Perfect Corp. records annual revenue growth despite one-time impairment charge

The Taiwan-based AI and AR technology firm Perfect Corp. reported total revenue of 69.17 million dollars for the fiscal year ended December 31, 2025, representing a 14.9 percent increase over the previous year. This growth was primarily fueled by the continued expansion of its business-to-consumer (B2C) mobile app and web service subscriptions, with AI- and AR-cloud solutions and subscription revenue rising 13.5 percent to 61.12 million dollars.

While the company's annual net income reached 4.60 million dollars, this reflected a 7.5 percent decrease from the prior year, largely due to a non-cash impairment loss on goodwill totaling 2.00 million dollars related to the acquisition of the Belarus-founded startup Wannaby.

Fourth quarter operational efficiency and margin gains

During the fourth quarter of 2025, total revenue increased 14.2 percent to 18.11 million dollars compared to the same period in 2024. A significant highlight for the period was the expansion of the quarterly gross margin to 80.5 percent, up from 74.1 percent in the prior-year period. Management attributed this improvement to increased operational efficiency as the company realigned its engineering professionals to transition from custom software toward standardized, scalable AI solutions. Despite this margin strength, the company reported a quarterly net income of 0.10 million dollars, a 94.2 percent year-over-year decrease, again primarily due to the 2 million dollar Wannaby-related impairment charge.

Strategic monetization and subscriber trends

The company's active subscriber base for its YouCam suite of apps totaled 908,000 as of December 31, 2025, marking a 4 percent decrease from the previous quarter. Perfect Corp. clarified that this decline was the result of a deliberate price increase initiative introduced in early 2025, which prioritized higher revenue per user and long-term monetization efficiency over short-term volume growth. Meanwhile, the company's enterprise segment continued to grow, ending the year with 859 brand clients and over 982,000 digital stock keeping units (SKUs) across beauty, fashion, and jewelry categories. However, the number of key customers contributing more than 50,000 dollars in revenue fell to 135 from 142 as some clients were downgraded due to lower spending.

Outlook for 2026 and focus on agentic AI

Perfect Corp. founder, chairwoman, and chief executive officer Alice Chang expressed confidence in the company's momentum, noting that results exceeded full-year guidance.

Looking ahead to 2026, the company expects total revenue to increase by approximately 10 percent compared to 2025. While the business-to-business (B2B) enterprise segment is expected to remain more cautious, the company is focusing on evolving into a strategic technology partner. Central to this evolution is the deployment of "agentic AI" and an API-first architecture, allowing its AI agents to provide more intelligent and personalized recommendations across the medical, dermatology, and fashion sectors.