Peraso Inc. (PRSO): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of Peraso Inc.'s (PRSO) portfolio as of late 2025, and honestly, the BCG matrix shows a company in a high-risk, high-reward transition. The story here is all about the core 60 GHz mmWave segment, which is clearly the Star, showing a 35% sequential revenue jump to $3.0 million in Q3, but the company still posts a net loss, meaning there are no true Cash Cows yet. We're actively cutting the legacy Memory ICs (the Dogs) while placing big, capital-intensive bets on defense and EdTech verticals-the Question Marks-that could define the next decade. Dive in to see exactly where Peraso needs to invest or divest to turn this high-growth potential into sustainable profit.

Background of Peraso Inc. (PRSO)

You're looking at Peraso Inc. (PRSO) right as it seems to be hitting an inflection point, moving away from older product lines and doubling down on its core wireless technology. Peraso Inc. is fundamentally a pioneer in high-performance 60 GHz unlicensed and 5G mmWave wireless technology, which means they design and sell the chipsets, antenna modules, software, and intellectual property that power these advanced connections.

The company's technology supports several key applications you should know about: fixed wireless access (FWA) for broadband, immersive video, factory automation, and increasingly, tactical communications for the defense sector. Honestly, the narrative has shifted quite a bit over the last year, moving from inventory correction to a focus on scaling production in these high-growth areas.

Looking at the most recent hard numbers from the third quarter of 2025, Peraso Inc. posted total net revenue of $3.23 million for the quarter ending September 30, 2025. That revenue figure represents a strong sequential jump of over 45% compared to the second quarter of 2025, but it's still down about 16% year-over-year from the $3.8 million seen in Q3 2024.

The real story here is the mmWave segment. Revenue from mmWave products hit a quarterly record of $3.0 million in Q3 2025, which is a 35% sequential increase. This growth is what drove the GAAP gross margin up to 56.2% for the quarter, a solid improvement from 48.3% in the prior quarter. To be fair, the company is still unprofitable, reporting a GAAP net loss of $1.2 million in Q3 2025, but the operational momentum is clear.

The older memory IC product line is clearly winding down, as its reduction in shipments is cited as a reason for the year-over-year revenue decline. For the near term, Peraso Inc. provided fourth-quarter 2025 revenue guidance between $2.8 million and $3.1 million, which suggests a slight normalization after the Q3 ramp. Key wins, like the renewed collaboration with WeLink for FWA deployment and progress in defense, are what management is counting on to build the next phase of revenue.

Peraso Inc. (PRSO) - BCG Matrix: Stars

Core 60 GHz mmWave products for Fixed Wireless Access (FWA) represent the primary growth engine for Peraso Inc. (PRSO). This segment is positioned as a Star because it operates within a market characterized by high growth potential, and the company's technology holds a leading position within that space.

Q3 2025 mmWave product revenue was approximately $3.0 million, marking a 35% sequential increase over the prior quarter's revenue of $2.2 million. This performance contributed significantly to the total net revenue of $3.2 million in Q3 2025, which was up more than 45% sequentially from $2.2 million in Q2 2025. This segment operates in the high-growth FWA market, projected to expand at an 18.22% CAGR through 2033, according to the strategic framework. Strong sequential revenue growth and improved GAAP gross margin of 56.2% in Q3 2025 show unit economics are tightening, up from 48.3% in Q2 2025.

The unit economics improvement is supported by a more favorable revenue mix, heavily weighted toward these mmWave solutions, and the recognition of previously written-down inventory. The GAAP gross margin of 56.2% in Q3 2025 compares to 47.0% in the year-ago quarter. The company's GAAP operating expenses were $3.0 million in Q3 2025, which helped narrow the GAAP net loss to $1.2 million from $1.8 million in Q2 2025.

The Star status is further validated by recent business traction, which indicates market acceptance and future revenue potential. You should track these specific milestones:

• Secured an initial production volume order from a new OEM customer valued at $0.9 million in September 2025.
• Announced a collaboration with WeLink to accelerate high-speed broadband deployment across dense urban areas in the U.S. leveraging 60 GHz technology.
• Completed initial field trials with the lead customer in the tactical communications market for a next-generation, mission-critical defense application.

To sustain this position, investment in promotion and placement is key, as Stars consume cash to maintain their high-growth trajectory. Here is a summary of the key financial performance indicators for the Star segment's reporting period:

The near-term outlook suggests a potential normalization of revenue, as the company forecasts Q4 2025 total net revenue to be in the range of $2.8 million to $3.1 million. This guidance implies that the exceptional sequential growth seen in Q3 2025 may not fully repeat immediately, but maintaining the improved gross margin of 56.2% would be a critical operational success metric.

Peraso Inc. (PRSO) - BCG Matrix: Cash Cows

Peraso currently lacks a true Cash Cow product line generating stable, high-margin cash flow in a mature market. The company is still operating at a GAAP net loss of $1.2 million in Q3 2025, so no segment is a net cash generator. All core mmWave revenue is being reinvested to fund growth and capture market share in competitive, emerging markets.

Here's the quick math: Operating expenses of $3.0 million in Q3 2025 nearly equaled the total revenue of $3.2 million. This operational structure shows that, as of the third quarter of 2025, the business is consuming capital rather than producing the surplus cash characteristic of a Cash Cow.

