8-K: Peraso Q3 2025 Revenue Jumps 45%, mmWave Sales Hit Record

Peraso Inc. reported a strong third quarter 2025 with total net revenue increasing over 45% sequentially, driven by record mmWave product sales and improved gross margins.

Summary

• Total net revenue for Q3 2025 was $3.2 million, representing a 45.5% sequential increase from $2.2 million in Q2 2025.
• mmWave product revenue achieved a quarterly record, increasing 35% sequentially.
• GAAP gross margin improved to 56.2% in Q3 2025, up from 48.3% in Q2 2025 and 47.0% in Q3 2024.
• GAAP net loss narrowed to $1.2 million, or ($0.17) per share, compared to a net loss of $1.8 million, or ($0.31) per share, in the prior quarter.
• Adjusted EBITDA improved to negative $1.0 million from negative $1.6 million in the prior quarter.
• Secured multiple design wins, including a collaboration with WeLink to accelerate high-speed broadband deployment and an initial $0.9 million production volume order from a new OEM customer for fixed wireless access equipment.
• Completed initial field trials with a lead customer in the tactical communications market for a next-generation, mission-critical defense application.

Sentiment

Score: 7

Explanation: The company demonstrated strong sequential growth in revenue and gross margin, driven by record mmWave product sales and new design wins. Net loss and Adjusted EBITDA also improved sequentially. However, revenue is down year-over-year, and the Q4 outlook suggests a sequential decline. The explicit mention of "ability to continue as a going concern" and "ability to raise additional capital" as risks tempers the overall positive sequential performance.

Positives

• Total net revenue increased by over 45% sequentially to $3.2 million in Q3 2025.
• mmWave product revenue reached a new quarterly record, growing 35% sequentially.
• GAAP gross margin significantly improved to 56.2% in Q3 2025, driven by a favorable revenue mix of mmWave products and shipments of inventory written down in prior periods.
• GAAP net loss narrowed to $1.2 million ($0.17 per share) from $1.8 million ($0.31 per share) in the previous quarter.
• Adjusted EBITDA improved to negative $1.0 million from negative $1.6 million in the prior quarter.
• Secured multiple new design wins with both existing and new customers.
• Announced a collaboration with WeLink to deploy high-speed broadband across dense urban areas using Peraso's 60 GHz technology.
• Received an initial production volume order valued at $0.9 million from a new OEM customer for the fixed wireless access equipment market.
• Completed initial field trials with a lead customer in the tactical communications market for a next-generation, mission-critical defense application.

Negatives

• Total net revenue of $3.2 million in Q3 2025 was lower than $3.8 million in Q3 2024, representing a 15.8% year-over-year decrease.
• Product revenue of $3.1 million in Q3 2025 was lower than $3.8 million in Q3 2024, representing an 18.4% year-over-year decrease.
• Non-GAAP gross margin of 56.2% in Q3 2025 was lower than 61.7% in Q3 2024.
• Adjusted EBITDA remained negative at $1.0 million, and was worse than the negative $0.8 million reported in Q3 2024.
• The company continues to operate at a net loss, both on a GAAP and non-GAAP basis.
• The business outlook for Q4 2025 projects total net revenue between $2.8 million and $3.1 million, which is a sequential decrease from Q3 2025 revenue of $3.2 million.

Risks

• Ability to continue as a going concern.
• Ability to raise additional capital to fund operations.
• Ability to maintain compliance with the continued listing requirements and standards of the Nasdaq Stock Market.
• Risks related to the process of reviewing and exploring potential strategic alternatives, which may be time-consuming, distracting, and disruptive to business operations.
• Uncertainty regarding annual expense savings expected from cost reduction initiatives.
• Variability in the timing of customer orders and product shipments.
• Potential adverse impacts on business and financial results from pandemics, wars, and terrorist activities, leading to component shortages and increased lead times.
• Exposure to inflationary and tariff risks.
• Risks related to customer concentrations and the length of billing and collection cycles, which may be impacted in the event of a global recession or economic downturn.
• Lengthy sales cycles for products.
• Challenges in enhancing existing proprietary technologies and developing new technologies.
• Difficulties in achieving additional design wins for products through the acceptance and adoption of technology by potential customers and their suppliers.
• Potential difficulties and delays in the production, testing, and marketing of products.
• Reliance on manufacturing partners to assist successfully with the fabrication and production of products.
• Impacts of the end-of-life of memory products.
• Availability of quantities of products supplied by manufacturing partners at a competitive cost.
• Level of intellectual property protection provided by patents, and the expenses and other consequences of litigation, including intellectual property infringement litigation.
• Vigor and growth of markets served by customers and operations.

