Silvaco Group (SVCO) Q4 2025 earnings summary

Executive summary

• Achieved faster-than-expected execution of turnaround plan, 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 lower operating expenses and improved operating loss and cash burn, with further improvement expected in Q1 2026.

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

• Strong performance in IP and TCAD segments, with IP bookings in Q4 exceeding the entire prior year and TCAD bookings up 70% sequentially.

Financial highlights

• Q4 bookings and revenue reached $18.3 million, both at the high end of guidance, up 2% year-over-year; 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%, both up sequentially but down year-over-year; full-year GAAP gross margin was 78%.

• Q4 GAAP operating loss improved to $6.8 million; non-GAAP operating loss just over $1 million; full-year non-GAAP net loss was $11.1 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 and marketable securities at quarter end totaled $18.3 million, including $8.3 million restricted cash.

Outlook and guidance

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

• Path to non-GAAP operating profitability and positive operating cash flow anticipated during 2026, with breakeven expected in Q2 and positive cash flow in Q3.

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