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Perfect Corp (PERF)
NYSE:PERF
US Market
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Perfect Corp (PERF) AI Stock Analysis

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PERF

Perfect Corp

(NYSE:PERF)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$2.00
▲(3.63% Upside)
Action:Downgraded
Date:07/29/26
The score is driven primarily by solid financial performance (strong margins, restored profitability, and a very low-debt balance sheet), supported by a constructive price trend above key moving averages. These positives are tempered by a higher valuation (P/E ~33.7) and signs of slowing fundamentals (slightly negative TTM revenue growth and declining TTM free cash flow).
Positive Factors
High gross margins
Sustained gross margins near 77%–85% indicate durable product-level profitability typical of scalable AI/AR SaaS. High gross margins provide room to fund R&D and platform improvements, support long-term margin stability as revenue scales, and underwrite enterprise go-to-market investments.
Negative Factors
Slight revenue contraction
A modest TTM revenue decline suggests growth momentum has softened after prior expansion. For a technology provider reliant on brand and retail adoption, prolonged deceleration can compress operating leverage, slow customer acquisition payback, and raise risk that product-market fit or monetization needs reoptimization.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 77%–85% indicate durable product-level profitability typical of scalable AI/AR SaaS. High gross margins provide room to fund R&D and platform improvements, support long-term margin stability as revenue scales, and underwrite enterprise go-to-market investments.
Read all positive factors

Perfect Corp (PERF) vs. SPDR S&P 500 ETF (SPY)

Perfect Corp Business Overview & Revenue Model

Company Description
Perfect Corp., established in New Taipei City, Taiwan, in 2015, delivers Software as a Service (SaaS) solutions that integrate artificial intelligence (AI) and augmented reality (AR) for the beauty and fashion industries. Its comprehensive suite o...
How the Company Makes Money
Perfect Corp primarily makes money by licensing its AI/AR software and related cloud-based services to businesses (e.g., beauty and fashion brands and retailers). Revenue is typically generated through commercial agreements that grant customers ac...

Perfect Corp Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and net income growth, successful integration of the WANNA acquisition, and a solid financial position. However, challenges included a decrease in key customers and mobile app subscribers amid macroeconomic conditions. Overall, the positive financial performance and strategic advancements offset the challenges faced.
Positive Updates
Strong Revenue Growth
Total revenue grew by 12.1% year-over-year to $16 million, in line with revenue guidance for 2025.
Negative Updates
Decrease in Key Customers
The number of key customers decreased from 151 to 148 due to contract churn amid financial challenges in the macroeconomic environment.
Read all updates
Q1-2025 Updates
Negative
Strong Revenue Growth
Total revenue grew by 12.1% year-over-year to $16 million, in line with revenue guidance for 2025.
Read all positive updates
Company Guidance
During Perfect Corp.'s first quarter 2025 earnings call, CEO Alice Chang highlighted several key financial metrics and strategic initiatives. The company reported a 12.1% year-over-year revenue increase to $16 million, with a significant net income jump of 264% to $2.3 million. Adjusted net income rose by 33.3% to $2 million. The mobile app subscription business, particularly in the AI/AR cloud solutions sector, was a major growth driver, contributing to an operating cash flow of $4.3 million and maintaining a robust balance sheet with $164.6 million in cash and cash equivalents. The B2C segment saw a 7.9% increase in active paying subscribers, totaling 973,000, while the B2B segment expanded to 801 brand clients with over 891,000 SKUs. Strategic developments included the launch of the YouCam AI Chat app and the integration of the newly acquired WANNA team, enhancing their market position, especially in the shoes vertical. The company's growth strategy remains focused on expanding the Generative AI functions and driving higher premium subscriptions, while also integrating new acquisitions to bolster their presence in the beauty and fashion markets.

Perfect Corp Financial Statement Overview

Summary
Financials are generally solid: strong gross margins (~77%–85%), profitability has recovered with TTM net margin around ~8.1% and positive EBIT/EBITDA, and leverage is extremely low (debt-to-equity ~0.004). Offsetting these strengths, TTM revenue is slightly down (~-1.1%) and TTM free cash flow declined (~-20.4%), which raises concerns about near-term growth and cash conversion durability.
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
68
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue71.07M69.15M60.20M53.51M47.30M40.76M
Gross Profit56.66M53.52M46.94M43.10M40.17M35.02M
EBITDA6.34M6.77M-2.05M6.26M-160.68M-155.78M
Net Income5.78M4.64M5.02M5.42M-161.74M-156.85M
Balance Sheet
Total Assets194.62M191.97M181.17M170.36M210.27M88.90M
Cash, Cash Equivalents and Short-Term Investments162.02M162.28M165.87M154.17M192.62M80.45M
Total Debt644.00K683.00K510.00K868.00K338.00K638.00K
Total Liabilities37.68M38.88M34.16M30.96M28.31M279.35M
Stockholders Equity156.94M153.09M147.01M139.41M181.96M-190.44M
Cash Flow
Free Cash Flow10.17M12.88M12.61M13.26M-3.56M1.39M
Operating Cash Flow10.52M13.30M13.00M13.58M-3.31M1.55M
Investing Cash Flow-9.33M-14.06M-8.88M-637.00K-30.26M-213.00K
Financing Cash Flow-532.63K-562.00K-525.00K-51.50M118.03M-63.00K

Perfect Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.93
Price Trends
50DMA
1.75
Positive
100DMA
1.69
Positive
200DMA
1.71
Positive
Market Momentum
MACD
0.07
Negative
RSI
76.74
Negative
STOCH
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERF, the sentiment is Positive. The current price of 1.93 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.75, and above the 200-day MA of 1.71, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 76.74 is Negative, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PERF.

Perfect Corp Risk Analysis

Perfect Corp disclosed 97 risk factors in its most recent earnings report. Perfect Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Perfect Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$195.55M33.683.07%10.41%10.48%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
$109.98M-7.26-20.76%-4.78%-90.32%
55
Neutral
$172.62M-8.07-15.26%-1.25%-109.14%
52
Neutral
16.40%22.80%
49
Neutral
$54.14M25.002.62%-6.00%-82.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PERF
Perfect Corp
1.93
-0.03
-1.53%
SSTI
SoundThinking Inc
8.36
-3.05
-26.73%
MAPS
WM Technology
0.35
-0.54
-60.76%
FRGE
Forge Global Holdings
45.00
23.08
105.29%
ONTF
ON24
8.10
3.14
63.31%
EXFY
Expensify
1.80
-0.23
-11.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2026