Prenetics Global Limited

Q2 total revenue was $46.5 million, up 29% quarter over quarter and roughly 3.9x year over year. IM8 revenue was $45 million, up 33% sequentially, and gross margin was 65%, about 3 points better than the same period last year. Gross profit was $30.2 million; fixed operating costs were $8.8 million, or 19% of sales; contribution profit was $21.4 million, or 46% of sales; adjusted EBITDA was negative $19 million; and net loss was $9 million, or $0.52 per share, versus $0.94 a share a year ago. For July, preliminary results showed $21.4 million of total revenue, 64% gross margin, $10.4 million of contribution profit, and adjusted EBITDA loss of $2.4 million. Management raised full-year 2026 revenue guidance to $220 million-$230 million, with IM8 at $215 million-$222 million, and said Q3 revenue guidance is $61.5 million-$62.5 million for IM8 or $63 million-$64 million for Prenetics parent; second-half adjusted EBITDA loss is expected to improve to negative $8 million to negative $12 million.

Danny framed the quarter as proof that the brand and economics are crossing an important threshold: the business reached positive consolidated adjusted free cash flow in July and is now expected to turn positive in Q3. He emphasized that IM8’s growth is being driven by strong cohorts, recurring subscribers, and a brand that is expanding into new categories like hydration and gummies, with more products still ahead. His tone was highly confident and promotional, but he repeatedly tied that confidence to reported cohort data, retention, and cash-flow improvement.

Brian Rosin focused on the quarter’s financial leverage and the mechanics behind the model. He said Q2 revenue was $46.5 million, gross profit $30.2 million at 65% gross margin, contribution profit $21.4 million, and adjusted EBITDA negative $19 million; he also noted July revenue of $21.4 million, gross margin of 64%, and adjusted EBITDA loss of $2.4 million. He highlighted $109.4 million of cash and current financial assets, $40 million of share buybacks in the first half, 15.2 million shares outstanding and 19.2 million fully diluted shares including warrants, and said General Catalyst funding will finance 70% of acquisition marketing spend. He also said Q3 and the second half should see EBITDA margin improvement from gross margin, operating leverage, and more efficient marketing.

Analysts focused on second-half marketing spend, gross margin sustainability, the value of the clinical trials, and how quickly new categories can be launched. Management said second-half acquisition spending should stay around a similar percentage of revenue as Q2, perhaps slightly better, but not as low as July, because they are not assuming July’s unusually strong CAC efficiency will persist. On gross margin, Brian said quarterly mix should help and that scale should bring additional gains from supply chain, logistics, and manufacturing costs. Danny said new categories typically take 12 to 18 months or longer because they want clinical validation and NSF certification, and he said the company is mostly building in-house rather than buying, though it will consider strategic opportunities.