Prenetics Global Limited Q1 FY2026 earnings call

Corporate Transformation

• Prenetics has transitioned from a 2022-era diagnostics and genome testing business to a global consumer health subscription company anchored by the IM8 brand, following the divestment of three non-core businesses (ACT Genomics, Europa, Insighta) to redeploy capital to IM8.
• 17 months after launch, IM8 now ships to 43 countries, delivers ~150,000 daily servings, and tracked to ~$186 million in annualized recurring revenue as of May 2026. Active IM8 subscribers reached 82,000 in Q1 2026, with 93% of IM8 revenue coming from subscriptions, and total Q1 servings grew 28% sequentially to 8.8 million.

Key Q1 Operational Milestone: Global Quarterly Subscription Rollout

• The global expansion of quarterly subscriptions (launched in the U.S. in Q4 2025) drove a 53% sequential increase in new customer average order value (AOV) to $240, up from $157 in Q4 2025 and $110 full-year 2025.
• New cohort performance has improved dramatically: January 2026 quarterly cohorts reached $587 in cumulative revenue per customer in just 4 months, compared to 12 months for January 2025 monthly cohorts to hit $549. Current 2026 cohorts track to a 12-month lifetime revenue of $900 to $1,100, up from $571 for mature cohorts, with 81% of mature cohort revenue coming from repeat purchases.

Sustainable Growth Moats

• Equity-aligned athlete partnerships: IM8 has signed co-founder David Beckham, world No. 1 tennis player Aryna Sabalenka, Formula 1 driver Ollie Barron, two-time NBA MVP Giannis Antetokounmpo, and an official partnership with Inter Miami (including equity for Inter Miami, NIL rights with core players including Lionel Messi, and an on-site nutrition center). All partners hold equity in Prenetics, use the product daily, and partnership costs are not material relative to revenue, creating a moat unavailable to smaller challenger brands.
• Science-backed differentiation: IM8 has a scientific advisory board with experts from Mayo Clinic, Cedars-Sinai, and NASA. It has completed a randomized controlled trial (RCT) for its flagship product, with two new RCTs for gut health and longevity products on track to complete by the end of 2026. RCT clinical evidence for finished supplement products is extremely rare in the industry.
• AI-driven scalable marketing engine: The company now runs ~3,000 live Meta ads (a 60x increase from launch) and releases 600 new ads weekly via an AI testing and iteration process that outpaces legacy DTC competitors. The company is actively diversifying its channel mix away from Meta, targeting a shift from 85% Meta to ~55% Meta by the end of 2026, with expansion into TikTok, YouTube, and Applovin to reach new audiences at improved unit economics.

Upcoming Product Roadmap

• Three new large-category products are scheduled to launch in Q4 2026: hydration, creatine, and kids gummies, none of which are included in 2026 guidance and represent pure upside. Each targets a large, growing market and leverages IM8's existing strengths: hydration (a $37 billion global category growing 8% annually) leverages the company's unrivaled athlete credibility; creatine (a $1.3 billion global category growing 26% annually) is formulated for both physical and mental performance, tapping into the category's expanding mainstream consumer base; kids gummies (a $3.6 billion global category growing 8% annually) is a clean, zero-sugar, science-backed offering that leverages existing parental trust among IM8's customer base, most of whom are already parents. Internal modeling estimates these three products add $178 to $378 in incremental second-year revenue per existing customer, increasing overall customer lifetime value.

Balance Sheet and Capital Allocation

• Subsequent to quarter-end, Prenetics sold its entire 510 Bitcoin position for $41.3 million in cash proceeds, and the board adopted a new policy prohibiting future purchases of Bitcoin or other digital assets, with all capital now focused on IM8 growth.
• Total available financial resources are approximately $147 million, which will be deployed to: potential expansion of the authorized share repurchase program, accelerated IM8 marketing spend, the Q4 product pipeline, and continued international expansion. As of Q1, the company has deployed $19 million of the authorized $40 million share repurchase program, and senior management has personally invested an additional $2.75 million in open market share purchases.
• The company has no debt on its balance sheet.

