Earnings release
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Exhibit 99.1 FOR IMMEDIATE RELEASE EARNINGS RELEASE Silicom Reports Q2 2026 Results - 59% revenue growth driven by continued expansion of core business - - Return to quarterly bottom-line profitability projected by end of year - KFAR SAVA, Israel, July 29, 2026 - Silicom Ltd. (NASDAQ: SILC), an industry-leading provider of high-performance server/appliance networking solutions, today reported its financial results for the second quarter ended June 30, 2026. Financial Results Second quarter: Silicom’s revenues for the second quarter of 2026 rose 59% to $23.8 million compared with $15.0 million for the second quarter of 2025. On a GAAP basis, the company’s net loss for the quarter totalled $2.1 million, or $0.37 per ordinary share (basic and diluted), a 37% improvement compared with $3.3 million, or $0.59 per ordinary share (basic and diluted), for the second quarter of 2025. On a non-GAAP basis (as described and reconciled below), net loss for the quarter totalled $0.9 million, or $0.16 per ordinary share (basic and diluted), compared with $2.0 million, or $0.35 per ordinary share (basic and diluted), for the second quarter of 2025. First Six Months: Silicom’s revenues for the first half of 2026 rose by 46% to $42.9 million from $29.4 million for the first half of 2025. On a GAAP basis, net loss for the period totalled $4.5 million, or $0.78 per ordinary share (basic and diluted), a 27% improvement compared with $6.1 million, or $1.08 per ordinary share (basic and diluted), for the first half of 2025. On a non-GAAP basis (as described and reconciled below), net loss for the period totalled $2.4 million, or $0.41 per ordinary share (basic and diluted), a 42% improvement compared with $4.1 million, or $0.71 per ordinary share (basic and diluted), for the first half of 2025. Guidance Based on the faster-than-projected growth of our core business, our third quarter revenues are expected to reach $25-$26 million, representing 66% growth year-over-year at the upper end of the guidance. With the continued strong momentum of our core business and the additional multi-million-dollar revenues expected from AI-Inference production orders, we are now raising our full-year revenue guidance significantly to $93 to $95 million, representing more than 50% growth on a year-over-year basis.
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Comments of Management Liron Eizenman, Silicom’s President and CEO, commented, "We are pleased to report 59% year-over-year revenue growth for the quarter and to project continued strong momentum in the quarters ahead. Based on our current trajectory and the leverage inherent in our business model, we now expect to return to quarterly non-GAAP profitability during the second half of the year, significantly earlier than originally anticipated. These results validate our strategic roadmap, which combines the strength of our established, fast-growing core business with the game-changer growth potential of the rapidly expanding AI-Inference market. Together, these complementary growth engines position Silicom to deliver sustainable, long-term value creation. “Execution across the business has been exceptionally strong. So far this year, we secured seven new Design Wins, already reaching the lower end of our full-year target of seven to nine wins. These Design Wins demonstrate not only the competitiveness of our technology, but also the long-term value of the trusted relationships we have cultivated over decades with blue-chip customers. These relationships continue to generate recurring opportunities, with each Design Win opening the door to the next, strengthening the visibility we have into continued growth in 2027 and beyond.” Mr. Eizenman continued, “Equally important, we achieved a major strategic milestone during the quarter with our first production order for an AI-Inference-specific solution. This marks the commercial launch of our AI-Inference product family and establishes a foundation for what we believe can become an exceptional revenue stream. In parallel, we continue to advance multiple AI-Inference development programs and proof-of-concept projects with customers, capitalizing on the increasing shift in AI infrastructure spending from training to inference at scale.” Mr. Eizenman concluded, “Looking ahead, we have never been more confident in Silicom's outlook. Our core business continues to outperform expectations, and our AI-Inference initiatives are progressing rapidly. Supported by a strong balance sheet and solid cash position, we have the financial flexibility to invest aggressively in these opportunities while maintaining financial discipline. We believe that Silicom is entering a new phase of accelerated revenue growth, expanding profitability, and long-term value creation for our shareholders. With a strong foundation in place, we remain fully focused on disciplined execution and creating lasting value for our customers and shareholders." *** Conference Call Details Silicom’s Management will host an interactive conference today, July 29th, at 9am Eastern Time (6am Pacific Time, 4pm 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/
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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, 4:00pm 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. *** About Silicom Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed to optimize performance and efficiency in Cloud, Data Center and Edge environments, Silicom’s solutions increase throughput and minimize latency, serving as the infrastructure backbone for today’s most critical technologies. Our innovations empower high-demand workloads across Artificial Intelligence (AI) inference, SD-WAN, SASE, cyber security, fabric switching, NFV, and more. Our comprehensive portfolio, including high-speed server adapters, advanced hardware offloading and acceleration engines, AI NICs, FPGA-based smart cards, Post Quantum Cryptography (PQC) hardware accelerators, white label switches and Edge CPEs, is used by Tier- 1 customers throughout the world, including cloud players, service providers and OEMs, to enable their networks to scale efficiently. With engineering excellence, a strong financial position and a legacy of over 400 active Design Wins, Silicom serves as the "go-to" connectivity and performance partner for technology leaders around the globe, and drives the next generation of infrastructure. For more information, please visit: www.silicom.co.il Statements in this press release which are not historical data are forward-looking statements within the meaning of applicable securities laws 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. For example, when the Company discusses its revenue outlook or guidance for future periods, growth opportunities, market demand for its products and solutions, expected customer deployments, the scalability of its business model, operating performance, strategic partnerships, technology leadership, or industry trends affecting cloud infrastructure, artificial intelligence workloads, networking acceleration technologies or telecommunications markets, it is using forward-looking statements.
