- Strategic PQC-related and Edge design wins expected to lead to double digit growth in 2026 and beyond -
KFAR SAVA, Israel, Oct. 30, 2025 /PRNewswire/ -- Silicom Ltd. $(SILC)$, a leading provider of high-performance networking and data infrastructure solutions, today reported its financial results for the third quarter ended September 30, 2025.
Financial Results
Third quarter: Silicom's revenues for the third quarter of 2025 were $15.6 million compared with $14.8 million for the third quarter of 2024.
On a GAAP basis, the company's net loss for the quarter totalled $2.8 million, or $0.49 per ordinary share (basic and diluted), compared with $2.6 million, or $0.44 per ordinary share (basic and diluted), for the third quarter of 2024.
On a non-GAAP basis (as described and reconciled below), net loss for the quarter totalled $2.1 million, or $0.36 per ordinary share (basic and diluted), compared with $1.7 million, or $0.28 per ordinary share (basic and diluted) for the third quarter of 2024.
First Nine Months: Silicom's revenues for the first nine months of 2025 were $45.0 million compared with $43.6 million for the first nine months of 2024.
On a GAAP basis, net loss for the period totalled $8.9 million, or $1.57 per ordinary share (basic and diluted), compared with $7.6 million, or $1.24 per ordinary share (basic and diluted), for the first nine months of 2024.
On a non-GAAP basis (as described and reconciled below), net loss for the period totalled $6.1 million, or $1.08 per ordinary share (basic and diluted), compared with $4.9 million, or $0.80 per ordinary share (basic and diluted), for the first nine months of 2024.
Guidance
Management projects that revenues for the fourth quarter of 2025 will range from $15 million to $16 million.
Comments of Management
Liron Eizenman, Silicom's President and CEO, commented, "The third quarter was another period of strong execution according to our strategic plan, marked by exciting Design Win momentum: eight Design Wins already during 2025, surpassing the lower end of our 2025 target range and just one short of the upper end. This, combined with our on-target achievement of project milestones and forward progress with pipeline opportunities, leads us to continue projecting double-digit growth in 2026 and beyond, supporting the ultimate target of our strategic plan: an EPS above $3 on annual revenues of $150 to $160 million."
Mr. Eizenman continued, "We were particularly excited to achieve our second PQC (Post-Quantum Cryptography)-related Win within just a few months. Although quantum computers will not be widely available for several years, suppliers of communications equipment and services must plan now in order to defend effectively against 'harvest now, decrypt later' attack strategies. The fact that we already offer a mature PQC-ready solution differentiates us clearly as an advanced technology partner, bringing us interest from both equipment suppliers and service providers.
"In parallel, our two Edge-related Wins during the quarter -- one with a long-term customer and the other with a new client -- demonstrate again the value of our broad portfolio and our sterling reputation as a trusted partner. Design Wins such as all of these will be the basis for the strong growth we have projected for the future."
Mr. Eizenman concluded, "As we move into 2026, we expect to see many more opportunities in our funnel transform into Design Wins, along with numerous new opportunities for all of our product lines entering the funnel. We have therefore set an aggressive target for 2026: 7 to 9 new Design Wins across all our product lines, including FPGAs, Edge solutions and Smart NICs. With unique technologies, highly satisfied customers, a motivated team and a strong balance sheet, we are ideally positioned to achieve all of these goals, thereby delivering significant value for our shareholders."
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Conference Call Details
Silicom's Management will host an interactive conference today, October 30(th) , at 9am Eastern Time (6am Pacific Time, 3pm Israel Time) to review and discuss the results.
To participate, investors may either listen via a webcast link hosted on Silicom's website or via the dial-in. The link is under the investor relations' webcast section of Silicom's website at https://www.silicom-usa.com/webcasts/
For those that wish to dial in via telephone, one of the following teleconferencing numbers may be used:
US: 1 866 860 9642
ISRAEL: 03 918 0609
INTERNATIONAL: +972 3 918 0609
At: 9:00am Eastern Time, 6:00am Pacific Time, 3:00pm Israel Time
It is advised to connect to the conference call a few minutes before the start.
For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call under the above-mentioned webcast section of Silicom's website.
