Great. Thank you, Alex. Good morning, everyone. My name is Danny Yeung, Co-Founder and CEO of Prenetics. Today, I want to tell everyone about Prenetics and IM8. We had a breakout growth story in 2025. Just to recap, you know, executive summary, right? In 2025, we achieved approximately $92 million in full -year revenue, driven by the explosive launch of IM8, in which we reached $120 million ARR in its first -full year of operations. Very importantly, a lot of you guys may have, you know, been following Prenetics. You know, we actually previously had a quite complicated, yeah, corporate structure, I would say, in which we have multiple business units. We've now successfully divested all of our non-core assets, given the significant growth opportunity we have with IM8.
We now believe we have a very clear roadmap to profitability by Q4 of 2027. We also have a very robust balance sheet. As of today, roughly about $160 million in liquid assets. Again, just highlighting executive summary here. 2025, $92 million. This is inclusive of all the other business units. $120 million ARR run rate just alone on the IM8 business. 63% gross margins. We ended the year with that IM8. Again, total liquidity just was a little bit outdated. Our total liquidity stands at approximately $160 million as of today, with zero debt. As mentioned, we had a strategic transformation. We completed on that. What did we do in terms of the transformation?
Last October, we sold off ACT for $72 million in cash, in which Prenetics received approximately $46 million in cash. We also sold off Europa in an all-stock transaction for up to $13 million. Very recently, last month, we sold our entire stake in Insighta to Tencent for $70 million in cash. Why did we do that? Twofold, right? We saw the significant opportunity with IM8. At the same time, we also saw these other business units, being, you know, compared, it wasn't a non-core asset, and we felt that we can do significantly greater with the capital in hand to continue to grow IM8. So this gives you an idea in terms of where we're at. This is as of February, in terms of our cash position, our financial assets, our escrow from ACT, the Tencent escrow.
We also hold 510 million Bitcoins. This is where, as I mentioned, the most up-to-date figure is approximately $160 million. This shows you in terms of the breakdown, in terms of our revenues for 2025 and driven by IM8. We had a full -year, roughly about $60 million. Europa about $19 million, CircleDNA $12.9 million. This makes up for the $90 million, plus in revenues, right? I think very interestingly, and this is where it gets, you know, quite exciting for us, is that basically our IM8 business is truly global. In fact, we ship to 31 countries globally, and we did this from the start. Roughly, U.S. represents 40% of the overall business. Canada, number two. U.K., number three. Australia, number four. Singapore, number five.
If you think about this last year, we did $60 million, but only $24 million that is in U.S. We do believe, for example, the U.S. can easily support, you know, $150 million-$200 million in itself. In terms of the IM8 growth story, I'm sure everyone knows, you know, my very famous Co-Founder, David Beckham. Backstory is that, you know, I met with David in middle part of 2023 just as a mutual friend's introduction. We got along really well. As I'm sure you also know, many people have, yeah, wanted David to do a supplement online. He's rejected until now.
I think he was very intrigued about my background, you know, as both a e-commerce entrepreneur, being the previous CEO of Groupon East Asia after they acquired my company, as well as the last 10 years, Prenetics as a life sciences company. The convergence of those two, consumer life sciences and lifestyle now made really a great combination. That's why David agreed. We launched the brand in December of 2024. Our first -month revenue, you can see was about $581,000. We ended last year at $10 million monthly revenue. Yeah, at least from what we believe on record in a vitamins supplements category, it has never been recorded such phenomenal growth.
In terms of the unit economics, as you can see, this is actually data from, you know, full -year 2025. Our average order value was approximately $110. Our CAC was $130. When we think about our 24-month LTV, we're looking at approximately $480, right? I think if you look at DTC metrics, you know, on a global basis, you know, everyone wants to achieve roughly about 3x, and we are right exactly there. I do believe while we're growing, we're growing in a very efficient way from a customer acquisition perspective.
Just to share, 100% of our business today is online, and it's transacted 98% on our own website, im8health.com, and the other 2% is on Amazon. One thing that we also did very interestingly in this quarter is that we introduced a quarterly option. What that means is previously we only had one-time purchase, one month, and we introduced the three-month option. This, of course, doubled our average order value to approximately $233. Our CAC also increased subsequently with the increase. You know, overnight wise, we pretty much doubled. I think from a company perspective, you know, this will also help with retention because individuals are getting three months at a time.
