Minority RecapHealthcare
Tencent Acquires 35% Stake in Insighta From Prenetics for $70M
•February 18, 2026
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Why It Matters
The breakout performance of IM8 validates premium, subscription‑based consumer health models and positions Prenetics for scalable global growth, while the balance‑sheet strengthening gives it runway to invest in market expansion and profitability.
Key Takeaways
- •IM8 hit $120M ARR within 12 months.
- •FY2025 revenue jumped 480% to $92.4M.
- •Quarterly subscriptions raised AOV to $233.
- •Liquidity rose to $171M after $72M+ divestitures.
- •IM8 gross margin held near 60%.
Pulse Analysis
IM8’s meteoric rise reflects a broader shift toward premium, science‑backed supplements that blend performance and longevity. Leveraging David Beckham’s co‑founder status and high‑profile athlete ambassadors, the brand achieved rapid product‑market fit across more than 30 countries, with the United States accounting for just under 40% of revenue. This diversified geographic footprint reduces reliance on any single market and underscores the growing consumer appetite for personalized health solutions that promise measurable outcomes.
Prenetics’ strategic divestitures of non‑core assets—ACT Genomics, Europa, and Insighta—cleared operational complexity and injected roughly $135 million in cash, lifting total adjusted liquidity to $171 million and eliminating debt. The resulting leaner structure improves gross‑margin leverage, as evidenced by IM8’s stable 60% margin despite higher logistics costs. With operating expenses scaling slower than revenue, adjusted EBITDA loss narrowed dramatically, setting a clear pathway to profitability as the company scales.
The pivot to quarterly subscription plans is a decisive lever for cash‑flow acceleration and customer lifetime value. By increasing the blended average order value from $110 to $233 within months, Prenatics shortens the payback period and enhances capital efficiency, achieving a projected 3× LTV:CAC ratio. Coupled with strong retention metrics and expanding global distribution, these dynamics position IM8 to exceed its $200 million revenue target for 2026 and to become a category‑defining health brand worldwide.
Deal Summary
Prenetics Global Limited announced the sale of its 35% equity stake in Insighta to Tencent for $70 million in cash, as part of its strategic transformation to focus on its IM8 health brand. The deal, reported on February 18 2026, provides Prenetics with significant liquidity and reduces its exposure to non‑core businesses.
Article
Source: GlobeNewswire – Earnings Releases
Prenetics Reports Record Q4 and FY 2025 Results: IM8 Achieves $120 M ARR¹ in 12 Months, Revenue Surges 480 % YoY
February 18, 2026 09:11 ET
Source: Prenetics Global Limited
NEW YORK, Feb. 18, 2026 (GLOBE NEWSWIRE) – Prenetics Global Limited (NASDAQ: PRE) (“Prenetics” or the “Company”), a leading consumer health sciences company and parent of the IM8 premium health and longevity brand, today announced financial results for the fourth quarter and full year ended December 31, 2025.
The year 2025 marked a transformational milestone for Prenetics. Driven by the breakout performance of IM8, the Company delivered record financial results while completing a strategic transformation to streamline operations and focus on IM8. During the year and into 2026, Prenetics divested ACT Genomics in a transaction valued at up to approximately $72 million in cash (of which approximately $46 million are gross proceeds to Prenetics), sold the Europa distribution business for up to $13 million in all‑stock consideration, and recently announced the sale of Prenetics’ stake in Insighta to Tencent for $70 million in cash. These actions strengthened the balance sheet to approximately $171 million in total adjusted liquidity as of February 15, 2026, simplified the operating structure, and positioned the Company for accelerated global growth.
Full‑year revenue surged approximately 480 % year‑over‑year to $92.4 million. Fourth‑quarter revenue reached $36.6 million, representing a 55 % quarter‑over‑quarter increase, reflecting the extraordinary momentum of IM8, the Company’s flagship consumer‑health brand co‑founded with David Beckham. IM8 achieved ARR of approximately $120 million as of December 2025, within just 12 months of launch, and contributed $60.1 million in revenue for FY 2025.
IM8: A Breakout Global Brand
IM8 was the clear growth engine of Prenetics in 2025, demonstrating exceptional product‑market fit, premium positioning, and strong customer loyalty. From the end of Q3 to the end of Q4, IM8 monthly revenue grew by approximately 51 %, reaching $10.0 million in December 2025 and officially surpassing $120 million in ARR — one of the fastest trajectories ever recorded in the global supplement industry.
