Peraso, Inc. ((PRSO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, Peraso, Inc. presented a mixed sentiment, balancing strong growth in its mmWave product revenue and strategic advancements in defense applications against a backdrop of declining total net revenue, decreased gross margin, and financial constraints. The company is actively exploring strategic alternatives to address these challenges.
mmWave Product Revenue Growth
Revenue from Peraso’s mmWave products saw a remarkable increase, growing 45% sequentially and over 200% year-over-year. This surge indicates a strong demand and solid market momentum for their offerings, marking a significant achievement for the company.
Milestone Achievement in mmWave Shipments
Peraso has surpassed 2 million cumulative shipments of its mmWave devices, underscoring its leadership in the 60GHz solutions market. This milestone reflects the company’s successful penetration and sustained presence in this competitive sector.
Strategic Partnership with Tachyon Networks
The selection of Peraso’s mmWave modules by Tachyon Networks for its outdoor 60GHz fixed wireless solution demonstrates the capability of Peraso’s technology to deliver fiber-class speeds at competitive prices, further solidifying its market position.
Advancements in Tactical Defense Applications
Peraso’s successful delivery of initial production shipments for tactical defense applications validates its advanced 60GHz wireless solutions for mission-critical communications, highlighting its strategic advancements in defense technology.
Customer Base and SKU Growth
Over the past 18 months, Peraso has doubled its customer base from 7 to 14 and increased the number of SKUs in production by 90%, showcasing significant growth in its operational capabilities and market reach.
Decline in Total Net Revenue
Despite the growth in specific segments, Peraso reported a decline in total net revenue for Q2 2025, which fell to $2.2 million from $3.9 million in the previous quarter and $4.2 million in the same quarter last year, indicating challenges in overall revenue generation.
Decreased Gross Margin
The company’s GAAP gross margin decreased to 48.3% in Q2 2025 from 69.3% in the prior quarter and 55.5% a year ago, primarily due to changes in the product mix, affecting profitability.
Operating Loss and Cash Constraints
Peraso reported a GAAP net loss of $1.8 million for Q2 2025, with limited cash reserves of $1.8 million as of June 30, 2025, highlighting financial constraints and the need for strategic financial management.
Exploration of Strategic Alternatives
In response to financial challenges, Peraso is exploring potential strategic alternatives, including mergers or sales of assets, to enhance its capital position and shareholder value.
Forward-Looking Guidance
Looking ahead, Peraso anticipates continued sequential growth and a record revenue contribution from mmWave products in Q3 2025, with projected net revenue between $2.8 million and $3.1 million. The company remains focused on expanding its market position in tactical communications and fixed wireless access while exploring strategic alternatives to bolster shareholder value.
In summary, Peraso, Inc.’s latest earnings call highlights a company at a crossroads, with impressive growth in its mmWave products and strategic advancements in defense applications. However, these positives are tempered by declining overall revenues and financial constraints, prompting the exploration of strategic alternatives to navigate these challenges and enhance shareholder value.