Peraso Narrows Losses Amid Revenue Dip, Faces Going Concern Warning

TL;DR

**PRSO is burning cash and shrinking revenue, making it a risky bet despite narrower losses; avoid until they prove a path to profitability.**

AI Summary

Peraso Inc. (PRSO) reported a net loss of $1.21 million for the three months ended September 30, 2025, a significant improvement from the $2.71 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $3.51 million, substantially lower than the $9.17 million loss in the prior year period. Total net revenue decreased to $3.23 million for the quarter, down from $3.84 million in Q3 2024, primarily due to a drop in product revenue from $3.81 million to $3.06 million. However, gross profit remained stable at $1.82 million for the quarter. Operating expenses saw a substantial reduction, falling from $4.51 million in Q3 2024 to $3.01 million in Q3 2025, driven by decreases in research and development and selling, general and administrative costs. The company's cash and cash equivalents declined to $1.87 million as of September 30, 2025, from $3.34 million at December 31, 2024, and it continues to face a 'going concern' warning due to recurring losses and negative cash flows from operations, which totaled $4.56 million for the nine months ended September 30, 2025.

Why It Matters

Peraso's continued 'going concern' warning is a critical red flag for investors, indicating significant financial instability and the potential need for further dilutive capital raises. While the company has significantly reduced its net losses and operating expenses, the decline in product revenue suggests challenges in market penetration or demand for its millimeter wave wireless technology, impacting its competitive standing against larger, more established semiconductor firms. Employees may face job insecurity if further cost-cutting measures, such as headcount reductions, become necessary. Customers could be concerned about the long-term viability of a supplier with such financial uncertainty, potentially affecting future contracts and market share for PRSO.

Risk Assessment

Risk Level: high — Peraso Inc. has an accumulated deficit of approximately $180.6 million as of September 30, 2025, and incurred net losses of $3.51 million for the nine months ended September 30, 2025. The company's independent registered public accounting firm has expressed 'substantial doubt' about its ability to continue as a going concern, directly citing recurring losses and negative cash flows from operations, which were $4.56 million for the nine months ended September 30, 2025.

Analyst Insight

Investors should exercise extreme caution and consider avoiding Peraso Inc. (PRSO) given the explicit 'going concern' warning and continued cash burn. Await clear evidence of sustainable revenue growth and a definitive path to profitability, as well as successful securing of additional non-dilutive financing, before considering an investment.

Financial Highlights

debt To Equity

0.73

revenue

$3.23M

operating Margin

-36.8%

total Assets

$6.24M

total Debt

$2.64M

net Income

-$1.21M

eps

-$0.17

gross Margin

56.2%

cash Position

$1.87M

revenue Growth

-16.3%

Revenue Breakdown

Key Numbers

• $1.21M — Net Loss (Q3 2025) (Decreased from $2.71M in Q3 2024)
• $3.51M — Net Loss (YTD Sep 2025) (Decreased from $9.17M in YTD Sep 2024)
• $3.23M — Total Net Revenue (Q3 2025) (Decreased from $3.84M in Q3 2024)
• $3.06M — Product Revenue (Q3 2025) (Decreased from $3.81M in Q3 2024)
• $1.82M — Gross Profit (Q3 2025) (Stable compared to $1.81M in Q3 2024)
• $3.01M — Total Operating Expenses (Q3 2025) (Decreased from $4.51M in Q3 2024)
• $1.87M — Cash and Cash Equivalents (Sep 30, 2025) (Decreased from $3.34M at Dec 31, 2024)
• $180.6M — Accumulated Deficit (Sep 30, 2025) (Indicates significant historical losses)
• $4.56M — Net Cash Used in Operating Activities (YTD Sep 2025) (Increased from $3.89M in YTD Sep 2024)
• 8,924,662 — Common Stock Shares Outstanding (Nov 7, 2025) (Reflects potential dilution from prior offerings)

