NEW YORK--(BUSINESS WIRE)--October 28, 2025--
Perfect Corp. (NYSE: PERF) ("Perfect" or the "Company"), a leading artificial intelligence ("AI") company offering AI and augmented reality ("AR") powered solutions to beauty, fashion, photo and video creative industries, today announced its unaudited financial results for the three months ended September 30, 2025 and the nine months ended September 30, 2025.
Financial Results for the Three Months Ended September 30, 2025
Revenue
Total revenue was $18.7 million for the three months ended September 30, 2025, compared to $16.1 million in the same period of 2024, an increase of 15.7%. The increase was primarily due to strong growth momentum in the revenue of mobile app and web services subscriptions.
-- AI- and AR- cloud solutions and subscription revenue was $15.7 million
for the three months ended September 30, 2025, compared to $13.4 million
in the same period of 2024, an increase of 17.2%. The increase was driven
by the continued revenue growth of YouCam mobile app and web services
subscriptions, the growing popularity among consumers of Generative AI
technologies and AI editing features for photos and videos, and the
stable demand for the Company's online virtual product try-on solutions
from brand customers.
-- Licensing revenue was $2.2 million for the three months ended September
30, 2025, compared to $2.4 million in the same period of 2024, a decrease
of 9.5%.
Gross Profit
Gross profit was $14.1 million for the three months ended September 30, 2025, compared with $13.0 million in the same period of 2024, an increase of 9.2%. Gross margin was 75.8% for the three months ended September 30, 2025, down from 80.3% in the same period of 2024. The decrease in gross margin was primarily due to the increase in AppStore and GooglePlay platform processing fees paid to digital distribution partners, such as Google and Apple, driven by the steady growth in our YouCam mobile app subscription revenue. In addition, the increases in AI server computing cost, resulting from the growing demand for premium features powered by generative AI photo and video services, also contributed to the decrease in gross margin.
Total Operating Expenses
Total operating expenses were $13.7 million for the three months ended September 30, 2025, compared with $13.0 million in the same period of 2024, an increase of 4.7%. The increase was primarily due to increases in sales and marketing expenses and research and development expenses, which were partially offset by a decrease in general and administrative expenses in the third quarter of 2025.
-- Sales and marketing expenses were $7.9 million for the three months
ended September 30, 2025, compared to $7.1 million during the same period
of 2024, an increase of 11.6%. This increase was primarily due to an
increase in marketing events and advertising expenses related to our
mobile apps and web services subscription.
-- Research and development expenses were $3.9 million for the three
months ended September 30, 2025, compared to $3.2 million during the same
period of 2024, an increase of 22.4%. The increase was caused by two main
factors: (i) the continued foreign exchange impact caused by the
depreciation of the U.S. dollar against New Taiwan dollar elevated
personnel costs for our Taiwan-based development team, and (ii) the
increase in research and development headcount and related compensation
expenses following the acquisition of Wannaby Inc. ("Wannaby") in the
first quarter of 2025.
-- General and administrative expenses were $1.7 million for the three
months ended September 30, 2025, compared to $2.1 million during the same
period of 2024, a decrease of 18.2%. The decrease was primarily due to
reduced corporate insurance premium and external professional service
fees.
Operating Income/Loss
Total operating income were $0.5 million for the three months ended September 30, 2025, compared with an operating loss of $0.1 million in the same period of 2024, an increase of $0.6 million turning from a loss to an income position. The increase was primarily driven by higher revenue and gross profit, while operating expenses grew only modestly.
Net Income
Net income was $2.1 million for the three months ended September 30, 2025, compared to $2.5 million during the same period of 2024, a decrease of 17.9%. The decrease in net income was primarily due to (i) higher AppStore and GooglePlay platform processing fees, (ii) higher Taiwan personnel costs due to foreign exchange impact by a weaker U.S. dollar, (iii) increases in operating expenses after the acquisition of Wannaby, and (iv) lowered interest income due to decreases in interest rates on the Company's cash reserve.
Beginning with the third quarter of 2025, we will no longer present adjusted net income (loss), as this metric is no longer utilized by our management to assess or evaluate our operating performance.
Operating Cash Flow
Operating cash flow was $2.8 million in the three months ended September 30, 2025, compared to $4.2 million in the same period of 2024, a decrease of 34.6%.
Financial Results for the Nine Months Ended September 30, 2025
Revenue
Total revenue was $51.0 million for the nine months ended September 30, 2025, compared to $44.3 million in the same period of 2024, an increase of 15.1%.
