Peraso Inc. (PRSO) 10-K Summary: Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
Company: Peraso Inc. (formerly MoSys, Inc.)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Model: Fabless semiconductor company focused on millimeter-wave (mmWave) wireless technology (24 GHz to 300 GHz) for fixed wireless access (FWA), military, and consumer applications. The company also provides non-recurring engineering (NRE) services and IP licensing.
Key Transition: The company completed the end-of-life (EOL) process for its legacy memory IC product line in March 2025, with only residual inventory sales occurring thereafter. Strategic focus is now entirely on mmWave products.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Net Revenue | $12.2 million | $14.6 million |
| Gross Profit | $7.1 million | $7.5 million |
| Gross Margin | 58% | 52% |
| Net Loss | $(4.8) million | $(10.7) million |
| Cash and Cash Equivalents (Year-End) | $2.9 million | $3.3 million |
| Accumulated Deficit | $(181.9) million | $(177.1) million |
| Operating Cash Flow | $(5.6) million | $(4.6) million |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 16% year-over-year, driven primarily by a 79% drop in Memory IC revenue ($2.7M in 2025 vs. $12.9M in 2024) as the product line reached EOL. This was partially offset by a 2,229% increase in mmWave IC revenue ($6.7M vs. $0.3M) and a 128% increase in mmWave module revenue.
- Improved Margins: Gross margin expanded to 58% from 52%. This improvement was largely due to the absence of $2.3 million in amortization of intangible assets (fully amortized in 2024) and a reduction in inventory write-downs from $0.4 million to $36,000.
- Expense Reduction: Operating expenses decreased significantly. R&D expenses fell 32% to $6.2 million, and SG&A expenses fell 33% to $5.8 million, driven by workforce reductions, lease expirations, and the elimination of software license obligations.
- Customer Concentration Shift: In 2024, two customers accounted for 86% of revenue. In 2025, revenue was more diversified, with the top five customers accounting for approximately 80% of total revenue.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern Warning: Management and the independent auditor have concluded there is substantial doubt regarding the company's ability to continue as a going concern for at least 12 months beyond the filing date. The company expects to incur operating losses in 2026 and requires additional capital to sustain operations.
- Liquidity: With $2.9 million in cash, management estimates resources will last into the third quarter of 2026. The company is actively seeking additional financing through debt or equity, which may result in dilution.
- Strategic Alternatives: The company is evaluating a non-binding acquisition proposal from Mobix Labs, Inc. Discussions are ongoing regarding a potential transaction, but no definitive agreement has been reached.
- Outlook: Management expects mmWave product sales to increase in volume and revenue in 2026 as existing customers ramp orders and new customers commence production. No meaningful revenue is expected from the legacy memory product line post-2025.
- Risks: Key risks include failure to raise capital, loss of key customers (high concentration), supply chain disruptions, and the cyclical nature of the semiconductor industry.
Investor Verification Checklist
- Cash Runway: Verify the timeline for cash depletion and the status of ongoing fundraising efforts (ATM program, warrant inducements, or new equity/debt offerings).
- Strategic Transaction: Monitor updates on the Mobix Labs proposal and the likelihood of a definitive agreement or hostile takeover.
- mmWave Traction: Confirm the conversion of design wins into volume shipments for mmWave products to offset the loss of memory revenue.
- Customer Concentration: Assess the stability of the top five customers, which collectively represent 80% of revenue.
- Warrant Liability: Review the fair value adjustments of liability-classified warrants, which can cause volatility in reported net income.