Perfect (PERF) investor relations material

Executive summary

• Q2 2026 revenue was $16.3 million, stable year-over-year, with AR/AI cloud solutions and subscription revenue also flat at $14.9 million.

• Gross profit rose to $13.2 million (80.9% margin), up 7.4% YoY, while operating expenses declined 3.2% YoY to $13.3 million.

• Operating loss narrowed significantly to $0.1 million from $1.5 million in Q2'25, and net income surged to $1.3 million (+518.4% YoY).

• H1 2026 revenue grew 5.9% YoY to $34.3 million, with net income up 45.3% YoY to $3.6 million.

• Positive operating cash flow of $5.2 million in H1 2026, with $177.1 million in cash and equivalents at quarter end.

Financial highlights

• Gross margin improved to 80.9% in Q2 2026 and 81.5% for H1 2026, driven by operational efficiency and SaaS solutions.

• Operating expenses decreased, with R&D down 11% YoY and G&A down 6.9% YoY in Q2 2026.

• Licensing revenue declined 25.3% YoY in Q2, while other revenue increased 38.7% YoY.

• Operating income for H1 2026 was $1.4 million, reversing a $1.6 million loss in H1 2025.

• Operating cash flow was $1.0 million in Q2 2026, down 73.6% YoY; H1 2026 operating cash inflow was $5.2 million, down 34.8%.

Outlook and guidance

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

• Focus on expanding premium GenAI features, deepening penetration in beauty groups, and entering new markets like skincare and fashion.

• Ongoing demand for Generative AI and Agentic AI solutions is expected to support continued product and service innovation.

• The company is prioritizing market leadership in consumer beauty and AI mobile/web subscriptions and SaaS solutions for brands.