Revenue Performance - For the three months ended September 30, 2025, product revenue was $3,062,000, a decrease of 20% compared to $3,811,000 for the same period in 2024[131] - For the nine months ended September 30, 2025, product revenue totaled $9,080,000, down 14% from $10,596,000 in the prior year[131] - Memory IC product revenue for the three months ended September 30, 2025, was $72,000, a significant decline of $3,605,000 from $3,677,000 in 2024[133] - mmWave ICs revenue increased to $2,276,000 for the three months ended September 30, 2025, compared to $67,000 in the same period of 2024, reflecting a growth of $2,209,000[133] - Royalty and other revenue for the three months ended September 30, 2025, increased to $172,000, a 473% increase compared to $30,000 in the same period of 2024[134] Expenses and Losses - The company incurred net losses of approximately $3.5 million for the nine months ended September 30, 2025, and $10.7 million for the year ended December 31, 2024, leading to an accumulated deficit of approximately $180.6 million[114] - Research and development expenses for the three months ended September 30, 2025, decreased to $1,528,000, a 29% decrease from $2,158,000 in the same period of 2024[139] - Selling, general and administrative expenses for the three months ended September 30, 2025, decreased to $1,479,000, a 37% decrease from $2,349,000 in the same period of 2024[142] - Net cash used in operating activities for the first nine months of 2025 was $4.6 million, primarily due to a net loss of $3.5 million[147] - The company expects to continue incurring operating losses during 2025, with cash expenditures expected to exceed receipts for at least the next 12 months[154] Financial Position - Cash and cash equivalents as of September 30, 2025, were $1.9 million, with working capital of $3.1 million[146] - The company had outstanding non-cancelable purchase orders for inventory of approximately $2.7 million as of September 30, 2025[152] - The company expressed substantial doubt about its ability to continue as a going concern, indicating potential financial instability[157] - The company is currently seeking additional financing to meet cash requirements for the foreseeable future[157] - If additional capital cannot be raised on acceptable terms, the company may need to curtail existing operations[160] Corporate Actions - The company received additional purchase orders totaling approximately $452,800 for remaining inventory of memory IC products after initiating an end-of-life process in May 2023[113] - On September 11, 2025, the company entered into an inducement offer agreement resulting in net proceeds of approximately $0.9 million from the exercise of Series C Warrants[126] - The company regained compliance with Nasdaq's minimum bid price requirement on September 19, 2025, after previously receiving a notification of non-compliance[127] - Mobix Labs proposed to acquire all outstanding shares of the company for $1.30 per share, consisting of a mix of cash and common stock[121] - The company is currently evaluating options to enhance stockholder value in response to Mobix Labs' acquisition proposals[125] Capital Management - The company completed warrant inducement offerings in September 2025 and November 2024, raising approximately $0.9 million and $2.6 million, respectively[158] - During the three and nine months ended September 30, 2025, the company sold 733,049 and 2,003,207 shares of common stock for proceeds of approximately $751,200 and $2,270,200, net of commissions[158] - The maximum aggregate offering amount of common stock under the Sales Agreement was increased to $1,750,000 on October 10, 2025[158] - The company implemented workforce reductions, eliminating 19 full-time equivalent positions to preserve cash and reduce operating costs[158] - The company has kept capital expenditures to minimum levels to reduce operating costs and short-term cash needs[158] Financial Reporting - Cost of net revenue for the three months ended September 30, 2025, decreased to $1,417,000, a 30% reduction from $2,034,000 in the same period of 2024[135] - Gross profit for the three months ended September 30, 2025, was $1,817,000, reflecting a 1% increase from $1,807,000 in the same period of 2024[137] - The company does not maintain any off-balance sheet arrangements that could materially affect its financial condition[161] - Indemnification agreements have been entered into with officers and directors, but no material amounts related to these indemnifications are reflected in the financial statements[162]

