Silicom Ltd. (SILC) Q3 2025 Earnings Call Transcript
Revenues $15.6 million for Q3 2025, a 6% increase from $14.8 million in Q3 2024. The increase is attributed to strong execution and design win momentum.
Gross Profit $5 million for Q3 2025, with a gross margin of 31.8%, compared to $4.2 million and a gross margin of 28.8% in Q3 2024. The improvement is due to achieving a gross margin at the higher end of the expected range.
Operating Expenses $7.4 million for Q3 2025, up from $6.5 million in Q3 2024. The increase is due to the relative weakness of the U.S. dollar against the Israeli shekel and Danish krone.
Operating Loss $2.4 million for Q3 2025, compared to $2.3 million in Q3 2024. The slight increase is due to higher operating expenses.
Net Loss $2.1 million for Q3 2025, compared to $1.7 million in Q3 2024. The increase is attributed to higher operating expenses and currency exchange impacts.
Loss Per Share $0.36 for Q3 2025, compared to $0.28 in Q3 2024. The increase is due to the higher net loss.
Working Capital and Marketable Securities $114 million as of September 30, 2025, including $76 million in cash, deposits, and highly rated bonds, with no debt. This represents approximately $20 per share.
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Silicom Scheduled to Announce Q4 Earnings on January 29
- Earnings Announcement Date: Silicom (SILC) is set to release its Q4 2023 earnings report on January 29 before market open, with investors keenly awaiting performance insights to gauge future growth potential.
- Earnings Expectations: The consensus EPS estimate stands at -$0.37, reflecting a 36.2% year-over-year decline, indicating challenges in profitability that could impact investor confidence.
- Revenue Expectations: The consensus revenue estimate is $15.65 million, representing a 7.9% year-over-year increase, suggesting that despite profitability pressures, Silicom maintains a positive trajectory in revenue growth, potentially attracting investor interest.
- Historical Performance Review: Over the past two years, Silicom has beaten EPS estimates 38% of the time and revenue estimates 50% of the time, indicating a degree of capability to exceed expectations, which may heighten anticipation for the upcoming earnings report.
Silicom Projects Q1 2026 Revenue Growth Amid Positive Earnings
- Earnings Beat: Silicom's Q4 non-GAAP EPS of -$0.34 exceeded expectations by $0.03, indicating an improvement in profitability despite remaining in the red.
- Significant Revenue Growth: The company reported Q4 revenue of $16.91 million, a 16.6% year-over-year increase, surpassing market expectations by $1.26 million, reflecting strong product demand that boosted overall performance.
- Optimistic Guidance: Management projects Q1 2026 revenues between $16.5 million and $17.5 million, above the $15.97 million consensus, indicating confidence in future growth with an expected 18% year-over-year increase at the midpoint.
- Long-term Growth Outlook: This earnings report reaffirms the company's expectation of achieving double-digit annual growth in 2026, showcasing its competitive position and potential for sustained development in the market.