Silvaco Group, Inc. (SVCO) · Nov 4, 2026 · Earnings
Miss — Revenue $16.3M vs ~$17.1M consensus; non-GAAP EPS -$0.04 vs ~$0.01
Silvaco earnings missed on Q3 revenue and non-GAAP EPS, while management guided to a sharp Q4 acceleration and record revenue.
Silvaco is in the middle of a turnaround: after expanding through TCAD, EDA and semiconductor-IP acquisitions, it is now simplifying around AI Manufacturing and AI Design while trying to convert FTCO, Jivaro Pro and newer AI offerings into faster growth. Its prior plan emphasized cost reduction and a stronger 2026 IP contribution.
The quarter missed the immediate benchmark. Revenue was $16.3 million, about 4.6% below published consensus near $17.1 million and down 12.7% year over year, while non-GAAP loss per share was $0.04 versus an expected profit of roughly $0.01. The weakness was concentrated in software licenses, down to $10.9 million from $13.8 million, partly offset by maintenance and service growth. That makes this a genuine earnings miss, not merely a quarter that landed in line.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Income Statement) | $16.294M (-12.7%) | $18.672M | ~$17.1M |
| Non-GAAP EPS (GAAP to Non-GAAP Reconciliation) | $(0.04) | $(0.07) | ~$0.01 |
| GAAP operating loss (Income Statement) | $(4.291M) | $(9.342M) | |
| Cash used in operations (Cash Flow statement) | $(17.298M) | $(24.430M) |
The cost reset is working, but has not yet produced operating profitability. GAAP operating loss narrowed sharply year over year, and non-GAAP operating loss improved to $1.0 million from $2.6 million. That is tangible progress from the restructuring, but it still falls short of the profitability inflection investors were being conditioned to expect after Silvaco delivered non-GAAP operating income in the second quarter.
Management is asking the market to look through the miss to Q4. Silvaco says Q4 revenue should grow 35% sequentially and that full-year 2026 growth should reach 17%; it also says it is guiding to record Q4 revenue. 〔0〕 The new Tier-1 FTCO customer, four Tier-1 Jivaro Pro wins and early engagement around Agentic AI are the evidence offered for that acceleration, but bookings and the customer wins are not quantified enough here to eliminate execution risk. 〔1〕
Liquidity improved operationally but relied on fresh capital. Operating cash burn fell year over year, and cash ended at $22.0 million; however, nine-month financing included $12.2 million from common-stock issuance and $10.0 million from a convertible note. Shares outstanding rose from 30.9 million at year-end to 34.1 million, so the balance-sheet improvement came with meaningful dilution and added convertible debt.
Bottom line: The filing supports the turnaround's cost-control progress, but the actual quarter was below expectations and remained loss-making. The story now depends on whether the promised Q4 acceleration is real enough to overcome the weak license revenue in Q3. 〔2〕
Q4 2026 results, early 2027
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