Prenetics Reports Record Q4 and FY2025 Revenue; Growth Guidelines for 2026
Prenetics Global Limited (NASDAQ: PRE), a life sciences company, reported record financial results for the fourth quarter and full fiscal year 2025. The company achieved a turnaround in revenue, supported by the rapid scaling of its new consumer health product and the completion of a multi-stage cash flow strategy.
After the release, management highlighted a clear path to profitability, supported by a strong balance sheet and zero debt. The company’s focus has completely shifted to the nutrition and longevity markets after exiting non-core clinical genomics and low-income business units.
Drivers of Key Changes and Key Growth
Key to the company’s performance in 2025 was the launch of IM8, a premium health brand co-founded by David Beckham. In its first year, the brand reached an average annual revenue (ARR) of more than $120 million based on December 2025 performance.
To drive efficiencies, Prenetics completed several key divestitures during the fiscal year and early 2026:
ACT Genomics: Sold in October 2025 for $72 million, making $46 million in proceeds.
Europe: Postponed to January 2026 to offset lower margin.
Understanding: Sold the remaining 35% equity to Tencent in February 2026 for $70 million.
This transforms Prenetics into a “pure play” consumer health leader, focusing resources on the high 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 $15.9 million in 2024.
The company has also shown significant improvement in profitability metrics, although it remains in a loss-making position as it grows.
Quarterly and annual key financial metrics (US$ Millions)
| Metric | Q4 2025 | Q4 2024 | YY Switch | FY 2025 | FY 2024 | YY Switch |
| Net Income | $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 gross margin for the year decreased slightly due to the early stages of scaling new products, the fourth quarter margin returned to 59.5%. The improvement in Adjusted EBITDA reflects an increase in operating margin as the company moves toward its EBITDA profitability goal for the quarter ending in 2027.
Area Efficiency and Unit Economy
The company’s growth has been diversified around the world, with more than 60% of its revenue generated outside of the United States.
United States: $23.8 million (39.7%)
In Canada: $8.8 million (14.7%)
United Kingdom: $7.7 million (12.8%)
Australia: $3.2 million (5.3%)
The unit economics of the IM8 product remained strong, with a 24-month projected customer acquisition cost (LTV:CAC) ratio of nearly 3x. The company reported a shift to quarterly subscription plans, which now account for 35% to 55% of the mix across various product lines, improving cash flow up front.
Balance Sheet and Executive Commentary
As of February 15, 2026, Prenetics maintained a strong cash position of $171.1 million. This includes $99.3 million in cash and currencies, and 510 BTC worth $35.2 million.
CEO and Co-Founder, Danny Yeung, said the company has successfully transformed into a fast-growing consumer health leader. Yeung noted that with the IM8 brand, the company is focused on building a long-term business that uses science to improve consumer health.
Outlook and plan for 2026
Management issued guidance for fiscal year 2026, pointing to continued momentum:
Income direction: $180 million – $200 million, representing nearly 100% growth by 2025.
Gross margin: It is expected to stabilize at about 60%.
Strategic growth drivers for next year include the launch of new marketing channels such as TikTok and YouTube, regional website localization, and the launch of new “Project Alpha” and “Project Beta” designs in the fourth quarter of 2026.
Reasons to Pass PRE
- Still missing: FY2025 Adjusted EBITDA ($13.0M); Q4 Adjusted EBITDA of ($2.3M).
- The benefit timeline has been extended: Targeting only quarterly EBITDA profit at the end of 2027.
- Full year margin compression: FY2025 gross margin declined by 500 bps year-on-year to 53%.
- High reliance on new product: Growth driven primarily by IM8 in its first year of launch.
- Risks of use in increasing consumer productivity: Rapid expansion and new product releases (“Project Alpha” and “Project Beta”) increase operational risk.
- Depending on the marketing channels: More focus on TikTok and YouTube for growth may increase the flexibility of customer acquisition.
- Risk of concentration of income: A strategic shift in the “pure play” consumer health model reduces diversity after segmentation.
- Exposure to discretionary use: Premium nutrition and longevity products tied to consumer demand cycles.
- Crypto asset exposure: The balance includes 510 BTC ($35.2M), introducing the risk of price volatility.
- Strong growth guidance for 2026: Target revenue of $180M–$200M (~100% growth) may increase leverage risk.
