8-K: Peraso Reports Q4 & Full Year 2025 Results, mmWave Revenue Soars

Peraso Inc. announced its fourth quarter and full year 2025 financial results, highlighting a six-fold year-over-year increase in full-year mmWave product revenue.

Summary

• Total net revenue for the fourth quarter of 2025 was $2.9 million, a decrease from $3.2 million in the prior quarter and $3.7 million in the same quarter a year ago.
• Total net revenue for the full year 2025 was $12.2 million, down from $14.6 million in 2024.
• Product revenue for the full year 2025 was $11.8 million, compared with $14.2 million in 2024, primarily due to decreased shipments of memory IC products, partially offset by increased shipments of mmWave products.
• Full year mmWave product revenue increased six-fold over 2024.
• GAAP net loss for the fourth quarter of 2025 was $1.2 million, or ($0.13) per share, an improvement from a net loss of $1.6 million, or ($0.37) per share, in the fourth quarter of 2024.
• GAAP net loss for the full year 2025 was $4.8 million, or ($0.67) per share, significantly improved from a net loss of $10.7 million, or ($3.57) per share, for 2024.
• Adjusted EBITDA for the fourth quarter of 2025 was negative $1.1 million, compared with negative $0.4 million in the same quarter last year.
• Adjusted EBITDA for the full year 2025 was negative $4.0 million, an improvement from negative $4.5 million for 2024.
• GAAP gross margin for the full year 2025 was 58.0%, up from 51.7% for 2024, reflecting increased mmWave margins and reduced amortization expense.
• Total GAAP operating expenses for the full year 2025 were $11.8 million, a substantial decrease from $20.0 million for 2024, driven by cost reductions and ongoing cost containment initiatives.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report. While overall revenue declined due to legacy products, the strong growth in the strategic mmWave segment and significant improvements in profitability metrics (net loss, Adjusted EBITDA) indicate a positive shift in business focus and operational efficiency. However, the continued negative Adjusted EBITDA and cash position, along with the explicit 'going concern' risk, temper enthusiasm.

Positives

• Full year mmWave product revenue increased six-fold over 2024, demonstrating strong growth in a strategic segment.
• GAAP net loss for the full year 2025 significantly improved to $4.8 million from $10.7 million in 2024.
• Adjusted EBITDA for the full year 2025 improved to negative $4.0 million from negative $4.5 million in 2024.
• Secured multiple design wins with new and existing customers, expanding the adoption of 60 GHz mmWave technology.
• Strengthened position as a dominant supplier of 60 GHz semiconductors with MikroTik's launch of its next-generation wireless device.
• Peraso's mmWave technology was selected by InTACT, an Israeli defense customer, for secure data transmission in next-generation drone Identification Friend or Foe systems.
• Growing demand for extremely high data rate applications, particularly in congested environments where existing wireless technologies can fail.
• Collaboration with Virewirx for 60 GHz multi-gigabit connectivity solutions for robotaxi applications requiring 1 terabit per hour download rates.
• Full year GAAP gross margin increased to 58.0% in 2025 from 51.7% in 2024.
• Significant reduction in total GAAP operating expenses for full year 2025 to $11.8 million from $20.0 million in 2024, due to cost reductions and containment initiatives.

Negatives

• Total net revenue for the fourth quarter of 2025 decreased to $2.9 million from $3.7 million in the same quarter a year ago.
• Total net revenue for the full year 2025 decreased to $12.2 million from $14.6 million in 2024.
• The decrease in product revenue was primarily attributable to lower shipments of memory IC products.
• GAAP gross margin for the fourth quarter of 2025 decreased to 52.2% from 56.3% in the same quarter a year ago, primarily due to the reduction in shipments of memory IC products.
• Adjusted EBITDA for the fourth quarter of 2025 was negative $1.1 million, a worsening from negative $0.4 million in the same quarter last year.
• Non-GAAP gross margin for 2025 decreased to 58.0% from 67.2% for 2024, reflecting the reduction in memory IC shipments.

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 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 the Company's business operations.
• The timing of customer orders and product shipments.
• Risks related to pandemics, wars, and terrorist activities that may have an adverse impact on the Company's business and financial results and result in component shortages and increased lead times.
• Inflationary and tariff risks.
• Customer concentrations and length of billing and collection cycles, which may be impacted in the event of a global recession or economic downturn.
• Lengthy sales cycle.
• Ability to enhance the Company's existing proprietary technologies and develop new technologies.
• Achieving additional design wins for the Company's products through the acceptance and adoption of its technology by potential customers and their suppliers.
• Difficulties and delays in the production, testing, and marketing of the Company's products.
• Reliance on manufacturing partners to assist successfully with the fabrication of and production of the Company's products.
• Impacts of the end-of-life of the Company's memory products.
• Availability of quantities of the Company's products supplied by its manufacturing partners at a competitive cost.
• Level of intellectual property protection provided by the Company's patents, the expenses and other consequences of litigation, including intellectual property infringement litigation.
• Vigor and growth of markets served by the Company's customers and its operations.

