Prenetics Global Limited Q4 FY2025 earnings call

2025 was a transformative year with divestment of noncore assets to focus on consumer health. IM8 co-founded with David Beckham had explosive growth, reaching a $120 million annualized revenue run rate in its first year. Leveraged AI in digital marketing with weekly rollout of 800 - 1,000 ads and algorithmic selection of winning ads. Plan to diversify marketing channels to include YouTube, podcasts, etc. In Q4 2026, 2 new products in the health and performance space will be launched.

In 2025, total revenue reached $92.4 million, a 480% year-over-year increase. In the fourth quarter, total revenue surged 457% year-over-year to $36.6 million, with IM8 contributing $27.4 million. For the full year 2025, IM8 generated $60.1 million in revenue with a 63% gross margin. In Q4 2025, gross profit grew over 800% year-over-year to $21.7 million with a consolidated gross margin of 59%. For 2026, IM8 revenue is expected to be approximately $180 million to $200 million, targeting a gross margin of approximately 60%, and full year 2026 adjusted EBITDA loss is expected to be approximately $16 million to $20 million with a goal of achieving adjusted EBITDA profitability by Q4 2027.

Expect IM8 revenue for full year 2026 to be approximately $180 million to $200 million, nearly 300% year-over-year growth. Target gross margin of approximately 60% in 2026. Full year 2026 adjusted EBITDA loss expected to be approximately $16 million to $20 million. Aim to achieve adjusted EBITDA profitability by Q4 2027. New products to be launched in Q4 2026 are not baked into the $180 million to $200 million revenue guidance for 2026.

Statements made on the call may include forward-looking information subject to risks and uncertainties that could cause actual results to differ materially from predictions. Need to review annual reports and other SEC filings for more complete discussion of risks.

Q: George Kelly with ROTH Capital Partners asked about the 90-day offering, timing of new product launches, and trends in January for guidance.

A: Danny Yeung responded on 90-day offering being a result of testing showing consumer preference, new products to be launched by end of 2026 Q4 in health and performance space, and continued momentum with new products not baked into 2026 guidance.

Q: Thomas Forte with Maxim Group asked about IM8's customer acquisition costs, LTV, AI use in digital marketing, and strategic M&A.

A: Danny Yeung discussed CAC payback period of 3.4 months, use of AI in rolling out ads and video with Aryna Sabalenka, and focus on organic growth initially with open attitude to strategic M&A.

Q: Alex Hantman with Sidoti & Company asked about 2026 growth sources, international revenue uplift from localization, and key factors for EBITDA profitability.

A: Danny Yeung stated majority growth from new customers, localization plans to increase revenue in international markets, and scale and margin leverage as key factors for achieving EBITDA profitability by 2027 Q4