Silvaco Group, Inc. (SVCO)
NASDAQ:SVCO
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Silvaco Group, Inc.
(NASDAQ:SVCO)
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Rating:63Neutral
Price Target:
$12.00
▲(40.68% Upside)
Action:Reiterated
Date:06/03/26
The score is supported by strong technical momentum and a notably improved earnings-call outlook toward near-term non-GAAP profitability and better cash flow. Offsetting these positives are weak underlying financial performance (large losses and cash burn) and a less supportive valuation signal due to a negative P/E.
Positive Factors
Very high gross margins
Sustained mid-to-upper‑80s gross margins reflect a scalable software/TCAD model with significant pricing power and low incremental costs. High gross margins enable operating leverage as revenue grows, supporting R&D and product investment without proportionate cost increases over the next several quarters.
Negative Factors
Significant cash burn
Large negative operating and free cash flows indicate the business is consuming cash faster than it generates it, creating reliance on external funding or equity raises. This elevates dilution and refinancing risk and constrains ability to invest opportunistically without securing new liquidity over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins
Sustained mid-to-upper‑80s gross margins reflect a scalable software/TCAD model with significant pricing power and low incremental costs. High gross margins enable operating leverage as revenue grows, supporting R&D and product investment without proportionate cost increases over the next several quarters.
Read all positive factors
Silvaco Group, Inc. (SVCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$436.29M
Dividend YieldN/A
Average Volume (3M)130.19K
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth15.28%
EPS Growth58.47%
CountryUS
Employees279
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.93
Shares Outstanding32,681,240
10 Day Avg. Volume111,493
30 Day Avg. Volume130,194
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.61
Price to Sales (P/S)1.91
P/FCF Ratio-3.49
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue6.05
Enterprise Value/Gross Profit7.67
Enterprise Value/Ebitda-15.28
Forecast
1Y Price Target
$15.17Price Target Upside77.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.05
Revenue Forecast (FY)$72.40M
Silvaco Group, Inc. Business Overview & Revenue Model
Company Description
Silvaco Group, Inc., founded in 2009 and headquartered in Santa Clara, California, delivers critical technology solutions for the semiconductor industry. The company specializes in providing Technology Computer-Aided Design (TCAD) software, Electr...
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, integrated device manufacturers, and research organizations). Revenue is typically generated through (1) tim...
Silvaco Group, Inc. Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents materially more positive developments than negatives: strong year-over-year top-line growth (+26% bookings and revenue), robust gross margins (mid- to upper-80s), significant TCAD/FTCO momentum, dramatic year-over-year IP growth and a doubling pipeline, sequential cost reductions, and improving cash trends. Lowlights center on near-term EDA softness, sequential lumpiness in IP due to timing, GAAP losses and a modest absolute cash balance, and the early-stage (and potentially lumpy) nature of FTCO adoption. Overall the positives (growth, margin expansion, cost reductions, FTCO traction, and guidance toward non-GAAP profitability) outweigh the negatives.Positive Updates
Strong Top-Line Growth
Q1 bookings of $17.2M and revenue of $17.8M, both +26% year-over-year and above consensus and the midpoint of guidance.
Negative Updates
EDA Segment Weakness
EDA bookings declined to $3.8M and revenue to $4.1M in Q1 (sequential decline). Management expects EDA to be flat or down in the near term while refocusing on a handful of core products; recovery is expected to be gradual.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 bookings of $17.2M and revenue of $17.8M, both +26% year-over-year and above consensus and the midpoint of guidance.
Read all positive updates
Company Guidance
For Q2 FY2026 Silvaco guided to bookings of $19.0M ±10% (≈$17.1M–$20.9M), revenue of $18.0M ±10% (≈$16.2M–$19.8M), non‑GAAP gross margin around 88% (management expects gross margins to remain in the mid‑ to upper‑80s), and non‑GAAP operating expenses of $15.5M ±5% (≈$14.7M–$16.3M); management said this should deliver non‑GAAP operating profitability in Q2 (first since Q4‑2024), expects to close a $10M revolving credit facility in Q2, anticipates signing one more FTCO customer in Q2, reiterated a target of positive operating cash flow by Q3, and noted unrestricted cash grew ~10% sequentially in Q1 with remaining performance obligations/backlog of about $46.6M.Silvaco Group, Inc. Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.73M | 63.06M | 59.68M | 54.25M | 46.47M | 41.96M |
| Gross Profit | 52.67M | 49.37M | 47.64M | 44.89M | 37.59M | 33.31M |
| EBITDA | -26.43M | -40.48M | -36.74M | 1.74M | -1.32M | -96.00K |
| Net Income | -27.79M | -41.21M | -39.40M | -316.00K | -3.93M | -1.84M |
Balance Sheet | ||||||
| Total Assets | 111.45M | 122.64M | 142.34M | 40.88M | 38.72M | 35.73M |
| Cash, Cash Equivalents and Short-Term Investments | 10.93M | 10.03M | 82.68M | 4.42M | 5.48M | 6.70M |
| Total Debt | 2.00M | 3.08M | 1.69M | 3.93M | 8.47M | 501.00K |
| Total Liabilities | 34.74M | 47.65M | 42.26M | 31.48M | 28.70M | 21.36M |
| Stockholders Equity | 76.71M | 74.99M | 100.08M | 9.40M | 10.02M | 14.37M |
Cash Flow | ||||||
| Free Cash Flow | -44.31M | -34.52M | -20.28M | 841.00K | -2.19M | -2.73M |
| Operating Cash Flow | -43.79M | -33.91M | -19.77M | 1.18M | -2.10M | -2.64M |
| Investing Cash Flow | 23.32M | 33.72M | -66.53M | -339.00K | -89.00K | 234.00K |
| Financing Cash Flow | 1.98M | -2.21M | 101.30M | -1.65M | 624.00K | 60.00K |
Silvaco Group, Inc. Technical Analysis
Positive
8.53
Price Trends
10.39
Positive
7.57
Positive
6.28
Positive
Market Momentum
0.70
Negative
69.03
Neutral
75.25
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 8.53 is below the 20-day moving average (MA) of 11.31, below the 50-day MA of 10.39, and above the 200-day MA of 6.28, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 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 2 risk factors in its most recent earnings report. Silvaco Group, Inc. reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $436.29M | -15.07 | -35.82% | ― | 15.28% | 58.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $101.56M | -6.75 | -20.76% | ― | -4.78% | -90.32% | |
53 Neutral | $121.24M | -0.24 | -167.42% | ― | 33.44% | -750.46% | |
51 Neutral | $151.44M | -2.87 | 73.80% | ― | 110.30% | 57.62% | |
49 Neutral | $60.51M | 29.02 | 2.62% | ― | -6.00% | -82.74% |
* Technology Sector Average
SVCO
Silvaco Group, Inc.
13.35
8.81
194.05%
SSTI
SoundThinking Inc
7.84
-7.73
-49.65%
MAPS
WM Technology
0.38
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TEAD
Teads Holding
1.25
-1.18
-48.56%
MRT
Marti Technologies
1.76
-0.69
-28.16%
Silvaco Group, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Silvaco Group Stockholders Reelect Board at Annual Meeting
Positive
Apr 30, 2026
Silvaco Group, Inc. held its Annual Meeting of Stockholders on April 22, 2026, with approximately 74% of the 31,423,487 outstanding common shares represented in person or by proxy, underscoring strong shareholder participation. At the meeting, sto...
Private Placements and FinancingRegulatory Filings and Compliance
Silvaco Group Adopts ATM Equity Offering Program
Neutral
Mar 13, 2026
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 tradi...
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.