PRSO — Peraso Inc.

Summary of Peraso Inc. (PRSO) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $2.9 million, down from $3.2 million in Q3 2025 and $3.7 million in Q4 2024.
• Full-Year 2025 Revenue: $12.2 million, compared to $14.6 million in 2024.
• Product Revenue (Q4 2025): $2.8 million, down from $3.1 million in Q3 2025 and $3.7 million in Q4 2024.
• Millimeter Wave Product Revenue: $2.4 million in Q4 2025, down from $3 million in Q3 2025 but significantly up from $200,000 in Q4 2024. Full-year millimeter wave revenue reached $9.1 million, up from $1.3 million in 2024.
• GAAP Gross Margin: 52.2% in Q4 2025, down from 56.2% in Q3 2025 but up from 51.7% in 2024. Full-year gross margin was 58.0%, compared to 51.7% in 2024.
• GAAP Net Loss: $1.2 million for Q4 2025, consistent with Q3 2025 but improved from a loss of $1.6 million in Q4 2024. Full-year net loss was $4.8 million, down from $10.7 million in 2024.
• Cash Position: Approximately $2.9 million as of December 31, 2025, up from $1.9 million at the end of Q3 2025.

2. Strategic Updates and Business Highlights

• Growth in Millimeter Wave Products: Significant year-over-year growth in millimeter wave product shipments, particularly in fixed wireless access (FWA) and tactical communications markets.
• Key Customer Wins: Secured contracts with Tachyon Networks and Wheeling for FWA solutions, and a notable partnership with Intact for military applications, including a drone identification system.
• Expansion into Adjacent Markets: Continued exploration of opportunities in tactical communications and edge AI, with partnerships aimed at addressing high data rate needs in autonomous vehicles and other applications.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Forecast: Expected to be approximately $1.2 million, significantly impacted by a delay in a large order due to supplier logistics issues.
• Long-term Growth Prospects: Management remains optimistic about future growth in millimeter wave revenue driven by expanding customer engagements and new market opportunities.

4. Challenges and Points of Concern

• Supply Chain Issues: A delay in receiving key materials from an Asia-based supplier is expected to negatively impact Q1 2026 revenue by over $500,000.
• Visibility into Demand: Lower visibility into future demand due to irregular order patterns from FWA customers and new customers without established order histories.
• Declining Product Revenue: Overall product revenue decreased year-over-year, primarily due to the end of life of certain memory IC products.

5. Notable Q&A Insights

• Intact Deal Revenue Timing: Initial revenue from the Intact partnership is expected to be primarily nonrecurring engineering (NRE) in 2026, with a shift to production revenue anticipated in the second half of the year.
• Customer Engagements: Active conversations with 3-5 high-profile customers in adjacent markets, with potential for production orders by late 2026 or early 2027.
• Military Market Interest: Increased interest in drone applications and secure communication solutions in military contexts, reflecting a growing demand for Peraso's technology.

Overall, while Peraso Inc. has demonstrated strong growth in specific product lines and secured key partnerships, it faces challenges related to supply chain disruptions and revenue visibility. The company remains focused on strategic growth initiatives and maintaining disciplined expense management.