Key Highlights

  • Revenue was USD 16.29 million against a USD 17.08 million estimate and USD 18.67 million a year earlier.
  • EPS of USD -0.04 compares with a USD 0.01 estimate, while GAAP net loss was USD 0.14 per share.
  • Software license Revenue was USD 10.86 million against USD 13.76 million; maintenance was USD 5.44 million against USD 4.92 million.
  • Cash was USD 22.0 million, and a USD 10.0 million unsecured convertible note was issued on August 6.

What explains a quarter in which revenue fell to USD 16.29 million while the net loss narrowed? For Silvaco Group (NASDAQ:SVCO), the answer sits in a lower EDA license line, higher intellectual property and TCAD revenue, and a cost base reshaped by an October 2025 restructuring. EPS of USD -0.04 compares with an estimate of USD 0.01, and GAAP net loss was USD 4.59 million, or USD 0.14 per share.

Revenue Mix: EDA Licenses Down, IP and TCAD Higher

Total revenue was USD 16.29 million against USD 18.67 million a year earlier, a decline the company stated as 13%. Software license revenue was USD 10.86 million against USD 13.76 million, while maintenance and service revenue was USD 5.44 million against USD 4.92 million.

By product line, revenue from EDA tools decreased by USD 5.8 million, driven mainly by lower license revenue. That was partly offset by a USD 2.4 million increase in IP revenue, which includes the Mixel Acquisition completed in August 2025, and a USD 1.0 million increase in TCAD revenue. For the nine months, revenue was USD 51.86 million against USD 44.81 million, up 16% as stated.

Costs, Margins and the Restructuring Plan

Gross profit was USD 13.69 million against USD 14.54 million, with a gross Margin of 84% against 78%. Operating expenses were USD 17.98 million against USD 23.88 million, with general and administrative expense at USD 6.74 million against USD 10.88 million. Operating loss was USD 4.29 million against USD 9.34 million.

The company began a Restructuring Plan in October 2025 covering early retirement and exit programs, a reduction in force and site closures. Total costs are stated at USD 5.0 million, mostly severance for 85 employees, with USD 0.2 million incurred in the quarter. The plan is scheduled to finish in 2026.

Cash, Financing and Obligations

Cash and cash equivalents were USD 22.0 million at September 30, against USD 9.0 million at year end 2025. Cash used in Operating Activities for the nine months was USD 17.3 million against USD 24.4 million.

On August 6, 2026 the company issued an unsecured USD 10.0 million convertible Promissory Note at 8.0% interest. The note and accrued interest convert into common stock on August 7, 2028 or on a change of control, with the conversion price set at the lower of 90% of fair Market Value or 115% of the prior closing price, and further reduced by 10 basis points for each of six development projects not completed.

Under an open market sale agreement of up to USD 35.0 million, the company issued 1,460,737 shares at a weighted average price of USD 7.98 in the nine months, for gross proceeds of USD 11.7 million, and issued none in the third quarter.

Data Points to Watch

Revenue of USD 16.29 million sits alongside an operating loss of USD 4.29 million, cash of USD 22.0 million and a USD 10.0 million convertible note due to convert in August 2028.

Management named the completion of the Restructuring Plan in 2026, the August 7, 2028 conversion date, and six development projects that affect the note's conversion price. It also stated a belief that the Mixel acquisition complements its offerings in low-power connectivity silicon IP.