Sign in

You're signed outSign in or to get full access.

PM

Perfect Moment Ltd. (PMNT)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue grew 51% year over year to $1.47M, driven by new partnership/collaboration revenue; gross margin reached a record 60.4% vs 36.6% a year ago, while net loss was $(3.82)M and adjusted EBITDA loss improved to $(2.58)M .
  • Channel mix and new revenue streams (partnerships) underpinned margin expansion; eCommerce rose 6% YoY to $0.98M, wholesale to $0.15M, and partnership revenue was $0.30M in its first comparable period .
  • Liquidity remains tight: cash fell to $3.0M at 6/30/25; subsequent to quarter end, the company received $3.39M in related-party funding (expected 12% interest, initially maturing Nov 8, 2025) to support working capital .
  • Strategic catalysts: logistics overhaul (new EU distribution hub in the Netherlands) aimed at cutting logistics touchpoints by >50% and lowering costs, plus brand collaborations (e.g., BWT Alpine F1) to broaden reach—supporting the margin narrative into peak winter quarters .

What Went Well and What Went Wrong

  • What Went Well

    • Record gross margin of 60.4% (vs 36.6% YoY) on favorable mix and new partnership revenue; management highlighted diversification, pricing discipline, and supply chain reengineering as drivers .
    • eCommerce and wholesale both grew YoY; partnership/collaboration revenue added $0.30M, indicating early traction of the new revenue stream .
    • Logistics transformation: opened EU distribution hub in the Netherlands to reduce touchpoints from ~11 to ~5 and drive long-term cost efficiencies; management characterized it as a “cornerstone” for scalable growth .

  • What Went Wrong

    • Net loss widened YoY to $(3.82)M from $(3.39)M; interest expense increased to $0.78M reflecting higher borrowing costs and financing structure .
    • Cash decreased to $3.0M from $7.5M at 3/31/25 due to operating cash use; going concern language underscores reliance on external financing .
    • Working-capital pressure persists with deferred revenue increasing and continued need for financing facilities/related-party notes to bridge seasonality and growth .

Financial Results

Key P&L metrics (oldest → newest)

MetricQ1 2025Q3 2025Q4 2025Q1 2026
Revenue ($USD)$0.974M $11.658M $5.035M*$1.472M
Gross Margin %36.6% 54.8% 31.98%*60.4%
Net Income ($USD)$(3.388)M $(2.482)M $(7.325)M*$(3.819)M
Diluted EPS ($)$(0.22) $(0.15) $(0.4394)*$(0.21)
Adjusted EBITDA ($USD)$(2.907)M $(0.671)M $(6.500)M*$(2.576)M

Values retrieved from S&P Global.*

Q1 2026 vs comps

MetricYoY vs Q1 2025Seq vs Q4 2025
Revenue+51% (to $1.472M) −71% vs $5.035M*
Gross Margin %+2,380 bps (60.4% vs 36.6%) +2,842 bps vs 31.98%*
Net Income ($)Loss widened by $0.43M (to $(3.819)M) Loss improved by $3.51M vs $(7.325)M*
Diluted EPS ($)+$0.01 (to $(0.21)) +$0.23 vs $(0.4394)*

Segment/channel mix (Q1 2026 vs Q1 2025)

ChannelQ1 2025Q1 2026YoY
Ecommerce ($)$0.922M $0.978M +6%
Wholesale ($)$0.052M $0.153M +194%
Retail ($)$0.000M $0.037M n/m
Partnership ($)$0.000M $0.304M n/m
Total Revenue ($)$0.974M $1.472M +51%

Geography mix (Q1 2026)

RegionRevenue ($)
United States$0.544M
Europe ex-UK$0.381M
United Kingdom$0.364M
Rest of World$0.183M

Select KPIs and balance sheet (quarter-end)

KPIQ1 2025Q1 2026
Cash & Cash Equivalents ($)n/a$2.986M
Deferred Revenue ($)n/a$0.807M
Inventories, net ($)n/a$1.387M
Accounts Receivable, net ($)n/a$0.544M
Countries with presence>60 >60
Annual style count~75 (prior) >200

Guidance Changes

The company did not issue formal quantitative guidance for revenue, margins, or EPS.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Gross MarginFY26NoneManagement expects continued margin improvement tied to channel mix, partnerships, and logistics efficienciesQualitative positive
Operating Costs/LogisticsFY26NoneNew EU hub expected to reduce touchpoints (>50%) and lower costs over timeQualitative positive

Earnings Call Themes & Trends

(No Q1 FY26 earnings call transcript was filed; themes compiled from press releases and 10-Q/8-K disclosures.)

