Silvaco Group, Inc. (SVCO) AI Stock Analysis

• Market Cap: $199.34M
• Dividend Yield: N/A
• Average Volume (3M): 130.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 15.40%
• EPS Growth: 40.28%
• Country: US
• Employees: 279
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 31,440,907
• 10 Day Avg. Volume: 111,493
• 30 Day Avg. Volume: 130,194
• PEG Ratio: 0.32
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.91
• P/FCF Ratio: -3.49
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: -19.28
• 1Y Price Target: $8.33
• Price Target Upside: 31.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $64.48M

• Rating: 53 Neutral
• Price Target: $6.00 ▼(-5.36% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by heavy losses and significant cash burn despite strong revenue growth and high gross margins. Technicals are supportive but look overbought, and valuation is constrained by negative earnings. The latest earnings call improves the outlook with stronger guidance, cost cuts, and a timeline toward cash-flow breakeven, but liquidity and execution risks remain meaningful.

Positive Factors

High gross margins

Sustained gross margins near 80% reflect a highly scalable, software‑centric business with low incremental cost to serve. Over a multi‑quarter horizon this margin durability supports funding for R&D and reduced sensitivity to revenue mix swings, improving the path to operating leverage as top line grows.

IP and TCAD product momentum

Record IP booking and revenue growth—driven by the Mixel acquisition and product-specific advantages (MIPI PHY)—creates a durable, higher‑margin revenue stream and diversifies reliance on EDA. Combined with rapid TCAD adoption (FTCO), this expands addressable market and supports multi‑quarter revenue runway.

Conservative leverage

Very low debt levels provide structural financial flexibility while the company executes its turnaround. Limited leverage reduces default and interest burden risk, giving management optionality for capital allocation or M&A even if operating cash flow recovery takes longer than planned.

Negative Factors

Deep negative cash flow

Sustained large negative operating and free cash flows reduce financial runway and force reliance on external financing or equity dilution if not reversed. Over several quarters this constrains investment, heightens execution risk for product launches, and makes the breakeven timeline critical to credibility.

Material GAAP losses

Deep GAAP losses and large negative margins erode equity and shareholder returns, indicating the current cost structure outpaces revenue. Persisting losses over multiple quarters increase the probability of additional cost actions, restructuring risk, or external capital needs that can dilute long‑term shareholder value.

Limited unrestricted liquidity and reliance on ATM

Management's use of an ATM program signals structural reliance on equity markets to bolster liquidity given modest unrestricted cash (~$10M year‑end per the call). While providing flexibility, it also increases the risk of dilution and demonstrates limited internal cash cushion during the multi‑quarter recovery.

Silvaco Group, Inc. Business Overview & Revenue Model

Company Description

Silvaco Group, Inc. provides technology computer aided design (TCAD) software, electronic design automation (EDA) software, and semiconductor intellectual property (SIP) solutions. The company's TCAD software are used in various applications, such as physical etch and deposition process simulation; calibration of doping profiles and metal oxide semiconductor/bipolar transistors; modeled effects; photonics simulation for solar cell, charge-coupled device (CCD), metal oxide semiconductor image sensor, thin-film transistor (TFT), liquid crystal display, and organic light-emitting diode using ray tracing/finite-difference time domain/timing memory; single event effect and total dose simulation; and stress simulation. Its EDA software solution covers various areas of analog/mixed-signal/radiofrequency circuit simulation; and custom integrated circuits CAD and interconnect modeling, including support for CMOS, bipolar, diode, junction-gate field-effect transistor, silicon on insulator, TFT, high-electron mobility transistor, insulated-gate bipolar transistor, and resistor and capacitor models, as well as provides SPICE modeling services for the semiconductor industry. The company also provides SIP and EDA software and design services, such as standard cell library development; IP migration to new process; embedded memory compilers, such as static random-access memories, read only memories, and register files; library characterization services; and general purpose and custom I/Os. Further, the company provides SIP management tools and SIP. It serves semiconductor manufacturers, original equipment manufacturers, and original design manufacturers that deploys solutions in production flows across various target markets, including display, power devices, automotive, memory, high performance compute, Internet of Things, and 5G/6G mobile markets in the United States and internationally. Silvaco Group, Inc. was incorporated in 2009 and is headquartered in Santa Clara, California.

How the Company Makes Money

Silvaco primarily makes money by licensing its EDA/TCAD software to customers in the semiconductor ecosystem (e.g., chipmakers, foundries, and related R&D organizations). Revenue is typically generated through (1) time-based or term software licenses and related renewals that grant customers access to specific tool suites and capabilities; (2) maintenance and support contracts (often bundled with or sold alongside licenses) that provide updates, technical support, and continued product upgrades; and (3) professional services such as consulting, training, and custom engagements to help customers deploy tools, build models, and integrate Silvaco’s software into their design and simulation flows. Any specific breakdown of revenue by product line, named strategic partnerships, or customer concentration details is null.

Silvaco Group, Inc. Financial Statement Overview

Summary

Strong recent revenue growth (~63% YoY) and consistently high gross margins (~78–83%) are positives, but they are outweighed by sharply deteriorated profitability (2025 net margin around -65%) and deeply negative operating/free cash flow in 2024–2025. The balance sheet is lightly levered, yet ongoing losses and cash burn elevate execution and liquidity risk.

Income Statement

Revenue growth is strong in the most recent year (2025 annual revenue up ~63% vs. 2024), and gross margins remain very high and fairly stable (~78–83%), consistent with a scalable software model. However, profitability has deteriorated sharply: the company moved from near break-even in 2023 to deeply negative results in 2024–2025 (2025 net margin around -65% with sizeable operating losses). Overall, growth and gross profitability are clear strengths, but the current cost structure is overwhelming the revenue base.

