Perimeter Solutions (PRM) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales rose 28% year-over-year to $162.6M, driven by strong Fire Safety and Specialty Products performance, with adjusted EBITDA up 41% to $91.3M and gross profit up 39% to $101.5M.

• Adjusted EPS for Q2 2025 was $0.39, up from $0.25 in Q2 2024, while GAAP EPS was $(0.22) versus $0.14 prior year, reflecting significant non-recurring founder advisory fee expenses.

• Net loss of $32.2M for Q2 2025 was primarily due to a $96.9M increase in founder advisory fees linked to share price appreciation.

• Year-to-date net income reached $24.5M, reversing a net loss of $60.9M in the prior year period.

• Operational execution, normalized U.S. fire activity, and strong international and specialty performance were key drivers.

Financial highlights

• Q2 2025 consolidated revenue was $162.6M, up 28% YoY; adjusted EBITDA was $91.3M, up 41% YoY; gross margin improved to 62.4%.

• Fire Safety Q2 revenue was $120.3M, up 22% YoY; adjusted EBITDA was $77.7M, up 40% YoY.

• Specialty Products Q2 net sales were $42.4M, up 47% YoY; adjusted EBITDA was $13.7M, up 48% YoY.

• Cash and cash equivalents at June 30, 2025, were $140.7M.

• Q2 2025 GAAP loss per share was $0.22; adjusted EPS was $0.39.

Outlook and guidance

• Management expects continued growth in Fire Safety from increased fire severity, longer fire seasons, and ground-based prevention.

• High end of CapEx assumptions raised to $30M, reflecting strong investment opportunities.

• Sufficient liquidity is expected to meet capital expenditures, working capital, and debt service requirements for at least 12 months.

• Full-year tax and net working capital expectations remain unchanged; majority of cash generation expected in the second half.

• Long-term assumptions include ~$40M annual interest expense, ~$20-25M tax-deductible D&A, and ~$15-30M annual capex.