Peraso (NASDAQ:PRSO) Issues Quarterly Earnings Results, Meets Expectations

Peraso (NASDAQ:PRSO) issued its earnings results on Thursday. The company reported ($0.16) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.16), FiscalAI reports. Peraso had a negative return on equity of 223.38% and a negative net margin of 85.63%. The company had revenue of $0.28 million for the quarter, compared to the consensus estimate of $1.10 million.

Here are the key takeaways from Peraso’s conference call:

• Revenue fell sharply: Third-quarter revenue was $0.3 million, down from $1.3 million in the prior quarter and $3.2 million a year earlier. The $2.7 million non-GAAP net loss widened year over year; gross margin rose to 78.5%, helped partly by a one-time $55,000 inventory-accrual reversal.
• Fixed wireless demand may be recovering: Peraso received a production order exceeding $2 million in October, its largest fixed wireless order in six quarters, with shipments expected through mid-2027. Management expects sequential revenue growth in the fourth quarter, though it said market conditions may take several quarters to normalize.
• A $10 million strategic investment strengthened the balance sheet: NantCapital’s investment was completed in late October and is intended to support working capital and product development, including defense and drone communications. Peraso said the funding provided added runway and concluded its review of strategic alternatives; shares outstanding increased to approximately 20.9 million.
• Defense and autonomous robotics are developing opportunities, not yet reported revenue drivers: Peraso highlighted interest in UAV and ground-based defense communications, introduced a jam-resistant communications module, and demonstrated a robot-to-edge-server link. Management described multiple engagements and late-stage evaluations, but did not disclose design wins or production orders in these markets.

Peraso Stock Performance

Shares of PRSO traded down $0.02 during midday trading on Thursday, hitting $0.37. 244,767 shares of the company traded hands, compared to its average volume of 3,957,842. The firm has a 50 day moving average of $0.45 and a 200-day moving average of $0.80. Peraso has a 52 week low of $0.32 and a 52 week high of $2.16. The stock has a market cap of $5.53 million, a price-to-earnings ratio of -0.54 and a beta of 0.84.

Wall Street Analysts Forecast Growth

PRSO has been the subject of several recent analyst reports. Weiss Ratings downgraded Peraso from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 30th. Wall Street Zen upgraded shares of Peraso from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Ladenburg Thalmann & Co. Inc. lifted their price objective on shares of Peraso from $2.75 to $3.25 and gave the company a “buy” rating in a research report on Monday, August 17th. Two analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Peraso has an average rating of “Hold” and a consensus price target of $3.08.

Peraso Company Profile

Peraso Inc. is a fabless semiconductor company focused on millimeter-wave (mmWave) wireless technology. The company develops high-performance, low-power integrated circuits, radio-frequency components and antenna solutions for high-speed wireless communications. Its product portfolio includes 60 GHz WiGig chipsets and modules, as well as mmWave products designed for 5G fixed wireless access, wireless infrastructure, point-to-point and point-to-multipoint connectivity, and other broadband applications.