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Silvaco Group, Inc.
(NASDAQ:SVCO)
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Rating:51Neutral
Price Target:
$7.50
▼(-3.35% Downside)
Action:Reiterated
Date:08/09/26
Overall score reflects weak financial quality driven by heavy TTM cash burn and GAAP losses, plus negative technical momentum (below key moving averages and negative MACD). These are partially offset by a notably more positive forward outlook from the latest earnings call (strong growth, IP momentum, cost reductions, and guidance toward non-GAAP profitability/positive operating cash flow).
Positive Factors
High gross margins
Sustained ~80%+ gross margins reflect a software/TCAD business with strong product economics and pricing power. High gross margins enable the company to cover fixed R&D and SG&A as revenue scales, improving the path to durable operating profitability if cost discipline holds.
Negative Factors
High cash burn
Persistent, large negative operating and free cash flow implies reliance on external funding or rapid improvement in operations. Over several quarters this erodes reserves, forces dilution or debt, and constrains strategic investments unless non‑GAAP cash flow turns sustainably positive.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~80%+ gross margins reflect a software/TCAD business with strong product economics and pricing power. High gross margins enable the company to cover fixed R&D and SG&A as revenue scales, improving the path to durable operating profitability if cost discipline holds.
Read all positive factors
Silvaco Group, Inc. (SVCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$246.01M
Dividend YieldN/A
Average Volume (3M)484.44K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth31.86%
EPS Growth33.91%
CountryUS
Employees406
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.72
Shares Outstanding33,885,757
10 Day Avg. Volume341,611
30 Day Avg. Volume484,435
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$15.00Price Target Upside93.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.05
Revenue Forecast (FY)$72.39M
Silvaco Group, Inc. Business Overview & Revenue Model
Company Description
Silvaco Group, Inc. (SVCO) develops and sells electronic design automation (EDA) software used by semiconductor and electronics companies to design, model, and verify integrated circuits and related devices. The company’s products focus on technol...
How the Company Makes Money
Silvaco primarily makes money by licensing its software products and providing related services to customers in the semiconductor and electronics ecosystem. Key revenue streams generally include: (1) Software licensing revenue: fees customers pay ...
Silvaco Group, Inc. Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational momentum: strong top-line growth (48% YoY) driven by a breakout IP business (238% YoY growth), meaningful cost reductions, return to non-GAAP profitability, and strategic partnerships (NVIDIA, Dassault, Micron) that validate the FTCO/AI manufacturing roadmap. Near-term risks include GAAP losses, modest quarter-end cash, sequential margin mix pressure, seasonality/lumpiness with a reliance on a strong Q4, and the fact that FTCO is still a longer-term scaling story. On balance, the highlights (robust revenue/bookings growth, IP surge, cost reductions, partnerships and AI-driven productivity) outweigh the lowlights.Positive Updates
Strong Revenue and Bookings Growth
Q2 revenue of $17.8M, up 48% year-over-year; Q2 bookings of $16.2M, up 25% year-over-year. Company reported record LTM revenue of approximately $72.5M.
Negative Updates
GAAP Profitability Still Negative
GAAP operating loss of $4.0M and GAAP net loss of $3.7M (GAAP EPS loss $0.11) in Q2 — profitability only achieved on a non-GAAP basis so far.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and Bookings Growth
Q2 revenue of $17.8M, up 48% year-over-year; Q2 bookings of $16.2M, up 25% year-over-year. Company reported record LTM revenue of approximately $72.5M.
