Slides
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November 2025 Q3’25 Business Update
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©2025 Silvaco Group, Inc. 2 Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments, of Silvaco Group, Inc. ("Silvaco" or the “Company”). The information contained herein does not purport to be all-inclusive. The data contained herein is derived from various internal and external sources. No representation is made as to the reasonableness of the assumptions made or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past performance or modeling contained herein is not an indication as to future performance. Silvaco assumes no obligation to update any information in this presentation, except as required by law. This presentation and the accompanying oral presentation include express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” "can," "continue," “could,” “estimate,” "exclude," "expand," “expect,” "explore," "financial targets," "grow," "guidance," "increase," “intend,” "leverage," "long term," “may,” “might,” “plan,” "potential," "predict," “project,” “should,” "strategy," "strengthen," “target,” "utilize," “will,” “would," or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and growth rates, our future results of operations or financial condition, our plans and objectives for future operations, growth, initiatives, or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. These assumptions, uncertainties and risks include, among others, risks related to market conditions and global economic factors (including tariffs, economic headwinds in Asia, the ongoing trade tensions between the U.S. and China, and the potential adverse effects of the ongoing global conflicts between Russia and Ukraine and Israel and its adversaries, including Hamas, Hezbollah, and Iran), our ability to access debt and equity financing, our efforts to establish and maintain proper and effective internal controls, the financial and other impacts of current and future litigation, our ability to successfully integrate recent acquisitions, and other factors relating to our business, operations and financial performance. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which we compete are necessarily subject to a high degree of uncertainty and risk. In addition to the financials presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP net income (loss) per share, and Annual Contract Value (“ACV”). Non-GAAP metrics have limitations as analytical tools and you should not consider them in isolation or as a substitute for or superior to the most directly comparable financial measures prepared in accordance with GAAP. There are a number of limitations related to the use of non-GAAP metrics versus their nearest GAAP equivalents. Other companies, including companies in our industry, may calculate non-GAAP metrics differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non- GAAP metrics as tools for comparison. We urge you to review the reconciliation of Silvaco's non-GAAP metrics to the most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. See the Appendix for reconciliation between each non-GAAP metric and the most comparable GAAP measure. ACV is a key performance metric for Silvaco and is useful to investors in assessing the strength and trajectory of the business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following: (i) the annualized value of term based software licenses with start dates or anniversary dates during the period, plus; (ii) the value of perpetual license contracts with start dates during the period, plus; (iii) the annualized value of maintenance & support as well as any fixed-term services contracts with start dates or anniversary dates during the period, plus; (iv) the value of fixed-deliverable services contracts. Silvaco and the Silvaco logo are registered trademarks of Silvaco Group, Inc. All other trademarks and service marks are the property of their respective owners. Bookings are a key performance metric for Silvaco and is a useful metric to measure whether we are successful in our sales efforts with new and existing customers and provide an indication of trends in our operating results that are not necessarily reflected in our revenue. A booking is defined as a signed contract and related purchase commitment from a customer, based on the value set forth in a purchase order. Reported bookings may be subject to adjustments and potential cancellations prior to the satisfaction of our customer obligations. Silvaco is unable to provide a reconciliation of certain non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis because doing so would not be possible without unreasonable effort due to, among other things, the potential variability and limited visibility of the excluded items. For the same reasons, Silvaco is unable to address the probable significance of the unavailable information. Investors are encouraged to review Silvaco’s Current Report on Form 8-K filed on November 12, 2025, for additional information about the measures Silvaco uses to evaluate its core business operations.
