Peraso (PRSO) AI Stock Analysis

• Market Cap: $5.23M
• Dividend Yield: N/A
• Average Volume (3M): 136.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 1.80%
• EPS Growth: N/A
• Country: US
• Employees: 42
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): -0.28
• Shares Outstanding: 6,171,040
• 10 Day Avg. Volume: 79,294
• 30 Day Avg. Volume: 136,153
• 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: 0.94
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.55
• Enterprise Value/Ebitda: -1.06
• 1Y Price Target: $3.00
• Price Target Upside: 248.84% 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

Customer Engagement

PRSO continues to build momentum for its mmWave solutions, adding multiple new customer engagements and expanding into adjacent opportunities.

Revenue Growth

Revenue was exclusively driven by mmWave product revenue, which was up 45% QoQ and 200% YoY.

Technological Validation

Initial shipments of its next-generation 60 GHz platform began shipping to a major military defense contractor, representing a meaningful validation of the firm's technology.

Negative Factors

Balance Sheet Concerns

The balance sheet remains the only concern, but there is sufficient cash to bridge to the fourth quarter.

Inventory Challenges

The pipeline is strengthening while inventory digestion headwinds dissipate, leading to optimism about nearing sustainability.

Market Demand Fluctuations

The company's largest customer has begun placing new orders following multiple quarters of digestion, indicating improving demand trends.

Peraso Business Overview & Revenue Model

Company Description

Peraso Inc. operates as a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. It focuses on development of millimeter wavelength (mmWave) for the 60 gigahertz, spectrum, and for 5G cellular networks. The company's products include mmWave ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and programmable hyperspeed engine to allow user-defined functions or algorithms. In addition, the company offers quad partition rate which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products enable various applications, such as 5G with low latency and high reliability, multi-gigabit, mmWave links over 25 kilometers, as well as consumer applications, such as wireless video streaming, and untethered augmented reality and virtual reality. The company also licenses intellectual property, as well as offers non-recurring engineering services. It markets its products through direct sales personnel, as well as sells representatives and distributors. The company was formerly knowns as MoSys, Inc. and changed its name to Peraso Inc. in December 2021. Peraso Inc. was incorporated in 1991 and is based in San Jose, California.

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: Neutral
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.86 is above the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.97, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRSO.

Peraso Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
GSIT	51 Neutral	$93.09M	―	-36.97%	―	6.14%	1.71%
PRSO	51 Neutral	$5.23M	―	-200.76%	―	1.80%	―
PXLW	45 Neutral	$42.31M	―	-2911.20%	―	-44.05%	-2.33%
LEDS	44 Neutral	$15.62M	―	-14.79%	―	485.62%	85.02%
GCTS	43 Neutral	$71.50M	―	17.45%	―	28.31%	-239.16%
SMTK	40 Underperform	$2.95M	―	-451.42%	―	125.58%	-0.65%

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.