Balance Sheet

Leverage appears very conservative, with low debt relative to equity in recent periods (debt-to-equity ~0.02 in 2024 and ~0.04 in 2025). The key weakness is shareholder value creation: returns on equity are materially negative in 2024–2025, reflecting large net losses. Equity also declined from 2024 to 2025, consistent with continued losses, but the balance sheet still looks lightly levered and comparatively well-capitalized.

Cash Flow

Cash generation has weakened meaningfully: operating cash flow and free cash flow are deeply negative in 2024–2025, with 2025 free cash flow worse than 2024 in absolute dollars (despite the provided positive free cash flow growth figure). While free cash flow broadly tracks net income (free cash flow to net income near ~1 in 2024–2025), the core issue is the size of the cash burn, which reduces financial flexibility if sustained.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.06M	59.68M	54.25M	46.47M	41.96M
Gross Profit	49.37M	47.64M	44.89M	37.59M	33.31M
EBITDA	-10.20M	-36.74M	1.74M	-1.32M	-96.00K
Net Income	-41.21M	-39.40M	-316.00K	-3.93M	-1.84M
Balance Sheet
Total Assets	122.64M	142.34M	40.88M	38.72M	35.73M
Cash, Cash Equivalents and Short-Term Investments	10.03M	82.68M	4.42M	5.48M	6.70M
Total Debt	3.08M	1.69M	3.93M	8.47M	501.00K
Total Liabilities	47.65M	42.26M	31.48M	28.70M	21.36M
Stockholders Equity	74.99M	100.08M	9.40M	10.02M	14.37M
Cash Flow
Free Cash Flow	-34.52M	-20.28M	841.00K	-2.19M	-2.73M
Operating Cash Flow	-33.91M	-19.77M	1.18M	-2.10M	-2.64M
Investing Cash Flow	33.72M	-66.53M	-339.00K	-89.00K	234.00K
Financing Cash Flow	-2.21M	101.30M	-1.65M	624.00K	60.00K

Silvaco Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVCO, the sentiment is Positive. The current price of 6.34 is above the 20-day moving average (MA) of 4.04, above the 50-day MA of 4.14, and above the 200-day MA of 4.71, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 82.45 is Negative, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVCO.

Silvaco Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SVCO	53 Neutral	$199.34M	-2.92	-33.56%	―	15.40%	40.28%
TEAD	53 Neutral	$61.44M	-0.12	-127.56%	―	30.91%	-1632.95%
MAPS	50 Neutral	$101.20M	44.82	3.65%	―	0.59%	―
SSTI	49 Neutral	$82.29M	-10.87	-12.81%	―	-1.83%	-642.89%
MRT	45 Neutral	$157.42M	-5.81	105.93%	―	―	―

Silvaco Group, Inc. Corporate Events

Silvaco Group Adopts ATM Equity Offering Program

On March 13, 2026, Silvaco Group, Inc. entered into an Open Market Sale Agreement with Jefferies LLC that allows the company, at its discretion, to sell up to $15 million of its common stock through at-the-market offerings on Nasdaq or other trading venues. The shares will be issued under an effective shelf registration statement and related prospectus supplement filed with the U.S. Securities and Exchange Commission.

Under the agreement, Jefferies will act as sales agent, using commercially reasonable efforts to execute the company’s instructions, and will receive up to 3.0% of the gross sales price of any shares sold, plus reimbursed expenses. Silvaco is not obligated to sell any shares and either party can suspend or terminate the offering, while the company has provided customary indemnification, representations, warranties, and covenants to the agent, underscoring a flexible capital-raising mechanism that could strengthen liquidity if utilized.

The most recent analyst rating on (SVCO) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on Silvaco Group, Inc. stock, see the SVCO Stock Forecast page.

Silvaco Aligns Bylaws With Charter On Director Removal

On February 13, 2026, Silvaco Group, Inc. implemented Amended and Restated Bylaws approved by its Board of Directors to align the stockholder approval threshold for removing directors with the standards set in its Amended and Restated Certificate of Incorporation. This governance adjustment standardizes removal procedures across the company’s governing documents, potentially providing greater clarity and consistency for shareholders and board operations.

The change reflects a tightening of internal governance alignment, which may reduce ambiguity in director removal processes and help mitigate potential disputes over corporate control. For investors and other stakeholders, the move signals continued attention to formal corporate governance frameworks, which can be an important factor in assessing board accountability and long-term oversight stability.

The most recent analyst rating on (SVCO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Silvaco Group, Inc. stock, see the SVCO Stock Forecast page.

Silvaco Issues Shares to Settle Tech-X Acquisition Obligations

On February 9, 2026, Silvaco Group, Inc. filed a prospectus supplement with the SEC covering the issuance of 167,281 shares of common stock to John Cary, a former equityholder of Tech-X Corporation. The shares form part of the consideration for Silvaco’s acquisition of Tech-X, settling contingent earnout milestones and post-closing purchase price adjustments in stock instead of cash.

The issuance is made under Silvaco’s effective Form S-3 shelf registration statement and will not generate cash proceeds for the company. This structure underscores Silvaco’s use of equity as a tool to finalize acquisition-related obligations while preserving cash, which may affect existing shareholders through dilution but supports the company’s broader M&A and capital allocation strategy.

The most recent analyst rating on (SVCO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Silvaco Group, Inc. stock, see the SVCO Stock Forecast page.