Perfect Moment — Fiscal Q1 2027 Earnings Summary

Financial Performance

• Total net revenue declined 21.9% year-over-year to $1.2 million from $1.5 million in Q1 FY26.
• Gross margin decreased 580 basis points to 54.5% from 60.3% in Q1 FY26, driven by a change in revenue mix and the absence of non-recurring high-margin partnership revenue.
• Total operating expenses decreased 1.4% to $3.89 million from $3.94 million in Q1 FY26.
• Loss from operations increased by approximately $205,000 to $3.3 million from $3.1 million in Q1 FY26.
• Net loss improved by approximately $286,000 to $3.5 million ($0.07 per diluted share) from $3.8 million ($0.21 per diluted share) in Q1 FY26.
• Adjusted EBITDA loss increased by approximately $564,000 to $3.1 million from $2.6 million in Q1 FY26.
• Interest expense and finance costs decreased by $542,000 to $237,000 from $779,000 in Q1 FY26.
• Cash and cash equivalents were $0.7 million at June 30, 2026, down from $1.2 million at March 31, 2026.
• Accounts receivable decreased to $1.1 million at June 30, 2026, from $2.1 million at March 31, 2026.
• Inventory was $3.7 million at June 30, 2026, down from $3.9 million at March 31, 2026.
• Total liabilities were $12.2 million at June 30, 2026, compared to $12.9 million at March 31, 2026.
• Stockholders' deficit increased to $2.0 million at June 30, 2026, from $0.7 million at March 31, 2026.

Guidance and Future Outlook

• Management is focused on the September launch of the Fall/Winter 2026 collection.
• The Company plans to increase brand activation and enhance its eCommerce and marketing engine to convert momentum into full-price sales during the peak trading season.
• Inventory is positioned for the upcoming winter season with purchases weighted toward the season and expanded sales channels.
• The Company intends to continue executing on its transformation to a full-price luxury brand model.

Business Segments and Product Lines

• Wholesale revenue increased 268% to $563,000 from $153,000 in Q1 FY26, reflecting the build-out of the wholesale channel.
• eCommerce revenue decreased 40.2% to $585,000 from $978,000 in Q1 FY26, reflecting a strategic shift away from discounted online sales.
• Sales in the period were driven by swimwear and activewear, which represent the seasonally lowest quarter of the fiscal year.
• The Company transitioned toward a full-price luxury brand model, resulting in lower eCommerce revenue but stronger wholesale growth.

Market and Competitive Landscape

• The Company noted an encouraging response from wholesale partners regarding the brand.
• The business operates in the luxury outerwear and activewear market, merging alpine heritage with fashion-forward performance.
• Fiscal Q1 historically represents approximately 6% of fiscal 2026 annual revenue.

Risks and Challenges

• The first fiscal quarter is seasonally the lowest revenue quarter.
• The transition to a full-price brand model resulted in a significant decrease in eCommerce revenue.
• Gross margin compression was driven by the loss of non-recurring partnership revenue.
• Forward-looking statements are subject to inherent uncertainties, risks, and assumptions, including those detailed in the Form 10-K for the fiscal year ended March 31, 2026.

Management Commentary and Tone

• Jane Gottschalk, Co-Founder, Creative Director, and President, stated that the quarter reflected a deliberate reset to a full-price luxury brand model and that sales strengthened through June as campaigns took hold.
• Chath Weerasinghe, Chief Financial and Operating Officer, highlighted that total operating expenses remained essentially flat year-over-year while the Company made targeted investments in agency support and event-based growth activations.
• Management emphasized that the improvement in net loss was primarily due to a decrease in interest expense and finance costs following the restructuring of financing arrangements.
• The tone indicates a focus on disciplined execution, technology strengthening, and sustainable growth.

Other Key Points

• The Company raised $2.0 million in gross proceeds through a securities purchase agreement in May 2026.
• The Company has a $10.0 million revolving credit facility; $4.0 million was undrawn at June 30, 2026, though $6.0 million was drawn at quarter-end and an additional $1.0 million was drawn in July 2026.
• Deferred revenue increased to $613,000 at June 30, 2026, from $245,000 at March 31, 2026.
• The number of shares issued and outstanding increased to 53,202,530 at June 30, 2026, from 47,048,174 at March 31, 2026.
• The Company is traded on the OTCQB under the ticker symbol PMNT.