SVCO · Silvaco Group, Inc. Common Stock

Silvaco’s Q1 FY2026 results reflect a material inflection point: revenue grew 26% year-over-year to $17.8 million, driven by strong performance in TCAD ($9.6M, +22% YoY) and explosive SIP growth ($4.0M, +270% YoY), while EDA declined 20% YoY — indicating strategic reallocation toward AI-integrated offerings like AI FTCO™. Gross margin expanded sharply to 86% GAAP (+779 bps YoY), underscoring pricing power and operational leverage in its software-centric model. The GAAP operating loss narrowed significantly to $5.7 million from $19.6 million a year ago, and Non-GAAP operating loss reached just $0.5 million — the closest the company has come to breakeven since going public. Management explicitly guided for GAAP profitability in Q2, supported by $19.0 million in expected bookings (+/-10%) and $18.0 million in revenue (+/-10%), alongside stable ~88% Non-GAAP gross margin. Business highlights reinforce this pivot: new AI FTCO customer wins, TCAD bookings up nearly 50% YoY to $10.5 million (driven by AI FTCO and power semiconductors), and launch of AI-driven Utmost delivering 10x performance gains. Liquidity also improved meaningfully — unrestricted cash grew sequentially for the first time post-IPO, and the company signed a non-binding term sheet for a $10 million revolving credit facility. These developments collectively signal execution on Silvaco’s strategic shift toward AI-embedded EDA and TCAD solutions, with tangible financial traction validating both product-market fit and path to sustainable profitability.