10-K · June 29, 2026
Perfect Moment Ltd. reported a modest revenue increase of 9.8% for the year ended March 31, 2026, bringing total revenue to $23.6 million, driven primarily by a significant rise in wholesale revenue which grew by 42.3%.…
Earnings analysis · 10-Q
PMNT earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
The quarter showed a 21.9% year-over-year revenue decline to $1.150 million, gross-margin compression to 54.5%, and a $3.533 million net loss, with operating margin worsening to approximately negative 283.5%. Wholesale…
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The quarter showed a 21.9% year-over-year revenue decline to $1.150 million, gross-margin compression to 54.5%, and a $3.533 million net loss, with operating margin worsening to approximately negative 283.5%. Wholesale growth and lower operating expenses were insufficient to offset ecommerce weakness and the loss of $304,000 of partnership revenue. Liquidity remains the dominant concern: cash was $707,000, operating cash use was $3.246 million, and management disclosed substantial doubt about continuing as a going concern despite $2.860 million of financing inflows.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.07
What stood out
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Revenue declined 21.9% year over year
Revenue declined to $1.150 million from $1.472 million in the prior-year quarter, a decrease of $322,000, or 21.9%. Management attributed the decline primarily to $304,000 of partnership revenue in the prior-year period that did not recur.
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Wholesale growth partly offset DTC weakness
Wholesale revenue increased to $563,000 from $153,000, while ecommerce revenue declined to $585,000 from $978,000. Partnership revenue fell to $0 from $304,000.
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Gross margin compressed on mix
Gross profit was $627,000 versus $889,000, while gross margin fell to 54.5% from 60.3%, a 5.8-point decline. Management cited unfavorable mix from the nonrecurrence of higher-margin partnership revenue, partly offset by pricing, inventory-management and sourcing initiatives.
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Operating expense reductions
SG&A declined by $35,000 to $3.380 million and marketing expense declined by $22,000 to $507,000. The reductions reflected lower stock-based service amortization, share-based compensation, agency support and promotional spending.
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Cash burn improved year over year
Operating cash use improved to $3.246 million from $3.892 million in the prior-year quarter, a $646,000 improvement. Financing activities provided $2.860 million, including $2.000 million from common stock issuance and $860,000 from the related-party revolver.
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Inventory and receivables reduced
Net inventory declined to $3.669 million from $3.897 million at March 31, 2026, and accounts receivable declined to $1.114 million from $2.146 million. Management also reported launching a spring/summer capsule, increasing annual style count from approximately 75 to over 200, and implementing tiered pricing.
What to watch
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Substantial going-concern risk
The company reported a $3.533 million net loss, used $3.246 million in operating cash, had cash of only $707,000, an accumulated deficit of $75.580 million and stockholders’ deficit of $1.994 million. Management concluded these conditions raise substantial doubt about the ability to continue as a going concern for at least 12 months and stated additional financing may be required.
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Extreme supplier concentration
The largest single manufacturer produced approximately 100% of the company’s products during the quarter, despite the company working with approximately 31 manufacturing vendors. A disruption at that manufacturer could impair inventory availability, production timing, revenue and margins.
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Customer and receivables concentration
Customer and credit concentration increased: one customer represented approximately 29% of revenue and 31% of accounts receivable, while two customers represented 46% of accounts receivable as of June 30, 2026. The company also recorded an allowance for credit losses of $1.257 million.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management states it expects operating losses and negative operating cash flow to continue into the foreseeable future. The prior 8-K cited FY2027 revenue guidance of $5 million to $15 million, but this filing does not explicitly reaffirm or change that outlook.
Earlier filings 4
10-Q · February 12, 2026
Perfect Moment Ltd.'s recent 10-Q filing for the quarter ending December 31, 2025, indicates modest revenue growth year-over-year alongside improved gross margins. However, the company continues to report losses,…
10-Q · November 13, 2025
Perfect Moment Ltd. reported substantial revenue growth in Q2 2025, with revenues increasing by 24% year-over-year to $4.76 million and gross margins improving to 60.1%. However, the company continues to experience…
10-Q · August 14, 2025
Perfect Moment Ltd. reported a notable year-over-year revenue increase of 51.1%, reaching $1.47 million for Q1 2026, a significant rise from $974,000 in the same period last year. However, the company continues to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.