NEW YORK--(BUSINESS WIRE)--July 27, 2026--
Perfect Corp. (NYSE: PERF) ("Perfect" or the "Company"), a leading artificial intelligence ("AI") company offering AI and augmented reality ("AR") powered solutions to beauty and fashion industries, today announced its unaudited financial results for the three months and six months ended June 30, 2026.
Highlights for the Three Months Ended June 30, 2026
-- Total revenue was $16.3 million for the three months ended June 30,
2026, remaining stable compared to the same period of 2025.
-- Gross profit was $13.2 million for the three months ended June 30,
2026, compared to $12.3 million in the same period of 2025, an increase
of 7.4%.
-- Operating loss was $0.1 million for the three months ended June 30,
2026, compared to an operating loss of $1.5 million in the same period of
2025, representing an improvement of $1.4 million.
-- Net income was $1.3 million for the three months ended June 30, 2026,
compared to $0.2 million during the same period of 2025, an increase of
518.4%.
Ms. Alice H. Chang, Founder, Chairwoman, and Chief Executive Officer of Perfect Corp., commented, "Perfect Corp. continues to prioritize the advancement of our consumer (B2C) and enterprise (B2B) businesses through AI-driven innovation. While the rapid evolution of AI is creating both opportunities and challenges across the sector, ongoing demand for Generative AI and Agentic AI solutions reinforces our commitment to developing products and services that address these evolving needs. We also remain focused on strengthening our technology capabilities and expanding our solutions to pursue opportunities across both business segments."
Financial Results for the Three Months Ended June 30, 2026
Revenue
Total revenue remained stable at $16.3 million for the three months ended June 30, 2026, compared to the same period of 2025, as continued growth in YouCam mobile app and web services subscriptions was offset by a decrease in licensing revenue.
-- AI- and AR- cloud solutions and subscription revenue remained
relatively stable at $14.9 million for the three months ended June 30,
2026, compared to the same period of 2025. AI- and AR- cloud solutions
and subscription revenue was primarily driven by the revenue growth from
YouCam mobile app and web subscriptions, supported by growing popularity
among consumers for Generative AI technologies and AI editing features
for photos and videos.
-- Licensing revenue was $0.7 million for the three months ended June 30,
2026, compared to $1.0 million in the same period of 2025, a decrease of
25.3%. The Company anticipates that this legacy non-recurring revenue
will become increasingly immaterial as it continues to prioritize
enhancing its market leadership in the consumer beauty and AI mobile apps
and web subscriptions as well as AI- and AR-based SaaS subscription
solutions for brands and customers.
Gross Profit
Gross profit was $13.2 million for the three months ended June 30, 2026, compared with $12.3 million in the same period of 2025, an increase of 7.4%. Gross margin was 80.9% for the three months ended June 30, 2026, an increase from 75.3% in the same period of 2025. The increase in gross margin during the quarter was primarily due to the increase in operational efficiency resulting from the ongoing realignment of engineering professionals as we continue to transition from customization of software toward more standardized AI/API solutions for our customer base.
Total Operating Expenses
Total operating expenses were $13.3 million for the three months ended June 30, 2026, compared with $13.8 million in the same period of 2025, a decrease of 3.2%. The decrease was primarily due to decreases in research and development and general and administrative expenses in the second quarter of 2026.
-- Sales and marketing expenses remained stable at $7.8 million for the
three months ended June 30, 2026, compared to the same period of 2025.
-- Research and development expenses were $3.6 million for the three
months ended June 30, 2026, compared to $4.0 million during the same
period of 2025, a decrease of 11.0%. This decrease was primarily due to
reduction of engineering resources by creating better synergies among
different product development teams.
-- General and administrative expenses were at $1.9 million for the three
months ended June 30, 2026, and compared to $2.0 million for the same
period of 2025, a decrease of 6.9%, demonstrating our effective cost
control.
Total Operating Loss
Total operating loss narrowed to $0.1 million for the three months ended June 30, 2026, compared to $1.5 million during the same period of 2025. The improvement in operating results was primarily driven by higher gross profit, while operating expenses remained steady.
