Peraso Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenue for Q3 2026 was $0.3 million, down from $1.3 million in Q2 2026 and $3.2 million in Q3 2025.
• Product revenue was $0.3 million in Q3 2026, compared to $1.2 million in Q2 2026 and $3.1 million in Q3 2025; the decline was attributed to reduced mmWave product shipments to fixed wireless access customers.
• Gross margin was 78.5% in Q3 2026, an increase from 63.7% in Q2 2026 and 56.2% in Q3 2025, driven by a favorable product mix and a one-time $55,000 inventory accrual reversal.
• Total operating expenses on a GAAP basis were $2.9 million in Q3 2026, down from $3.1 million in Q2 2026 and $3.0 million in Q3 2025.
• Non-GAAP operating expenses were $2.7 million in Q3 2026, down from $2.9 million in both Q2 2026 and Q3 2025.
• GAAP net loss was $2.7 million ($0.18 per share) in Q3 2026, compared to $2.2 million ($0.16 per share) in Q2 2026 and $1.2 million ($0.17 per share) in Q3 2025.
• Non-GAAP net loss was $2.5 million ($0.16 per share) in Q3 2026, compared to $2.1 million ($0.15 per share) in Q2 2026 and $1.1 million ($0.15 per share) in Q3 2025.
• Adjusted EBITDA was negative $2.4 million in Q3 2026, compared to negative $2.0 million in Q2 2026 and negative $1.0 million in Q3 2025.
• Cash and cash equivalents were $630,000 as of September 30, 2026, down from $2,886,000 as of December 31, 2025.
• Deferred revenue increased to $62,000 as of September 30, 2026, from $8,000 as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to return to revenue growth beginning in the fourth quarter 2026.
• Early signs of renewed customer demand were observed in the fourth quarter.
• The company's focus remains on converting customer engagements and design wins into production orders to drive top-line growth.

Business Segments and Product Lines:

• Introduced the PRM2145 jam-resistant communications module, designed for UAV and defense applications.
• Demonstrated high-speed 60 GHz connectivity for humanoid robot applications.
• Technology is being showcased for defense, tactical, UAV, and autonomous Edge AI applications, highlighting stealthy, anti-jamming, and high-capacity characteristics.
• Received a production order exceeding $2 million in October 2026 for a 60 GHz fixed wireless access deployment, the largest FWA order in the last six quarters.

Market and Competitive Landscape:

• The company operates in the high-performance 60 GHz wireless technology market, serving fixed wireless access, drone, defense, and tactical communications sectors.
• Management noted headwinds from irregular order patterns among fixed wireless access customers in the third quarter.

Risks and Challenges:

• Risks include the impact of Nant Capital, LLC's significant ownership position and board designation rights.
• Challenges involve the ability to raise additional capital and regain compliance with Nasdaq continued listing requirements.
• Potential delays in customer orders and product shipments due to supply chain disruptions.
• Risks related to the performance characteristics of technology in actual field conditions versus testing.
• Exposure to changes in defense spending, government budget constraints, and geopolitical developments.
• Risks associated with U.S. export control laws (EAR/ITAR) and potential market limitations.
• Possibility of customer orders being delayed, rescheduled, or cancelled.
• Risks regarding the conversion of engagements and demonstrations into design wins and production revenue.
• Potential adverse impacts from pandemics, wars, tariffs, trade restrictions, and inflation on the supply chain and demand.
• Risks related to customer concentrations, lengthy billing cycles, and lengthy sales cycles.

Management Commentary and Tone:

• CEO Ron Glibbery acknowledged third-quarter headwinds from irregular customer order patterns but expressed optimism regarding early signs of renewed demand in Q4.
• Management highlighted the strategic progress in advancing initiatives for defense and UAV applications.
• The tone indicates a focus on stabilizing the business through design wins and production orders following a period of reduced revenue.

Other Key Points:

• Completed a private placement with Nant Capital, LLC, generating gross proceeds of approximately $10 million to strengthen the financial position and support working capital.
• The board of directors concluded its previously disclosed review of strategic alternatives.
• The company will host a conference call and webcast on November 12, 2026, at 2:00 p.m. Pacific Time.