Silvaco Group (NASDAQ:SVCO) Releases Quarterly Earnings Results

Silvaco Group (NASDAQ:SVCO) posted its quarterly earnings data on Wednesday. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.05), FiscalAI reports. The business had revenue of $16.29 million for the quarter, compared to analysts’ expectations of $17.08 million. Silvaco Group had a negative net margin of 30.43% and a negative return on equity of 15.29%.

Here are the key takeaways from Silvaco Group’s conference call:

• Bookings and customer wins strengthened: Q3 bookings were $19.3 million, including record TCAD bookings of $10.3 million, up 89% year over year. Silvaco cited a major new tier 1 FTCO customer and four tier 1 Jivaro Pro wins.
• Management forecast continued growth: Q4 revenue is guided to a record $22 million at the midpoint, up 21% year over year, and the company expects mid-to-high teens revenue growth in 2027. Executives said FTCO, IP, and improving EDA demand support that outlook.
• Q3 revenue missed expectations: Revenue was $16.3 million, slightly below the midpoint of guidance, as IP milestones shifted into Q4. The company reported a $4.6 million GAAP net loss and a $1.3 million non-GAAP net loss.
• Cost reductions and cash flow improved: GAAP operating expenses were down nearly 25% year over year, and cash used in operations fell to $0.8 million from $5.5 million in Q2. Management expects operating expenses to grow more slowly than revenue in 2027, supporting profitability gains.

Silvaco Group Price Performance

Shares of SVCO stock opened at $6.36 on Thursday. Silvaco Group has a 1-year low of $3.07 and a 1-year high of $14.39. The stock’s 50-day moving average is $7.12 and its 200 day moving average is $7.69. The company has a market cap of $215.51 million, a P/E ratio of -8.74 and a beta of 0.64.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on SVCO shares. Rosenblatt Securities reiterated a “buy” rating and set a $14.00 price objective on shares of Silvaco Group in a report on Wednesday, September 23rd. Weiss Ratings restated a “sell (d-)” rating on shares of Silvaco Group in a research note on Tuesday, October 6th. Finally, B. Riley Financial reaffirmed a “buy” rating and set a $11.00 price target (down from $16.00) on shares of Silvaco Group in a research note on Monday. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $12.25.

About Silvaco Group

Silvaco Group, Inc is a semiconductor design software and intellectual property company that provides electronic design automation (EDA) and technology computer-aided design (TCAD) solutions. Its products help semiconductor manufacturers and electronics companies develop, simulate, verify and optimize integrated circuits, semiconductor devices and related technologies.

The company’s offerings support multiple stages of the chip-development process, including process and device modeling, circuit simulation, physical design, layout automation and design-rule verification.