Peraso (NASDAQ:PRSO) executives outlined the company’s technology focus and shifting revenue mix during a recent presentation and Q&A, emphasizing growth opportunities in defense-related “tactical communications” while maintaining its established fixed wireless access business.
Company focus: 60 GHz millimeter wave and beamforming
Peraso described itself as a fabless semiconductor company focused on wireless technology, specifically 60 gigahertz millimeter wave. Management said the company has sold about 2.5 million chips worldwide and has built an intellectual property portfolio of roughly 72 patents.
Three pillars: fixed wireless access, tactical communications, and Edge AI
Management framed Peraso’s business around three primary markets:
- Fixed Wireless Access (FWA): The company called this a mature “bread and butter” market and said it is the dominant player with over 90% market share. Peraso’s lead customer in this segment is Ubiquiti, which the company described as having brought Peraso silicon to market. Peraso noted that as a chip supplier it sells to OEMs, which then sell to service providers.
- Tactical communications (military): Executives said this is the strongest growth opportunity over the next couple of years, driven by demand for secure communications—particularly for drones. The company cited battlefield lessons from Ukraine and the Middle East, saying traditional communications can be compromised when adversaries locate and target transmitters. Peraso also highlighted that 60 GHz is globally unlicensed, which management said can be advantageous when operating in foreign countries without interfering with licensed networks.
- Edge AI: Peraso said it is seeing early traction in applications that require high-speed data interfaces for real-time or near-real-time processing, citing examples such as robotaxis and factory automation. Management described workflows where vehicles or robots generate large volumes of sensor data that must be offloaded quickly to data centers for processing and then have updated models re-uploaded.
Defense emphasis: drone communications and IFF
Peraso spent significant time on military applications, including identification of friend or foe (IFF) and “friendly fire avoidance.” Management said an initial infantry-focused concept involved sending a signal before firing and receiving a return response from friendly forces to prevent mistaken engagements. The company said it has extended that concept to drones.
Executives cited claims attributed to the Israel Defense Forces (IDF), including that friendly fire represents a meaningful portion of casualties and that misidentification is an acute problem in drone-heavy environments. The company also said it had been told that a large portion of drones shot down can be friendly, adding that it would need to verify that statistic. Peraso argued its narrow-beam, steerable links are difficult to detect and jam, positioning the technology as a potential fit for these battlefield needs.
The company referenced a March 6 press release related to drone efforts and said it expects defense-related announcements over the next couple of quarters. Management characterized the drone/IFF opportunity as particularly important over the next 12 to 18 months.
Financial overview: revenue mix shifts toward millimeter wave
On financial results, management said revenue declined from roughly $14.5 million in 2024 to about $12.2 million in 2025. Executives attributed the change to a significant shift in mix away from the company’s legacy memory business and toward millimeter wave products.
Management said that in 2024, approximately 90% of revenue came from the memory business, with about $1.4 million to $1.5 million from millimeter wave. In 2025, the company said it “flipped” to about $9.4 million of millimeter wave revenue, with the remainder from memory.
Looking ahead, executives cited “current analyst estimates” for 2026 revenue ranging from $12.7 million to over $15 million and said the company is targeting 50% growth, while noting uncertainty and limited visibility in backlog that it expects to improve in the second half of the year.
Margins, cash position, and near-term dynamics
Management said the legacy memory products carried gross margins in the “high 60%” range, while the company targets around 50% gross margin (or higher) for millimeter wave. Executives reported 2025 gross margin of 58% and fourth-quarter gross margin of 52%, saying they were pleased to be achieving targets.
On operating expenses, management said non-GAAP OpEx has been running just under $3 million per quarter. They said reaching break-even would require about $6 million of quarterly revenue at a 50% gross margin, while recent quarters have averaged about $3 million in revenue. The company also said it had pre-guided a dip in Q1 due to a shipment pushout tied to a vendor issue, moving shipments from March 31 into the first half of April.
In Q&A, management said the supply chain issue with an Asian vendor was resolved and characterized it as “one and done,” adding that the company brought on a second supplier to mitigate risk going forward.
Peraso also discussed the role of non-recurring engineering (NRE) and licensing revenue for newer applications, saying these engagements would likely start with NRE and licensing before transitioning into product sales. Management said NRE and paid licensing can offset R&D and flow more directly to the bottom line compared to product sales that carry cost of goods sold.
As of December 31, the company reported about $2.9 million in cash, $6 million in total assets, $1.5 million in liabilities, stockholders’ equity of just over $4.5 million, and no debt. Management reported approximately 10.7 million shares outstanding at December 31 and said fully diluted shares were about 19 million, reflecting warrant coverage and shares under the equity plan.
Management said fixed wireless remains part of the long-term strategy and described it as growing while requiring relatively little incremental R&D investment, calling it a “cash cow.” Executives added that diversification remains a key goal, noting the business mix has shifted and discussing the DUNE solution for dense urban networking environments as an extension of fixed wireless access.
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.
