Perfect Moment Reports Strong Fiscal Q1 2026 Results

Perfect Moment Ltd. (NYSE American: PMNT) (“Perfect Moment” or the “Company”), the high-performance, luxury skiwear and lifestyle brand that fuses technical excellence with fashion-led designs, reported results for its fiscal first quarter 2026 ended June 30, 2025.

Financial Highlights

• Revenue up 51% to $1.5 million compared to $974,000 in Q1 FY25.
• Gross margin improved to a record 60.4%, up from 36.6% in Q1 FY25.
• Growth driven by the successful launch of new revenue streams, including collaboration and partnership revenues, alongside continued strength in ecommerce and wholesale channels.
• Adjusted EBITDA loss improved to $2.6 million compared to a loss of $2.9 million in Q1 FY25.

Management Commentary

“We are pleased to report another quarter of strong top-line growth and a substantial improvement in gross margin, reflecting the impact of our strategic initiatives to diversify revenue, elevate product mix, and optimize our supply chain,” said Jane Gottschalk, President and Principal Executive Officer of Perfect Moment. “The launch of our spring/summer capsule, expansion of our style count, and the introduction of partnership revenues have further strengthened our brand positioning and customer engagement globally.”

“Our record gross margin and 51% revenue growth reflect the successful execution of our growth and profitability strategy,” said Chath Weerasinghe, Chief Financial and Operating Officer of Perfect Moment. “We’re investing strategically in brand, infrastructure, and market expansion, while maintaining tight cost control — positioning Perfect Moment for sustained growth and profitability.”

Operational Highlights

• Expanded annual style count from approximately 75 to over 200.
• Implemented a tiered pricing architecture to enhance value perception and margins.
• Increased presence to over 60 countries, supported by ecommerce, premium wholesale accounts, and select retail and concession formats.
• Strategic collaborations and partnerships contributed meaningfully to revenue and brand visibility.

Marketing & Brand Highlights

Launched the limited-edition PERFECT MOMENT x BWT Alpine Formula One Team capsule collection, the first in a multi-year collaboration uniting motorsport energy with luxury performance wear, supported by a global media campaign, exclusive pop-up experiences at select Grands Prix, and a forthcoming ski capsule blending high-speed energy with high-altitude performance.
Subsequent Events

Opened a new European distribution hub in the Netherlands, replacing former UK and Hong Kong warehouses as part of a global logistics transformation designed to streamline operations, cut logistics touchpoints by over 50%, accelerate delivery timelines and drive meaningful long-term cost savings.
The Company received $3.4 million in funding from one of its principal stockholders to support working capital needs. The Company is in the process of formalizing the related agreement, which is expected to include an interest rate of 12.0% per annum and a maturity date of November 8, 2025.

Fiscal Q1 2026 Financial Summary

Total net revenue increased 51% to $1.5 million from $974,000 in the same year-ago quarter. The increase was driven by the launch of new revenue streams, which includes collaboration and partnership revenues, as well as continued strength in ecommerce and wholesale channels. The first fiscal quarter has historically been the Company’s lowest quarter of the year due to seasonality, representing less than 5% of the Company’s annual net revenues.

eCommerce net revenue increased 6% to $978,000 compared to $922,000 in the year-ago quarter.

Wholesale revenue increased significantly to $153,000 compared to $52,000 in the year-ago quarter.

Gross profit increased 150% to $889,000 from $356,000 in the year-ago quarter and gross margins were 60.4% compared to 36.6% in the year-ago period. The increase primarily reflects favorable channel mix, which includes growth in higher-margin revenue streams, and the Company’s ongoing focus on disciplined pricing and supply chain reengineering.

Total operating expenses increased 5% to $3.9 million from $3.8 million in the year-ago quarter. The increase was driven by higher marketing spend to support brand visibility and customer engagement initiatives, as well as modest SG&A growth reflecting strategic investments, professional fees, and higher personnel costs.

Net loss was $3.8 million, or $(0.21) per diluted share, compared to a net loss of $3.4 million, or $(0.22) per diluted share, in the year-ago period.

Adjusted EBITDA loss improved $331,000 to $2.6 million compared to $2.9 million in the year-ago quarter. The improvement in Adjusted EBITDA was primarily driven by the aforementioned increase in gross profit, reflecting higher revenue and significant gross margin expansion, largely from the addition of partnership revenue and improved channel and product mix.

Cash, cash equivalents and restricted cash totaled $3.0 million at June 30, 2025, compared to $7.5 million at March 31, 2025. The decrease was primarily due to an increase in cash used in operating activities.