EnSilica (ENSI) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 was £9.3m, down 3% year-over-year, with chip supply revenue up 164% to £2.9m, underpinning future growth.

• Five new design and chip supply wins secured, expected to generate over £100m in future/lifetime revenues from 2027, strengthening revenue visibility for H2 2025 and FY2026.

• Four chips are now in supply and 12 in design, with a total long-term chip supply value of £241m, up £62m from six months ago.

• Debt refinanced into a single £6m facility with Lloyds, unlocking £2.1m additional working capital and improving financial flexibility.

• High-profile customer wins, including Siemens and a major power and propulsion supplier, plus £10.4m UK Space Agency funding for satellite communications.

Financial highlights

• Chip supply revenue rose from £1.1m to £2.9m year-over-year, with full-year supply revenue expected to reach £6m.

• Gross margin for H1 was 37%, down from 44% year-over-year and below the 40% target, but expected to recover in H2 as NRE revenues increase.

• EBITDA and operating profit were slightly negative in H1 (EBITDA loss £0.2m, operating loss £0.8m), but are forecast to turn positive in H2 due to new contract revenues.

• Cash and cash equivalents at £2.8m as of 30 Nov 2024, down from £5.2m at 31 May 2024; net debt increased to £4.95m.

• Intangible assets increased by £2.6m due to investment in IP and customer co-development; cash decreased to £2.8m.

Outlook and guidance

• Supply revenue is expected to double in FY2026, enabling cash flow positivity by year-end 2026.

• Medium-term ambition is to exceed £60m annual revenue within 3-5 years, with current contracts covering 85% of the supply needed to reach this target.

• Long-term aspiration is £100m annual revenue in 6-10 years, contingent on winning large satellite contracts.

• No need for additional fundraising anticipated; current contracts and supply revenues expected to cover outflows.

• H2 FY25 expected to deliver higher revenues and profits as new contracts ramp up.