By Brad Sorensen, CFA
NASDAQ: PRE
READ THE FULL PRE RESEARCH REPORT
Zacks SCR is initiating coverage of Prenetics Global Limited (NASDAQ: PRE). Prenetics is a health care company focused on the premium supplement market that has undergone a dramatic transformation over the past several years, evolving from a pandemic-era diagnostics company into a consumer-focused health and wellness platform. Early results indicate that pivot—anchored by its IM8 brand, which was co-founded by David Beckham—is already delivering hypergrowth, with $120 million in annualized recurring revenue achieved within 12 months of launch, and a clear path to profitability.
Prenetics was founded in 2014 as a genomics and diagnostic testing company, building its early reputation through genetic testing products such as CircleDNA and clinical diagnostics services. The company experienced rapid growth during the COVID-19 pandemic, when testing demand drove substantial revenue to the tune of more than $700m revenue in 3 years. However, like many pandemic beneficiaries, Prenetics faced a sharp reset as COVID-related revenues declined. This triggered a multi-year strategic overhaul beginning around 2023–2024, during which the company divested non-core and clinical assets, including ACT Genomics, and shifted toward a consumer health model.
By 2024, Prenetics had entered what management described as a “rebuilding phase,” generating approximately $30.6 million in revenue with its legacy business units. The balance sheet remained solid, with roughly $85 million in cash and no debt, giving the company flexibility to reinvest in growth.
The inflection point that we believe will be the difference maker came in 2025, driven entirely by the launch and rapid scaling of IM8, a premium nutrition and longevity brand co-founded with David Beckham. IM8 demonstrated exceptional early traction, reaching approximately $120 million in annualized recurring revenue within just 12 months—an unusually fast ramp for a consumer health product. This translated into full-year 2025 company revenue of $92.4 million, representing approximately 480% year-over-year growth.
Importantly, this growth was accompanied by a broader simplification of the business. Prenetics exited lower-margin or non-core operations, strengthened its liquidity position to roughly $170 million, and remained debt-free. While the company is still operating at an EBITDA loss, those losses are narrowing even as marketing spend accelerates to support IM8’s global expansion.
Finally, the company has added a couple of impressive athletes to its endorser list-World #1 female tennis player Aryna Sabalenka, global basketball superstar Giannis Antetokounmpo, and F1 phenom driver Ollie Bearman, which we believe further backs up the claims of IM8 and enhances the worldwide marketing effort.
What makes the ambassador model particularly noteworthy from an investment perspective is the structure of these partnerships. Aryna Sabalenka, Giannis Antetokounmpo, and Ollie Bearman chose to take equity in Prenetics rather than a traditional cash endorsement, becoming shareholders in Prenetics. This mirrors the David Beckham co-founder arrangement and represents, to our knowledge, one of the first instances in the supplement industry where multiple world-class athletes across different sports have independently opted into equity-based partnerships with a single brand. We view this as a meaningful signal of product conviction—these athletes and their advisory teams conducted due diligence on IM8 and chose long-term upside over guaranteed cash. This equity-aligned model also reduces the cash burden of ambassador deals on the P&L, which is strategically advantageous as the company scales toward profitability.
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