Peraso Inc. Reports Q1 2025 Revenue Growth to $3.87 Million, Net Loss Improves

Peraso Inc. reported its financial results for the first quarter of 2025, revealing a total net revenue of $3.87 million, a significant increase from $2.82 million in the same period of 2024. The growth was primarily driven by a rise in product sales, particularly in mmWave integrated circuits (ICs) and antenna modules, which accounted for $3.80 million of the total revenue. The company’s gross profit for the quarter was $2.68 million, up from $1.31 million a year earlier, reflecting a gross margin of 69%, compared to 46% in the prior year. Despite the revenue increase, Peraso reported a net loss of $471,000, an improvement from a net loss of $2.03 million in the first quarter of 2024.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Research and development expenses decreased to $1.58 million from $2.84 million, attributed to cost-cutting measures including workforce reductions and lower consulting fees. Selling, general, and administrative expenses also fell to $1.61 million from $2.10 million, reflecting a focus on managing operational costs. Peraso's accumulated deficit stood at approximately $177.6 million as of March 31, 2025, indicating ongoing challenges in achieving profitability.

In terms of strategic developments, Peraso has completed the end-of-life process for its memory IC products, which were phased out due to the discontinuation of the foundry process by Taiwan Semiconductor Manufacturing Corporation (TSMC). This transition is expected to impact future revenues, as memory products represented a significant portion of the company's sales in prior periods. The company is now focusing on expanding its mmWave product offerings, with expectations of increased sales volume and revenue from these products in 2025.

Operationally, Peraso's cash and cash equivalents decreased to $2.78 million from $3.34 million at the end of 2024. The company utilized $966,000 in cash for operating activities during the first quarter, a reduction from $2.55 million in the same period last year. The company’s workforce has been reduced, with a headcount of 16 employees impacted by layoffs in late 2023, aimed at reducing cash burn and prioritizing higher return projects. Peraso is actively seeking additional financing to support its operations and has initiated an at-the-market offering program to raise capital.

Looking ahead, Peraso anticipates continued operating losses as it works to secure new customers and invest in product development. The company has expressed significant doubt about its ability to continue as a going concern if it cannot raise sufficient capital. Peraso is currently under scrutiny from Nasdaq for not meeting the minimum bid price requirement for its common stock, which adds to the urgency of its financial situation. The company is exploring various options to enhance liquidity and sustain its operations through the remainder of 2025.