PRE — Prenetics Global Limited

Summary of Prenetics Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total revenue for Q1 2026 was $36 million, a 334% increase year-over-year from $8.3 million in Q1 2025.
• IM8 contributed $33.8 million, marking a nearly 6x year-over-year increase and a 23% sequential growth from Q4 2025.
• Gross profit reached $23.3 million, up 315% year-over-year, with a consolidated gross margin of 64.8%.
• Active subscribers grew to 82,000, with 93% of IM8 revenue derived from subscriptions.
• Loss from operations was $8.9 million, compared to $6 million in Q1 2025, while adjusted EBITDA loss was $5.6 million, slightly up from $4.5 million year-over-year.
• Cash and cash equivalents at the end of the quarter stood at $56 million, with an estimated total of $147 million in financial resources following the sale of Bitcoin.

2. Strategic Updates and Business Highlights:

• Prenetics has transitioned from a diagnostics and genome testing company to a consumer health company focused on IM8, emphasizing recurring subscription revenue and global distribution.
• The company completed the international rollout of quarterly subscriptions, which significantly improved average order value from $110 in 2025 to $240 in Q1 2026.
• Three new product launches are planned for Q4 2026: hydration, creatine, and kids' gummies, which are expected to enhance customer lifetime value.
• Partnerships with high-profile athletes and teams, including David Beckham and Inter Miami CF, are designed to strengthen brand credibility and market presence.

3. Forward Guidance and Outlook:

• Prenetics raised its full-year 2026 revenue guidance for IM8 to $190 million-$210 million, up from $180 million-$200 million.
• For Q2 2026, the company expects total revenue of $46 million-$48 million, with IM8 contributing $44 million-$46 million, indicating approximately 33% sequential growth.
• The company is optimistic about expanding its marketing channels beyond Meta to include TikTok, YouTube, and AppLovin, aiming to enhance customer acquisition efficiency.

4. Bad News, Challenges, or Points of Concern:

• The company reported a decline in total customer orders by 4% quarter-over-quarter, attributed to a strategic shift towards quarterly subscriptions rather than monthly orders.
• The adjusted EBITDA guidance remains unchanged, indicating ongoing operational losses as the company invests heavily in marketing and growth initiatives.
• There are concerns regarding the sustainability of growth rates and whether the current momentum can be maintained in the long term.

5. Notable Q&A Insights:

• Management clarified that the decrease in customer orders was intentional due to the shift to quarterly subscriptions, which resulted in an increase in actual servings delivered.
• The company is actively testing and diversifying its marketing spend, with plans to ramp up efforts on TikTok, where they currently have about 500 affiliates.
• The management team expressed confidence in the potential of new product launches and the overall growth trajectory, citing strong cohort data and customer retention rates as indicators of success.
• The randomized controlled trials for gut health and longevity were highlighted as a significant investment in scientific validation, which is rare in the supplement industry.

Overall, Prenetics demonstrated strong growth in Q1 2026, with a clear strategic focus on expanding its consumer health brand, although challenges related to customer order metrics and ongoing operational losses remain.