Prenetics Global Q2 2026 Earnings Call: Complete Transcript

Prenetics Global (NASDAQ: PRE ) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

9x increase from the previous year. Strategically, the company is focusing on expanding its product line with new offerings in the hydration and gummies categories, backed by extensive clinical trials and scientific research. The company turned adjusted free cash flow positive in July for the first time, supported by $1 billion in growth financing from General Catalyst, which will fund future expansion and marketing efforts. Management expressed confidence in the company's trajectory, raising full-year revenue guidance to $220-230 million and projecting $400 million or more by 2027, citing strong customer retention and subscription growth.

The company emphasized its AI-driven operational efficiency, maintaining high revenue per employee with a workforce of around 70, and highlighted its commitment to clinical validation and scientific backing for its products. Full Transcript Danny Yeung, CEO Co-Founder Thank you, Shannon. Good morning everyone. Before anything else, thank you so much for being here.

This is actually the first live earnings video webcast we've done in our company's history. And from the numbers that are joining right now, it may be the largest group of our shareholders ever gathered in one place. So whether you manage a fund, hold a single share, or are simply here because you drink the sachet every morning, welcome. This is for you.

And here's why we're doing this this way. You know, our shareholders range from global institutions to people who found IM8 as customers and became shareholders. And we believe every one of them deserves the same depth of information at the same moment. This moment, where we've opened the book to everyone at once.

We can do that for a simple reason. We now have 20 months of data in every cohort, every month, every market, measured end to end. Enough history that numbers no longer need my adjectives, and I will say this plainly: I do not know of another company, publicly traded or private, that has shown its business in this level of detail in which we are showing you today. I just released a 40-page shareholder letter written to be read, not skimmed, and an additional 80-page investor deck that shows you this business the way I see it internally.

Every single cohort, every vintage, our full acquisition cost month by month, and even independent card data measuring our retention against every single brand in our category. In this stream you hear from us directly, and feel free to ask us anything at the end of this call. And the business compounding this fast deserves to be examined, not summarized. When the numbers are this good, transparency is a weapon.

And today if that number softened someday, you'll read it from us first in that letter. And one promise I want to make in the next half hour is I'm not going to be standing here and just reading you that letter. However, hopefully everyone here listening in can read it later today. What I owe you is a part of the document that cannot do: the story of what actually happened.

How a brand that did not exist two Decembers ago crossed last month a line most consumer companies never reach. But before I talk a single number, I want to show everyone what we're building. First, we made this video. Two minutes, please enjoy.

So with this $1 billion growth financing, we're able to test so much more, go into more channels, test new creatives, test new offline activations, partnerships. So this growth financing goes beyond just acquisition, but really for everything brand related and marketing. Yeah, I mean that was a highlight for the last 20 months, and it's quite amazing what we've been able to achieve. Right.

So Brian, if we get to the next slide, in December '24, we launched IM8. Our first month, on our first month on the market we did about 400,000 USD. And I want to tell you what we believed back then because it's written down, it was in our founding moment, before we even shipped a single sachet. We believed if we built the best product in the category, clinically studied, certified, customers wouldn't just buy it, they would stay.

And if they stayed, every dollar we spent finding them would come back with profit on top of it. And if that held, then one day the whole machine would cross the line, the point where growth stops consuming cash and starts producing it. We marked that line in the model on day one. Every decision we've made has pointed to it.

Last month we crossed it. In July, our consolidated adjusted free cash flow—and I want to be precise here because precision is the whole point of today—that measure includes the funding under our General Catalyst facility—turned positive for the first time in our history. It is, I believe, the single most important fact in the letter, in the deck, and in this stream. And I'll be quite honest with you, I did not believe we could get here so fast.

Twenty months. Most consumer brands take years. Many never arrive at all. Two things made it possible and they are connected.

Firstly, our cohorts came first—customers who stayed, who spent more, who pay back their acquisition costs in months. And these cohorts earned a second thing: $1 billion of a commitment from General Catalyst, committed after they spent months in our data—capital that now funds our growth. So our cash no longer came from. We expect Q3 to be our first positive quarter and we expect to stay positive from there.

And now the quarter itself—just to highlight in terms of what we've been able to achieve in Q2—and I want to frame this the only way results should ever be framed: against what we told you we would do earlier. So in May we guided publicly $46 to $48 million total revenue, $44 to $46 million for IM8. We reaffirmed those numbers in June. 9x from a year ago, with IM8 at $45 million, up 33% sequentially at a 65% gross margin.

