Prenetics Global Limited

Greetings, and welcome to the Prenetics First Quarter 2026 Earnings Conference Call. As a reminder, this call is being recorded. Your hosts today are Danny Young, Chief Executive Officer and Co-Founder, and Brian Rosen, CFO of IM8, and Stephen Lowe, Chief Financial Officer. Mr. Young and Mr. Lowe will present results of operations for the first quarter ended March 31, 2026, and provide a corporate update. A press release detailing these results was released today and is available on the Investor Relations section of our company's website, www.prenetics.com. Before we begin the formal presentation, I'd like to remind everyone that statements made on this call and webcasts may include predictions, estimates, and other information that might be considered forward-looking. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act, of 1995. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and are not a guarantee of future performance. Your caution not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we're not obligating ourselves to revise or publicly release the results of any revision of these forward-looking statements in light of new information or future events. Throughout today's discussion, we'll attempt to present some important factors relating to our business that may affect our predictions. Unless otherwise specified, all information provided on this call as of today's date, and we undertake no duty to update such information. For a complete discussion of these factors and other risks, you should review our annual reports with our other documents, and disclosures on file with the Securities and Exchange Commission at www.scc.gov. At this time, I'd like to turn the call over to Prenetics Chief Executive Officer Danny Young. Please go ahead, sir.

Great. Thank you, and good morning, everyone, dialing in from New York today. Thank you so much for joining us. Alongside the earnings release this morning, I encourage everyone to review our latest investor presentation, which is on our website at Prenetics.com. There's a lot of new cohort detail in there worth looking through. I just want to start out by saying, 17 months ago, we launched iMate with a single product, no customers, and zero revenue. Today, we are shipping to 43 countries, delivering approximately 150,000 servings every single day, and we are tracking to reach roughly $186 million in annualized recurring revenue based on iMate's monthly revenue in May. This is what product market fit looks like at scale. Q1 was our best quarter as a consumer health company, and April and May are tracking better still. I want us to frame three things this morning, the company we have become, the engine driving the numbers, and what's ahead. First, the company. The Prenetics that went public in 2022 was a diagnostics and genome testing business built around laboratory testing, a very different revenue model a different growth profile. The Prenetics you see today is something entirely different. We are now a care play consumer health company anchored by IM8. Recurring subscription revenue, expanding gross margins, global distribution across 43 countries, operating disciplines built around unit economics, Over the past nine months, we've also divested three businesses, ACT Genomics, Europa, and Insighta, redeploying capital into our highest conviction growth asset. The brand, the team, the science, and the channels have all been rebuilt. When you evaluate our results, evaluate them through that lens. This is, in every meaningful sense, a new company. In regard to Q1, on a continuing operational basis, Total revenue was $36 million, up approximately 333% year over year. IMA contributed $33.8 million, nearly 6x year over year, and up 23% sequentially over an already strong Q4. IMA gross margins expanded to 64%, a roughly 400 basis point improvement quarter over quarter. Gross profit grew 315% year over year to $23.3 million, Active subscribers grew to 82,000 and 93% of IM8 revenue came from subscriptions. Servings delivered grew 28% sequentially to 8.8 million for the quarter. That's real consumption, not orders just sitting in pantries. And the acceleration has not stopped. April delivered 14 million IM8 monthly revenue of 18.6% over March. IM8 monthly revenue in May is tracking to approximately $15.5 million, implying annualized recurring revenue of roughly $186 million. The single most important thing that we did this quarter wasn't a new product. It was completing the international rollout of quarterly subscriptions. We started in the US in Q4 of last year and extended it globally in Q1. The impact has been very substantial. Our average order value has stepped up from approximately $110 for full year 2025 to new customer average order value of $157 in Q4 2025 to $240 in Q1 2026, a 53% sequential increase and more than 2x of our full year 2025 baseline. Our payback period compresses, cash flow improves, And critically, retention has seen stronger. Our new customer subscription rate is approximately 79%, essentially unchanged from Q4. People aren't being pushed into long-term commitment. They're choosing it because the product works. Now, let me give you the cohort data because this is where the story gets really interesting. On January 2026, our quarterly cohort generated $587 in cumulative revenue per customer in just four months. For context, our January 25 monthly cohort took 12 months to reach $549. So basically, four orders today equals 12 orders a year ago. We are collecting cash roughly three times faster per customer than we were just one year ago when we first launched. Extrapolating that trajectory, current cohorts are tracking toward an implied 12-month LTR of $900 to $1,100 versus the $571 we delivered on mature cohorts. And 81% of the cumulative 12-order revenue in our mature cohorts comes from repeat purchases. That puts our net repeat revenue well ahead of every public DTC pair that discloses a comparable metric. Bell ring at 52%. FIGS at 50%, ODDD at 45%. We are operating in a very different league on retention. Given the trajectory and the momentum that we are seeing, we are raising our full year 2026 IMA revenue guidance to 190 million