Perimeter Solutions Reports 28% Revenue Growth in Q2 2025, Operating Loss Due to Advisory Fees

Perimeter Solutions, Inc. reported significant financial results for the second quarter of 2025, with net sales reaching $162.6 million, a 28% increase from $127.3 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $101.5 million, up 39% from $73.3 million in the prior year. However, the company recorded an operating loss of $26.2 million, a stark contrast to the operating income of $45.0 million reported in the second quarter of 2024. This shift was largely attributed to a dramatic increase in founders advisory fees, which surged to $96.9 million from $0.6 million, reflecting changes in the fair value of liability-classified advisory amounts.

For the first half of 2025, Perimeter Solutions reported net sales of $234.7 million, a 26% increase compared to $186.3 million in the same period of 2024. The Fire Safety segment contributed significantly to this growth, with sales increasing by $33.7 million, driven by heightened fire activity and increased demand for fire retardants. The Specialty Products segment also saw a boost, with revenues rising by $14.6 million, bolstered by contributions from recently acquired businesses. Despite the increase in sales, the company faced a net income of $24.5 million, a notable recovery from a net loss of $60.9 million in the first half of 2024.

Operationally, Perimeter Solutions has been active in expanding its capabilities, including the acquisition of certain product lines for $10 million in cash, which is expected to enhance its Specialty Products segment. The company also reported a significant increase in its inventory levels, which rose to $150.0 million from $116.3 million at the end of 2024, indicating preparations for anticipated demand. The total assets of the company increased to $2.49 billion, up from $2.42 billion at the end of the previous fiscal year, reflecting growth in both current and long-term assets.

The company’s geographic sales distribution remains heavily weighted towards the United States, which accounted for approximately 71% of net sales in the second quarter of 2025. The company continues to focus on maintaining its existing customer base while expanding into emerging technologies and markets. As of June 30, 2025, Perimeter Solutions had a cash balance of $140.7 million, which, along with cash flows from operations and available credit, is expected to support its operational and capital needs for the foreseeable future.

Looking ahead, Perimeter Solutions anticipates continued growth driven by increasing demand for fire safety products amid rising fire severity and longer fire seasons. The company is also focused on mitigating inflationary pressures and supply chain challenges while exploring further acquisition opportunities to enhance its market position. The management remains optimistic about the company's ability to navigate these challenges and capitalize on growth opportunities in both the Fire Safety and Specialty Products segments.