Peraso Q1 2026 Earnings Report

Peraso EPS Results

• Actual EPS: -$0.20
• Consensus EPS: -$0.18
• Beat/Miss: Missed by -$0.02
• One Year Ago EPS: N/A

Peraso Revenue Results

• Actual Revenue: $0.96 million
• Expected Revenue: $1.15 million
• Beat/Miss: Missed by -$187.00 thousand
• YoY Revenue Growth: N/A

Peraso Announcement Details

• Quarter: Q1 2026
• Date: 5/11/2026
• Time: After Market Closes
• Conference Call Date: Monday, May 11, 2026
• Conference Call Time: 4:30PM ET

Peraso (NASDAQ:PRSO) 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. These chipsets integrate radio, digital and beamforming functions to optimize signal strength and range, enabling OEMs and system integrators to deploy robust wireless systems for consumer electronics, enterprise networking and industrial IoT deployments. Peraso also offers reference designs and development kits to accelerate customer product development and time-to-market.

Founded in 2012 and headquartered in Vancouver, British Columbia, Peraso serves a global customer base across North America, Europe and Asia. The company’s engineering team brings together expertise in RF circuit design, digital signal processing and antenna array techniques. Peraso maintains strategic partnerships with device manufacturers and system integrators to advance the adoption of mmWave technology in next-generation wireless networks and high-speed data applications.

Peraso Q1 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Total net revenue fell to $1.0M in Q1 from $2.9M last quarter and $3.9M a year ago, with GAAP net loss of $2.5M (loss of $0.22/share) and Q2 revenue guided to about $1.2M.
• Negative Sentiment: Cash on hand was approximately $2.7M at quarter end, adjusted EBITDA was negative $2.3M, and the company is actively exploring strategic alternatives and additional capital, implying potential dilution or transaction risk.
• Positive Sentiment: Peraso reported growing traction in tactical communications, naming defense contractor InTACT, shipping initial limited production drone IFF modules in April and planning field trials in August with potential production ramp into 1H 2027.
• Positive Sentiment: Fixed Wireless Access remains core and the company highlighted a notable design win with MikroTik (60 GHz nRAY launch at MWC) and continued interest in its integrated DUNE platform and operator PoCs.
• Negative Sentiment: Near-term demand and visibility are subdued due to a delayed sizable shipment from an Asia supplier (now shipped) and broader memory/DRAM shortages that are constraining customers and causing lumpy order patterns, though Peraso says it is diversifying suppliers.

Presentation

[Operator]

Good afternoon, and welcome to Peraso Inc.'s first quarter 2026 conference call. At this time all participants are in a listen only mode. As a reminder, this conference call is being recorded today, Monday, May 11, 2026. I would now like to turn the call over to your host for today's conference call, Mr. Jim Sullivan. Please go ahead.

[Jim Sullivan, CFO at Peraso]

Good afternoon, and thank you for joining today's conference call to discuss Peraso's first quarter 2026 financial results. I'm Jim Sullivan, CFO of Peraso, and joining me today is Ron Glibbery, our CEO. Today, after the market closed, we issued a press release and related Form 8-K, which was filed with the Securities and Exchange Commission. The press release and Form 8-K are available on Peraso's website at www.perasoinc.com under the Investor Relations section. There's also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on the investor relations website. As a reminder, comments made during today's conference call may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

[Jim Sullivan, CFO at Peraso]

All statements other than statements of historical fact could be deemed as forward-looking. Peraso advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings, as well as any statements concerning the expected development, performance, and market share or competitive performance of our products or technologies. Any statements regarding the sufficiency of the company's capital resources and its ability to continue as a going concern. Any statements regarding customer demand forecasts and concentration risk, and any statements related to prospective future financing arrangements or capital transactions, and the evaluation or pursuit of strategic alternatives. All forward-looking statements are based on information available to Peraso on the date hereof.

[Jim Sullivan, CFO at Peraso]

These statements involve known and unknown risks, uncertainties, and other factors that may cause Peraso's actual results to differ materially from those implied by the forward-looking statements, including unexpected changes in the company's business. More detailed information about these risk factors and additional risk factors are set forth in Peraso's public filings with the SEC. Peraso expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. The company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP. With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense and the change in fair value of warrant liabilities.

