Executive Summary

Seasonal rebound but down y/y: revenue rose 204% q/q to $11.7M on winter seasonality, but fell 8% y/y; gross margin expanded 273 bps to 54.8% on supply-chain and duty-cost initiatives .
Profitability mixed: operating expenses rose 30% y/y to $7.7M; net loss was $(2.5)M, or $(0.15) per diluted share; Adjusted EBITDA was $(0.67)M, down from +$1.75M a year ago .
Mix headwind abating: collaboration revenue fell $1.1M due to the end of the Hugo Boss program; eCommerce gross revenue grew 7% y/y, and new retail stores contributed $0.52M in Q3 .
Leadership reset and distribution build-out: CEO and prior CFO were terminated Jan 31; PMNT appointed a new CFO/COO (ex-Canada Goose) and named its CCO as President; management expects further gross-margin improvements near term and into FY26 as U.S. distribution scales and Europe strategy is reviewed .
Liquidity and risk: cash, equivalents and restricted cash were $4.1M at Dec 31; accrued expenses included $1.14M of delinquent payroll taxes; prior filings include a going-concern qualification, underscoring the importance of execution and access to capital .

What Went Well and What Went Wrong

What Went Well
- Gross margin improved 273 bps to 54.8% on distribution and cost initiatives; management “anticipate[s] continued gross margin improvement in the current quarter, and ultimately significant improvement for the full year” .
- Established owned retail presence (SoHo and Kitzbühel), contributing $516K in Q3 and supporting brand engagement and DTC economics .
- Marketing efficiency: marketing expenses down ~30% y/y in Q3; eCommerce gross revenue +7% y/y; wholesale phased to match demand .
What Went Wrong
- Top-line still below prior year: revenue down 8% y/y on collaboration headwinds; Adjusted EBITDA swung to $(0.67)M from +$1.75M y/y .
- Operating expenses +30% y/y to $7.7M, pressuring operating income to $(1.29)M despite gross-margin gains .
- Balance sheet strain persists: accrued expenses include $1.14M of delinquent payroll taxes; prior going-concern qualification remains a risk factor .

Financial Results

Overall P&L and cash metrics

Metric	Q1 FY2025 (Jun 30, 2024)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
Revenue ($M)	$0.974	$3.833	$11.658
Gross Profit ($M)	$0.356	$2.071	$6.389
Gross Margin (%)	36.6%	54.0%	54.8%
Total Operating Expenses ($M)	$3.751	$4.628	$7.683
Operating Income (Loss) ($M)	$(3.395)	$(2.557)	$(1.294)
Net Income (Loss) ($M)	$(3.388)	$(2.744)	$(2.482)
Diluted EPS ($)	$(0.22)	$(0.17)	$(0.15)
Adjusted EBITDA ($M)	$(2.907)	$(1.996)	$(0.671)
Cash, Equivalents & Restricted Cash ($M)	$4.0	$2.6	$4.1

Channel/segment breakdown – Q3 y/y

Metric ($000s)	Q3 FY2024	Q3 FY2025
Wholesale Revenue	7,829	7,335
Collaborations Revenue	1,145	91
eCommerce Revenue	3,752	3,716
Retail Revenue	0	516
Total Revenue	12,726	11,658
Gross Margin (%)	52.1%	54.8%

KPIs and brand reach

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025
Social followers	387,000	388,000	408,900
KOL social audience reached	134M	203M	299M
UVPM (global digital media reach)	1.4B	1.2B	6.9B

Additional balance sheet callouts (Dec 31, 2024): inventories $4.48M; accounts receivable $2.75M; trade finance facility $2.70M; convertible note $2.00M; accrued expenses include $1.143M delinquent payroll taxes; shareholders’ equity $0.91M .

Guidance Changes

Metric / Topic	Period	Previous Guidance	Current Guidance	Change
Gross margin trajectory	Q4 FY2025; FY2025	Q2: “anticipate…gross margins…to improve substantially y/y” with U.S. distribution live	“Anticipate continued gross margin improvement in the current quarter, and ultimately significant improvement for the full year”	Maintained (qualitative)
U.S. distribution center flow-through	FY2026 (Wholesale)	Q2: all U.S. eCommerce flowing in FY25; U.S. wholesale to run through DC in FY26	Confirms U.S. wholesale to begin flowing through DC in FY26; eCommerce already flowing	Maintained
Europe distribution strategy	FY2026	Q2: reviewing European distribution to improve margins	Reiterated review of European distribution strategies to improve margins in FY26	Maintained
Revenue/EBITDA/tax/dividend	—	—	No quantitative guidance provided in Q3 release	—

Earnings Call Themes & Trends

Note: No Q3 FY2025 earnings-call transcript was filed in our document set; themes below reflect management commentary from press materials.

