Q4 2025 Peraso Inc Earnings Call

March 16, 2026

Speaker #1: Good afternoon, and welcome to Peraso Inc.'s third quarter 2025 conference call. At this time, all participants are in a listen-only mode. If anyone needs assistance at any time during the conference call, please press the star key followed by the zero key on your touch-tone phone.

Speaker #1: As a reminder, this conference call is being recorded today, Monday, the 16th of March, 2026. I would now like to turn the call over to your host for today's conference call, Mr. James Sullivan.

Speaker #1: Please go ahead.

Speaker #2: Good afternoon, and thank you for joining today's conference call to discuss Peraso's fourth quarter and full year 2025 financial results. I'm Jim Sullivan, CFO of Peraso, and joining me today is Ron Glibbery, our CEO.

James Sullivan: Good afternoon, and thank you for joining today's conference call to discuss Peraso's Q4 and full year 2025 financial results. I'm Jim Sullivan, CFO of Peraso, and joining me today is Ron Glibbery, our CEO. Today, after the market closed, we issued a press release and related Form 8-K, which was filed with the Securities and Exchange Commission. The press release and Form 8-K are available on Peraso's website at www.perasoinc.com under the Investor Relations section. There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on the investor relations website. As a reminder, comments made during today's conference call may include forward-looking statements. All statements other than the statements of historical fact could be deemed as forward-looking. Peraso advises caution and reliance on forward-looking statements.

Speaker #2: Today, after the market closed, we issued a press release and related Form 8-K, which was filed with the Securities and Exchange Commission. The press release and Form 8-K are available on Peraso's website, at www.perasoinc.com, under the Investor Relations section.

Speaker #2: There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on the Investor Relations website.

Speaker #2: As a reminder, comments made during today's conference call may include forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking.

Speaker #2: Peraso advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings, as well as any statements concerning the expected development, performance, and market share or competitive performance of our products or technologies.

James Sullivan: These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings. As well as any statements concerning the expected development, performance, and market share or competitive performance of our products or technologies, and any statements related to prospective future financing arrangements or capital transactions, and the evaluation or pursuit of strategic alternatives. All forward-looking statements are based on information available to Peraso on the date hereof. These statements involve known and unknown risks, uncertainties, and other factors that may cause Peraso's actual results to differ materially from those implied by the forward-looking statements, including unexpected changes in the company's business. More detailed information about these risk factors and additional risk factors are set forth in Peraso's public filings with the Securities and Exchange Commission.

Speaker #2: And any statements related to prospective future financing arrangements or capital transactions, and the evaluation or pursuit of strategic alternatives. All forward-looking statements are based on information available to Peraso on the date hereof.

Speaker #2: These statements involve known and unknown risks, uncertainties, and other factors that may cause Peraso's actual results to differ materially from those implied by the forward-looking statements.

Speaker #2: Including unexpected changes in the company's business. More detailed information about these risk factors, and additional risk factors, are set forth in Peraso's public filings with the Securities and Exchange Commission.

James Sullivan: Peraso expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP. With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense, severance costs, amortization of intangible assets, and the change in fair value of warrant liabilities. These non-GAAP financial measures, definitions, and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related Form 8-K, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the investor relations page of our website.

Speaker #2: Peraso expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Speaker #2: Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP.

Speaker #2: With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense, severance costs, amortization of intangible assets, and the change in fair value of warrant liabilities.

Speaker #2: These non-GAAP financial measures' definitions, and the reconciliation of the differences between them and comparable GAAP measures, are presented in our press release and related Form 8-K, which provide additional details.

Speaker #2: For those of you unable to listen to the entire call at this time, a recording will be available on the Investor Relations page of our website.

Speaker #2: I'll now turn the call over to our CEO, Ron Glibbery, for his prepared remarks. Ron,

James Sullivan: I'll now turn the call over to our CEO, Ron Glibbery, for his prepared remarks. Ron?

Speaker #3: Thank you, Jim. Good afternoon, and welcome to everyone on the phone and webcast. We appreciate you joining today's conference call. We close out 2025 with a solid fourth quarter that was in line with our guidance range and supported by continued year-over-year growth in millimeter-wave product shipments.

Ron Glibbery: Thank you, Jim. Good afternoon, and welcome to everyone on the phone and webcast. We appreciate you joining today's conference call. We closed out 2025 with a solid Q4 that was in line with our guidance range and supported by continued year-over-year growth in millimeter wave product shipments. For the full year, revenue from our millimeter wave products grew approximately sixfold compared to 2024. Together with healthy gross margins and our disciplined approach to expense management, this contributed to a meaningful improvement in our bottom-line results for the year. I continue to be pleased with our team's execution over the past several quarters. The year-over-year expansion in millimeter wave revenue underscores the growing commercial traction of our 60 GHz solutions in multiple targeted end markets.

Speaker #3: For the full year, revenue from our millimeter-wave products grew approximately six-fold. Compared to gross margins, and with our disciplined approach to expense management, this contributed to a meaningful improvement in our bottom-line results for the year.

Speaker #3: I continue to be pleased with our team's execution over the past several quarters. The year-over-year expansion in millimeter-wave revenue underscores the growing commercial traction of our 60-gigahertz solutions in multiple targeted end markets.

Speaker #3: It also reflects a combination of increased product shipments, as well as the ramp of newly secured design wins across both new and existing customers.

Ron Glibbery: It also reflects a combination of increased product shipments as well as the ramp of newly secured design wins across both new and existing customers. Notably, we have achieved this while maintaining tight control over operating expenses. Turning to Slide 4. Fixed Wireless Access remains our largest and longest-served end market. Not only was it the primary driver for our millimeter wave revenue growth in 2025, but we believe that Fixed Wireless Access will continue to be a sizable ongoing market opportunity for our 60 GHz millimeter wave technology. We saw a broad recovery in customer demand and order trends throughout the year, which included notable traction for our fully integrated DUNE platform, as well as our Perspectus 60 GHz millimeter wave modules. Specific to our DUNE platform, we have seen sustained uptake by customers for deployments of high-speed wireless broadband in dense urban environments.

Speaker #3: Notably, we have achieved this while maintaining tight control over operating expenses. Turning to slide four, fixed wireless access remains our largest and longest-served end market.

Speaker #3: Not only was it the primary driver for our millimeter-wave revenue growth in 2025, but we believe that fixed wireless access will continue to be a sizable ongoing market opportunity for our 60-gigahertz millimeter-wave technology.

Speaker #3: We saw a broad recovery in customer demand and order trends throughout the year, which included notable traction for our fully integrated DUNE platform, as well as our prospective 60-gigahertz millimeter-wave modules.

Speaker #3: Specific to our DUNE platform, we have seen sustained uptake by customers for deployments of high-speed wireless broadband in dense urban environments. The fundamental performance benefits of the integrated platform, including lower cost deployment, low power, long range, and point-to-point-to-point capabilities, continue to resonate with a growing list of wireless internet service providers that span North America, as well as Africa.

