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Prenetics Global Limited (NASDAQ: PRE), a health sciences company, reported record financial results for the fourth quarter and full fiscal year of 2025. The company achieved a transformational surge in revenue, underpinned by the rapid scaling of its new consumer health brand and the completion of a multi-stage strategic divestment program.
Following the release, management highlighted a clear path toward profitability, supported by a robust balance sheet and zero debt. The company’s focus has shifted entirely toward the premium nutrition and longevity markets after exiting its non-core clinical genomics and low-margin business units.
Strategic Transformation and Core Growth Drivers
The primary catalyst for the company’s 2025 performance was the launch of IM8, a premium health brand co-founded by David Beckham. In its first year, the brand reached an annualized revenue run-rate (ARR) exceeding $120 million based on December 2025 performance.
To streamline operations, Prenetics completed several key divestitures during the fiscal year and early 2026:
ACT Genomics: Sold in October 2025 for $72 million in cash, generating $46 million in net proceeds.
Europa: Divested in January 2026 to exit a low-margin segment.
Insighta: Sold the remaining 35% equity stake to Tencent in February 2026 for $70 million in cash.
These moves transitioned Prenetics into a “pure-play” consumer health leader, focusing resources on the high-margin IM8 and CircleDNA segments.
Financial Results: Fourth Quarter and Full Year 2025
For the fourth quarter ended December 31, 2025, Prenetics reported revenue of $36.6 million, a 455% increase compared to $6.6 million in the fourth quarter of 2024. Full-year revenue reached $92.4 million, representing 480% year-over-year growth from $15.9 million in 2024.
The company also demonstrated significant improvement in profitability metrics, though it remains in a net loss position as it scales.
Key Quarterly and Annual Financial Metrics (US$ Millions)
Metric
Q4 2025
Q4 2024
YoY Change
FY 2025
FY 2024
YoY Change
Total Revenue
$36.6
$6.6
+455%
$92.4
$15.9
+480%
Gross Profit
$21.7
$2.4
+804%
$48.9
$9.3
+428%
Gross Margin
59.5%
37%
+2,250 bps
53%
58%
-500 bps
Adj. EBITDA
($2.3)
($7.6)
+70%
($13.0)
($17.9)
+27%
While the full-year gross margin saw a slight decline due to the initial scaling phases of new products, the fourth-quarter margin recovered to 59.5%. The improvement in Adjusted EBITDA reflects increasing operating leverage as the company moves toward its goal of quarterly EBITDA profitability by the end of 2027.
Geographic Performance and Unit Economics
The company’s growth was internationally diversified, with over 60% of revenue generated outside the United States.
United States: $23.8 million (39.7%)
Canada: $8.8 million (14.7%)
United Kingdom: $7.7 million (12.8%)
Australia: $3.2 million (5.3%)
Unit economics for the IM8 brand remained strong, with a projected 24-month lifetime value to customer acquisition cost (LTV:CAC) ratio of approximately 3x. The company reported a shift toward quarterly subscription plans, which now account for 35% to 55% of the mix across various product lines, enhancing upfront cash flow.
Balance Sheet and Executive Commentary
As of February 15, 2026, Prenetics maintained a robust liquidity position of $171.1 million. This includes $99.3 million in cash and cash equivalents, as well as 510 BTC valued at $35.2 million.
Chief Executive Officer and Co-Founder, Danny Yeung, stated that the company has successfully transitioned into a high-growth consumer health leader. Yeung noted that with the IM8 brand, the company is focused on building a long-term enterprise that utilizes science to enhance consumer health.
2026 Outlook and Strategy
Management issued guidance for the fiscal year 2026, projecting continued momentum:
Revenue Guidance: $180 million – $200 million, representing roughly 100% growth over 2025.
Gross Margin: Expected to stabilize around 60%.
Strategic growth drivers for the coming year include the introduction of new marketing channels such as TikTok and YouTube, regional website localization, and the launch of new “Project Alpha” and “Project Beta” formulations in the fourth quarter of 2026.
Reasons to Pass on PRE
Still loss-making: FY2025 Adjusted EBITDA of ($13.0M); Q4 Adjusted EBITDA of ($2.3M).
Profitability timeline extended: Targeting quarterly EBITDA profitability only by end-2027.
Full-year margin compression: FY2025 gross margin declined 500 bps year over year to 53%.
Heavy reliance on a new brand: Growth primarily driven by IM8 in its first year of launch.
Execution risk in scaling consumer brand: Rapid expansion and new product rollouts (“Project Alpha” and “Project Beta”) add operational risk.
Dependence on marketing channels: Increased focus on TikTok and YouTube for growth may raise customer acquisition volatility.
Revenue concentration risk: Strategic shift to a “pure-play” consumer health model reduces diversification after divestitures.
Exposure to discretionary spending: Premium nutrition and longevity products tied to consumer demand cycles.
Crypto asset exposure: Balance sheet includes 510 BTC ($35.2M), introducing price volatility risk.
Aggressive 2026 growth guidance: Revenue target of $180M–$200M (~100% growth) may raise execution risk.
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