PRSO · Peraso Inc.

Revenue declined 75.1% year-over-year to $963 thousand in Q1 FY2026, primarily due to reduced mmWave product shipments. This drop reflected the delayed shipment of a sizable order caused by material availability constraints from a key supplier, compounded by subdued near-term demand from existing fixed wireless access customers. Peraso's business remains heavily exposed to these mmWave ICs and modules, where supply chain disruptions and customer hesitancy directly erode topline momentum. Investors should watch for supplier diversification efforts and signs of demand stabilization, as prolonged weakness in this core segment jeopardizes the path to sustainable scale.

Gross profit fell 77.9% to $592 thousand, yet gross margin improved to 61.5% from prior levels. This resilience stems from maintained pricing power on the reduced shipment volumes, demonstrating product value even amid lower throughput. The topline contraction overwhelmed gross profit generation, setting the stage for margin compression further down the income statement.

Operating loss expanded dramatically to -$2.5 million from -$514 thousand YoY, yielding an operating margin of -257.9%. With revenue base sharply diminished, fixed and semi-variable cost structures amplified the downturn, underscoring the need to align expenses with volatile demand patterns. Net loss reached -$2.5 million, or -$0.22 diluted EPS, versus -$0.10 per share last year—a 120% YoY worsening that heightens dilution risks for shareholders.

However, the company acknowledges it must substantially increase revenues beyond historical levels to achieve sustainable operating profit and cash flows, avoiding recurrent capital raises. Ongoing losses are expected as Peraso secures additional customers and invests in product commercialization. This going-concern dynamic emphasizes urgency for revenue ramp-up, with supply chain reliability and customer expansion as pivotal levers for restoring trajectory.