Peraso Inc. at a Crossroads: Weighing the Mobix Acquisition Against Strategic Independence

Peraso Inc. (NASDAQ: PRSO) finds itself at a critical juncture. The company's Q1 2025 earnings revealed a promising trajectory in its core mmWave technology business, yet its financial resilience remains tested by cash flow constraints and lingering losses. Meanwhile, an unsolicited acquisition offer from Mobix Labs Inc. (NASDAQ: MOBX) has thrust strategic alternatives into the spotlight. Investors must now decide: is Peraso better off accepting the $1.20-per-share offer from Mobix, or pursuing its ambitious growth strategy independently?

Financial Resilience: Progress Amid Challenges

Peraso's recent financials paint a mixed picture of progress and vulnerability. Revenue for Q1 2025 rose 5.4% sequentially to $3.9 million, driven by a 750% surge in mmWave product sales to $1.5 million. This segment's growth underscores the potential of Peraso's core competency in 5G and fixed wireless access (FWA) solutions. Gross margins expanded to 69.3%, reflecting improved cost management and a shift toward higher-margin mmWave products.

However, Peraso remains unprofitable, with a Q1 net loss of $0.5 million—a 76.8% improvement over Q1 2024 but still a red ink mark. Cash reserves have dipped to $2.8 million from $3.3 million at year-end 2024, raising concerns about its cash runway. Analysts estimate the company's current free cash flow could deplete liquidity within a year unless it secures additional capital or achieves profitability.

Strategic Alternatives: The Mobix Offer vs. Independent Growth

In May 2025, Mobix Labs proposed acquiring Peraso for $1.20 per share in Mobix stock, valuing the deal at approximately $7.5 million. This represents a 19% premium over Peraso's closing price on the announcement date. Mobix, a leader in IoT and networking solutions, sees strategic value in Peraso's mmWave expertise, which could accelerate its entry into high-growth markets like defense and industrial IoT.

Peraso's board has engaged financial advisors to evaluate the offer and explore alternatives. Key considerations include:

1. Immediate Liquidity vs. Long-Term Risk: Accepting the offer would provide much-needed cash and eliminate execution risks tied to Peraso's ambitious plans, such as scaling defense contracts and BEAD-funded broadband projects. However, the offer's value hinges on Mobix's stock performance, which has fluctuated in 2025.

2. Growth Potential: Peraso's defense initiatives—including a $500M+ market opportunity in tactical communication systems—could yield outsized rewards if executed successfully. The company also aims to leverage its patented mmWave modules in BEAD-funded rural broadband projects, a market projected to grow rapidly.

3. Financial Health: Peraso's debt-free balance sheet and strong short-term liquidity (current ratio of 2.01) give it breathing room to pursue growth independently. However, its narrow cash runway demands swift progress on revenue diversification.

The Deal's Merits and Drawbacks

Case for Accepting the Offer:
- Mitigates Survival Risk: For a company with limited cash reserves and a history of losses, the offer reduces the threat of insolvency.
- Strategic Synergies: Combining Peraso's mmWave tech with Mobix's IoT platforms could create a formidable player in enterprise networking.
- Shareholder Liquidity: Investors, particularly those in a small-cap stock with low trading volume, gain an exit option at a premium.

Case for Rejecting the Offer:
- Undervalued Growth Assets: Peraso's defense and BEAD opportunities could command higher valuations if realized. The $1.20 offer represents just 1.2x trailing revenue, far below industry multiples for tech firms with similar growth profiles.
- Operational Autonomy: Remaining independent allows Peraso to capitalize on its unique position in niche markets, such as 60 GHz tactical systems, without Mobix's strategic priorities diluting focus.

Investment Considerations

• Risk Tolerance: Bulls on Peraso argue that its mmWave pipeline and Nasdaq compliance recovery justify a long-term hold. Bears counter that the stock's current valuation ($1.25 as of July 7) already discounts near-term risks, making the Mobix offer a reasonable floor.
• Execution Uncertainty: Peraso's Q2 revenue is projected to dip to $1.8–2.0 million due to declining legacy memory IC sales, testing its ability to sustain mmWave momentum. Investors should monitor Q2 results and defense contract progress closely.
• Mobix's Track Record: Mobix has faced scrutiny over its debt levels and execution on past acquisitions. A Peraso deal would add to its integration challenges.

Verdict

Peraso's financial resilience is fragile but improving. While the Mobix offer provides a safe harbor, its intrinsic value lies in its mmWave-driven growth story. Investors who believe in Peraso's ability to scale defense and BEAD projects should hold or accumulate shares, especially if the stock dips below $1.00—a level that could trigger renewed Nasdaq compliance scrutiny.

For the risk-averse, the Mobix deal offers a prudent exit at a modest premium. However, the broader market's appetite for high-risk, high-reward tech plays may push Peraso's shares higher if it delivers on its Q2 guidance and secures key contracts.

In conclusion, Peraso's path forward hinges on balancing immediate survival with long-term ambition. The board's decision will shape whether this mmWave innovator becomes a strategic asset for Mobix or a standalone disruptor in 5G's next frontier.