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©2025 Silvaco Group, Inc. 3 5 New Additions to Silvaco Leadership Team All with 20+ Years of Experience Focused on Delivering Profitable Growth Wally Rhines Chris Zegarelli Jack BergAndrew Wright Jasvinder Singh 20+ years including CEO, Mentor Graphics; TI EVP, Chairman, Qorvo, Inc. 20+ years with Broadcom, Qualcomm, GaN Systems and Infineon 20+ Years with Cypress Semiconductor, PsiQuantum, and Nantero 20+ years semiconductor experience with Cypress Semiconductor 20+ Years in EDA, AI, semiconductor, and autonomous systems CEO CFO VP , Business DevelopmentSVP , GM SIP SVP , GM EDA
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©2025 Silvaco Group, Inc. 4 Our Priorities: Financial & Operational Rigor and Capitalizing on Growth Opportunities Capitalize on Growth Opportunities Instill Financial & Operational Rigor R e d u c e S p e n d i n g I n c r e a s e S p e e d A I P o w e r I n t e r c o n n e c t I P F T C O P r o f i t a b l e G r o w t h
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©2025 Silvaco Group, Inc. 5 Q3’25 Financial Highlights +70% Y/Y +55% Q/Q Revenue +131% Y/Y +77% Q/Q Bookings(1) +179bps Y/Y +507bps Q/Q Non-GAAP Gross Margin(3) +55% Y/Y +18% Q/Q Non-GAAP OpEx(3) +29% Y/Y ACV(2)$18.7M $22.8M $65M 81.5% $17.6M +0.3M Y/Y +$3.3M Q/Q Non-GAAP OI (Loss)(3) ($2.3M) 1) A Booking is a signed contract and related purchase commitment from a customer, based on the value set forth in a purchase order. 2) ACV is an operating metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. 3) See the Appendix for definitions and reconciliations of non-GAAP gross margin, non-GAAP operating expense, and non-GAAP operating income (loss) to their nearest comparable GAAP metrics.
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©2025 Silvaco Group, Inc. 6 Q3'25 Business Highlights • Closed acquisition of Mixel Group, Inc. in Q3 • Company-wide cost reduction program initiated, expected to reduce annualized non-GAAP operating expenses by at least $15 million • Leadership Update: New CEO Wally Rhines and new CFO Chris Zegarelli joined the company • Product and Customer Momentum: • Jivaro parasitics reduction tool continues to see growing usage among leading semiconductor companies • Analog Power Conversion LLC adoptsSilvaco’ sDesign Technology Co-Optimization Flow (DTCO) for Next Generation Silicon and Silicon Carbide Power Devices • Vicor Adopts Silvaco’ sVictory TCAD 3D Simulation Solution for Accurate Power Device Modeling and Simulation
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©2025 Silvaco Group, Inc. 7 ($ in millions) Q3’25 Bookings Performance $9.9 $20.3 $13.7 $12.9 $22.8 0 5 10 15 20 25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Quarterly Bookings Trend TCAD $5.4 24% EDA $16.3 71% SIP $1.1 5% → Q3-25 Bookings(1) up 131% YoY due to EDA → Remaining Performance Obligation(2) of $48 million as of September 30, 2025 → TCAD: Down $0.8 million and 13% from previous year → EDA: Up $13.6 million and 513% from previous year → SIP: Up $0.1 million and 11% from previous year Q3-25 Bookings by Product 1) A Booking is a signed contract and related purchase commitment from a customer, based on the value set forth in a purchase order. 2) Remaining Performance Obligation (RPO) represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog, net of cancellations and adjustments.