Ron Glibbery: The fundamental performance benefits of the integrated platform, including lower cost deployment, low power, long range, and point-to-multipoint capabilities, continue to resonate with a growing list of wireless internet service providers that span North America as well as Africa. More broadly, I want to briefly reiterate two significant fixed wireless access customer wins that we secured in 2025. First, in July, we announced that Tachyon Networks had selected Peraso's Perspectus modules for their latest outdoor 60 GHz gigabit wireless solution, supporting up to 48 client connections per sector and targeted for cost-effective deployments in both dense urban and rural environments. In September, we announced our renewed collaboration with WeLink to accelerate cost-effective deployments of a multi-gigabit mesh architecture for business and consumers in dense urban neighborhoods across multiple major US cities. We believe these customer wins position us well for continued growth over the coming years.

Speaker #3: More broadly, I want to briefly reiterate two significant fixed wireless access customer wins that we secured in 2025. First, in July, we announced that Tachyon Networks had selected Peraso's prospective modules for their latest outdoor 60-gigahertz gigabit wireless solution.

Speaker #3: Supporting up to 48 client connections per sector and targeted for cost-effective deployments in both dense urban and rural environments. Then, in September, we announced our renewed collaboration with WeLink to accelerate cost-effective deployments of a multi-gigabit mesh architecture for business and consumers in dense urban neighborhoods across multiple major U.S. cities.

Speaker #3: We believe these customer wins position us well for continued growth over the coming year. Most recently, in early March at Mobile World Congress, MikroTik launched its next-generation 60-gigahertz wireless nRay point-to-point product incorporating Peraso technology.

Ron Glibbery: Most recently, in early March at Mobile World Congress, MikroTik launched its next-generation 60 GHz wireless nRay point-to-point product incorporating Peraso technology. Given this customer's substantial market share of wireless internet service providers globally, we believe this product launch has the potential to reinforce our position as a leading provider of 60 GHz semiconductors for the fixed wireless access market. Today, we continue to support a wide span of ongoing proof of concepts utilizing Peraso's 60 GHz technology with a diverse group of wireless internet service providers. If additional proof of concepts are converted into deployments, we would expect incremental production orders to support sustained year-over-year growth of the millimeter wave product revenue. Moving to slide 5. Beyond fixed wireless access, we have continued to see increased market awareness of 60 GHz technology extending to additional end markets, notably tactical communications.

Speaker #3: Given this customer's substantial market share of wireless Internet service providers globally, we believe this product launch has the potential to reinforce our position as a leading provider of 60-gigahertz semiconductors for the fixed wireless access market.

Speaker #3: Today, we continue to support a wide span of ongoing proof-of-concepts utilizing Peraso's 60-gigahertz technology with a diverse group of wireless Internet service providers. If additional proof-of-concepts are converted into deployments, we would expect incremental production orders to support sustained year-over-year growth of the millimeter-wave product revenue.

Speaker #3: Moving to slide five, beyond fixed wireless access, we have continued to see increased market awareness of 60-gigahertz technology extending to additional end markets, most notably tactical communications.

Speaker #3: In fact, 2025 marks a significant step forward for Peraso, as we successfully transitioned an initial prospective customer engagement on a conceptual military defense application from an emerging adjacent opportunity to what we now view as a definitive new market vertical with high growth potential.

Ron Glibbery: In fact, 2025 marks a significant step forward for Peraso as we successfully transitioned an initial prospective customer engagement on a conceptual military defense application from an emerging adjacent opportunity to what we now view as a definitive new market vertical with high growth potential. In April, we achieved the first major milestone toward commercialization within the tactical communications market. This was highlighted by our announced contract to incorporate Peraso 60 GHz wireless technology into a leading specialized defense contractor's innovative and first of its kind deployable system solution for enhanced situational awareness on the battlefield. We delivered initial production shipments in support of our joint solution with this defense customer in June, and then we were pleased to report in November the successful completion of initial field trials.

Speaker #3: In April, we achieved the first major milestone toward commercialization within the tactical communications market. This was highlighted by our announced contract to incorporate Peraso's 60-gigahertz wireless technology into a leading specialized defense contractor's innovative and first-of-its-kind deployable system solution for enhanced situational awareness on the battlefield.

Speaker #3: We delivered initial production shipments in support of our joint solution with this defense customer in June, and then we were pleased to report in November the successful completion of initial field trials.

Speaker #3: Notably, this initial customer engagement has served to further validate the robust performance of our technology, while also demonstrating why our millimeter-wave solutions are particularly well suited for these environments.

Ron Glibbery: Notably, this initial customer engagement has served to further validate the robust performance of our technology while also demonstrating why our millimeter wave solutions are particularly well suited for these environments. Traditional wireless communications are highly susceptible to enemy detection and jamming. In contrast, 60 GHz millimeter wave can offer stealthy communication characteristics thanks to narrow beamforming, dynamic beam steering, and oxygen attenuation. These characteristics are designed to provide low probability of detection, low probability of interception, and strong anti-jamming characteristics, all while operating in unlicensed frequency band and avoiding interference with licensed spectrum. Today, the jointly developed solution for enhanced situational awareness is undergoing additional planned field trials with our lead defense contractor. The collective feedback from these trials has been consistently positive, and we continue to believe this solution and partnership could represent a meaningful long-term revenue opportunity for Peraso.

Speaker #3: Traditional wireless communications are highly susceptible to enemy detection and jamming. In contrast, 60-gigahertz millimeter-wave can offer stealthy communication characteristics thanks to narrow beamforming, dynamic beam steering, and oxygen attenuation.

Speaker #3: These characteristics are designed to provide low probability of detection, low probability of interception, and strong anti-jamming characteristics, all while band and avoiding interference with licensed spectrum.

Speaker #3: Today, the jointly developed solution for enhanced situational awareness is undergoing additional planned field trials with our lead defense contractor. The collective feedback from these trials has been consistently positive, and we continue to believe this solution and partnership could represent a meaningful long-term revenue opportunity for Peraso.

Speaker #3: Having said that, the progress we achieved over the past year established a strong foundation for broader engagement with our lead customer and for an expanded presence in the tactical communications market.

Ron Glibbery: Having said that, the progress we achieved over the past year established a strong foundation for broader engagement with our lead customer, and for an expanded presence in the tactical communications market. Earlier this month, we were pleased to both name InTACT as our lead defense contractor customer and also announced that InTACT selected Peraso 60 GHz millimeter wave technology for use in its next generation drone identification friend or foe system. Given the significance of this latest win and new application for our technology, I'll turn to the next slide to review additional details. To further highlight this recent win and its validation of our 60 GHz millimeter wave technology for mission-critical defense applications, I want to briefly talk about the capabilities that we are enabling for our Israeli defense contractor customer.

Speaker #3: Earlier this month, we were pleased to both name Intact as our lead defense contractor customer, and also announce that Intact selected Peraso's 60-gigahertz millimeter-wave technology for use in its next-generation drone identification friend-or-foe system.

Speaker #3: Given the significance of this latest win, and the new application for our technology, I'll turn to the next slide to review additional details. To further highlight this recent win, and its validation of our 60-gigahertz millimeter-wave technology for mission-critical defense applications, I want to briefly talk about the capabilities that we are enabling for our Israeli defense contractor customer.

