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PI

Peraso Inc. (PRSO)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $2.2M, above the company’s prior Q2 guidance of $1.8–$2.0M; mmWave product revenue grew 45% sequentially and over 200% YoY as the business transitioned fully to mmWave shipments, while GAAP gross margin compressed to 48.3% on mix .
  • GAAP EPS was ($0.31) and non-GAAP EPS was ($0.28); operating expenses fell YoY on lower stock-based comp and the absence of intangible amortization (fully amortized in 2024) .
  • Management guided Q3 2025 revenue to $2.8–$3.1M, citing growing order backlog and ramping mmWave shipments; this sets up sequential growth into Q3 despite the margin reset to mmWave-only mix .
  • Near-term stock catalysts: continued mmWave shipment ramp (defense and FWA deployments), execution against Q3 revenue guidance, and ongoing corporate interest from Mobix Labs (unsolicited proposals announced Aug–Oct 2025) .

What Went Well and What Went Wrong

What Went Well

  • “mmWave product revenue increased 45% sequentially and over 200% year-over-year,” with record contribution expected in Q3, highlighting demand strength and pipeline conversion in both FWA and defense markets .
  • Management achieved operating expense reductions; GAAP OpEx fell to $2.9M versus $6.8M in Q2 2024, helped by lower stock-based comp and no intangible amortization (fully amortized by 12/31/2024) .
  • Strategic wins: Tachyon Networks selected Peraso’s module for 60GHz fixed wireless; first production shipments delivered for a mission-critical defense application; shipments expanded into education deployments (wireless video for classrooms) .

What Went Wrong

  • Top-line declined on the roll-off of memory IC EOL shipments: total revenue fell to $2.2M from $3.9M in Q1; GAAP gross margin compressed to 48.3% (from 69.3% in Q1) due to all-mmWave revenue mix .
  • Profitability deteriorated sequentially: GAAP net loss widened to $1.8M (EPS ($0.31)) versus a $0.5M loss (EPS ($0.10)) in Q1; adjusted EBITDA fell to -$1.6M from -$0.3M, reflecting lower revenue scale during the mix transition .
  • Estimates context unavailable via S&P Global for Q2 2025; lack of coverage increases model dispersion risk and can limit near-term institutional sponsorship (see “Estimates Context”) [GetEstimates Q2 2025 returned no data].

Financial Results

Revenue and EPS vs Prior Periods and Estimates

MetricQ4 2024Q1 2025Q2 2025Q2 2025 Consensus
Total Net Revenue ($USD Millions)$3.678 $3.869 $2.200 N/A*
Product Revenue ($USD Millions)$3.652 $3.800 $2.200 —
GAAP Diluted EPS ($)($0.37) ($0.10) ($0.31) N/A*
Non-GAAP EPS ($)($0.13) ($0.08) ($0.28) —

*Values retrieved from S&P Global; consensus unavailable for Q2 2025.

Margins and Profitability vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
GAAP Gross Margin %56.3% 69.3% 48.3%
Non-GAAP Gross Margin %71.6% 69.3% 48.3%
GAAP Operating Expenses ($USD Millions)$3.698 $3.194 $2.900
Non-GAAP Operating Expenses ($USD Millions)$3.200 $3.100 $2.700
Adjusted EBITDA ($USD Millions)-$0.40 -$0.31 -$1.60

Segment/Product Mix (mmWave vs Memory)

SegmentQ4 2024Q1 2025Q2 2025
mmWave Product Revenue ($USD Millions)N/A (memory EOL dominated) $1.50 $2.20 (all shipments mmWave)
Memory IC Product Revenue ($USD Millions)N/A (EOL shipments) $2.30 (calc = $3.80 - $1.50) $0 (EOL completed)
mmWave Share of Product Revenue (%)N/A 39.5% (calc = $1.50 / $3.80) 100%

KPIs

KPIQ4 2024Q1 2025Q2 2025
Cumulative mmWave devices shipped (units)N/AN/A>2,000,000
Memory IC remaining backlog ($USD Millions)$2.3 at 12/31/2024 Completed in Q1 None (mix all mmWave)
Cash & Equivalents ($USD Millions)$3.344 $2.775 N/A

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Net Revenue ($USD Millions)Q2 2025$1.8–$2.0 Actual: $2.2 Raised vs prior guidance (actual beat)
Total Net Revenue ($USD Millions)Q3 2025N/A$2.8–$3.1 Introduced
Gross Margin Commentary2H 2025 and LTCorp target ~50% GM; near-term ~40% on mmWave mix Q2 GM 48.3% (mmWave-only) Trajectory aligns with commentary

