Perfect Moment Reports Fiscal Q3 2026 Results
Profitability achieved with third consecutive quarter of gross margin and EBITDA improvement
Fiscal Q3 2026 Financial Highlights
-
Revenue was consistent with Q3 FY25 at approximately
$11.7 million . - Gross margin improved to 64.4%, up from 54.8% in Q3 FY25.
-
Total operating expenses decreased 9.9% to
$6.9 million compared to$7.7 million in Q3 FY25. -
Income from operations improved by approximately
$1.9 million to$583,000 compared to a loss from operations of$1.3 million in Q3 FY25. -
Net income improved by approximately
$2.6 million to$93,000 , or$0.00 per diluted share, compared to a net loss of$2.5 million , or$(0.15) per diluted share, in Q3 FY25. -
Adjusted EBITDA improved by
$1.6 million to$882,000 compared to an adjusted EBITDA loss of$671,000 in Q3 FY25.
Fiscal First Nine Months 2026 Financial Highlights
-
Revenue up 8.7% to
$17.9 million compared to$16.5 million in the year-ago period. - Gross margin improved to 62.7%, up from 53.6% in the year-ago period.
-
Total operating expenses decreased 7.7% to
$14.8 million compared to$16.1 million in the year-ago period. -
Loss from operations improved by approximately
$3.6 million to$3.6 million compared to$7.2 million in the year-ago period. -
Net loss improved by approximately
$3 million to$5.6 million , or$(0.21) per diluted share, compared to$8.6 million , or$(0.54) per diluted share, in the year-ago period. -
Adjusted EBITDA loss improved by
$3.1 million to$2.5 million compared to$5.6 million in the year-ago period.
Management Commentary
“Our third quarter reflects the transformational work we’ve executed across product, operations, supply chain and financial discipline, and we are clearly seeing these efforts reflected in our results,” said
Chath Weerasinghe, Chief Financial and Operating Officer of Perfect Moment, commented: “We delivered solid financial performance, including 9% revenue growth for the nine-month period compared to last year, supported by strong wholesale and partnership revenues. Quarterly gross margins expanded by 960 basis points to 64.4%, reflecting continued progress across product mix elevation, supply-chain optimization and disciplined execution. We are managing costs effectively as part of our restructuring efforts and remain confident in our ability to deliver lasting shareholder value.”
Recent Operational and Strategic Highlights
-
Expansion of European Manufacturing Partnerships: Expanded manufacturing footprint into
Europe , materially improving product quality and time-to-market, strengthening long-term brand durability by providing priority access and deeper factory alignment. -
Global Collaboration with H&M: In early
December 2025 , the Company launched its global collaboration with H&M, showcasing Perfect Moment’s après-ski offering through H&M’s e-Commerce platform and in 86 high-traffic stores worldwide. The collection performed well and sold out within the first day, significantly expanding brand reach across a broad and aspirational customer base. -
Physical Retail Footprint Expansion: Opened its first owned retail store in Verbier,
Switzerland , and confirmed seasonal pop-up locations in Kitzbühel, Gstaad, Jackson Hole andAspen , serving as strategically important hubs for high-intent customer acquisition.
Marketing & Brand Highlights
- Appointment of Sharifa AlSudairi as Brand Ambassador: Appointed Saudi Arabia’s first female Alpine skier as brand ambassador, bringing competitive credibility and a pioneering spirit to the Company’s global community.
- Launch of Perfect Moment x BWT Alpine F1 Team Winter Capsule: Launched its winter capsule featuring the first-ever fashion campaign filmed inside an active Formula 1 wind tunnel at Alpine’s Enstone facility, blending motorsport engineering with high-performance winter apparel.
