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.