Read all positive updates
Company Guidance
Guidance: For Q3 2026 Silvaco guided bookings of $18.0M ±10% (≈ $16.2–$19.8M), revenue of $17.0M ±10% (≈ $15.3–$18.7M), non‑GAAP gross margin around 88% and non‑GAAP operating expenses of $14.5M ±5% (≈ $13.8–$15.2M). Management expects a record Q4 (the highest quarter ever), full‑year 2026 revenue above $70M (LTM revenue ≈ $72.5M at Q2), and double‑digit revenue growth in 2027 with continued non‑GAAP operating profitability and positive operating cash flow. Recent quarter metrics that underpin the guidance include Q2 bookings $16.2M (+25% YoY) and revenue $17.8M (+48% YoY), Q2 non‑GAAP operating profit $0.635M and non‑GAAP net income $0.315M (non‑GAAP EPS $0.01; GAAP net loss $3.7M, GAAP EPS -$0.11), cash of $13M (up ~20% sequentially, pre‑Micron $10M convertible), net cash used in ops $5.5M in Q2 (including ~$1.8M one‑time; net of one‑time ~$3.7M), execution of $20M annualized spending reductions, and strong IP momentum (IP revenue +238% YoY in Q2, IP pipeline >4× YoY, target ~$20M IP revenue in 2026).Silvaco Group, Inc. Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
66
Positive
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.48M | 63.06M | 59.68M | 54.25M | 46.47M | 41.96M |
| Gross Profit | 59.29M | 49.37M | 47.64M | 44.89M | 37.59M | 33.31M |
| EBITDA | -19.52M | -40.48M | -36.74M | 1.74M | -762.00K | -96.00K |
| Net Income | -22.06M | -41.21M | -39.40M | -316.00K | -3.93M | -1.84M |
Balance Sheet | ||||||
| Total Assets | 115.28M | 122.64M | 142.34M | 40.88M | 38.72M | 35.73M |
| Cash, Cash Equivalents and Short-Term Investments | 13.00M | 10.03M | 82.68M | 4.42M | 5.48M | 6.70M |
| Total Debt | 1.75M | 6.29M | 1.69M | 3.93M | 8.47M | 501.00K |
| Total Liabilities | 31.65M | 47.65M | 42.26M | 31.48M | 28.70M | 21.36M |
| Stockholders Equity | 83.64M | 74.99M | 100.08M | 9.40M | 10.02M | 14.37M |
Cash Flow | ||||||
| Free Cash Flow | -34.23M | -34.52M | -20.28M | 841.00K | -2.19M | -2.73M |
| Operating Cash Flow | -33.82M | -33.91M | -19.77M | 1.18M | -2.10M | -2.64M |
| Investing Cash Flow | 6.89M | 33.72M | -66.53M | -339.00K | -89.00K | 234.00K |
| Financing Cash Flow | 10.64M | -2.21M | 101.30M | -1.65M | 624.00K | 60.00K |
Silvaco Group, Inc. Technical Analysis
Negative
7.76
Price Trends
10.06
Negative
9.69
Negative
7.03
Positive
Market Momentum
-0.68
Negative
38.75
Neutral
15.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVCO, the sentiment is Negative. The current price of 7.76 is below the 20-day moving average (MA) of 7.84, below the 50-day MA of 10.06, and above the 200-day MA of 7.03, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $80.31M | -4.81 | -23.77% | ― | -5.72% | -60.57% | |
55 Neutral | $64.46M | 21.97 | 2.62% | ― | -6.77% | -78.54% | |
53 Neutral | $154.88M | -3.78 | 56.12% | ― | 110.30% | 57.62% | |
51 Neutral | $246.01M | -10.08 | -28.06% | ― | 31.86% | 33.91% | |
42 Neutral | $66.75M | -0.12 | -314.81% | ― | 12.26% | -664.57% |
* Technology Sector Average
SVCO
Silvaco Group, Inc.
7.26
2.55
54.14%
SSTI
SoundThinking Inc
6.20
-6.61
-51.60%
MAPS
WM Technology
0.40
-0.76
-65.34%
TEAD
Teads Holding
0.68
-1.14
-62.64%
MRT
Marti Technologies
1.80
-0.74
-29.13%
Silvaco Group, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Silvaco Signs Convertible Note Financing with Micron
Negative
Aug 6, 2026
On August 5, 2026, Silvaco Group, Inc. signed a Convertible Note Purchase Agreement with customer Micron Technology, Inc., under which Micron agreed to buy a $10 million unsecured senior convertible promissory note, and the transaction closed on A...
M&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Silvaco Issues Shares to Finalize Tech-X Acquisition
Neutral
Jul 6, 2026
On July 6, 2026, Silvaco Group, Inc. filed a prospectus supplement with the SEC to register the offer and sale of 69,062 shares of its common stock to John Cary, a former equityholder of Tech-X Corporation. The shares are being issued under Silvac...
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.