[Jim Sullivan, CFO at Peraso]

These non-GAAP financial measures, definitions, and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related Form 8-K, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the investor relations page of our website. I'll now turn the call over to our CEO, Ron Glibbery, for his prepared remarks. Ron?

[Ron Glibbery, CEO at Peraso]

Thank you, Jim. Good afternoon, and welcome to everyone joining us on the call and webcast. We appreciate you taking the time to be here today. First quarter results were generally in line with our published revised expectations, with revenue negatively impacted by the anticipated delay of shipment of a sizable order, which represented a significant portion of our first quarter backlog due to material availability from one of our Asia-based suppliers. We shipped this order in the current quarter, and we have since also begun taking steps to reduce our future reliance on any single supplier. While our top line results reflected this headwind, during the quarter, we continued to maintain active customer engagement across all of our target end markets, including advancing multiple new opportunities for our 60 GHz technology in tactical communications and Edge AI applications. Turning to slide four.

[Ron Glibbery, CEO at Peraso]

Fixed Wireless Access continues to represent the largest and most mature end market for our 60 GHz solutions. Although a combination of current market dynamics, including the shortage and related increase of pricing of memory chips, are contributing to subdued near-term demand and purchase order activity from existing customers, we believe that we remain well-positioned to benefit from a recovery in orders once market conditions improve. As highlighted on our previous conference call, in March, we secured a notable new customer win with MikroTik's launch of its next-generation 60 GHz nRAY Point-to-Point product at Mobile World Congress, incorporating Peraso technology. With MikroTik's global reach and market share across a broad number of wireless internet service providers, we believe this newly introduced product will result in incremental Fixed Wireless Access deployments using our industry-leading 60 GHz technology.

[Ron Glibbery, CEO at Peraso]

More broadly, our fully integrated DUNE platform continues to resonate with operators that are pursuing high performance but also cost-effective wireless deployments in challenging urban environments. The combination of multi-gigabit throughput, low power, long range, and Point-to-Multipoint capability remains a compelling alternative to traditional backhaul approaches. We are continuously supporting a range of proof of concept evaluations with wireless ISPs worldwide, which we believe have the potential to translate into additional production orders for our existing fixed wireless customers. Moving to slide five. The interest level in 60 GHz technology for tactical communications continues to gain momentum. We increasingly see our expansion into this market as potentially significant contributor to Peraso's future growth. The timing and magnitude of orders remains uncertain.

[Ron Glibbery, CEO at Peraso]

The opportunity in tactical communications stems from the fundamental attributes of our millimeter wave technology, including narrow beam directional links, dynamic beam steering, oxygen attenuation, and utilizing unlicensed spectrum. Together, these attributes provide for inherently stealthy communications, low probability of detection, low probability of interception, and robust anti-jamming performance, making 60 GHz uniquely well-suited for mission-critical application. On today's increasingly modernized battlefield, the need for secure and clandestine communications naturally spawns numerous different send and receive scenarios, including forward operating bases and surveillance, vehicle-to-vehicle, air-to-ground, and ship-to-shore communications. After extensive collaboration to evaluate potential applications for our technology within tactical communications, in March, we achieved a notable milestone with the announcement of InTACT as a defense contractor customer. Our initial engagement with this customer began in 2024 and resulted in a jointly developed system solution for enhanced situational awareness on the battlefield.

[Ron Glibbery, CEO at Peraso]

This novel deployable solution continues to generate positive feedback and is scheduled for additional planned field trials in the August timeframe. Separately, as part of our customer announcement in March, we disclosed that InTACT selected Peraso's 60 GHz mmWave technology for its next generation drone Identification Friend or Foe system. For additional context, this is a purpose-built solution designed for highly contested electronic warfare environments. It enables secure real-time mutual authentication between friendly drones and ground forces, allowing counter-drone systems and operators to quickly distinguish friend from foe. Peraso's integrated beamforming wireless transceivers provide the low power, highly directional connectivity that's essential for maintaining stealth and reliable communication in dense battlefield conditions. In mid-April, we delivered initial limited production shipments of our optimized modules in support of InTACT's next generation drone platform.

