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SILC

Silicom Ltd.

SILC

Silicom Ltd. • NASDAQ
$15.00 ▼ -3.35% (-0.52)
Market Cap $85.11 M
52w High $19.36
52w Low $12.44
Dividend Yield 0%
P/E -5.75
Volume 10.89K
Outstanding Shares 5.67M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $15.614M ▲ $7.977M ▲ $-2.802M ▲ -17.945% ▲ $-0.49 ▲ $-2.566M ▲
Q2-2025 $15.019M ▲ $7.871M ▲ $-3.337M ▼ -22.219% ▼ $-0.59 ▼ $-3.033M ▲
Q1-2025 $14.385M ▼ $7.49M ▼ $-2.806M ▲ -19.506% ▲ $-0.49 ▲ $-3.215M ▼
Q4-2024 $14.491M ▼ $7.711M ▲ $-6.13M ▼ -42.302% ▼ $-1.06 ▼ $-3.026M ▼
Q3-2024 $14.756M $7.276M $-2.63M -17.823% $-0.44 $-2.598M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $55.139M ▼ $151.206M ▲ $31.634M ▲ $119.572M ▼
Q2-2025 $64.294M ▼ $147.813M ▼ $26.087M ▲ $121.726M ▼
Q1-2025 $72.09M ▼ $149.688M ▼ $25.012M ▲ $124.676M ▼
Q4-2024 $72.143M ▲ $150.409M ▼ $22.57M ▼ $127.839M ▼
Q3-2024 $69.307M $157.639M $23.288M $134.351M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-3.337M ▼ $0 $0 $0 $0 $0
Q1-2025 $-2.806M ▲ $0 $0 $0 $0 $0
Q4-2024 $-6.13M ▼ $0 $0 $0 $0 $0
Q3-2024 $-2.63M ▼ $0 $0 $0 $0 $0
Q2-2024 $-1.516M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement Silicom moved from being a steadily profitable business to posting losses in the last two years. Revenue grew nicely up to 2022, then dropped sharply in 2023 and weakened again in 2024 as customers worked through excess inventory. Gross profit remains positive, but the gap between sales and costs has narrowed, and operating expenses now outweigh gross profit, leading to operating and net losses. Earnings per share have swung from solidly positive to clearly negative, highlighting pressure on both demand and pricing. The core message: the business model still generates value-added products, but the income statement shows a company currently in a downturn that needs revenue recovery or cost adjustments to restore profitability.

Balance Sheet

Balance Sheet The balance sheet looks conservative but has been slowly weakening. The company carries very little debt and keeps a meaningful cash cushion relative to its size, which provides resilience while it navigates the downturn. However, total assets and shareholders’ equity have been drifting down, reflecting ongoing losses and limited growth investment. There is no sign of balance sheet stress today, but if losses were to continue for several more years without a turnaround, the gradual erosion of equity would become a more important concern.

Cash Flow

Cash Flow Despite the reported losses, cash generation is a relative bright spot. Operating cash flow has turned consistently positive in the most recent years, suggesting that working capital management and non-cash charges help offset weaker earnings. Free cash flow is also positive lately, helped by very light capital spending. This means that, for now, the business is not burning cash even though the income statement is in the red. The flip side is that low investment may limit how aggressively the company can expand capacity or accelerate new product initiatives without changing its spending pattern.

Competitive Edge

Competitive Edge Silicom operates in a focused niche within communication equipment, providing specialized networking, edge, and acceleration hardware to large cloud, security, and telecom players. Its main edge comes from being deeply embedded in customers’ systems through “design wins,” custom engineering, and a broad product portfolio that solves complex, performance-critical problems. Once a product is designed in, switching suppliers can be costly and risky for customers, which supports long-lasting relationships. At the same time, the company sells into demanding, concentrated markets with strong global competitors and fast technology cycles. This creates sensitivity to customer spending decisions, design-win timing, and broader network and cloud investment trends, as reflected in the recent revenue downturn.

Innovation and R&D

Innovation and R&D Innovation is clearly a core pillar for Silicom. The company focuses on high-speed networking cards, SmartNICs, FPGA-based solutions, and edge and uCPE platforms that support trends like SD-WAN, SASE, and network function virtualization. Its strength lies less in mass-market products and more in highly tailored, high-performance platforms co-developed with leading customers and software partners. This customization capability, plus deep expertise with key processor technologies, underpins its design-win strategy. The pipeline of new design wins in areas such as edge computing and programmable networking points to potential future growth, but the timing and scale of revenue from these wins can be uneven and depend on how quickly customers ramp their own deployments.

Summary

Silicom is a niche networking hardware specialist with strong technical capabilities, sticky customer relationships, and a conservative balance sheet. Recent years, however, show a clear setback: revenue has fallen from prior peaks, margins have compressed, and the company has shifted from profitability to losses, even as cash flow has remained positive. Strategically, Silicom is aligned with important long-term themes—cloud, cybersecurity, SD-WAN, SASE, and edge computing—and continues to win complex, customized design slots with major customers. The key questions going forward are whether and when the current design-win momentum will translate into a sustained recovery in revenue and profit, and how well the company can balance investment in innovation with maintaining its financial strength during this transition period.

NEWS

October 30, 2025 · 8:15 AM UTC

Silicom Reports Q3 2025 Results

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October 28, 2025 · 8:30 AM UTC

Silicom Awarded $3M Design Win from SASE Leader

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September 30, 2025 · 8:30 AM UTC

SILICOM'S THIRD QUARTER 2025 RESULTS RELEASE SCHEDULED FOR OCTOBER 30, 2025

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September 29, 2025 · 8:30 AM UTC

Silicom Awarded $2M/Yr Design Win for Cryptography Hardware Acceleration Solution by Application Delivery Leader

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September 4, 2025 · 8:30 AM UTC

Long-Term Network Optimization Customer Selects Silicom Edge Systems as its Next-Generation Platforms

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