Prenetics(US:PRE)2026-02-18 16:00Financial Data and Key Metrics Changes - Prenetics achieved record revenue of $92.4 million for the full year 2025, representing a 480% increase year-over-year [4] - Q4 revenue surged 457% year-over-year to $36.6 million, with a 55% sequential increase from Q3 [13] - Gross profit for Q4 grew over 800% year-over-year to $21.7 million, with a consolidated gross margin of 59% [13] - Adjusted EBITDA loss for Q4 was $2.3 million, a 70.4% improvement from the same period in the prior year [13] - Full year adjusted EBITDA loss improved by 27% to $13 million [14] Business Line Data and Key Metrics Changes - IM8 was the primary driver of revenue, generating $60.1 million for the full year 2025 at a gross margin of 63% [14] - IM8 reached a $120 million annualized revenue run rate within its first year, with Q4 revenue from IM8 at $27.4 million [4][9] - The average order value for new customers increased from $110 in 2025 to approximately $233 in early 2026 [11] Market Data and Key Metrics Changes - 40% of IM8's revenues came from the US, while 60% came from international markets across 30 different countries [10] - The company plans to localize its website in at least five different markets by Q2 2026, expecting a revenue uplift of 10%-15% in local markets [46][47] Company Strategy and Development Direction - Prenetics completed a strategic pivot to focus solely on consumer health by divesting non-core assets, enhancing its margin profile and financial position [5][6] - The company aims to achieve adjusted EBITDA profitability by Q4 2027, supported by strong unit economics and significant operating leverage [5][14] - Two new products are expected to launch by the end of Q4 2026, targeting large total addressable markets [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of IM8, highlighting strong momentum and a clear path to becoming a billion-dollar global brand [16] - The company anticipates continued revenue growth driven primarily by customer acquisition, with significant opportunities in the US and international markets [44] Other Important Information - Prenetics has a total liquidity of approximately $171 million with zero debt, providing ample runway for investment in IM8's global expansion [7] - The company has ceased all Bitcoin purchases and will not engage in any future crypto purchases, holding 510 BTC for financial flexibility [7][8] Q&A Session Summary Question: Reasoning behind the 90-day offering - Management indicated that the quarterly subscription option was well-received by consumers, providing benefits for both sides, including upfront payment and reduced logistics costs [20][21] Question: Timing and characteristics of new product launches - Two new SKUs are planned for release by the end of Q4 2026, focusing on health and performance supplements in large markets [25] Question: Trends observed in January and guidance for IM8 - Management noted continued momentum in January, with new products not included in the revenue guidance of $180 million-$200 million for 2026 [26][27] Question: Customer acquisition costs and lifetime values - Customer acquisition costs are approximately $130, with a payback period of 3.4 months, and the average order value has increased significantly [32][33] Question: Use of AI in marketing - The company utilizes AI for digital marketing, generating a high volume of ads and optimizing performance based on algorithmic feedback [34][35] Question: Strategic M&A strategy - The focus remains on organic growth, with openness to strategic M&A opportunities if they align with the company's goals [38] Question: Revenue growth sources and localization impact - Most growth is expected from new customer acquisition, with localization efforts anticipated to yield a 10%-15% revenue increase in targeted markets [44][46]