[Ron Glibbery, CEO at Peraso]

This expanded engagement with our lead customer further reinforces our view that tactical communication represents a significant long-term market opportunity. Our announced collaboration has also served to increase the visibility and awareness of 60 GHz technology and the advantage that it brings to mission-critical tactical defense applications. In recent months, we've been approached by additional prospective customers and partners seeking to explore how Peraso's 60 GHz mmWave technology could be incorporated into their future product roadmaps. Needless to say, we're excited about our growing momentum in tactical communications. Turning to slide six. In addition to tactical communications, we continue to identify and be actively engaged on prospective growth opportunities in other areas outside of our core Fixed Wireless Access market. We have frequently referred to these areas as adjacent markets because they are seemingly diverse and not easily grouped into a common end markets category.

[Ron Glibbery, CEO at Peraso]

That said, a majority of the adjacent opportunities we are targeting today involve the application of Edge AI in areas such as last mile delivery, autonomous vehicles, and drones. One specific example that I highlighted on our previous conference call was our announced collaboration with Virewirx on their VX60 platform for robotaxis. Regardless of whether it's an autonomous vehicle, drone, or humanoid robot, implementing Edge AI frequently comes with the burden of requiring high-bandwidth wireless connectivity to upload massive amounts of captured data from various sensors and cameras, and then also download large blocks with updates to the device's operating system or instructions.

[Ron Glibbery, CEO at Peraso]

While this requirement is relatively easy to address in scenarios with a single vehicle, drone, or robot, a fleet of vehicles parked side by side, a swarm of drones in the air, or a factory floor full of robots could easily pose a significant challenge for traditional wireless technology. Although purely illustrative, this slide provides a clear visual depiction of the challenges as well as the value proposition delivered by 60 GHz wireless solution. At the bottom, with a traditional 5 GHz Wi-Fi network, signals flood the space like a light bulb, creating widespread co-channel interference that collapses capacity and impairs reliability. Whereas at the top of the slide, 60 GHz technology utilizes directional narrow beam links that eliminate interference, enabling numerous simultaneous multi-gigabit connections with low latency in the same density footprint.

[Ron Glibbery, CEO at Peraso]

With 60 GHz, you not only overcome the challenge, but you achieve maximum throughput, zero co-channel interference, and reliable real-time robot control. Although purely illustrative, the relative outcomes shown here are representative of the real-world challenges associated with implementing Edge AI at scale in close proximity. I want to briefly emphasize that these exact same dynamics and respective outcomes extend beyond the factory floor to effectively any centralized hub for autonomous Edge AI devices.

[Ron Glibbery, CEO at Peraso]

Today, we are working to advance ongoing discussions and have technology evaluations underway with multiple new prospective customers across a series of Edge AI and connected autonomous device applications. To the extent we are successful at converting these activities into design wins and future product ramps, it will represent expansion of our existing served market and also contribute to diversification of our future revenue base. In closing, while near-term visibility, particularly within Fixed Wireless Access, is below where we would like to due to a combination of broader market dynamics and irregular customer order patterns, we remain optimistic about the breadth of our customer engagements.

[Ron Glibbery, CEO at Peraso]

We believe there's growing recognition of 60 GHz mmWave's unique value proposition. We are continuing to pursue expanding opportunities for 60 GHz wireless technology within tactical communication, as well as other markets that require high bandwidth and secure connectivity beyond our core Fixed Wireless Access business. Our primary focus over the coming quarters is to secure new purchase orders while also increasing the conversion rate of existing customer engagements into design wins with the goal of achieving renewed top-line growth. With that, I'll turn the call over to Jim to review the financial results and share our outlook for the second quarter.

[Jim Sullivan, CFO at Peraso]

Thank you, Ron. Turning now to the results for the first quarter of 2026. Total net revenue for the first quarter was $1 million, compared with $2.9 million for the prior quarter and $3.9 million for the first quarter of 2025. Product revenue in the first quarter was $0.7 million, compared with $2.8 million in the prior quarter and $3.8 million in the first quarter of 2025. The decrease in product revenue for the first quarter of 2026 from the comparable periods was primarily attributable to lower shipments of mmWave products, and year-over-year also reflected a significant reduction in shipments of legacy memory ICs due to the previously announced product end-of-life.

[Jim Sullivan, CFO at Peraso]

Specific to sales of mmWave products, revenues were $0.6 million in the first quarter of 2026, compared with $2.4 million in the prior quarter and $1.5 million in the first quarter of 2025. Gross margin was 61.5% in the first quarter of 2026, compared with 52.2% in the prior quarter and compared with 69.3% in the year ago quarter. The sequential increase was primarily attributable to a higher mix of revenue contribution from non-recurring engineering products, while the year-over-year decline primarily reflected the decrease in sales of legacy memory ICs.

