Prenetics(US:PRE)2026-02-18 16:02Financial Data and Key Metrics Changes - The company achieved record revenue of $92.4 million for the full year 2025, representing a 480% increase year-over-year [4][14] - Fourth quarter revenue surged 457% year-over-year to $36.6 million, with a 55% sequential increase from Q3 [13] - Gross profit in 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][14] - Full year adjusted EBITDA loss improved by 27% to $13 million [14] Business Line Data and Key Metrics Changes - IM8 was the clear driver of revenue, generating $60.1 million for the full year 2025 at a healthy 63% gross margin [14] - IM8 reached a $120 million annualized revenue run rate in its first year, with Q4 revenue of $27.4 million [4][9] - The average order value for new customers more than doubled from $110 in 2025 to approximately $233 in early 2026 [10] Market Data and Key Metrics Changes - 40% of IM8's revenues came from the US, with the remaining 60% 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 10%-15% revenue uplift in those markets [47] Company Strategy and Development Direction - The company completed a strategic pivot by divesting non-core assets to focus on becoming a pure-play consumer health leader [5][6] - The balance sheet is strong, with approximately $171 million in total liquidity and zero debt, allowing for investment in IM8's global expansion [8] - The company aims for adjusted EBITDA profitability by Q4 2027, supported by strong unit economics and significant operating leverage [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of IM8, with a revenue guidance of $180 million-$200 million for 2026, representing nearly 300% year-over-year growth [15] - The company is excited about launching two new products in Q4 2026, which are expected to enter large total addressable markets [16][26] Other Important Information - The company ceased all Bitcoin purchases as of December 4, 2025, and will not engage in any future Bitcoin or crypto purchases [8] - Research coverage has been initiated by Roth Capital Partners and Sidoti & Company, both with buy ratings and price targets of $36 and $30 respectively [12] Q&A Session Summary Question: Reasoning behind the 90-day offering - Management explained that the quarterly subscription option was well-received by consumers, providing savings and increasing average order value, which shortens the payback period for customer acquisition costs [20][21][22] Question: Timing and nature of new product launches - Two new SKUs are planned for release by the end of Q4 2026, focusing on health and performance supplements, targeting large total addressable markets [26] Question: Revenue guidance and trends - Management confirmed continued momentum in January and stated that new products are not included in the revenue guidance of $180 million-$200 million [27][28] 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 [33] Question: Use of AI in marketing - The company utilizes AI for digital marketing, rolling out numerous ads weekly and optimizing based on performance [34][35][36] Question: Strategic M&A strategy - The focus is on organic growth, but the company remains open to strategic M&A opportunities if they align with business goals [39] Question: Revenue growth sources - The majority of growth is expected from acquiring new customers, with significant potential in the US market [45][46]