Key Highlights

  • Silvaco Group (NASDAQ:SVCO) reported third-quarter Revenue of USD 16.3 million, down 13% from USD 18.7 million, while the net loss narrowed to USD 4.6 million from USD 5.3 million.
  • Software license revenue fell 21% to USD 10.9 million, while maintenance and service revenue rose 11% to USD 5.4 million.
  • Operating expenses dropped 25% to USD 18.0 million, cutting the operating loss to USD 4.3 million from USD 9.3 million.
  • Nine-month revenue rose 16% to USD 51.9 million, the nine-month net loss narrowed to USD 14.1 million from USD 34.0 million, and cash stood at USD 22.0 million.

License Revenue Slips as Services Grow

Silvaco Group (NASDAQ:SVCO) filed its Quarterly Report for the period ended September 30, 2026 on November 4, 2026. The company sells technology Computer Aided Design software, electronic design automation tools and semiconductor intellectual property to chip makers. Total revenue was USD 16.3 million against USD 18.7 million. Software license revenue fell USD 2.9 million, or 21%, while maintenance and service revenue grew USD 0.5 million, or 11%. The decline in license sales led the drop in total revenue. Within the mix, IP revenue rose USD 2.4 million, which includes the Mixel acquisition, and TCAD revenue rose USD 1.0 million. Software was 67% of revenue, against 74% a year earlier.

Cost Cuts Narrow the Loss

Cost of revenue fell 37% to USD 2.6 million, and Gross Profit was USD 13.7 million, down 6%. On our calculation, that is a gross Margin of about 84.0% against 77.9%. Research and Development spending fell 18% to USD 7.2 million, selling and Marketing eased 5% to USD 4.0 million, and general and administrative expense dropped 38% to USD 6.7 million. A restructuring plan begun in October 2025 is expected to cost USD 5.0 million in total, with USD 0.2 million incurred in the quarter and USD 2.6 million over nine months. It covers 85 terminated employees and certain site closures and is expected to finish in 2026. Net loss per share was USD 0.14 against USD 0.18, and the income tax benefit shrank to USD 54 thousand from USD 3.6 million, which limited the improvement.

Nine-Month Gains, Cash and Risks

Over nine months, revenue rose 16% to USD 51.9 million, with IP revenue up USD 9.6 million, mainly from Mixel, and TCAD revenue up USD 3.9 million. The prior-year period carried a USD 13.1 million litigation settlement charge, which helps explain the narrower nine-month net loss. Cash and equivalents were USD 22.0 million, of which USD 6.8 million was held by foreign subsidiaries. Silvaco Group (NASDAQ:SVCO) said most customers sign multi-year fixed-price license agreements, and it expects the impact of expanded trade controls on Chinese technology companies to be limited. It also entered an open market sale agreement on March 13, 2026, which allows registered share sales through a sales agent and could add to the share count.

Where Things Stand

Revenue fell, but the loss narrowed because costs fell faster than sales. Silvaco Group (NASDAQ:SVCO) cut operating expenses 25% while license revenue dropped 21%, so the net loss shrank to USD 4.6 million. Services and Mixel-driven IP growth cushioned the quarter, and nine-month revenue is still up 16%. Cash of USD 22.0 million and the March 2026 sale agreement frame funding. Next markers are completion of the restructuring plan in 2026, license bookings and the next quarterly filing.