Speaker #3: Intact selected Peraso technology to serve as the core communications backbone for its next-generation drone identification friend or foe system, engineered specifically for highly contested electronic warfare environments.

Ron Glibbery: InTACT selected Peraso technology to serve as the core communications backbone for its next-generation drone identification friend or foe system, engineered specifically for highly contested electronic warfare environments. With the rapid proliferation of drones on the battlefield, secure identification systems are becoming essential to prevent friendly fire incidents and enable safe coordination between unmanned and manned forces. This innovative platform enables secure real-time mutual authentication between friendly drones and ground forces, allowing counter-drone systems and battlefield operators to rapidly distinguish friend from foe in today's increasingly crowded skies. A fundamental characteristic of our 60 GHz millimeter wave technology is its inherently secure and directional communications channel. Additionally, our beamforming wireless transceivers deliver low power links with extremely low probability of detection, all of which makes our technology ideal for dense battlefield environments where traditional radio frequency signals can easily be jammed and or compromised.

Speaker #3: With the rapid proliferation of drones on the battlefield, secure identification systems are becoming essential to prevent friendly fire incidents and enable safe coordination between unmanned and manned forces.

Speaker #3: This innovative platform enables secure, real-time mutual authentication between friendly drones and ground forces, allowing counter-drone systems and battlefield operators to rapidly distinguish friend from foe in today's increasingly crowded skies.

Speaker #3: A fundamental characteristic of our 60-gigahertz millimeter-wave technology is its inherently secure and directional communications channel. Additionally, our beamforming wireless transceivers deliver low-power links with extremely low probability of detection.

Speaker #3: All of which makes our technology ideal for dense battlefield environments where traditional radio frequency signals can easily be jammed and/or compromised. Lastly, I want to emphasize that this recently announced milestone is the result of an ongoing multi-project collaboration with Intact over the past two years, during which we have consistently demonstrated the readiness of Peraso's millimeter-wave technology to enable diverse mission-critical military communications applications.

Ron Glibbery: Lastly, I want to emphasize that this recently announced milestone is the result of an ongoing multi-project collaboration with InTACT over the past two years, during which we have consistently demonstrated the readiness of Peraso's millimeter wave technology to enable diverse mission-critical military communications applications. Turning to slide 7. While Fixed Wireless Access and tactical communications remain our primary focus area, we continue to see compelling incremental opportunities in adjacent markets. Many of these adjacent market opportunities originate with a prospective customer approaching us looking for a solution, and the significant versatility of our 60 GHz millimeter wave technology allows us to solve connectivity challenges they have not been able to overcome using traditional wireless technology. One example that I highlighted on a previous conference call was our first ever production shipment around mid-year for a customer's wireless video system in classroom environments.

Speaker #3: Turning to slide seven, while fixed wireless access and tactical communications remain our primary focus area, we continue to see compelling incremental opportunities in adjacent markets.

Speaker #3: Many of these adjacent market opportunities originate with a prospective customer approaching us looking for a solution, and the significant versatility of our 60-gigahertz millimeter-wave technology allows us to solve connectivity challenges they have not been able to overcome using traditional wireless technology.

Speaker #3: One example that I highlighted on a previous conference call was our first-ever production shipment around mid-year for a customer's wireless video system in classroom environments.

Speaker #3: This specific application required delivering reliable, high-performance, low-latency video independent of congested Wi-Fi networks. As we've continued to engage with additional prospective customers across a broad range of end markets and applications, a number of our discussions have converged around a shared pain point: how to overcome the challenges associated with processing massive amounts of high-bandwidth video for edge AI applications.

Ron Glibbery: This specific application required delivering reliable, high performance, low latency video independent of congested Wi-Fi networks. As we've continued to engage with additional prospective customers across a broad range of end markets and applications, a number of our discussions have converged around a shared pain point: how to overcome the challenges associated with processing massive amounts of high bandwidth video for Edge AI applications. A few prominent use cases include last mile delivery services, autonomous vehicles, and drones. Notably, customers are especially attracted to 60 GHz millimeter wave's unique combination of multi-gigabit data rates for high resolution video streaming, ultra-low latency for real-time performance, and exceptional power efficiency, which is critical for battery-operated Edge AI devices.

Speaker #3: A few prominent use cases include last-mile delivery services, autonomous vehicles, and drones. Notably, customers are especially attracted to 60-gigahertz millimeter wave's unique combination of multi-gigabit data rates for high-resolution video streaming, ultra-low latency for real-time performance, and exceptional power efficiency, which is critical for battery-operated edge AI devices.

Speaker #3: To highlight another recent milestone, during the fourth quarter, we announced our collaboration with BuyerWorks. We are supplying our latest 60-gigahertz prospective modules to power their BX60 platform, enabling multi-gigabit wireless connectivity specifically designed for robotaxi fleet vehicles and physical AI applications.

Ron Glibbery: To highlight another recent milestone, during Q4, we announced our collaboration with Virewirx. We are supplying our latest 60 GHz Perspectus modules to power their BX 60 platform, enabling multi-gigabit wireless connectivity, specifically designed for robotaxi fleet vehicles and physical AI applications. This partnership directly addresses one of the biggest bottlenecks in autonomous vehicle operations, the need to rapidly upload terabytes of telemetry and high-resolution camera data when vehicles return to depots for charging, while simultaneously delivering software updates. Conventional Wi-Fi and 5G solutions can easily become oversaturated under these demands. The BX 60 system delivers breakthrough performance, supporting up to 1 terabyte of data transfer per vehicle per hour, which we believe can surpass the capabilities of traditional alternatives. As I stated in our announcement, this is exactly the kind of challenge our 60 GHz products were designed to solve.

Speaker #3: This partnership directly addresses one of the biggest bottlenecks in autonomous vehicle operations: the need to rapidly offload terabytes of telemetry and high-resolution camera data when vehicles return to depots for charging, while simultaneously delivering software updates.

Speaker #3: Conventional Wi-Fi and 5G solutions can easily become oversaturated under these demands. The BX60 system delivers breakthrough performance, supporting up to one terabyte of data transfer per vehicle per hour, which we believe can surpass the capabilities of traditional alternatives.

Speaker #3: As I stated in our announcement, this is exactly the kind of challenge our 60-gigahertz products were designed to solve. Autonomous vehicles and the AI systems that power them process tremendous amounts of data, requiring immense bandwidth, and that's what our technology does extremely well.

Ron Glibbery: Autonomous vehicles and the AI systems that power them to process tremendous amounts of data require an immense bandwidth, and that's what our technology does extremely well. This robotaxi application could represent one of the largest scale uses of our millimeter wave solutions to date and further validates the unique value we bring to customers across diverse Edge AI applications. Virewirx and its robotaxi platforms are a perfect example of how adjacent opportunities expand our served addressable market and help diversify our revenue base beyond Fixed Wireless Access and tactical communications. In closing, we are encouraged by the growing market awareness of 60 GHz wireless technology and its unique ability to deliver high bandwidth and secure connectivity in congested operating environments.

Speaker #3: This robotaxi application could represent one of the largest-scale uses of our millimeter-wave solutions to date, and further validates the unique value we bring to customers across diverse edge AI applications.