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Supply chain & distribution	Partnered with Quiet Platforms; plan U.S. DC to lower duties and shipping costs; expect margin lift in 2H FY25	U.S. DC opened Oct; eCommerce flowing; margin up 273 bps; wholesale to route via DC in FY26; Europe review underway	Execution progressing; margin benefits materializing
Gross margin	Q1 discounting and returns compressed GM to 36.6% ; Q2 GM 54.0% (timing/mix) -	GM 54.8%; mgmt expects continued improvement near term and for FY	Improving
Product & category expansion	Summer capsule and resale program launched -	Accessories expansion (puffer totes, sunglasses) to broaden beyond on-slope -	Expanding lifestyle/outerwear mix
Marketing & brand reach	Strong KOL and media reach in off-season	Johnnie Walker x PM co-marketing; 299M KOL reach; 6.9B UVPM -	Elevated global reach
Retail footprint	Exploring pop-ups and year-round stores	Opened SoHo and Kitzbühel; $516K Q3 contribution	Building DTC presence
Leadership/ops	Q2 under prior CEO/CFO	New CFO/COO (ex-Canada Goose), CCO elevated to President; CEO & prior CFO terminated Jan 31 -	New team to drive ops/margins -
Collaborations	Hugo Boss program ended (headwind) -	New Diageo/Johnnie Walker activation offsets partially	Transitioning to new partners

Management Commentary

“Fiscal Q3 was a milestone quarter…launch of our first retail stores in New York and London…These new stores contributed $516,000 in the quarter.” — Jane Gottschalk, President & CCO .
“We…lowered our marketing expenses by 30% versus the same year-ago quarter…improved our supply chain operations…[and] expanded our global brand awareness.” — Jane Gottschalk .
“Our first U.S. distribution center…enabled us to improve operating efficiency…lower duty cost and reduce outbound and return shipping cost…As a result…gross margin improved 273 basis points in the fiscal third quarter. We anticipate continued gross margin improvement in the current quarter, and ultimately significant improvement for the full year.” — Jane Gottschalk .
“Chath Weerasinghe [CFO/COO]…brings…expertise in scaling businesses, optimising margins, and executing operational strategies…Vittorio Giacomelli…[will] achieve improved quality, greater efficiency and margin improvement.” — Leadership changes release -.

Q&A Highlights

No Q3 FY2025 earnings-call transcript was found in the company’s filings or our document catalog; Q&A highlights are therefore unavailable. Management priorities and clarifications cited above are drawn from the press release and related 8‑K disclosures - -.

Estimates Context

Wall Street consensus (S&P Global) for Q3 FY2025 revenue/EPS/EBITDA was unavailable via our feed at this time; as a result, we cannot assess beats/misses versus consensus. Values would typically be sourced from S&P Global; due to unavailability, comparisons to estimates are omitted.

Key Takeaways for Investors

Margin inflection underway: tangible GM improvement from U.S. distribution changes (and duty/shipping reductions) now visible; management guides to continued improvement into Q4 and full year, a potential near-term stock catalyst if sustained .
Seasonal strength moderated by mix shift: core retail/eCommerce/wholesale held roughly flat ex-collaborations; the Hugo Boss roll-off remains the key y/y headwind while new brand activations partially offset .
Operating discipline needed: opex growth (+30% y/y) and negative Adjusted EBITDA underscore the need for cost control and scale; watch Q4 leverage as higher seasonal volumes move through the model .
Leadership transition is a double-edged sword: new CFO/COO and product/sourcing leadership (ex‑Canada Goose) bring margin and ops expertise; execution and stability post-CEO/CFO terminations will be critical to restore investor confidence - -.
Liquidity/watchlisting risk: low equity base and accrued delinquent payroll taxes highlight balance-sheet fragility; prior going-concern qualification elevates financing/execution risk—monitor subsequent capital actions and cash burn .
Distribution/wholesale catalysts: multiple new sales-agency partnerships across North America, Europe and Japan plus retail expansion could support AW25 bookings and FY26 wholesale momentum - -.

Appendix: Prior-Quarter Context (for trajectory)

Q2 FY2025: revenue $3.83M (−35% y/y), GM 54.0%, net loss $(2.74)M, Adj. EBITDA $(2.00)M; seasonal ramp began; U.S. DC opened in Oct; set expectations for margin improvement in 2H FY25 - -.
Q1 FY2025: revenue $0.97M (−1% y/y), GM 36.6% on discounting and returns, net loss $(3.39)M, Adj. EBITDA $(2.91)M; set foundation for distribution upgrade and retail pilots -.

Citations:

Q3 FY2025 results press release and exhibits
Q2 FY2025 results press release
Q1 FY2025 results press release
Leadership changes and sales-agency press releases (Q3 FY2025 period) - - -

Perfect Moment Ltd. (PMNT)·Q3 2025 Earnings Summary