Silicom (SILC) investor relations material

Executive summary

• Q1 2026 delivered 33% year-over-year revenue growth to $19.1 million, with strong momentum from strategic execution and new design wins across Edge, SmartNIC, and FPGA solutions.

• Four design wins already achieved in 2026, halfway to the annual target, supporting future growth and robust pipeline.

• Positioned for upside in AI inference, post-quantum cybersecurity, and white-label switching, leveraging decades of IP and engineering excellence.

• Trusted by over 200 global Tier-1 customers, with a scalable platform for high-performance networking and hardware acceleration.

• Investments continue in AI inference, Post-Quantum Cryptography, and white label switching as future growth engines.

Financial highlights

• Q1 2026 revenues reached $19.1 million, a 33% increase from $14.4 million in Q1 2025.

• Gross profit was $5.7 million with a gross margin of 30%, nearly flat or slightly improved year-over-year.

• Operating loss narrowed to $1.9 million from $2.4 million in Q1 2025; net loss improved to $1.5 million ($0.25/share non-GAAP), down from $2.1 million ($0.37/share).

• Working capital and marketable securities total $109 million, including $63 million in inventory and $63 million in cash equivalents and securities.

• Shareholders' equity stood at $116 million as of March 31, 2026, with no debt.

Outlook and guidance

• Q2 2026 revenues expected between $20 million and $21 million, up to 40% year-over-year growth at the upper end.

• Full year 2026 revenue guidance raised to $82–83 million, representing about 33% year-over-year growth.

• Double-digit revenue growth anticipated to continue beyond 2026, supported by strong design win momentum.

• Significant AI inference revenue expected to materialize in 2027 rather than 2026.

• Targeting 7–9 design wins for 2026, with four already secured.