Speaker #3: BuyerWorks and its robotaxi platforms are a perfect example of how adjacent opportunities expand our served addressable market and help diversify our revenue base beyond fixed wireless access and tactical communications.

Speaker #3: In closing, we are encouraged by the growing market awareness of 60-gigahertz wireless technology and its unique ability to deliver high-bandwidth and secure connectivity in congested operating environments.

Speaker #3: Our focus for 2026 remains on broadening our customer base and pipeline of design wins across fixed wireless access and tactical communications, while selectively pursuing high-growth opportunities in adjacent markets such as edge AI.

Ron Glibbery: Our focus for 2026 remains on broadening our customer base and pipeline of design wins across fixed wireless access and tactical communications, while selectively pursuing high growth opportunities in adjacent markets such as Edge AI. Combined with our ongoing commitment to disciplined expense management, we believe we are well-positioned to deliver continued year-over-year growth in millimeter wave revenue in our operating results over the coming year. Lastly, before turning the call over to Jim, I want to acknowledge a unique challenge that we recently became aware of and which we now anticipate to have a negative impact on our top-line results for Q1.

Speaker #3: Combined with our ongoing commitment to disciplined expense management, we believe we are well positioned to deliver continued year-over-year growth in millimeter-wave revenue in our operating results over the coming year.

Speaker #3: Lastly, before turning the call over to Jim, I want to acknowledge a unique challenge that we recently became aware of, and which we now anticipate will have a negative impact on our top-line results for the first quarter.

Speaker #3: Due to an unexpected delay in the receipt of key materials from one of our Asia-based suppliers, which, as of today, we believe is stuck in customs, we are unlikely to be able to fulfill a significant order that was previously scheduled for shipment during the first quarter.

Ron Glibbery: Due to an unexpected delay in the receipt of key materials from one of our Asia-based suppliers, which as of today we believe is stuck in customs, we are unlikely to be able to fulfill a significant order that was previously scheduled for shipment during Q1. Although we do expect to fulfill this order during Q2, the delayed shipment is anticipated to result in more than half a million dollars impact on our anticipated revenue for Q1. While we clearly are disappointed by the delayed shipment, I want to emphasize that this is largely reflective of a temporary supplier logistics issue, and we remain optimistic about the future prospects of Peraso's overall business. With that, I'll hand the call over to Jim to review the financials and provide our revenue outlook for Q1.

Speaker #3: Although we do expect to fulfill this order during the second quarter, the delayed shipment is anticipated to result in more than half a million dollars' impact on our anticipated revenue for the first quarter.

Speaker #3: While we clearly are disappointed by the delayed shipment, I want to emphasize that this is largely reflective of a temporary supplier logistics issue, and we remain optimistic about the future prospects of Peraso's overall business.

Speaker #3: With that, I'll hand the call over to Jim to review the financials and provide our revenue outlook for the first quarter.

Speaker #2: Thank you, Ron. Turning now to the results for the fourth quarter of 2025. Total net revenue for the fourth quarter was $2.9 million, compared with $3.2 million for the prior quarter and $3.7 million for the fourth quarter of 2024.

James Sullivan: Thank you, Ron. Turning now to the results for Q4 2025. Total net revenue for Q4 was $2.9 million, compared with $3.2 million for the prior quarter and $3.7 million for Q4 2024. Full year 2025 net revenue was $12.2 million, compared with $14.6 million in the prior year. Product revenue in Q4 was $2.8 million, compared with $3.1 million in the prior quarter and $3.7 million in Q4 2024.

Speaker #2: Full-year 2025 net revenue was $12.2 million, compared with $14.6 million in the prior year. Product revenue in the fourth quarter was $2.8 million, compared with $3.1 million in the prior quarter and $3.7 million in the fourth quarter of 2024.

Speaker #2: The decrease in product revenues for the fourth quarter of 2025 from the comparable period of 2024 was primarily attributable to the reduction in shipments of memory IC products, due to the previously announced end-of-life of the products.

James Sullivan: The decrease in product revenues for the Q4 of 2025 from the comparable period of 2024 was primarily attributable to the reduction in shipments of memory IC products due to the previously announced end of life of the products. This was partially offset by a year-over-year increase in shipments of millimeter wave products in the Q4 of 2025. Full year 2025 product revenue was $11.8 million, compared with $14.2 million in 2024. Specific to sales of millimeter wave products, revenues were $2.4 million in the Q4 of 2025, compared with $3 million in the prior quarter and $0.2 million in the Q4 of 2024.

Speaker #2: This was partially offset by a year-over-year increase in shipments of millimeter-wave products in the fourth quarter of 2025. Full-year 2025 product revenue was $11.8 million, compared with $14.2 million in 2024.

Speaker #2: Specific to sales of millimeter-wave products, revenues were $2.4 million in the fourth quarter of 2025, compared with $3.0 million in the prior quarter and $0.2 million in the fourth quarter of 2024.

Speaker #2: Total sales of millimeter-wave products for the full year 2025 increased to $9.1 million, from $1.3 million in 2024. GAAP gross margin was 52.2% in the fourth quarter, down from 56.2% in the prior quarter and compared with 56.3% in the year-ago quarter.

James Sullivan: Total sales of millimeter wave products for full year 2025 increased to $9.1 million from $1.3 million in 2024. GAAP gross margin was 52.2% in Q4, down from 56.2% in the prior quarter and compared with 56.3% in the year-ago quarter. GAAP gross margin for the full year 2025 was 58%, compared with 51.7% in the prior year. The increase in GAAP gross margin for the full year 2025 compared with 2024 was primarily attributable to increased millimeter wave margins due to increased shipments and an increase in memory IC product margins due to reduced amortization expense related to intangible assets, which were fully amortized as of 31 December 2024.

Speaker #2: Gap gross margin for the full year 2025 was 58%, compared with 51.7% in the prior year. The increase in gap gross margin for the full year 2025, compared with 2024, was primarily attributable to increased millimeter-wave margins due to increased shipments and an increase in memory IC product margins due to reduced amortization expense related to intangible assets, which were fully amortized as of December 31, 2024.

Speaker #2: On a non-GAAP basis, gross margin for the fourth quarter was 52.2%, compared with 56.2% in the prior quarter, and compared with 71.6% in the fourth quarter of 2024.

James Sullivan: On a non-GAAP basis, gross margin for Q4 was 52.2%, compared with 56.2% in the prior quarter and compared with 71.6% in Q4 of 2024. Full year 2025 non-GAAP gross margin was 58%, compared with 67.2% in 2024. The decreases in non-GAAP gross margin for Q4 and full year 2025 compared with the comparable periods of 2024 were primarily attributable to reduced shipments of our memory IC products. GAAP operating expenses for Q4 of 2025 were $2.8 million, compared with $3 million in the prior quarter and $3.7 million in Q4 of 2024.

Speaker #2: Full year 2025 non-GAAP gross margin was 58%, compared with 67.2% in 2024. The decreases in non-GAAP gross margin for the fourth quarter and full year 2025, compared with the comparable periods of 2024, were primarily attributable to reduced shipments of our memory IC products.

