Silvaco Group Inc. Common Stock (SVCO)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Silvaco as a small, specialized technology business with a real problem: it has not yet proven it can earn a profit. The company sells TCAD, EDA and semiconductor IP software, a niche where deep integration into chip-design workflows can create switching costs. But scale is modest, with 406 employees, and it competes with far larger EDA vendors. Revenue has moved from $54.2M in FY2023 to $59.7M in FY2024 and $63.1M in FY2025. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $17.8M versus $12.0M in fiscal Q2 2025, so top-line momentum is real. More encouraging, net income was -$3.7M in fiscal Q2 2026, better than -$9.4M in fiscal Q2 2025 and -$5.9M in fiscal Q1 2026. Still, FY2025 net income was -$41.2M, FY2024 was -$39.4M, and FY2023 was only -$316,000, so profitability is not established. Trailing free cash flow was -$34.2M, a -13.8% FCF yield, and FairStock's ROE and ROCE are -27.03% and -9.63%. The balance sheet shows low D/E of 0.06 and an Altman Z-Score of 3.99, which reduces near-term solvency worry, but Piotroski is 3/9. At the $7.34 close on 2026-10-13, FairStock shows a market cap of $248.7M, P/B of 3.08, and negative P/E of -10.49. Graham would demand a margin of safety; here there is no earnings anchor. FairStock's Lynch category is none, because losses occurred in each of the last three years. I see a promising niche and improving quarterly losses, but the stock still depends on future profits that have not arrived.

In plain English: Silvaco makes software that helps engineers design and test computer chips. Sales are growing and the latest quarter lost less money than before, but the company has still been unprofitable and has been using cash. At $7.34, the price looks expensive compared with today's lack of profits, so it depends heavily on future results improving.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer