Silvaco Group (NASDAQ:SVCO) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Silvaco reported Q4 EPS of ($0.03), beating consensus by $0.09, with revenue of $18.25M (up 2.2% YoY), non‑GAAP gross margin ~85% and a non‑GAAP operating loss of roughly $1M — all materially better than expected.
• AI-driven FTCO adoption lifted TCAD bookings +70% sequentially to $9.2M and revenue +34% to $8.7M, while the Mixel acquisition drove record IP bookings (> $5M) making IP ~30% of the business and the fastest‑growing segment.
• Restructuring now targets $20M annualized non‑GAAP spending cuts (vs. prior $15M), reduced total non‑GAAP spending >9% QoQ, and management expects to approach operating cash‑flow breakeven in Q2 and achieve positive cash flow in Q3 (year‑end unrestricted cash ~ $10M).

Silvaco Group (NASDAQ:SVCO - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.09, FiscalAI reports. Silvaco Group had a negative return on equity of 15.53% and a negative net margin of 47.59%.The business had revenue of $18.25 million for the quarter, compared to analyst estimates of $16.38 million. The firm's revenue was up 2.2% on a year-over-year basis.

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

• For Q4 the company beat guidance with $18.3M in bookings and revenue, non‑GAAP gross margin around 85%, and a non‑GAAP operating loss of roughly $1M — materially better than expected.
• AI-driven FTCO adoption accelerated ahead of plan (second customer, Asia, outside memory), driving TCAD bookings up 70% sequentially to $9.2M and revenue up 34% to $8.7M, and management expects TCAD to grow sequentially in Q1 and for the full year 2026.
• The Mixel acquisition powered record IP revenue/bookings (> $5M in Q4); Mixel’s MIPI PHY and new PRO products (silicon‑proven across multiple foundries/nodes) make IP ~30% of the business and the company’s fastest‑growing segment in 2026.
• EDA revenue and bookings declined significantly in Q4 after Q3 records; management expects short‑term stability only and a later return to growth as it concentrates development and sales on a few core products (e.g., Jivaro).
• Restructuring delivered faster savings than expected — now targeting $20M annualized non‑GAAP spending reductions (vs. prior $15M), total non‑GAAP spending fell >9% quarter‑to‑quarter, and the company expects to approach operating cash flow breakeven in Q2 and positive cash flow in Q3 (year‑end unrestricted cash ~ $10M).

Silvaco Group Stock Performance

SVCO opened at $3.30 on Friday. The stock has a market capitalization of $101.11 million, a PE ratio of -3.20 and a beta of 3.48. The stock's 50 day moving average price is $3.98 and its 200-day moving average price is $4.67. Silvaco Group has a 52-week low of $3.07 and a 52-week high of $6.57.

Institutional Trading of Silvaco Group

Several large investors have recently added to or reduced their stakes in the stock. Jacobs Levy Equity Management Inc. bought a new position in Silvaco Group in the 1st quarter worth $357,000. Goldman Sachs Group Inc. boosted its stake in shares of Silvaco Group by 249.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 106,051 shares of the company's stock valued at $484,000 after purchasing an additional 75,675 shares in the last quarter. Strs Ohio purchased a new position in shares of Silvaco Group during the first quarter valued at about $50,000. Geode Capital Management LLC increased its position in shares of Silvaco Group by 10.3% during the second quarter. Geode Capital Management LLC now owns 192,211 shares of the company's stock valued at $907,000 after buying an additional 18,022 shares during the period. Finally, JPMorgan Chase & Co. raised its stake in Silvaco Group by 27.3% in the second quarter. JPMorgan Chase & Co. now owns 13,483 shares of the company's stock worth $64,000 after buying an additional 2,895 shares in the last quarter.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on SVCO shares. Weiss Ratings restated a "sell (e+)" rating on shares of Silvaco Group in a report on Thursday, January 22nd. Wall Street Zen lowered shares of Silvaco Group from a "hold" rating to a "sell" rating in a report on Saturday, January 31st. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $10.00.

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.