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PM

Perfect Moment Ltd. (PMNT)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY2026 delivered a clean beat on revenue and EBITDA vs S&P Global consensus, with revenue up 24% YoY to $4.76M and gross margin up ~610 bps YoY to 60.1% on mix/pricing and supply chain reengineering .
  • Operating loss improved to $(1.14)M from $(2.56)M YoY as total OpEx fell 14% to $4.00M; net loss narrowed to $(1.84)M or $(0.06) per share .
  • Management emphasized a “path to profitability,” citing an “agile supply chain model,” disciplined cost control, and a full‑price DTC strategy; heading into peak winter with strong momentum and a healthier balance between channels .
  • Strategic catalysts: H&M global collaboration launching Dec 2, 2025; Verbier flagship opening; continuing Alpine F1 activations—supporting brand reach and premium positioning .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue growth and margins: Revenue +24% YoY to $4.76M; gross margin expanded to 60.1% (+610 bps YoY) on favorable mix/pricing and supply chain reengineering .
    • Operating leverage: OpEx down 14% to $4.00M; operating loss improved to $(1.14)M vs $(2.56)M YoY .
    • Brand/Distribution catalysts: H&M x Perfect Moment global capsule (Dec 2 launch) and Verbier flagship opening; management touts “strong momentum” into winter .
    • Management quote: “We delivered strong top-line growth, expanded margins, and significantly improved operating performance” – Jane Gottschalk .
    • Management quote: “Over-600-basis point gross margin improvement… and an agile supply chain model” – CFO/COO Chath Weerasinghe .

  • What Went Wrong

    • eCommerce reduced by design: eCommerce net revenue fell 71% YoY to $0.3M due to a strategic shift away from discounted online sales to full‑price, pressuring DTC volume near term .
    • Liquidity working capital strain: Accounts receivable rose to $4.76M from $0.89M at Mar 31, 2025 (timing) while cash fell to $0.39M; management expects collections and shipments in Q3 to ease liquidity .
    • Interest expense increased: Quarterly interest expense rose to $(0.73)M vs $(0.19)M YoY, contributing to net loss despite operating improvements .

Financial Results

Revenue, EPS, Margins, Profitability vs prior periods and consensus

MetricQ2 2025 (oldest)Q1 2026Q2 2026 (latest)Consensus Q2 2026Surprise vs Cons.
Revenue ($USD Millions)$3.83 $1.47 $4.76 $4.27*+$0.49 (+11.6%)*
Diluted EPS ($)$(0.17) $(0.21) $(0.06) NA*NA*
Gross Margin (%)54.0% 60.4% 60.1% NA*NA*
Operating Expenses ($USD Millions)$4.63 $3.94 $4.00 NA*NA*
Operating Income (Loss) ($USD Millions)$(2.56) $(3.06) $(1.14) NA*NA*
Adjusted EBITDA ($USD Millions)$(2.00) $(2.58) $(0.79) $(1.57)*+$0.78 (better)*

Channel/segment breakdown

ChannelQ2 2025 (oldest)Q1 2026Q2 2026 (latest)
eCommerce Net Revenue ($USD Millions)$1.16 $0.98 $0.30
Wholesale Revenue ($USD Millions)$2.68 $0.15 $4.30

Additional P&L detail

MetricQ2 2025 (oldest)Q1 2026Q2 2026 (latest)
Gross Profit ($USD Millions)$2.07 $0.89 $2.86
Net Income (Loss) ($USD Millions)$(2.74) $(3.82) $(1.84)

Balance sheet / operating KPIs

KPIQ2 2025 (9/30/24)Q1 2026 (6/30/25)Q2 2026 (9/30/25)
Cash & Cash Equivalents ($USD Millions)$0.73 $2.99 $0.39
Restricted Cash ($USD Millions)$1.83 $— $—
Accounts Receivable, net ($USD Millions)$2.46 $0.54 $4.76
Inventories, net ($USD Millions)$5.33 $1.39 $6.74
Short-term Borrowings, net ($USD Millions)$1.78 $1.69 $0.60

Non-GAAP note: Adjusted EBITDA excludes interest, depreciation and amortization, stock-based compensation, and certain financing/marketing amortizations per company definitions and reconciliations .

Estimates note: Items marked with * use S&P Global consensus/actuals retrieved via SPGI; Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueWinter 2025–2026Not providedDirectional: continued revenue growth expectedMaintained qualitative only
Gross MarginWinter 2025–2026Not providedDirectional: improved operating leverage expectedMaintained qualitative only
OpEx, OI&E, Tax, Segment, Dividendsn/aNot providedNot providedn/a

Management offered qualitative outlook into peak winter season but provided no numeric guidance ranges .

Earnings Call Themes & Trends

Note: No Q2 FY2026 earnings call transcript was found in filings; themes below draw from company press releases for Q-2, Q-1, and current quarter.

