Peraso's Q1 2025 Earnings Call: Unpacking Contradictions in Military Revenue, BEAD Funding, and Strategic Growth

Revenue timing from military applications, BEAD funding impact, military contract size and timeline, military and defense applications interest are the key contradictions discussed in Peraso's latest 2025Q1 earnings call.



Millimeter Wave Revenue Growth:
- Peraso Inc. reported millimeter wave product revenues of $1.5 million for the first quarter, up significantly from $0.2 million in the prior quarter and $0.3 million in the first quarter of 2024.
- This growth was primarily attributable to increased shipments of millimeter wave IC and module products.

Gross Margin Improvement:
- The company's GAAP gross margin increased to 69.3% in the first quarter, up from 56.3% in the prior quarter and 46.4% in the year-ago quarter.
- The improvement was primarily due to reduced amortization expense related to intangible assets fully amortized in 2024 and favorable revenue mix across shipments of millimeter wave products.

Fixed Wireless Access Expansion:
- Peraso received a $3.6 million purchase order for mmWave devices from a leading fixed wireless access and wireless networking system provider.
- This is part of an ongoing trend where fixed wireless access is becoming a large and sustained driver of future revenue growth due to increased awareness of mmWave technology and Peraso's market-leading products.

Defense and Military Applications:
- Peraso secured a strategic contract to deliver mission-critical wireless applications to global military and defense forces, opening a significant new revenue opportunity.
- The core value proposition for this segment is the stealthy nature of 60 GHz communications, which contributes to low probability of detection and strong immunity to jamming.

Innovation and Pipeline Expansion:
- Peraso's engagement pipeline grew by over 25% in the past year, with nearly 120 total engagements currently in progress.
- This expansion is driven by the company's continuous innovation efforts, such as software and hardware upgrades, and the growing market potential for mmWave technology in various industries.