Silvaco Group, Inc. Common Stock (SVCO) Market Cap
Silvaco Group, Inc. Common Stock has a market capitalization of $274.5M.
Financials based on reported quarter end 2025-12-31
Price: $8.73
▼ -0.07 (-0.80%)
Market Cap: 274.48M
NASDAQ · time unavailable
CEO: Walden C. Rhines
Sector: Technology
Industry: Software - Application
IPO Date: 2024-05-09
Website: https://www.silvaco.com
Silvaco Group, Inc. Common Stock (SVCO) - Company Information
Market Cap: 274.48M · Sector: Technology
Silvaco Group, Inc. provides technology computer aided design (TCAD) software, electronic design automation (EDA) software, and semiconductor intellectual property (SIP) solutions. The company's TCAD software are used in various applications, such as physical etch and deposition process simulation; calibration of doping profiles and metal oxide semiconductor/bipolar transistors; modeled effects; photonics simulation for solar cell, charge-coupled device (CCD), metal oxide semiconductor image sensor, thin-film transistor (TFT), liquid crystal display, and organic light-emitting diode using ray tracing/finite-difference time domain/timing memory; single event effect and total dose simulation; and stress simulation. Its EDA software solution covers various areas of analog/mixed-signal/radiofrequency circuit simulation; and custom integrated circuits CAD and interconnect modeling, including support for CMOS, bipolar, diode, junction-gate field-effect transistor, silicon on insulator, TFT, high-electron mobility transistor, insulated-gate bipolar transistor, and resistor and capacitor models, as well as provides SPICE modeling services for the semiconductor industry. The company also provides SIP and EDA software and design services, such as standard cell library development; IP migration to new process; embedded memory compilers, such as static random-access memories, read only memories, and register files; library characterization services; and general purpose and custom I/Os. Further, the company provides SIP management tools and SIP. It serves semiconductor manufacturers, original equipment manufacturers, and original design manufacturers that deploys solutions in production flows across various target markets, including display, power devices, automotive, memory, high performance compute, Internet of Things, and 5G/6G mobile markets in the United States and internationally. Silvaco Group, Inc. was incorporated in 2009 and is headquartered in Santa Clara, California.
Analyst Sentiment
Based on 5 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 2 sources)
Consensus Price Target
Low
$17
Median
$19
High
$25
Average
$20
Potential Upside: 126.2%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"SVCO reported a revenue of $18.25M and a net loss of $7.23M for the year ending December 31, 2025. Despite negative net income and cash flows, the company's market performance shows significant price appreciation, with a 1-year change of 34.37% and a year-to-date increase of 67.15%. This performance suggests a positive sentiment in the market. The company holds total assets of $122.64M against liabilities of $47.65M, indicating a solid equity base of $74.99M. However, operating cash flow remains negative at -$9.48M, and no dividends have been paid, pointing to challenges in cash generation. In terms of growth, the revenue is relatively low for a fully operational company, and the negative earnings and cash flow indicate ongoing difficulties. Leverage appears manageable given the negative net debt position. Shareholder returns have been strong from price appreciation, but long-term sustainability will depend on improving profitability and cash flow metrics."
Revenue Growth
Minimal revenue growth with a top line of $18.25M.
Profitability
Negative net income of -$7.23M with further losses predicted.
Cash Flow Quality
Operating cash flow is significantly negative at -$9.48M.
Leverage & Balance Sheet
Strong equity position with total assets significantly exceeding liabilities.
Shareholder Returns
Strong price appreciation of 34.37% over the past year.
Analyst Sentiment & Valuation
Market price at $6.92 with a target consensus of $19.75.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management touts a rapid turnaround, citing Q4 execution that beat guidance on both revenue and gross margin (GAAP 83.3%, non-GAAP 85.6%) and delivered a much lower non-GAAP operating loss (just over $1M). They also raised annualized non-GAAP OpEx reduction expectations to $20M (from at least $15M), and guided continued sequential expense declines into Q1 and further into Q2, alongside cash-flow breakeven in Q2 and positive operating cash flow in Q3. The pressure point in the Q&A was operational timing and mix: the FTCO Asia OEM win did not fully hit Q4 revenue due to contract rev rec (partial Q4 recognition, remainder over term), and the earlier “gating factor” of customer ramp/onboarding is expected to shorten over time as the field message and adoption efficiency improve. Overall, the tone is confident, but analyst focus highlights execution risk around adoption ramp and recognizing booked wins into revenue across multiple quarters.