Key Players & Entities

• Peraso Inc. (company) — registrant
• MoSys, Inc. (company) — former name of Peraso Inc.
• 2864552 Ontario Inc. (company) — subsidiary of Peraso Inc.
• 2864555 Ontario Inc. (company) — subsidiary of Peraso Inc.
• Peraso Technologies Inc. (company) — acquired company
• Nasdaq Stock Market (regulator) — exchange where PRSO trades
• Securities and Exchange Commission (regulator) — filing oversight body
• Delaware (regulator) — state of incorporation
• Ontario (regulator) — province of subsidiary incorporation
• Bloomberg (company) — data provider for Level 2 securities

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company continues to operate under a 'going concern' warning due to recurring net losses and negative cash flows from operations. For the nine months ended September 30, 2025, net cash used in operating activities was $4.56 million, an increase from $3.89 million in the prior year period. This persistent financial strain raises substantial doubt about Peraso Inc.'s ability to continue as a going concern.
• Declining Cash Reserves [high — financial]: Cash and cash equivalents decreased to $1.87 million as of September 30, 2025, down from $3.34 million at December 31, 2024. This represents a significant burn rate and reduces the company's financial flexibility to fund operations and investments.
• Accumulated Deficit [high — financial]: Peraso Inc. has an accumulated deficit of $180.6 million as of September 30, 2025. This substantial historical loss indicates a long-term pattern of unprofitability, which could deter future investment and impact long-term viability.
• Revenue Decline [medium — market]: Total net revenue for Q3 2025 was $3.23 million, a decrease from $3.84 million in Q3 2024. Product revenue, the primary revenue driver, fell from $3.81 million to $3.06 million. This downward trend in revenue, particularly in its core product segment, signals potential market challenges or competitive pressures.
• High Operating Expenses Relative to Revenue [medium — operational]: Despite a reduction in operating expenses from $4.51 million in Q3 2024 to $3.01 million in Q3 2025, these expenses still represent a significant portion of revenue. The company's ability to manage and reduce these costs while growing revenue is critical for achieving profitability.
• Potential Dilution from Stock [medium — financial]: With 8,924,662 common stock shares outstanding as of November 7, 2025, and a history of offerings, there is a risk of further dilution for existing shareholders if additional equity is issued to fund operations or growth.

Industry Context

Peraso Inc. operates in the semiconductor industry, specifically focusing on high-performance wireless solutions. The market is characterized by rapid technological advancements, intense competition from established players and emerging companies, and significant R&D investment requirements. Success hinges on innovation, intellectual property, and the ability to secure design wins with major device manufacturers.

Regulatory Implications

As a publicly traded company, Peraso Inc. is subject to SEC regulations and reporting requirements, including the need to disclose material information accurately and timely. The 'going concern' disclosure itself is a significant regulatory implication, signaling potential financial distress to investors and creditors.

What Investors Should Do

1. Monitor cash burn rate closely: With cash reserves declining and negative operating cash flow, investors should track the company's ability to manage its cash runway and secure future funding.
2. Evaluate revenue diversification and growth drivers: The decline in product revenue is a concern. Investors should look for signs of new product adoption, market share gains, or successful diversification into other revenue streams.
3. Assess cost management effectiveness: While operating expenses have been reduced, their ratio to revenue remains high. Investors should assess the sustainability of these cost reductions and the company's ability to achieve operating leverage.
4. Scrutinize future funding plans: Given the going concern warning, investors should pay close attention to any announcements regarding equity or debt financing, as these could lead to dilution or increased financial risk.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a net loss of $1.21 million on $3.23 million in revenue, with operating expenses reduced significantly.
• 2025-09-30: Balance Sheet Date — Cash and cash equivalents stood at $1.87 million, and accumulated deficit reached $180.6 million.
• 2024-09-30: End of Q3 2024 — Reported a net loss of $2.71 million on $3.84 million in revenue, with higher operating expenses.
• 2024-12-31: End of Fiscal Year 2024 — Cash and cash equivalents were $3.34 million, indicating a substantial decrease by Q3 2025.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net profits. It represents a negative balance in retained earnings. (Indicates Peraso Inc.'s long-standing history of unprofitability, with a significant deficit of $180.6 million as of September 30, 2025.)

Going concern

An accounting assumption that a company will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (Peraso Inc. faces a 'going concern' warning due to recurring losses and negative cash flows, highlighting significant financial instability.)