Net Income
Net income was $1.3 million for the three months ended June 30, 2026, compared to $0.2 million during the same period of 2025. The significant increase in net income was primarily due to improved gross margin, increase in gains on financial liabilities and lower operating expenses resulting from effective cost control.
Operating Cash Flow
Operating cash flow was $1.0 million in the three months ended June 30, 2026, compared to $3.7 million in the same period of 2025, a decrease of 73.6%. This decrease was primarily due to fewer current contract liabilities and higher income tax paid, partially offset by higher profit before tax.
Financial Results for the Six Months Ended June 30, 2026
Revenue
Total revenue was $34.3 million for the six months ended June 30, 2026, compared to $32.4 million in the same period of 2025, an increase of 5.9%.
-- AI- and AR- cloud solutions and subscription revenue was $30.4 million
for the six months ended June 30, 2026, compared to $29.0 million in the
same period of 2025, an increase of 5.0%. The increase was primarily
driven by the continued revenue growth from YouCam mobile app and web
subscriptions, supported by growing popularity among consumers for
Generative AI technologies and AI editing features for photos and
videos.
-- Licensing revenue was $2.2 million for the six months ended June 30,
2026, compared to $2.6 million in the same period of 2025, a decrease of
13.2%.
Gross Profit
Gross profit was $27.9 million for the six months ended June 30, 2026, compared with $24.8 million in the same period of 2025, an increase of 12.7%. Gross margin was 81.5% for the six months ended June 30, 2026, an increase from 76.6% in the same period of 2025. The increase in gross margin during the first half of 2026 was primarily due to the increase in operational efficiency by supplying standardized SaaS solutions with fewer brand-specific customization efforts.
Total Operating Expenses
Total operating expenses were $26.6 million for the six months ended June 30, 2026, compared with $26.4 million in the same period of 2025, an increase of 0.6%.
-- Sales and marketing expenses remained relatively stable at $15.5
million for the six months ended June 30, 2026, compared to $15.2 million
during the same period of 2025.
-- Research and development expenses was $7.1 million for the six months
ended June 30, 2026, compared to $7.6 million during the same period of
2025, a slight decrease of 6.3%.
-- General and administrative expenses were at $3.6 million for the six
months ended June 30, 2026, and compared to $3.7 million for the same
period of 2025, a slight decrease of 3.1%, demonstrating our effective
cost control.
Total Operating Income/Loss
Total operating income was $1.4 million for the six months ended June 30, 2026, compared to an operating loss of $1.6 million during the same period of 2025. The swing to profitability was primarily driven by higher gross profit, while operating expenses grew only modestly.
Net Income
Net income was $3.6 million for the six months ended June 30, 2026, compared to $2.5 million during the same period of 2025, an increase of 45.3%. The positive net income was supported by our steady revenue growth and effective cost control.
Operating Cash Flow
Operating cash inflow was $5.2 million in the six months ended June 30, 2026, compared to $8.0 million in the same period of 2025, a decrease of 34.8%. The decrease was primarily driven by lower current contract liabilities and higher income tax paid. The Company continues to invest in growth while maintaining a positive operating cash flow to support business operations.
Liquidity and Capital Resource
As of June 30, 2026, the Company's cash and cash equivalents remained stable at $125.6 million (or $177.1 million when including 6-month time deposits of $36.4 million and US Treasuries of $15.1 million, which are classified as current and non-current financial assets at amortized cost under IFRS, respectively), compared to $120.6 million (or $176.4 million when including time deposits, US Treasuries and money market funds) as of March 31, 2026.
Key Business Metrics
-- The number of active subscribers for the Company's YouCam mobile beauty
apps and web services was 820,000 as of June 30, 2026, compared to over
960,000 as of June 30, 2025, a decrease of 14.6%. The decline was
attributable to the increased competition through the rapidly shifting
landscape of AI driven apps.
-- The number of Key Customers1 of the Company as of June 30, 2026 was 113
compared to 139 as of June 30, 2025. The net decline in the number of Key
Customers was primarily due to customer downgrades in service
subscription spending.
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