Silvaco Group Inc (STU:L3Y)

Q2 2026 Silvaco Group Inc Earnings Call Transcript

Aug 6, 2026 / 09:00 PM GMT

Release Date Price: €6.9 (-4.17%)

Transcript 10-Q8-K

Key Points

Positve

Silvaco Group Inc (SVCO) returned to non-GAAP operating profitability for the first time in almost two years, with a non-GAAP operating profit of $635,000 in Q2 2026.
The company delivered strong 48% year-over-year revenue growth in Q2 2026, with record bookings and revenue in its IP products, which grew 238% year-over-year.
Silvaco Group Inc (SVCO) announced multiple strategic partnerships with NVIDIA, Dassault Systèmes, and Micron, strengthening its position in AI-enabled manufacturing and process development.
The company successfully executed its targeted $20 million in annualized spending reductions, with non-GAAP operating expenses down 7.8% sequentially to $14.8 million.
Silvaco Group Inc (SVCO) expects record revenue in Q4 2026 and double-digit revenue growth in 2027, driven by a strong pipeline and new partnerships.
The company's IP pipeline has grown more than 4x over the last year, indicating significant future growth potential in this segment.
Silvaco Group Inc (SVCO) is leveraging AI to accelerate internal development, with reported productivity gains of up to 30x in prototyping and 11x in source code analysis.
The company's cash position improved, with cash and cash equivalents up almost 20% sequentially to $13 million, and net cash used in operating activities halved to $5.5 million.
Silvaco Group Inc (SVCO) secured a $10 million convertible note investment from Micron, which closed in Q3 2026, providing additional capital and strategic validation.
The company expects to maintain gross margins in the mid-to-upper 80s range, benefiting from restructuring activities and a focus on high-margin products.

Negative

Silvaco Group Inc (SVCO) still reported a GAAP operating loss of $4 million and a GAAP net loss of $3.7 million in Q2 2026, indicating continued GAAP-level unprofitability.
The company's Q3 2026 revenue guidance of $17 million is below the Q2 2026 actual revenue of $17.8 million, reflecting a sequential decline and seasonally soft TCAD demand.
Silvaco Group Inc (SVCO) continues to burn cash, with net cash used in operating activities of $5.5 million in Q2 2026, despite improvements from the prior quarter.
The company's gross margin decreased sequentially by 111 basis points on a non-GAAP basis in Q2 2026, driven by product mix.
Silvaco Group Inc (SVCO) faces lumpiness in quarterly revenue due to its revenue recognition approach, making short-term performance difficult to predict.
The company's FTCO growth is expected to be slow and steady in the near term, with management noting it hasn't yet hit the inflection point in the S-curve.
Silvaco Group Inc (SVCO) is increasing capital expenditures to support GPU capacity for its NVIDIA partnership, which could pressure near-term cash flow.
The company's EDA segment is expected to be less of a major growth driver compared to IP and TCAD, potentially limiting overall growth diversification.
Silvaco Group Inc (SVCO) had to execute significant restructuring activities to achieve profitability, which included severance-related payments and one-time items in Q2 2026.
The company's Q3 2026 bookings guidance of $18 million is only slightly above Q2 2026 actual bookings of $16.2 million, indicating modest near-term demand growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SVCO.OQ - Silvaco Group Inc
Q2 2026 Silvaco Group Inc Earnings Call
Aug 06, 2026 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon, and welcome to Siwaco's second quarter fiscal year 2026 conference call.

All participants are in a listen-only mode.

After the speaker's presentation, there will be a question-and-answer session.

Please note this event is being recorded.

I would now like to turn the conference over to Chris Ziccarelli, Siwaco's CFO. Please proceed.

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Unidentified_2 [2]
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Thank you.

Joining me on the call today is Wally Rines, Silvaco's CEO and Director. As a reminder, a press release highlighting the company's

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