rewrite this title Our differentiation is validated by strong, sustainable unit economics: Prenetics CEO | AlphaStreet

Prenetics Global Limited (NASDAQ: PRE), headquartered in Hong Kong, is a health sciences company active in genomics, diagnostics, and consumer health. In an email conversation with AlphaStreet, Prenetics’ CEO Danny Yeung reflected on the company’s evolution and outlined its growth strategy.

In a crowded genomics and diagnostics space, what differentiates Prenetics’ technology and offerings?

We have decisively transformed from the clinical diagnostics sector to pioneer a unique, direct-to-consumer health ecosystem. The recent completion of our $72 million exit from ACT Genomics was the final, pivotal step in this evolution, enabling us to dedicate our full resources to our high-growth consumer health brands. The cornerstone of our strategy is IM8, which is on track to become one of the fastest-growing supplement brands in industry history, projected to achieve a $100 million annualized revenue run-rate (ARR) within its first year.

This is not merely another supplement brand; the phenomenal growth is a testament to a disruptive model that deeply resonates with consumers. This is supported by an integrated ecosystem that includes CircleDNA, our leading direct-to-consumer DNA test. This combination allows us to offer a holistic consumer journey—from genetic insights to premium supplements. Furthermore, our differentiation is validated by exceptionally strong and sustainable unit economics. IM8 has demonstrated a customer lifetime value to acquisition cost (LTV/CAC) ratio of 4.8x, a subscription rate exceeding 80%, and a gross margin of 60%. This financial discipline and customer loyalty, combined with the powerful brand recognition fostered by our partnership with David Beckham and global ambassadors like Aryna Sabalenka, fundamentally sets us apart from any competition.

What’s your long-term vision for Prenetics in preventive healthcare?

We want consumers to take complete control of their health and wellness journey. We are moving beyond the traditional reactive model of healthcare to create a future where individuals are proactive in enhancing their life’s vitality and resilience through personalized, science-backed solutions. This vision is centered on building IM8 into one of the world’s most trusted and accessible health and wellness brands.

Having already delivered over 10 million servings and positively impacted hundreds of thousands of lives, IM8 represents our commitment to making high-quality nutrition accessible to consumers globally. Our approach with IM8 is to combine rigorous scientific formulation with exceptional customer experience, ensuring that preventive healthcare becomes not just effective but also convenient and sustainable for everyday consumers. This focus allows us to scale our impact while maintaining the quality that sets IM8 apart in the crowded wellness market.

What are the biggest challenges in scaling the company globally?

Our strategy proactively addresses the most significant hurdles, such as market penetration and operational efficiency, through decisive action and proven execution. For instance, customer acquisition and market penetration in new territories can be complex and costly. However, IM8’s remarkable growth, with a compound annual growth rate exceeding 2,400% in its first nine months, demonstrates a highly efficient and scalable customer acquisition engine.

Our model, which leverages sophisticated performance marketing strategies and maintains a customer acquisition cost of just $104, has proven to be incredibly effective. This gives us a clear and repeatable playbook for entering new markets. We also continuously optimize our logistics costs through strategic partnerships, bulk shipping arrangements, and automated fulfilment processes. Having already processed over 350,000 customer purchases, we have refined our operations to achieve cost efficiencies that improve our unit economics while maintaining fast delivery times. Our debt-free balance sheet, strong cash position with more than $90m in cash and Bitcoin provides us with the financial flexibility to invest in these operational optimizations without compromising our growth trajectory.

How close is the company to achieving sustained profitability, and what key levers will get you there?

We communicated our timeline to achieve break-even in the first quarter of 2026. The primary driver is the exponential growth and compelling unit economics of our flagship consumer brand, IM8. With a clear trajectory to surpass $100 million in Annual Recurring Revenue and first-half 2025 revenue growth of 452%, IM8 is our core revenue engine. More importantly, this is high-quality, sustainable revenue. The brand’s 56% gross margin, combined with an 80%+ subscription rate, provides a strong foundation of high-margin, recurring revenue that is critical for long-term profitability. Another key lever is our disciplined operational efficiency.

Our LTV/CAC ratio of 4.8x signifies that we are acquiring high-value, loyal customers in a highly profitable manner. We are further optimizing our customer acquisition by localizing our advertising campaigns, moving beyond English-only content to better resonate with diverse global markets and improve conversion rates. Furthermore, our strategic decision to divest from the clinical diagnostics sector has streamlined our operations, eliminating a source of cash burn and allowing us to focus our entire organization on the high-growth, high-margin consumer health segment. This focus significantly accelerates our path to profitability. These levers are supported by a debt-free balance sheet and a strong cash position, which enable us to execute our growth strategy from a position of financial strength, ensuring our journey to profitability is both rapid and sustainable.

What strategic advantage does Prenetics see in holding Bitcoin as part of its treasury and the latest Bitcoin-per-day strategy?

At Prenetics, our Bitcoin strategy is rooted in a long-term conviction about the future of sound money and financial sovereignty. We view Bitcoin as the world’s most secure, decentralized, and scarce asset — one that serves as a strategic hedge against fiat currency debasement and global macro uncertainty. Since initiating our Bitcoin accumulation program in June, we’ve built holdings of 255 BTC, now valued at over US$31 million, representing unrealized gains of approximately US$3.8 million. With more than US$60 million in cash and zero debt, we maintain one of the strongest balance sheets in our sector.

Our ongoing purchase of 1 BTC per day reflects our disciplined, programmatic approach to building a generational treasury asset. We plan to continue this strategy through the remainder of the year and are evaluating opportunities to further increase the velocity of our Bitcoin acquisitions over time. Ultimately, our Bitcoin strategy is an extension of our core mission — to help people build both health and wealth for the long term. As we pioneer breakthroughs in longevity science through IM8 and strengthen our financial foundation through Bitcoin, we’re aligning two of the most powerful forces shaping the future: optimized health span and sound money.