Speaker #2: Gap operating expenses for the fourth quarter of 2025 were $2.8 million, compared with $3.0 million in the prior quarter and $3.7 million in the fourth quarter of 2024.

Speaker #2: GAAP operating expenses for the full year 2025 were $11.8 million, compared with $20 million in the prior year. The decrease in operating expenses on a GAAP basis from the comparable period of 2024 was primarily attributable to reduced stock-based compensation expense and amortization expense related to intangible assets fully amortized in 2024, as well as a $2.3 million decrease in severance and software license obligation costs.

James Sullivan: GAAP operating expenses for the full year of 2025 were $11.8 million, compared with $20 million in the prior year. The decrease in operating expenses on a GAAP basis from the comparable period of 2024 was primarily attributable to reduced stock-based compensation expense and amortization expense related to intangible assets fully amortized in 2024, as well as a $2.3 million decrease in severance and software license obligation costs. Non-GAAP operating expenses, which excludes stock-based compensation, severance costs, and amortization of intangible assets, were $2.7 million in Q4, compared with $2.9 million in the prior quarter and $3.2 million in Q4 of 2024.

Speaker #2: Non-GAAP operating expenses, which exclude stock-based compensation, severance costs, and amortization of intangible assets, were $2.7 million in the fourth quarter, compared with $2.9 million in the prior quarter and $3.2 million in the fourth quarter of 2024.

Speaker #2: Non-GAAP operating expenses for the full year 2025 were $11.3 million, compared with $14.9 million in 2024. The decrease in operating expenses on a non-GAAP basis for the full year 2025, compared with 2024, was primarily attributable to a $1.8 million decrease in software license obligation costs and the benefits realized from previously implemented cost reductions and ongoing cost containment initiatives.

James Sullivan: Non-GAAP operating expenses for the full year of 2025 were $11.3 million, compared with $14.9 million in 2024. The decrease in operating expenses on a non-GAAP basis for full year 2025 compared with 2024 was primarily attributable to a $1.8 million decrease in software license obligation costs and the benefits realized from previously implemented cost reductions and ongoing cost containment initiatives. GAAP net loss for Q4 2025 was $1.2 million, or a loss of $0.13 per share, compared with a net loss of $1.2 million or a loss of $0.17 per share in the prior quarter, and compared with a net loss of $1.6 million or a loss of $0.37 per share in the same quarter a year ago.

Speaker #2: Gap net loss for the fourth quarter of 2025 was $1.2 million, or a loss of $0.13 per share, compared with a net loss of $1.2 million, or a loss of $0.17 per share in the prior quarter, and compared with a net loss of $1.6 million, or a loss of $0.37 per share in the same quarter a year ago.

Speaker #2: Full year 2025 GAAP net loss was $4.8 million, or a loss of $0.67 per share, compared with a net loss of $10.7 million, or a loss of $3.57 per share in 2024.

James Sullivan: Full year of 2025 GAAP net loss was $4.8 million or a loss of $0.67 per share, compared with a net loss of $10.7 million or a loss of $3.57 a share in 2024. Non-GAAP net loss, which excludes stock-based compensation, amortization of intangibles, severance costs, and changes in fair value of warrant liabilities for Q4 2025 was $1.2 million or a loss of $0.13 per share. This compared with a non-GAAP net loss of $1.1 million or a loss of $0.15 per share in the prior quarter, and a net loss of $0.5 million or a loss per share of $0.13 in the same quarter a year ago.

Speaker #2: Non-GAAP net loss, which excludes stock-based compensation, amortization of intangibles, severance costs, and changes in fair value of warrant liabilities for the fourth quarter of 2025, was $1.2 million, or a loss of $0.13 per share.

Speaker #2: This compares with a non-GAAP net loss of $1.1 million, or a loss of $0.15 per share, in the prior quarter, and a net loss of $0.5 million, or a loss per share of $0.13, in the same quarter a year ago.

Speaker #2: Full-year non-GAAP net loss for 2025 was $4.3 million, or a net loss of $0.60 per share, compared with a net loss of $5.1 million, or a net loss of $1.71 per share in 2024.

James Sullivan: Full year non-GAAP net loss of 2025 was $4.3 million or a net loss of $0.60 per share, compared with a net loss of $5.1 million or a net loss of $1.71 per share in 2024. The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAAP and non-GAAP EPS for the Q4 2025 was approximately 9.2 million shares.

Speaker #2: The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAAP and non-GAAP EPS for the fourth quarter of 2025 was approximately 9.2 million shares.

Speaker #2: Adjusted EBITDA, which we define as GAAP net income or loss as reported, excluding stock-based compensation, amortization of intangible assets, severance costs, change in fair value of warrant liabilities, interest expense, depreciation and amortization, and the provision for income taxes, was negative $1.1 million in the fourth quarter of 2025, compared with negative $1 million in the prior quarter and negative $0.4 million in the fourth quarter of 2024.

James Sullivan: Adjusted EBITDA, which we define as GAAP net income or loss, as reported excluding stock-based compensation, amortization of intangible assets, severance costs, change in fair value of warrant liabilities, interest expense, depreciation and amortization, and the provision for income taxes, was negative $1.1 million in Q4 2025, compared with negative $1 million in the prior quarter and negative $0.4 million in Q4 2024. Full year 2025 adjusted EBITDA was negative $4 million, compared with negative $4.5 million in 2024. With regard to the balance sheet, as of 31 December 2025, the company had approximately $2.9 million of cash, compared with $1.9 million as of 30 September 2025.

Speaker #2: Full year 2025 adjusted EBITDA was negative $4 million, compared with negative $4.5 million in 2024. With regard to the balance sheet, as of December 31, 2025, the company had approximately $2.9 million of cash, compared with $1.9 million as of September 30, 2025.

Speaker #2: The net increase of approximately $1 million in the company's cash balance for the fourth quarter reflected approximately $2.1 million in net proceeds from sales under the company's at-the-market offering program during the fourth quarter.

James Sullivan: The net increase of approximately $1 million in the company's cash balance for Q4 reflected approximately $2.1 million in net proceeds from sales under the company's at-the-market offering program during Q4. As of today's call, the company has approximately 12.6 million shares of common stock and exchangeable shares outstanding. As previously disclosed, the company has been exploring potential strategic alternatives, including a merger, sale of assets, or other similar transaction, as well as various potential sources of additional capital. Aside from confirming that the strategic review process continues to be ongoing in coordination with the company's financial advisor, there are no related updates to share on today's call from what we have previously disclosed. Now, turning to our outlook.

Speaker #2: As of today's call, the company has approximately 12.6 million shares of common stock and exchangeable shares outstanding. As previously disclosed, the company has been exploring potential strategic alternatives, including a merger, sale of assets, or other similar transaction, as well as various potential sources of additional capital.

Speaker #2: Aside from confirming that the strategic review process continues to be ongoing in coordination with the company's financial advisor, there are no related updates to share on today's call from what we had previously disclosed.

Speaker #2: Now, turning to our outlook. We remain optimistic about the breadth of customer engagements for our millimeter wave solutions across fixed wireless access, tactical military communications, and other markets.

