Key Highlights

  • The merger closed on October 23, 2026, with each ordinary share cancelled for $2.00 in cash, without interest.
  • Second-quarter revenue was $16.3 million, flat from a year earlier, with a gross margin of 80.9% versus 75.3%.
  • Net income was $1.3 million, or $0.013 per share, compared with $0.2 million a year earlier.
  • Active YouCam subscribers were 820,000, down about 14.6% from over 960,000.
  • Cash and equivalents were $125.6 million, and total liquid assets were $177.1 million.

Perfect Earnings: Why Is There No October 27 Report After the $2.00 Cash Merger?

Perfect (NYSE:PERF) did not report third-quarter earnings on October 27. Its going-private merger closed on Friday, October 23, when each ordinary share was cancelled in exchange for $2.00 in cash, subject to withholding taxes. The company asked the NYSE to suspend trading before the open that day and to file a Form 25 to delist its Class A ordinary shares.

Perfect also intends to file a Form 15 to end its registration under Section 12(g) and suspend its reporting obligations. Shareholders had approved the merger agreement at an extraordinary general meeting on October 19. Perfect survived the merger with ProjectNY, a Cayman Islands exempted company.

Consensus was an EPS of $0.02 as screened, with no reported figure, which is consistent with no release. The most recent results cover the quarter ended June 30, 2026.

Perfect Last Results: Did Margin Gains Offset a Flat Top Line?

Perfect develops AI and augmented-reality tools for beauty and fashion, including the YouCam consumer apps and enterprise software sold to brands. Second-quarter revenue was $16.3 million, flat from a year earlier. For the first half, revenue was $34.3 million, up 5.9% from $32.4 million.

Gross profit was $13.2 million, up 7.4%, and gross margin reached 80.9% from 75.3%. Management credited operating efficiency from realigning engineering staff toward standardized AI and API solutions. Total operating expenses were $13.3 million versus $13.8 million, and the operating loss narrowed to $0.1 million from $1.5 million.

Net income was $1.3 million, or $0.013 per share. For the half, operating income was $1.4 million, net income was $3.6 million, or $0.036 per share, and operating cash flow was $5.2 million versus $8.0 million.

YouCam Subscribers and Licensing: What Did the Business Mix Reveal?

AI and AR cloud solutions and subscriptions revenue was about $14.9 million in the quarter, roughly flat, and $30.4 million for the half, up 5.0%, driven mainly by YouCam app and web subscriptions. Licensing revenue was $0.7 million, down 25.3%, and the company expects this legacy line to become increasingly immaterial.

Active YouCam subscribers fell to 820,000 from over 960,000 a year earlier, which the company attributed to competition from AI-driven apps. Key customers numbered 113 versus 139, with the company citing subscription spending downgrades. Research and development spending dropped 11.0% in the quarter.

Balance Sheet and Warrants: What Remains for Holders After Delisting?

Cash and cash equivalents were $125.6 million at June 30, about level with $126.0 million at year-end. Adding $36.4 million of six-month time deposits and $15.1 million of Treasuries brought liquid assets to $177.1 million, and total equity was $156.9 million. No guidance or buyback was announced.

The going-private process began on March 18, when the company received a preliminary, non-binding proposal, and a special committee was formed on March 23. A definitive agreement followed on July 10. Each whole warrant became exercisable for $2.00 in cash, with a temporary exercise price of $1.999647 through November 23, after which it reverts to $11.50. Unexercised warrants expire on October 28, 2027.