Prenetics Global Limited

On a continuing operating basis, Q1 2026 total revenue was $36 million, up approximately 334% year over year from $8.3 million in Q1 2025. IM8 contributed $33.8 million and CircleDNA contributed $2.2 million. Gross profit was $23.3 million, up approximately 315% year over year; consolidated gross margin was 64.8%, and IM8 gross margin was 64.3% versus 16.3% in Q4 2025 and 59.6% a year ago. Loss from operations was $8.9 million, and adjusted EBITDA loss was $5.6 million. Management raised full-year 2026 IM8 revenue guidance to $190 million-$210 million from $180 million-$200 million, and Q2 total revenue guidance to $46 million-$48 million with IM8 at $44 million-$46 million. They also said the three Q4 launches in hydration, creatine, and kids gummies are excluded from guidance.

Danny Yeung framed the quarter as evidence that Prenetics has become a different company, now anchored by IM8 and recurring consumer revenue rather than diagnostics. He emphasized the scale-up from zero revenue 17 months ago to shipping in 43 countries and tracking to roughly $186 million in annualized recurring revenue based on May IM8 revenue. His tone was highly confident and expansive, pointing to international subscription rollout, improved retention, athlete partnerships, RCT-backed science, and AI-driven marketing as durable moats.

Stephen Lo focused on the reported numbers, noting revenue of $36 million, gross profit of $23.3 million, consolidated gross margin of 64.8%, and an adjusted EBITDA loss of $5.6 million. He said the gross margin improvement at IM8 to 64.3% from 16.3% in Q4 was driven by scale efficiencies, better supplier terms, product mix, and logistics optimization, and he expects those efficiencies to continue through 2026. On the balance sheet, he cited $56 million of cash and cash equivalents at quarter-end, no debt, $34.8 million in Bitcoin, and about $15 million in current financial assets, then said the company sold its 510 Bitcoin for $41.3 million, bringing estimated financial resources to about $147 million. He also confirmed roughly $19 million of the $40 million buyback authorization had been used, with 968,000 shares repurchased.

Analysts focused on customer acquisition efficiency, the slower customer-order count versus prior quarter, April-May acceleration, TikTok, and the lack of updated EBITDA guidance. Management said spend remained concentrated on Meta, with only small test budgets on TikTok, AppLovin, and YouTube, and said they expect those channels to unlock additional growth later in the year. On the order-count decline, Danny said it reflected a deliberate shift to quarterly subscriptions, which reduced order frequency but increased servings and retention; he added quarterly subscribers have about 10% higher retention than monthly subscribers in the first four months. In response to questions on upside, management pointed to new channels, stronger Meta scaling, and Q4 product launches, but said the 2026 revenue guidance is still conservative and the EBITDA guide remains unchanged at $15 million-$20 million.