Financial Data and Key Metrics Changes - Total net revenue for Q4 2025 was $2.9 million, down from $3.2 million in the prior quarter and $3.7 million in Q4 2024 [22] - Full year 2025 net revenue was $12.2 million, compared to $14.6 million in the prior year [22] - GAAP gross margin for Q4 2025 was 52.2%, down from 56.2% in the prior quarter and 56.3% in the same quarter a year ago [24] - Full year 2025 GAAP gross margin was 58%, up from 51.7% in 2024 [24] - GAAP net loss for Q4 2025 was $1.2 million, or a loss of $0.13 per share, compared to a net loss of $1.2 million or a loss of $0.17 per share in the prior quarter [27] - Full year 2025 GAAP net loss was $4.8 million, or a loss of $0.67 per share, compared to a net loss of $10.7 million or a loss of $3.57 per share in 2024 [28] Business Line Data and Key Metrics Changes - Product revenue in Q4 2025 was $2.8 million, down from $3.1 million in the prior quarter and $3.7 million in Q4 2024 [22] - Millimeter wave product revenues were $2.4 million in Q4 2025, compared to $3 million in the prior quarter and $0.2 million in Q4 2024 [23] - Full year 2025 millimeter wave product sales increased to $9.1 million from $1.3 million in 2024 [23] Market Data and Key Metrics Changes - Fixed wireless access remains the largest market, driving millimeter wave revenue growth in 2025 [7] - The company has seen a broad recovery in customer demand and order trends throughout the year, particularly for the DUNE platform and Perspectus modules [7][8] - Tactical communications marked a significant step forward, with initial customer engagements transitioning to a new market vertical with high growth potential [10] Company Strategy and Development Direction - The company aims to broaden its customer base and pipeline of design wins across fixed wireless access and tactical communications while pursuing high-growth opportunities in adjacent markets such as edge AI [20] - The focus remains on disciplined expense management to support continued year-over-year growth in millimeter wave revenue [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future prospects of the overall business despite a temporary supplier logistics issue impacting Q1 revenue [21] - The company expects total net revenue for Q1 2026 to be approximately $1.2 million, reflecting lower visibility into future demand due to irregular order patterns [33] Other Important Information - The company has approximately $2.9 million in cash as of December 31, 2025, compared to $1.9 million as of September 30, 2025 [30] - The strategic review process for potential mergers or asset sales continues in coordination with financial advisors [31] Q&A Session Summary Question: When should revenues from the INTACT deal start coming in? - Management indicated that production revenue is expected to shift in the second half of 2026, with current revenue primarily from non-recurring engineering [37][38] Question: Can you quantify the number of customers in active conversations for adjacent market opportunities? - Management mentioned they are in discussions with three to five household name companies, with potential for production orders by the end of the year [41][42] Question: What is the expected impact of the large order delay on order patterns for the remainder of the year? - Management expects the delay to have a minor impact, with orders anticipated to be replenished in Q3 and Q4 [56][57] Question: Will there be an increase in investment for R&D due to new opportunities? - Management stated that customers are contributing significantly to engineering costs, and the company is not in a position to invest heavily without customer backing [59][60]

Financial Data and Key Metrics Changes - Total net revenue for Q4 2025 was $2.9 million, down from $3.2 million in the prior quarter and $3.7 million in Q4 2024 [21] - Full year 2025 net revenue was $12.2 million, compared to $14.6 million in 2024 [21] - GAAP gross margin for Q4 2025 was 52.2%, down from 56.2% in the prior quarter and 56.3% in the same quarter a year ago [23] - Full year 2025 GAAP gross margin was 58%, up from 51.7% in 2024 [23] - GAAP net loss for Q4 2025 was $1.2 million, or a loss of $0.13 per share, compared to a net loss of $1.6 million, or a loss of $0.37 per share in the same quarter a year ago [26] - Full year 2025 GAAP net loss was $4.8 million, or a loss of $0.67 per share, compared to a net loss of $10.7 million, or a loss of $3.57 per share in 2024 [27] Business Line Data and Key Metrics Changes - Product revenue in Q4 2025 was $2.8 million, down from $3.1 million in the prior quarter and $3.7 million in Q4 2024 [21] - Millimeter wave product revenue for Q4 2025 was $2.4 million, compared to $3 million in the prior quarter and $0.2 million in Q4 2024 [22] - Total sales of millimeter wave products for full year 2025 increased to $9.1 million from $1.3 million in 2024 [22] Market Data and Key Metrics Changes - Fixed wireless access remains the largest end market, driving millimeter wave revenue growth in 2025 [6] - The company has seen a broad recovery in customer demand and order trends, particularly for the DUNE platform and Perspectus modules [6][7] - Tactical communications market has been identified as a new vertical with high growth potential, with initial customer engagements transitioning to definitive contracts [9] Company Strategy and Development Direction - The company aims to broaden its customer base and pipeline of design wins across fixed wireless access and tactical communications while pursuing high-growth opportunities in adjacent markets like edge AI [18] - The focus remains on disciplined expense management to support continued year-over-year growth in millimeter wave revenue [18] - The company is exploring potential strategic alternatives, including mergers or asset sales, to enhance capital [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects despite a temporary supplier logistics issue impacting Q1 revenue [20] - The company expects total net revenue for Q1 2026 to be approximately $1.2 million, reflecting lower visibility into future demand due to irregular order patterns [32] - Management highlighted the importance of customer engagement and the potential for significant revenue from new applications in tactical communications and adjacent markets [18][19] Other Important Information - The company reported a cash balance of approximately $2.9 million as of December 31, 2025, up from $1.9 million as of September 30, 2025 [29] - Adjusted EBITDA for Q4 2025 was -$1.1 million, compared to -$0.4 million in Q4 2024 [29] Q&A Session Summary Question: When should revenues from the InTACT deal begin to come in? - Management indicated that production revenue is expected to shift in the second half of 2026, with current revenue primarily from non-recurring engineering [36][37] Question: How many customers are in active conversations for adjacent market opportunities? - Management mentioned 3-5 potential customers, primarily household names, with significant interest in high data rate systems [40][41] Question: What is the expected impact of inventory levels on future orders? - Management anticipates that orders will be replenished in Q3 and Q4, with a large shipment delay expected to have a minor impact on the overall order pipeline [54][55] Question: Will there be an increase in investment for R&D due to new opportunities? - Management stated that customers are expected to finance engineering efforts, which helps validate market demand without significant risk to the company [57][58]

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]