Executive Summary
In Q1 2025, Perfect Moment reported revenue of 0.974 million USD, roughly flat year-over-year (-1.4%) but down sharply quarter-over-quarter (-79.9%), underscoring seasonality and the challenge of scaling a small brand. Gross profit rose to 0.356 million with a gross margin of 36.55%, yet operating expenses of 3.751 million produced an EBITDA loss of 3.278 million and a net loss of 3.389 million; EPS -0.22. Cash burn persisted with negative operating cash flow of 3.88 million and free cash flow of 3.944 million, while cash at period end stood at 3.952 million against a modest current ratio of 1.91. The balance sheet shows a durable liquidity position with limited debt but a heavy accumulated deficit (-52.37 million) and substantial inventory days outstanding (~294 days), indicating working capital inefficiencies that could constrain near-term profitability.
With no formal forward guidance in the QQ1 release, the company faces a high hurdle to profitability given fixed cost structure and a small revenue base. Any meaningful improvement will likely require a combination of accelerated revenue growth, particularly in direct-to-consumer channels, and aggressive opex discipline to convert scale into operating leverage. The brand’s long-term upside hinges on expanding DTC penetration, optimizing product mix, and maintaining tight cost controls in a competitive outdoor and athleisure market.
Key Performance Indicators
QoQ: -79.88% | YoY:-1.42%
QoQ: -77.68% | YoY:239.05%
QoQ: 37.02% | YoY:-25.32%
QoQ: 41.00% | YoY:-26.75%
QoQ: 59.26% | YoY:-29.41%
Key Insights
Revenue: 0.974m, YoY -1.4%, QoQ -79.9%; Gross Profit: 0.356m, Gross Margin 36.55%; Operating Income: -3.395m, Operating Margin -3.49%; Net Income: -3.389m, EPS -0.22; Cash flow: Operating Cash Flow -3.88m; Free Cash Flow -3.944m; Ending Cash: 3.952m; Current Ratio 1.912; Quick Ratio 1.467; Inventory Days 293.88; DSO 28.37; CCC 94.05 days; Total Debt 0.121m; Interest Expense 0.005m; Retained Earnings -52.365m; Total Assets 9.289m; Total Liabilities 4.558m; Equity 4.731m; P/S 34.55x; P/B 7.11x; P/...
Financial Highlights
Revenue: 0.974m, YoY -1.4%, QoQ -79.9%; Gross Profit: 0.356m, Gross Margin 36.55%; Operating Income: -3.395m, Operating Margin -3.49%; Net Income: -3.389m, EPS -0.22; Cash flow: Operating Cash Flow -3.88m; Free Cash Flow -3.944m; Ending Cash: 3.952m; Current Ratio 1.912; Quick Ratio 1.467; Inventory Days 293.88; DSO 28.37; CCC 94.05 days; Total Debt 0.121m; Interest Expense 0.005m; Retained Earnings -52.365m; Total Assets 9.289m; Total Liabilities 4.558m; Equity 4.731m; P/S 34.55x; P/B 7.11x; P/E negative; EV multiple -9.97; Capex 0.064m; Capex/Depreciation approx 0.6x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
974.00K |
-1.42% |
-79.88% |
| Gross Profit |
356.00K |
239.05% |
-77.68% |
| Operating Income |
-3.40M |
-25.32% |
37.02% |
| Net Income |
-3.39M |
-26.75% |
41.00% |
| EPS |
-0.22 |
-29.41% |
59.26% |
Key Financial Ratios
operatingProfitMargin
-349%
operatingCashFlowPerShare
$-0.25
freeCashFlowPerShare
$-0.25
Management Commentary
No earnings call transcript is available in the provided data. As a result, management remarks and thematic guidance are not captured; the analysis relies on reported QQ1 2025 results and quarterly/annual trend data. The following themes emerge from the numbers:
- Profitability remains the principal hurdle; fixed operating costs far exceed current revenue, resulting in an EBITDA loss of -3.278m and net loss of -3.389m.
- Liquidity appears adequate on a run-rate basis (current ratio ~1.9; cash end ~3.95m) but burn rate materially outpaces cash generation, implying a need for improved cash flow management or external financing if the revenue trajectory does not improve.
- Working capital efficiency is a concern given the elevated inventory days (~294) and modest payables turnover, suggesting potential capital commitment to product cycles and inventory risk if demand softens.
Forward Guidance
No formal guidance was provided for QQ2 2025 or beyond in the QQ1 2025 release. Investors should monitor: (1) revenue trajectory, especially DTC penetration and wholesale mix; (2) cost discipline to drive operating leverage, targeting a break-even revenue around roughly $10.3 million if fixed opex remains at current levels; (3) inventory management to reduce days of inventory toward mid- to low-100s; (4) cash runway and liquidity management, including potential working capital improvements and any financing arrangements; (5) gross margin trajectory as procurement and pricing power evolve in a competitive market.