Perfect Moment Ltd reported QQ1 2026 revenue of $1.472 million, a steep year-over-year decline of 69.59% and a sequential drop of 87.37% (QoQ). The top-line deterioration was accompanied by a gross profit of $0.889 million and a solid gross margin of approximately 60.4%, yet the company generated a substantial operating loss of $3.055 million and an EBITDA of $-2.909 million, resulting in a net loss of $3.819 million and an EPS of $-0.21 for the quarter. The quarterly results highlight a business in a lightweight scale-up phase, with SG&A and other operating expenses dominated by fixed costs that aren’t yet sufficiently covered by revenue evolution. Cash and equivalents stood at roughly $2.99 million at quarter-end, while net debt remained negative at about $1.25 million, signaling a modest liquidity cushion but a fragile path to sustained profitability.
Looking ahead, the company faces a high bar to return to profitability in a consumer discretionary environment characterized by price sensitivity and seasonality in ski/adventure apparel. Near-term investors should monitor whether PMNT can stabilize revenue, improve operating leverage, and grow DTC revenue while controlling marketing and G&A spend. The balance sheet shows a lean equity base relative to liabilities, suggesting potential dilution risk if additional capital is required to fund working capital and growth initiatives. In summary, the QQ1 2026 results depict a venture in early-stage rebuild mode with meaningful upside if revenue momentum and cost discipline cohere, but with substantial execution risk still intact.