A specialized cybersecurity firm delivering high-value security products to defense and commercial sectors with a recent surge in revenue but facing significant profitability headwinds.
Investors may view the stock as a turnaround opportunity given the massive 78% revenue increase to record levels in 2025 and a robust cash position of $325.9M that provides flexibility for debt reduction or strategic acquisitions.
The current financial profile presents a high-risk investment due to a material retained earnings deficit of -$793.1M, negative operating profit, and the fact that cash flow from operations does not cover net income adjustments, suggesting underlying operational inefficiencies.
Perimeter Solutions Inc. provides mission-critical cybersecurity solutions, including advanced threat detection and data protection software, primarily serving government agencies and large enterprise clients in the United States and Europe.
While revenue jumped significantly to $652.9M in 2025 from previous years, net income turned sharply negative at -$206.4M, indicating that recent growth is being funded by substantial operating expenses and non-cash adjustments totaling over $435M.
The cybersecurity industry is experiencing rapid expansion as organizations increase spending on digital defense against sophisticated state-sponsored attacks, yet it remains capital intensive with high pressure on margins due to continuous innovation requirements.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $360.5M | $322.1M | $561.0M | $652.9M |
| Cost of Revenue | $217.9M | $183.3M | $243.9M | $277.7M |
| Gross Profit | $142.7M | $138.9M | $317.1M | $375.1M |
| Operating Expenses | $12.6M | $44.4M | $320.9M | $576.1M |
| Operating Income | $130.1M | $94.5M | $-3.8M | $-200.9M |
| G&A | $74.3M | $57.1M | $66.9M | $77.6M |
| Stock-Based Comp | $14.6M | $1.6M | $12.8M | $16.6M |
| D&A | $65.8M | $64.9M | $65.7M | $74.0M |
| Depreciation | $10.7M | $9.8M | $10.7M | $14.3M |
| Amortization | $55.1M | $55.1M | $55.0M | $59.7M |
| Other OpEx | $-61.7M | $-12.7M | $254.0M | $498.5M |
| Non-Operating Income | $-32.8M | $-32.9M | $-43.1M | $-35.3M |
| Interest Expense | $42.6M | $41.4M | — | — |
| Pre-Tax Income | $97.2M | $61.6M | $-46.9M | $-236.2M |
| Income Tax | $5.5M | $-5.9M | $-41.0M | $-29.9M |
| Continuing Ops | $91.8M | $67.5M | $-5.9M | $-206.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $91.8M | $67.5M | $-5.9M | $-206.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $91.8M | $67.5M | $-5.9M | $-206.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $308.5M | $251.0M | $394.0M | $564.0M |
| Cash & Equivalents | $126.8M | $47.3M | $198.5M | $325.9M |
| Marketable Securities | — | $5.5M | $0 | — |
| Accounts Receivable | $26.6M | $39.6M | $56.0M | $64.4M |
| Inventory | $143.0M | $145.7M | $116.3M | $139.6M |
| Prepaid Expenses | $12.0M | $18.5M | $23.2M | $34.0M |
| Other Current Assets | $214.0K | $-5.5M | $0 | $0 |
| Long-Term Assets | $2.15B | $2.06B | $2.02B | $2.09B |
| PP&E (Net) | $58.8M | $59.4M | $64.8M | $85.1M |
| Goodwill | $1.03B | $1.04B | $1.03B | $1.07B |
| Operating Leases | $18.6M | $16.3M | $17.3M | $30.2M |
| Other LT Assets | $1.04B | $952.4M | $905.8M | $908.5M |
| Total Assets | $2.46B | $2.32B | $2.42B | $2.65B |
| Current Liabilities | $74.2M | $55.1M | $62.5M | $175.1M |
| Accounts Payable | $36.8M | — | — | — |
| Current Leases | $3.5M | $2.1M | $2.7M | $3.7M |
| Deferred Revenue | $0 | $0 | $1.8M | $1.9M |
| Other Current Liab | $33.8M | $52.9M | $58.0M | $169.6M |
| Long-Term Liabilities | $1.24B | $1.11B | $1.20B | $1.34B |
| Long-Term Debt | $665.3M | $666.5M | $667.8M | $669.1M |
| LT Operating Leases | $15.5M | $14.9M | $15.5M | $27.9M |
| Other LT Liab | $562.8M | $426.7M | $513.3M | $647.6M |
| Total Liabilities | $1.32B | $1.16B | $1.26B | $1.52B |
| Shareholders' Equity | $1.14B | $1.15B | $1.16B | $1.13B |
| Paid-In Capital | $1.70B | $1.70B | $1.91B | $2.10B |
| Retained Earnings | $-648.3M | $-580.8M | $-586.7M | $-793.1M |
| AOCI | $-25.5M | $-19.7M | $-39.2M | $-6.4M |
| Total L&E | $2.46B | $2.32B | $2.42B | $2.65B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $91.8M | $67.5M | $-5.9M | $-206.4M |
| Non-Cash Adjustments | $-211.4M | $-59.8M | $224.8M | $435.7M |
| Working Capital Changes | $79.4M | $-7.5M | $-30.5M | $8.8M |
| Cash from Operations | $-40.2M | $193.0K | $188.4M | $238.1M |
| Capital Expenditures | $8.6M | $9.4M | $15.5M | $29.6M |
| Cash from Investing | $-10.3M | $-14.9M | $-42.9M | $-106.8M |
| Share Buybacks | $49.3M | $64.1M | $14.4M | $40.4M |
| Cash from Financing | $-48.8M | $-64.5M | $8.3M | $-9.0M |
| FX Effect | $431.0K | $-320.0K | $-2.6M | $5.1M |
| Net Change in Cash | $-98.8M | $-79.5M | $151.2M | $127.5M |
| Beginning Cash | $225.6M | $126.8M | $47.3M | $198.5M |
| Ending Cash | $126.8M | $47.3M | $198.5M | $325.9M |
The company operates through core segments focused on network security, data protection, and cloud security services, generating revenue largely from software licenses, professional services, and maintenance contracts for government and enterprise customers.
Severe earnings volatility driven by one-time charges or restructuring impacts, heavy reliance on long-term debt financing which increases interest rate sensitivity, potential loss of large government contracts affecting revenue stability, and the high cost of maintaining R&D in a rapidly changing threat landscape.
Strong foothold in sensitive government markets requiring rigorous compliance, high switching costs for enterprise clients due to integrated threat intelligence, and a specialized workforce capable of developing custom defense solutions against evolving cyber threats.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.