to 210 million, up from our prior range of 180 to 200 million. For CO2, we expect total revenue of 46 million to 48 million, with IMA contributing 44 million to 46 million, which marks an approximately 33% sequential quarterly growth in just IMA revenue. And importantly, this guidance excludes the three Q4 product launches, hydration, creatine, and kids gummies. Those are pure upside. I want to also spend a few minutes talking about the engine behind the numbers. Three things make this engine work, and each is a moat that compounds. The first one, athlete equity alignment. David Beckham, of course, everyone knows, co-founded IMA. Irina Sabalenka, world number one tennis player, also joined last June, is also a partner. Our roster has only deepened in Q1, and a week since, we signed up Formula One driver, Ollie Barron. More recently, two-time NBA MVP, Giannis. In fact, I was just with Giannis in Milwaukee last week, so we've got some great content that we're going to be able to show very soon. And most recently, we just announced a partnership with InterMiami as their official health supplements partner, which also includes an equity state in Prunetics, nil rights with a minimum of four players, including Lionel Messi, and an IMA nutrition center at their training facility. Every one of these partners holds equity in Prenetics. Their incentives compound with ours over years, not campaigns. And let me address something directly because I know it's a question on people's minds. There is an assumption that partnerships like these cost a fortune. In fact, they do not. Because of the strength of our brand and our equity alignment model, we secure highly favorable terms. Relative out to our revenue base, each of these partnerships are not material to us from a financial cost perspective. They are nowhere near the multimillion dollars per year category that some may assume. We are building a roster no challenger brand can match, and we are building it officially. And I can honestly say that each of these individual partners that we do have, they take the product every single day. They tell their friends and family about it, and it spreads very, very fast. The second thing we have at the moment, we believe, is our science. Our scientific advisory board spans individuals, doctors, physicians, scientists from Mayo Clinic, Cedars-Sinai, and even NASA. We have completed a randomized control trial behind our flagship product, and two new randomized control trials are underway covering gut health and longevity, and we believe we can complete these two trials by the end of the year. RCT great clinical evidence is extremely rare in supplements, but we believe it's worth investing in, and that will be a very defensible moat that we can build. Thirdly, we have an AI-driven marketing engine. Just to put into perspective, when we first started out last year, we had about 50 ads running. Today, on any given time, we have about 3,000 live meta ads, which is a 60x increase since launch. we put out roughly 600 new ads on a weekly basis. And now our AI creates a pipeline, tests it, iterates, and learns faster than legacy DTC competitors. A single Arena, South America Instagram Reel last year drove 233 million views and was the number one social ad in Instagram in 2025. And today we are also diversifying away from meta concentration Over the course of 2026, our channel mix is expected to move from approximately 85% meta to roughly 55%, deploying the same proven engine across TikTok, YouTube, Applovin to unlock new audiences at improved tech. And now let me spend a few minutes talking about what's ahead in terms of our product roadmap, because this is really central to our growth story. In Q4, 2026, we are launching three new products. And we haven't mentioned this previously, but we will mention it now. And these three new products are in the category of hydration, creatine, and kids gummies. These are not random line extensions. Each one targets a large, fast-growing category. Each play to a structural advantage we already have. And each gives our existing community more reasons to make IMA part of their daily lives. Starting with hydration, the global hydration category is roughly $37 billion, growing 8% a year, dominated by the names like Gatorade, Liquid IV, Drip Drop, and OMNT. But here is the opportunity. Most of this category is commoditized sugar and electrolytes. IMA hydration is built to the same premium science-backed claims formulation standard as daily ultimate essentials, third party tested, NSF certified for sport, and hydration is a category where authentic athlete credibility is the entire game. We have Beckham, Sabalenka, Behrman, Giannis, and now Inter Miami. On court and off the court, no challenger brand can match that alignment. Next, creatine. The global creatine category is about 1.3 billion. and growing 26% a year, the fastest growing of the three. Creatine is having a genuine cultural moment, expanding well beyond bodybuilding into condition, healthy aging, and women's health. The competitors here are Optimal Nutrition, Muscle Melt, Dorn, and Create. Our differentiator is positioning. Ionate Creatine pairs strength with condition, Creatine plus focus. Most creatine on the market is a commodity powder. Ours will be formulated for both physical and mental performance with the same scientific rigor behind everything that we make. And thirdly, kids' gummies. The global kids' supplement category is roughly 3.6 billion, growing 8% a year. And frankly, it's the category most ripe for disruption. The incumbents, Flintstones, Centrum Kids, Little Critters are all legacy brands. often loaded with sugar and artificial ingredients, with very little earned parental trust. The modern Challenger Grooms is still young. Our advantage is simple. Parents who trust IMA for themselves will trust it for their children. Our existing customers are overwhelmingly parents. A clean, science-backed, all-in-one, zero-sugar kids product is the most natural household extension we could make. And here's the critical point that ties it together. Every one of these launches sells into our base of over 80 to 82,000 highly engaged, highly loyal subscribers. These