-- AI- and AR- cloud solutions and subscription revenue was $44.7 million
for the nine months ended September 30, 2025, compared to $38.7 million
in the same period of 2024, an increase of 15.4%. The increase was driven
by the continued revenue growth of YouCam mobile apps and web services
subscriptions.
-- Licensing revenue was $4.8 million for the nine months ended September
30, 2025, compared to $4.7 million in the same period of 2024, an
increase of 1.0%.
Gross Profit
Gross profit was $38.9 million for the nine months ended September 30, 2025, compared with $35.2 million in the same period of 2024, an increase of 10.7%. Gross margin was 76.3% for the nine months ended September 30, 2025, slightly down from 79.4% in the same period of 2024.
Total Operating Expenses
Total operating expenses were $40.1 million for the nine months ended September 30, 2025, compared with $37.8 million in the same period of 2024, an increase of 5.9%. The increase was primarily due to increases in research and development and sales and marketing expenses, which were partially offset by a decrease in general and administrative expenses during the period.
-- Sales and marketing expenses were $23.1 million for the nine months
ended September 30, 2025, compared to $21.3 million during the same
period of 2024, an increase of 8.5%.
-- Research and development expenses were $11.5 million for the nine
months ended September 30, 2025, compared to $9.2 million during the same
period of 2024, an increase of 25.0%.
-- General and administrative expenses were $5.4 million for the nine
months ended September 30, 2025, compared to $6.7 million during the same
period of 2024, a decrease of 19.2%.
Operating Loss
Total operating loss were $1.1 million for the nine months ended September 30, 2025, compared with an operating loss of $2.7 million in the same period of 2024, a decrease of 57.7%. The decrease in operating loss was primarily driven by higher revenue and gross profit, while operating expenses grew only modestly.
Net Income
Net income was $4.6 million for the nine months ended September 30, 2025, compared to $3.9 million during the same period of 2024, an increase of 16.7%.
Operating Cash Flow
Operating cash flow was $10.8 million in the nine months ended September 30, 2025, compared to $9.8 million in the same period of 2024, an increase of 10.3%. The Company continues to invest in growth while maintaining a healthy cash flow to support business operations underscoring the Company's operational health and sustainability.
Capital Resource
As of September 30, 2025, the Company's cash and cash equivalents remained stable at $127.9 million (or $170.1 million when including 6-month time deposits of $36.3 million and money market funds of $5.9 million, which are classified as current financial assets at amortized cost and current financial assets at fair value through profit or loss under IFRS, respectively), compared to $127.1 million (or $165.9 million when including time deposits and money market funds) as of December 31, 2024.
Key Business Metrics
-- The number of active subscribers for the Company's YouCam mobile apps
and web services was 946,000 as of September 30, 2025, compared to over
960,000 as of June 30, 2025, a decrease of 1.5%. This slight decline was
as a result of the mobile app subscription plan's average selling price
("ASP") increase initiative introduced in early 2025, which strategically
prioritized higher revenue per user and long-term monetization efficiency
over short-term volume growth.
-- As of September 30, 2025, the Company's cumulative customer base
included 842 brand clients, with over 953,000 digital stock keeping units
("SKUs") for makeup, haircare, skincare, shoes, bags, eyewear, watches
and jewelry products, compared to 818 brand clients and over 914,000
digital SKUs as of June 30, 2025. The number of Key Customers1 of the
Company as of September 30, 2025 was 142 compared to 139 as of June 30,
2025. The increase is mainly from acquisition of new customer in both
makeup and skincare categories.
CEO Remarks and Business Outlook for 2025
Ms. Alice H. Chang, the Founder, Chairwoman, and Chief Executive Officer of Perfect commented, "Perfect Corp. continues to demonstrate steady revenue growth and resilience across its business segments. Our foundation remains strong, and our outlook for the future is bright, supported by ongoing AI innovation and expanding opportunities across both consumer and enterprise fronts. As we move through the remainder of 2025 and into 2026, our focus remains on driving sustainable growth through AI innovation and strategic diversification.
Since we founded Perfect Corp., we have always continued to reinvest in the growth of our products and new business. At the same time, we are striving to operate more efficiently and effectively with our work force. While we have consistently been net income positive, we achieved a milestone in the third quarter of 2025 by reaching operating profit for the first time, compared to operating losses in previous periods. As we align our budget for 2026, we remain focused on continuing to operate with profitability at the forefront.
Our B2C app and web service subscription business continues to show strong momentum, the revenue per user and user engagement continue to rise, validating the value of our premium AI-powered features and confirming the long-term health of our B2C business. We are witnessing a significant increase in user demand for AI-driven image and video generation, reflecting the accelerating shift toward creativity and personalization powered by AI. Building on this trend, we recently introduced new YouCam AI Agents designed to simplify and enhance the user experience.