James Sullivan: We remain optimistic about the breadth of customer engagements for our millimeter wave solutions across fixed wireless access, tactical military communications, and other markets. However, as Ron previously discussed, a large order that was previously planned for shipment in Q1 is now expected to be shipped in Q2 of 2026. Given the size of the order, this delay is expected to have a meaningfully negative impact on our revenue forecast for Q1. Unrelated to this order, overall visibility into future demand is lower due to a combination of irregular order patterns from our fixed wireless access customers, in addition to having multiple new customers that have yet to establish observable order patterns.

Speaker #2: However, as Ron previously discussed, a large order that was previously planned for shipment in the first quarter is now expected to ship in 2026. Given the size of the order, this delay is expected to have a meaningfully negative impact on our revenue forecast for the first quarter.

Speaker #2: Unrelated to this order, overall visibility into future demand is lower due to a combination of irregular order patterns from our fixed wireless access customers, in addition to having multiple new customers that have yet to establish observable order patterns.

Speaker #2: Based on revenue recognized year-to-date, and assuming no contribution from the previously mentioned delayed order shipment, the company currently expects total net revenue for the first quarter of 2026 to be approximately $1.2 million.

James Sullivan: Based on revenue recognized year to date, and assuming no contribution from the previously mentioned delayed order shipment, the company currently expects total net revenue for Q1 2026 to be approximately $1.2 million. This concludes our prepared remarks, and we thank you for your time this afternoon. Operator, please commence the Q&A session.

Speaker #2: This concludes our prepared remarks, and we thank you for your time this afternoon. Operator, please commence the Q&A session.

Speaker #1: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question today is coming from David Williams from Benchmark. David, your line is live.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker #1: And the first question today is coming from David Williams from Benchmark. David, your line is live.

Speaker #3: Hey, good afternoon, gentlemen. Thanks so much for taking my questions, and congratulations on the progress.

David Williams: Hey, good afternoon, gentlemen. Thanks so much for taking my questions and congratulations on the progress.

Speaker #4: Thanks, Dave.

Ron Glibbery: Thanks, Dave.

Speaker #3: Yeah, maybe Ron first. If you kind of think about that Intact deal, when should we think about the revenues from that beginning to start coming in?

David Williams: Yeah, maybe Ron first. If you kind of think about that InTACT deal, when should we think about the revenues from that beginning to start coming in? Is there any way to maybe size the total revenue opportunity for what you see in front of you here now?

Speaker #3: And is there any way to maybe size the total revenue opportunity for what you see in front of you here now?

Speaker #4: Yeah, good question. I mean, really, that revenue is comprised of two components. One is what we call non-recurring net engineering, which is NRE—of course, a one-time payment.

Ron Glibbery: Yeah, good question. I mean, really that revenue is comprised of two components. One is what we call non-recurring engineering, which is NRE, of course, a one-time payment, and the other is what we call production revenue. We're seeing, you know, I would say 90% NRE right now, 10%, you know, product revenue. I'm not sure, you know, Dave, we haven't split it out specifically. Maybe I'll leave it to Jim to maybe explicitly talk about it, but we see the real shift to what I would call production revenue. As a matter of fact, I just hung up with them, later today, or earlier today, I'm sorry, that the real production is going to shift, be in the second half of 2026.

Speaker #4: And the other is what we call production revenue. And we're seeing, I would say, 90% NRE right now, 10% product revenue. I'm not sure.

Speaker #4: Dave, we haven't split it out specifically. Maybe I'll leave it to Jim to maybe explicitly talk about it. But we see the real shift to what I would call production revenue.

Speaker #4: As a matter of fact, I just went out with them earlier today—or later today, I'm sorry. The real production is going to shift, being the second half of 2026.

Speaker #4: So that's kind of what we're looking at right now. We do expect more non-recurring engineering revenue, primarily just really adapting. One of the primary goals for us is just really getting the power consumption down, which has taken a lot of effort.

Ron Glibbery: That's kind of what we're looking at right now. We do expect more non-recurring engineering revenue, you know, primarily just really, you know, adapting this. One of the, you know, the primary goals for us is just really getting kind of the power consumption down. That's taking a lot of effort. You know, I would say right now, the meaningful revenue, I would say 90% what we call NRE, and the second half of 2026 will shift into product revenue. We have real visibility into that. Sorry, Dave, you still there?

Speaker #4: But so, I would say right now, the meaningful revenue— I would say 90%— is what we call NRE, and in the second half of '26, we'll shift into product revenue.

Speaker #4: And we have the other visibility into that. Sorry, Dave, are you still there?

Speaker #3: Yeah, sorry. Sorry about that. Thanks for the color—I couldn't get my phone off mute. All right, Ron, so you'd also talked about the adjacent market opportunities and clearly a lot of benefits there.

David Williams: Yeah. Sorry about that. Thanks for the color. I couldn't get my phone off mute. All right, Ron, so you'd also talked about the adjacent market opportunities and clearly a lot of benefits there.

Ron Glibbery: Yeah.

David Williams: But is-

Speaker #3: But is there a way to maybe quantify the number of customers that you're in active conversations with, and maybe just provide a little color on the different segments where you think that could move pretty quickly into an order or potentially production?

Ron Glibbery: Yeah.

David Williams: Is there a way to maybe quantify the number of customers that you're in active conversations with and maybe just provide a little color on the different segments where you think that you could move pretty quickly into an order or potentially production?

Ron Glibbery: You know, the number of customers there, you know, we're really looking at maybe in the order of 3 to 5. The difference is they're really more household names, I would say. You know, again, confidentiality prevents me from kind of explicitly saying, but you know, like, certainly Fortune 100 companies, if you will. You know, I guess the feedback to us is the sooner, the better. I mean, you know, take the robotaxi situation, for example. Again, you know, these devices or these vehicles collect information all day long. They get back, they have to recharge. They've got one hour to upload a terabit of data and up, you know, go down to the data center, process it, right, and then send new algorithms back up to the vehicle.

Speaker #4: So the number of customers there, we're really looking at maybe in the order of three to five. But the difference is, they're really more household names, I would say.

Speaker #4: Again, confidentiality prevents me from kind of explicitly saying, but certainly Fortune 100 companies, if you will. I guess the feedback to us is: the sooner, the better.

Speaker #4: I mean, take the Robotaxi situation, for example. Again, these devices or these vehicles collect information all day long. They get back, they have to recharge.

Speaker #4: They've got one hour to download a terabit of data, and then go down to the data center, process it, and then send new algorithms back up to the vehicle.

Speaker #4: Now, if it was just one vehicle, sure, that's one thing. But it's 100 vehicles, for example. And the real challenge is—and what we have to keep in mind—is it's really the aggregate throughput here, not just one vehicle, but it's hundreds of vehicles.

Ron Glibbery: Now, if it was just one vehicle, sure. That's, you know, one thing, but it's 100 vehicles, for example. The real challenge is, and what we have to keep in mind is it's really the aggregate throughput here, not just, you know, one vehicle, but it's hundreds of vehicles. You know, to answer your question, this customer would take our existing silicon. I could see us being in production at the end of this year, frankly. You know, we could even see ourselves going into next generation chips with this customer because basically the feedback from the customer is the demand is limitless. Yeah.

