Key Takeaways
Prenetics Global Limited (NASDAQ: PRE) reported preliminary first-quarter revenue that surged nearly sixfold, driven by its IM8 health brand, and raised its full-year sales forecast.
"The momentum behind IM8 is extraordinary," Chief Executive Officer and Co-Founder Danny Yeung said. "Based on this trajectory, we currently expect Q2 2026 revenues of approximately $46 million to $48 million... We are also raising our full-year 2026 IM8 revenue guidance to $190 million to $210 million."
The consumer health sciences company announced preliminary Q1 revenue of $36.0 million, a 334.5 percent increase from the $8.3 million recorded in the same period last year. The IM8 brand was the primary driver, with its revenue growing from $5.7 million to $33.8 million year-over-year. The company projects Q2 revenue will reach $46 million to $48 million.
The robust growth reflects a strategic shift toward quarterly subscription plans for its IM8 products, which boosted the new customer average order value to $240 in the first quarter, up from $157 in the fourth quarter of 2025. The company's gross margin expanded to 64.8 percent from 67.8 percent in the year-ago period.
The company's transition to a quarterly subscription model has been a key factor in its performance. This strategy, rolled out internationally in Q1 2026, helped increase the new customer average order value by 53 percent from the previous quarter. The company noted that this model enhances cash flow and improves customer lifetime value. Total servings delivered grew 28 percent quarter-over-quarter to over 8.8 million, indicating higher consumption per order.
IM8 has expanded its global footprint, shipping to 43 countries with over 60 percent of its revenue generated outside the United States. The top five markets are the U.S., Canada, the U.K., Australia, and Singapore. Looking ahead, the company plans to launch new products in the fourth quarter of 2026, including offerings for hydration, creatine, and kids' gummies, to enter new market segments.
The guidance increase and strong balance sheet, which includes $91.3 million in cash as of May 13, signal management's confidence in sustained growth. The company also executed approximately $19 million of its $40 million share repurchase program. Investors will watch for the full, audited Q1 results and whether the IM8 brand's momentum can continue through the second quarter.
This article is for informational purposes only and does not constitute investment advice.
