Silvaco Group . Common Stock Stock Earnings Reports

Silvaco reported a strong Q1 FY2026 with bookings and revenue of $17.2M and $17.8M respectively, each up 26% year-over-year and ahead of consensus. Key drivers: TCAD strength (Q1 TCAD bookings $10.5M, +49% YoY) driven by momentum in FTCO (AI-driven manufacturing/digital-twin) and a growing IP business following the Mixel integration (IP pipeline roughly doubled year-over-year). EDA revenue and bookings were softer as management refocuses on a smaller set of core EDA products (e.g., Jivaro, AI-enabled Utmost). Gross margins are strong (non-GAAP ~87.9% in Q1, management expects mid- to upper-80s going forward) aided by restructuring. The company cut costs (~$20M initiative largely complete), reduced operating losses (non-GAAP operating loss cut ~50% sequentially to $0.47M), and expects to deliver non-GAAP operating profitability in Q2. Cash and liquidity: unrestricted cash grew to $10.9M at quarter end (first sequential rise since IPO), net cash used in operations was $11M but this included an $8.3M litigation payment and $1M severance; adjusted operating cash burn would have been ~$1.7M. Management expects positive operating cash flow by Q3 and signed a nonbinding term sheet for a $10M revolver expected to close in Q2. Guidance for Q2: bookings $19M ±10%, revenue $18M ±10%, non-GAAP gross margin ~88%, non-GAAP OpEx $15.5M ±5%. Backlog / remaining performance obligations ~$46.6M. Key investor takeaways: FTCO is an expanding, cross-market growth driver (memory, power, equipment, government), IP is scaling with a growing pipeline, EDA is being prioritized and streamlined, cost discipline is producing margin and cash improvements, and management is targeting profitability and positive operating cash flow in the near term.