Silvaco Group (SVCO) Q2 2026 earnings summary

Executive summary

• Achieved first non-GAAP operating profit since late 2024, driven by record IP revenue, disciplined expense management, and strategic transformation.

• Q2 2026 revenue rose 48% year-over-year to $17.8 million, with gross profit up 77% to $15.2 million and gross margin expanding to 85%.

• Announced major partnerships with NVIDIA, Dassault Systèmes, and Micron, including a $10 million convertible note, strengthening AI-enabled manufacturing capabilities.

• Launched new AI offerings, including Agentic AI, with customer engagements expected by year-end.

• Completed payments related to a $32.5 million litigation settlement, with no remaining liability as of June 30, 2026.

Financial highlights

• Q2 bookings reached $16.2 million, up 25% year-over-year; revenue was $17.8 million, up 48% year-over-year.

• IP revenue grew 238% year-over-year to $6.0 million, with record bookings and revenue in the segment.

• GAAP gross margin was 85.2%, non-GAAP gross margin 87%, both up significantly year-over-year.

• GAAP operating loss improved to $4.0 million; non-GAAP operating profit was $635,000.

• GAAP net loss was $3.7 million (EPS loss of $0.11); non-GAAP net income was $315,000 (EPS $0.01).

Outlook and guidance

• Q3 2026 guidance: bookings of $18 million ±10%, revenue of $17 million ±10%, non-GAAP gross margin around 88%.

• Expect record revenue and continued operating profitability in Q4, with full-year 2026 revenue above $70 million.

• Projecting double-digit revenue growth and positive cash flow from operations in 2027.

• Approximately $45 million in revenue expected from remaining performance obligations, with 52% recognized over the next 12 months.