Silvaco Group (SVCO) Q1 2026 earnings summary

Executive summary

• Q1 2026 bookings and revenue both rose 26% year-over-year to $17.2 million and $17.8 million, respectively, exceeding guidance and consensus, driven by acquisitions and demand for TCAD and IP products.

• Gross profit increased 38% to $15.3 million, with GAAP gross margin improving to 86.4% and non-GAAP gross margin to 87.9%, reflecting cost reductions and higher revenue.

• GAAP operating loss narrowed to $5.7 million from $19.6 million in Q1 2025; non-GAAP operating loss was $471,000, with guidance for non-GAAP operating profitability in Q2.

• AI-driven FTCO business gained momentum with new customer wins, expanded functionality, and a strategic pivot to embed AI across products.

• Unrestricted cash grew sequentially for the first time since IPO, reaching $10.9 million at quarter-end.

Financial highlights

• Q1 bookings: $17.2 million; Q1 revenue: $17.8 million, both up 26% year-over-year.

• GAAP gross margin: 86.4%; non-GAAP gross margin: 87.9%, both up significantly year-over-year.

• GAAP operating loss: $5.7 million; non-GAAP operating loss: $471,000.

• GAAP net loss: $5.9 million (EPS loss $0.19); non-GAAP net loss: $574,000 (EPS loss $0.02).

• Cash and cash equivalents at quarter-end totaled $10.9 million.

Outlook and guidance

• Q2 2026 guidance: bookings of $19 million ±10%, revenue of $18 million ±10%.

• Non-GAAP gross margin expected around 88%; non-GAAP operating expenses of $15.5 million ±5%.

• Expecting non-GAAP operating profitability in Q2 and positive operating cash flow by Q3.

• Management expects restructuring, including workforce reductions and site closures, to yield significant annualized operating expense reductions.

• Continued growth anticipated from acquisitions and demand for TCAD, EDA, and SIP solutions.