Prenetics Global 2025 Q1 Earnings Misses Targets as Net Loss Widens 21.7%

Prenetics Global (PRE) reported its fiscal 2025 Q1 earnings on Jun 12th, 2025. The company's performance fell short of expectations with an increase in net loss, highlighting ongoing financial challenges. Despite this, Prenetics raised its full-year revenue guidance, reflecting confidence in its strategic initiatives. The company anticipates revenue between $80 million and $100 million, up from the previous forecast of $73 million to $85 million. This adjustment signals growing momentum across business units, particularly in the global consumer healthcare market.

Revenue
The total revenue of Prenetics Global increased by 170.0% to $17.31 million in 2025 Q1, up from $6.41 million in 2024 Q1.

Earnings/Net Income
Prenetics Global's losses deepened to $0.80 per share in 2025 Q1 from a loss of $0.70 per share in 2024 Q1 (14.3% wider loss). Meanwhile, the company's net loss widened to $-11.02 million in 2025 Q1, representing a 21.7% increase from the $-9.05 million loss recorded in 2024 Q1. The sustained losses over the years indicate ongoing financial headwinds.

Price Action
The stock price of Prenetics Global has dropped 5.98% during the latest trading day, has edged down 2.31% during the most recent full trading week, and has surged 52.76% month-to-date.

Post-Earnings Price Action Review
The strategy of buying PRE (Presidio Technology, Inc.) when revenue misses and holding for 30 days is highly speculative and not financially sound. Historically, timing the market based on revenue fluctuations is unpredictable and risky. Holding investments tends to be more beneficial than short-term market timing, even during revenue misses. Without detailed insights into PRE's financial health and market position, assessing the long-term impact of a revenue miss is challenging, making the strategy speculative. Holding a stock post-revenue miss exposes investors to volatility and potential declines, lacking risk management. A more prudent approach involves evaluating PRE's fundamentals to determine if revenue declines are temporary or indicative of long-term issues. If temporary, recovery is possible; if not, further losses could occur. In conclusion, buying PRE on revenue misses for short-term gains is not recommended. Investors should consider market trends, company fundamentals, and personal risk tolerance before investing, and consulting a financial advisor is advisable.

CEO Commentary
Danny Yeung, Chief Executive Officer and Co-Founder, remarked: “The first quarter of 2025 marked an exceptionally strong start for Prenetics, with financial performance that significantly surpassed expectations. Our strategic realignment towards the global consumer healthcare market is gaining tremendous traction. This strong start to the year is reflected in our revised full-year outlook, raising our revenue expectations to $80 to $100 million, reflecting accelerating momentum across our business units. IM8 has achieved remarkable success, attracting over 55,000 customers and demonstrating strong customer loyalty with a 91% subscription rate. Our robust financial foundation empowers us to continue innovation and growth in this transformative landscape.”

Guidance
For the full year 2025, Prenetics expects revenue to be between $80 million and $100 million, with the second quarter revenue for IM8 projected to reach approximately $8.5 million, indicating a 50% quarter-over-quarter increase. The company is also anticipating an adjusted EBITDA loss of $(13) million to $(15) million for the year while aiming for profitability by the end of Q4 2025.

Additional News
Prenetics Global is actively pursuing strategic initiatives beyond its earnings performance. The company is reportedly in discussions regarding its ownership stake in ACT Genomics, with an announcement expected soon. Additionally, Prenetics is exploring innovative treasury management strategies, including the adoption of Bitcoin and other digital assets, to optimize capital allocation and enhance shareholder value. These initiatives reflect Prenetics' commitment to leveraging emerging technologies to strengthen its market position and drive long-term growth. Furthermore, Prenetics' strategic partnerships and collaborations in the health sciences sector underscore its dedication to advancing consumer health and wellness through innovative solutions.