Core Insights - Peraso reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.25, marking an earnings surprise of +40.00% [1] - The company achieved revenues of $3.23 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.00%, although this represents a decline from $3.84 million year-over-year [2] - Peraso has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The company experienced a loss of $0.34 per share in the same quarter last year, indicating improvement in performance year-over-year [1] - Peraso's shares have declined approximately 1.7% since the beginning of the year, contrasting with the S&P 500's gain of 14.4% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $3.58 million, and for the current fiscal year, it is -$0.59 on revenues of $12.74 million [7] - The estimate revisions trend for Peraso was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which Peraso belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $3.2 million, up from $2.2 million in the prior quarter and down from $3.8 million in Q3 2024 [19] - GAAP gross margin increased to 56.2% in Q3 2025 from 48.3% in the prior quarter and 47% in the same quarter a year ago [21] - Non-GAAP gross margin for Q3 2025 was also 56.2%, compared to 48.3% in the prior quarter and 61.7% in Q3 2024 [22] - GAAP operating expenses for Q3 2025 were $3 million, down from $4.5 million in Q3 2024 [22] - Non-GAAP net loss for Q3 2025 was $1.7 million or a loss of $0.28 per share, compared to a loss of $2.7 million or $0.98 per share in the prior quarter [23] Business Line Data and Key Metrics Changes - Revenue from millimeter wave products was $3 million in Q3 2025, compared to $2.2 million in the prior quarter and $0.1 million in Q3 2024 [20] - The increase in revenue was primarily driven by a favorable revenue mix of millimeter wave products and solutions [21] Market Data and Key Metrics Changes - The company noted a steady recovery in market demand and customer orders for its 60 GHz wireless solutions, particularly in the fixed wireless access market [6][7] - The company highlighted significant wins in fixed wireless access, including partnerships with Tachyon Networks and WeLink Communications [9][10] Company Strategy and Development Direction - The company is focusing on expanding its millimeter wave solutions into new markets, including tactical communications for military applications [11][12] - The management emphasized the versatility of its technology, which can support high-bandwidth video for edge AI applications [14][15] - The company is committed to disciplined expense management while driving growth in its millimeter wave product lines [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the renewed momentum in the fixed wireless access market [7] - The company expects total net revenue for Q4 2025 to be in the range of $2.8 million to $3.1 million based on current backlog [25] Other Important Information - The company had approximately $1.9 million in cash as of September 30, 2025, compared to $1.8 million as of June 30, 2025 [24] - The strategic review process is ongoing, with no new updates provided during the call [24] Q&A Session Summary Question: Can you provide more details on the new OEM announced? - The new OEM is a significant player in the space, and the company is optimistic about the opportunity, although specifics cannot be disclosed due to confidentiality [26][27] Question: What is the expected timeline for customer production schedules? - The typical engagement to mass production timeline is 9-12 months for fixed wireless, while new markets like military may take 12-15 months [29] Question: How should the market view the increase in inventory and accounts receivable? - The increase in accounts receivable was due to timing of sales, and inventory was built to meet anticipated demand for Q1 and Q2 [30][31] Question: What is the outlook for gross margin going forward? - The company aims to maintain gross margins around 50%, with some fluctuations based on product mix and inventory sales [32][33] Question: How long does it typically take for pre-production customers to contribute to revenue? - Once a customer reaches pre-production, it typically takes about three months before they start contributing meaningfully to revenue [34]

Financial Performance - Peraso Inc. reported financial results for the three and nine months ended September 30, 2025, with a focus on operational performance metrics[4]. - There were no amortization charges recorded for the three and nine months ended September 30, 2025, as intangibles were fully amortized by December 31, 2024[8]. - The company recorded severance charges during the six months ended June 30, 2024, which were fully paid by the quarter ended September 30, 2025[9]. - Adjusted EBITDA is calculated by excluding stock-based compensation, amortization of intangible assets, severance costs, and changes in fair value of warrant liabilities[11]. - The company emphasizes the use of non-GAAP financial measures to provide a clearer view of operational performance compared to GAAP measures[13]. - Management believes that excluding certain charges facilitates better comparisons of operational performance across periods[7]. Operational Changes - The company implemented employee layoffs in November 2023, impacting 16 employees, to reduce operating expenses and cash burn[9]. - Peraso Inc. aims to prioritize business activities with higher returns on investment following the recent restructuring[9]. - The company continues to analyze historical consolidated results to assess business performance and compare it to performance objectives[12]. Forward-Looking Information - The press release detailing these results is available as Exhibit 99.1, which should be read in conjunction with cautionary statements regarding forward-looking information[4].

Third Quarter 2025 Earnings Conference Call Copyright © 2025 Peraso Inc. Disclaimer This presentation is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, we makes no representation or warrant with respect to the accuracy of such information. Trademarks and trade names referred to in this presentation are the property of their respective owners. We do not ...

mmWave Product Revenue Increases 35% Sequentially to Quarterly Record SAN JOSE, CA / ACCESS Newswire / November 10, 2025 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a pioneer in mmWave wireless technology solutions, today announced financial results for the third quarter ended September 30, 2025. Management Commentary "We had a notably strong third quarter, with total revenue increasing more than 45% sequentially driven by record quarterly revenue from our mmWave products," commented Ron Glibbe ...

