Silvaco Reports Fourth Quarter and Full-Year 2025 Financial Results

• Secured second artificial intelligence-driven machine learning (AI/ML) FTCO™ customer, driving revenue above high end of guided range 
• Executing cost reduction strategies ahead of expectations, resulting in operating expenses below midpoint of guided range 
• Q4’25 operating loss less than anticipated and cash burn, excluding one-time items, to reduce dramatically in Q1’26 

SANTA CLARA, Calif., March 12, 2026 -- Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and innovation, today announced its fourth quarter and full year 2025 results.

“Silvaco’s turnaround strategy is off to a strong start,” said Walden Rhines, Silvaco’s Chief Executive Officer. “We won our second AI/ML FTCO™ customer during the quarter, saw a meaningful uptick in the IP business and we are executing our cost down strategy faster than anticipated. As a result, fourth-quarter 2025 results were ahead of expectations, and we see continued strength to start 2026. Looking forward, we remain firmly committed to our prioritized growth drivers and financial and operational discipline as we continue to deliver predictable, profitable growth.”

Chris Zegarelli, Silvaco’s Chief Financial Officer, added, “Our cost reduction strategies are progressing faster than expected. As a result, we saw stronger gross margins and healthier operating profit in the fourth quarter of 2025. Looking forward, and excluding non-recurring settlement and severance payments, we expect our operating cash burn to fall dramatically in Q1. From there, we see a path to non-GAAP operating profitability and positive operating cash flow during the year. We are pleased with our progress and look forward to driving to profitability as the year progresses.”  

Fourth Quarter 2025 and Recent Business Highlights

• TCAD bookings up 70% sequentially to $9.2 million driven by second FTCO customer secured in Asia, accelerating adoption of Silvaco’s AI/ML FTCO™ process development solution.
• Almost 3x sequential growth in SIP revenue to a record of $5.1 million driven by the first full quarter of Mixel revenue post acquisition. SIP revenue in the fourth quarter exceeded SIP revenue for the full year 2024.
• Taped out N2 PHY, expanding addressable market for MIPI solutions.
• Largest market segments driving quarterly bookings include display, power, foundry and automotive.
• Acquired 13 new customers across key markets including AI infrastructure (Power, Memory, Foundry) and Automotive accounting for 23% of bookings in the quarter. We also expanded opportunities with existing customers, accounting for 53% of gross bookings.

Full Year 2025 Business Highlights

• Closed acquisitions of Cadence’s PPC product line, Tech-X Corporation and Mixel Group, Inc.
• Settled dispute with the former shareholders of Nangate, Inc.
• SIP revenues grew to $9.7 million, up 98% from 2024; SIP bookings up more than 3x from 2024 to $10.4 million.
• Leadership Update: New additions to the Executive team, including CEO Walden “Wally” Rhines and CFO Chris Zegarelli.
• Company-wide cost reduction program initiated, currently expected to reduce annualized gross non-GAAP operating expenses by $20 million. $14 million in annualized reductions executed by the end of 2025.
• Acquired 37 new customers across key markets including AI infrastructure (Power, Memory, Foundry), Automotive, Display and Photonics accounting for 19% of bookings for the year. We also expanded opportunities with existing customers, accounting for 54% of gross bookings.

Fourth Quarter 2025 Financial Results

GAAP Financial Results:

• Revenue of $18.3 million, up 2% year-over-year.
  • TCAD revenue of $8.8 million, down 31% year-over-year.
  • EDA revenue of $4.4 million, up 4% year-over-year.
  • SIP revenue of $5.1 million, up 483% year-over-year.
     
• GAAP gross margin of 83%, down 310 basis points year-over-year.
• GAAP operating loss of $6.8 million, compared to $2.4 million operating income in Q4 2024.
• GAAP net loss of $7.2 million, compared to $4.2 million net income in Q4 2024.
• GAAP basic and diluted net loss per share of $0.24, compared to basic and diluted net income per share of $0.14 in Q4 2024.
• As of Q4 end, cash, cash equivalents, short term marketable securities and restricted cash totaled $18.3 million.

Key Operating Indicators and Non-GAAP Financial Results:

• Gross bookings were $18.3 million, down 10% year-over-year.
• Non-GAAP gross margin of 86%, down 237 basis points year-over-year.
• Non-GAAP operating loss of $1.1 million, compared to $2.9 million operating income in Q4 2024.
• Non-GAAP net loss of $0.8 million, compared to $4.0 million net income in Q4 2024.
• Non-GAAP basic and diluted net loss per share of $0.03, compared to basic and diluted net income per share of $0.14 in Q4 2024.

Full Year 2025 Financial Results

GAAP Financial Results:

• Revenue of $63.1 million, up 6% year-over-year.
  • TCAD revenue of $30.0 million, down 25% year-over-year.
  • EDA revenue of $23.4 million, up 60% year-over-year.
  • SIP revenue of $9.7 million, up 98% year-over-year.
     
• GAAP gross margin of 78%, down 154 basis points year-over-year.
• GAAP operating loss of $45.9 million, compared to $40.3 million operating loss in FY 2024.
• GAAP net loss of $41.2 million, compared to $39.4 million net loss in FY 2024.
• GAAP basic and diluted net loss per share of $1.39, compared to basic and diluted net loss per share of $1.53 in FY 2024.

Key Operating Indicators and Non-GAAP Financial Results:

• Gross bookings were $67.7 million, up 3% year-over-year.
• Non-GAAP gross margin of 81%, down 432 basis points year-over-year.
• Non-GAAP operating loss of $12.4 million, compared to $4.8 million operating income in FY 2024.
• Non-GAAP net loss of $11.1 million, compared to a $5.5 million net income in FY 2024.
• Non-GAAP basic and diluted net loss per share of $0.37, compared to basic and diluted net income per share of $0.22 in FY 2024.

For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Supplementary materials to this press release, including fourth quarter 2025 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

First Quarter and Full Year 2026 Financial Outlook

As of March 12, 2026, Silvaco is providing guidance for its first quarter of 2026, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of Bookings, non-GAAP gross margin and non-GAAP operating expenses. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin and GAAP operating expenses are the most comparable GAAP measures to non-GAAP operating expenses. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, IPO related costs, and acquisition related costs. Non-GAAP operating expenses differ from GAAP operating expenses in that they exclude items such as acquisition related costs, stock-based compensation expense, amortization of acquired intangible assets, IPO related costs, and restructuring and other related costs. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin or GAAP operating expenses or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating expenses to GAAP gross margin or GAAP operating expenses, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Based on current business trends and conditions, the Company expects for first quarter 2026 the following:

• Bookings in the range of $15 million to $19 million.
• Revenue in the range of $15 million to $19 million.
• Non-GAAP gross margin of around 85%.
• Non-GAAP operating expenses in the range of $14.5 million to $16.5 million.

Financial Tables

To read financial tables, click here

Fourth Quarter 2025 Conference Call Details

A press release highlighting the Company's results along with supplemental financial results will be available at https://investors.silvaco.com/. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

Date: Thursday, March 12, 2026
Time: 5:00 p.m. Eastern time
Webcast: Here (live and replay)

About Silvaco

Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Egypt, Brazil, China, Japan, Korea, Singapore, Vietnam, and Taiwan.