Silicom (SILC) investor relations material

Executive summary

• Q1 2026 delivered 33% revenue growth to $19.1 million, with strong momentum across all product lines and regions.

• Four new design wins in early 2026, including major customers in networking, streaming, cybersecurity, and post-quantum cryptography.

• Strategic investments continue in AI inference, post-quantum cryptography, and white-label switching, leveraging a scalable platform and decades of IP.

• Trusted by over 200 global Tier-1 customers, with a robust pipeline and advanced customer engagements across growth markets.

• Positioned for venture-style upside in AI inference, PQC, and WLS, with initial orders and co-development underway.

Financial highlights

• Q1 2026 revenue was $19.1 million, up from $14.4 million in Q1 2025 (33% growth).

• Gross profit rose to $5.7 million (gross margin 30%), compared to $4.4 million (30.3%) a year ago.

• Net loss improved to $1.5 million non-GAAP ($0.25/share) and $2.4 million GAAP ($0.41/share), both better than Q1 2025.

• Operating loss narrowed to $1.9 million from $2.4 million in Q1 2025.

• One customer accounted for over 10% of revenue in the last 12 months.

Outlook and guidance

• Q2 2026 revenue expected between $20–$21 million, up to 40% year-over-year growth at the upper end.

• Full-year 2026 revenue guidance raised to $82–$83 million, representing about 33% year-over-year growth.

• Targeting 7–9 design wins for 2026, with four already secured.

• Significant AI inference revenue expected more in 2027 than 2026.

• Double-digit revenue growth anticipated to continue beyond 2026, supported by strong design win momentum.