Footnotes
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“ARR” refers to annualized recurring revenue, which the Company uses as a key operating metric and is calculated by multiplying the monthly revenue from the last month of a given period by 12.
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Adjusted liquidity is a non‑IFRS financial measure, comprising: cash and cash equivalents of $99.3 million; financial assets at fair value through profit or loss (primarily fixed‑income funds) of approximately $29.3 million; alternative‑asset holdings of 510 units valued at approximately $35.2 million; and portions of gross proceeds of the ACT Genomics and Insighta sale transactions held in escrow pending customary release conditions ($6.3 million and $1.0 million, respectively).
IM8 — Key Performance Indicators
| Metric | Q4 2025 | Q3 2025 | Growth |
|--------|--------|--------|--------|
| Monthly Revenue (End of Period) | $10.0 million | $6.6 million | +51 % |
| Quarterly Revenue | $27.4 million | $17.2 million | +59 % |
| Total Customer Orders | 230,000+ | 170,000+ | +35 % |
| Total Servings Delivered | 6.9 million+ | 5.0 million+ | +38 % |
| Average Order Value (End of Period) | $133 | $102 | +31 % |
| New Customer Subscription Rate | ~80 % | ~80 % | Maintained |
| Gross Margin | ~60 % | ~62 % | –2 % |
| Payback Period | 3.5 months | 3.9 months | –0.4 months |
Gross margin for IM8 reduced to 60 % in Q4 from 62 % in Q3, impacted by freight and logistics costs during the holiday period and higher costs associated with an increasing portion of international sales. The Company is targeting to maintain IM8 gross margins at approximately 60 % in 2026.
Payback period for IM8 reduced to 3.5 months in Q4 from 3.9 months in Q3, primarily attributable to the introduction of a quarterly subscription option starting in the U.S. market in December 2025, which was then rolled out across all international markets in January 2026.
Global Diversification of IM8 Revenue
IM8’s growth in 2025 was highly diversified across geographies, demonstrating strong global product‑market fit and achieving $60.1 million in revenue for FY 2025.
Top Five IM8 Markets (FY 2025):
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United States: $23.8 M (39.7 %)
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Canada: $8.8 M (14.7 %)
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United Kingdom: $7.7 M (12.8 %)
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Australia: $3.2 M (5.3 %)
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Singapore: $2.4 M (4.0 %)
IM8 shipped to 30+ countries during the year, with over 60 % of revenue generated outside the United States. This international momentum provides a strong foundation for continued global expansion in 2026.
FY 2025 Unit Economics: A Capital‑Efficient Growth Engine
In its first full fiscal year of operations, IM8 established a highly efficient and scalable operating model:
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Blended average order value: ~ $110
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Payback period: ~ 3.4 months
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Day‑1 CAC recovery: ~ 55 %
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Projected 24‑month LTV:CAC ratio: ~ 3×
These metrics reflect IM8’s ability to rapidly recycle marketing capital while maintaining strong long‑term customer value. Based on current cohort performance and modeled retention trends, IM8 is projected to achieve LTV:CAC ratios above 3× across its product portfolio, including premium offerings such as the Beckham Stack.
Strategic Evolution to Quarterly Subscriptions – Driving Step‑Change in Average Order Value
In January 2026, IM8 deliberately began shifting new customers from monthly to quarterly subscription plans to enhance cash flow, improve logistics efficiency, and increase long‑term customer value.
Impact:
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FY 2025 blended average order value: ~ $110
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Q4 2025 blended average order value: ~ $133
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January–February 2026 blended new average order value: ~ $233
Quarterly Subscription Mix — January and February 2026
Quarterly plans now represent a meaningful and growing portion of new‑customer mix across the IM8 portfolio:
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Approximately half of Beckham Stack customers choose quarterly subscriptions.
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More than one‑third of Essentials customers opt for quarterly plans.
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Adoption continues to accelerate across all SKUs, including Longevity.
Key benefits: higher upfront revenue and AOV, faster cash recycling, lower fulfillment costs, and predictable auto‑renewals every three months.
Strengthening the IM8 Ecosystem — Global Sports Partnerships
Building on the brand’s co‑founder David Beckham, Prenetics expanded IM8’s presence across global sports in 2025 and early 2026.
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June 2025: Aryna Sabalenka, World No. 1 tennis player and 4× Grand Slam champion, joined as a global ambassador and shareholder.
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February 2026: Ollie Bearman, Formula 1 driver and rising star, was announced as a global ambassador and shareholder.