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Non-GAAP Financial Measures
This release, including the financial tables below, presents other financial information that may be considered "non-GAAP financial measures" under Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission (the "SEC") as they apply to our company. These non-GAAP financial measures exclude compensation expenses in respect of options and RSUs granted to directors, officers and employees, taxes on amortization of acquired intangible assets, as well as lease liabilities - financial expenses (income). Non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the non-GAAP financial measures as well as reconciliation between the non-GAAP financial measures and the most comparable GAAP financial measures. The non-GAAP financial information presented herein should not be considered in isolation from or as a substitute for operating income (loss), net income (loss) or per share data prepared in accordance with GAAP.
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed primarily to improve performance and efficiency in Cloud and Data Center environments, Silicom's solutions increase throughput, decrease latency and boost the performance of servers and networking appliances, the infrastructure backbone that enables advanced Cloud architectures and leading technologies like NFV, SD-WAN and Cyber Security. Our innovative solutions for high-density networking, high-speed fabric switching, offloading and acceleration, which utilize a range of cutting-edge silicon technologies as well as FPGA-based solutions, are ideal for scaling-up and scaling-out cloud infrastructures.
Silicom products are used by major Cloud players, service providers, telcos and OEMs as components of their infrastructure offerings, including both add-on adapters in the Data Center and stand-alone virtualized/universal CPE devices at the edge.
Silicom's long-term, trusted relationships with more than 200 customers throughout the world, its more than 400 active Design Wins and more than 300 product SKUs have made Silicom a "go-to" connectivity/performance partner of choice for technology leaders around the globe.
For more information, please visit: www.silicom.co.il
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, Silicom's increasing dependence for substantial revenue growth on a limited number of customers, the speed and extent to which Silicom's solutions are adopted by the relevant markets, difficulty in commercializing and marketing of Silicom's products and services, maintaining and protecting brand recognition, protection of intellectual property, competition, disruptions to its manufacturing, sales & marketing, development and customer support activities, the impact of the wars in Gaza and in the Ukraine, attacks on shipping by Huthis in the Red Sea, rising inflation, rising interest rates and volatile exchange rates, as well as any continuing or new effects resulting from the COVID-19 pandemic, and the global economic uncertainty, which may impact customer demand by encouraging them to exercise greater caution and selectivity with their short-term IT investment plans. The factors noted above are not exhaustive.
Further information about the company's businesses, including information about factors that could materially affect Silicom's results of operations and financial condition, are discussed in our Annual Report on Form 20-F and other documents filed by the Company and that may be subsequently filed by the company from time to time with the SEC. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "expect, " "should," "believe," "anticipate" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. In light of significant risks and uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the company that it will achieve such forward-looking statements. The company disclaims any duty to update such statements, whether as a result of new information, future events, or otherwise.
Company Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
Investor Relations Contact:
Ehud Helft
EK Global Investor Relations
Tel: +1 212 378 8040
E-mail: silicom@ekgir.com
-- FINANCIAL TABLES FOLLOW --
Silicom Ltd. Consolidated Balance Sheets
(US$ thousands)
September 30, December 31,
2025 2024
(Unaudited) (Audited)
--------------- --------------
Assets
Current assets
Cash and cash equivalents $ 38,419 $ 51,283
Short-term bank deposits 6,000 -
Marketable securities 10,720 20,860
Accounts receivables: Trade, net 11,718 11,748
Accounts receivables: Other 4,557 4,839
Inventories 45,503 41,060
----------
Total current assets 116,917 129,790
----------- ----------
Marketable securities 20,617 6,839
Assets held for employees' severance
benefits 1,694 1,483
