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PI

Peraso Inc. (PRSO)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered materially improved profitability metrics: total net revenue was $3.87M, up 37% YoY, with GAAP gross margin expanding to 69.3% from 56.3% in Q4 and 46.4% a year ago; GAAP EPS improved to ($0.10) and non-GAAP EPS to ($0.08) .
  • mmWave revenue inflected to $1.5M, exceeding the company’s total mmWave revenue for full-year 2024, driven by orders ramp and product innovation; management expects sequential mmWave growth through 2025 .
  • Q2 2025 revenue guidance of $1.8M–$2.0M reflects planned roll-off of EOL memory shipments, while mmWave is guided to “solid double-digit” sequential growth; this mix shift is the key near-term narrative driver .
  • Cost discipline persisted: GAAP opex fell to $3.19M, non-GAAP opex to $3.1M; adjusted EBITDA loss narrowed to $0.31M, improving QoQ and YoY .
  • Wall Street consensus (S&P Global) for PRSO was unavailable for Q1/Q2/FY25; estimate comparisons cannot be made and analysts should rely on company guidance and trajectory commentary [GetEstimates: PRSO empty].

What Went Well and What Went Wrong

What Went Well

  • mmWave momentum: “first quarter mmWave revenue exceeded our total mmWave revenue for the full year of 2024,” supported by a $3.6M 2025 purchase order and broader pipeline activity .
  • Product innovation: PERSPECTUS upgrade increased supported users per access point by 50%, and a new dual-polarized module (PRM2141X-D) targets high-mobility deployments with robust connectivity .
  • Profitability metrics improved: GAAP gross margin rose to 69.3% on favorable mix and amortization roll-off, while adjusted EBITDA improved to a $0.31M loss; GAAP opex declined materially YoY and QoQ .

What Went Wrong

  • Near-term revenue headwind: Q2 total net revenue guided down to $1.8M–$2.0M due to planned roll-off of memory IC EOL shipments, creating temporary top-line pressure despite mmWave growth .
  • Mix transition risk: Corporate gross margin target is 50%; mmWave margins initially expected “in the 40% range” and dependent on production ramp timing and specific device mix selection .
  • Limited estimate visibility: S&P Global consensus unavailable; smaller coverage reduces real-time Street benchmarks, complicating beat/miss narratives this quarter [GetEstimates: PRSO empty].

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Net Revenue ($USD Millions)$3.841 $3.678 $3.869
Product Revenue ($USD Millions)$3.811 $3.652 $3.800
GAAP Gross Margin (%)47.0% 56.3% 69.3%
Non-GAAP Gross Margin (%)61.7% 71.6% 69.3%
GAAP EPS ($)($0.98) ($0.37) ($0.10)
Non-GAAP EPS ($)($0.34) ($0.13) ($0.08)
Segment/KPIQ1 2024Q4 2024Q1 2025
mmWave Revenue ($USD Millions)$0.3 $0.2 $1.5
GAAP Operating Expenses ($USD Millions)N/A$3.7 $3.194
Non-GAAP Operating Expenses ($USD Millions)N/A$3.2 $3.1
Adjusted EBITDA ($USD Millions)N/A($0.401) ($0.313)
Cash & Equivalents ($USD Millions, Period-End)$1.317 (Sep 30, 2024) $3.344 (Dec 31, 2024) $2.775 (Mar 31, 2025)

Notes:

  • Q1 2024 comp values shown where disclosed in Q1 press release (e.g., EPS, margins), while mmWave revenue for Q1 2024 is from call commentary .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Total Net Revenue ($USD Millions)Q1 2025$3.6–$4.0 $3.869 actual Delivered within range
Total Net Revenue ($USD Millions)Q2 2025N/A$1.8–$2.0 New (reflects EOL memory roll-off)
mmWave Revenue TrendQ2 2025N/A“Solid double-digit” sequential growth expected New directional guidance
mmWave Revenue TrajectoryFY 2025N/ASequential growth throughout 2025 expected New directional commentary

