Summary of Peraso Inc. Q3 2025 Investor Presentation Company Overview - **Company**: Peraso Inc. - **Industry**: Semiconductor, specifically focused on mmWave technology - **Business Model**: Fabless semiconductor company, designs chips and outsources manufacturing [2][23] Core Technology and Market Insights - **Technology Focus**: mmWave technology, operating in the spectrum of 24 to 300 gigahertz, emphasizing beamforming capabilities [3][4] - **Market Size**: The overall chipset market for mmWave technology is projected to grow from $5 billion to over $30 billion by 2033, representing a 25% compounded annual growth rate (CAGR) [4] - **Defense Market Growth**: The defense sector is expected to grow from $624 million to $7.179 billion, indicating a 42% CAGR [5] Key Applications - **Fixed Wireless Access**: High-speed internet access, with significant partnerships, notably with Ubiquiti, which has a valuation of approximately $30 billion [6][10] - **Stealth Communications**: Technology is crucial for military applications, providing low probability of detection and jamming, enhancing battlefield communication [12][13] - **Transportation**: Real-time high-speed internet for moving vehicles such as buses and trains [15] - **Professional Video Delivery**: Applications in virtual reality and real-time medical environments, such as operating rooms [16][17] - **Emerging Applications**: Autonomous vehicles requiring high data rates for information transfer [35][36] Financial Performance - **2024 Revenue**: Approximately $14.5 million, primarily from legacy memory products, transitioning to a pure mmWave focus [23][24] - **mmWave Revenue Growth**: Revenue increased from $1.5 million in the previous year to $3.8 million in the first half of 2025, with expectations for continued growth [24][25] - **Gross Margin Target**: Future target for mmWave products is approximately 50% gross margin, with recent performance nearing this target [25] Competitive Landscape - **Market Position**: Peraso is positioned as a leading supplier in the mmWave market, with limited competition following the exit of major players like Qualcomm [28][29] - **Unique Selling Proposition**: The technology's stealth capabilities and the ability to operate in unlicensed spectrum make it a preferred choice for various applications [27][31] Growth Opportunities - **BEAD Program**: A U.S. government initiative with a budget of $42.45 billion aimed at providing high-speed internet access, expected to benefit Peraso's fixed wireless business starting in 2026 [10][11] - **Military Applications**: Significant potential in military contracts, particularly in stealth communications and safety mechanisms to prevent friendly fire [14] Conclusion - **Investment Thesis**: The transition to a pure mmWave company is expected to drive growth, with increasing customer engagement and a robust pipeline of products in the market [21][26]

Financial Data and Key Metrics Changes - Total net revenue for Q2 2025 was $2.2 million, down from $3.9 million in the prior quarter and $4.2 million in Q2 2024 [20] - Product revenue in Q2 2025 was $2.2 million, compared to $3.8 million in the prior quarter and $4.1 million in Q2 2024 [20] - GAAP gross margin decreased to 48.3% in Q2 2025 from 69.3% in the prior quarter and 55.5% in the year-ago quarter [22] - GAAP operating expenses for Q2 2025 were $2.9 million, down from $3.2 million in the prior quarter and $6.8 million in Q2 2024 [22] - GAAP net loss for Q2 2025 was $1.8 million, or a loss of $0.31 per share, compared to a net loss of $0.5 million or a loss of $0.08 per share in the prior quarter [23] Business Line Data and Key Metrics Changes - Revenue from millimeter wave products was $2.2 million in Q2 2025, up from $1.5 million in the prior quarter and $0.7 million in Q2 2024, indicating a significant growth trajectory [22] - The company achieved over 2 million cumulative shipments of mmWave devices, highlighting its market leadership [6] Market Data and Key Metrics Changes - Fixed wireless access continues to be the largest and fastest-growing market opportunity for mmWave technology, driven by demand for high-speed broadband connectivity [8] - The company has seen a steady recovery in market demand and customer orders for fixed wireless access solutions throughout the first half of the year [8] Company Strategy and Development Direction - The company is focused on expanding its market presence in tactical communications and military defense applications, leveraging its mmWave technology [10] - The company aims to convert successful proof of concepts into initial production orders to sustain future growth [10][19] - The company is exploring potential strategic alternatives, including mergers or asset sales, to enhance its financial position [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for mmWave technology and its ability to address critical communication challenges in tactical defense environments [10] - The company anticipates record quarterly revenue contribution from mmWave products in Q3 2025, supported by a healthy backlog [26] Other Important Information - The company had approximately $1.8 million in cash and equivalents as of June 30, 2025, with a net change of approximately $1 million during the quarter [24] - The company is actively pursuing non-dilutive financing opportunities to strengthen its balance sheet [39] Q&A Session Summary Question: Can you provide more details on the military engagements and drone opportunities? - Management highlighted stealth communication capabilities as a key advantage in military applications, with ongoing engagements to adapt technology for drone use [32] Question: Can you confirm the legitimacy of the acquisition proposal and provide updates on the business outlook? - Management confirmed the validity of the proposal and indicated ongoing efforts to explore various capital-raising opportunities [39] Question: How is inventory trending, and have you burned through previous inventory issues? - Management noted improvements in inventory movement, with significant orders being filled and replenishment of certain products underway [41] Question: Are there opportunities for non-recurring engineering (NRE) work with the military? - Management confirmed that NRE is part of their strategy, with ongoing projects expected to lead to production and additional revenue [44][63]