Fiscal Q3 and First Nine Months 2026 Financial Summary
Third quarter total net revenue was consistent compared to the year-ago quarter at approximately
Third quarter eCommerce net revenue decreased 21% to
Third quarter wholesale revenue increased 15.4% to
Third quarter gross profit increased 17.5% to
Third quarter total operating expenses decreased 9.9% to
Third quarter income from operations improved by approximately
Third quarter net income was
Third quarter adjusted EBITDA improved by
Balance Sheet Highlights
The Company’s liquidity position at
Inventory of
Short-term borrowing facilities outstanding as of
Conference Call
The Company will hold a conference call today at
Date:
Time:
Toll-free dial-in number: 1-877-407-9716
International dial-in number: 1-201-493-6779
Conference ID: 13757770
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
The conference call will be broadcast live and available for replay here and via the Events section of the Perfect Moment investor relations website here.
A replay of the conference call will be available after
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13757770
About
Founded in
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Amounts in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
|
Three
|
|
Three
|
|
Nine Months
|
|
Nine Months
|
||||||||
|
|
|
|
|
|
|
|
|
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||||||||
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Revenues, net: |
|
$ |
11,656 |
|
|
$ |
11,658 |
|
|
$ |
17,891 |
|
|
$ |
16,466 |
|
|
Cost of sales |
|
|
4,148 |
|
|
|
5,269 |
|
|
|
6,674 |
|
|
|
7,647 |
|
|
Gross profit |
|
|
7,508 |
|
|
|
6,389 |
|
|
|
11,217 |
|
|
|
8,819 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
|
5,639 |
|
|
|
6,649 |
|
|
|
12,649 |
|
|
|
13,871 |
|
|
Marketing and advertising expenses |
|
|
1,286 |
|
|
|
1,034 |
|
|
|
2,177 |
|
|
|
2,192 |
|
|
Total operating expenses |
|
|
6,925 |
|
|
|
7,683 |
|
|
|
14,826 |
|
|
|
16,063 |
|
|
Income (loss) from operations |
|
|
583 |
|
|
|
(1,294 |
) |
|
|
(3,609 |
) |
|
|
(7,244 |
) |
|
Interest expense |
|
|
(455 |
) |
|
|
(1,046 |
) |
|
|
(1,963 |
) |
|
|
(1,241 |
) |
|
Foreign currency transaction (loss)/gain |
|
|
(35 |
) |
|
|
(142 |
) |
|
|
6 |
|
|
|
(129 |
) |
|
Total other expense, net |
|
|
(490 |
) |
|
|
(1,188 |
) |
|
|
(1,957 |
) |
|
|
(1,370 |
) |
|
Net income (loss) |
|
$ |
93 |
|
|
$ |
(2,482 |
) |
|
$ |
(5,566 |
) |
|
$ |
(8,614 |
) |
|
Dividends on Series AA Convertible Preferred Stock |
|
|
(161 |
) |
|
|
- |
|
|
|
(481 |
) |
|
|
- |
|
|
Net income (loss) attributable to common shareholders, basic and diluted |
|
$ |
(68 |
) |
|
$ |
(2,482 |
) |
|
$ |
(6,047 |
) |
|
$ |
(8,614 |
) |
|
Basic and diluted income (loss) per share attributable to common shareholders |
|
$ |
0.00 |
|
|
$ |
(0.15 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.54 |
) |
|
Basic and diluted weighted-average number of shares outstanding |
|
|
35,221,933 |
|
|
|
16,177,559 |
|
|
|
29,170,240 |
|
|
|
15,869,964 |
|
|
Other comprehensive income (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income (loss) |
|
$ |
93 |
|
|
$ |
(2,482 |
) |
|
$ |
(5,566 |
) |
|
$ |
(8,614 |
) |
|
Foreign currency translation gain (loss) |
|
|
89 |
|
|
|
(28 |
) |
|
|
(45 |
) |
|
|
(21 |
) |
|
Comprehensive income (loss) |
|
$ |
182 |
|
|
$ |
(2,510 |
) |
|
$ |
(5,611 |
) |
|
$ |
(8,635 |
) |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) |
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|
|
|
|
||||
|
