Silvaco Group (SVCO) Q4 2025 earnings summary

Executive summary

• Achieved faster-than-expected turnaround execution, with Q4 bookings, revenue, and gross margin above guidance and operating expenses at the low end, resulting in a much lower operating loss than anticipated.

• Secured a second AI/ML FTCO customer, validating broader market potential and driving Q4 revenue above the high end of guidance.

• Cost reduction strategies executed ahead of plan, resulting in improved gross margins and reduced operating expenses.

• Q4 operating loss and cash burn, excluding one-time items, improved and expected to decline further in Q1 2026.

• Full-year 2025 marked by acquisitions, leadership changes, and significant SIP revenue growth.

Financial highlights

• Q4 bookings and revenue reached $18.3 million, both at the high end of guidance; full-year 2025 revenue was $63.1 million, up 6% year-over-year.

• Q4 GAAP gross margin was 83.3%, non-GAAP gross margin 85.6%, up five points sequentially; full-year GAAP gross margin was 78%.

• Q4 GAAP net loss was $7.2 million (EPS $(0.24)); non-GAAP net loss $0.8 million (EPS $(0.03)); full-year GAAP net loss $41.2 million.

• Q4 SIP revenue was $5.1 million, up 483% year-over-year; full-year SIP revenue was $9.7 million, up 98% year-over-year.

• Cash, equivalents, and restricted cash at quarter end were $18.3 million, with $10 million unrestricted.

Outlook and guidance

• Q1 2026 guidance: bookings and revenue between $15 million and $19 million, non-GAAP gross margin around 85%, non-GAAP operating expenses $14.5–$16.5 million.

• Path to non-GAAP operating profitability and positive operating cash flow anticipated during 2026.

• Double-digit revenue growth anticipated for the current calendar year, driven by IP and TCAD.

• IP expected to be the fastest-growing segment in 2026, followed by TCAD, with EDA stable.