[Jim Sullivan, CFO at Peraso]

GAAP operating expense for the first quarter of 2026 was $3.1 million, compared with $2.8 million in the prior quarter and $3.2 million in the first quarter of 2025. Non-GAAP operating expenses, which exclude stock-based compensation, were $2.9 million in the first quarter, compared with $2.7 million in the prior quarter and $3.1 million in the first quarter of 2025. Our recent non-GAAP operating expenses level of approximately $3 million per quarter continues to reflect the benefits realized from previously implemented cost reductions and ongoing cost containment initiatives.

[Jim Sullivan, CFO at Peraso]

GAAP net loss for the first quarter of 2026 was $2.5 million or a loss of $0.22 per share, compared with a net loss of $1.2 million or a loss of $0.13 per share in the prior quarter, and compared with a net loss of $0.5 million or a loss of $0.08 per share in the same quarter a year ago. Non-GAAP net loss, which excludes stock-based compensation and changes in fair value of warrant liabilities for the first quarter of 2026 was $2.3 million or a loss of $0.20 per share.

[Jim Sullivan, CFO at Peraso]

This compared with a non-GAAP net loss of $1.2 million or a loss of $0.13 per share in the prior quarter and a net loss of $0.4 million or a loss of $0.07 per share in the same quarter a year ago. The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAAP and non-GAAP EPS for the first quarter of 2026 was approximately 11.6 million shares.

[Jim Sullivan, CFO at Peraso]

Adjusted EBITDA, which we define as GAAP net income or loss as reported, excluding stock-based compensation, change in fair value of warrant liabilities, interest expense, depreciation and amortization, and the provision for income taxes was -$2.3 million in the first quarter of 2026, compared with -$1.1 million in the prior quarter and -$0.3 million in the first quarter of 2025. With regard to the balance sheet, as of March 31, 2026, the company had approximately $2.7 million of cash, compared with $2.9 million as of December 31, 2025.

[Jim Sullivan, CFO at Peraso]

The net decrease of approximately $0.2 million in the company's cash balance at quarter end reflected the operating loss and capital expenditures of $2.5 million, partially offset by $2.3 million of net proceeds from sales under the company's at-the-market offering program during the first quarter. As of today's call, the company has approximately 14.2 million shares of common stock and exchangeable shares outstanding. As previously disclosed, the company has been exploring potential strategic alternatives, including a merger, sale of assets, or other similar transactions, as well as various potential sources of additional capital. Aside from confirming that the strategic review process continues to be ongoing in coordination with the company's financial advisor, there were no related updates to share on today's call from what we have previously disclosed. Now turning to our outlook.

[Jim Sullivan, CFO at Peraso]

As Ron previously discussed, overall visibility into future near-term demand is lower due to irregular lumpy order patterns from our customers. Additionally, we believe that certain of our customers are being negatively impacted by the higher pricing and reduced availability of memory devices. Based on shipments to date and existing order backlog, the company currently expects total net revenue for the second quarter of 2026 to be approximately $1.2 million.

[Jim Sullivan, CFO at Peraso]

This concludes our prepared remarks, and we thank you for your time this afternoon. Operator, please commence the Q&A session.

[Operator]

Certainly. The floor is now open for questions. If you wish to join queues to ask a question at this time, please press star one on your telephone keypad to join the queue. You will hear a brief tone to indicate you have joined the question queue. We do ask if listening on speaker phone today that you pick up your handset while asking your question to provide optimal sound quality. Once again, please press star one on your telephone keypad at this time if you wish to join queue to ask a question. Please hold a moment while we poll for questions. We have a question from Kevin Liu of K. Liu & Company. Kevin, your line is live. Please go ahead.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Hi. Good afternoon, guys. I just wanted to start here first on kind of the supply chain challenges that impacted the Q1 orders. Did you guys see that affect other orders outside of the large one that was shipped here in Q2? Was there any sort of ongoing spillover effect in that, you know, even though you were able to ship that one, maybe there's still shortages that are affecting other orders? Just wondering what sort of color you can give us there.

