Silvaco (SVCO) Q1 2026 Earnings Transcript

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DATE

Thursday, May 7, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Walden Rhines

• Chief Financial Officer — Chris Zegarelli

• Operator

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Full Conference Call Transcript

Walden Rhines: Good afternoon. I admit you joining america today. I americium precise pleased with our results successful Q1. Momentum continues to physique connected aggregate fronts. Financially, we delivered coagulated Q1 results and issued compelling guidance for Q2. In Q1, we saw bookings, revenue, and gross borderline each supra the midpoint of the guided range, which chopped our non-GAAP operating nonaccomplishment successful fractional sequentially. We delivered 26% year-over-year gross growth. Our Q2 guidance confirms that we expect to scope an important milestone successful the quarter, that is delivering non-GAAP operating profitability for the archetypal clip since Q4 of 2024.

From a currency perspective, Q1 was the archetypal sequential maturation successful unrestricted currency connected the equilibrium expanse since the IPO successful May of 2024. Our absorption connected fiscal subject and predictability is delivering tangible results. Our squad has rallied astir this origin and is delivering coagulated results and important milestones. I privation to commencement with much bully quality connected the AI front. For the 2nd 4th successful a row, we secured a caller FTCO AI-driven manufacturing lawsuit engagement successful Q1. We're successful discussions with respective much companies and expect 1 of them to adjacent successful Q2. We besides received an bid from an existing FTCO lawsuit for caller functionality.

Momentum continues to physique for our AI-driven manufacturing strategy, some successful presumption of caller arsenic good arsenic existing customers. While marketplace adoption of FTCO is inactive successful the aboriginal stages, these are signs that momentum is building, and the marketplace is responding precise positively to what AI manufacturing improvement tin unlock for our customers. Before providing much details connected results, I privation to springiness you an update connected the company's strategical pivot connected which Chris and I person been focused since joining the company. Our guiding principles person centered connected playing to Silvaco's strengths, leveraging AI, targeting markets wherever we tin physique a apical franchise, lawsuit obsession, and fiscal discipline.

Leveraging Silvaco's strengths means extending our pb successful people markets and deepening the moat astir halfway technologies. That means delivering differentiated AI-driven solutions for power, memory, foundry, and show segments. In power, we person unsocial advantages, peculiarly for wide set spread semiconductor process and merchandise development. For memory, our concern with Micron is an illustration of however we tin present existent worth to the biggest and champion companies successful the industry. In technology, we volition widen our pb successful halfway areas, including multiphysics simulation, which was captious to the instauration of FTCO. AI is simply a important constituent of our strategical shift. We've deployed AI internally and are already seeing phenomenal results.