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what it is
Silicom makes the networking cards and hardware that let servers move, filter, and secure data faster.
how it gets paid
Last year Silicom made $62M in revenue. server networking interface cards was the main engine at $24.0M, or 39% of sales.
why it's growing
Revenue grew 6.6% last year. 30.6% gross margin matters because gross margin means money left after production costs.
what just happened
The clean takeaway: Q4 revenue reached $16.9M, but Silicom still posted a loss.
At a glance
n/a balance sheet
15/100 earnings predictability — expect surprises
10.2% return on capital — nothing to write home about
-$2.01 fy2025 eps est
$58M fy2024 rev est
xvary composite: 72/100 — average
What they do
Silicom makes the networking cards and hardware that let servers move, filter, and secure data faster.
Silicom gets designed into the box before you ever touch the box. OEMs (companies that sell the finished machine) use its hardware so your server can push traffic, security, and data capture jobs without dumping all the work on the CPU. That design-in model is sticky because swapping out a proven component risks the whole appliance, and Silicom says it has more than 300 products supporting that niche.
How they make money
$62M
annual revenue · their business grew +6.6% last year
server networking interface cards
$24.0M
+4.0%
intelligent and programmable cards
$14.0M
+8.0%
bypass switches
$10.0M
3.0%
server to appliance converters
$8.0M
+2.0%
fpga capture and edge acceleration
$6.0M
+15.0%
The products that matter
high-speed server connectivity
Network Adapters
$12M contract · 5 years
a major streaming service signed a 5-year, $12M deal announced mar. 12, 2026. for a company with $61.9M in annual revenue, that is real backlog, not background noise.
contract win
edge data processing
Edge Computing Systems
$1M+ 2026 orders
a tier-one customer placed more than $1M of 2026 orders for the next-gen line. small in absolute dollars, but meaningful when quarterly revenue was only $16.9M in q4.
customer expansion
programmable hardware acceleration
FPGA & Custom Solutions
$2M per year design win
it won a $2M per year cryptography design contract in late 2025. that does not repair the whole income statement, but it proves customers still pay for narrow engineering work.
niche upside
Key numbers
19.8%
operating margin
Margin means profit after running the business. Plain English: Silicom is still losing money on the core operation.
$62M
annual revenue
Sales grew 6.6% vs. prior year, which tells you demand is stabilizing even while profits are not.
$2.28
2024 EPS
EPS means profit per share. Plain English: each share absorbed a $2.28 loss in 2024.
10.2%
return on capital
Return on capital means how much profit the business gets from the money tied up inside it. Here, the score looks better than the income statement feels.
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 2 — safer than 80% of stocks
- price stability 35 / 100
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SILC right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The clean takeaway: Q4 revenue reached $16.9M, but Silicom still posted a loss.
The company reported Q4 2025 EPS of -$0.49, while full-year revenue reached $61.9M, up 6.6%. Gross margin was 30.6%, which sounds decent until you put it next to a -19.8% operating margin.
$16.9M
revenue
$0.49
eps
30.6%
gross margin
the number that mattered
30.6% gross margin matters because gross margin means money left after production costs. Plain English: the products are not the problem by themselves, but overhead is still eating the business alive.
source: company earnings report, 2026
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What could go wrong
the #1 risk is quarterly revenue staying stuck around the mid-$16M range while fixed costs keep losses alive.
high
breakeven is still far away
silicom lost $11.5M in 2025 on $61.9M of revenue. management's rough math says the business needs about 50% more sales to stop losing money, which points to something closer to the low-$90M range.
if revenue stays near current levels, the stock keeps trading on hope that the next contract is the one that changes the slope.
high
gross margin is not high enough to absorb mistakes
gross margin was 30.6%, while net margin was -18.5%. in plain english: silicom keeps about 31 cents of each sales dollar before overhead and still loses about 19 cents after everything else.
that leaves little room for pricing pressure, delayed shipments, or underfilled production.
med
customer concentration is real
one key customer is forecast to generate $8M–$10M of revenue, or roughly 13–16% of total sales. that is meaningful dependence for a business this small.
lose the customer, delay the program, or trim volumes, and the revenue base notices fast.
med
larger rivals still have the scale edge
an oct. 30, 2025 competitor review named lanner electronics the winner because of superior scale and market leadership. silicom's 30.6% gross margin does not erase that gap.
if pricing tightens or customers consolidate vendors, the smaller supplier usually feels it first.
one customer can be up to 16% of sales, and even a $12M contract spread across five years only adds about $2.4M a year against an annual loss of $11.5M.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
quarterly revenue versus the breakeven math
q4 landed at $16.9M. breakeven likely needs revenue closer to the low-$20M range per quarter. same business. very different outcome.
calendar
q1 2026 revenue report
due april 2026. management guided to $16.5M–$17.5M, which would keep growth alive but still leave profitability unanswered.
trend
whether small design wins start stacking
the $12M streaming contract, the $1M+ edge orders, and the $2M per year cryptography deal all matter. the story changes only if they begin to compound together.
risk
customer concentration
one customer at $8M–$10M of revenue can be 13–16% of the business. in a $61.9M company, that is not a footnote.
Analyst rankings
earnings predictability
15 / 100
earnings are hard to model. in human-speak, analysts do not trust this business to print clean, steady quarters yet.
risk rank
2
this measure says safer than 80% of stocks. translation: balance-sheet risk screens better than the income statement.
price stability
35 / 100
the stock is not especially stable. that fits a $108M company where one contract can move sentiment faster than fundamentals.
source: institutional data
Institutional activity
institutional ownership data for SILC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$20
current price
n/a
target midpoint · n/a from current
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