Growth Catalysts
- Second customer adoption of AI-driven FTCO for manufacturing process development (outside Memory segment)
- TCAD AI bundle momentum: +70% sequential bookings to $9.2M and +34% sequential revenue to $8.7M driven by FTCO adoption
- Semiconductor IP inflection: record IP revenue and bookings >$5M; first full quarter of Mixel revenue post-acquisition
- Core EDA stabilization path after Q4 booking/revenue decline; focus on Jivaro (up to 10x faster post-layout SPICE simulations with sign-off accuracy)
Business Development
- FTCO win with a large OEM in Asia (follow-on question re: rev rec timing; incremental pipeline accelerating)
- Mixel: leveraging the Silvaco sales force to drive growth in Mixel MIPI PHY IP; ramping from custom solutions to production-ready/PRO Pro products
- Jivaro adoption by leading semiconductor companies (at least one major sign-off tool; additional leading customers mentioned)
Financial Highlights
- Q4 bookings: $18.3M (near high end of guided range); Q4 revenue: $18.3M (above high end of guided range)
- Gross margin: GAAP 83.3% and non-GAAP 85.6%; gross margin increased ~5 full points sequentially (well ahead of guidance)
- GAAP operating loss improved to $6.8M; non-GAAP operating loss just over $1.0M (well ahead of Q3 and expectations)
- GAAP EPS: -$0.24; non-GAAP EPS: -$0.03 (Q4)
- OpEx: GAAP operating expenses down ~8% sequentially to $22.0M; non-GAAP operating expenses down 5% sequentially to $16.7M (below midpoint of guidance for Q1)
- Spending/cost of sales mix: total non-GAAP spending (cost of sales + OpEx) decreased from $21.3M in Q3 to $19.3M in Q4 (~-9% sequential); guided similar Q1 sequential reduction and further reductions in Q2
- Restructuring savings commitment raised: annualized non-GAAP operating expense reductions increased from at least $15M to $20M gross annualized non-GAAP spending reductions
- Tax/tariff impacts: Nangate settlement noted as $8.3M restricted cash (used to classify cash/mkt securities); no explicit tax/tariff line-items mentioned in transcript
Capital Funding
- Cash & marketable securities at quarter end: $18.3M (includes $8.3M restricted cash due to Nangate settlement); $10M unrestricted cash referenced as supporting operations into the profitability push
- No buyback or debt amounts disclosed in transcript
Strategy & Ops
- Restructuring priority shift: targeted reductions in support groups and product areas to focus teams on core growth drivers
- Field application vs R&D reallocation: R&D teams limited on direct customer support work; field application teams prioritized customer support
- Customer support cost-of-sales efficiency improvement used to explain gross margin outperformance and sustainability
- Leading AI tools added to accelerate software development
- EDA operating pattern: Q4 sequential decline after Q3 all-time records; management expects short-term stability then return to growth later in 2026
Market Outlook
- Q1 2026 guidance: bookings $15M–$19M; revenue $15M–$19M
- Q1 2026 guidance: non-GAAP gross margin ~85%
- Q1 2026 guidance: non-GAAP operating expenses $14.5M–$16.5M
- Cash flow outlook: approach operating cash flow breakeven in Q2; positive operating cash flow in Q3
- Operating expense trajectory: expects similar sequential reduction in total spending in Q1; expects further reductions in Q2
Risks & Headwinds
- EDA soft spot: significant sequential decline in Q4 after all-time records in Q3; management frames it as stabilization in the short term with growth later
- FTCO rev rec timing risk/constraint: not all recognized in Q4; significant portion recognized in Q4 and remaining revenue recognized over the contract term (multi-quarter pattern)
- Adoption gating factor acknowledged: initial FTCO engagements were service/onboarding heavy; ongoing adoption ramp aims to reduce time-to-revenue (speed is a key execution variable)
Sentiment: MIXED
Note: This summary was synthesized by AI from the SVCO Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.