Silvaco Group (SVCO) investor relations material

Executive summary

• Q3 revenue was $16.3M, down 13% YoY; gross margin rose to 84% and net loss narrowed to $4.6M from $5.3M.

• Bookings reached $19.3M, including record TCAD bookings of $10.3M, up 89% YoY; a major Tier-1 FTCO win and four Tier-1 Jivaro Pro wins drove demand.

• 9M revenue grew 16% to $51.9M, while net loss narrowed to $14.1M from $34.0M.

• Q4 guidance implies 35% sequential revenue growth; FY2026 growth is projected at 17%, with mid-to-high-teens growth expected in 2027.

Financial highlights

• Q3 software license revenue fell 21% to $10.9M; maintenance and service revenue rose 11% to $5.4M.

• Q3 gross profit was $13.7M, down 6% YoY; cost of revenue fell 37% to $2.6M, lifting GAAP gross margin to 84% from 78%.

• GAAP operating loss was $4.3M versus $9.3M; net loss was $4.6M versus $5.3M. Non-GAAP operating loss was $1.0M and net loss was $1.3M.

• GAAP OpEx fell 6% QoQ to $18M; non-GAAP OpEx was $14.9M, slightly above guidance midpoint, partly due to higher incentive accruals.

• 9M gross profit rose 29% to $44.2M, with gross margin increasing to 85% from 76%.

Outlook and guidance

• Q4 guidance: revenue $22M ±10%, bookings $21M ±10%, non-GAAP gross margin ~88%, and non-GAAP OpEx $16M ±5%.

• Q4 revenue midpoint implies 35% sequential growth; FY2026 revenue growth is expected at 17%.

• 2027 revenue growth is expected in the mid-to-high teens; OpEx growth is expected to be substantially below revenue growth.

• Restructuring is expected to be completed in 2026, with total costs of $5.0M and annualized OpEx reductions anticipated; non-GAAP profitability is expected for FY2026.

• $53.2M of remaining performance obligations at Sept. 30, 2026, with ~59% expected to be recognized over the next 12 months.