Silicom's operating margin remains deeply negative at -16.6% in 2025Q4, as revenue growth of 16.7% fails to cover the fixed R&D and SG&A expenses.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 |
|---|
| Sales/Revenue | 61.93M | 58.11M | 124.13M | 150.58M | 128.46M | 107.4M | 105.24M | 133.75M | 125.69M | 100.35M | 82.74M | 75.62M | 73.3M | 48.73M | 39.63M | 30.4M | 20.53M | 25.55M | 26.78M | 16.12M | 10.88M | 4.56M | 3.73M | 2.73M | 7.77M | 5.67M | 5.93M | 9M | 5.5M | 2.7M |
| Revenue Growth % | 6.56% | -53.18% | -17.57% | 17.22% | 19.61% | 2.05% | -21.32% | 6.42% | 25.26% | 21.28% | 9.41% | 3.17% | 50.42% | 22.95% | 30.38% | 48.1% | -19.68% | -4.59% | 66.17% | 48.2% | 138.56% | 22.39% | 36.65% | -64.91% | 36.97% | -4.4% | -34.08% | 63.64% | 103.7% | -10% |
| Cost of Goods Sold | 43M | 41.52M | 95.44M | 98.63M | 84.07M | 73.63M | 69.15M | 91.7M | 79.76M | 61.8M | 48.66M | 44.84M | 43.87M | 28.85M | 22.43M | 17.49M | 12.46M | 15.4M | 16.09M | 9.83M | 6.51M | 3M | 2.16M | 2.09M | 4.6M | 3.01M | 3.2M | 5.2M | 2.6M | 1.1M |
| COGS % of Revenue | 69.44% | 71.44% | 76.89% | 65.5% | 65.45% | 68.56% | 65.7% | 68.56% | 63.46% | 61.58% | 58.81% | 59.29% | 59.84% | 59.2% | 56.59% | 57.53% | 60.71% | 60.28% | 60.09% | 60.97% | 59.83% | 65.78% | 57.99% | 76.71% | 59.24% | 53.14% | 53.92% | 57.78% | 47.27% | 40.74% |
| Gross Profit | 18.93M | 16.6M | 28.69M | 51.96M | 44.39M | 33.77M | 36.09M | 42.06M | 45.93M | 38.55M | 34.08M | 30.79M | 29.43M | 19.88M | 17.2M | 12.91M | 8.06M | 10.15M | 10.69M | 6.29M | 4.37M | 1.56M | 1.56M | 635K | 3.17M | 2.66M | 2.73M | 3.8M | 2.9M | 1.6M |
| Gross Margin % | 30.56% | 28.56% | 23.11% | 34.5% | 34.55% | 31.44% | 34.3% | 31.44% | 36.54% | 38.42% | 41.19% | 40.71% | 40.16% | 40.8% | 43.41% | 42.47% | 39.29% | 39.72% | 39.91% | 39.03% | 40.17% | 34.22% | 42.01% | 23.29% | 40.76% | 46.86% | 46.08% | 42.22% | 52.73% | 59.26% |
| Gross Profit Growth % | 14.03% | -42.15% | -44.78% | 17.05% | 31.46% | -6.45% | -14.18% | -8.43% | 19.14% | 13.12% | 10.69% | 4.6% | 48.05% | 15.56% | 33.26% | 60.06% | -20.53% | -5.06% | 69.93% | 43.99% | 180.06% | -0.32% | 146.46% | -79.95% | 19.15% | -2.78% | -28.05% | 31.03% | 81.25% | -15.79% |
| Operating Expenses | 31.19M | 29.88M | 57.36M | 32.03M | 31.33M | 27.52M | 25.88M | 25.41M | 25.14M | 23.05M | 18.96M | 13.74M | 11.86M | 9.85M | 8.73M | 7.01M | 5.85M | 6.57M | 4.93M | 3.9M | 3.06M | 2.78M | 3.1M | 3.27M | 2.63M | 2.36M | 2.54M | 2.8M | 2.5M | 2.4M |
| OpEx % of Revenue | 50.36% | 51.41% | 46.21% | 21.27% | 24.39% | 25.62% | 24.59% | 18.99% | 20% | 22.98% | 22.92% | 18.17% | 16.17% | 20.22% | 22.03% | 23.06% | 28.5% | 25.7% | 18.42% | 24.23% | 28.14% | 61.04% | 83.25% | 120.03% | 33.9% | 41.61% | 42.73% | 31.11% | 45.45% | 88.89% |
