PMNT earnings analysis
What we found in PMNT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
- Gross margin
- 54.5%
- Operating margin
- -283.5%
- Segment
- Wholesale revenue: $563,000, up from $153,000 year over year.
- Segment
- Ecommerce revenue: $585,000, down from $978,000 year over year.
- Segment
- Retail revenue: $2,000, down from $37,000 year over year.
- Segment
- Partnership revenue: $0, down from $304,000 year over year.
- Segment
- Geographic revenue: Europe excluding the U.K. $503,000; United States $428,000; United Kingdom $62,000; rest of world $157,000.
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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%.…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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