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
mmWave ramp & product mixMemory EOL driving revenue; mmWave poised to grow in 2025 mmWave revenue $1.5M; sequential growth expected through 2025 All revenue from mmWave; +45% seq., >200% YoY mmWave growth Accelerating mmWave mix and shipments
Fixed Wireless Access (FWA)DUNE platform traction; $3.6M PO from leading provider PERSPECTUS upgrades (+50% endpoints), mmWave backlog visibility Tachyon Networks selection for 60GHz FWA; continued ramp FWA demand improving, deployments expanding
Defense/tactical communicationsUpsized order; initial rev mid-2025; broader applications Initial production shipments to start in Q2; global interest First production shipments delivered for mission-critical defense Converting pipeline into shipments
Tariffs/macroBEAD moving toward tech-neutral, potential FWA tailwind Tariff impact minimal given supply chain footprint No new macro/tariff impact disclosed Supportive policy; limited tariff exposure
R&D/technologyAI at edge use cases in enterprise; broad mmWave applicability New dual-polarized module; patent allowance >2M cumulative mmWave shipments; broadening applications (education) Continuous innovation with commercialization
Regional trendsFWA adds in North America; SA traction Backlog visibility incl. South Africa Urban and rural deployments noted Diversifying geographic footprint

Management Commentary

  • “Second quarter shipments reflected increased demand… we recently achieved a significant milestone having surpassed two million cumulative shipments of our mmWave devices.” — Ron Glibbery, CEO .
  • “We delivered our first production shipments of advanced 60 GHz wireless solutions for a mission-critical defense application… expanding our served addressable market into education applications.” — CEO .
  • “Based on our existing pipeline… and growing order backlog, we anticipate continued sequential growth and record revenue contribution from our mmWave products in the third quarter of 2025.” — CEO .
  • CFO margin framework: near-term mmWave margins ~40%; corporate target 50%, improving with steady-state production and inventory utilization .

Q&A Highlights

  • Visibility/backlog: Management cited improved backlog and shipments across existing customers, including South Africa, and commencement of defense shipments, supporting mmWave growth through year-end .
  • Tariffs: Minimal impact due to production in Asia/Canada/Europe and limited U.S. shipments; monitoring for changes .
  • Product deployment: PERSPECTUS module upgrades can be deployed immediately via software, enabling 50% more endpoints per access point in dense urban FWA networks .
  • Defense adoption: Early production shipments in Q2 with broader global interest; use cases include stealth communications across soldier-to-vehicle, drone-to-ground, and vehicle-to-vehicle links .
  • Policy tailwinds: BEAD program’s tech-neutral pivot may accelerate mmWave/FWA adoption; management expects benefits in 2H 2025 as states implement lower-cost solutions .

Estimates Context

  • Street consensus (S&P Global) for Q2 2025 revenue and EPS was unavailable; no data points returned for PRSO. As a result, formal beat/miss vs Street cannot be determined for Q2 2025 (values retrieved from S&P Global).
  • Implications: Models likely need to reflect the shift to all-mmWave revenue (lower gross margin than memory EOL quarters), sequential mmWave growth outlook into Q3, and operating leverage as volumes scale and inventory normalization benefits margins in 2H 2025 .

Key Takeaways for Investors

  • Q2 marked a successful pivot to all-mmWave shipments with strong sequential/YoY mmWave growth, though total revenue and margins normalized lower vs memory EOL quarters; execution against Q3 guidance is the next proof point .
  • Revenue beat vs internal guidance indicates conservative forecasting and demand strength; focus shifts to sustaining sequential growth and widening customer adoption across FWA, defense, and new verticals (education) .
  • Margin path: Near-term GM ~40–50% on mmWave mix with potential improvement as production steadies and inventory flows; track 2H margin cadence vs CFO’s framework .
  • Defense is becoming a real revenue contributor; watch for additional contracts/shipments that diversify away from FWA cyclicality and improve ASP/margins .
  • Policy tailwinds (tech-neutral BEAD) may support FWA deployments; monitor state-level awards and customer orders translating into volume .
  • Corporate action watch: Mobix Labs’ multiple unsolicited proposals in Aug–Oct 2025 add an external catalyst; any formal process could impact valuation trajectories and strategic optionality .
  • Near-term trading: Stock likely to react to order flow updates, Q3 revenue delivery ($2.8–$3.1M), and signs of margin stabilization; medium term thesis rests on converting a ~120-engagement pipeline into sustained mmWave revenue scale and operating leverage .