Peraso Inc. Reports 47% Revenue Decline in Q2 2025, Faces Liquidity Concerns

Peraso Inc. reported its financial results for the second quarter of 2025, revealing a total net revenue of $2.2 million, a decline of 47% compared to $4.2 million in the same period of 2024. For the first half of 2025, the company generated $6.1 million in revenue, down 14% from $7.1 million in the prior year. The decrease in revenue was primarily attributed to the cessation of shipments of memory integrated circuits (ICs) following the completion of end-of-life orders in March 2025, which had historically contributed significantly to revenue. In contrast, sales of mmWave ICs and antenna modules increased, indicating a shift in product focus.

The company's gross profit for the second quarter was $1.1 million, a 54% decrease from $2.4 million in the previous year, while the gross profit margin fell to 48% from 55%. The decline in gross profit was largely due to the absence of higher-margin memory IC sales and a shift in product mix towards lower-margin mmWave products. Operating expenses also saw a reduction, with research and development costs decreasing by 37% to $1.7 million, and selling, general, and administrative expenses down 34% to $1.4 million, reflecting cost-cutting measures implemented in previous quarters.

Peraso's total liabilities decreased to $2.5 million as of June 30, 2025, from $3.7 million at the end of 2024, while stockholders' equity fell to $3.0 million from $3.5 million. The company reported a net loss of $1.8 million for the second quarter, compared to a loss of $4.4 million in the same period last year. The accumulated deficit stood at approximately $179.4 million, raising concerns about the company's ability to sustain operations without additional capital.

In terms of strategic developments, Peraso is currently exploring various funding arrangements to address its short-term cash needs and has engaged Craig-Hallum Capital Group as a financial advisor to assist in evaluating a non-binding acquisition proposal from Mobix Labs, Inc. The company is also pursuing a range of strategic alternatives, including potential mergers or asset sales, to maximize shareholder value. Despite these efforts, management has expressed uncertainty regarding the ability to maintain liquidity and continue operations without raising additional capital.

Looking ahead, Peraso anticipates continued operating losses as it works to secure new customers and invest in product development. The company expects to increase sales of its mmWave products based on current order backlogs and the anticipated commencement of production shipments to new clients. However, the ongoing need for capital raises significant doubt about its ability to continue as a going concern within the next year, as highlighted by its independent auditors.