EBITDA profitability target.

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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