Executive Summary
PMNT reported a mixed QQ3 2025 performance characterized by a strong seasonal revenue rebound and persistent profitability challenges. Revenue for the quarter stood at $11.66 million, up 204.15% QoQ but down 8.39% YoY, reflecting the brand’s seasonality and a difficult prior-year base in Q3 2024. The gross margin remained healthy at 54.8%, signaling resilient product economics, yet the company generated an operating loss of $1.29 million and a net loss of $2.48 million, translating to an EPS of –$0.15. EBITDA was negative at $1.36 million, and free cash flow was negative at $1.23 million, with cash balance increasing to $4.12 million aided by financing activities of $2.81 million.
On the balance sheet, PMNT exhibits a modest liquidity cushion (current ratio ~1.01) but a highly leveraged position (total debt $6.69 million; net debt $3.92 million; stockholders’ equity $0.91 million). Retained earnings are deeply negative (~$57.59 million), indicating substantial accumulated losses and a fragile equity base. Management commentary (where available) is not captured in the provided transcript data, limiting insight into strategic levers, cost controls, and channel mix.
Overall, PMNT appears to be in a transition phase where topline volatility is driving seasonality-driven revenue spikes, but profitability and cash generation remain the primary hurdles. The key near-term questions for investors center on whether the company can scale its direct-to-consumer (DTC) model, optimize opex, and monetize the brand to generate sustainable positive cash flow, while managing leverage and commodity/supply chain pressures.
Key Performance Indicators
QoQ: 204.15% | YoY:-8.39%
QoQ: 208.50% | YoY:31.30%
QoQ: 49.39% | YoY:-277.75%
QoQ: 9.55% | YoY:-306.15%
QoQ: 11.76% | YoY:-294.05%
Key Insights
Revenue: $11,658,000; YoY: -8.39%, QoQ: +204.15%
Gross Profit: $6,389,000; Gross Margin: 54.80%
Operating Income: -$1,294,000; Operating Margin: -11.10%
EBITDA: -$1,363,000; EBITDA Margin: -11.69%
Net Income: -$2,482,000; Net Margin: -21.29%
EPS: -$0.15; Diluted EPS: -$0.15; Weighted Avg Shares: 16,177,559
Cash Flow: Net cash from operating activities -$1,046,000; Free Cash Flow -$1,231,000; Cash at End of Period: $4,123,000
Balance Sheet: Total Assets $13,234,000; Total Liabilities $12,327,000;...
Financial Highlights
Revenue: $11,658,000; YoY: -8.39%, QoQ: +204.15%
Gross Profit: $6,389,000; Gross Margin: 54.80%
Operating Income: -$1,294,000; Operating Margin: -11.10%
EBITDA: -$1,363,000; EBITDA Margin: -11.69%
Net Income: -$2,482,000; Net Margin: -21.29%
EPS: -$0.15; Diluted EPS: -$0.15; Weighted Avg Shares: 16,177,559
Cash Flow: Net cash from operating activities -$1,046,000; Free Cash Flow -$1,231,000; Cash at End of Period: $4,123,000
Balance Sheet: Total Assets $13,234,000; Total Liabilities $12,327,000; Total Stockholders’ Equity $907,000; Retained Earnings $(57,591,000); Cash & Equivalents $2,772,000; Total Debt $6,690,000; Net Debt $3,918,000; Current Ratio 1.01; Quick Ratio 0.65; Cash Ratio 0.23
Valuation/Leverage: Debt/Equity ~7.38; Price/Book 17.83; Price/Sales 1.39; P/E negative; Enterprise Value Multiple -14.74
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.66M |
-8.39% |
204.15% |
| Gross Profit |
6.39M |
31.30% |
208.50% |
| Operating Income |
-1.29M |
-277.75% |
49.39% |
| Net Income |
-2.48M |
-306.15% |
9.55% |
| EPS |
-0.15 |
-294.05% |
11.76% |
Key Financial Ratios
operatingProfitMargin
-11.1%
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.08
Management Commentary
Note: Earnings call transcript data is not available in the provided dataset. As a result, management quotes or thematic highlights from the QQ3 2025 call cannot be drawn directly. Potential discussion themes expected in a traditional call would include: DTC channel performance and marketing efficiency, product mix and pricing strategy, seasonal inventory management, fixed-cost leverage, and progress toward profitability. Investors should review the official form 10-Q and subsequent call transcripts for verbatim management commentary and forward-looking guidance.
Forward Guidance
No explicit forward guidance was disclosed in the supplied filing data for PMNT’s QQ3 2025 results. Absent formal targets, the outlook hinges on liquidity management, margin stabilization, and topline progression through DTC growth and wholesale expansion. Near-term guidance assumptions that could materially influence the trajectory include: (1) sustaining gross margins near or above 54-55% through favorable product mix and pricing power; (2) achieving operating expense discipline to reduce the operating losses; (3) converting financing activity runway into steady free cash flow without excessive leverage; (4) improving working capital metrics to shorten cash conversion cycle. Investors should monitor: quarterly gross margin trends, opex as a percentage of revenue, inventory levels and turns, marketing efficiency, and the pace of debt reduction or refinancing if needed.