Peraso Inc. Reports 16% Revenue Decline in Q3 2025, Faces Liquidity Challenges

Peraso Inc. reported its financial results for the third quarter of 2025, revealing a total net revenue of $3.2 million, a decrease of 16% from $3.8 million in the same period of 2024. The decline was primarily attributed to a significant reduction in shipments of memory integrated circuits (ICs) following the end-of-life phase for these products, which was initiated in May 2023. Product revenue for the quarter was $3.1 million, down from $3.8 million year-over-year, while royalty and other revenues increased to $172,000 from $30,000, driven by a rise in non-recurring engineering services related to mmWave technology.

For the nine months ending September 30, 2025, Peraso reported a net revenue of $9.3 million, down 14% from $10.9 million in the prior year. The company incurred a net loss of approximately $3.5 million for the nine-month period, compared to a loss of $9.2 million for the same period in 2024. The accumulated deficit as of September 30, 2025, stood at $180.6 million. The decrease in losses was attributed to reduced operating expenses, including a 37% drop in research and development costs, which fell to $4.8 million from $7.6 million, and a 32% reduction in selling, general, and administrative expenses, which totaled $4.5 million.

Operationally, Peraso's total assets decreased to $6.2 million as of September 30, 2025, down from $7.2 million at the end of 2024. The company’s cash and cash equivalents also declined to $1.9 million from $3.3 million. The reduction in cash was primarily due to net cash used in operating activities amounting to $4.6 million for the first nine months of 2025. The company has been actively seeking additional financing to support its operations, as it anticipates continued operating losses and cash burn in the near future.

In terms of strategic developments, Peraso has been engaged in a strategic review process following an unsolicited acquisition proposal from Mobix Labs, Inc. The company has been evaluating this proposal while also exploring other strategic alternatives. Additionally, Peraso completed a warrant inducement offering in September 2025, generating approximately $0.9 million in net proceeds. The company has also been utilizing an at-the-market offering program, raising $2.3 million from stock sales during the first nine months of 2025.

Looking ahead, Peraso expects to continue facing challenges in increasing revenues significantly beyond current levels to achieve sustainable profitability. The company is focused on securing new customers and investing in the commercialization of its mmWave products. However, there remains substantial doubt regarding its ability to maintain liquidity and continue operations without raising additional capital, as indicated by the independent auditor's report expressing concerns about the company's ability to continue as a going concern.