YouCam AI Agent, a unified, conversational editor now available in YouCam Perfect and YouCam Makeup. By combining beauty styling, skin analysis, fashion try-ons, and pro-grade photo/video enhancement, the agent lets users describe the result they want and delivers fast, precise, studio-quality outputs in seconds. Powered by advanced vision-language AI and Perfect Corp.'s own leading beauty and fashion technologies, YouCam AI Agent sets a new benchmark for intuitive creativity--redefining everyday self-expression, beauty and style through a single, intelligent workflow.
At the core of our success lies the rapid adoption of generative AI in photo and video applications, which continues to be a key driver of both revenue growth and new subscriber acquisition. These technologies empower users to create photorealistic edits, immersive video effects, and personalized digital content that was once only achievable through professional tools--significantly broadening our appeal and deepening user engagement across the YouCam apps and web services ecosystem.
In parallel, our new application programming interface (API) business is gradually contributing to a new revenue stream. This offering allows third-party developers, agencies, and enterprise partners to integrate our proprietary AI, Generative AI, and AR technologies directly into their own ecosystems. We see tremendous potential in this channel to expand our product reach to a broader range of new clients and unlock new monetization opportunities through scalable, API-driven solutions.
Finally, our traditional B2B enterprise business in the beauty and fashion industries continues to navigate a challenging macroeconomic environment marked by cautious client spending and longer decision cycles. Nevertheless, Perfect Corp. remains the clear market leader in virtual try-on and AI beauty/fashion technology, maintaining deep partnerships with top global and luxury brands. As the luxury and beauty markets regain momentum, we believe Perfect Corp. is exceptionally well-positioned to capture the next wave of industry growth, supported by our proven technology leadership and trusted brand relationships.
Driven by steady revenue growth in both YouCam mobile apps and web service subscriptions, along with sustained demand for our enterprise SaaS solutions, the Company reaffirms its full-year 2025 revenue guidance of 13.0% to 14.5% year-over-year growth compared to 2024. This outlook reflects our most recent assessment of market conditions and internal performance trends and may be adjusted should conditions change."
About Perfect Corp.
Founded in 2015, Perfect Corp. is a leading AI company offering self-developed AI- and AR- powered solutions dedicated to transforming the world with digital tech innovations that make your virtual world beautiful. On Perfect's direct consumer business side, Perfect operates a family of YouCam consumer apps and web-editing services for photo, video and camera users, centered on unleashing creativity with AI-driven features for creation, beautification and enhancement. On Perfect's enterprise business side, Perfect empowers major beauty, skincare, fashion, jewelry, and watch brands and retailers by supplying them with omnichannel shopping experiences through AR product try-ons and AI-powered skin diagnostics. With cutting-edge technologies such as Generative AI, real-time facial and hand 3D AR rendering and cloud solutions, Perfect enables personalized, enjoyable, and engaging shopping journey and helps brands elevate customer engagement, increase conversion rates, and propel sales growth. Throughout this journey, Perfect maintains its unwavering commitment to environmental sustainability and fulfilling social responsibilities. For more information, visit https://ir.perfectcorp.com/.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on beliefs and assumptions and on information currently available to Perfect. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "target," "seek" or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These statements are based on Perfect's reasonable expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Perfect's control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Perfect to predict these events or how they may affect Perfect. In addition, risks and uncertainties are described in Perfect's filings with the Securities and Exchange Commission. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Perfect cannot assure you that the forward-looking statements in this communication will prove to be accurate. There may be additional risks that Perfect presently does not know or that Perfect currently does not believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by Perfect, its directors, officers or employees or any other person that Perfect will achieve its objectives and plans in any specified time frame, or at all. Except as required by applicable law, Perfect does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date of this communication. You should, therefore, not rely on these forward-looking statements as representing the views of Perfect as of any date subsequent to the date of this communication.