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Fixed Wireless Access (FWA) demand & DUNE platformQ3: DUNE traction; $1.4M follow-on South Africa, initial Kenya PO; inventory write-down impacting mmWave . Q4: Renewed demand and PO activity; $3.6M mmWave PO for 2025 fulfillment PERSPECTUS upgrade (+50% users/AP); mmWave revenue ramp; PO deliveries begin Q2; ongoing WISP proofs-of-concept Improving adoption and orders
Tactical communications & defenseQ3: New military PO; broader mission-critical applications outlined . Q4: Upsized order; first revenue expected mid-2025 Strategic defense contract; initial production shipments commence in Q2; stealth/jamming immunity highlighted Expanding engagements; first shipments
BEAD program (tech-neutral)Q4: NTIA/Commerce leadership signaling tech-neutral, outcome-driven approach favoring lower-cost access Expect positive impact H2 2025; still top-down momentum; could aid rural deployments Policy tailwind firming
Tariffs/macro—Minimal impact given limited US shipments; production diversified geographically Neutral currently
AI/edge connectivityQ4: Enterprise interest in high data-rate links for AI Continued enterprise scenarios for multi-Gbps connectivity Early-stage use cases

Management Commentary

  • “First quarter mmWave revenue exceeded our total mmWave revenue for the full year of 2024… Together with our ongoing efforts to closely manage expenses, we delivered meaningful improvement in our bottom-line results.” – CEO Ron Glibbery .
  • “We announced a major upgrade to our PERSPECTUS modules for fixed wireless access… increased the number of supported users per access point by 50%.” .
  • “Strategic contract with a leading specialized defense contractor to utilize Peraso’s 60 GHz wireless technology for a mission critical military application… initial production shipments… during the second quarter.” .
  • CFO reiterated mmWave revenue of $1.5M in Q1 vs $0.2M in Q4 and $0.3M in Q1 2024, and guided Q2 total net revenue to $1.8M–$2.0M while expecting solid double-digit sequential mmWave growth .

Q&A Highlights

  • Backlog visibility improved with shipments to key customers (including South Africa), initial defense shipments in Q2, and the $3.6M order shipping through year-end; visibility “much better than we've historically been” .
  • Tariffs: No meaningful impact so far due to limited US shipments and diversified production (Asia, Canada, Europe) .
  • PERSPECTUS upgrade deployability: Software upgrade enables immediate customer benefit; can be leveraged “this quarter even” .
  • Defense adoption: Significant interest globally (US, Europe, Middle East, Asia) driven by stealth beamforming; first volume shipments in Q2, broader conversions more 2026-timed .
  • BEAD: Management expects acceleration and tech-neutral stance to benefit FWA; anticipates visible impact in second half 2025 .

Estimates Context

  • S&P Global consensus estimates for PRSO were unavailable for Q1 2025, Q2 2025, and FY 2025; as such, beat/miss versus Street cannot be assessed this quarter [GetEstimates: PRSO empty].
  • Implication: Focus on company’s quantitative guidance (Q2 revenue $1.8M–$2.0M) and disclosed mmWave ramp trajectory for modeling, with margin normalization expectations (initially ~40% for mmWave, long-term corporate GM target 50%) .

Key Takeaways for Investors

  • mmWave inflection: Q1 mmWave revenue of $1.5M and claims of exceeding full-year 2024 mmWave volume position the business for mix-led margin sustainability as memory EOL rolls off; monitor sequential mmWave growth claims in Q2/Q3 deliveries .
  • Near-term top-line dip is a mix transition: Q2 guide down to $1.8M–$2.0M reflects memory runoff; track mmWave order conversion, backlog additions, and production cadence to confirm ramp offsets by H2 .
  • Margin trajectory: GAAP GM at 69.3% benefited from amortization roll-off and mix; expect mmWave GM normalization initially ~40% with path toward 50% long-term corporate target; device mix and production scale are key swing factors .
  • Defense optionality: Initial shipments in Q2 and broad interest support a second leg of growth; timelines outside the first account skew toward 2026, but the stealth/jamming immunity value proposition is compelling .
  • Policy tailwinds: Tech-neutral BEAD and outcome-driven lower-cost access stance should favor FWA; look for orders tied to rural broadband initiatives and partner demand indicators .
  • Liquidity and operating discipline: Cash at $2.78M with narrowed adjusted EBITDA loss ($0.31M); watch ATM usage, cash burn, and operating leverage as mmWave scales .
  • With no consensus coverage, price reaction is likely narrative-driven: catalysts include mmWave sequential growth validation, defense shipment milestones, and clarity on BEAD program impacts .