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]

Core Business Performance - Silicom Ltd. reported a revenue of $16.9 million for Q4 2025, marking a 17% increase from $14.5 million in Q4 2024 [2] - For the full year 2025, revenues reached $61.9 million, a 7% increase compared to $58.1 million in 2024 [3] Financial Results - On a GAAP basis, the net loss for Q4 2025 was $2.5 million, or $0.44 per share, an improvement from a net loss of $6.1 million, or $1.05 per share, in Q4 2024 [2] - The full year 2025 net loss on a GAAP basis was $11.5 million, or $2.01 per share, compared to a loss of $13.7 million, or $2.28 per share, in 2024 [4] - Non-GAAP net loss for Q4 2025 was $1.9 million, or $0.34 per share, down from $5.1 million, or $0.87 per share, in Q4 2024 [3] Future Guidance - Management projects Q1 2026 revenues to be between $16.5 million and $17.5 million, indicating an 18% year-over-year growth in the mid-range of guidance [5] - The company expects to achieve double-digit annual growth in 2026 [5] Management Comments - The President and CEO highlighted better-than-projected growth for 2025, with a 17% year-over-year growth in Q4 and 8 new Design Wins during the year [6] - The company is focusing on three major market shifts: AI Inference, Post-Quantum Cryptography, and White-Label Switching, which are expected to provide significant growth opportunities [6][12] Market Opportunities - The AI Inference market is projected to exceed $80 billion by 2030, with Silicom's networking solutions positioned to capitalize on this growth [6] - The Post-Quantum Cryptography market is expected to grow to over $3 billion by 2030, with Silicom being a key provider of hardware-based solutions [12] - The White-Label Switching market is anticipated to disrupt a $6 billion market, with Silicom already engaged with leading customers [12] Company Positioning - Silicom is recognized as a provider of high-performance networking and data infrastructure solutions, serving critical technologies in various sectors [13] - The company has a strong balance sheet, enabling it to invest in growth while maintaining a conservative financial profile [7]

Financial Results - Silicom's revenues for Q2 2025 were $15.0 million, a 3.4% increase from $14.5 million in Q2 2024 [2] - On a GAAP basis, the net loss for Q2 2025 was $3.3 million, or $0.59 per share, compared to a net loss of $1.5 million, or $0.25 per share, in Q2 2024 [2] - On a non-GAAP basis, the net loss for Q2 2025 was $2.0 million, or $0.35 per share, compared to a net loss of $0.9 million, or $0.14 per share, in Q2 2024 [3] - For the first half of 2025, revenues were $29.4 million, up from $28.9 million in the first half of 2024 [3] - The GAAP net loss for the first half of 2025 was $6.1 million, or $1.08 per share, compared to a loss of $4.9 million, or $0.80 per share, in the first half of 2024 [4] - On a non-GAAP basis, the net loss for the first half of 2025 was $4.1 million, or $0.71 per share, compared to a loss of $3.2 million, or $0.52 per share, in the first half of 2024 [4] Guidance - Management projects Q3 2025 revenues to range from $15 million to $16 million [5] - Growth for 2025 is expected to be in the low single digits, with a double-digit annual growth rate anticipated to begin gradually in 2026 [5] Management Comments - The President and CEO highlighted strong Design Win momentum and success across all product lines, achieving 5 major new Design Wins since the beginning of the year [6] - The company has a strong balance sheet, with working capital and marketable securities representing approximately $20 per share [6] - The Design Win funnel is broad, with opportunities for Edge systems, Smart NICs, and FPGA-based solutions [6] - The company expects to achieve double-digit revenue growth in 2026 and aims for an EPS above $3 on revenues of $150 to $160 million [6]