Future Outlook

The company is encouraged by the growing market awareness of 60 GHz wireless technology and its ability to efficiently deliver high-bandwidth, secure connectivity in congested operating environments. The focus for the remainder of 2026 remains on broadening the customer base and pipeline of design wins within both fixed wireless access and tactical communications, while also selectively capitalizing on high-growth opportunities for mmWave-based solutions in adjacent markets.

Management Comments

• "We closed out 2025 with a solid fourth quarter that was in line with our guidance range and supported by continued year-over-year growth in mmWave product shipments." Ron Glibbery, CEO.
• "For the full year, revenue from our mmWave products grew six-fold over 2024." Ron Glibbery, CEO.
• "Together with healthy gross margins and disciplined expense management, this contributed meaningful improvement to our year-over-year bottom-line results." Ron Glibbery, CEO.
• "Over the past several months, we have demonstrated steady progress on expanding the adoption of our 60 GHz mmWave technology, as we have secured multiple design wins with new and existing customers." Ron Glibbery, CEO.
• "Notably, we are seeing growing demand for extremely high data rate applications, particularly in congested environments where existing wireless technologies such as Wi-Fi can fail due to interference issues." Ron Glibbery, CEO.

Industry Context

StockSavvy.ai notes that Peraso's strategic pivot and strong growth in 60 GHz mmWave product revenue align with the increasing industry demand for high-bandwidth, low-latency, and secure wireless connectivity. As conventional Wi-Fi and 5G solutions face saturation in dense and specialized environments, Peraso's technology is well-positioned to capture market share in niche but high-growth areas like fixed wireless access, tactical communications, and emerging applications such as robotaxis, reflecting a broader trend towards specialized, high-performance wireless solutions.

Comparison to Industry Standards

• Peraso is improving its position as the dominant supplier of 60 GHz semiconductors, evidenced by MikroTik's launch of its next-generation 60 GHz wireless device, indicating strong competitive standing in this specific segment.
• The collaboration with Virewirx for robotaxi applications requiring download rates in the order of 1 terabit per hour highlights a critical need where 60 GHz mmWave technology offers a superior alternative to conventional Wi-Fi and 5G, which can become oversaturated at such extreme data rates.
• The selection by InTACT, an existing Israeli defense customer, for secure data transmission in next-generation drone Identification Friend or Foe systems, demonstrates the technology's capability to meet stringent requirements for reliability and security in mission-critical tactical communications, a segment with high barriers to entry.

Legal Proceedings

• The company lists 'the expenses and other consequences of litigation, including intellectual property infringement litigation, to which the Company may be or may become a party from time to time' as a risk factor.

Stakeholder Impact

• Shareholders: Potential for long-term value creation through strong mmWave growth and improved profitability, but ongoing risks related to capital needs and Nasdaq listing requirements persist.
• Employees: Past layoffs (November 2023) indicate cost-cutting measures, but the current focus on high-growth mmWave areas could stabilize and potentially expand employment opportunities.
• Customers: Continued innovation and design wins in mmWave technology offer advanced, high-bandwidth, and secure connectivity solutions for various applications.
• Suppliers: Reliance on manufacturing partners is noted as a risk, implying potential impact from supply chain disruptions or cost fluctuations.
• Creditors: Improved financial performance, particularly the reduced net losses and Adjusted EBITDA, could enhance the company's creditworthiness, though the 'going concern' risk remains a consideration.

Next Steps

• Broadening the customer base and pipeline of design wins within fixed wireless access and tactical communications.
• Selectively capitalizing on high-growth opportunities for Peraso's mmWave-based solutions in adjacent markets.
• Hosting a conference call and webcast on March 16, 2026, at 1:30 p.m. Pacific Time to discuss results.

Key Dates

Recommendation

While Peraso demonstrated impressive growth in its core mmWave product segment and significantly reduced its net losses and negative Adjusted EBITDA year-over-year, the overall revenue decline and continued negative Adjusted EBITDA suggest the company is still in a transitional phase. The explicit 'going concern' risk and the need for additional capital warrant caution. The strategic direction is positive, but the financial stability needs further improvement before a 'buy' recommendation, while the progress made prevents a 'sell'.

Keywords

mmWave, wireless technology, 60 GHz, semiconductors, fixed wireless access, tactical communications, robotaxi, financial results, Q4 2025, full year 2025, Peraso, PRSO, net revenue, net loss, EBITDA, design wins