Perimeter Solutions, SA (PSSA) reported significant financial changes in its 10-Q filing for the quarter ended September 30, 2024. The company experienced a substantial increase in net sales, which reached $288.4 million for the three months ended September 30, 2024, compared to $142.7 million for the same period in 2023, marking a 102% increase. For the nine months ended September 30, 2024, net sales totaled $474.7 million, up from $262.7 million in the prior year, reflecting an 81% increase.

Gross profit also saw a remarkable rise, reaching $181.2 million for the third quarter of 2024, compared to $69.8 million in the same quarter of 2023, an increase of 160%. However, the company reported an operating loss of $35.2 million for the third quarter of 2024, a stark contrast to the operating income of $27.2 million in the same quarter of 2023. For the nine-month period, the operating loss was $65.1 million, compared to an operating income of $103.4 million in the previous year.

The net loss for the third quarter of 2024 was $(89.2 million), compared to a net income of $19.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $(150.1 million), a significant decline from the net income of $80.7 million reported in the prior year. This resulted in a basic loss per share of $(0.61) for the third quarter and $(1.03) for the nine months, compared to earnings per share of $0.13 and $0.52, respectively, in the previous year.

The increase in sales was primarily driven by the Fire Safety segment, which saw net sales rise by $133.6 million in the third quarter, largely due to increased fire retardant sales. The Specialty Products segment also contributed with a $12.2 million increase in sales.

Total operating expenses surged to $216.5 million for the third quarter of 2024, compared to $42.7 million in the same period of 2023, largely due to a significant rise in founder advisory fees, which increased by $184.2 million due to a rise in the average price per Ordinary Share.

As of September 30, 2024, the company reported total assets of $2.46 billion, up from $2.32 billion at the end of 2023. Current assets increased significantly to $438.7 million, driven by a rise in cash and cash equivalents, which reached $223.1 million. However, total liabilities also increased to $1.46 billion, up from $1.16 billion at the end of 2023.

In terms of strategic developments, PSSA filed a registration statement for a Redomiciliation Transaction to convert into a corporation under Delaware law, expected to be completed by December 31, 2024, pending shareholder approval. The company is also facing inflationary pressures and is implementing measures to mitigate these impacts, including negotiating cost reductions with suppliers and contractual price escalations with customers.