Peraso Inc. Q3 FY2025 earnings call

• Notable strong third quarter with over 45% sequential revenue growth driven by millimeter wave products.
• Gross margin in mid-fifties achieved.
• Fixed wireless access market showing recovery with millimeter wave solutions gaining traction, including wins with Tachyon Networks, Wheeling Communications, and a new OEM customer.
• Expansion into tactical communications with successful field trials of 60 gigahertz wireless solutions for defense applications.
• Adjacent markets like edge AI being explored with 60 gigahertz millimeter wave technology suitable for high-bandwidth video and real-time applications.
• Engagements pipeline narrowed to qualified opportunities with nearly doubled customer SKUs in production and double-digit new customer devices in preproduction.

Total net revenue for the third quarter was $3.2 million. Product revenue from millimeter wave products was $3 million in 2025, compared with $2.2 million in the prior quarter and $100,000 in 2024. Consolidated GAAP gross margin increased to 56.2% in the third quarter. Non-GAAP gross margin was also 56.2% in the third quarter. GAAP operating expenses were $3 million in 2025, and non-GAAP operating expenses were $2.9 million in the third quarter.

• Company expects total net revenue for 2025 to be in the range of $2.8 million to $3.1 million.
• Anticipates continued year-over-year growth from millimeter wave products in the fourth quarter and into 2026.

• Actual results may differ materially from forward-looking statements including unexpected changes in business.
• Risk factors and additional risk factors set forth in public filings with the SEC.

Q: Can you give more color on the new OEM customer announced?

A: The OEM is sensitive to confidentiality, but it's a validation of the technology with other competitors being beaten out due to better performance.

Q: What about timing of customer production schedules?

A: Varies by market, 9-12 months for fixed wireless, 12-15 months for military, 12-15 months for edge AI.

Q: Thoughts on balance sheet with inventory and AR up?

A: AR is timing of sales, inventory used for certain products and building more to meet Q1 and Q2 demand.

Q: How to think about gross margin going forward?

A: Targeting around 50% range, benefited from product mix in Q3.

Q: Details on tactical defense customer trials?

A: Trials ongoing, expecting real production in 2026 with a 5-6 quarter lag from engagement.

Q: Adjacent market opportunities and customization?

A: Two buckets, existing chips with some NRE and customization of chips for bigger deals.

Q: Q4 guidance and memory revenue?

A: Still has memory shipments in Q4, memory benefit contributes to gross margin.