Perfect Moment reported a Q4 2024 revenue increase of 20.66% year-over-year to $4.841 million, but the quarter remained deeply unprofitable as the company absorbed elevated operating expenses. Gross profit was $1.595 million with a gross margin of 32.95%, while operating expenses totaled $10.232 million, generating an EBITDA of negative $5.482 million and a net loss of $5.742 million (EPS -$0.54). The disparity between top-line growth and profitability underscores a transition phase as the brand scales, with heavy investments in SG&A and brand-building that have not yet translated into sustained operating leverage.
Liquidity remained solvent through a financing cushion, as net cash provided by financing activities was $5.933 million driven by common stock issuance of $6.009 million, yielding a year-end cash balance of $7.91 million. Operating cash flow was negative at $1.375 million, and free cash flow was negative at $1.392 million, indicating near-term cash burn absent material improvements in cash generation. The balance sheet shows modest leverage with total debt of $145k and cash and equivalents of $7.91 million, but the company carries a substantial accumulated deficit (-$48.977 million) which compresses reported equity. While liquidity supports short-term obligations, profitability and sustainable free cash flow remain pivotal over the coming quarters.
From a strategic perspective, PMNT’s near-term trajectory hinges on revving direct-to-consumer revenue, optimizing product mix to lift gross margins, and controlling SG&A intensity. Absent meaningful improvements in top-line growth and operating efficiency, the company faces continued reliance on equity financing to fund losses. Investors should monitor revenue trajectory by channel (DTC vs. wholesale), gross margin progression, working capital trends (inventory levels and receivables), and any additional capital-raising events that could dilute existing holders.