Perfect Moment posts strong Q1 with record margins

A significant reason for Perfect Moment’s record results in Q1 2026 is substantial margin expansion, driven by new revenue streams, an enhanced channel and product mix, and disciplined cost management.

Partnerships and product expansion fuel Q1 growth

Total net revenue increased 51 percent to $1.5 million from $974,000 in the same year-ago quarter. The increase was fueled by the launch of new revenue streams, including collaboration and partnership revenues, as well as continued strength in e-commerce and wholesale channels. The first fiscal quarter has historically been the company’s lowest due to seasonality, typically representing less than 5 percent of annual net revenues.

Gross margin rose sharply to a record 60.4 percent, up from 36.6 percent in the prior-year period, and gross profit more than doubled to $889,000. Operating expenses increased 5 percent year-over-year to $3.9 million, largely due to higher marketing and SG&A spending.

E-commerce net revenue increased 6 percent to $978,000 compared to $922,000 in the year-ago quarter, while wholesale revenue nearly tripled to $153,000 from $52,000.

The management of Perfect Moment highlighted several strategic initiatives behind the performance. “We are pleased to report another quarter of strong top-line growth and a substantial improvement in gross margin, reflecting the impact of our strategic initiatives to diversify revenue, elevate product mix, and optimize our supply chain,” said Jane Gottschalk, President and Principal Executive Officer. “The launch of our spring/summer capsule, expansion of our style count and the introduction of partnership revenues have further strengthened our brand positioning and customer engagement globally.”

Perfect Moment’s Chief Financial and Operating Officer, Chath Weerasinghe, added: “Our record gross margin and 51 percent revenue growth reflect the successful execution of our growth and profitability strategy. We’re investing strategically in brand, infrastructure, and market expansion, while maintaining tight cost control – positioning Perfect Moment for sustained growth and profitability.”

Net loss rises slightly

The net loss amounted to $3.8 million, compared to a net loss of $3.4 million in the same period last year. Adjusted Ebitda loss improved by $331,000 to $2.6 million, compared to $2.9 million in the same quarter the previous year. The improvement is primarily attributable to higher gross profit, reflecting increased revenue and significant margin expansion, mainly resulting from additional partnership revenue and an improved channel and product mix.