TopicPrevious Mentions (Q3 FY25 and Q4 FY25)Current Period (Q1 FY26)Trend
Supply chain/logisticsOpened U.S. DC (Dallas); anticipated gross margin improvement from logistics Opened EU hub in Netherlands; cut touchpoints from ~11 to ~5; aim to lower logistics costs Improving efficiency/costs
Partnerships/collabsHugo Boss collaboration ended; launched Johnnie Walker program Partnerships contributed $0.304M; launched BWT Alpine F1 capsule Building new streams
Channel mixQ3 FY25 wholesale −6% YoY; eCom −1% YoY Q1 FY26 eCom +6% YoY; wholesale +194% YoY; partnership ramp Mix shifting favorable
Margin trajectoryQ3 FY25 GM 54.8% (+273 bps YoY) Record GM 60.4% (+2,380 bps YoY) Upward
Liquidity/financingCash $4.1M at 12/31/24; financing activities aided liquidity Cash $3.0M; received $3.39M related-party funding post-Q; going concern disclosures Ongoing reliance
GeographyU.S. >40% of FY24 revenue (context) U.S. $0.544M in Q1 FY26; broader EU/U.K. presence U.S./EU remain key
Legal/listingNYSE noncompliance notice & plan accepted (Dec 2024/March 2025) Plan continues; monitoring; not immediate listing effect Neutral risk continues

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.” — Jane Gottschalk, President & PEO .
  • “We’re investing strategically in brand, infrastructure, and market expansion, while maintaining tight cost control — positioning Perfect Moment for sustained growth and profitability.” — Chath Weerasinghe, CFO & COO .
  • “The new distribution facility is a cornerstone of our broader operational transformation…accelerate delivery timelines and significantly reduce complexity.” — Max Gottschalk, Chairman .
  • “We’re building a modern, agile supply chain…These improvements position Perfect Moment with greater operational strength and agility as we head into the important fall and winter seasons.” — Chath Weerasinghe .

Q&A Highlights

  • No earnings call transcript for Q1 FY26 was filed; no Q&A disclosures available [ListDocuments showed none].

Estimates Context

  • S&P Global consensus: Not available for Q1 FY26 EPS or revenue; S&P reported actuals only and no consensus benchmarks, so a beat/miss assessment vs Street is unavailable. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin story is working: record 60.4% gross margin on mix and partnerships; if sustained into peak quarters, this is a key re-rating lever .
  • New revenue streams are scaling: $0.30M partnership revenue alongside eCom/wholesale growth suggests a broader monetization engine beyond seasonal skiwear .
  • Liquidity risk remains central: cash declined to $3.0M; the company secured $3.39M related-party funding post-Q; going concern language persists—watch financing cadence and ELOC/notes updates for dilution risk .
  • Logistics overhaul is a medium-term margin catalyst: EU hub should compress touchpoints and costs, supporting gross margin and delivery speed into winter .
  • Seasonal uplift ahead: Q2–Q4 are historically stronger; track wholesale shipment timing and retail contribution as inventory builds for winter sell-through .
  • Legal/listing overhang: NYSE compliance plan in place; monitor quarterly progress and any legal developments (PR/consultant claim; former CEO dispute) for headline risk .
  • Near-term positioning: Positive momentum on margin and channel mix vs tight liquidity—near-term trading likely driven by winter demand execution, gross margin durability, and financing updates .

Additional Data Sources

  • Q1 FY26 8-K press release and financials .
  • Q1 FY26 10-Q (financial statements and MD&A) .
  • Logistics transformation press release (EU hub) .
  • Q3 FY25 8-K press release for trend context .

Values retrieved from S&P Global.*