IRVINE, Calif., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Mobix Labs, Inc. (Nasdaq: MOBX), a rapidly growing fabless semiconductor and connectivity company serving the defense, aerospace, and high-reliability markets, today announced that it has entered into a mutual confidentiality agreement with Peraso, Inc. (Nasdaq: PRSO) to begin cooperative discussions toward a potential acquisition. The agreement creates a structured and collaborative framework for the confidential exchange of information as the two companies ...

Summary of Peraso's Conference Call Company Overview - **Company Name**: Peraso - **Incorporation**: 2008, went public in December 2021 through a merger - **Business Focus**: Semiconductor company specializing in high-speed wireless technology, particularly mmWave technology, similar to Nvidia's business model [1][2] Industry Insights - **Market Growth**: The millimeter wave market is projected to grow from $5 billion this year to approximately $30 billion by 2023, representing an annual growth rate of about 25% [5] - **Military Segment Growth**: The military segment for millimeter wave technology is expected to grow at a rate of 42% due to its stealth capabilities [5] Core Business Areas 1. **Fixed Wireless Access**: - Focus on providing high-speed internet, particularly in rural areas where large telcos do not operate [6] - Lead customer: Ubiquiti, a $40 billion company with eight products based on Peraso's chips [6] 2. **Military Communications**: - Emphasis on stealthy communication capabilities that are undetectable in military environments [4] - Ongoing trials and demos with the U.S. government and other international military entities [10][11] 3. **Edge AI Applications**: - High bandwidth video processing for applications like self-driving cars and factory automation [12][13] 4. **Transportation**: - Trials in Asia to provide internet access on moving trains [14][15] Technological Advantages - **Beamforming Technology**: - Allows for long-distance signal transmission (over 25 kilometers) with low interference, making it suitable for dense urban environments and military applications [4][7] - **Patent Portfolio**: - Strong patent portfolio with 60 issued and pending patents, including nine essential claim patents in IEEE 802.11ay [2] Financial Performance - **Revenue**: - Fiscal 2024 revenue was $14.5 million, with 90% from legacy memory products [20] - mmWave revenue was $1.5 million in 2024, with a trajectory to reach approximately $10 million in 2025 [21][22] - **Gross Margin**: - Targeting a gross margin of 50% for mmWave products, with a current margin of about 48% [22] - **Cash Position**: - Reported $1.8 million in cash as of June 30, with plans to extend runway into mid-2026 [22] Market Position - **Competitive Landscape**: - Peraso is a sole supplier in the unlicensed mmWave market, while Qualcomm and MediaTek dominate the licensed segment [24] - **Total Addressable Market (TAM)**: - Estimated at about half a billion dollars for unlicensed mmWave technology [24] Challenges and Opportunities - **Adoption Barriers**: - The transition to mmWave technology is slow as customers adapt to the new high-frequency technology [24] - **Potential Acquisition**: - Mobix Labs has expressed interest in acquiring Peraso, with ongoing discussions about a potential hostile takeover [27][28] Conclusion - Peraso is positioned as a leader in the mmWave semiconductor market with significant growth opportunities in various sectors, particularly military and urban communications. The company is navigating challenges related to technology adoption and market competition while maintaining a focus on expanding its customer base and product offerings [18][19]

Core Insights - Peraso Inc. has received additional non-cancelable purchase orders totaling $0.5 million, indicating strong demand for its products [1] - These orders are linked to the end-of-life program for the company's memory integrated circuit products, suggesting a strategic shift in product offerings [1] Company Summary - Peraso Inc. is recognized as a pioneer in mmWave wireless technology solutions, highlighting its innovative position in the industry [1] - The recent purchase orders represent unanticipated incremental last-time buys, reflecting potential customer loyalty and ongoing interest in the company's legacy products [1]

Core Viewpoint - Peraso (PRSO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3][5]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Company Performance and Outlook - The upgrade for Peraso reflects an improvement in its underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - Over the past three months, the Zacks Consensus Estimate for Peraso has increased by 46.2%, indicating a significant upward revision in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, positioning Peraso among the best candidates for potential market-beating returns [8][9].