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©2025 Silvaco Group, Inc. 8 Q3’25 Revenue Performance Revenue → Software License: Term- based licenses (averaging 3 years) and semiconductor IP products → Maintenance & Service: Provides additional consistent recurring revenue ($ in millions) $11.0 $18.7 $54.3 $62.7 Q3-24 Q3-25 Q3-24 TTM Q3-25 TTM Q3 Revenue by Category Q3 Revenue by Product Q3 Revenue by Region → TCAD: Flat from previous year → EDA: Up $7.8 million and 294% from previous year from key PPC expansion → SIP: Down $0.1 million and 6% from previous year → Americas: Up $6.9 million and 207% from previous year driven by higher EDA sales. → APAC: Up $1.0 million and 16% from previous year on higher EDA sales. → EMEA: Down $0.2M and 19% from prior year on lower TCAD sales Software License $13.8 74% Maintenance & Service $4.9 26% TCAD $6.5 35% EDA $10.4 56% SIP $1.7 9% Americas $10.3 55% APAC $7.5 40% EMEA $0.9 , 5% Revenue
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©2025 Silvaco Group, Inc. 9 A Key Metric for Predictable, Recurring Revenue Growth Annual Contract Value (ACV)(1) • ACV estimates the annualized value of term- based software licenses, • Provides insight into revenue expansion and retention. • Used internally to assess performance and structure sales incentives. • Includes maintenance, support and service contracts Overview of ACV 1) ACV is an operating metric the Company uses to better understand the business. There is no GAAP measure comparable to ACV. ACV Calculation Bookings recorded during the period Bookings in the current period with a start date in a future period Bookings from prior periods that commence in the current period Adjustments to normalize time-based licenses and maintenance contracts extending beyond one year + - + +/- $50.2 $65.0 Q3'24 TTM Q3'25 TTM ACV ($ millions) 29%
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©2025 Silvaco Group, Inc. 10 ©2025 Silvaco Group, Inc. Q4 FY25 Guidance → Gross bookings in the range of $15.0 to $19.0 million. → Revenue in the range of $14.0 to $18.0 million. → Non-GAAP gross margin (1) in the range of 78% to 82%. → Non-GAAP operating expense in the range of $16.0 to $18.0 million . Fourth Quarter 2025 Guidance 1) See the Appendix for definitions and reconciliations of non-GAAP operating income (loss), non-GAAP gross margin, and non-GAAP net income (loss) per share to their nearest comparable GAAP metrics.
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©2025 Silvaco Group, Inc. Thank you.
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©2025 Silvaco Group, Inc. 12 Appendix Reconciliation—Non-GAAP Cost of Revenues Note: We define non -GAAP cost of revenues as our GAAP cost of revenues adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense, and acquisition -related professional fees and retention bonus. 1) Reflects the amortization of intangible assets attributable to our acquisitions and the license developed in partnership with NXP Semiconductors Netherlands B.V. (the “NXP IP”). 2) Reflects acquisition -related professional fees and retention bonuses related to acquisitions of OPC/PPC , Tech X, Mixel and other potential acquisitions. Three Months Ended ($ in thousands) Sep. 30, 2025 Sep. 30, 2024 Cost of Revenues $4,133 $2,786 Less: Amortization of acquired intangible assets (1) (249) (249) Stock-based compensation expense (402) (313) Acquisition-related professional fees and retention bonus (2) (32) — Non-GAAP Cost of Revenues $3,450 $2,224
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©2025 Silvaco Group, Inc. 13 Appendix Reconciliation—Non-GAAP Gross Profit and Non-GAAP Gross Margin Note: We define non -GAAP gross profit and gross margin as our GAAP gross profit and gross margin adjusted to exclude amortization of a cquired intangible assets, stock -based compensation expense, and acquisition -related professional fees and retention bonus. 1) Reflects the amortization of intangible assets attributable to our acquisitions and the NXP IP. 2) Reflects acquisition -related professional fees and retention bonuses related to acquisitions of OPC/PPC, Tech X, Mixel and other potential acquisitions. Gross Profit Gross Margin Three Months Ended Three Months Ended ($ in thousands) Sep. 30, 2025 Sep. 30, 2024 Sep. 30, 2025 Sep. 30, 2024 Gross Profit and Gross Margin $14,539 $8,186 78% 75% Add: Amortization of acquired intangible assets (1) 249 249 2% 2% Stock-based compensation expense 402 313 3% 3% Acquisition-related professional fees and retention bonus (2) 32 — 0% — Non-GAAP Gross Profit and Gross Margin $15,222 $8,748 82% 80%