Both numbers inside both ranges are six consecutive record quarter. We say what we'll do and then we do it. I want to own that pattern in front of you—and for the record—because this is the standard you should hold us to every quarter from here. And then July happened, as you can See from this chart-wise, this shows you our path from basically December of '24 to July last month, you know, starting at the 400,000.

I talked to you, and look where it ends. 9 million of revenue in one month. 3x of last July at an annualized running rate of roughly $251 million. And July just wasn't big.

It was our largest single-month customer cohort ever. We acquired 47,373 customers. And here's the part that I'm most proud of. We acquired that record cohort at a customer acquisition cost of about $239, down roughly 21% from our Q2.

So we are record customers falling to CAC—scaling brands never get both. You know, Brian in a few minutes will take the whole P&L apart and share all of the details on that. And the quarter delivered inside our own guidance, with a July like that behind it, changes what I can promise ahead. So today, for the first time, we are also raising our full-year total revenue guidance to 220 to 230 million, with IMA contributing 215 to 222 million.

Understand the nature of that number. The floor of that range is not hope. It's actually underwritten by the subscribers we already have. And we're also initiating something else today, the 2027 figures.

As we get close to the end of '26, '27, we're initiating 400 million or more. And there's three numbers that you should be thinking about now because they hold the whole story of this company. Last year, in our first full year of IMA, we achieved 60 million. In our second year, this year, we will achieve 220 million.

400 million plus expected in its third year. In the letter we put it in one way, and we'll say to you straight: we don't treat that trajectory as ambition; we treat it as arithmetic. We'll exit this year above a 300 million run rate before a single '27 customer walks in the door. Note, roughly 87% of our revenue is recurring—subscribers we already have out on retention curves measured across 20 consecutive cohorts.

Everyone behaving the same way. And nothing, nothing from the new products you will hear about today is in any of those numbers. So every launch is pure upside to the ARR figures I just gave you, and that's the promise. And now let me show you the machine underneath it.

I want to talk to you a few minutes about the brand that we are building because, again, in my experience as an entrepreneur, as an investor, I haven't seen anything like this, and I'm so grateful I'm able to live this every single day. It's something that numbers cannot, and something you can only see with your own eyes. And as you may know, I spend much of the year traveling throughout the whole world for IMA, and in every country I land in, the same thing always happens. People come up to me about IMA and get so happy.

It's not because they recognize me; it's because they recognize their sachets. I have athletes, surgeons, founders, CEOs—high performers who could buy anything—telling me, unprompted, what this product has done for them. In the time we've been around, we've now launched more than 100 brand events around the world. And the room keeps getting fuller, fuller.

You know, Dave and I talk about this all the time because it's the thing that we are proudest most of. Somewhere in the last 20 months, this stopped being a product people buy and became something people carry with them and ask each other about and hand to the people they care about the most. And I can tell you this on an earnings call for a hard commercial reason. A brand people trust travels.

It travels into new countries ahead of our marketing—it's why our acquisition cost is falling while our spend has doubled in Q2—and it travels into new products, where an audience that already believes in us is waiting for whatever we make next. And the pipeline as it stands—again, that's in the brand that we've been able to build and where we're headed next, right? Because everything you have seen is essentially a one-product family in one category. Next quarter, in Q4, we're going to launch IMA Hydration into a $37 billion market; in the first quarter of next year, our premium line of gummies into a $25 billion category.

And nothing launches without IMA-level clinical validation. And everything we make carries NSF Certified for Sport. And on the science behind that, we have three randomized, placebo-controlled clinical trials ongoing as we speak right now, including one at the Mayo Clinic. And Dr.

Don Musalan will take you inside them shortly. And I'll say only this: in a category built on marketing claims, we are building one on evidence. And next, I want everyone also to kind of understand that, you know, while Hydration and gummies are coming next, it's not the whole story, because I think what we've been able to build—this brand—is going to be able to do so much more. And look at this slide here.

We're talking about, again, sleep, cognition, recovery, women's health, men's health, sports, sports performance. When a customer hands out a sachet to someone they love, they are telling us they would trust us in any category where science and quality decide the winner. And that map is most of consumer health. Now let me be also equally clear about what this slide is not.

