Peraso Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Peraso Inc.’s performance. My goal is to break down their complex financial filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Peraso is a "fabless" semiconductor company. They design high-tech wireless chips but hire outside factories to build them. They specialize in mmWave technology—think of it as an "invisible fiber optic cable" sent through the air. It powers high-speed internet in rural areas, military communications, and high-end video streaming.

They have exited the memory chip business to focus entirely on wireless tech, specifically the 60 GHz (V-band) spectrum.

2. Financial Performance

Peraso is in a transition phase. They finished winding down their old memory chip business, which brought in $0.5 million in 2025. They expect no further revenue from this segment.

Total revenue for 2024 was $8.3 million, down from $10.8 million in 2023. This drop reflects their move away from legacy memory products. A key takeaway for investors is that revenue is "concentrated." In 2024, five customers provided 76% of their total revenue, with one client, UI Limited, making up 29%.

3. Major Wins and Opportunities

• The "DUNE" Advantage: They launched a protocol called DUNE. It helps their chips work better in crowded cities where Wi-Fi signals usually clash. This software keeps connections stable in busy environments.
• The 5G Bet: They are moving into the "licensed" 5G infrastructure market. They offer a "dual-band" solution they claim is more efficient and cheaper than what giants like Qualcomm offer for fixed wireless internet.
• Patents as a Moat: They hold 84 patents total. They own nine "essential" patents for the 802.11ay wireless standard. This means companies building products to that standard may need to license Peraso’s tech, creating a potential royalty stream.

4. Financial Health

The company is lean, with only 42 employees. Because they don't own factories, they avoid the massive costs of building and maintaining plants. However, they spend heavily on research and development—$7.4 million in 2024. They must build and test chips in the real world to ensure they work, which is expensive. As of late 2024, they held $3.2 million in cash, meaning they must manage their spending carefully to keep operations running.

5. Key Risks

• Customer Concentration: They rely on a few big players. If one partner switches suppliers, revenue will drop.
• Long Sales Cycles: It takes 12 to 36 months to go from winning a contract to actual sales. Revenue growth can be slow and uneven.
• The "Licensed" Gamble: They are entering a competitive 5G arena. They will face giants like Samsung and MediaTek, who have much larger budgets and deeper industry relationships.

6. Competitive Positioning

Peraso succeeds by being a specialist. While giants like Qualcomm try to do everything, Peraso optimizes chips specifically for fixed wireless internet and high-bandwidth data. They also include unique features like built-in USB support. This makes their chips a great "wireless cable" for VR headsets and webcams, allowing for near-instant video streaming.

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Investor Takeaway: Peraso is a high-risk, high-reward play. They are betting that their specialized mmWave technology and patent portfolio will allow them to carve out a niche in the 5G market. Before investing, consider if you are comfortable with their reliance on a small group of customers and the long wait times required to turn new contracts into steady revenue.