We're also shipping three months at a time, so we're able to save on shipping costs as well. Of course, if you're the customer-wise, given that you have three months of product, you'll be much more likely to use the product on a daily basis and feel the effects. We also have 80% subscription rate. Any new customer coming to the platform, 80% of the time they're actually subscribing. This gives us very predictable and recurring revenue. Now, in terms of, you know, the core of IM8-wise, of course, we have David. At the same time, we also have an amazing scientific advisory board that we brought along from day one, the likes of Dr. Dawn Mussallem from Mayo Clinic, you know, Suzanne Devkota from Cedars-Sinai, Dr. James DiNicolantonio.
These individuals came together, you know, to help us create the formulations. I talk very closely with them, probably almost on a daily basis, to get insights, new product development, what they're seeing in the market. One of the things that's very unique about us, you know, again, we have David as our Co-Founder. We've also brought along Aryna Sabalenka last June, the world number one tennis player. Again, she was a user of the product for three months before she had her team reach out to us. That's, you know, quite amazing that you have someone that is at the top of their game, you know, using this product, with their coaches on the product, her family's on the product.
You know, last month, we also announced Ollie Bearman, again, you know, one of the youngest, you know, British F1 drivers also come on board as an ambassador. All three individuals are not just ambassadors, but they're also shareholders in Prenetics. I think this gives you an idea in terms of how viral we became on social media. There is one video on Instagram, you know, on our, on our page, IM8 Health. You guys can see the, on the media channels that we had 233 million views on one video that was created with AI. When we're getting that much of reach, those becomes much, much easier for us to retarget these individuals that have seen the video, right?
I think this was probably, you know, I think the number one video from any brand on social media in all of 2025. We also run a lot of events, in-person events, you know, with our key ambassadors, you know, Miami, London, New York. Every two to three months, I think this is also a very important part of the brand. Because while we are online, we utilize the offline element to connect with our community around the world. It's always been very well-received, and so we get lots of content this way as well. Right? We have tons of, you know, customer testimonials online. I know right now we have actually more than 16,000 five-star reviews, yeah, in terms of how it's helped individuals with their health, with their gut, with their sleep.
I think we have amazing stories that, you know, everyone can see on our website. We've been, you know, pretty much all over the news in 2025 since we've launched. This consistently gets us a lot of organic traffic and organic coverage. In terms of our offerings, we've kept it very simple in terms of our SKUs, right? We have our Daily Ultimate Essentials, and what this is basically it's six, it replaces 16 different supplements in a powder, right? It just put it in water, mix it, drink it. It has all of your multivitamins, CoQ10, MSM, probiotics, prebiotics, postbiotics, all your adaptogens, greens, antioxidants.
Everything in one, because, you know, when you start taking supplements, it's actually very difficult to maintain that because you have to start taking five, six, 10, 12, 13, 14, 15 supplements, and it just becomes a very convenient and simple way. If you think about the cost-wise, this is, you know, roughly $89 on a monthly basis. If you had to purchase these 16 different supplements, it'll easily cost you know, close to $300. The other SKU that we have is Daily Ultimate Longevity. This is also a powder formulation that's targeting the 12 hallmarks of aging with 10 clinically proven compounds known to slow down the aging process, right? Again, we only launched this SKU in October.
Our average order value has went from $110-$150 when we launched this pretty much overnight. That just shows you that, you know, when we launch a product, we have very loyal customers that want more products from us. The combination of these two SKUs is what we call the Beckham Stack. Yeah, the idea here is that it was designed for any individual to put two sachets in water and just drink in the morning. In terms of key growth drivers for 2026, you know, in 2025 we've been predominantly just Meta and Google. You know, but this year we are already starting to experiment with, you know, TikTok Shop, YouTube, AppLovin. We do believe diversification of new channels is gonna create new opportunities for customer acquisition.
We're working on, you know, new website and marketing localization across, you know, many different countries. New products, we're looking to release two new products by the end of the year. New global ambassadors, we utilize a lot of AI in what we do from a marketing perspective, a persona perspective, new landing pages that are targeting specific individuals. As mentioned, we're going to diversify away and not be so dependent on Meta and Google with additional platforms. The market localization, these are the countries that we're going to want to start in. As mentioned, we're gonna have, you know, two new SKUs. These two new SKUs, we do believe are gonna be very big opportunities in the health, sports, and wellness categories.