Future Outlook

The company anticipates total net revenue for the fourth quarter of 2025 to be in the range of $2.8 million to $3.1 million. Management's go-forward focus remains on expanding the customer base and served markets for its 60 GHz wireless solutions, converting existing customer engagements into additional design-wins across mmWave fixed wireless access and new market applications.

Management Comments

• "We had a notably strong third quarter, with total revenue increasing more than 45% sequentially driven by record quarterly revenue from our mmWave products." Ron Glibbery, CEO.
• "Complementing our top-line growth in the quarter, we delivered solid gross margin, while prudently managing expenses, contributing to improved bottom-line results." Ron Glibbery, CEO.
• "Our go-forward focus remains on further expanding our customer base and served markets that can benefit from the high-bandwidth, secure and power-efficient connectivity offered by Peraso’s 60 GHz wireless solutions." Ron Glibbery, CEO.
• "This includes continuing to convert our pipeline of existing customer engagements into additional design-wins, spanning mmWave fixed wireless access and adjacent new market applications for our 60 GHz solutions." Ron Glibbery, CEO.

Industry Context

Peraso operates in the high-performance 60 GHz unlicensed and 5G mmWave wireless technology sector, a rapidly evolving market driven by increasing demand for high-speed, low-latency connectivity. The company's focus on fixed wireless access, immersive video, and factory automation aligns with broader industry trends towards enhanced wireless infrastructure and specialized industrial applications. The collaboration with WeLink for broadband deployment highlights the growing adoption of mmWave technology for last-mile connectivity solutions, competing with traditional fiber and other wireless broadband providers. The $0.9 million OEM order and tactical communications field trials indicate diversification into critical infrastructure and defense, areas where secure and high-bandwidth wireless solutions are increasingly vital.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to global benchmarks for a detailed assessment against industry standards.

Stakeholder Impact

• Shareholders: Potential positive impact from sequential revenue growth, improved gross margins, and narrowing losses, which could lead to increased shareholder value. However, the year-over-year decline in revenue, continued net losses, and risks related to going concern and capital raises present ongoing concerns.
• Customers: Positive impact from new design wins, collaboration with WeLink for broadband deployment, and initial production orders, indicating continued product development and market penetration.
• Employees: The filing mentions past employee lay-offs (November 2023) and terminations (H1 2024) with severance paid in Q3 2025, indicating past workforce reductions. No new changes mentioned.
• Suppliers/Manufacturing Partners: Continued reliance on manufacturing partners is noted, suggesting ongoing business relationships.

Next Steps

• Expand customer base and served markets for 60 GHz wireless solutions.
• Convert pipeline of existing customer engagements into additional design-wins.
• Focus on mmWave fixed wireless access and adjacent new market applications for 60 GHz solutions.
• Host an earnings conference call and webcast on November 10, 2025, at 1:30 p.m. Pacific Time.

Key Dates

Recommendation

While Peraso demonstrated strong sequential growth in Q3 2025, with record mmWave revenue and improved profitability metrics, the year-over-year revenue decline and continued net losses are concerning. The Q4 revenue guidance also indicates a sequential slowdown. The explicit mention of 'ability to continue as a going concern' and 'ability to raise additional capital' as key risks suggests underlying financial fragility. The positive momentum from new design wins and strategic collaborations is encouraging, but the company needs to demonstrate sustained profitability and address its capital needs before a more bullish stance can be taken. For now, a 'hold' recommendation is appropriate, awaiting clearer signs of consistent financial health and risk mitigation.

Keywords

mmWave, wireless technology, 60 GHz, fixed wireless access, chipsets, antenna modules, Peraso, PRSO, Q3 2025 earnings, financial results, broadband, tactical communications, semiconductor