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Silvaco Group, Inc. (SVCO)
NASDAQ:SVCO
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Silvaco Group, Inc. (SVCO) AI Stock Analysis

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SVCO

Silvaco Group, Inc.

(NASDAQ:SVCO)

Rating:49Neutral
Price Target:
$4.50
▼(-3.23% Downside)
Silvaco Group, Inc. faces significant financial challenges with declining revenue and profitability issues, which heavily impact the overall score. While technical indicators are neutral, the valuation is poor due to negative earnings. However, recent corporate events, including strategic acquisitions and leadership changes, provide a positive outlook for potential future improvements.
Positive Factors
Acquisitions
The recent acquisition of Mixel Inc., Tech-X, and CDNS' PPC division, as well as progress in scaling FTCO, are positives for Silvaco Group, Inc.
Design Wins
Continued design win momentum, including a GaN power application with Fraunhofer ISIT using Silvaco's DTCO, is a positive sign.
Revenue Growth
Silvaco's CY25 revenue growth is projected to be 400 basis points above its large-cap peers, indicating a strong performance outlook.
Negative Factors
Guidance and Outlook
Silvaco lowered its FY25 guidance on both the top and bottom lines due to near-term macro headwinds and tariff uncertainty.
Operational Expenses
PPC and Tech-X acquisitions incur an estimated $1-2M per quarter in operational expense headwind before seeing a more material sales impact.
Sales Outlook
CY25 sales outlook has continually been revised downward from +16% Y/Y to in line with CDNS' ~12% Y/Y outlook.

Silvaco Group, Inc. (SVCO) vs. SPDR S&P 500 ETF (SPY)

Silvaco Group, Inc. Business Overview & Revenue Model

Company DescriptionSilvaco 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 MoneySilvaco Group, Inc. generates revenue primarily through the sale of its electronic design automation (EDA) software and semiconductor IP solutions. The company's revenue model is based on software licensing, where customers purchase licenses to use Silvaco's EDA tools for a specified period or perpetually. Additionally, Silvaco offers maintenance and support services that provide ongoing updates and technical assistance, contributing to recurring revenue streams. The company also engages in partnerships with semiconductor manufacturers and design firms, which can lead to collaborative projects and joint ventures that enhance its market presence and revenue opportunities. Furthermore, Silvaco may generate income from consulting services, where it assists clients in optimizing their design processes and implementing its software solutions effectively.

Silvaco Group, Inc. Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
While Silvaco achieved several strategic milestones, including strong customer traction, key partnerships, and record future revenue expectations, the company faced challenges with a decline in Q3 revenue, significant order delays from China, and increased operating expenses resulting in a net loss for the quarter.
Q3-2024 Updates
Positive Updates
Strong Customer Traction
Signed 14 new customers in Q3, bringing the year-to-date new customer wins to 33. Strong demand in power, automotive, and IoT markets.
Strategic Partnerships and Collaborations
Announced partnerships with Purdue, Stanford, and Arizona State University to address talent shortages and enhance research.
Inclusion in Russell Indices
Silvaco was added to the Russell 2000, Russell 3000, and Russell Microcap indices, increasing visibility and shareholder base.
ISO 9001 Certification
Achieved ISO 9001 certification for TCAD, ADA, and NIP products in October, enhancing credibility and quality assurance.
Record Quarterly Revenue Expected in Q4
Guidance for Q4 revenue is $18.1 million to $21.2 million, which would be a record for the company.
Negative Updates
Decline in Revenue and Bookings
Q3 revenue was $11 million, down 27% year-over-year, and bookings were $9.9 million, a decrease of 21% year-over-year.
Challenges in China
Delayed orders from China, which represents 17% of the year-to-date revenue. The macroeconomic environment led to order delays.
SIP Revenue Decline
SIP revenue is down $2.1 million or 34% year-to-date, impacted by delays in renewing strategic refill agreements and order delays in Asia.
Increased Operating Expenses
Non-GAAP operating expenses were $11.3 million, up from $9.9 million in the same period last year, due to increased costs in G&A, R&D, and sales and marketing.
Net Loss for the Quarter
Reported a non-GAAP net loss of $1.8 million compared to a non-GAAP net income of $2.3 million in Q3 2023.
Company Guidance
During Silvaco's Q3 2024 earnings call, the company provided guidance indicating strong growth expectations for the fourth quarter and the full year. They anticipate gross bookings in the range of $64 million to $67 million for the year, representing a 10% to 15% increase from 2023. Revenue is expected to reach between $60 million and $63 million, marking a 10% to 16% year-over-year growth. For Q4, they project bookings between $18.5 million and $21.5 million, and revenue from $18.1 million to $21.2 million, which would set a new record for quarterly revenue. Silvaco also expects to maintain non-GAAP gross margins between 85% and 87% for the year. The company remains committed to achieving long-term financial targets of 15% to 25% top-line growth, 90% non-GAAP gross margin, and 25% plus non-GAAP operating margin through market expansion and strategic acquisitions.

