Peraso (NASDAQ:PRSO) reported lower first-quarter revenue as a delayed shipment and weaker fixed wireless access demand weighed on results, while management highlighted continued customer activity in tactical communications and Edge AI applications for its 60 GHz millimeter-wave technology.
Chief Executive Ron Glibbery said first-quarter results were “generally in line” with the company’s revised expectations, with revenue hurt by the anticipated delay of a sizable order that represented a significant portion of backlog. The delay was tied to material availability from an Asia-based supplier. Glibbery said the company shipped the order in the current quarter and has begun steps to reduce reliance on any single supplier.
Revenue Falls as Product Shipments Decline
Chief Financial Officer Jim Sullivan said total net revenue for the first quarter of 2026 was $1.0 million, down from $2.9 million in the prior quarter and $3.9 million in the first quarter of 2025. Product revenue was $0.7 million, compared with $2.8 million in the fourth quarter and $3.8 million a year earlier.
The decline was primarily due to lower shipments of millimeter-wave products. On a year-over-year basis, results also reflected a significant reduction in shipments of legacy memory integrated circuits due to a previously announced product end-of-life.
Revenue from millimeter-wave products was $0.6 million in the first quarter, compared with $2.4 million in the prior quarter and $1.5 million in the year-earlier period.
Gross margin was 61.5%, up from 52.2% in the prior quarter but down from 69.3% a year earlier. Sullivan said the sequential improvement was primarily due to a higher mix of non-recurring engineering products, while the year-over-year decline reflected reduced legacy memory IC sales.
GAAP operating expense was $3.1 million, compared with $2.8 million in the prior quarter and $3.2 million a year earlier. Non-GAAP operating expense, excluding stock-based compensation, was $2.9 million. Sullivan said recent non-GAAP operating expenses of about $3 million per quarter continue to reflect prior cost reductions and ongoing cost controls.
GAAP net loss was $2.5 million, or $0.22 per share, compared with a net loss of $1.2 million, or $0.13 per share, in the prior quarter and a net loss of $0.5 million, or $0.08 per share, a year earlier. Non-GAAP net loss was $2.3 million, or $0.20 per share. Adjusted EBITDA was negative $2.3 million, compared with negative $1.1 million in the prior quarter and negative $0.3 million in the first quarter of 2025.
Fixed Wireless Access Remains Core Market
Glibbery said fixed wireless access remains Peraso’s largest and most mature end market for 60 GHz products. However, he said near-term demand and purchase order activity from existing customers remain subdued due to current market dynamics, including shortages and higher pricing for memory chips.
In response to an analyst question, Glibbery said customer feedback consistently points to memory availability and pricing as a key pressure. He also noted that some newer customers have experienced ramp-up challenges, including one customer that had difficulty sourcing product casing from a supplier, which he said has since been resolved.
Peraso continues to support proof-of-concept evaluations with wireless internet service providers worldwide. Glibbery said the company believes those evaluations could translate into additional production orders for existing fixed wireless customers.
Management also pointed to a March customer win with MikroTik, which launched its next-generation 60 GHz nRAY point-to-point product at Mobile World Congress using Peraso technology. Glibbery said MikroTik’s reach among wireless internet service providers could lead to incremental fixed wireless deployments.
Tactical Communications Seen as Growth Opportunity
Glibbery said interest in Peraso’s 60 GHz technology for tactical communications continues to build and could become a significant contributor to future growth, although he said the timing and size of orders remain uncertain.
He highlighted characteristics of the company’s millimeter-wave technology, including narrow-beam directional links, dynamic beam steering, oxygen attenuation and use of unlicensed spectrum. Glibbery said those attributes support low probability of detection, low probability of interception and anti-jamming performance for mission-critical applications.
Peraso announced in March that InTACT had become a defense contractor customer. Glibbery said the relationship began in 2024 and led to a jointly developed system solution for enhanced situational awareness on the battlefield. That deployable solution is scheduled for additional field trials around August.
Peraso also disclosed that InTACT selected its 60 GHz millimeter-wave technology for a next-generation drone Identification Friend or Foe system. Glibbery said Peraso delivered initial limited production shipments of optimized modules in mid-April to support InTACT’s next-generation drone platform.
During the Q&A session, Glibbery said Peraso expects to see volume later in the third and fourth quarters related to field trials, with non-recurring engineering activity later this year and “real production” in the first half of 2027. He said the military and defense communications market could become “at least as big” and “probably much larger” than fixed wireless access, though he framed those comments as the company’s view of the opportunity.
Edge AI and Adjacent Markets in Focus
Peraso is also pursuing opportunities outside fixed wireless access, particularly where Edge AI applications require high-bandwidth wireless connectivity. Glibbery cited areas such as last-mile delivery, autonomous vehicles and drones, including the company’s previously announced collaboration with Virewirx on the VX60 platform for robotaxis.
Glibbery said fleets of autonomous vehicles, drone swarms or factory floors with many robots can create challenges for traditional wireless technologies because of interference and capacity constraints. He said 60 GHz links can provide directional, narrow-beam connectivity that supports multiple simultaneous multi-gigabit connections with low latency.
Peraso is working on technology evaluations with multiple prospective customers in Edge AI and connected autonomous device applications. Glibbery said some first-quarter non-recurring engineering revenue was tied to optimizing Peraso’s system for Edge AI, while tactical communications and Edge AI are the two main markets contributing to non-recurring engineering activity.
Second-Quarter Outlook and Balance Sheet
Peraso expects second-quarter 2026 total net revenue of approximately $1.2 million, based on shipments to date and existing backlog. Sullivan said visibility into near-term demand remains lower due to irregular customer order patterns and the impact of memory pricing and availability on certain customers.
As of March 31, Peraso had about $2.7 million in cash, compared with $2.9 million at the end of 2025. The decrease reflected operating losses and capital expenditures of $2.5 million, partially offset by $2.3 million in net proceeds from sales under the company’s at-the-market offering program during the quarter.
Sullivan said Peraso had about 14.2 million common and exchangeable shares outstanding as of the call. In response to an analyst question, he said the company was probably around 14.5 million shares outstanding after additional activity under the ATM program, with a full update to be provided in the 10-Q filing.
The company also said its previously disclosed strategic review remains ongoing with its financial adviser. Sullivan said there were no updates beyond prior disclosures regarding potential strategic alternatives, including a merger, asset sale or other transactions, as well as possible sources of additional capital.
About Peraso (NASDAQ:PRSO)
Peraso Technologies Inc is a Canadian semiconductor company specializing in the research, design and development of millimeter wave (mmWave) wireless communication solutions. The company’s core focus lies in the 60 GHz frequency band, where it engineers high-performance integrated circuits and beamforming solutions designed to deliver multi-gigabit wireless connectivity. Peraso’s technology is tailored for applications demanding high data throughput, low latency and reliable short-range wireless links.
The company’s product portfolio includes 60 GHz chipset solutions for wireless local area networking (WiGig), fixed wireless access (FWA), small-cell backhaul and point-to-point communication links.