Speaker #4: To answer your question, this customer would take our existing silicon. I could see us being in production at the end of this year, frankly.

Speaker #4: But we could even see ourselves going into next-generation chips with this customer, because basically, the feedback from the customer is the demand is limitless.

Speaker #4: So yeah, so we're really hoping that we can get these devices into production later this year, early '27. Now, the other thing I will mention is I really want to shout out to this customer that we did a press release with called BuyerWorks.

Ron Glibbery: We're, you know, really hoping that we can get, you know, these devices into production, you know, later this year or in 2027. Now, the other thing I'll mention is, I really want to shout out to this customer that we did a press release with called BorrowWorks. They've got a very sophisticated software solution that we've been working on for several years, frankly, like probably 3, 4 years. And, you know, they're a key partner for us. I think what we've done a very good job of is those partnerships where we don't have to reinvent or we don't have to invent the entire system. We work with smart, you know, partners to facilitate some of these opportunities.

Speaker #4: They've got a very, very sophisticated software solution that we've been working on for several years, frankly—probably three, four years. And they're a key partner for us.

Speaker #4: And I think what we've done a very good job of is those partnerships. Well, we don't have to reinvent or we don't have to invent the entire system.

Speaker #4: And we work with smart partners to facilitate some of these opportunities. But that would be a really good example of how I would summarize the demand for very high data rate systems and, B, doing that in a congested environment.

Ron Glibbery: you know, that would be a real good example of, you know, how I would summarize, A, you know, the demand for like, you know, very high data rate systems and, B, doing that in a congested environment. you know, our existing silicon addresses that, and I could see us get into production, you know, at the end of this year and into 2027. I hope that answers your question.

Speaker #4: And so our existing silicon addressed that. And I could see us get into production at the end of this year and into '27. I hope that answers your question.

Speaker #3: Yeah, it does. Thanks again. And let me just ask one more question if you don't mind.

David Williams: Yeah, it does. Thanks again. Let me just ask one more question, if you don't mind.

Speaker #4: Sure. Sure, of course.

Ron Glibbery: Sure. Sure. Of course.

Speaker #3: And just kind of given the state of current affairs and the current conflict, just curious if you're seeing inbound interest there, and it seems like maybe the technologies that we're using today could do some advancing, and it seems like you might have the solution that could be very beneficial, especially on the drone application.

David Williams: Just kind of given the state of current affairs and the current conflict, just curious if you're seeing inbound interest there, and it seems like maybe the technologies that we're using today could use some advancing. It seems like you might have the solution that could be very beneficial for, especially on the drone application. Just curious.

Speaker #3: So, just curious if you're seeing that. And then maybe talk about your go-to-market strategy in that market—how you're going to the market, or if you're waiting for those to come to you. Just kind of, maybe, that development there.

Ron Glibbery: Yeah.

David Williams: If you're seeing that, and then maybe talk about your go-to-market strategy in that market, how you're going to the market or if you're waiting for those to come to you, just kind of maybe that development there. Thanks.

Speaker #3: Thanks.

Ron Glibbery: You know, I have to say when we did the last press release last week with our drone partner, it was a company in Israel called InTACT. InTACT, you know, again, you know, value-added partner who's developed, you know, in conjunction with us, this friend or foe identification system. You know, frankly, you know, one of the main evolutions we've seen in warfare over the last two years is this idea of drone swarms, and the sky is getting cluttered with drones. Basically, you know, militaries need to identify friend or foe, and they don't want to be shooting their own drones out of the sky. Alternatively, they don't want drones shooting their own people on the ground. We're seeing that that's the real traction.

Speaker #4: I have to say, I was very pleased when we did the last press release last week with our drone partner. It was a company in Israel called Intact.

Speaker #4: And Intact, again, value-added partner who's developed in conjunction with us this friend-or-foe identification system. And, frankly, one of the main— I guess, one of the main evolutions we've seen in warfare over the last two years is this idea of drone swarms.

Speaker #4: And the sky's getting cluttered with drones. And so basically, militaries need to identify friend or foe. And they don't want to be shooting their own drones out of the sky.

Speaker #4: Alternatively, they don't want drones shooting their own people on the ground. So we're seeing that's the real traction. I mean, this really started out as and it still is an infantry solution.

Ron Glibbery: I mean, this really started out as, you know, and it still is, an InTACT solution. You know, clearly the drone, the interest is kind of exploded here. Frankly, you know, again, without getting into detail, we definitely are seeing a kind of a explosion, no pun intended there, of interest in terms of, that solution for the, you know, friend or foe identification, which is a classic problem, frankly. Again, it looks like we've come a long way in solving that.

Speaker #4: But clearly, the drone interest is kind of exploded here. And frankly, again, without getting into detail, we definitely are seeing kind of an explosion no pun intended there of interest in terms of that solution for friend or foe identification, which is a classic problem, frankly.

Speaker #4: But again, it looks like we've come a long way in solving that.

Speaker #3: Thanks, Anna, best of luck.

David Williams: Thanks again, and best of luck.

Speaker #4: No, my pleasure.

Ron Glibbery: No, my pleasure.

Speaker #1: Thank you. And once again, it will be Star One if you wish to ask a question today as the next question will be from Kevin Lu from Klu and Company.

Operator: Thank you. Once again, it will be star one if you wish to ask a question today. The next question will be from Kevin Liu, from KLU & Company. Kevin, your line is live.

Speaker #1: Kevin, your line is live.

Speaker #5: Hi. Good afternoon, guys. Maybe just starting with your just wanted to start with your SWA business. You guys kind of talked about the resurgence you saw in sales to customers last year.

Kevin Liu: Hi, good afternoon, guys.

Ron Glibbery: Hi, Kevin.

David Brown: Just wanted to start with your FWA business. You guys kind of talked about, you know, the resurgence you saw in sales to customers last year. I'm curious, as you talk about, you know, where do you think inventory levels are with those customers, and when would you expect to see some more kind of growth or return of orders from those folks?

Kevin Liu: Just wanted to start with your FWA business. You guys kind of talked about, you know, the resurgence you saw in sales to customers last year. I'm curious, as you talk about, you know, where do you think inventory levels are with those customers, and when would you expect to see some more kind of growth or return of orders from those folks?

Speaker #5: I'm curious as you talk to them, where do you think inventory levels are with those customers? And when would you expect to see some more kind of growth or return of orders from those folks?

Speaker #4: Frankly speaking, we obviously—well, we're seeing, we were seeing, we were hoping for this shipment, this large shipment in Q1 with MicroTik. But really, for many of our customers, we really are expecting to see those orders get replenished in Q3 and Q4.

Kevin Liu: You know, frankly speaking, you know, obviously we were hoping for this large shipment in Q1 with MikroTik. Really we're you know, for many of our customers, we really are expecting to see those orders get replenished in Q3 and Q4, so we're standing by for that. I would say, you know, many of our customers, that's kind of the timing that we're looking for. Well, obviously it's almost Q2 now, you know, we really expect to see those orders come through in Q2 and Q3 and the rest of this year.

