Peraso 2025 Q1 Earnings Beats Expectations with 90.7% Loss Reduction

Peraso (PRSO) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company outperformed expected revenue and earnings per share, reporting a $3.87 million revenue, slightly above the consensus estimate of $3.81 million, and a loss of $0.08 per share, significantly better than the anticipated $0.40 loss per share. Peraso's guidance for the remainder of 2025 remains positive, with expectations of full-year revenue at approximately $14.82 million, signaling upward momentum in revenue for 2026 projected at $20.32 million. The company aims to maintain a focus on long-term growth, ensuring robust market positioning while effectively managing costs.

Revenue
Peraso reported a 37.4% increase in total revenue, achieving $3.87 million for Q1 2025 compared to $2.82 million in Q1 2024. Product sales were the major contributor, generating $3.80 million, while royalty and other revenue added an additional $69,000, resulting in the total net revenue of $3.87 million.

Earnings/Net Income
Peraso demonstrated improvement in its financial performance by narrowing its losses to $0.10 per share in Q1 2025, a notable 90.7% improvement from the previous year's loss of $1.07 per share. The company's net loss was reduced to $471,000, marking a 76.8% decrease from the $2.03 million net loss reported in Q1 2024. This indicates a positive trend in earnings.

Price Action
The stock price of Peraso has tumbled 11.93% during the latest trading day, has surged 21.52% during the most recent full trading week, and has surged 56.10% month-to-date.

Post-Earnings Price Action Review
Peraso's stock price strategy, focusing on buying when revenues miss expectations and holding for 30 days, has shown promising results. On May 12, 2025, the stock price was $0.93. Over the next 30 days, the stock rose to a high of $1.33, marking a 42.9% gain, outperforming the S&P 500's decline of -3.8% since the beginning of the year. The strategy benefited from Peraso’s strong revenue beat and improved earnings, resulting in significant short-term gains. However, long-term performance was more modest, with the stock peaking at $1.71 before trending down to $1.33 by August 12, 2025, showing a sustained value appreciation of 43.2% from the initial investment point. Investors should consider Peraso’s ongoing product innovations and market positioning, which could influence future performance.

CEO Commentary
Ronald Glibbery, CEO of Peraso Inc., highlighted the company's solid performance in Q1 2025 with revenues reaching $3.87 million, driven by increased demand for our mmWave technology solutions. He acknowledged challenges in the market but emphasized the importance of strategic investments in product development and market expansion to capitalize on growth opportunities. Glibbery expressed optimism about the future, stating that the company is well-positioned to enhance its competitive advantage and achieve operational efficiencies as it navigates through the evolving landscape of the semiconductor industry.

Guidance
For the remainder of 2025, Peraso Inc. expects to generate full-year revenue of approximately $14.82 million, with an adjusted EPS forecast of -$2.16. The company aims to improve its financial performance and maintain a focus on long-term growth, anticipating continued upward momentum in revenue for 2026, projected at $20.32 million. Management is committed to executing its strategic priorities, ensuring robust market positioning while effectively managing costs.

Additional News
Peraso Inc. announced the addition of the PRM2141X-D module to its PERSPECTUS series, enhancing its product lineup with a dual-polarized antenna array designed for high-mobility network deployments. The module operates in the 57-71 GHz band, offering dynamic directional beamforming and data rates up to 3 Gbps. Initial production is scheduled to begin in June 2025. Additionally, Peraso secured a strategic contract with a defense contractor to provide 60GHz mmWave communications technology for military operations, with shipments expected to start in Q2 2025. The company also received a Notice of Allowance for a new U.S. patent covering seamless WLAN access point recovery technology, offering IP protection until 2042.