Silvaco Group (NASDAQ:SVCO) Releases Earnings Results, Hits Estimates

Key Points

• Silvaco met earnings expectations with quarterly EPS of $0.01, while revenue reached $17.81 million versus analysts’ $17.90 million estimate. Revenue grew 48% year over year to $17.8 million, and the company returned to non-GAAP operating profitability.
• The company announced collaborations with NVIDIA and Dassault Systèmes and expanded its partnership with Micron, including a $10 million convertible-note investment. Its IP business was a major growth driver, with revenue up 238% year over year.
• Management expects record fourth-quarter revenue, 2026 revenue above $70 million, and double-digit growth with positive operating cash flow in 2027. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $12.67, compared with the stock’s recent price of $7.65.

Silvaco Group (NASDAQ:SVCO - Get Free Report) posted its earnings results on Thursday. The company reported $0.01 earnings per share for the quarter, meeting analysts' consensus estimates of $0.01, FiscalAI reports. Silvaco Group had a negative net margin of 30.43% and a negative return on equity of 15.63%. The firm had revenue of $17.81 million during the quarter, compared to analyst estimates of $17.90 million.

Here are the key takeaways from Silvaco Group's conference call:

• Revenue grew 48% year over year to $17.8 million, while bookings increased 25% to $16.2 million. Silvaco also returned to non-GAAP operating profitability with $635,000 of operating income, its first such profit since late 2024.
• Silvaco announced strategic collaborations with NVIDIA and Dassault Systèmes and expanded its relationship with Micron, including a $10 million convertible-note investment. The partnerships are intended to accelerate AI-enabled manufacturing, digital twins, and first-time-right semiconductor process development.
• The IP business was a major near-term growth driver: Q2 IP revenue increased 238% year over year, with record bookings and revenue and a pipeline that expanded more than fourfold. Management expects IP revenue to reach approximately $20 million in 2026, roughly doubling year over year.
• Management expects record quarterly revenue in Q4, full-year 2026 revenue above $70 million, and double-digit revenue growth, non-GAAP operating profitability, and positive operating cash flow in 2027. Q3 revenue guidance of $17 million reflects typical TCAD seasonality, while Q4 is expected to benefit from renewals and a strong pipeline.
• The company has completed its targeted $20 million in annualized cost reductions, with non-GAAP operating expenses declining to $14.8 million in Q2. However, cash used in operating activities remained $5.5 million, and Silvaco plans continued investment in GPU infrastructure and AI tools despite its improving profitability.

Silvaco Group Stock Performance

Silvaco Group stock traded down $0.96 during mid-day trading on Friday, hitting $7.65. The company's stock had a trading volume of 1,023,551 shares, compared to its average volume of 369,220. The company has a 50 day moving average of $10.52 and a 200-day moving average of $7.98. The stock has a market cap of $250.00 million, a PE ratio of -10.62 and a beta of 0.63. Silvaco Group has a one year low of $3.07 and a one year high of $14.39.

Insider Buying and Selling

In other Silvaco Group news, Director Katherine S. Ngai-Pesic sold 200,000 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.27, for a total value of $2,254,000.00. Following the transaction, the director directly owned 9,176,403 shares in the company, valued at $103,418,061.81. This represents a 2.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 47.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Jain Global LLC purchased a new position in Silvaco Group during the 4th quarter valued at about $63,000. Barclays PLC increased its holdings in Silvaco Group by 53.1% during the fourth quarter. Barclays PLC now owns 16,908 shares of the company's stock valued at $68,000 after buying an additional 5,867 shares during the period. Dimensional Fund Advisors LP bought a new position in Silvaco Group in the fourth quarter worth approximately $101,000. Bridgeway Capital Management LLC bought a new position in Silvaco Group in the second quarter worth approximately $118,000. Finally, Bank of America Corp DE lifted its holdings in Silvaco Group by 60.5% during the second quarter. Bank of America Corp DE now owns 26,988 shares of the company's stock worth $127,000 after buying an additional 10,174 shares during the period.

Analyst Ratings Changes

SVCO has been the topic of a number of recent research reports. Weiss Ratings raised shares of Silvaco Group from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, July 10th. Needham & Company LLC boosted their target price on shares of Silvaco Group from $10.00 to $18.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Rosenblatt Securities restated a "buy" rating and set a $14.00 target price on shares of Silvaco Group in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $12.67.

Silvaco Group Company Profile

Silvaco Group, Inc is a provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. Founded in 1984 and headquartered in Santa Clara, California, the company offers a suite of tools for process and device simulation, circuit design, verification, and physical implementation. Silvaco's core product lines include technology computer-aided design (TCAD) for process modeling, SPICE circuit simulators for analog and digital analysis, and layout and parasitic extraction tools for physical verification.

In addition to its EDA software, Silvaco delivers semiconductor IP in areas such as memory compilers, interface IP (including USB, PCI Express and DDR), and embedded analog/mixed-signal cores.

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