Investment Thesis
Peraso is a micro-cap semiconductor company experiencing severe financial distress with declining revenue (-16.3% YoY), persistent operating losses, and significant cash burn (-$2.5M FCF). Despite improving loss trends and healthy 61.5% gross margins, the company's $2.7M cash position with 2.0x debt-to-equity ratio creates immediate liquidity risk if operational performance does not materially improve.
Strengths
- Healthy gross margin of 61.5% indicates viable product-market fit and pricing power
- Improving profitability trajectory with net losses declining 55.7% YoY
- Strong short-term liquidity with 3.34x current ratio and 2.40x quick ratio
Risks
- Revenue declining 16.3% YoY with limited recovery visibility in competitive semiconductor sector
- Negative operating cash flow of -$2.3M with company burning cash at unsustainable rate
- Critical liquidity risk: $2.7M cash provides approximately 13 months of runway at current burn rate; high debt-to-equity ratio of 2.0x severely limits refinancing options
Key Metrics to Watch
- Quarterly revenue trend - reversal from decline is essential for survival
- Operating cash flow and cash balance trajectory - current runway is critically short
- Gross margin sustainability - any compression would accelerate path to insolvency
Financial Metrics
Revenue
963.0K
Net Income
-2.5M
EPS (Diluted)
$-0.22
Free Cash Flow
-2.5M
Total Assets
6.4M
Cash
2.7M
Profitability Ratios
Gross Margin
61.5%
Operating Margin
-257.9%
Net Margin
-259.3%
ROE
-54.2%
ROA
-39.0%
FCF Margin
-262.9%
Balance Sheet & Liquidity
Current Ratio
3.34x
Quick Ratio
2.40x
Debt/Equity
2.00x
Debt/Assets
28.0%
Interest Coverage
-118.29x
Long-term Debt
9.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-15T07:50:29.540233 |
Data as of: 2026-03-31 |
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