[Ron Glibbery, CEO at Peraso]

Sure. I can speak to that, Kevin. Thanks for joining the call. You know, I mean, the product that was affected is not exclusive to that, you know, that specific customer, so it was really a broad You know, it affected a broad product line, although clearly there was really one customer that was affected. It's kind of a long story, but the issue's been completely resolved. The manufacturer, you know, was testing parameters that, you know, were not important to us. We kind of resolved that, and obviously we're back on track. Of course, in the meantime, it exposed just a flaw in the, in our, in our supply chain that we've now, I would say robustly you know, fixed, in terms of having alternative suppliers.

[Ron Glibbery, CEO at Peraso]

We don't expect to see this again. I mean, this was a one-off. You know, unfortunately hit the first quarter and we feel it's fully resolved.

[Kevin Liu, Founder and CEO at K. Liu & Company]

That's good to hear. With respect to your FWA customers, both on kind of, the existing customer side as well as some of the newer ones, that are starting to move into production, just wondering what exactly it is, you know, that's creating the visibility challenges. Are they working through more significant inventory levels after purchases last year? Is this more related to them being slow on new production given some of the memory shortages? Just wondering, you know, what exactly, we could pinpoint this to.

[Ron Glibbery, CEO at Peraso]

I mean, the, definitely the consistent feedback is the memory issue. That's just, you know, that's just a fact in the marketplace now, that several customers have confirmed. You know, obviously, you know, if we look around the industry, we've seen that with other, you know, other, you know, companies that rely on DRAM. You know, we're hoping this situation stabilizes in the next quarter, you know, we'll wait and see. I would say that's most consistent. You know, obviously a lot of these are new customers that are coming online and sometimes there are, you know, glitches, just kind of ramping up.

[Ron Glibbery, CEO at Peraso]

For example, one customer had an issue just sourcing, you know, their casing from a supplier and that's completely resolved now, but a bit of a growing pain. We expect to see a much better performance over the course of the rest of the year.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Got it. On the defense side of things, you know, now that that Friend or Foe system has shipped and is in production, I'm wondering what you think the cadence of orders looks like, you know, either over the course of this year or kind of in future years. Is this a small initial shipment with much big volumes behind it? Then more generally, if you could just speak to, I think you mentioned some field trials coming up in August, how does that opportunity kind of differ from what you guys have done so far on the defense side?

[Ron Glibbery, CEO at Peraso]

Yeah. I think, you know, from our perspective, I think broadly for the company, just to put all this in perspective, I mean, our Fixed Wireless business, you know, we really feel that we've got, you know, a very high percentage of market share and, you know, that business will stabilize. From our perspective, you know, the kind of the military defense, security, communications business is a very important part of our future. You know, Kevin, just, I mean, I think you know this, but just to remind you, like, the broad win there is secure communications that can't be detected, again, because of our beamforming. Very difficult time detecting, but even more difficult time to jam.

[Ron Glibbery, CEO at Peraso]

You know, this is becoming, you know, broadly an issue in military, but in you know, very in particularly with regards to drones. I think, you know, we've all seen the footage from the wars in Ukraine and in the Middle East where, you know, there's so much drone activity. A lot of that activity historically has been facilitated by wireless. Of course, the enemies are getting very smart at how to jam wireless, and you're seeing a lot of, like, non-jammable systems or people going to fiber optic. Those solutions have many problems. You know, I think broadly our win in military is the stealth capability, the non-jammability, and we're seeing some real traction there.

[Ron Glibbery, CEO at Peraso]

The IFF that we announced is, I would call that a subset, an important subset. Like, obviously the key, the key win there is the fact that it can't be detected and of course the, you know, the pain point in the battlefield is friendly fire. You know that was you know, ironically, the friendly fire was kind of our first foray into the market. Really what we're discovering now and, you know, I think what you're gonna start seeing the orders, and I'll get to that in a second, is really broadly this stealth and non-jammable communications capabilities. You know, our customers so the August, you know, field trials, we expect to start to see volume in later in Q3 and Q4.

[Ron Glibbery, CEO at Peraso]

You know, certainly even in Eastern Europe, we're seeing a real sense of urgency to get non-jammable wireless solutions. You know, I think we'll start to see NRE later this year, and then real production in the first half of 2027. You know, one interesting point in kind of conversations with customers over the last couple weeks, for example, is, you know, is kind of the situation with Starlink in these war zones, which again is also a mmWave technology.

