Prenetics Reports Zero Debt, $171.1M Liquidity and 457% Q4 Revenue Growth
Prenetics holds $171.1M in liquid assets and zero debt after realizing $69M from selling its 35% Tencent stake; its balance sheet also includes 510 BTC. IM8 drove Q4 revenue up 457% to $36.6M, generated $60.1M in 2025, hit a $120M run rate, and is forecast for $180–$200M in 2026 sales.
1. Balance Sheet Strength and Stake Sale
Prenetics completed the sale of its 35% stake to Tencent for $70 million, realizing $69 million in proceeds. It now holds $171.1 million in adjusted liquid assets, including 510 BTC on the balance sheet, and carries zero debt, enhancing financial flexibility for growth investments.
2. IM8 Brand Rapid Growth
Launched in early 2025, the IM8 premium health supplement brand achieved global diversification with 40% of revenue from the U.S. and 60% from 30 international markets. Management reports an 80% new-customer subscription rate and a 3.4-month payback period on customer acquisition costs, supporting scalable recurring revenue dynamics.
3. Q4 and Full-Year 2025 Financials
Q4 revenue surged 457% year-over-year to $36.6 million, driven by $27.4 million from IM8, and gross profit rose 800% to $21.7 million for a 59% margin. Full-year 2025 revenue reached $92.4 million, up 480%, with IM8 contributing $60.1 million at a 63% gross margin and a $13 million adjusted EBITDA loss, improved 27%.
4. 2026 Guidance and Profitability Roadmap
Prenetics reaffirmed 2026 guidance targeting $180–$200 million in IM8 sales with a roughly 60% gross margin and an adjusted EBITDA loss of $16–$20 million as marketing investment continues. Management aims to achieve adjusted EBITDA profitability by Q4 2027, supported by subscription shifts, higher average order values, new SKUs, and margin expansion initiatives.