8-K: Peraso Reports Q1 2026 Results Amidst Supply Chain and Order Fluctuations

Peraso Inc. announced its first quarter 2026 financial results, highlighting a significant decrease in revenue due to a delayed customer order and irregular fixed wireless access customer patterns, while also noting progress in tactical communications.

Summary

• Peraso Inc. reported first quarter 2026 net revenue of $1.0 million, a substantial decrease from $2.9 million in the prior quarter and $3.9 million in the same quarter last year.
• Product revenue also declined to $0.7 million in Q1 2026, down from $2.8 million sequentially and $3.8 million year-over-year, attributed to lower shipments of memory IC and mmWave products.
• Gross margin improved to 61.5% in Q1 2026 from 52.2% in the prior quarter, but decreased from 69.3% in Q1 2025.
• Total operating expenses on a GAAP basis were $3.1 million, slightly down from $3.2 million in Q1 2025.
• GAAP net loss widened to $2.5 million ($0.22 per share) in Q1 2026, compared to a net loss of $0.5 million ($0.08 per share) in Q1 2025.
• Non-GAAP net loss was $2.3 million ($0.20 per share) in Q1 2026, an increase from $0.4 million ($0.07 per share) in Q1 2025.
• Adjusted EBITDA was negative $2.3 million in Q1 2026, a deterioration from negative $0.3 million in the same quarter last year.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment score due to the significant decline in revenue, widening net losses, and worsening Adjusted EBITDA, despite some positive developments in specific market segments and efforts to mitigate supply chain risks.

Positives

• Gross margin increased sequentially to 61.5% in Q1 2026, driven by a higher mix of revenue from non-recurring engineering projects.
• Peraso has begun implementing measures to mitigate reliance on single suppliers following a recent supply chain disruption.
• The company is seeing growing interest in its 60 GHz mmWave technology within the tactical communications market, evidenced by initial production shipments for an Israeli defense customer's drone Identification Friend or Foe system.
• Peraso remains optimistic about expanding opportunities for 60 GHz wireless technology in markets requiring high-bandwidth and secure connectivity beyond fixed wireless access.

Negatives

• Total net revenue for Q1 2026 was $1.0 million, a significant decrease from $2.9 million in the prior quarter and $3.9 million in the same quarter last year.
• Product revenue decreased significantly year-over-year and sequentially due to lower shipments of memory IC and mmWave products.
• Gross margin decreased year-over-year to 61.5% from 69.3% in Q1 2025.
• GAAP net loss increased to $2.5 million ($0.22 per share) in Q1 2026 from $0.5 million ($0.08 per share) in Q1 2025.
• Non-GAAP net loss increased to $2.3 million ($0.20 per share) in Q1 2026 from $0.4 million ($0.07 per share) in Q1 2025.
• Adjusted EBITDA worsened to negative $2.3 million in Q1 2026 from negative $0.3 million in Q1 2025.

Risks

• The company's ability to continue as a going concern.
• The company's ability to raise additional capital to fund its operations.
• The company's ability to maintain compliance with Nasdaq Stock Market listing requirements.
• Risks related to the process of reviewing and exploring potential strategic alternatives.
• The timing of customer orders and product shipments, which may be impacted by supply chain disruptions.
• The company's ability to convert customer engagements into design wins and purchase orders.
• Risks related to pandemics, wars, and terrorist activities impacting business and financial results.
• Risks related to tariffs, trade restrictions, inflation, and government actions affecting the supply chain and customer demand.

Future Outlook

The company's primary focus over the coming quarters is to secure new purchase orders and increase the conversion rate of existing customer engagements into design wins for potential future top-line growth. Management remains optimistic about expanding opportunities for 60 GHz wireless technology in various markets.

Management Comments

• "Our first quarter results reflect the anticipated push-out on the fulfillment of a significant customer order due to the delayed receipt of key materials from one of our suppliers," commented Ron Glibbery, CEO of Peraso.
• "We shipped this order in the current quarter, and we have since begun implementing measures to mitigate our reliance on any one supplier."
• "Despite these near-term challenges, particularly within the fixed wireless access market, we have remained closely engaged on expanded opportunities for our 60 GHz mmWave technology across a number of new and existing customers."
• "Within the tactical communications market, we are seeing growing interest in Peraso's mmWave wireless technology following the announcement of our lead Israeli defense customer, InTACT."
• "We remain optimistic about the breadth of our customer engagements and continue to believe there are expanding opportunities for 60 GHz wireless technology in markets that require high-bandwidth and secure connectivity beyond our core fixed wireless access applications."
• "Our primary focus over the coming quarters is to secure new purchase orders, as well as increase the conversion rate of existing customer engagements into design wins for potential future top-line growth."

Industry Context

StockSavvy.ai notes that Peraso's Q1 2026 results reflect challenges common in the semiconductor and wireless technology sectors, including supply chain vulnerabilities and fluctuating customer order patterns. The company's strategic pivot towards tactical communications and defense applications, highlighted by the InTACT customer engagement, aligns with broader industry trends of seeking high-bandwidth, secure connectivity solutions in specialized markets.

Stakeholder Impact

• Shareholders: Potential negative impact due to decreased revenue, increased net loss, and worsening Adjusted EBITDA, which could affect stock valuation.
• Employees: Potential impact on morale and job security given the financial performance and operational challenges.
• Suppliers: The company is actively seeking to mitigate reliance on single suppliers, indicating potential shifts in supplier relationships.
• Customers: The delay in fulfilling a significant order could impact customer satisfaction, though the company is addressing it and has begun implementing mitigation measures.

Next Steps

• Implement measures to mitigate reliance on any one supplier.
• Secure new purchase orders.
• Increase the conversion rate of existing customer engagements into design wins.
• Continue to engage on expanded opportunities for 60 GHz mmWave technology.
• Deliver initial production shipments in support of InTACT's next-generation drone Identification Friend or Foe system.

Key Dates

Recommendation

While the Q1 2026 results are significantly weaker than the prior year, with declining revenues and widening losses, the company is actively addressing supply chain issues and has secured a notable contract in the tactical communications market. The future outlook hinges on securing new orders and converting existing engagements into design wins. Given the mixed signals and the company's efforts to navigate near-term challenges, a 'hold' recommendation is appropriate, pending further clarity on order book development and operational improvements.

Keywords

Peraso Inc., 8-K, Q1 2026 Results, mmWave, Wireless Technology, Financial Results, Revenue, Net Loss