|
|
unaudited |
|
|
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Assets |
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,567 |
|
|
$ |
6,159 |
|
|
Restricted cash |
|
|
- |
|
|
|
1,350 |
|
|
Accounts receivable, net |
|
|
5,125 |
|
|
|
886 |
|
|
Inventories, net |
|
|
4,593 |
|
|
|
1,567 |
|
|
Prepaid and other current assets |
|
|
1,965 |
|
|
|
2,812 |
|
|
Total current assets |
|
|
13,250 |
|
|
|
12,774 |
|
|
Long term assets: |
|
|
|
|
|
|
||
|
Operating lease right of use assets |
|
|
18 |
|
|
|
44 |
|
|
Property and equipment, net |
|
|
421 |
|
|
|
483 |
|
|
Other non-current assets |
|
|
107 |
|
|
|
36 |
|
|
Total assets |
|
$ |
13,796 |
|
|
$ |
13,337 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
|
||
|
Trade payables |
|
$ |
3,659 |
|
|
$ |
2,594 |
|
|
Accrued expenses |
|
|
3,760 |
|
|
|
4,233 |
|
|
Trade finance facility |
|
|
- |
|
|
|
2,495 |
|
|
Short-term borrowings, net |
|
|
- |
|
|
|
1,851 |
|
|
Note payable - related party, current, net |
|
|
3,319 |
|
|
|
- |
|
|
Operating lease obligations |
|
|
16 |
|
|
|
44 |
|
|
Deferred revenue |
|
|
380 |
|
|
|
264 |
|
|
Total current liabilities |
|
|
11,134 |
|
|
|
11,481 |
|
|
Long term liabilities: |
|
|
|
|
|
|
||
|
Note payable - related party, long-term, net |
|
|
1,605 |
|
|
|
- |
|
|
Total liabilities |
|
|
12,739 |
|
|
|
11,481 |
|
|
Shareholders’ equity: |
|
|
|
|
|
|
||
|
Series AA convertible preferred stock, |
|
|
- |
|
|
|
- |
|
|
Common stock; |
|
|
3 |
|
|
|
2 |
|
|
Additional paid-in capital |
|
|
71,604 |
|
|
|
66,793 |
|
|
Accumulated other comprehensive loss |
|
|
(68 |
) |
|
|
(23 |
) |
|
Accumulated deficit |
|
|
(70,482 |
) |
|
|
(64,916 |
) |
|
Total shareholders’ equity |
|
|
1,057 |
|
|
|
1,856 |
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
13,796 |
|
|
$ |
13,337 |
|
Use Of Non-GAAP Measures
In addition to our results under generally accepted accounted principles (“GAAP”), we present Adjusted EBITDA as a supplemental measure of our performance. However, Adjusted EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Adjusted EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, financing costs and changes in fair value of derivative liability.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations in that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Adjusted EBITDA
|
|
|
Three months ended
|
|
Nine months ended
|
|||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net income (loss), as reported |
|
$ |
93 |
|
$ |
(2,482 |
) |
|
$ |
(5,566 |
) |
|
$ |
(8,614 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest expense |
|
|
455 |
|
|
1,046 |
|
|
|
1,963 |
|
|
|
1,241 |
|
|
Stock compensation expense |
|
|
145 |
|
|
386 |
|
|
|
391 |
|
|
|
1,098 |
|
|
Amortization of stock-based marketing services |
|
|
116 |
|
|
308 |
|
|
|
455 |
|
|
|
419 |
|
|
Depreciation and amortization |
|
|
73 |
|
|
71 |
|
|
|
272 |
|
|
|
282 |
|
|
Total EBITDA adjustments |
|
|
789 |
|
|
1,811 |
|
|
|
3,081 |
|
|
|
3,040 |
|
|
Adjusted EBITDA |
|
$ |
882 |
|
$ |
(671 |
) |
|
$ |
(2,485 |
) |
|
$ |
(5,574 |
) |
We present adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts, and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:
- Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the Adjusted EBITDA does not reflect any cash requirements for such replacements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212210127/en/
Investor Relations Contact:
949.574.3860
PMNT@gateway-grp.com
Press Contact:
press@perfectmoment.com
Source:
