Silicom Ltd. ( SILC ) reported Q4 25 earnings yesterday, showing continued revenue gains on the back of design wins during the year. The company is also expecting double-digit revenue growth in 2026, with Q1 starting in theLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the compet ...

Silicom Ltd. ( SILC ) reported Q4 25 earnings yesterday, showing continued revenue gains on the back of design wins during the year. The company is also expecting double-digit revenue growth in 2026, with Q1 starting in theLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the compet ...

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $16.9 million, a 17% increase from $14.5 million in Q4 2024, exceeding guidance of $15 to $16 million [8][19] - Gross profit for Q4 2025 was $5.1 million, with a gross margin of 30.2%, compared to a gross profit of $4.2 million and a gross margin of 29.1% in Q4 2024 [21] - Net loss for Q4 2025 was $1.9 million, an improvement from a net loss of $5.1 million in Q4 2024, with loss per share decreasing from $0.87 to $0.34 [21][22] Business Line Data and Key Metrics Changes - The company achieved eight major new design wins in 2025 across edge systems, SmartNIC, and FPGA solutions, indicating strong demand and visibility for future growth [9][10] - The company expects to target between 7 and 9 design wins in the current year, reflecting confidence in sustaining growth [10][17] Market Data and Key Metrics Changes - Geographical revenue breakdown for the last 12 months: North America 74%, Europe and Israel 17%, Far East and rest of the world 9% [19] - One customer accounted for approximately 14% of total revenues, indicating reliance on a limited number of customers for substantial revenue growth [19] Company Strategy and Development Direction - The company is focusing on three major growth engines: AI inference, post-quantum cryptography, and white label switching, which are expected to provide significant growth opportunities [11][12][15] - The company aims to leverage existing customer relationships and IP to capitalize on these new markets, with AI inference being identified as the largest opportunity [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the core business's growth, projecting double-digit revenue growth for 2026 based on a solid pipeline of opportunities [10][16] - The company highlighted the importance of early positioning in emerging markets and the need for credibility and execution to capture growth [11][12] Other Important Information - The company's balance sheet remains strong, with working capital and marketable securities totaling $111 million, including $74 million in cash and no debt [10][22] - Management emphasized the flexibility to invest in market opportunities while maintaining a conservative financial profile [17] Q&A Session Summary Question: Timeline for new opportunities in AI inference, post-quantum cryptography, and white label switching - Management indicated that all three opportunities are in initial stages, with AI inference potentially being the most near-term, but significant revenue is not expected in 2026 [24] Question: Sales cycles and design processes for new opportunities - Management expects faster sales cycles due to leveraging existing IP and know-how, which should facilitate quicker revenue generation [25] Question: Changes to sales process or additional investments for new opportunities - Management believes the current team is well-structured to support growth and does not foresee the need for significant additional investments at this time [27] Question: Specific use cases for AI inference and connectivity bottlenecks - Management clarified that the focus is on addressing networking challenges related to AI inference across various deployment types [30][31] Question: R&D spending to support new opportunities - Management does not anticipate significant increases in R&D spending but has the capability to do so if necessary [32]

Silicom (NasdaqGS:SILC) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Company ParticipantsEran Gilad - CFOKenny Green - Co-founder and DirectorLiron Eizenman - President and CEOConference Call ParticipantsGreg Weaver - AnalystJeff Hopson - AnalystOperatorLadies and gentlemen, thank you for standing by. Welcome to the Silicom Fourth Quarter 2025 Results Conference Call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the q ...

Silicom (NasdaqGS:SILC) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Speaker5Ladies and gentlemen, thank you for standing by. Welcome to the Silicom Fourth Quarter 2025 Results Conference Call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, pleas ...

Silicom Connectivity Solutions AI Inference Post-Quantum Security White-Label Switching Venture Upside. Public Access. Investor Presentation January 29, 2026 Venture Upside. Public Access. Silicom: An Established Public Company with Startup-Like Upside Positioned to deliver venture-style upside across AI inference, post-quantum cybersecurity, and white-labelswitching markets 20 Built on 20+ years of IP, engineering excellence, and execution at scale Safe Harbor Guidelines & Legal Notes The information prese ...

- Ahead-of-plan performance of core business - Financial Results Fourth quarter: Silicom's revenues for the fourth quarter of 2025 totalled $16.9 million, a 17% increase compared with $14.5 million for the fourth quarter of 2024. On a GAAP basis, the company's net loss for the quarter was $2.5 million, or $0.44 per ordinary share (basic and diluted), compared with $6.1 million, or $1.05 per ordinary share (basic and diluted), for the fourth quarter of 2024. On a non-GAAP basis (as described and reconciled b ...

Core Insights - Silicom Ltd. has significantly increased its expected annual revenues from a customer, raising projections from $3-4 million to $8-10 million due to the implementation of Silicom Edge systems in multiple use cases [1] - The CEO of Silicom, Liron Eizenman, emphasized the importance of trusted-supplier relationships with major IT industry leaders, highlighting the company's innovation and reliability as a supplier [2] Company Overview - Silicom Ltd. is a leading provider of high-performance networking and data infrastructure solutions, primarily aimed at enhancing performance and efficiency in Cloud and Data Center environments [3] - The company's solutions are designed to increase throughput, decrease latency, and improve the performance of servers and networking appliances, supporting advanced Cloud architectures and technologies such as NFV, SD-WAN, and Cyber Security [3] - Silicom has established long-term relationships with over 200 customers globally, boasting more than 400 active Design Wins and over 300 product SKUs, making it a preferred partner for technology leaders [3]

Core Viewpoint - Silicom Ltd. will release its fourth quarter and full year 2025 results on January 29, 2026, and will host a conference call to discuss these results and answer investor questions [1][2]. Company Overview - Silicom Ltd. is a leading provider of high-performance networking and data infrastructure solutions, primarily aimed at enhancing performance and efficiency in Cloud and Data Center environments [4]. - The company's solutions are designed to increase throughput, decrease latency, and improve the performance of servers and networking appliances, which are essential for advanced Cloud architectures and technologies such as NFV, SD-WAN, and Cyber Security [4]. - Silicom's products are utilized by major Cloud players, service providers, telcos, and OEMs, serving as components in their infrastructure offerings [5]. Customer Relationships - Silicom has established long-term relationships with over 200 customers globally, with more than 400 active Design Wins and over 300 product SKUs, making it a preferred connectivity and performance partner for technology leaders [6].

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $15.6 million, a 6% increase from $14.8 million in Q3 2024 [21] - Gross profit was $5 million, with a gross margin of 31.8%, compared to $4.2 million and a gross margin of 28.8% in Q3 2024 [23] - Operating loss for Q3 2025 was $2.4 million, slightly higher than the $2.3 million loss in Q3 2024 [24] - Net loss for the quarter was $2.1 million, compared to a net loss of $1.7 million in Q3 2024, with a loss per share of $0.36 [24] Business Line Data and Key Metrics Changes - The company achieved eight major new design wins year-to-date, with three significant wins in Q3 alone [10][11] - Design wins span across all product lines, including FPGA Solutions, Smart NICs, and Edge Networking Systems [12][17] Market Data and Key Metrics Changes - Geographical revenue breakdown: North America 75%, Europe and Israel 17%, Far East and rest of the world 8% [21] - One customer accounted for approximately 14% of revenues over the last 12 months [21] Company Strategy and Development Direction - The company aims for double-digit revenue growth starting in 2026, with a target of achieving seven to nine new design wins in 2026 [18][19] - Focus on building long-term customer relationships and expanding the design win funnel to support sustainable growth [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for returning to double-digit revenue growth in 2026 and beyond, supported by a strong balance sheet of $114 million in working capital and marketable securities [11][18] - The company is well-positioned for 2026 with unique technologies and a growing customer base [20] Other Important Information - The company has no debt and maintains a strong financial position, with $76 million in cash and cash equivalents [24] - Management highlighted the importance of design wins as a key indicator of progress and future growth potential [10][17] Q&A Session Summary Question: How can Silicom fit into the AI-native narrative? - Management sees opportunities across multiple product lines, particularly in high-speed NICs and FPGA solutions, which can bridge gaps in AI systems [26][27] Question: What is the spending environment in the telecom industry? - Management noted positive discussions with service providers, indicating a need for next-generation products to support their customers, suggesting good opportunities for design wins [29][31]