PRSO — Peraso Inc.

Summary of Peraso Inc. (PRSO) Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Net Revenue: $1 million, down from $2.9 million in Q4 2025 and $3.9 million in Q1 2025.
• Product Revenue: $0.7 million, a decline from $2.8 million in Q4 2025 and $3.8 million in Q1 2025.
• mmWave Product Revenue: $0.6 million, compared to $2.4 million in Q4 2025 and $1.5 million in Q1 2025.
• Gross Margin: 61.5%, up from 52.2% in Q4 2025 but down from 69.3% in Q1 2025.
• GAAP Net Loss: $2.5 million, or a loss of $0.22 per share, compared to a loss of $1.2 million (Q4 2025) and $0.5 million (Q1 2025).
• Non-GAAP Net Loss: $2.3 million, or a loss of $0.20 per share.
• Cash Position: $2.7 million as of March 31, 2026, down from $2.9 million at the end of 2025.

2. Strategic Updates and Business Highlights

• Supply Chain Improvements: The company resolved supply chain issues that delayed a significant order shipment, which affected Q1 revenue. Steps have been taken to diversify supplier reliance.
• Market Engagement: Continued active engagement in target markets, particularly in tactical communications and Edge AI applications.
• New Customer Wins: Notable collaboration with MikroTik for its 60 GHz nRay product and ongoing work with defense contractor InTACT for tactical communication solutions.
• Product Development: Focus on optimizing technology for military applications and Edge AI, with ongoing evaluations and discussions with prospective customers.

3. Forward Guidance and Outlook

• Q2 Revenue Expectation: Projected total net revenue of approximately $1.2 million, indicating slight improvement but still below desired levels.
• Long-term Growth Potential: Optimism about future growth in tactical communications and adjacent markets, despite current visibility challenges.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: Significant year-over-year and sequential declines in revenue and product sales, particularly in mmWave products.
• Market Dynamics: Ongoing challenges due to memory chip shortages affecting customer demand and order patterns.
• Operational Losses: Continued net losses and cash burn, raising concerns about the company's financial health and need for additional capital.
• Strategic Alternatives: The company is exploring strategic options, including potential mergers or asset sales, indicating possible financial distress.

5. Notable Q&A Insights

• Supply Chain Issues: The CEO confirmed that the supply chain challenges affected a broad product line, but measures have been taken to prevent future occurrences.
• Customer Order Visibility: Visibility challenges are primarily due to memory shortages and inventory adjustments by customers, with expectations for improvement as these issues stabilize.
• Defense Orders: Anticipated volume orders from military applications are expected to begin in Q3 and Q4 2026, with a focus on secure, non-jammable communications.
• Gross Margin Projections: Margins are expected to decline in Q2 as product revenue increases, shifting the revenue mix back towards traditional product sales.

This summary encapsulates the key aspects of Peraso's Q1 2026 earnings call, highlighting both the challenges faced and the strategic initiatives in place to drive future growth.