Q2 '25 Earnings Preview

Peraso (PRSO) reports Q2 ’25 results on Monday, August 11, after the market closes. Given the company’s solid backlog of mmWave orders entering the quarter, we expect the results to be largely in line with our estimates and consensus. Recall that Peraso previously booked significant purchase orders with an existing wireless systems customer and a specialized defense contractor, both of which were slated to begin shipping in Q2. Subsequently, the company has announced additional wins, including its first production order for a wireless video system tailored to the education market and an expanded relationship with Tachyon Networks, which selected Peraso’s PRM2141X module for its next-generation outdoor fixed wireless solution. As such, we believe the company remains on track to deliver sequential growth in mmWave sales throughout the year. Our price target remains $2.75 based on a FY ’25 EV/Sales multiple of 1x. 

Exhibit I: Our Estimates Versus Consensus

Source: K. Liu & Company LLC; FactSet Estimates

For Q2, we estimate revenue of $1.9 million, adjusted EBITDA of $(2.2) million and non-GAAP EPS of $(0.44), all of which are generally consistent with consensus of $2.0 million, $(2.2) million and $(0.46), respectively. Management’s guidance calls for revenue of $1.8-$2.0 million. As Q1 marked the final period of memory IC sales, we expect gross margin to decline sequentially and Y/Y to approximately 44%. Lastly, we model cash operating expenses at levels consistent with the past two quarters and slightly lower than the year-ago period. Beyond Q2, we anticipate continued sequential growth in mmWave sales with commensurate improvements in both adjusted EBITDA and EPS.

Aside from the quarterly results and outlook, we will be attuned to any update on the company’s ongoing evaluation of strategic alternatives. As a reminder, Mobix Labs (MOBX) launched an unsolicited bid to acquire Peraso for approximately $1.20 per share in an all-stock transaction back in June. After acknowledging receipt of the offer, Peraso retained a financial advisor to assist with an exploration of strategic alternatives. Management is also considering potential funding arrangements to address near-term liquidity requirements and to support the company’s operations. Considering the company’s proven technology and renewed momentum in mmWave sales, we continue to believe Peraso has several paths to increase shareholder value.

Our report with model and disclosures is available here.

Disclosure(s):

K. Liu & Company LLC (“the firm”) receives or intends to seek compensation from the companies covered in its research reports. The firm has received compensation from Peraso Inc. (PRSO) in the past 12 months for “Sponsored Research.”

Sponsored Research produced by the firm is paid for by the subject company in the form of an initial retainer and a recurring monthly fee. The analysis and recommendations in our Sponsored Research reports are derived from the same process and methodologies utilized in all of our research reports whether sponsored or not. The subject company does not review any aspect of our Sponsored Research reports prior to publication.