| Selling, General & Admin | 11.13M | 10.37M | 11.16M | 11.47M | 11.24M | 10.27M | 10.81M | 10.59M | 11.23M | 10.39M | 9.26M | 7.26M | 6.39M | 5.45M | 4.57M | 3.73M | 3.13M | 3.52M | 2.73M | 2.08M | 1.6M | 1.33M | 1.6M | 1.73M | 1.65M | 1.53M | 1.59M | 1.9M | 2.3M | 2.2M |
| SG&A % of Revenue | 17.98% | 17.84% | 8.99% | 7.62% | 8.75% | 9.57% | 10.27% | 7.91% | 8.93% | 10.36% | 11.19% | 9.6% | 8.72% | 11.18% | 11.52% | 12.27% | 15.27% | 13.77% | 10.18% | 12.94% | 14.69% | 29.22% | 43.06% | 63.61% | 21.19% | 26.94% | 26.88% | 21.11% | 41.82% | 81.48% |
| Research & Development | 20.05M | 19.51M | 20.64M | 20.56M | 20.09M | 17.24M | 15.07M | 14.82M | 13.91M | 12.66M | 9.7M | 6.48M | 5.46M | 4.4M | 4.17M | 3.28M | 2.72M | 3.05M | 2.21M | 1.82M | 1.46M | 1.45M | 1.5M | 1.54M | 1.01M | 661K | 787K | 800K | 0 | 0 |
| R&D % of Revenue | 32.38% | 33.57% | 16.63% | 13.66% | 15.64% | 16.06% | 14.32% | 11.08% | 11.07% | 12.62% | 11.73% | 8.57% | 7.46% | 9.03% | 10.51% | 10.79% | 13.23% | 11.93% | 8.24% | 11.29% | 13.45% | 31.83% | 40.19% | 56.42% | 12.97% | 11.65% | 13.26% | 8.89% | - | - |
| Other Operating Expenses | 0 | 0 | 25.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -20K | 171K | 153K | 100K | 200K | 200K |
| Operating Income | -12.26M | -13.28M | -28.67M | 19.93M | 13.06M | 6.25M | 10.21M | 16.65M | 25.43M | 15.83M | 18.2M | 17.05M | 17.58M | 10.03M | 8.47M | 5.9M | 2.21M | 3.58M | 5.76M | 2.39M | 1.31M | -1.22M | -1.54M | -2.64M | 533K | 298K | 199K | 1M | 400K | -800K |
| Operating Margin % | -19.8% | -22.85% | -23.1% | 13.23% | 10.16% | 5.82% | 9.7% | 12.45% | 20.23% | 15.78% | 22% | 22.54% | 23.98% | 20.58% | 21.37% | 19.41% | 10.79% | 14.01% | 21.49% | 14.8% | 12.03% | -26.83% | -41.23% | -96.74% | 6.86% | 5.25% | 3.35% | 11.11% | 7.27% | -29.63% |
| Operating Income Growth % | 7.66% | 53.69% | -243.9% | 52.61% | 108.98% | -38.82% | -38.66% | -34.51% | 60.62% | -13.05% | 6.8% | -3.03% | 75.27% | 18.39% | 43.6% | 166.32% | -38.15% | -37.79% | 141.24% | 82.42% | 206.95% | 20.38% | 41.75% | -594.75% | 78.86% | 49.75% | -80.1% | 150% | 150% | -60% |
| EBITDA | -10.67M | -11.07M | -26.18M | 22.34M | 15.49M | 8.63M | 12.21M | 19.94M | 29.23M | 19.69M | 20.97M | 18.04M | 18.24M | 10.48M | 8.85M | 6.32M | 2.65M | 4.03M | 6.03M | 2.56M | 1.44M | -1.08M | -1.43M | -2.6M | 695K | 469K | 352K | 1.1M | 600K | -600K |
| EBITDA Margin % | -17.24% | -19.05% | -21.09% | 14.84% | 12.06% | 8.04% | 11.6% | 14.91% | 23.25% | 19.62% | 25.35% | 23.86% | 24.88% | 21.51% | 22.33% | 20.77% | 12.92% | 15.77% | 22.52% | 15.91% | 13.23% | -23.71% | -38.28% | -95.45% | 8.95% | 8.27% | 5.93% | 12.22% | 10.91% | -22.22% |
| EBITDA Growth % | 3.57% | 57.71% | -217.17% | 44.19% | 79.49% | -29.3% | -38.78% | -31.76% | 48.46% | -6.13% | 16.24% | -1.07% | 73.97% | 18.45% | 40.14% | 138.12% | -34.21% | -33.18% | 135.2% | 78.25% | 233.12% | 24.19% | 45.2% | -474.39% | 48.19% | 33.24% | -68% | 83.33% | 200% | -50% |
