Prenetics (PRE) Q3 2025: IMA Revenue Soars 568% as Global DTC Expansion Drives 80% Subscription Rate
Prenetics delivered a breakout quarter, with IMA’s direct-to-consumer model fueling triple-digit revenue growth and an 80% subscription attach rate. International markets now drive over half of sales, while margin and payback metrics signal scalable, capital-efficient execution. Management’s focus on IMA, strategic divestitures, and a dual-engine “health and wealth” approach set the stage for aggressive global expansion into 2026.
Summary
- IMA’s DTC Flywheel Accelerates: Subscription adoption, global reach, and premium pricing underpin rapid recurring revenue growth.
- Margin and Payback Outperformance: Gross margin expands to 60% and payback period compresses to 3.9 months, supporting scalable marketing.
- Strategic Capital and Product Focus: Divestitures, $122M liquidity, and a Bitcoin treasury reinforce a disciplined, high-velocity growth strategy.
Performance Analysis
Prenetics’ Q3 2025 results showcase a decisive pivot from legacy diagnostics to a high-growth, direct-to-consumer (DTC) health and longevity model anchored by IMA, the company’s flagship supplement brand co-founded with David Beckham. Total revenue surged 568% year-over-year, driven almost entirely by IMA’s 76% sequential quarterly growth and expanding global demand. International markets now account for 56.5% of total revenue, with the US, Canada, UK, Australia, and Singapore leading adoption. The company’s DTC engine is delivering strong unit economics: 80% of new customers subscribe, average order value rose 36% quarter-over-quarter to $150, and gross margin expanded to 60% from 52% in the prior quarter.
Profitability metrics improved sharply, with adjusted EBITDA loss narrowing from $6.5 million in Q1 to $2.1 million in Q3. Customer payback period—a critical DTC metric measuring time to recoup acquisition costs—fell to 3.9 months, well ahead of industry peers. Management attributes this to data-driven marketing and product innovation, including the October launch of “Ultimate Longevity,” which immediately boosted order values. Liquidity stands at $122 million, including $82 million in cash and $40 million in Bitcoin, providing ample runway for continued global scaling without the need for additional capital in the near term.
- Global DTC Penetration: IMA’s ability to reach 31 countries within a year validates the brand’s international appeal and operational agility.
- Subscription-Led Recurring Revenue: The 80% subscription rate indicates strong customer retention, a foundational driver for sustainable growth.
- Margin Expansion and Cash Efficiency: Gross margin gains and rapid payback support aggressive reinvestment without sacrificing near-term financial discipline.
With non-core asset divestitures underway and a single-brand focus, Prenetics is positioned to channel resources toward IMA’s global expansion and product pipeline.
Executive Commentary
"In just 12 months since launch, IMA is on pace to reach 120 million in annualized recurring revenue by December 2025, representing the fastest growth trajectory ever recorded in the global supplements industry, surpassing even leading AI startups. For the third quarter, total revenue surged 568% year-over-year to 23.6 million, driven by IMA's 76% quarterly growth and expanding international demand."
Danny Young, Chief Executive Officer and Co-Founder
"The improving adjusted EBITDA trends from 6.5 million loss in Q1, when we still had loss-making ACD genomics, down to 2.1 million in the third quarter. This demonstrates our operational leverage and clear path to profitability. This liquidity gives us the flexibility to scale IM8 globally, invest in marketing, and continue Bitcoin accumulation under our dual engine framework."
Stephen Lowe, Chief Financial Officer
Strategic Positioning
1. Relentless Focus on IMA as the Growth Engine
Prenetics’ transformation centers on IMA, a science-backed, DTC supplement brand targeting health and longevity. By divesting non-core assets—including ACG Genomics and soon Europa Sports—Prenetics is concentrating capital and talent on scaling IMA, which is now projected to reach $300 million annual recurring revenue (ARR) by end of 2026. This single-brand focus enables operational simplicity and resource alignment.
2. Global DTC Model with Premium Positioning
IMA’s internationalization is rapid and capital-efficient, with 56.5% of revenue from outside the US and penetration into 31 countries within a year. The brand’s premium positioning—reflected in a $150 average order value and willingness to pay for “science-backed” formulations—supports higher margins and customer loyalty. Direct-to-consumer, or DTC, means selling directly to customers online, bypassing retail intermediaries.