Our financial guidance, you know, for 2026, and we expect, you know, project that we'll be able to do, roughly $180 million-$200 million in full year revenue, which is a 300% year-over-year growth over 2025. We expect that we will be able to maintain or even be able to increase our gross margins, because as we continue to grow, you know, we will be able to have more leverage with our suppliers, logistics, all of our partners, and we do expect that this, you know, will be higher than 60%. You know, just ending here is that we have successfully transformed Prenetics into one of the fastest-growing consumer brands in the world in basically the last 14-15 months.
We do believe we are on a billion-dollar path, evidenced by our strong brand. If you talk to people on the ground, a lot of people have tried the product, or if they've not, they've definitely heard of the brand and the product. It's a very exciting time for us. Open it up for questions right now.
Great. Well, thank you very much, Danny. As a reminder to folks, they can submit questions using the Zoom Q&A interface at the bottom of the screen. Maybe we can just start, though, with giving a picture of, you know, sort of the typical Prenetics customer. You know.
Mm-hmm
Is IM8 only for athletes like your ambassadors, or is there a wider audience? You know, what makes it compelling in the overall wellness space?
I mean, it's definitely not just for athletes, right? I know I'm not an athlete, right? You know, I take one, two doses on a daily basis, right? I think the reason why we are using athletes, again, you think about Nike, right? Not everyone's an athlete, right? I think for athletes, they have so many options when it comes to this category, right? They don't need to endorse anything that they're not taking themselves. That just becomes a great credibility for us when we do have such amazing athletes which are on the product. Our typical customer is actually anywhere between ages of 30 to 60, right? Top 10% of household incomes. Ultimately, they just want the best, right? They don't want to be juggling multiple pills.
They want to make sure that, A, they're whatever they're taking is clean, third-party tested, made in the U.S. You know, so all these different things checks all the boxes. We have athletes that are not just supporting or endorsing. These are also shareholders of the brand and product.
Great context. Thank you. I think, you know, one of the most exciting things has been the growth, you know, as you pointed out, among, you know, the fastest ever, in the industry. Could you talk a little bit about, you know, your confidence in the continued growth and what some of the assumptions are behind the guidance you've issued?
Yeah. We're very confident about the continued growth, right? Because if you think about it, I mean, we're only, you know, roughly 14 months into the brand, right? We're 100% direct to consumer. Why we're confident is that we are in 31 countries. All right. I mentioned this earlier in the start. Only 40% of our revenue in the U.S. Typically, a lot of supplement brands, they'll start in the U.S., but they'll take roughly three to four years before they even think internationally. We are international from day one, and then there's a lot of opportunities for growth in all of our markets, right? Again, U.S., Canada, U.K., you know, Europe, Australia, Singapore, Hong Kong, U.A.E. These are all markets that we are seeing double-digit growth, you know, on a quarterly basis. Yeah.
Again, I think we're also been only utilizing two channels, right? Meta and Google, right? We haven't even tapped into TikTok. The reason why is that, I don't believe we can do everything well at the same time. Last year, we cracked Meta. Right? We spent a lot of time on that engine. When we go into TikTok, when we go into YouTube, when we go into AppLovin, I do believe we can crack each of these channels. Of course, it takes time, it takes focus, and takes resources to be able to do so, right? Given that we're still very limited in what we've been able to do, that gives us significant confidence to be able to meet these revenue targets.
Very helpful. A follow-up question, you know, does the guidance for this year include, you know, the new products you mentioned, Project Alpha and Beta, or is that also separate?
Those are separate. Yeah, we haven't factored those in. Yeah, I think there is, you know, I think again, because it's very difficult to say how these things will launch, because as I said, you never know, right? I think, with at least our two SKUs and the Beckham Stack, this is what we're projecting for 2026. Okay? We're also confident in terms of these two new SKUs that, you know, these will be hero products and best in class in its category. And that will drive a lot of growth, you know, as we head into 2027.
Makes sense. Danny, could you talk a little bit, you know, and Steven, about the economics of the business? You know, I think you gave gross margin guidance, but how should customers or, you know, investors think about, you know, sales and marketing spend sort of, you know, as a stable function of the business and, you know, customer acquisition costs relative to lifetime value, that sort of stuff?