Property, plant and equipment, net 3,096 3,055
Intangible assets, net 2,457 2,300
Right of Use 6,425 6,942
Total assets $ 151,206 $ 150,409
=========== ==========
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable $ 10,296 $ 6,477
Other accounts payable and accrued expenses 11,711 6,945
Lease Liabilities 1,957 1,670
Total current liabilities 23,964 15,092
Lease Liabilities 4,454 4,797
Liability for employees' severance benefits 2,933 2,649
Deferred tax liabilities 283 32
----------- ----------
Total liabilities 31,634 22,570
----------- ----------
Shareholders' equity
Ordinary shares and additional paid-in
capital 76,196 73,859
Treasury shares (55,171) (53,512)
Retained earnings 98,547 107,492
----------- ----------
Total shareholders' equity 119,572 127,839
----------- ----------
Total liabilities and shareholders' equity $ 151,206 $ 150,409
=========== ==========
Silicom Ltd. Consolidated Statements of Operations
(Unaudited, US$ thousands, except for share and per share data)
Three-month period Nine-month period
ended September 30, ended September 30,
----------------------- -----------------------
2025 2024 2025 2024
------------ --------- ------------ ---------
Sales $ 15,614 $ 14,756 $ 45,018 $ 43,623
Cost of sales 10,717 10,593 31,131 31,158
-------- -------- -------- --------
Gross profit 4,897 4,163 13,887 12,465
-------- -------- -------- --------
Research and
development
expenses 4,998 4,958 15,033 14,827
Selling and
marketing
expenses 1,791 1,366 4,796 4,360
General and
administrative
expenses 1,188 952 3,509 2,978
Total operating
expenses 7,977 7,276 23,338 22,165
-------- -------- -------- --------
Operating income
(loss) (3,080) (3,113) (9,451) (9,700)
Financial income
(expenses), net 514 515 1,340 1,601
Income (loss)
before income
taxes (2,566) (2,598) (8,111) (8,099)
Income taxes 236 32 834 (521)
-------- -------- -------- --------
Net income (loss) $ (2,802) $ (2,630) $ (8,945) $ (7,578)
======== ======== ======== ========
Basic and diluted
income (loss) per
ordinary share
(US$) $ (0.49) $ (0.44) $ (1.57) $ (1.24)
======== ======== ======== ========
Weighted average
number of
ordinary shares
used to compute
basic and diluted
income (loss) per
share (in
thousands) 5,706 5,919 5,707 6,090
======== ======== ======== ========
Silicom Ltd. Reconciliation of Non-GAAP Financial Results
(Unaudited, US$ thousands, except for share and per share data)
Three-month period Nine-month period
ended September 30, ended September 30,
----------------------- -----------------------
2025 2024 2025 2024
------------ --------- ------------ ---------
GAAP gross profit $ 4,897 $ 4,163 $ 13,887 $ 12,465
(1) Share-based
compensation (*) 64 82 215 193
Non-GAAP gross
profit $ 4,961 $ 4,245 $ 14,102 $ 12,658
======== ======== ======== ========
GAAP operating
income (loss) $ (3,080) $ (3,113) $ (9,451) $ (9,700)
Gross profit
adjustments 64 82 215 193
(1) Share-based
compensation (*) 584 777 2,049 2,113
Non-GAAP operating
income (loss) $ (2,432) $ (2,254) $ (7,187) $ (7,394)
======== ======== ======== ========
GAAP net income
(loss) $ (2,802) $ (2,630) $ (8,945) $ (7,578)
Operating income
(loss)
adjustments 648 859 2,264 2,306
(2) Lease
liabilities -
Financial
expenses
(income) 79 98 534 (9)
(3) Taxes on
amortization of
acquired
intangible
assets - 22 - 397
-------- -------- -------- --------
Non-GAAP net
income (loss) $ (2,075) $ (1,651) $ (6,147) $ (4,884)
======== ======== ======== ========
GAAP net income
(loss) $ (2,802) $ (2,630) $ (8,945) $ (7,578)
Adjustments for
Non-GAAP Cost of
sales 64 82 215 193
Adjustments for
Non-GAAP Research
and development
expenses 245 386 939 986
Adjustments for
Non-GAAP Selling
and marketing
expenses 207 191 568 537
Adjustments for
Non-GAAP General
and
administrative
expenses 132 200 542 590
Adjustments for
Non-GAAP
Financial income
(loss), net 79 98 534 (9)
Adjustments for
Non-GAAP Income
taxes - 22 - 397
-------- -------- -------- --------
Non-GAAP net
income (loss) $ (2,075) $ (1,651) $ (6,147) $ (4,884)
======== ======== ======== ========
GAAP basic and
diluted income
(loss) per
ordinary share
(US$) $ (0.49) $ (0.44) $ (1.57) $ (1.24)
(1) Share-based
compensation (*) 0.12 0.14 0.40 0.37
(2) Lease
liabilities -
Financial
expenses
(income) 0.01 0.02 0.09 -
(3) Taxes on
amortization of
acquired
intangible
assets - - - 0.07
Non-GAAP basic and
diluted income
(loss) per
ordinary share
(US$) $ (0.36) $ (0.28) $ (1.08) $ (0.80)
======== ======== ======== ========
(*) Adjustments related to share-based compensation expenses
according to ASC topic 718 (SFAS 123 (R))
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SOURCE Silicom Ltd.
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October 30, 2025 08:15 ET (12:15 GMT)
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