Silvaco Group (NASDAQ:SVCO) Posts Quarterly Earnings Results, Hits Estimates

Silvaco Group (NASDAQ:SVCO) issued its earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.01, FiscalAI reports. Silvaco Group had a negative return on equity of 15.63% and a negative net margin of 30.43%.The company had revenue of $17.81 million during the quarter, compared to analyst estimates of $17.90 million.

Here are the key takeaways from Silvaco Group’s conference call:

• Revenue grew 48% year over year to $17.8 million, while bookings increased 25% to $16.2 million. Silvaco also returned to non-GAAP operating profitability with $635,000 of operating income, its first such profit since late 2024.
• Silvaco announced strategic collaborations with NVIDIA and Dassault Systèmes and expanded its relationship with Micron, including a $10 million convertible-note investment. The partnerships are intended to accelerate AI-enabled manufacturing, digital twins, and first-time-right semiconductor process development.
• The IP business was a major near-term growth driver: Q2 IP revenue increased 238% year over year, with record bookings and revenue and a pipeline that expanded more than fourfold. Management expects IP revenue to reach approximately $20 million in 2026, roughly doubling year over year.
• Management expects record quarterly revenue in Q4, full-year 2026 revenue above $70 million, and double-digit revenue growth, non-GAAP operating profitability, and positive operating cash flow in 2027. Q3 revenue guidance of $17 million reflects typical TCAD seasonality, while Q4 is expected to benefit from renewals and a strong pipeline.
• The company has completed its targeted $20 million in annualized cost reductions, with non-GAAP operating expenses declining to $14.8 million in Q2. However, cash used in operating activities remained $5.5 million, and Silvaco plans continued investment in GPU infrastructure and AI tools despite its improving profitability.

Silvaco Group Stock Performance

Shares of Silvaco Group stock traded down $0.96 during trading on Friday, hitting $7.65. 1,023,551 shares of the company’s stock were exchanged, compared to its average volume of 369,220. The business has a 50-day simple moving average of $10.52 and a 200-day simple moving average of $7.98. Silvaco Group has a 52-week low of $3.07 and a 52-week high of $14.39. The stock has a market capitalization of $250.00 million, a price-to-earnings ratio of -10.62 and a beta of 0.63.

Insider Transactions at Silvaco Group

In other Silvaco Group news, Director Katherine S. Ngai-Pesic sold 200,000 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.27, for a total value of $2,254,000.00. Following the sale, the director directly owned 9,176,403 shares of the company’s stock, valued at approximately $103,418,061.81. This represents a 2.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 47.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Silvaco Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Jain Global LLC acquired a new position in Silvaco Group in the fourth quarter valued at approximately $63,000. Barclays PLC grew its stake in shares of Silvaco Group by 53.1% during the 4th quarter. Barclays PLC now owns 16,908 shares of the company’s stock worth $68,000 after purchasing an additional 5,867 shares during the period. Dimensional Fund Advisors LP acquired a new stake in shares of Silvaco Group during the 4th quarter worth approximately $101,000. Bridgeway Capital Management LLC purchased a new position in shares of Silvaco Group during the 2nd quarter valued at approximately $118,000. Finally, Bank of America Corp DE increased its holdings in shares of Silvaco Group by 60.5% during the 2nd quarter. Bank of America Corp DE now owns 26,988 shares of the company’s stock valued at $127,000 after purchasing an additional 10,174 shares in the last quarter.

Analyst Upgrades and Downgrades

SVCO has been the topic of a number of research reports. Needham & Company LLC increased their price objective on Silvaco Group from $10.00 to $18.00 and gave the company a “buy” rating in a report on Monday, May 11th. Weiss Ratings upgraded Silvaco Group from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $14.00 target price on shares of Silvaco Group in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $12.67.

Silvaco Group Company Profile

Silvaco Group, Inc is a provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. Founded in 1984 and headquartered in Santa Clara, California, the company offers a suite of tools for process and device simulation, circuit design, verification, and physical implementation. Silvaco’s core product lines include technology computer-aided design (TCAD) for process modeling, SPICE circuit simulators for analog and digital analysis, and layout and parasitic extraction tools for physical verification.

In addition to its EDA software, Silvaco delivers semiconductor IP in areas such as memory compilers, interface IP (including USB, PCI Express and DDR), and embedded analog/mixed-signal cores.