Silvaco Reports Second Quarter 2026 Financial Results

• Profitability: Delivered better-than-expected operating results driven by continued tight management of operating expenses --
• Partnerships: Announced new strategic partnerships with NVIDIA and Dassault Systemes SIMULIA, and deepened relationship with Micron Technologies with a $10 million convertible note, to accelerate Fab Technology Co-Optimization (FTCO™) adoption globally –
• AI Acceleration: Introducing Agentic AI offerings with engagements with key strategic customers expected by yearend –

SANTA CLARA, Calif., Aug. 06, 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 second quarter 2026 results.

“Silvaco made solid progress on its strategic transformation in Q2,” said Walden Rhines, Silvaco’s Chief Executive Officer. “We launched new partnerships with industry leaders, Nvidia and Dassault Systemes. We deepened our relationship with Micron Technologies. We won another FTCO customer and expanded our AI offerings to include Agentic solutions. We delivered on our commitment to drive to non-GAAP profitability in Q2 and saw record pipeline growth and revenue in IP. Looking forward, we expect more FTCO wins, more AI offerings, and more progress on profitable growth. These developments, coupled with our strengthening pipeline, give us confidence in expecting record revenue in Q4 and double-digit revenue growth again in 2027.”

Chris Zegarelli, Silvaco’s Chief Financial Officer, added, “Silvaco’s record IP revenue in the quarter, combined with reduced spending, enabled us to deliver non-GAAP operating profitability in Q2 for the first time in almost two years. We also recently took steps to strengthen the balance sheet, including closing a $10 million investment from Micron Technologies. We are excited about our momentum and strengthening fundamentals and look forward to building on them in the quarters ahead.”

Micron Technologies’ investment in Silvaco is part of an expanded relationship between the two companies. At the core of this collaboration is Silvaco’s FTCO platform, an AI-powered solution to create real-time Surrogate Models empowered by multiphysics-based simulations. These surrogate models abstract the complexity of full physics-based simulations and deliver real-time predictive insights.

“Real-time, AI-driven modeling is becoming a strategic advantage in advanced memory development, enabling our engineers to make faster, better-informed process decisions,” said Gurtej Sandhu, Principal Fellow & CVP, Micron Technologies. “Silvaco’s FTCO platform has been instrumental in helping us achieve that, and we look forward to continuing to push the boundaries of what’s possible in next generation memory development.”

Second Quarter 2026 and Recent Business Highlights

• Secured new AI FTCO customer in Q2’26 and working to close new AI FTCO wins in 2H’26.
• IP bookings up 81% sequentially and 70% year-on-year to $5.4 million. IP revenue up 48% sequentially and 238% year-on-year to $6.0 million. IP strength driven by foundational IP and Mixel offerings.
• Drove record pipeline creation during the quarter, with $64M in new opportunities added. Identified pipeline opportunities grew to over $292M by quarter end.
• Announced partnership with NVIDIA to accelerate next-generation digital twins for semiconductor design and manufacturing. The partnership combines GPU-accelerated computing, physics-based simulation, and AI to enable digital twins.
• Launched partnership with Dassault Systemes SIMULIA to develop interoperable digital twin workflows that help semiconductor manufacturers achieve first-time-right process development, accelerate yield ramps, and make better manufacturing decisions before committing costly fab resources.

Second Quarter 2026 Financial Results

GAAP Financial Results:

• Revenue of $17.8 million, up 48% year-over-year.
  • TCAD revenue of $7.9 million, up 16% year-over-year.
  • EDA revenue of $3.9 million, up 14% year-over-year.
  • SIP revenue of $6.0 million, up 238% year-over-year.
     
• GAAP gross margin of 85%, up 1423 basis points year-over-year.
• GAAP operating loss of $4.0 million, compared to $10.1 million operating loss in Q2 2025.
• GAAP net loss of $3.7 million, compared to $9.4 million net loss in Q2 2025.
• GAAP basic and diluted net loss per share of $0.11, compared to basic and diluted net loss per share of $0.32 in Q2 2025.
• As of quarter-end, cash and cash equivalents totaled $13.0 million.

Key Operating Indicators and Non-GAAP Financial Results:

• Gross bookings were $16.2 million, up 25% year-over-year.
• Non-GAAP gross margin of 87%, up 1246 basis points year-over-year.
• Non-GAAP operating income of $0.6 million, compared to $6.0 million operating loss in Q2 2025.
• Non-GAAP net income of $0.3 million, compared to $5.8 million net loss in Q2 2025.
• Non-GAAP basic and diluted net income per share of $0.01, compared to basic and diluted net loss per share of $0.20 in Q2 2025.

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 second quarter 2026 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

Third Quarter Financial Outlook

As of August 6, 2026, Silvaco is providing guidance for its third quarter of 2026, which represents Silvaco’s current estimates of 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, acquisition related costs and restructuring, executive severance and other 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, and restructuring, executive severance 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 third quarter 2026 the following:

• Bookings of $18.0 million +/- 10%.
• Revenue of $17.0 million +/- 10%.
• Non-GAAP gross margin of around 88%.
• Non-GAAP operating expenses of $14.5 million +/- 5%.

Explore Silvaco IP:

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• LVDS Serializer IP
• MIPI M-PHY IP

Second Quarter 2026 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, August 6, 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.