The focus on growth in emerging segments, particularly mmWave, dictates this investment posture. The company is prioritizing market penetration over immediate profitability, which is the opposite strategy for managing a mature Cash Cow.

• mmWave product revenue set a quarterly record, rising 35% sequentially in Q3 2025.
• The company secured an initial production order valued at $0.9 million in Q3 2025.
• The pipeline includes 12 customer SKUs in pre-production as of the Q3 2025 report.
• The accumulated deficit stood at approximately $177.6 million as of March 31, 2025.

The current financial reality is that investments are required to support infrastructure and product development to scale the mmWave business. For instance, the GAAP net loss of $1.2 million in Q3 2025, while an improvement from the $1.8 million loss in the prior quarter, still represents a net cash outflow. The forecasted annual EBITDA for the fiscal year ending December 31, 2025, is estimated to be negative 4MM.

The company's guidance for the next period further suggests continued investment needs, projecting total net revenue for the fourth quarter of 2025 to be in the range of $2.8 million to $3.1 million. This is a clear indication that the business units are not yet self-funding their operations or growth, which is the defining trait of a Cash Cow.

Peraso Inc. (PRSO) - BCG Matrix: Dogs

The Legacy Memory IC products segment of Peraso Inc. (PRSO) clearly falls into the Dogs quadrant. These are products operating in a low-growth or declining market phase, characterized by low relative market share, which aligns with the company actively phasing them out.

The planned discontinuation of these end-of-life (EOL) products had a direct, measurable impact on the top line. For instance, the total net revenue in the second quarter of 2025 was reported at only $2.2 million, a significant drop from the $3.9 million recorded in the prior quarter. This decline was directly linked to the wind-down of the legacy business.

The year-over-year comparison from the third quarter of 2024 to the third quarter of 2025 further illustrates the impact of this product exit. Total net revenue for Peraso Inc. decreased by approximately 16% year-over-year, moving from $3.8 million in Q3 2024 to $3.2 million in Q3 2025. The reduction in Memory IC shipments was the primary driver for this year-over-year decrease.

Here's a look at how the Memory IC contribution evaporated between Q3 2024 and Q3 2025, cementing its Dog status:

Even as the company actively moves on, there were still final transactions related to this segment. In October 2025, Peraso Inc. received additional non-cancelable purchase orders totaling $0.5 million for these EOL products, which the company expected to complete shipments for during the fourth quarter of 2025. This is incremental to the approximately $16.9 million in EOL purchase orders booked as of April 2024.

The strategic imperative is clear: minimize resources allocated here. The company's focus is now entirely on the growth segment, as evidenced by the Q3 2025 mmWave product revenue setting a quarterly record at $3.0 million.

The Dogs segment requires minimal further investment because:

• The product line is officially end-of-life (EOL).
• Wafer production for the legacy products ceased at TSMC.
• Final shipments are being fulfilled from existing inventory or small, last-time buy orders.
• The segment's revenue contribution has been replaced by mmWave sales, which accounted for $3.0 million of the $3.2 million total revenue in Q3 2025.

These products are cash traps that have been systematically eliminated to free up capital for the Stars and Question Marks. Finance: draft 13-week cash view by Friday.

Peraso Inc. (PRSO) - BCG Matrix: Question Marks

You're looking at the new, high-potential areas of Peraso Inc. (PRSO) that are consuming cash now but could become major revenue drivers later. These are the Question Marks in the matrix: markets that are growing fast, but where Peraso Inc. still holds a small piece of the pie.

The strategy here is clear: you either pour capital in to grab market share quickly, or you cut bait. For Peraso Inc., the immediate focus is on getting these new platforms adopted.

New mmWave vertical applications like military/defense and EdTech are high-growth, low-share bets. The initial shipments of the next-gen 60 GHz platform to a major defense contractor mark a significant step, representing a $0.9 million initial production order achieved in the third quarter of 2025. This technology targets a potential market opportunity exceeding $500 million, based on the estimated 3.44 million NATO active force size. Also, strategic design wins, including a collaboration with WeLink for dense urban broadband, require significant capital to scale, as the company needs to convert these wins into repeat production orders.

The near-term financial reality is that these investments are cash-intensive. As of September 30, 2025, Peraso Inc. held approximately $1.9 million in cash, a slight increase from $1.8 million at the end of the prior quarter. Revenue realization from these new markets faces elongated design cycles, a defintely near-term risk, which is reflected in the cautious Q4 2025 revenue guidance of $2.8 million to $3.1 million, compared to the $3.2 million total net revenue achieved in Q3 2025.

Here's a quick look at the recent performance that funds these Question Marks:

The growth in mmWave revenue is the engine for these Question Marks, but the overall financial picture shows they are still in a high-burn phase, needing market adoption to transition to Stars.

The key areas demanding investment and market penetration include:

• Initial production shipments to the defense sector.
• Converting the WeLink collaboration into volume.
• Scaling the 60 GHz platform for new verticals.
• Maintaining disciplined expense management at $3.0 million (GAAP operating expenses in Q3 2025).

You need to watch the conversion rate of design wins very closely.