PERFECT CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2024 AND SEPTEMBER 30, 2025
(Expressed in thousands of United States dollars)
December 31, September 30,
2024 2025
------------- --------------
Assets Amount Amount
------------------------------------------ ------------- --------------
Current assets
Cash and cash equivalents $ 127,121 $ 127,882
Current financial assets at fair value
through profit or loss 2,746 5,944
Current financial assets at amortized
cost 36,000 36,300
Current contract assets 977 1,353
Accounts receivable 7,902 9,612
Other receivables 352 542
Current income tax assets 271 32
Inventories 18 18
Other current assets 2,522 1,956
------------- --------------
Total current assets 177,909 183,639
------------- --------------
Non-current assets
Property, plant and equipment 554 775
Right-of-use assets 485 713
Intangible assets 32 6,420
Deferred income tax assets 2,047 2,413
Guarantee deposits paid 146 221
------------- --------------
Total non-current assets 3,264 10,542
------------- --------------
Total assets $ 181,173 $ 194,181
============= ==============
(Continued)
PERFECT CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS (continued)
DECEMBER 31, 2024 AND SEPTEMBER 30, 2025
(Expressed in thousands of United States dollars)
December 31, September 30,
2024 2025
------------- --------------
Liabilities and Equity Amount Amount
------------------------------------------ ------------- --------------
Current liabilities
Current contract liabilities $ 17,218 $ 23,665
Other payables 11,656 13,753
Other payables -- related parties 46 76
Current tax liabilities 649 671
Current provisions 1,899 1,129
Current lease liabilities 402 458
Other current liabilities 341 377
------------- --------------
Total current liabilities 32,211 40,129
------------- --------------
Non-current liabilities
Non-current financial liabilities at fair
value through profit or loss 1,793 294
Deferred income tax liabilities -- 497
Non-current lease liabilities 108 281
Net defined benefit liability,
non-current 46 46
------------- --------------
Total non-current liabilities 1,947 1,118
------------- --------------
Total liabilities 34,158 41,247
------------- --------------
Equity
Capital stock
Perfect Class A Ordinary Shares, $0.1 (in
dollars) par value 8,506 8,506
Perfect Class B Ordinary Shares, $0.1 (in
dollars) par value 1,679 1,679
Capital surplus
Capital surplus 512,990 514,174
Retained earnings
Accumulated deficit (375,420) (370,840)
Other equity interest
Other equity interest (740) (585)
------------- --------------
Total equity 147,015 152,934
------------- --------------
Total liabilities and equity $ 181,173 $ 194,181
============= ==============
PERFECT CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2025
(Expressed in thousands of United States dollars)
Three months ended Nine months ended
September 30 September 30
---------------------- -----------------------
2024 2025 2024 2025
---------- ---------- ---------- -----------
Items Amount Amount Amount Amount
-------------------- ---------- ---------- ---------- -----------
Revenue $ 16,127 $ 18,659 $ 44,321 $ 51,020
Cost of sales and
services (3,171) (4,512) (9,142) (12,092)
---------- ---------- ---------- -----------
Gross profit 12,956 14,147 35,179 38,928
Operating expenses
Sales and marketing
expenses (7,090) (7,909) (21,274) (23,079)
General and
administrative
expenses (2,128) (1,740) (6,742) (5,447)
Research and
development
expenses (3,213) (3,932) (9,223) (11,527)
Expected credit
losses (602) (69) (602) (2)
---------- ---------- ---------- -----------
Total operating
expenses (13,033) (13,650) (37,841) (40,055)
---------- ---------- ---------- -----------
Operating income
(loss) (77) 497 (2,662) (1,127)
---------- ---------- ---------- -----------
Non-operating income
and expenses
Interest income 1,923 1,546 5,875 4,710
Other income 5 12 19 28
Other gains and
losses 422 175 131 1,767
Finance costs (4) (5) (14) (11)
---------- ---------- ---------- -----------
Total
non-operating
income and
expenses 2,346 1,728 6,011 6,494
---------- ---------- ---------- -----------
Income before income
tax 2,269 2,225 3,349 5,367
Income tax benefit
(expense) 263 (145) 577 (787)
---------- ---------- ---------- -----------
Net income $ 2,532 $ 2,080 $ 3,926 $ 4,580
========== ========== ========== ===========
Other comprehensive
income
Components of
other
comprehensive
income (loss) that
will be
reclassified to
profit or loss
Exchange
differences
arising on
translation of
foreign
operations $ 257 $ (56) $ 6 $ 155
---------- ---------- ---------- -----------
Other comprehensive
income (loss), net $ 257 $ (56) $ 6 $ 155
