Summary of Prenetics Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $36.6 million, a 457% increase year-over-year and a 55% sequential increase from Q3.

Full Year Revenue: $92.4 million, up approximately 480% from 2024.

Q4 Gross Profit: $21.7 million with a gross margin of 59%, representing an 804% increase year-over-year.

Full Year Gross Profit: $48.9 million, a 428% increase.

Adjusted EBITDA Loss: Q4 loss of $2.3 million (70.4% improvement year-over-year) and a full-year loss of $13 million (27% improvement).

IM8 Revenue: Contributed $27.4 million in Q4 and $60.1 million for the full year, with a gross margin of 63%.

2Strategic Updates and Business Highlights

Transformation: Prenetics completed a strategic pivot to focus solely on consumer health, divesting non-core assets, including ACT Genomics for $72 million and a stake in Insighta for $70 million.

IM8 Launch: The premium health brand co-founded with David Beckham achieved a $120 million annualized revenue run rate within its first year, with significant international sales (40% U.S., 60% international).

Customer Acquisition: The introduction of quarterly subscriptions has doubled the average order value from $110 to $233, enhancing cash flow and customer retention.

Research Coverage: Initiated by ROTH Capital and Sidoti & Company, both with buy ratings and price targets of $36 and $30, respectively.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected IM8 revenue of $180 million to $200 million, representing nearly 300% year-over-year growth.

Gross Margin Target: Approximately 60% for full-year 2026.

Adjusted EBITDA Loss Guidance: Projected loss of $16 million to $20 million for 2026, with a path to profitability by Q4 2027.

4Bad News, Challenges, or Points of Concern

Adjusted EBITDA Loss: Despite improvements, the company still reported a significant adjusted EBITDA loss, indicating ongoing investment needs.

Customer Acquisition Costs (CAC): While CAC has remained stable, the increase in average order value suggests a potential risk if customer acquisition costs rise disproportionately in the future.

Market Competition: The company faces competitive pressures in the health supplement market, particularly with upcoming product launches from competitors.

5Notable Q&A Insights

Customer Acquisition Strategy: The company emphasized a focus on new customer acquisition, with significant potential for growth in untapped markets.

AI Utilization: Prenetics is leveraging AI for digital marketing, optimizing ad performance, and enhancing customer engagement.

Product Launches: Two new SKUs are expected by the end of Q4 2026, targeting large addressable markets, but these are not included in the current revenue guidance.

Localization Efforts: Plans to localize websites in five markets are anticipated to boost revenue by 10-15% in those regions. Overall, Prenetics is positioned for significant growth driven by its IM8 brand, but it must navigate ongoing losses and competitive pressures while executing its strategic initiatives.