greeksoup/ stock research

Silvaco Group, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 4 new, 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue fell 13% year-over-year: Revenue was $16.3 million, against $18.7 million in Q3 2025. Nine-month revenue was $51.9 million, against $44.8 million. Source
  • EDA revenue fell 56%: EDA revenue was $4.6 million, or 28% of third-quarter revenue by product line. Source
  • Jivaro Pro record bookings from four tier-1 wins: Jivaro Pro is the company’s leading RC parasitic reduction solution, with wins spread across multiple end markets. Source
  • GAAP operating loss narrowed: Operating loss was $4.3 million. Total operating expenses were $17,977 thousand, against $23,881 thousand a year earlier. Source
  • Gross bookings fell 15%: Gross bookings were $19.3 million for the quarter, measured as signed contracts and related purchase commitments. Source
  • TCAD bookings reached a Q3 record: TCAD bookings were $10.3 million, up 89%, after a major new tier-1 FTCO customer was won. Source
  • Operating cash use improved significantly: Nine-month net cash used in operating activities was $17,298 thousand, against $24,430 thousand. The CFO said net cash used improved significantly in Q3. Source

“I am pleased with Silvaco’s Q3 results and Q4 guidance”

Walden Rhines, Silvaco’s Chief Executive Officer

Guidance

AreaPeriodFigureAgainst last quarter
Bookings Sourcefourth quarter 2026$21.0 million +/- 10%New
Revenue Sourcefourth quarter 2026$22.0 million +/- 10%New
Non-GAAP gross margin Sourcefourth quarter 2026around 88%Kept
Non-GAAP operating expenses Sourcefourth quarter 2026$16.0 million +/- 5%New
Revenue growth Sourcefourth quarter 2026 versus third quarter 202635% sequentialNew
Revenue growth Sourcefull-year 202617% at midpoint of guided range

What changed from last quarter

  • Guidance raised: The 2027 revenue growth expectation moved to mid-to-high teens from the prior double-digit expectation. Source
  • New guidance: Full-year 2026 revenue growth of 17% at the midpoint of the guided range was stated for the first time in these documents. Source
  • New: David Dutton, the former CEO, was added to the leadership team to lead Sales. Source
  • New: The business was streamlined around two product teams: AI Manufacturing and AI Design. Source

Results and growth drivers

  • Revenue fell 13% year-over-year: Revenue was $16.3 million, against $18.7 million in Q3 2025. Nine-month revenue was $51.9 million, against $44.8 million. Source
  • GAAP net loss narrowed year-over-year: GAAP net loss was $4.6 million. Basic and diluted loss per share was $0.14, against $0.18 in Q3 2025. Source
  • Non-GAAP net loss narrowed too: Non-GAAP net loss was $1.3 million. Non-GAAP basic and diluted loss per share was $0.04, against $0.07 in Q3 2025. Source

Segments and regions

  • TCAD revenue rose 16%: TCAD revenue was $7.6 million, or 46% of third-quarter revenue by product line. Source
  • EDA revenue fell 56%: EDA revenue was $4.6 million, or 28% of third-quarter revenue by product line. Source
  • SIP revenue rose 141%: SIP revenue was $4.1 million, or 26% of third-quarter revenue by product line. Source
  • Third-quarter revenue split by region: Revenue split was Americas 39%, APAC 49% and EMEA 12%. By country, the United States was 39% and China 17%. Source

“As the business accelerates, we are achieving meaningful financial milestones.”

Chris Zegarelli, Silvaco’s Chief Financial Officer

Products and customers

  • Jivaro Pro record bookings from four tier-1 wins: Jivaro Pro is the company’s leading RC parasitic reduction solution, with wins spread across multiple end markets. Source
  • First internally developed MIPI controller sold: The company sold its first internally developed MIPI controller, paired with its industry-leading MIPI PHYs. Source
  • 2nm MIPI combo solution delivered: A fully functional 2nm MIPI C-PHY/D-PHY combo solution was delivered during the quarter. Source

Costs and operating expenses

  • GAAP operating loss narrowed: Operating loss was $4.3 million. Total operating expenses were $17,977 thousand, against $23,881 thousand a year earlier. Source
  • Non-GAAP operating loss narrowed: Non-GAAP operating loss was $1.0 million, against $2.6 million a year earlier. Source
  • Restructuring costs excluded from non-GAAP: Restructuring, executive severance and other related costs of $291 thousand in the quarter were added back to reach non-GAAP operating loss. Source
  • Stock-based compensation added back: Stock-based compensation of $2,151 thousand in the quarter was added back to reach non-GAAP operating loss. Source

“Looking forward, we are excited to continue seeing the results of our strategic transformation.”

Chris Zegarelli, Silvaco’s Chief Financial Officer

Margins and pricing

  • GAAP gross margin rose to 84%: GAAP gross margin was 84%, up 613 basis points from a year earlier. Source
  • Non-GAAP gross margin rose to 85%: Non-GAAP gross margin was 85%, up 509 basis points from a year earlier. Source
  • Non-GAAP gross profit below prior year: Non-GAAP gross profit was $13,896 thousand, against $14,973 thousand in Q3 2025. The nine-month figure was $44,974 thousand. Source

Demand and order book

  • Gross bookings fell 15%: Gross bookings were $19.3 million for the quarter, measured as signed contracts and related purchase commitments. Source
  • TCAD bookings reached a Q3 record: TCAD bookings were $10.3 million, up 89%, after a major new tier-1 FTCO customer was won. Source
  • Agentic AI engagements with large tech firms: Management said the company engaged with two of the largest global technology companies on its Agentic AI offerings. Source

Cash, balance sheet and capital

  • Operating cash use improved significantly: Nine-month net cash used in operating activities was $17,298 thousand, against $24,430 thousand. The CFO said net cash used improved significantly in Q3. Source
  • Cash ended quarter at $22.0 million: Cash and cash equivalents were $22.0 million at quarter-end, which management described as the most unrestricted cash since Q2’25. Source
  • Nine-month financing from stock and note: Nine-month financing inflows were $12.2 million from common stock and $10.0 million from a convertible note. Source
  • Share count rose this year: Shares outstanding were 34,073,072 at September 30, 2026, against 30,948,403 at December 31, 2025. Source

Strategy and leadership

  • Business streamlined into two product teams: Two focused teams cover AI Manufacturing (TCAD multiphysics, FTCO and related technologies) and AI Design (semiconductor IP and complementary EDA). Source
  • Acceleration tied to past changes: Management linked the acceleration to streamlined operations, a focused roadmap and deeper relationships with strategic customers. Source
  • Former CEO David Dutton leads Sales: David Dutton, the company’s former CEO, was added to the leadership team to lead Sales. Source

Coming up, as management said on 4 November 2026

  • 2027 profitability and cash generation to grow: Management expects higher growth to keep expanding profitability and cash generation in 2027. Source

Figures management reported

FigureReported
Tier-1 customer wins, Jivaro Pro Source4
Major new tier-1 FTCO customer Source1

Risks management discussed

  • Financial: Reported bookings can be adjusted or cancelled before the customer's obligations are satisfied. Source
  • Financial: Items excluded from non-GAAP guidance could be material to GAAP results, and GAAP guidance is not provided. Source

Earlier plans management reported on

  • Not stated: Management said it is guiding to record revenue in the fourth quarter of 2026, following the earlier expectation given in the prior release. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.