Silvaco Reverses Revenue Decline With Record Fourth-Quarter Outlook

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue was $16.3 million, down 13%, after the company guided fourth-quarter revenue of $22.0 million plus or minus 10%.

Silvaco Group (SVCO), a provider of TCAD, EDA software and SIP solutions for semiconductor design and digital-twin modeling, reported third-quarter 2026 revenue of $16.3 million, down 13% from a year earlier, after two quarters of year-over-year growth.

The company said it won a major new tier-1 FTCO customer and four tier-1 customers for Jivaro Pro in the quarter. It expects a 35% sequential revenue increase in the fourth quarter to drive full-year 2026 year-over-year revenue growth to 17% at the midpoint of its guided range. Similar revenue growth is expected in 2027.

Chief Executive Officer Walden Rhines said bookings strength was driven by the FTCO win and the Jivaro Pro deals, and that Silvaco also engaged two of the largest global technology companies with its Agentic AI offerings. He said the acceleration reflected an inflection rooted in streamlined operations, a focused roadmap and deeper relationships with strategic customers.

TCAD revenue was $7.6 million, up 16% year-over-year. EDA revenue was $4.6 million, down 56%. SIP revenue was $4.1 million, up 141%.

Gross bookings were $19.3 million, down 15% year-over-year. TCAD bookings reached a record $10.3 million, up 89% year-over-year, which the company said was propelled by the new tier-1 FTCO customer. Jivaro Pro bookings were a record, the company said, on four tier-1 wins across multiple end markets. Silvaco also said it sold its first internally developed MIPI controller with its MIPI PHYs and delivered a fully functional 2nm MIPI C-PHY/D-PHY combo solution.

GAAP gross margin was 84%, up 613 basis points year-over-year. Non-GAAP gross margin was 85%. GAAP operating loss was $4.3 million, compared with a $9.3 million operating loss in the third quarter of 2025. GAAP net loss was $4.6 million, or $0.14 a share, versus a $5.3 million net loss, or $0.18 a share, a year earlier. Non-GAAP operating loss was $1.0 million, compared with $2.6 million a year earlier. Non-GAAP net loss was $1.3 million, or $0.04 a share.

Cash and cash equivalents totaled $22.0 million at quarter-end. Chief Financial Officer Chris Zegarelli said net cash used in operations improved significantly in the third quarter and that the company ended the quarter with the most unrestricted cash on the balance sheet since the second quarter of 2025. He said the company is guiding to record revenue in the fourth quarter and expects higher growth expectations to continue expanding profitability and cash generation in 2027.

Silvaco said it streamlined the business around two product teams: AI Manufacturing, covering TCAD multiphysics, FTCO and related technologies, and AI Design, covering semiconductor IP and complementary EDA solutions. It also added former CEO David Dutton to lead sales.

For the fourth quarter of 2026, Silvaco expects bookings of $21.0 million plus or minus 10%, revenue of $22.0 million plus or minus 10%, non-GAAP gross margin of around 88% and non-GAAP operating expenses of $16.0 million plus or minus 5%.