I mean, great question, Alex. I think key thing, as mentioned, is that, A, we're only 15 months into the brand right now. From a marketing perspective, we definitely wanna continue investing in the brand and growth, right? You'll see this year, right? I mean, right now, in the last year, I think, you know, our marketing as a percentage of revenue was roughly 45%. We're probably gonna bump it up to 45%-50%, and that's a function 'cause we wanna invest in the moat in terms of the brand, right? You'll see us doing more partnerships, more deals. We're investing also in clinical trials this year.
For example, we have three new clinical trials that are about to be started, now working with a clinical research organization, one with the Mayo Clinic as well. Again, why are we doing this? It's very rare that you have a supplement brand doing three clinical trials, and we're doing this all at the same time, and we hope to complete this by the end of the year. Going back to your question, the unit economics, customer acquisition, brand, these are all things that we're investing in growth this year, and especially we also have the capital to do so, right?
Very helpful. Just one follow-up on that. You know, has the divestment of assets, you know, enabled you to sort of focus on IM8, and you know, has that streamlined some of the economics? Is there any streamlining left?
Yeah. 100%. I think if you look at even last year, right, even look at our SG&A costs, there's a lot of that was due to a lot of our non-core assets. Yeah, we had to write a lot of the assets off, took a loss on some of those. Again, it was more of a distraction having to manage all those other businesses as well, you know, same for Steve and myself, right? I think you'll see efficiencies significantly improve due to those divestments.
Great. Thanks. Just, you know, one more question, you know, on Bitcoin. I know you've mentioned, you know, historically it was, you know, of interest to the company and over time it's taken less-
Mm-hmm
of an interest. Could you talk a little bit about that?
Yeah, sure. I think we started, you know, at the time it was June of 2025, right? We started, you know, buying Bitcoin, a little bit Bitcoin, and now we hold roughly about 510 Bitcoin. It was very, you know, obvious to us, you know, by the end of Q4 last year that, you know, the business ramped up very significantly, hitting $10 million monthly revenue by December, right? Then the reality is, A, you know, Bitcoin also, to be fair, it was a distraction. What we've said, you know, basically on December fourth is that we stopped buying any Bitcoin, and we will not buy any Bitcoin in the future as well. With the current Bitcoin, it's fungible.
Yeah, if we need it, yeah, we can definitely sell it, but for the time being, we just treat it as a treasury asset similar to our fixed deposits that we put into, you know, JPMorgan or something like that. You can also see that, I think, you know, given on that part in terms of the treasury and et cetera-wise, again, we have, you know, $160 million in liquid assets, you know, cash investments, including Bitcoin. I'm sure you also have seen, you know, about two weeks ago, we also announced a $40 million share buyback. Yeah, and we have already started in that process of, and have, of course, started executing on that already.
Management team in the last two quarters, including myself, have also executed $2.75 million worth of open market purchases. So in total-wise, you know, we're committing up to $42.75 million just to buy back the shares. This is realistically, you know, great for shareholders and for the company.
Thanks for the additional context. Maybe, you know, just pivoting to products a little bit, you know, I know you came out with Daily Ultimate Essentials PRO. Could you talk a little bit about, you know, how you think about formulation development and-
Mm-hmm
You know, sort of the steps to do that? You know, I know you mentioned a little bit about Project Alpha and Beta, but if there's anything more to share.
Yeah. So, we came out with basically a upgraded version, yeah, of our hero product, the Daily Ultimate Essentials PRO. This process, to be fair, it takes quite a long process, right? Because we have a big team of scientific advisory board members, and then we have to get alignment from each one of these individuals. Okay? In terms of saying, how should we think about what's the latest science, what are ingredients, you know, that we should add, what are dosages that we should also add. This work was, I would say, yeah, a easy, yeah, six to nine months, right, from the time we started to the time we got it out to the market, and it has been very well received, right?
Not only did we upgrade clinical dosages of key ingredients, such as magnesium, MSM, you know, vitamin D, K2, et cetera, we also introduced two new flavors to proactively combat flavor fatigue, right? We introduced mango passion fruit, as well as lemon orange, 'cause our base formula flavor, Açaí Mixed Berries , is great, but you know, everyone wants a little bit of variety, right?
Definitely. In terms of, you know, product growth and expansion.
Yeah.
Question about, you know, plans to expand to China?
