For the quarter ended June 30, Perfect Corp., the augmented reality and AI solution provider used by the top fashion apparel, beauty and luxury brands and retailers, delivered stronger profits that were bolstered by higher gross margins. Quarterly revenue was essentially flat, but the company narrowed its operating loss while keeping total operating expenses the same as the year-ago period.
Total revenue came in at $16.3 million, the same as last year, while net income rose over 518 percent to $1.3 million from $200,000 in the same period last year. Gross profit jumped 7.4 percent to $13.2 million from $12.3 million in the same period of 2025.
The operating loss dropped down to $100,000 in the quarter from $1.5 million in the same period last year. Total operating expenses fell 3.2 percent to $13.3 million from $13.8 million in the same period of 2025. “The decrease was primarily due to decreases in research and development and general and administrative expenses in the second quarter of 2026,” Perfect Corp. said in its report.
Alice H. Chang, founder, chairwoman and chief executive officer of Perfect Corp., said the company continues to prioritize the advancement of its 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,” Chang said. “We also remain focused on strengthening our technology capabilities and expanding our solutions to pursue opportunities across both business segments.”
Earlier this month, Perfect Corp. signed a merger deal with ProjectNY, a firm controlled by Chang. Under the definitive agreement, the company is going private, with shareholders receiving $2 in cash for each share they own. This payout gives investors a premium of about 48 percent compared to the stock’s price before the company first announced it was considering going private earlier this year. The “going private” proposal was sent to the board of directors in March.
Other key financial results from the most recent quarter include revenue remaining at about $14.9 million for the company’s AI- and AR-cloud solutions and subscriptions. “AI- and AR-cloud solutions and subscription revenue [were] 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,” the company said in a statement.
Licensing revenue dropped to $700,000 from $1 million in the same period last year. Perfect Corp. said it 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.”
Regarding the increase in gross margin during the quarter, the company said it was primarily due to the increase in operational efficiency, which resulted from the “ongoing realignment of engineering professionals” as the company continues to transition from customization of software and toward more standardized AI/API solutions for its customer base.