3. Dual-Engine “Health and Wealth” Capital Strategy
Prenetics is unique in combining a recurring health business with a Bitcoin treasury, acquiring one BTC daily since August as a long-term value preservation strategy. This “dual engine” approach is designed to compound shareholder value while supporting operational needs, and is positioned as a differentiator in investor communications. Bitcoin treasury refers to holding Bitcoin as a balance sheet asset alongside cash.
4. Data-Driven Marketing and Product Innovation
The company’s AI-optimized organization leverages rapid iteration, driving down customer acquisition payback and enabling quick launches of new SKUs, such as Ultimate Longevity. Customer payback period, the time to recoup marketing spend, is a key DTC efficiency metric and is currently outperforming industry benchmarks.
5. Strategic Partnerships and Brand Credibility
Co-founder David Beckham and high-profile investors like Irina Sabalenka provide global visibility and trust, while a scientific advisory board of 11 experts underpins product credibility. This combination of celebrity, science, and data-driven execution is central to IMA’s brand moat.
Key Considerations
Prenetics’ Q3 marks a structural inflection point, with IMA’s rapid scale and operational leverage reshaping the company’s long-term trajectory. The quarter’s results validate the viability of its DTC-first, premium health model, but also introduce new execution and competitive questions as the company targets $1 billion revenue by 2030.
Key Considerations:
- Subscription Model Durability: Sustaining an 80% subscription rate as the customer base expands will be critical to maintaining high lifetime value and margin leverage.
- International Expansion Risks: Scaling logistics, compliance, and localized marketing across 31+ countries introduces operational complexity and regulatory risk.
- Single-Brand Concentration: Heavy reliance on IMA increases exposure to category competition, product fatigue, or execution missteps.
- Capital Allocation Discipline: The dual-engine strategy with Bitcoin holdings offers upside but also exposes the balance sheet to crypto volatility and investor scrutiny.
- Divestiture Execution: Monetizing non-core assets (Europa, Circle DNA, Insighta) is necessary to fully realize the streamlined growth thesis.
Risks
Prenetics’ growth is highly concentrated in a single DTC supplement brand, exposing it to category shifts, regulatory changes, and competitive entry. International expansion introduces cross-border compliance, logistics, and currency risks. The Bitcoin treasury strategy, while differentiated, adds balance sheet volatility and could become a distraction if crypto prices swing. Execution missteps in marketing, fulfillment, or product development could quickly erode the company’s current momentum.
Forward Outlook
For Q4 2025, Prenetics guided to:
- IMA annualized recurring revenue reaching $120 million by December
- Continued international expansion and new product launches to drive sequential growth
For full-year 2025, management reaffirmed guidance:
- Total revenue of $90 to $100 million, with IMA contributing approximately $60 million
Management highlighted several factors that will shape results:
- Accelerated marketing investment to capture global market share
- Completion of non-core asset divestitures to sharpen capital allocation
Takeaways
Prenetics’ Q3 results confirm that its IMA-led, DTC-first model is scaling rapidly, with strong margin expansion, customer retention, and international growth. The company’s commitment to a single-brand focus, capital-light execution, and a differentiated capital strategy sets it apart, but also heightens exposure to category and execution risk.
- IMA’s DTC engine is delivering global scale, with metrics that rival leading consumer health disruptors.
- Operational and financial discipline provide flexibility, but success hinges on sustaining subscription economics and navigating global complexity.
- Investors should watch for execution on asset sales, continued payback and margin outperformance, and evidence that IMA can maintain growth velocity as it matures.
Conclusion
Prenetics has emerged from transformation with a focused, high-velocity DTC health business in IMA, delivering breakout growth and operational leverage. The next phase will test its ability to sustain premium positioning, global execution, and capital discipline as it chases ambitious revenue targets.
Industry Read-Through
Prenetics’ results signal a new playbook for consumer health companies: pure-play DTC, rapid internationalization, and a subscription-first model can drive outsized growth and margin expansion if executed with discipline. Legacy supplement and wellness brands face disruption risk as data-driven, science-backed, and celebrity-endorsed entrants like IMA capture global share. The Bitcoin treasury approach remains an outlier, but may attract copycats if it proves accretive to shareholder value. Investors in the broader consumer and health sectors should monitor how DTC economics, global brand-building, and capital innovation reshape category leadership in the coming years.