Yeah. A lot of people ask me about China. The reality is it's much better to be very strategic in China, and that's why, you know, 99, 98% of companies in the U.S. that go into China, they fail, right? Because whatever works outside of the U.S. very likely will not work in China, right? Because, for example, right now, you have 98% of our revenue is transacted on our own website. We can tell that story, right? You look at the pages, you read through all the site, we educate the consumer. But in China, no one transacts, you know, on your own website. It's all transacted through third-party websites, you know, like, JD, Taobao, et cetera.
We need to be very strategic when we think about China, but we're thinking more of end of 2027, or even 2028 because ultimately we want the brand to be very strong outside of China before we enter China, right? I think by that time we will have a very strong brand, and it's gonna be a very unique proposition because you've never had a single brand, a premium brand with so amazing ambassadors that are well-loved by 1.4 billion people in China. Like David's, like, so famous, right, in China. Sabalenka, Ollie, F1, it's just. You know, it'll be amazing to see. Yeah. Then we believe, you know, to be fair, whatever revenue that we do outside of China, the reality is China should equal that.
Understood. Another question also around product packaging. You know, I think you've mentioned the extended formats, you know, beyond 30-day, 90-day subscriptions, you know, have been working well.
Mm-hmm.
Many thoughts around, you know, annual offering or, you know, like a week-long trial offering.
Yeah. Those things we are considering in terms of at the right time, right? Even like six-month options, 12-month options, trial packs. You know, for example, we're exploring trial packs, you know, when we think about TikTok Shop, right? Because then there's our average order value right now is, like, you know, quite high, right? It's over above $200, but maybe for many people, they wanna have a starter trial pack, right? These are different things that we are exploring as we speak right now.
Very helpful. I think you've mentioned, you know, the use of AI in, you know, your advertising and it's been-
Everything. Whole operating systems, yeah.
That's.
In fact, I'm AI right now. Just kidding.
No, that's what I was about to ask, you know.
Yeah.
How far the scope of AI extends into the business and, yeah, if you're using it to segment customers?
Yeah. I think every part of the business organization, you know, there's a function of AI to make it more efficient or to make us more productive, right? So, you know, give you an example how we think about this. Even, you know, for example, tomorrow we have like a four-hour workshop in the office where we're giving everyone Claude Code, and every individual of the company must deliver something they're building in the next 30 days, okay? It's not even optional anymore, it's mandatory. I don't care if they're in customer service, finance, operations, HR, we have this program where I want people to be building, thinking commercially, and utilizing the power of all the available AI tools that are available to everyone, right?
It's like kind of like this mindset and mentality across the organization 'cause I think it's like the once in a generation type of tool that will enable us to grow and be much more efficient than ever before.
Good to hear.
Yeah.
Danny, as we head towards time, maybe, you know, one final question. For folks, you know, that may be familiar with the health and wellness space or, you know, supplements and nutrition, but maybe new to Prenetics, you know, what would you say to them as final words to motivate to learn more?
Yeah, I mean, just look at what we've been able to achieve, right? I think, you know, before we got into this industry, everyone told me not to get into this industry. They're like, "Danny, the supplement industry, don't get into it. It's so competitive. It's like the Wild Wild West," blah, blah, et cetera, right? We've been able to, you know, in 11 months, we went from zero to $100 million ARR. Why? Ultimately, the product works, right? If the product didn't work, we won't have such strong recurring revenues, right? People love the product. They feel the product, and we've been able to get some amazing ambassadors. We've been able to merge lifestyle and science.
I do believe we are setting a new standard when it comes to this category, and everyone else is now following us in terms of buying stack products because at the end of the day, you wanna. You know, there's so many supplements out there, right? Our supplement is $89 a month, but many people are paying $40, $50, but $40, $50 may not work, right? So, right? Very likely they may not, but we're giving you a premium experience of a product that really works, and we're very proud of this last 14-15 months. I do believe we are also just getting started, and we have significant opportunity as we continue to grow our existing product SKUs and as we continue to launch new product SKUs into the market.
You know, we have lots of cash, so we have no shortage of that. I think it's yeah, upside, the downside very limited, significant upside, and that's why everyone's so excited here.
I think that's a great place to end. You know, thank you very much, Danny and Steven, for sharing the Prenetics story with us. Also thank everybody listening for spending time with us today.
Great. Thank you very much.