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Additional factors include, but are not limited to, Silicom’s dependence for substantial revenue growth on a limited number of customers, industry trends affecting networking and data center infrastructure, including the migration to cloud architectures, disaggregation of networking systems and the separation of hardware and software solutions; the pace of adoption of emerging technologies such as artificial intelligence inference infrastructure; the timing and extent of market adoption of Silicom’s new products and of new Design Wins achieved by Silicom; fluctuations in customer purchasing cycles and the timing of customer deployments; protection of intellectual property, changes in exchange rates; and the wars in Gaza, Lebanon and with Iran, as well as the war in the Ukraine, and existing and potential disruptions to global shipping routes such as the Straits of Hormuz and the Red Sea. 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 Silicom 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 Silicom 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. 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, 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. 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 –
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Silicom Ltd. Consolidated Balance Sheets (US$ thousands) June 30, December 31, 2026 2025 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents $ 25,146 $ 35,156 Short-term bank deposits - 6,000 Marketable securities 6,191 6,958 Accounts receivables: Trade, net 16,394 9,194 Accounts receivables: Other 5,087 3,155 Inventories 70,725 52,650 Total current assets 123,543 113,113 Marketable securities 23,599 25,518 Assets held for employees’ severance benefits 1,771 1,670 Deferred tax assets 46 - Property, plant and equipment, net 3,546 3,140 Intangible assets, net 4,284 2,569 Right of Use 6,114 6,147 Total assets $ 162,903 $ 152,157 Liabilities and shareholders' equity Current liabilities Trade accounts payable $ 25,218 $ 11,116 Other accounts payable and accrued expenses 13,071 14,116 Lease Liabilities 2,063 2,019 Total current liabilities 40,352 27,251 Lease Liabilities 4,377 4,252 Liability for employees’ severance benefits 3,334 3,049 Deferred tax liabilities - 116 Total liabilities 48,063 34,668 Shareholders' equity Ordinary shares and additional paid-in capital 78,452 76,647 Treasury shares (55,171) (55,171) Retained earnings 91,559 96,013 Total shareholders' equity 114,840 117,489 Total liabilities and shareholders' equity $ 162,903 $ 152,157
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Silicom Ltd. Consolidated Statements of Operations (Unaudited, US$ thousands, except for share and per share data) Three-month period Six-month period ended June 30, ended June 30, 2026 2025 2026 2025 Sales $ 23,806 $ 15,019 $ 42,904 $ 29,404 Cost of sales 16,637 10,304 30,092 20,414 Gross profit 7,169 4,715 12,812 8,990 Research and development expenses 5,746 5,109 11,012 10,035 Selling and marketing expenses 2,000 1,518 3,861 3,005 General and administrative expenses 1,416 1,244 2,740 2,321 Total operating expenses 9,162 7,871 17,613 15,361 Operating income (loss) (1,993) (3,156) (4,801) (6,371) Financial income (expenses), net 106 123 558 826 Income (loss) before income taxes (1,887) (3,033) (4,243) (5,545) Income taxes 200 304 211 598 Net income (loss) $ (2,087) $ (3,337) $ (4,454) $ (6,143) Basic and diluted income (loss) per ordinary share (US$) $ (0.37) $ (0.59) $ (0.78) $ (1.08) Weighted average number of ordinary shares used to compute basic and diluted income (loss) per share (in thousands) 5,713 5,680 5,710 5,707
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Silicom Ltd. Reconciliation of Non-GAAP Financial Results (Unaudited, US$ thousands, except for share and per share data) Three-month period Six-month period ended June 30, ended June 30, 2026 2025 2026 2025 GAAP gross profit $ 7,169 $ 4,715 $ 12,812 $ 8,990 (1) Share-based compensation (*) 71 74 158 151 Non-GAAP gross profit $ 7,240 $ 4,789 $ 12,970 $ 9,141 GAAP operating income (loss) $ (1,993) $ (3,156) $ (4,801) $ (6,371) Gross profit adjustments 71 74 158 151 (1) Share-based compensation (*) 832 718 1,647 1,465 Non-GAAP operating income (loss) $ (1,090) $ (2,364) $ (2,996) $ (4,755) GAAP net income (loss) $ (2,087) $ (3,337) $ (2,541) $ (6,143) Operating income (loss) adjustments 903 792 1,805 1,616 (2) Lease liabilities - Financial expenses (income) 284 574 295 455 Non-GAAP net income (loss) $ (900) $ (1,971) $ (441) $ (4,072) GAAP net income (loss) $ (2,087) $ (3,337) $ (4,454) $ (6,143) Adjustments for Non-GAAP Cost of sales 71 74 158 151 Adjustments for Non-GAAP Research and development expenses 436 334 842 694 Adjustments for Non-GAAP Selling and marketing expenses 221 181 457 361 Adjustments for Non-GAAP General and administrative expenses 175 203 348 410 Adjustments for Non-GAAP Financial income (loss), net 284 574 295 455 Non-GAAP net income (loss) $ (900) $ (1,971) $ (2,354) $ (4,072) GAAP basic and diluted income (loss) per ordinary share (US$) $ (0.37) $ (0.59) $ (0.78) $ (1.08) (1) Share-based compensation (*) 0.16 0.14 0.32 0.29 (2) Lease liabilities - Financial expenses (income) 0.05 0.10 0.05 0.08 Non-GAAP basic and diluted income (loss) per ordinary share (US$) $ (0.16) $ (0.35) $ (0.41) $ (0.71) (*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R))