It's not a roadmap. I'm not announcing anything today. But the honest way to think about IMA is not just as a supplement company; it is a trusted global premium health brand, 20 months old, with most of its categories still ahead of it. And here's the question every operator in this audience is already asking: entering new categories normally takes armies—new teams, new overhead, margin walking out the door.

So let me show you why that math doesn't apply to us. So this is a chart of our AI-native organization, and it may be my favorite slide in the deck next to the adjusted cash flow slide. IMA is an AI-native organization from day one. We are roughly 70 people delivering this year's guided 220 to 230 million revenue—more revenue per employee than any scaled brand in this category.

And the gap widens as we grow. 9 times year over year with no proportional hiring. Fixed operating expenses actually fell 21% quarter over quarter. We doubled acquisition spend from Q1 to Q2 with the same number of team members.

That's not discipline for its own sake. It's what a company looks like when AI runs through creative, marketing, operations, finance from day one instead of being bolted on later. Most companies our size are hiring their way to scale. We are compounding our way there.

And the biggest partnership of this year is the one funding everything I just described. One month ago, General Catalyst committed $1 billion against our cohorts—the deepest diligence I've been through as a founder. Every single monthly cohort examined at a transaction level. Now, to walk you through where that number stands today, I'm going to hand it over to Brian, our CFO.

And Brian just joined us three months ago after that diligence process began. I'll say this plainly: bringing Brian on board is one of the best decisions we made this year. He came to see the machine, and he stayed to run the numbers on it. Brian, the floor is yours.

Stephen Lo, CFO Yeah, thanks, Danny. Thanks for that. Before we get into the quarter here, just a quick word on me, since it's probably the first time that some of you are hearing from me or seeing me. I've been a CFO in the CPG space for quite a long time.

IM8 is actually the eighth brand that I've been a part of in this category or adjacent categories. And so when I was first presented with the opportunity to join this business, I did what any good CFO would do. I diligenced it and evaluated it from roughly the same criteria that we're going to look at today. You kind of take a look at the past, the present, and the future.

You start by looking at financial statements. Those will give a good sense as to how the business has performed in the past, kind of near-term trends that have led to where it presents at that point in time. And then really any given last reported quarter is inherently a little bit in the past anyway. But those quarters are also a byproduct of a lot of the executional effort that's gone into the prior few quarters.

And so when you look at a financial statement, it's almost always like looking backwards. When you look at then the present, I think about this as cohort math and unit economics. When you look at those things, you can pretty predictably see where a brand will be in the coming, let's say, three to six quarters. It's pretty good line of sight as to how much the business is looking to grow.

And then it also tells you at the unit economic level where the business can scale and the opportunities that it can do so, and so those are always the areas that I look at next. Third, when you look out into the future, that's more around expansion opportunities, brand equity, brand strength, and where are the opportunities in the form of product, market, channel, where can the brand extend and where can it play? And so when I did this assessment of IM8, each part of that got more bullish than the last. The financials were strong, the unit economics and the cohort math quite strong.

And then the future, obviously with Danny's vision, the sky's the limit for this business. Today I'm going to take us through that same sort of arc. We'll look at the unit economics and the cohort math that's gone into the last few quarters. That'll give us good line of sight into the future in the form of our near-term guidance.

And then I'll let Danny talk more about the future, but I'll touch briefly on how that future is funded by, you know, a strong balance sheet and the General Catalyst financing partnership today. And so with that, let's get to the quarter. So I'm going to spend a decent amount of time here walking down the P&L because it's really important for everyone to level set on the presentation of this view and what we are going to hold ourselves to in the future. 5 million.

9 times bigger than a year ago. That leads us down to gross profit. 2 million gross profit at a 65% gross margin, which is about 3 full points better than the same period a year ago. 8 million, which is 19% of sales.

3 times greater than a year ago. A lot of additional leverage from this line, as you would expect. Danny mentioned the AI nativeness of this business. You would expect, as a business grows, that your operating costs as a percent of sales will continue to decline.

And that takes us down to contribution profit. Now there's a lot of brands that do contribution a little bit differently. I've seen many brands present contribution profit before G&A, before operating expenses, and I've never found that to be a very productive thing to do. Because when you really think about it, the operating costs are really what's there to drive the business currently.

You know, these costs are to drive the fixed base of current customer, current ad spend, current marketing team, and just the day-to-day operation of today.