are not standalone bets. They deepen the value of every customer we already have. On our internal modeling at illustrative attach rates against our existing base, these three skills add approximately $178 to $378 of incremental second-year revenue per customer. To put that in context, that is a meaningful uplift layered on top of the cohort economics I walked through earlier. They extend the brand into the home, they compound the lifetime value of the base, and none of this revenue is in our guidance. It is all upside. Now, let me move on to the capital allocation balance sheet. On the balance sheet as of today, we have approximately $147 million in cash and financial assets. In the past week, we sold our entire Bitcoin position, 510 Bitcoin for $41.3 million in cash proceeds already received. The board has also adopted a policy that the company will not purchase Bitcoin or any other digital assets going forward. our capital is most productively deployed behind IM8. We will put these proceeds to work in four places, potential expansion of our authorized share repurchase program, accelerated IM8 DTC marketing where union economics are proven, Q4 product pipeline, and continued international expansion. On the share buyback, we have repurchased approximately 19 million of the $40 million authorized amount since March 6th. I, along with senior management, personally added another $2.75 million of open market purchases in previous trading windows. That is my conviction in this company rented in my own capital. And what's ahead? Let me close with where we're headed. We are operating in a $209 billion global supplements market, growing roughly 8% per year. Even at our current revenue targets for 26, we represent approximately 0.1% market share with approximately 200 million revenue guidance for 26. A 1 billion brand at just 0.5% global market share is well within reach. And that's before laying in new products, new geographies, and additional subscription frequencies. The runway and upside is enormous. and we believe we are still in the very early innings. I'll say this plainly, I believe we are building a multi-billion dollar consumer health brand, a generational health brand. The product works, evidenced by the 16,000 five-star reviews you see. The science is real, the athletes are aligned, the engine compounds, and the data is doing the talking. With that, I'd like to welcome Brian Rosen, who joins us today as our speaker. Chief Financial Officer of IM8. And in fact, it's Brian's first day today. And Brian brings with us nearly two decades of finance leadership across premium consumer health and DTC subscription brands. And I believe he'll be a big asset moving forward. Brian, over to you.

Thank you, Danny. And good morning, everyone. Pleasure to be here on the call and on my first day at that. Before Stephen walks through the Q1 numbers in detail, I'll take just a couple moments to introduce myself and explain why I joined. First, a little bit about my background. I've spent nearly two decades at the intersection of consumer health, subscription supplements, and D2C e-commerce, especially in premium brands. Most recently, I was Chief Financial Officer and Senior Vice President of e-commerce operations at WellBeam Consumer Health, a private equity-backed wellness platform. WellBeam's portfolio included Biotrust, in healthy aging nutrition, uNatural in women's hormonal and specialty supplements, and TruSkin, a clean plant-powered skincare brand. I had joined TruSkin as CFO in 2020 and helped take it through its acquisition by Welldium in 2021. Prior to that, I held CFO roles at Penetrex, Naturello Premium Supplements, and Ramp Inc. All of these were successfully acquired. So I've sat in the operator seat through scale, through capital raises and through exits. And I know what separates the brands that break through from the ones that stall. Why I joined IM8 is pretty simple. Across every transaction I've ever worked on, the breakout brands share three traits. They all have a founder who cares deeply about the product, real science behind the formulations, and a team that treats every order and every dollar with discipline. From my first conversation with Danny, it was obvious this is the exact foundation IME is built on. David Beckham as a co-founding partner, world-class athletes as authentic, equity-aligned users, scientific advisory board members spanning Mayo Clinic, Cedars-Sinai, NASA, RCT-grade clinical validation, and an AI operating model that moves at a pace I've never seen at this scale. Full disclosure, I've been an IMA customer for over a year now. I was on the Beckham stack way before I had met Danny or any of the team. I actually know the product works because I use it. It was pretty fun to actually meet Danny for the first time, just having used the product for so long. The thing that really ultimately convinced me to join is the cohort data. It's just the math here is tremendous. In my career, I've looked at hundreds of cohort curves on supplement brands, but I've never seen LTV numbers like this. 81% repeat revenue, $240 new customer AOV, 2026 cohorts that are tracking to 900 to 1,100 in 12-month revenue per customer. This isn't a marketing story. It's what disciplined unit economics looks like when a brand hits product market fit at scale. My role here is going to be quite clear. Build the financial foundation to support the next phase of growth. And that means three things. First, scaling the finance organization globally to keep pace with the brand. The business is growing faster than most public companies in the category, and the financial infrastructure has to be ready. Second, sharpening capital allocation and unit economic discipline. We need to measure every dollar of marketing spend against payback and LTV, channel by channel, cohort by cohort. The CFO's job in a high-growth B2C business is to make sure we're scaling profitably, not just scaling. Third, working hand-in-hand with Danny and the rest of the team to ensure our financial and operational foundation supports the trajectory we have ahead. Looking forward to getting to know our shareholders and the analyst community in the quarters to come.