---------- ---------- ---------- -----------
Total comprehensive
income $ 2,789 $ 2,024 $ 3,932 $ 4,735
========== ========== ========== ===========
Net income,
attributable to:
Shareholders of the
parent $ 2,532 $ 2,080 $ 3,926 $ 4,580
========== ========== ========== ===========
Total comprehensive
income attributable
to:
Shareholders of the
parent $ 2,789 $ 2,024 $ 3,932 $ 4,735
========== ========== ========== ===========
Earnings per share
(in dollars)
Basic earnings per
share of Class A
and Class B
Ordinary Shares $ 0.025 $ 0.020 $ 0.039 $ 0.045
========== ========== ========== ===========
Diluted earnings
per share of Class
A and Class B
Ordinary Shares $ 0.025 $ 0.020 $ 0.039 $ 0.045
========== ========== ========== ===========
PERFECT CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2025
(Expressed in thousands of United States dollars)
Three months ended Nine months ended
September 30 September 30
------------------------ --------------------------
2024 2025 2024 2025
----------- ----------- ------------ ------------
Items Amount Amount Amount Amount
--------------- ----------- ----------- ------------ ------------
CASH FLOWS FROM
OPERATING
ACTIVITIES
---------------
Profit before
tax $ 2,269 $ 2,225 $ 3,349 $ 5,367
Adjustments to
reconcile
profit (loss)
Depreciation
expense 197 218 541 645
Amortization
expense 13 36 39 111
Expected
credit gains 602 69 602 2
Interest
income (1,923) (1,546) (5,875) (4,710)
Interest
expense 4 5 14 11
Net gains on
financial
assets at
fair value
through
profit or
loss -- (23) -- (32)
Net gains on
financial
liabilities
at fair value
through
profit or
loss (61) (621) (107) (1,657)
Share-based
payment
transactions 744 284 2,181 1,184
Changes in
operating
assets and
liabilities
Accounts
receivable (1,501) (1,126) (1,635) (1,485)
Current
contract
assets (462) (499) 752 (373)
Other
receivables -- 22 -- --
Inventories -- -- 12 --
Other current
assets 523 257 1,733 619
Current
contract
liabilities 919 1,976 2,541 6,285
Other payables 1,106 486 1,055 1,979
Other payables
-- related
parties 2 13 5 29
Current
provisions (15) (278) (578) (797)
Other current
liabilities 101 72 34 25
Net defined
benefit
liability,
non-current 1 -- 2 --
----------- ----------- ------------ ------------
Cash inflow
generated from
operations 2,519 1,570 4,665 7,203
Interest
received 1,875 1,389 5,433 4,570
Interest paid (4) (5) (14) (11)
Income tax paid (158) (186) (334) (1,007)
----------- ----------- ------------ ------------
Net cash flows
from
operating
activities 4,232 2,768 9,750 10,755
----------- ----------- ------------ ------------
CASH FLOWS FROM
INVESTING
ACTIVITIES
---------------
Acquisition of
financial
assets at fair
value through
profit or loss -- 232 -- (5,911)
Proceeds from
disposal of
financial
assets at fair
value through
profit or loss -- -- -- 2,746
Acquisition of
financial
assets at
amortized cost (11,104) (11,300) (55,574) (47,600)
Proceeds from
disposal of
financial
assets at
amortized cost 13,074 11,300 49,874 47,300
Acquisition of
subsidiaries,
net of cash
acquired -- -- -- (5,981)
Acquisition of
property, plant
and equipment (130) (253) (389) (418)
Proceeds from
disposal of
property, plant
and equipment -- -- -- 1
Acquisition of
intangible
assets -- -- (6) --
Increase in
guarantee
deposits paid -- -- (8) (67)
----------- ----------- ------------ ------------
Net cash flows
from (used
in) investing
activities 1,840 (21) (6,103) (9,930)
----------- ----------- ------------ ------------
CASH FLOWS FROM
FINANCING
ACTIVITIES
---------------
Repayment of
principal
portion of
lease
liabilities (142) (116) (381) (419)
----------- ----------- ------------ ------------
Net cash flows
used in
financing
activities (142) (116) (381) (419)
----------- ----------- ------------ ------------
Effects of
exchange rates
changes on cash
and cash
equivalents 451 (86) 40 355
----------- ----------- ------------ ------------
Net increase in
cash and cash
equivalents 6,381 2,545 3,306 761
Cash and cash
equivalents at
beginning of
period 120,796 125,337 123,871 127,121
----------- ----------- ------------ ------------
Cash and cash
equivalents at
end of period $ 127,177 $ 127,882 $ 127,177 $ 127,882
=========== =========== ============ ============
(1) "Key Customers" refers to the Company's brand customers who contributed revenue of more than $50,000 in the trailing 12 months ended on the measurement date.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251028817410/en/
CONTACT: Investor Relations Contact
Investor Relations, Perfect Corp.
Email: Investor_Relations@PerfectCorp.com
Category: Investor Relations
(END) Dow Jones Newswires
October 28, 2025 07:00 ET (11:00 GMT)