Silvaco Group, Inc. Financial Statement Overview

Summary
Silvaco Group, Inc. faces significant operational and financial challenges. Despite strong gross margins, the company struggles with profitability and cash flow generation. The balance sheet is relatively stable with low leverage, but consistent net losses and reliance on external financing raise sustainability concerns.
Income Statement
35
Negative
Silvaco Group, Inc. shows declining revenue growth with fluctuating profitability. The TTM data indicates a revenue decline from the previous annual report, compounding concerns with negative EBIT and EBITDA margins. The gross profit margin remains healthy at 77.39% TTM, but the net profit margin is deeply negative at -103.76%, reflecting substantial operational challenges.
Balance Sheet
45
Neutral
The company maintains a reasonable debt-to-equity ratio of 0.02, suggesting low financial leverage. However, the equity ratio has weakened to 60.50% TTM, and the return on equity is negative due to net losses. The balance sheet shows strong cash reserves relative to liabilities, providing some buffer against financial instability.
Cash Flow
30
Negative
Cash flow analysis reveals negative operating cash flow, with free cash flow also negative and declining. The TTM figures indicate challenges in turning revenue into positive cash flow, highlighted by a negative free cash flow to net income ratio. The company is heavily reliant on financing activities, raising concerns about long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue54.97M59.68M54.25M46.47M41.96M40.28M
Gross Profit43.24M47.64M44.89M37.59M33.31M31.61M
EBITDA-29.23M-37.11M1.74M-1.11M-2.37M4.46M
Net Income-31.08M-39.40M-316.00K-3.93M-1.84M2.55M
Balance Sheet
Total Assets127.63M142.34M40.88M38.72M35.73M41.91M
Cash, Cash Equivalents and Short-Term Investments55.48M82.68M4.42M5.48M6.70M9.72M
Total Debt5.21M1.69M3.93M8.47M501.00K3.49M
Total Liabilities48.04M42.26M31.48M28.70M21.36M24.67M
Stockholders Equity79.59M100.08M9.40M10.02M14.37M17.24M
Cash Flow
Free Cash Flow39.55M-20.28M841.00K-2.19M-2.73M5.29M
Operating Cash Flow-27.59M-19.77M1.18M-2.10M-2.64M5.78M
Investing Cash Flow29.15M-66.53M-339.00K-89.00K234.00K-1.60M
Financing Cash Flow-6.72M101.30M-1.65M624.00K60.00K2.33M

Silvaco Group, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.65
Price Trends
50DMA
4.64
Positive
100DMA
4.68
Negative
200DMA
5.94
Negative
Market Momentum
MACD
0.01
Negative
RSI
51.34
Neutral
STOCH
37.12
Neutral
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 4.65 is above the 20-day moving average (MA) of 4.54, above the 50-day MA of 4.64, and below the 200-day MA of 5.94, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVCO.

Silvaco Group, Inc. Risk Analysis

Silvaco Group, Inc. disclosed 57 risk factors in its most recent earnings report. Silvaco Group, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Silvaco Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$183.16M13.5322.69%2.37%
58
Neutral
$260.47M-28.14%14.78%21.87%
56
Neutral
$6.56B-1.650.45%6.25%14.92%10.98%
55
Neutral
$151.13M-68.18%18.53%-16.24%
52
Neutral
-18.56%69.22%
49
Neutral
$141.28M-34.26%
44
Neutral
$460.83M0.29104.83%-31.64%-55.76%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SVCO
Silvaco Group, Inc.
4.92
-10.47
-68.03%
AEYE
AudioEye
12.28
-10.04
-44.98%
MAPS
WM Technology
1.17
0.19
19.39%
FRGE
Forge Global Holdings
18.82
-3.83
-16.91%
VCSA
Vacasa
5.39
2.14
65.85%
NXTT
Next Technology Holding
0.60
-0.73
-54.89%

Silvaco Group, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Silvaco Group Appoints Walden Rhines as New CEO
Positive
Aug 26, 2025

On August 21, 2025, Silvaco Group, Inc. announced the appointment of Walden C. Rhines, Ph.D., as the new CEO following the departure of Dr. Babak Taheri, who led the company for nearly seven years and oversaw its IPO. Rhines, who has been a board member since 2022, brings extensive experience from his previous roles at Cornami, Inc., Qorvo, Inc., and Mentor Graphics Corporation. The transition marks a significant moment for Silvaco as it aims to capitalize on its market opportunities in semiconductor design automation, with Rhines committed to maximizing shareholder value.

M&A TransactionsBusiness Operations and Strategy
Silvaco Group Completes Acquisition of Mixel Group
Positive
Aug 4, 2025

On August 4, 2025, Silvaco Group, Inc. announced the completion of its acquisition of Mixel Group, Inc., a company known for low-power, high-performance mixed-signal connectivity IP solutions. This strategic acquisition aims to enhance Silvaco’s capabilities in providing innovative connectivity semiconductor IP by integrating Mixel’s proven technologies and engineering excellence. The Mixel team will join Silvaco’s Semiconductor IP Business Unit, which is expected to accelerate innovation and expand customer value. This move positions Silvaco to bring new solutions to market faster and strengthen its industry partnerships.

M&A TransactionsBusiness Operations and Strategy
Silvaco Group Acquires Mixel to Boost Semiconductor IP
Positive
Jul 29, 2025

On July 29, 2025, Silvaco Group, Inc. announced its acquisition of Mixel Group, Inc., a provider of low-power, high-performance mixed-signal connectivity IP solutions. The acquisition, expected to close by August 1, 2025, will enhance Silvaco’s semiconductor IP offerings, particularly in high-growth markets such as mobile, automotive, VR, AR, IoT, and robotics. This strategic move is aimed at strengthening Silvaco’s position in the semiconductor IP market by leveraging Mixel’s expertise in mixed-signal design and expanding its reach into advanced process nodes and a broader range of semiconductor applications.

Executive/Board ChangesShareholder Meetings
Silvaco Group Approves Key Amendments at Annual Meeting
Neutral
May 28, 2025

On May 22, 2025, Silvaco Group, Inc. held its Annual Meeting where 83.61% of the outstanding shares were represented. During the meeting, stockholders elected Class 1 directors and approved an amendment to the company’s Certificate of Incorporation allowing for the removal of directors by stockholders without cause.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025