Prenetics reported adjusted earnings per share of -$0.53 for the second quarter of 2026, beating analyst expectations of -$0.71 and improving from a loss of $0.94 per share a year earlier. Revenue totaled $46.5 million, missing the $49.15 million forecast by 5.39% but rising 29% sequentially and nearly 3.9 times year-over-year.
The company’s IM8 segment generated $45 million in revenue, up 33% from the prior quarter. Gross profit reached $30.2 million, yielding a gross margin of 65%, a 3 percentage point increase from the same period last year. Contribution profit stood at $21.4 million, representing a 46% margin, while fixed operating costs were $8.8 million, or 19% of sales. Adjusted EBITDA remained negative at $19 million, and net loss was $9 million, or $0.52 per share.
July performance highlighted accelerating growth, with revenue of $20.9 million implying an annualized run rate of about $251 million, more than 4.3 times higher than the prior July. Gross and contribution margins in July were 64% and 49%, respectively, while customer acquisition cost fell 21% to $239. The company also achieved positive consolidated adjusted free cash flow for the first time in its history during the month.
Prenetics raised its full-year 2026 revenue guidance to a range of $220 million to $230 million, with IM8 expected to contribute $215 million to $222 million. The company also initiated a 2027 revenue target of $400 million or more. For the third quarter, total revenue is projected between $63 million and $64 million, including $61.5 million to $62.5 million from IM8. Adjusted EBITDA losses in the second half are expected to narrow to between negative $8 million and negative $12 million, compared with negative $24.6 million in the first half.
Shares of Prenetics fell 1.91% in early trading to $19, down from the prior close of $19.37. The stock has traded between $7.175 and $23.63 over the past 52 weeks and delivered a 156% one-year return.
CEO Danny Chou emphasized the company’s transparency and operational discipline, stating that July’s free cash flow milestone was the single most important fact in the update. He noted that IM8, launched in December 2024, generated about $400,000 in its first month on the market. The CFO highlighted the unusual combination of doubling spending while improving customer acquisition efficiency, while the chief medical officer underscored the company’s focus on evidence-based product development in a category often driven by marketing claims.