Ron Glibbery: You know, frankly speaking, you know, obviously we were hoping for this large shipment in Q1 with MikroTik. Really we're you know, for many of our customers, we really are expecting to see those orders get replenished in Q3 and Q4, so we're standing by for that. I would say, you know, many of our customers, that's kind of the timing that we're looking for. Well, obviously it's almost Q2 now, you know, we really expect to see those orders come through in Q2 and Q3 and the rest of this year.

Speaker #4: So, we're standing by for that. So, I would say many of our customers—that's kind of the timing that we're looking for. Well, obviously, it's almost Q2 now.

Speaker #4: So, we really expect to see those orders come through in Q2 and Q3, and the rest of this year.

Speaker #5: Got it. And just with respect to that large order you referenced, I'm curious if kind of the delay and timing from Q1 to Q2, does that impact kind of order patterns for the remainder of this year?

David Brown: Got it. Just with respect to that large order you referenced, I'm curious if kind of the delay in timing from Q1 to Q2 does that impact kind of order patterns for the remainder of this year? Was this a fairly significant order, and then so would have kind of covered the full year anyway?

Kevin Liu: Got it. Just with respect to that large order you referenced, I'm curious if kind of the delay in timing from Q1 to Q2 does that impact kind of order patterns for the remainder of this year? Was this a fairly significant order, and then so would have kind of covered the full year anyway?

Speaker #5: Or was this a fairly significant order? And so, would it kind of cover the full year anyway?

Kevin Liu: You know, it'll just. I think it'll just, you know, get into queue and kind of make an orderly push with our orders for the rest of the year. I think it will have an impact, but, you know, it really, unfortunately, we're only looking at a couple of weeks, so it's not gonna be an extremely material impact. You know, we're looking at probably 2 to 3 weeks in terms of our kind of order pipeline throughout the year.

Ron Glibbery: You know, it'll just. I think it'll just, you know, get into queue and kind of make an orderly push with our orders for the rest of the year. I think it will have an impact, but, you know, it really, unfortunately, we're only looking at a couple of weeks, so it's not gonna be an extremely material impact. You know, we're looking at probably 2 to 3 weeks in terms of our kind of order pipeline throughout the year.

Speaker #4: It'll just I think it'll just get into queue and kind of make an orderly push with our orders for the rest of the year.

Speaker #4: So I think it will have an impact. But really, unfortunately, we're only looking at a couple of weeks. So it's not going to be extremely material impact.

Speaker #4: But we're looking at probably two to three weeks two to three weeks in terms of our in kind of our order pipeline throughout the year.

Speaker #5: Understood. And with some of these newer opportunities, you're winning particularly with folks like Intact. Just curious if there's any sort of increase in investments.

David Brown: Understood. With some of these newer opportunities, you're winning, particularly with folks like InTACT. Just curious if there's any sort of increase in investment you guys plan to make either on the R&D side or elsewhere? Just how kind of the ramp-up might affect your gross margins, as those do move to production.

Kevin Liu: Understood. With some of these newer opportunities, you're winning, particularly with folks like InTACT. Just curious if there's any sort of increase in investment you guys plan to make either on the R&D side or elsewhere? Just how kind of the ramp-up might affect your gross margins, as those do move to production.

Speaker #5: Do you guys plan to make either on the R&D side or elsewhere? And just how the ramp-up might affect your gross margins as those do move to production?

Kevin Liu: You know, we've really had a policy over the last couple of years, Kevin. I think as you know, to really just charge the customer. We don't make a lot of profit on the engineering, but you know, basically our view is, if the customer wants the solution, they better really pay for it. We're not in a position to really bet on the come. These projects, you know, I would say almost, I can't think of one where the customer really isn't making significant, you know, contribution to that, to the engineering, the R&D efforts. I really see that continuing. I just. We're just not in a position where we can really bet on the come.

Ron Glibbery: You know, we've really had a policy over the last couple of years, Kevin. I think as you know, to really just charge the customer. We don't make a lot of profit on the engineering, but you know, basically our view is, if the customer wants the solution, they better really pay for it. We're not in a position to really bet on the come. These projects, you know, I would say almost, I can't think of one where the customer really isn't making significant, you know, contribution to that, to the engineering, the R&D efforts. I really see that continuing. I just. We're just not in a position where we can really bet on the come.

Speaker #4: We've really had a policy over the last couple of years, Kevin, I think, as you know, to really just charge the customer. And we don't make a lot of profit on the engineering.

Speaker #4: But basically, our view is: if the customer wants the solution, they've got to really pay for it. We're not in a position to really bet on the come.

Speaker #4: So these projects, I would say, almost—I can't think of one where the customer really isn't making significant contribution to the engineering, the R&D effort.

Speaker #4: So I really see that continue. I just we're just not in a position where we can really bet on the come. And it's good because it also at the same time validates the market because if the customer's obviously financing that, he believes in the market himself.

Ron Glibbery: It's good because it also, at the same time, validates the market, because if the customer's obviously financing that, he believes in the market himself. That's our operating strategy right now, and we see ourselves continuing with that.

Speaker #4: So that's our operating strategy right now, and we see ourselves continuing with that.

Speaker #3: Good.

Speaker #1: Yeah, and obviously, that's funding our R&D expense and personnel costs, etc. Also, we generally come out of it with another product or another version of the product to bring to market.

James Sullivan: Obviously that's, you know, funding our R&D expense and personnel costs, et cetera. You know, also, we generally come out of it with another product or, you know, another version of a product to bring to market. If the NRE, combined with production orders, are large enough, in some cases, the customer has exclusivity, although we work with the customer on that 'cause they also wanna see us sell it elsewhere to bring down pricing, you know, rather than just to them, so. If they obviously don't hit numbers, et cetera, then we relook at that. You know, we address it.

Speaker #1: If the NRE combined with production orders are large enough, in some cases, the customer has exclusivity, although we work with the customer on that because they also want to see us sell it elsewhere, to bring down pricing, rather than just to them.

Speaker #1: So, but if they obviously don't hit numbers, etc., then we relook at that. We've addressed it. But that's the other area where we kind of work on that, and anything we can do there to expand our product portfolio and have contribution from a customer is worthwhile.

James Sullivan: You know, that's the other area where we kinda work on that and, you know, anything we can do there to expand our product portfolio and have contribution from a customer is worthwhile.

Speaker #5: Okay. Appreciate all the color there. It sounds like there's a lot of good traction in some of these new markets. So, good luck as you make your way through the year.

Kevin Liu: Okay. Appreciate all the color there. It sounds like there's a lot of good traction in some of these new markets, so good luck as you make your way through the year.

Speaker #4: Thank you.

Ron Glibbery: Thank you.

Speaker #1: Thank you. I show there are no further questions in the queue at this time. That will conclude today's conference call. Thank you for your participation.

Operator: Thank you. I show there are no further questions in the queue at this time. That will conclude today's conference call. Thank you for your participation, and you may now disconnect.

Speaker #1: And you may now disconnect.

Ron Glibbery: Thank you very much, everyone. Bye-bye.

Q4 2025 Peraso Inc Earnings Call

Request a DemoDemo

PRSO

Peraso

Earnings