Peraso (PRSO) AI Stock Analysis

• Market Cap: $7.10M
• Dividend Yield: N/A
• Average Volume (3M): 6.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 1.80%
• EPS Growth: 89.30%
• Country: US
• Employees: 42
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.28
• Shares Outstanding: 6,171,040
• 10 Day Avg. Volume: 20,685,640
• 30 Day Avg. Volume: 6,953,461
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: -1.08
• 1Y Price Target: $3.00
• Price Target Upside: 163.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ―

Peraso, Inc.'s stock is rated moderately due to mixed signals. While there are positive developments in revenue growth and cost management, the company faces significant financial challenges, with persistent losses and negative cash flows. Technical indicators suggest short-term positive momentum, but valuation remains difficult due to ongoing losses.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product demand, particularly in mmWave technology, supporting long-term business expansion.

Improved Gross Margins

Improved gross margins reflect better cost management and product mix, enhancing profitability potential and financial health over the long term.

mmWave Technology Momentum

Growing demand for mmWave technology positions Peraso as a competitive player in the high-speed wireless market, driving future revenue and market share.

Negative Factors

Persistent Net Losses

Ongoing net losses indicate challenges in achieving profitability, which could hinder long-term financial stability and investor confidence.

Negative Cash Flow

Negative cash flow reflects operational inefficiencies, potentially limiting the company's ability to invest in growth opportunities and manage liabilities.

Declining Asset Base

A declining asset base may reduce financial flexibility and resilience, impacting the company's ability to sustain operations and invest in future growth.

Peraso Business Overview & Revenue Model

Company Description

Peraso, Inc. (PRSO) is a technology company that specializes in the development and commercialization of semiconductor solutions, primarily focusing on the millimeter-wave (mmWave) spectrum. The company provides cutting-edge products and services for various high-speed wireless communication applications, such as 5G networks, fixed wireless access, and wireless backhaul. Peraso's core offerings include integrated circuits (ICs) and modules that enable seamless, high-capacity data transmission, catering to both consumer and enterprise markets.

How the Company Makes Money

Peraso, Inc. generates revenue primarily through the sale of its semiconductor products, including mmWave ICs and modules. These products are sold to original equipment manufacturers (OEMs) and system integrators who incorporate them into their wireless communication systems. The company may also engage in licensing agreements, allowing other firms to utilize its proprietary technology for a fee. In addition, Peraso might receive revenue from research and development services provided to strategic partners and customers. Significant partnerships with industry leaders and participation in joint ventures can further bolster its earnings by expanding its market reach and integration in emerging technologies like 5G.

Peraso Financial Statement Overview

Summary

Peraso, Inc. faces significant financial difficulties with persistent losses and negative cash flows. Although there are improvements in cost management, overall profitability and cash flow generation remain concerning. The balance sheet shows moderate leverage but a declining asset base.

Income Statement

Peraso, Inc. shows significant challenges in profitability with consistent negative net income over the years. The gross profit margin improved significantly in TTM to 51.7% from 13.6% in 2023, indicating better cost management. However, the net profit margin remains negative at -73.6% due to high operating expenses. Revenue growth is minimal at 6.0% in TTM, which signals slow growth in sales.

Balance Sheet

The company has a reasonable debt-to-equity ratio of 0.09, reflecting manageable leverage. However, the equity ratio of 48.1% in TTM indicates moderate financial stability. ROE remains negative due to persistent net losses, which is a concern. The balance sheet shows a declining asset base, reducing from 2023 to TTM, affecting overall stability.

Cash Flow

Operating cash flow remains negative, suggesting continued cash burn. The free cash flow to net income ratio indicates significant cash outflow compared to income. However, financing activities have provided cash inflows, slightly easing liquidity constraints. Overall, cash flow performance is weak, reflecting ongoing operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.63M	14.57M	13.75M	14.87M	5.68M	9.09M
Gross Profit	8.91M	7.53M	1.87M	5.95M	2.41M	7.34M
EBITDA	-4.64M	-6.81M	-12.96M	-28.75M	-6.56M	-6.46M
Net Income	-9.17M	-10.73M	-16.80M	-32.40M	-10.91M	-10.23M
Balance Sheet
Total Assets	6.73M	7.21M	10.71M	22.49M	47.95M	9.99M
Cash, Cash Equivalents and Short-Term Investments	2.77M	3.34M	1.58M	2.91M	15.16M	1.71M
Total Debt	258.00K	321.00K	719.00K	1.16M	667.00K	5.66M
Total Liabilities	3.14M	3.74M	6.63M	7.23M	5.88M	13.91M
Stockholders Equity	3.59M	3.47M	4.08M	15.26M	42.07M	-3.92M
Cash Flow
Free Cash Flow	-3.00M	-4.58M	-4.78M	-17.03M	-12.25M	-10.28M
Operating Cash Flow	-3.00M	-4.58M	-4.69M	-16.02M	-12.02M	-10.24M
Investing Cash Flow	0.00	0.00	1.01M	10.04M	6.63M	-38.13K
Financing Cash Flow	3.33M	6.34M	3.44M	1.92M	9.57M	10.08M

Peraso Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRSO, the sentiment is Positive. The current price of 1.14 is above the 20-day moving average (MA) of 1.05, above the 50-day MA of 0.96, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRSO.

Peraso Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PXLW	55 Neutral	57.35M	-1.93	271.75%	―	-44.05%	-2.33%
GSIT	53 Neutral	106.47M	-6.76	-37.69%	―	6.14%	1.71%
PRSO	51 Neutral	$7.10M	―	-200.76%	―	1.80%	89.30%
LEDS	45 Neutral	17.43M	-30.72	-12.42%	―	485.62%	85.02%
GCTS	44 Neutral	91.05M	-2.44	20.87%	―	28.31%	-239.16%
SMTK	40 Underperform	6.59M	-0.29	-156.73%	―	125.58%	-0.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Peraso Corporate Events

Peraso Inc. Grants Stock Options to Key Executives

On February 11, 2025, Peraso Inc.’s board of directors’ compensation committee granted 100,000 stock options to key executives, including the CEO, CFO, and COO. These stock options are part of the company’s Amended and Restated 2019 Stock Incentive Plan, aimed at aligning executive interests with company performance, potentially impacting stakeholder confidence and executive retention.