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Off-the-Shelf Products October 30, 2025Investor Presentation
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2 Safe Harbor Guidelines & Legal Notes The information presented today contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, anticipated future financial and operating results and Silicom’s outlook and prospects. Those statements are based on management’s current beliefs, expectations and assumptions, which may be affected by subsequent business, political, environmental, regulatory, economic and other conditions, and are subject to known and unknown risks and uncertainties and other factors many of which are outside Silicom’s control, which might cause actual results to differ materially from expectations expressed or implied in the forward looking statements, and which 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 Securities and Exchange Commission (the "SEC"). Therefore, there can be no assurance that actual future results will not differ significantly from anticipated results. Consequently, you are cautioned not to rely on these forward-looking statements. Silicom does not undertake to update any forward-looking statements as a result of new information or future events or developments except as may be required by law. Financial information as presented herein, may be considered "non-GAAP financial measures" under Regulation G and related reporting requirements promulgated by the SEC as they apply to Silicom. Please refer to Silicom’s disclosure documents filed or furnished with the SEC, including Silicom’s Annual Reports on Form 20-F and/or quarterly reports on Form 6-K, for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Silicom provides such non-GAAP data to investors as supplemental data and not in substitution of or replacement for, GAAP measures.
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3 Corporate Overview Leading provider of Data Center & Edge Computing solutions for service provider, mobile operator, telecom, cloud and on-premise infrastructures 20+ years of experience delivering high performance networking products, Edge compute systems, HW accelerators, and FPGA-based products Positioned to benefit from the growth of multiple rapidly-expanding markets: SD-WAN/SASE, Cyber Security, Cloud, Data Centers, Finance and Edge-AI Leading supplier of innovative Edge/CPE units, SD-WAN/SASE Edge systems, Encryption and other hardware acceleration Smart NICs, and FPGA-based programable NICs to leading global service providers, server manufacturers and OEMs
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4 Financial and Business Performance Large global, solid, loyal customer base including many Tier-1 market leaders Cash & Cash Equivalents: $76 million, no debt Robust fundamental demand for our SD-WAN/Smart Edge systems, Acceleration solutions, and Programable NIC products Working capital + marketable securities: $114 million (cash, deposits, very high quality of marketable securities and inventory). Represents $20 per share. Strong balance sheet: $120 million Shareholders’ Equity
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5 Large Global Customer Base 400+ active Design Wins with 200+ customers, including numerous market leaders
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6 Diverse Attractive Markets % of last twelve-month revenues Based on proprietary Company data and analysis Cyber Security 34% Network Appliances (Including content delivery, WAN optimization, etc.) 20% Platforms / Infrastructure (Including SD-WAN/SASE, routers, switches, etc.) 32% Others 6% Finance 8% North America 75% EMEA 17% APAC 8% Market Segments Global Markets
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7 Strategic Plan Tightly control expenses and align them with the plan’s objectives Maintain our strong balance sheet Build a broad pipeline of sales opportunities with a significant upside potential Focus on core product lines: • Edge Systems – SD-WAN, SASE, routers, switches, ruggedized systems • Smart NICs – hardware accelerators & Network Interface Cards • FPGA - Programmable Network Interface Cards Win more projects and Design Wins - 7-9 new DWs every year Main objective – achieve EPS of $3+ as we return to revenues of $150-160 million Achieve double digit annual growth rates starting from 2026 `
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Transforming Opportunities into Design Wins & Revenues: Edge Systems Edge System Opportunities Design Wins & Revenues Edge System Opportunities Cyber security White label switch ~$4M/year Service provider Managed network security & Edge computing ~$7M/year Service provider Universal CPE ~$4M/year Cyber security OT security ~$2M/year Cyber security Network monitoring ~$1.5M/year Design Wins & Revenues Networking and Security -As-A-Service Edge compute $3M-$4M/year Cyber security SASE ~$3M/year Connected services solutions SD-WAN ~$3M/year Cyber security Network observability ~$2M/year Service provider Managed network security & Edge computing ~$1M/year Network optimization WAN optimization ~$4M/year
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Transforming Opportunities into Design Wins & Revenues: Smart NICs Smart NIC Opportunities Design Wins & Revenues Design Wins & Revenues US Government Machine communication ~$1M/year Cyber security DDOS protection ~$1M/year Cyber security SASE infrastructure ~$0.5M/year Test & Measurement Test equipment ~$2.5M/year Smart NIC Opportunities Application delivery Load balancer ~$1M/year AI Data Infrastructure Storage networking ~$10M/year Cyber security DDOS protection ~$3M/year Streaming services Content delivery networking ~$2.5M/year Gaming services Networking infrastructure ~$4M/year
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Transforming Opportunities into Design Wins & Revenues: FPGAs FPGA Opportunities Design Wins & Revenues Design Wins & Revenues Financial trading High frequency trading ~$2M/year Semiconductor machines Image processing ~$1M/year Cyber security Network monitoring ~$3M/year Streaming services Security offload ~$4M/year Application delivery Security offload ~$2M/year FPGA Opportunities Cyber security Security offload ~$3M/year Network equipment Optical carrier equipment ~$4M/year Service provider Hardware acceleration ~$8M/year Network equipment Telco equipment ~$7M/year
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Financials
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12 Q3/2025 Financials (Non-GAAP) (in millions, except EPS data) % of RevenuesQ3/2025 100%$15.6Revenues 31.8%$5.0Gross Profit (15.6)%$(2.4)Operating Income (loss) (13.3)%$(2.1)Net Income (loss) $(0.36)EPS (diluted) 5.71Total number of outstanding shares
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13 Q1-Q3/2025 Financials (Non-GAAP) (in millions, except EPS data) % of RevenuesQ1-Q3/2025 100%$45.0Revenues 31.3%$14.1Gross Profit (16.0)%$(7.2)Operating Income (loss) (13.7)%$(6.1)Net Income (loss) $(1.08)EPS (diluted) 5.71Total number of outstanding shares
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14 Balance Sheet (in millions) September 30, 2025 $75.8Cash & Cash Equivalents $93.0Working Capital $151.2Total Assets --Total Debt $31.6Total Liabilities $119.6Stockholders’ Equity Strong Balance Sheet