Peraso Shares Face Critical Earnings Test

Investors in Peraso Inc. are bracing for a pivotal moment as the company prepares to release its third-quarter 2025 financial results after market close on Monday. This earnings announcement represents the most significant event for the semiconductor firm this quarter, with market participants divided on what to expect.

Market experts project Peraso will report a loss per share ranging from $0.22 to $0.28. The stock concluded Friday's session at $1.14, marking a 1.30% decline, after fluctuating between $1.04 and $1.17 throughout the trading day. Some forecasts indicate potential price swings of up to ±15.24% on the first trading day following the earnings release, creating palpable tension among shareholders.

Historical Performance Offers Contradictory Signals

The company's recent financial history presents an intriguing paradox. During the second quarter of 2025, Peraso experienced a substantial revenue decline, with total sales dropping to $2.2 million compared to $3.9 million in the previous quarter. Despite this significant contraction, the equity surprisingly surged 8.64% in after-hours trading following that report.

• Q2 Revenue: $2.2 million (previous quarter: $3.9 million)
• After-hours surge: +8.64% despite revenue contraction
• Q3 Projection: $2.8 to $3.1 million in revenue

Market observers are questioning whether this pattern might repeat, given that investors previously responded positively to the company's strategic initiatives despite weakening financial metrics.

Should investors sell immediately? Or is it worth buying Peraso?

Analyst Outlook: High Risk, High Reward Potential

A recent research note dated November 8 maintains a "Strong Buy" recommendation on Peraso shares, establishing a price target of $3.00. This projection implies substantial upside potential exceeding 160% from current levels. However, the feasibility of this optimistic forecast remains uncertain as the company continues its struggle toward profitability.

Peraso has targeted mid-2026 to achieve profitability, a goal that would require generating approximately $6 million in gross margin per quarter—a formidable challenge given current revenue levels. Technical analysis further complicates the picture, indicating a neutral to negative medium-term outlook for the stock.

The upcoming earnings report will likely determine whether Peraso can initiate the necessary trend reversal or face intensified downward pressure, making this announcement a decisive moment for the company's near-term trajectory.