These partnerships reinforce IM8’s positioning as a premium performance and recovery brand trusted at the highest levels of sport.
Strategic Transformation into an IM8‑Focused Platform
Throughout 2025 and into early 2026, Prenetics executed a deliberate strategy to streamline operations, strengthen the balance sheet, and focus resources on IM8. Key milestones:
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Divestiture of ACT Genomics for up to ~$72 million cash (≈ $46 million gross proceeds).
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Sale of the Europa business for up to $13 million in stock (completed January 2026).
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Sale of the Company’s 35 % equity interest in Insighta to Tencent for $70 million cash, raising total adjusted liquidity to approximately $171.1 million as of February 15, 2026.
Adjusted Liquidity Breakdown (as of February 15, 2026):
| Asset Type | Balance (in millions) |
|------------|-----------------------|
| Cash and cash equivalents | $99.3 |
| Financial assets at fair value through profit or loss | $29.3 |
| ACT escrow | $6.3 |
| Insighta escrow | $1.0 |
| Sub‑total | $135.9 |
| Alternative liquid assets | $35.2 |
| Total adjusted liquidity | $171.1 |
These actions have transformed Prenetics into a focused, higher‑margin, operationally agile organization centered around IM8, while maintaining CircleDNA as a complementary consumer‑health asset.
Executive Comment
Danny Yeung, Chief Executive Officer and Co‑Founder:
“2025 was a defining year for Prenetics—one in which we proved both the strength and scalability of IM8’s business model. In just twelve months, IM8 reached $120 million in annualized recurring revenue, an achievement that is virtually unprecedented in consumer health. This performance was powered by strong unit economics, a rapidly expanding global footprint, and deep customer engagement.
Our transition towards quarterly subscriptions has delivered a meaningful acceleration in performance, with new blended average order value reaching approximately $233 in 2026. This strategy strengthens cash flow, enhances customer lifetime value, and supports efficient scaling.
Importantly, we expect to approximately triple IM8 revenue in 2026 compared to 2025, while targeting an adjusted EBITDA loss broadly similar to 2024 and 2025. This demonstrates the operating leverage inherent in our model, and we see a clear path to achieving adjusted EBITDA profitability by the fourth quarter of 2027.
With the completed sale of our Insighta stake to Tencent, our total adjusted liquidity stands at approximately $171 million as of February 15, 2026 with zero debt. This provides substantial financial capacity to invest in IM8’s next phase of global growth.
We are confidently reaffirming our 2026 IM8 revenue guidance of $180 million to $200 million, with a path toward $250 million to $300 million in ARR by the end of 2026. IM8 is rapidly becoming a global, category‑defining health brand—and this is only the beginning.”
Fourth Quarter 2025 Financial Highlights
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Revenue: $36.6 million (+457.1 % YoY, +55.2 % QoQ)
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Gross profit: $21.7 million (+801.1 % YoY)
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Adjusted EBITDA loss: $(2.3) million (70.4 % YoY improvement)
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Net loss: $(28.4) million
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Total adjusted liquidity (Feb 15, 2026): $171.1 million, zero debt
Revenue and Gross Profit by Business Unit (Q4 2025):
| Business Unit | Revenue (thousands USD) | Gross Profit (thousands USD) | Gross Margin |
|---------------|------------------------|------------------------------|--------------|
| CircleDNA | $5,840 | $4,863 | 83 % |
| IM8 | $27,448 | $16,550 | 60 % |
| Europa | $3,270 | $328 | 10 % |
| Total | $36,558 | $21,741 | 59 % |
Total revenue for Q4 2025 surged 457.1 % YoY to a record $36.6 million, up 55.2 % sequentially from Q3 2025. Gross profit grew more than eightfold YoY to $21.7 million, yielding a consolidated gross margin of 59.5 %. The divestiture of the Europa 3PL business (Hubmatrix) completed in January 2026 is expected to further improve the blended gross‑margin profile in 2026.
Selling and marketing expenses were $16.1 million for the quarter, reflecting significant investment in building IM8 into a global consumer brand and driving customer acquisition (44 % of revenue). Adjusted EBITDA loss improved by 70.4 % YoY to $(2.3) million, underscoring increasing operating leverage as revenue scales faster than operating expenses.
Loss from continuing operations was $(28.4) million, primarily attributable to non‑cash and non‑recurring items related to the Company’s strategic transformation, including an $8.2 million impairment loss.
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