[Ron Glibbery, CEO at Peraso]

A core problem is that, you know, it relies on GPS and the way guys like, you know, Iran are jamming that is to actually jam the GPS, and that makes the system a bit inoperable. Of course, with our technology, we don't need GPS. You know, look, I mean, military communications, you know, I think we've saturated the market in fixed wireless. I think, you know, we're gonna just start, you know, once that stabilizes and memory prices stabilize, we'll see that market grow. From our perspective, you know, we see the military market being at least as big, probably much larger than that market.

[Ron Glibbery, CEO at Peraso]

You can expect to hear a lot of focus from us over the next few quarters, with regards to what we're doing on that front.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Yeah. I appreciate the detail on that. Just with respect to NRE, you know, wondering what sort of programs are contributing to that number in the first quarter, to what extent those continue versus any sort of other opportunities you wanna highlight within your pipeline, either related to Edge AI?

[Ron Glibbery, CEO at Peraso]

Yeah, there's really two broad areas there. With regards to military, you know, the term that we refer to is Size, Weight, and Power. You know, people want them smaller, and they want them lighter, and they want, you know, less power consumption. All those things, especially, I mean, pretty much everything for the military is battery operated. I mean, think of drones, think of, you know, soldiers. They're all in the field, and they're battery operated, so power consumption. You know, optimizing all those parameters for our customers is a source of the NRE, and that will definitely continue.

[Ron Glibbery, CEO at Peraso]

You know, for Edge AI, the Edge AI, I'm sure you saw the slide, and I think that slide that we showed about Edge AI, where we show essentially the silos created by our technology versus traditional Wi-Fi technology, really underscores the win there. I mean, one of our engineers called it our superpower. Like, it really is amazing how, you know, on a factory floor, for example, you know, the only way to solve the interference problem with Wi-Fi is to create little, you know, rooms for each of the robots, which is not obviously practical.

[Ron Glibbery, CEO at Peraso]

Some of the first quarter NRE was attributable to actually optimizing our system for Edge AI, but I think you'll, you know, we'll continue to see that grow over the course of the rest of this year as we get more and more customers involved in that space. The idea is to, again, optimize for those situations. You know, the two main sources or the two main markets we feel are contributing to our NRE is, you know, is tactical communications as well as Edge AI.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Got it. Maybe last couple of housekeeping ones, for Jim before I turn it over.

[Jim Sullivan, CFO at Peraso]

Sure.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Just on the, on the gross margin, for the Q2 guidance, you know, obviously there was a nice margin for Q1. Is that sustainable given the mix of revenue that you see, or is it gonna shift more heavily back towards the product side?

[Jim Sullivan, CFO at Peraso]

No, we expect it to shift more heavily back to product side. obviously with that large order, as Ron talked about, pushing the NRE was a larger percentage, so it pushed up the margins. we'll see, you know, a much higher percentage of product revenue in Q2, so I expect the margins, you know, to come back down into the 50s.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Yep. Makes sense. Just lastly, what's kind of the appropriate share count we should be thinking about now for Q2 and beyond?

[Jim Sullivan, CFO at Peraso]

I'm sorry. Say that again. What sort of?

[Kevin Liu, Founder and CEO at K. Liu & Company]

The share count, just wondering, where you guys stood, either at quarter end or today, that we can use in our models.

[Jim Sullivan, CFO at Peraso]

Yes, in the script we said approximately, you know, 14.2. We've been active in our ATM program. We'll provide a full update on that in the 10-Q filing. We're probably, with the additional activity, probably around 14.5 million shares, common shares and exchangeable shares outstanding.

[Kevin Liu, Founder and CEO at K. Liu & Company]

Got it. Thank you for that, and good luck here in the quarter.

[Ron Glibbery, CEO at Peraso]

Thanks. Thanks a lot, Kevin.

[Jim Sullivan, CFO at Peraso]

Thanks, Kevin.

[Operator]

Thank you. I show there are no further questions in the queue at this time. That will conclude today's conference call. Thank you for your participation, and you may now disconnect.

[Ron Glibbery, CEO at Peraso]

Thank you.

Participants

Executives

• Jim Sullivan, CFO
• Ron Glibbery, CEO

Analysts

• Kevin Liu, Founder and CEO at K. Liu & Company