Perfect Corp. (NYSE: PERF) reported its unaudited Q4 2025 results, showing total revenue of $18.1 million, a 14.2% year‑over‑year increase driven by growth in its mobile‑app and web‑service subscription business and expanding AI‑ and AR‑cloud solutions. The company’s gross profit rose to $14.6 million, lifting the gross margin to 80.5% from 74.1% in Q4 2024, a gain attributed to operational efficiencies achieved through standardizing its AI platform across product lines.
Operating expenses climbed 24.1% to $15.2 million, largely due to higher research and development and sales‑and‑marketing spend, while general‑administrative costs fell. The combined effect left the company with an operating loss of $0.6 million for the quarter, compared with a $0.5 million loss a year earlier. A $2.0 million goodwill impairment related to the Wannaby acquisition contributed to the loss, reflecting a reassessment of the value of the newly acquired virtual‑try‑on technology.
For the full year ended December 31 2025, Perfect Corp. posted revenue of $69.2 million, up 14.9% from $60.2 million in 2024. Gross profit increased to $53.5 million, and the annual gross margin fell slightly to 77.4% from 78.0% in 2024, a modest compression linked to a shift in the mix toward lower‑margin subscription services. Operating expenses grew 10.3% to $55.3 million, and the company recorded an operating loss of $1.7 million, a significant improvement over the $3.1 million loss reported in 2024.
Net income for the year was reported at $4.6 million, down 7.5% from $5.0 million in 2024. The company’s non‑GAAP earnings per share for Q4 2025 were $0.01, missing the consensus estimate of $0.0138, while revenue of $18.1 million fell short of the $18.4 million consensus estimate. The miss was largely driven by the $2.0 million goodwill impairment and a slight decline in subscription revenue growth relative to the prior year.
Management highlighted the strategic value of the Wannaby acquisition, noting that “We’re thrilled to finalize this acquisition and welcome the talented Wannaby team into the Perfect Corp. family. By combining our strengths and resources, we can deliver even greater value to our customers and accelerate our long‑term growth strategy.” The company also reiterated its outlook for 2026, guiding total revenue growth of approximately 10% (roughly $76.1 million to $79.2 million), a figure slightly below prior analyst estimates of $80.4 million. The guidance signals confidence in continued demand for AI‑driven beauty and fashion solutions while acknowledging the integration costs associated with the Wannaby deal.
Overall, Perfect Corp. demonstrated resilient revenue growth and improved gross margins, but the goodwill impairment and revenue miss tempered the earnings picture. The company’s forward guidance reflects a cautious but optimistic view of the market, suggesting that while short‑term headwinds exist, the strategic focus on AI, AR, and luxury fashion tech positions it for sustained growth in the coming years.
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