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©2025 Silvaco Group, Inc. 14 Appendix Reconciliation—Non-GAAP Operating Expenses Note: We define non -GAAP operating expenses as adjusted operating expenses to exclude certain costs, including acquisition -related lit igation settlement and legal costs, acquisition -related professional fees and retention bonus, stock -based compensation expense, amortization of acquired intangible assets, and executive severance. 1) Reflects litigation -related expenses incurred in connection with our acquisitions and the Nangate litigation settlement accrual. 2) Reflects acquisition -related professional fees and retention bonuses related to acquisitions of OPC/PPC, Tech -X, Mixel and other potential acquisitions. 3) Reflects the amortization of intangible assets attributable to our acquisitions and the NXP IP. 4) Reflects executive severance that occurred in connection with management changes. Operating Expenses Three Months Ended ($ in thousands) Sep. 30, 2025 Sep. 30, 2024 Operating Expenses $23,881 $15,488 Less: Acquisition-related litigation settlementand legal costs (1) (4) (1,883) Acquisition-related professional fees and retention bonus (2) (1,531) — Amortization of acquired intangible assets (3) (730) (46) Executive severance(4) (1,392) — Stock-based compensation expense (2,670) (2,246) Non-GAAP Operating Expenses $17,554 $11,313
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©2025 Silvaco Group, Inc. 15 Appendix Reconciliation—Non-GAAP Operating Income (Loss) and Non -GAAP Operating Margin Note: We define non -GAAP operating income (loss) and operating margin as our GAAP operating income (loss) and operating margin adjuste d to exclude certain costs, including IPO preparation costs, acquisition -related litigation settlement and legal costs, acquisit ion-related professional fees and retention bonus, stock -based compensation expense, and amortization of acquired intangible assets. 1) Reflects litigation -related expenses incurred in connection with our acquisitions and the Nangate litigation settlement accrual. 2) Reflects acquisition -related professional fees and retention bonuses related to acquisitions of OPC/PPC, Tech -X, Mixel and other potential acquisitions. 3) Reflects the amortization of intangible assets attributable to our acquisitions and the NXP IP. 4) Reflects executive severance that occurred in connection with management changes. Operating (Loss) Income Operating Margin Three Months Ended Three Months Ended ($ in thousands) Sep. 30, 2025 Sep. 30, 2024 Sep. 30, 2025 Sep. 30, 2024 Operating Lossand Operating Margin ($9,342) ($7,302) (50%) (67%) Add: Acquisition-related litigation settlementand legal costs (1) 4 1,883 0% 17% Acquisition-related professional fees and retention bonus (2) 1,563 — 8% — Amortization of acquired intangible assets (3) 979 295 5% 3% Executive severance(4) 1,392 — 7% — Stock-based compensation expense 3,072 2,559 16% 23% Non-GAAP Operating (Loss) Income and Operating Margin ($2,332) ($2,565) (12%) (23%)
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©2025 Silvaco Group, Inc. 16 Appendix Reconciliation—Non-GAAP Diluted Net Income (Loss) Per Share Note: We define diluted non -GAAP net (loss) income per share as our GAAP diluted net (loss) income per share adjusted to exclude certain costs, including IPO preparation costs, acquisition -related litigation settlement and legal costs, acquisition -related professional fees and retention bonus, stock -based compensation expense, amortization of acquired intangible assets , executive severance, change in fair value of contingent consideration, loss on debt extinguishment, foreign exchange loss, and the income tax effect on non -GAAP items. 1) Reflects litigation -related expenses incurred in connection with our acquisitions and the Nangate litigation settlement accrual 2) Reflects acquisition -related professional fees and retention bonuses related to acquisitions of OPC/PPC , Tech-X, Mixel and other potential acquisitions. 3) Reflects the amortization of intangible assets attributable to our acquisitions and the NXP IP. 4) Reflects executive severance that occurred in connection with management changes. 5) Includes the change in fair value of contingent consideration recorded in connection with our acquisitions. 6) Reflects loss incurred on conversion of the Micron Note to common stock in connection with the consummation of our IPO and th e loss incurred on the extinguishment of the East West Bank Loan. 7) Reflects the income tax effect of Non-GAAP adjustments. Three Months Ended Sep. 30, 2025 Sep. 30, 2024 Net Loss Per Share ($0.18) ($0.23) Add: Acquisition-related litigation settlement and legal costs (1) 0.00 0.06 Acquisition-related professional fees and retention bonus (2) 0.05 — Amortization of acquired intangible assets (3) 0.03 0.01 Executive severance(4) 0.05 — Stock-based compensation expense 0.10 0.09 Change in fair value of contingent consideration (5) 0.00 0.00 Loss on debt extinguishment (6) — — Foreign exchange loss (0.01) 0.01 Income tax effect of non-GAAP adjustment (7) (0.12) (0.01) Non-GAAP Diluted Net Loss Per Share ($0.07) ($0.06)