TopicPrevious Mentions (Q-2: Q3 FY2025; Q-1: Q1 FY2026)Current Period (Q2 FY2026)Trend
Supply chain/logisticsOpened first U.S. distribution center in Dallas; cited margin benefits and lower duty/shipping costs . New EU hub (Netherlands) announced July 7, 2025 to cut logistics touchpoints >50% .Management cites “agile supply chain model” and continued reengineering driving margin expansion .Improving; structural initiatives compounding .
Channel mix/full‑price strategyE-commerce steady in Q3 FY2025; retail stores launched; mix optimizations underway .eCommerce down 71% YoY by design (less discounting) while wholesale +61% YoY; total revenue +24% YoY .Deliberate DTC normalization; stronger wholesale backbone .
Collaborations/brand partnershipsJohnnie Walker collaboration and broad co‑marketing in Q3 FY2025 .H&M x Perfect Moment global collaboration set for Dec 2, 2025; ongoing Alpine F1 activations .Expanding brand reach/awareness .
Retail footprintSeasonal stores in New York SoHo and Kitzbühel opened in Q3 FY2025 .Verbier flagship opened Nov 5, 2025 (alpine luxury destination) .Selective flagship strategy continues .
MarginsQ3 FY2025 GM 54.8% (+273 bps YoY) on supply chain improvements . Q1 FY2026 GM 60.4% (record) .GM 60.1%, +610 bps YoY on mix/pricing/supply chain .Sustained high-50s to low-60s GM trajectory .
Liquidity/fundingQ3 FY2025 cash $4.1M; financing-driven increase .Private financing in Aug 2025: $1.49M subscription, equity + warrants; registration rights; anti‑dilution protections . AR build timing expected to convert post‑quarter .Working capital tight, financed; collections a near-term swing factor .
AI/tech initiativesPrior year Q2 2025 referenced AI-generated scene in AW24 campaign .Not highlighted in Q2 2026 materials.Not a current focus .

Management Commentary

  • Strategic posture: “We are building a profitable, global luxury lifestyle brand… entering the key winter season with strong momentum, a disciplined balance sheet, and a sharper operating model designed for sustainable growth.” – Jane Gottschalk .
  • Operating leverage/margins: “Over-600-basis point gross margin improvement… reduced overhead… and an agile supply chain model” – Chath Weerasinghe .
  • Brand catalysts: H&M collaboration (Dec 2), Verbier flagship, Alpine F1 activations to broaden reach and introduce new customers at scale .
  • Profitability pathway: Emphasis on disciplined pricing, channel mix, and cost realignment under the financial restructuring .

Q&A Highlights

  • No Q2 FY2026 earnings call transcript was available in company filings, so no management Q&A to summarize for the period.

Estimates Context

  • Revenue: Beat S&P Global consensus ($4.27M*) with $4.76M actual; beat of ~$0.49M (~11.6%)* .
  • EBITDA: Outperformed S&P Global consensus (EBITDA $(1.57)M*) with Adjusted EBITDA $(0.79)M) and SPGI EBITDA actual $(1.07)M*, indicating better underlying operating performance than expected .
  • EPS: No consensus EPS available via S&P Global for the quarter; reported $(0.06) .

Estimates note: Items marked with * use S&P Global consensus/actuals retrieved via SPGI; Values retrieved from S&P Global.

Key Takeaways for Investors

  • Mix-led margin expansion appears durable: GM sustained ~60% for two consecutive quarters (Q1: 60.4%; Q2: 60.1%) on supply chain reengineering and disciplined pricing .
  • Clean top-line/EBITDA beat vs S&P Global consensus underlines early operating leverage as wholesale strength offsets planned DTC discount pullback .
  • Near-term liquidity timing watch: Elevated AR ($4.76M) and low quarter-end cash ($0.39M) point to collections/shipment conversion as a key near-term swing factor; management expects relief post-quarter .
  • Brand reach accelerants (H&M global capsule; Verbier flagship; F1 activations) could drive demand into peak season and broaden customer acquisition at attractive CACs .
  • Cost discipline evident: OpEx down 14% YoY with continued focus on overhead and marketing phasing; operating loss improved ~55% YoY .
  • Watch interest burden and capital structure: Higher interest expense ($0.73M) persisted; recent financing adds equity/warrant overhang but supports working capital needs .
  • Setup into Q3 (holiday/winter) is favorable given wholesale order strength and logistics gains; absence of formal guidance increases importance of intra-quarter demand checks and AR collections cadence .

Sources: Company filings and press releases as cited. All figures in USD.

  • Q2 FY2026 press release and financial statements .
  • Q1 FY2026 press release and financial statements .
  • Q3 FY2025 press release and financial statements .
  • Q2 FY2025 press release and financial statements .
  • EU distribution hub press release (Netherlands) .
  • August 27, 2025 financing and registration rights documents .

Estimates note: Items marked with * use S&P Global consensus/actuals retrieved via SPGI; Values retrieved from S&P Global.