Net revenue

The total revenue of a company after deducting returns, allowances, and discounts. For Peraso, this includes product and royalty/other revenue. (Total net revenue decreased to $3.23 million in Q3 2025 from $3.84 million in Q3 2024, driven by a decline in product revenue.)

Gross profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Gross profit remained stable at $1.82 million for Q3 2025, indicating consistent cost management in the cost of goods sold despite lower revenue.)

Operating expenses

The expenses a business incurs during normal business operations, excluding cost of goods sold. Includes R&D, SG&A, etc. (Significantly reduced from $4.51 million in Q3 2024 to $3.01 million in Q3 2025, a key factor in reducing the net loss.)

Cash and cash equivalents

The most liquid assets a company has, including physical currency, checking account balances, and short-term, highly liquid investments. (Decreased to $1.87 million as of September 30, 2025, from $3.34 million at the end of 2024, indicating a substantial cash burn.)

Year-Over-Year Comparison

Compared to the prior year period, Peraso Inc. has shown a significant reduction in its net loss for both the third quarter ($1.21M vs $2.71M) and the year-to-date period ($3.51M vs $9.17M). This improvement is largely attributable to a substantial decrease in operating expenses, particularly in R&D and SG&A. However, total net revenue has declined, with product revenue falling from $3.81M to $3.06M in Q3, and cash reserves have diminished from $3.34M at year-end 2024 to $1.87M. The company continues to face a going concern warning, with negative operating cash flow increasing year-to-date.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share PRSO The Nasdaq Stock Market,

Filing Documents

• ea0264282-10q_peraso.htm (10-Q) — 929KB
• ea026428201ex31-1_peraso.htm (EX-31.1) — 11KB
• ea026428201ex31-2_peraso.htm (EX-31.2) — 10KB
• ea026428201ex32-1_peraso.htm (EX-32.1) — 5KB
• 0001213900-25-108587.txt ( ) — 6010KB
• prso-20250930.xsd (EX-101.SCH) — 59KB
• prso-20250930_cal.xml (EX-101.CAL) — 36KB
• prso-20250930_def.xml (EX-101.DEF) — 279KB
• prso-20250930_lab.xml (EX-101.LAB) — 528KB
• prso-20250930_pre.xml (EX-101.PRE) — 298KB
• ea0264282-10q_peraso_htm.xml (XML) — 806KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited): 1 Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 4.

Controls and Procedures

Controls and Procedures 29

— OTHER INFORMATION

PART II — OTHER INFORMATION 30 Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 5. Other Information 33 Item 6. Exhibits 34

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PERASO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) September 30, December 31, 2025 2024 (unaudited) ASSETS Current assets Cash and cash equivalents $ 1,865 $ 3,344 Accounts receivable, net 1,783 682 Inventories, net 1,574 2,079 Prepaid expenses and other 350 188 Total current assets 5,572 6,293 Property and equipment, net 399 512 Right-of-use lease assets 161 267 Other 106 134 Total assets $ 6,238 $ 7,206 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 1,465 $ 1,036 Accrued expenses and other 901 1,987 Deferred revenue 14 341 Short-term lease liabilities 92 139 Total current liabilities 2,472 3,503 Long-term lease liabilities 100 182 Warrant liabilities 65 55 Total liabilities 2,637 3,740 Commitments and contingencies (Note 5) Stockholders' equity Preferred stock, $ 0.01 par value; 20,000 shares authorized; none issued and outstanding — — Series A, special voting preferred stock, $ 0.01 par value; one share authorized, issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 120,000 shares authorized; 7,580 and 4,474 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 5 3 Exchangeable shares, no par value; unlimited shares authorized; 57 and 60 shares outstanding at September 30, 2025 and December 31, 2024, respectively — — Issuable shares, 837 and 917 shares at September 30, 2025 and December 31, 2024, respectively 988 1,193 Additional paid-in capital 183,238 179,390 Accumulated deficit ( 180,630 ) ( 177,120 ) Total stockholders' equity 3,601 3,466 Total liabilities and stockholders' equity $ 6,238 $ 7,206 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 PERASO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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