Perfect Corp reports net income growth in second quarter 2026

Taiwan-based artificial intelligence (AI) and augmented reality (AR) provider Perfect Corp has announced its unaudited financial results for the three months and six months ended June 30, 2026. The beauty tech company posted total revenue of 16.3 million dollars for the second quarter, remaining stable compared to the same period in 2025.

Net income for the three-month period reached one point three million dollars, marking an increase of 518.4 percent compared to 0.2 million dollars recorded in the prior-year period. The bottom-line growth was supported by gross margin expansion, lower operating expenses, and gains on financial liabilities.

Operational efficiency drives margin expansion

Gross profit for the second quarter grew by 7.4 percent to 13.2 million dollars, up from 12.3 million dollars in the second quarter of 2025. Gross margin expanded to 80.9 percent, compared to 75.3 percent during the corresponding period of the previous year. The margin expansion was driven by operational efficiencies achieved through transitioning engineering resources toward standardized AI and application programming interface (API) solutions.

Operating loss for the quarter narrowed to 100,000 dollars, compared to an operating loss of 1.5 million dollars in the second quarter of 2025.

“Perfect Corp. continues to prioritize the advancement of our consumer (B2C) and enterprise (B2B) businesses through AI-driven innovation,” said Alice H. Chang, founder, chairwoman, and chief executive officer of Perfect Corp, in a press statement. “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.”

Six-month financial performance and subscription metrics

For the six months ended June 30, 2026, total revenue increased by 5.9 percent to 34.3 million dollars, up from 32.4 million dollars in the first half of 2025. AI and AR cloud solutions and subscription revenue rose 5 percent to 30.4 million dollars, supported by user adoption of mobile photo and video editing features in the YouCam suite. Licensing revenue for the six-month period fell by 13.2 percent to 2.2 million dollars, reflecting the strategy of the group to phase out legacy non-recurring licensing in favor of recurring software-as-a-service subscriptions.

Operating income for the first half of the year reached 1.4 million dollars, swinging from an operating loss of 1.6 million dollars in the same period of 2025. Net income for the six-month period rose by 45.3 percent to 3.6 million dollars. Cash and cash equivalents, including time deposits and treasury holdings, stood at 177.1 million dollars as of June 30, 2026.

Active subscribers for the YouCam mobile apps and web services totaled 820,000 at the end of the second quarter, compared to over 960,000 as of June 30, 2025, reflecting heightened market competition.

The financial announcement follows corporate developments regarding the ownership structure of the firm. On July 10, 2026, Perfect Corp entered into a definitive agreement for a going-private transaction, following the evaluation of a preliminary proposal received in March 2026.