Peraso Inc. Q4 FY2025 earnings call

• Closed out 2025 with a solid fourth quarter in line with guidance range, with millimeter wave product shipments growing year-over-year. Full year 2025 millimeter wave revenue grew approximately sixfold. - Fixed wireless access is the largest end market, with broad recovery in customer demand and order trends in 2025, including traction for DUNE platform and millimeter wave modules. Secured customer wins like Tachyon Networks and WeLink. - In tactical communications, transitioned a military defense application from an emerging opportunity to a new market vertical. Achieved milestones like contract with defense contractor, initial production shipments, and successful field trials. Recently named Intact as lead defense contractor and announced its selection of Perasso's technology for drone identification system. - Adjacent markets offer opportunities, such as solving connectivity challenges in edge AI applications. Collaborated with Vireworks for Robotaxi fleet vehicles, addressing data transfer bottlenecks.

For the fourth quarter of 2025, total net revenue was $2.9 million, product revenue was $2.8 million, and millimeter wave product revenues were $2.4 million. Full year 2025 net revenue was $12.2 million, product revenue was $11.8 million, and millimeter wave product sales were $9.1 million. Gap gross margin in Q4 2025 was 52.2%, full year 2025 gap gross margin was 58%. Non-gap gross margin in Q4 2025 was 52.2%, full year 2025 non-GAAP gross margin was 58%. Gap operating expenses in Q4 2025 were $2.8 million, full year 2025 gap operating expenses were $11.8 million. Non-GAAP operating expenses in Q4 2025 were $2.7 million, full year 2025 non-GAAP operating expenses were $11.3 million. Gap net loss in Q4 2025 was $1.2 million, full year 2025 gap net loss was $4.8 million. Non-GAAP net loss in Q4 2025 was $1.2 million, full year 2025 non-GAAP net loss was $4.3 million. Adjusted EBITDA in Q4 2025 was negative $1.1 million, full year 2025 adjusted EBITDA was negative $4 million

• A large order previously planned for Q1 2026 shipment is now expected in Q2 2026, expected to negatively impact Q1 revenue. - Overall visibility into future demand is lower due to irregular order patterns from fixed wireless access customers and new customers without observable order patterns. - Currently expects total net revenue for Q1 2026 to be approximately $1.2 million assuming no contribution from the delayed order shipment.

• Unexpected delay in receipt of key materials from an Asia-based supplier, stuck in customs, causing a significant order to be delayed from Q1 to Q2 2026, impacting Q1 revenue by over half a million dollars. - Uncertainty in future demand due to irregular order patterns from fixed wireless access customers and new customers without established order patterns.

Q: Regarding the Intact deal, when should revenues from it begin and how to size the opportunity?

A: Revenue has two components, 90% non-recurring engineering (NRE) and 10% product revenue currently, with real production shifting to the second half of 2026.

Q: Number of customers in active conversations for adjacent market opportunities?

A: Around three to five, including household names like Fortune 100 companies, with potential production in end of 2026 or early 2027.

Q: Inbound interest in tactical communications due to current conflict?

A: Seeing traction in drone swarms and friend or foe identification solutions.

Q: Inventory levels and order return for SWA business?

A: Expecting orders to be replenished in Q3 and Q4.

Q: Increase in investments for new opportunities and impact on gross margins?

A: Policy is to have customers pay for R&D, with projects having customer contribution, and ramp-up affecting gross margins as production moves forward.