On a continuing operations basis for Q1 2026, total company revenue was $36 million, up ~333% year-over-year. The IM8 (iMate) consumer health subscription supplement segment contributed $33.8 million in revenue, representing 93.9% of total Q1 revenue. IM8 revenue grew nearly 6x year-over-year and increased 23% sequentially from Q4 2025. IM8's gross margin reached 64%, a 400 basis point sequential improvement, driven by scale manufacturing efficiencies, favorable supplier negotiations, product mix shifts to high-margin subscriptions, packaging optimizations, and improved fulfillment density across 43 global markets. The remaining legacy Circuit Diagnostics/DNA segment contributed $2.2 million in revenue, equal to 6.1% of total Q1 revenue. Consolidated company gross profit was $23.3 million, up 315% year-over-year, with a consolidated gross margin of 64.8%.

• Full-year 2026 IM8 revenue guidance was raised to $190 million to $210 million, an upward revision from the prior guidance range of $180 million to $200 million.
• Q2 2026 total company revenue guidance is set at $46 million to $48 million, with IM8 expected to contribute $44 million to $46 million, representing ~33% sequential quarterly IM8 revenue growth from Q1 2026's $33.8 million.
• The upcoming Q4 2026 product launches (hydration, creatine, kids gummies) are not included in 2026 guidance and represent incremental upside.
• Adjusted EBITDA guidance for full-year 2026 is maintained at the prior range of a $15 million to $20 million loss, which keeps the adjusted EBITDA loss roughly flat year-over-year despite triple-digit revenue growth, indicating highly capital-efficient expansion.

• Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from management's current expectations, as detailed in Prenetics' SEC filings. Uncertainty remains for new channel expansion into TikTok, YouTube, and Applovin, as the company is still in the testing phase and has not yet generated scalable revenue from these platforms.
• New product launches carry inherent execution and market adoption risk, even with the company's proven launch playbook, as they have not yet been brought to market.
• Higher-than-expected marketing costs to scale new channels or new products could pressure profitability beyond current guidance expectations.

Q: How has customer acquisition efficiency trended, and how will channel diversification improve efficiency? / A: Currently 85% of customer acquisition spend goes to Meta, with 15% to Google. The company is already testing small daily spends of $3,000 to $5,000 on TikTok, Applovin, and YouTube to test and iterate before scaling. Management expects unlocking new audiences on these new channels will drive additional efficient growth by the end of 2026.

Q: Why were total customer orders down 4% quarter-over-quarter, and has the metric rebounded in Q2? / A: The decline is entirely due to the shift to quarterly subscriptions: customers now buy three months of product in one order, so total order counts fall even as total servings (the more meaningful consumption metric) increase. Q1 servings grew more than 20% quarter-over-quarter, so the order count decline is not a negative indicator. Growth has continued into Q2 aligned with overall revenue acceleration.

Q: What drove the sharp revenue acceleration in April and May 2026, and what is the status of TikTok expansion? / A: Acceleration came from three factors: the AI-driven creative engine scaled to 3,000 live Meta ads with 600 to 800 new weekly ads, improving spend efficiency; new athlete and Inter Miami partnership announcements drove strong brand halo effects; and quarterly subscribers showed a 10% higher 4-month retention rate than monthly subscribers, boosting recurring revenue. For TikTok, the company currently has ~500 affiliates and spends $3,000 to $5,000 daily on testing, targets 1,000 affiliates by end of the current month, and expects significant scaling within 3 to 6 months, with full platform support from TikTok leadership.

Q: What sources of upside exist beyond the upper end of the 2026 guidance, and can you share details on the upcoming new RCTs? / A: Upside beyond guidance includes new channel expansion, continued scaling on Meta, the upcoming Q4 product launches, and long-term expansion into large untapped markets like China and India. For the new RCTs, 120 participants will be enrolled for the gut health trial and 180 for the longevity trial, with pre- and post-product biomarker testing over 8 to 12 weeks, starting recruitment within 30 to 45 days. Unlike most supplement brands that only test ingredients, Prenetics is testing the finished product, demonstrating strong conviction in product efficacy.