Perfect (PERF) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $18.1M, up 14.2% year-over-year, with full-year 2025 revenue at $69.2M, up 14.9% year-over-year, driven by mobile app and web services subscriptions.

• Gross profit for Q4 2025 was $14.6M (80.5% margin), and for the full year $53.5M (77.4% margin).

• Operating loss narrowed to $1.7M for 2025, a 45% improvement from 2024, reflecting improved operational efficiency.

• Net income for 2025 was $4.6M, down 7.5% year-over-year; Q4 2025 net income was $0.1M, down 94.2% due to a $2.0M goodwill impairment from the Wannaby acquisition.

• Positive operating cash flow of $13.3M for 2025, with cash and equivalents at year-end reported as $172.4M and $126.0M in different sources.

Financial highlights

• AR/AI cloud solutions and subscription revenue grew 13.5% to $61.1M in 2025.

• Licensing revenue increased 1.7% to $5.3M; other revenue surged 133.8% to $2.8M.

• Gross margin averaged 80% from FY22–FY25.

• Operating expenses rose 10.3% to $55.3M, with R&D up 28.4% and S&M up 9.2%.

• General and administrative expenses fell 17.7% to $7.0M in 2025.

Outlook and guidance

• 2026 revenue expected to grow 8–12% year-over-year, driven by Generative AI, B2C subscription momentum, and web subscriptions.

• B2B enterprise segment is expected to remain cautious with limited near-term growth.

• Continued investment in generative AI, API-based solutions, and operational efficiency is planned.