PRSO — Peraso Inc.

Summary of Peraso Inc. 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, down from $14.6 million in 2024.
• Product Revenue: Q4 2025 product revenue was $2.8 million, down from $3.1 million in Q3 2025 and $3.7 million in Q4 2024. Full-year product revenue was $11.8 million, down from $14.2 million in 2024.
• Millimeter Wave Product Revenue: Q4 revenue was $2.4 million, down from $3 million in Q3 2025 but significantly up from $200,000 in Q4 2024. Full-year revenue reached $9.1 million, a substantial increase from $1.3 million in 2024.
• GAAP Gross Margin: 52.2% in Q4 2025, down from 56.2% in Q3 2025 but up from 56.3% in Q4 2024. Full-year gross margin improved to 58.0% from 51.7% in 2024.
• GAAP Net Loss: $1.2 million for Q4 2025, consistent with Q3 2025 and improved from a loss of $1.6 million in Q4 2024. Full-year net loss was $4.8 million, significantly reduced from $10.7 million in 2024.
• Cash Position: As of December 31, 2025, cash was approximately $2.9 million, up from $1.9 million at the end of Q3 2025.

2. Strategic Updates and Business Highlights

• Millimeter Wave Growth: Continued strong demand in the fixed wireless access market, with significant year-over-year growth in millimeter wave product shipments.
• New Customer Wins: Secured contracts with Tachyon Networks and Wheeling for fixed wireless access solutions, and a partnership with Intact for tactical communications, including a drone identification system.
• Market Expansion: Transition into tactical communications marked as a new growth vertical, with successful initial trials and ongoing engagements with defense contractors.
• Adjacent Market Opportunities: Collaborations with Bayer Wertz for robotaxi applications, showcasing the versatility of 60 GHz technology in high-bandwidth scenarios.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Forecast: Expected to be approximately $1.2 million, significantly impacted by a delayed shipment of over $500,000 due to supplier logistics issues.
• Long-Term Growth: Management remains optimistic about expanding customer engagements across fixed wireless access and tactical communications, with a focus on high-growth adjacent markets.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: Notable decrease in overall revenue and product revenue compared to previous quarters and year-over-year.
• Delayed Shipments: A significant order expected in Q1 2026 has been postponed to Q2 due to customs delays, which could impact revenue recognition and order patterns for the year.
• Visibility into Demand: Lower visibility into future demand due to irregular order patterns from fixed wireless access customers and new customers without established order histories.

5. Notable Q&A Insights

• Intact Deal Revenue Timing: Initial revenue from the Intact partnership is expected to be predominantly nonrecurring engineering fees, with production revenue anticipated to ramp up in the second half of 2026.
• Customer Engagements: Active discussions with 3 to 5 major customers in adjacent markets, including Fortune 100 companies, with potential for rapid order conversion.
• Investment Strategy: The company plans to charge customers for engineering and R&D contributions, ensuring that customer commitment validates market demand.

Overall, while Peraso Inc. has made significant strides in millimeter wave technology and customer engagements, challenges related to revenue decline and supply chain delays present headwinds for the near term.