Perfect (PERF) investor relations material

Executive summary

• Q1 2026 revenue reached $17.9M, up 12.0% year-over-year, driven by mobile app/web subscriptions and virtual points.

• Gross profit rose to $14.7M (81.9% margin), a 17.8% increase year-over-year.

• Operating income turned positive at $1.5M, compared to a $0.2M loss in Q1 2025.

• Net income was $2.4M, up 2.6% year-over-year.

• Operating cash flow was $4.2M, slightly down 1.9% year-over-year, with cash reserves of $176.4M at quarter end.

Financial highlights

• AR/AI cloud solutions and subscription revenue grew 9.8% year-over-year to $15.5M.

• Licensing revenue declined 5.4% year-over-year to $1.5M, reflecting a shift away from legacy streams.

• Other revenue surged 179.5% year-over-year to $1.0M, mainly from virtual points.

• Operating expenses increased 4.7% year-over-year to $13.2M, mainly due to higher sales/marketing and expected credit losses.

• Gross margin improved to 81.9% from 77.9% in Q1 2025.

Outlook and guidance

• Management sees significant growth opportunities in GenAI subscriptions, new brands, verticals, and M&A.

• Plans to deepen penetration in top beauty groups, expand into skincare AI, and fashion/jewelry AI.

• Focus remains on expanding AI-driven B2C and B2B offerings, especially Generative and Agentic AI.

• Strategic emphasis on higher revenue per user and long-term monetization over short-term subscriber growth.