Start here if you're new
what it is
Silvaco sells software and intellectual property tools that help chip companies design and test semiconductors faster.
how it gets paid
Last year Silvaco made $63M in revenue. TCAD software was the main engine at $22M, or 35% of sales.
why it's growing
Revenue grew 5.7% last year. $45 million mattered most because it showed demand is real.
what just happened
Silvaco posted $45M in latest-quarter revenue, with EPS at -$1.16.
At a glance
n/a balance sheet
-$1.24 fy2024 eps est
$60M fy2024 rev est
72.8% operating margin
~$158M market cap
What they do
Silvaco sells software and intellectual property tools that help chip companies design and test semiconductors faster.
You are buying niche tooling for chip design. Leaving is painful because the software sits inside the workflow, and switching means retraining teams and redoing designs. Silvaco has 279 employees, so this is a small crew selling into a massive, stubborn industry.
How they make money
$63M
annual revenue · their business grew +5.7% last year
TCAD software
$22M
+6.0%
EDA software
$18M
+5.0%
SIP solutions
$17M
+4.0%
Services and support
$6M
+3.0%
The products that matter
chip physics simulation
TCAD Software
~$48M · roughly three-quarters of revenue
It still represents about 76% of the current revenue mix, or roughly $48M. That makes it the base business even if growth is not the story.
base business
semiconductor IP licensing
Mixel MIPI PHY IP
$5.1M quarter · roughly 3x sequential jump
This business delivered a record $5.1M last quarter. For a company with a $158M market cap, one product line moving like that gets everyone's attention.
growth engine
Key numbers
$63M
ttm revenue
You are looking at a company with $63 million of annual sales, which is tiny next to the chip industry it serves.
72.8%
operating margin
For every $100 of sales, Silvaco lost $72.80 at the operating line. That is the punchline.
76.2%
gross margin
Silvaco keeps $76.20 after direct costs on each $100 of revenue. The problem is everything else.
$4M
long-term debt
Debt is only $4 million, so the business is not drowning in borrowing. The issue is profitability.
Financial health
n/a
strength
- balance sheet grade n/a
- long-term debt $4M (2% of capital)
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SVCO right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Silvaco posted $45M in latest-quarter revenue, with EPS at -$1.16.
Revenue jumped 140% vs. prior year, which is a real step up from a tiny base. EPS stayed deeply negative, so growth did not fix the bottom line.
$45M
revenue
-$1.16
eps
76.2%
gross margin
the number that mattered
$45 million mattered most because it showed demand is real, even while earnings stayed ugly.
source: company earnings report, 2026
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What could go wrong
the #1 risk is equity dilution through the $50M at-the-market program.
med
Dilution can outrun the turnaround
An at-the-market program lets Silvaco sell shares gradually into the market. With a $50M shelf against a $158M market cap, full use would equal roughly 32% of today's value. That's a big bill for existing shareholders to pay.
impact: your ownership can shrink before the business proves it deserves more capital
med
Scale disadvantage is real
Silvaco is doing roughly $60M–$63M in revenue in a market where larger EDA vendors have far more R&D budget, distribution, and pricing power. When you are this small, one bad product cycle or one missed customer decision matters more.
impact: pricing pressure and slower product progress can keep the company niche indefinitely
med
The cost-cut plan has to show up in results
Management has pointed to $20M in annual operating expense reductions by the end of 2026. If those savings slip, the 81% gross margin will not matter much because operating losses stay in control of the story.
impact: the path to profitability stretches out, which makes the ATM far more relevant
Fully used, the $50M ATM equals about 32% of the current $158M market cap before counting any pressure from continued losses.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
q1 2026 earnings and guidance
Management guided to $15M–$19M in revenue. That range is now the first credibility check for the year.
trend
whether IP stays above the noise
A $5.1M IP quarter was the most interesting number on the page. If that line holds up again, the growth case stops looking like a one-quarter cameo.
financing
actual ATM share sales
The shelf exists. The question is how aggressively it gets used. New issuance would pressure the stock and change your ownership math immediately.
metric
gross margin versus expense cuts
81% non-GAAP gross margin sounds great. It only matters if the promised $20M in annual expense reductions starts showing up below the gross profit line.
Analyst rankings
coverage
thin
This name does not have the kind of broad analyst coverage you see in larger software stocks. In human-speak, there is no big Wall Street crowd doing the work for you.
earnings view
-$1.24
That's the current FY2024 EPS estimate. Analysts still expect losses, which means the debate is about survival and scale-up, not near-term profitability.
revenue view
$60M
That's the current FY2024 revenue estimate. The street is not modeling a breakout yet, which leaves room for upside if the IP line keeps surprising.
source: institutional data
Institutional activity
institutional ownership data for SVCO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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