| D&A (Non-Cash Add-back) | 1.59M | 2.21M | 2.5M | 2.42M | 2.44M | 2.38M | 2M | 3.29M | 3.8M | 3.86M | 2.77M | 996K | 659K | 454K | 379K | 416K | 437K | 450K | 277K | 179K | 131K | 142K | 110K | 35K | 162K | 171K | 153K | 100K | 200K | 200K |
| EBIT | -10.61M | -11.31M | -3.11M | 22.46M | 12.95M | 6.25M | 10.21M | 16.65M | 20.78M | 15.5M | 15.12M | 17.09M | 17.58M | 10.92M | 9.41M | 6.93M | 2.21M | 4.87M | 5.76M | 2.39M | 1.31M | -1.22M | -1.54M | -2.64M | 533K | 298K | 199K | 1M | 408K | -800K |
| Net Interest Income | 1.65M | 2.59M | 1.21M | 1.07M | 879K | 1.78M | 2M | 715K | 201K | 271K | 368K | 1.27M | 493K | 656K | 670K | 747K | 909K | 1.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.65M | 2.6M | 1.25M | 1.14M | 927K | 1.95M | 2.15M | 808K | 310K | 393K | 465K | 1.27M | 404K | 752K | 1.29M | 861K | 1M | 1.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 11K | 45K | 74K | 48K | 171K | 148K | 93K | 109K | 122K | 97K | 0 | 643K | 561K | 622K | 114K | 164K | 98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.65M | 1.96M | 1.37M | 2.46M | -152K | 1.03M | 1.65M | 923K | 156K | 35K | 220K | 263K | 404K | 752K | 439K | 617K | 909K | 1.19M | 956K | 167K | 8K | -17K | 27K | 0 | 378K | 264K | 189K | 100K | 200K | 700K |
| Pretax Income | -10.61M | -11.32M | -27.3M | 22.39M | 12.9M | 7.28M | 11.86M | 17.57M | 25.58M | 15.87M | 18.43M | 17.31M | 17.98M | 10.78M | 8.91M | 6.52M | 3.12M | 4.77M | 6.71M | 2.55M | 1.32M | -1.24M | -1.51M | 0 | 911K | 562K | 388K | 1.1M | 600K | -100K |
| Pretax Margin % | -17.13% | -19.47% | -21.99% | 14.87% | 10.05% | 6.78% | 11.27% | 13.14% | 20.35% | 15.81% | 22.27% | 22.89% | 24.53% | 22.12% | 22.48% | 21.43% | 15.22% | 18.66% | 25.06% | 15.84% | 12.1% | -27.29% | -40.51% | - | 11.73% | 9.91% | 6.54% | 12.22% | 10.91% | -3.7% |
| Income Tax | 871K | 2.39M | -889K | 4.08M | 2.36M | 1.56M | 1.62M | 2.94M | 3.87M | 2.73M | 1.91M | 2.7M | 905K | 910K | 667K | 801K | 305K | 124K | 432K | -46K | -14K | 17K | 0 | -152K | 24K | 42K | 42K | 0 | 0 | 0 |
| Effective Tax Rate % | -8.21% | -21.13% | 3.26% | 18.24% | 18.32% | 21.38% | 13.69% | 16.71% | 15.12% | 17.2% | 10.34% | 15.62% | 5.03% | 8.44% | 7.49% | 12.29% | 9.76% | 2.6% | 6.44% | -1.8% | -1.06% | -1.37% | 0% | - | 2.63% | 7.47% | 10.82% | 0% | 0% | 0% |
| Net Income | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M | 5.72M | 10.24M | 14.64M | 21.71M | 13.14M | 16.52M | 14.61M | 17.08M | 9.87M | 8.24M | 5.71M | 2.82M | 4.64M | 6.28M | 2.6M | 1.32M | -1.24M | -1.51M | -2.48M | 887K | 520K | 346K | 1.1M | 600K | -100K |
| Net Margin % | -18.54% | -23.59% | -21.28% | 12.16% | 8.21% | 5.33% | 9.73% | 10.94% | 17.28% | 13.09% | 19.97% | 19.31% | 23.3% | 20.26% | 20.8% | 18.8% | 13.73% | 18.18% | 23.45% | 16.12% | 12.16% | -27.2% | -40.51% | -91.16% | 11.42% | 9.17% | 5.83% | 12.22% | 10.91% | -3.7% |
| Net Income Growth % | 16.26% | 48.1% | -244.29% | 73.66% | 84.12% | -44.07% | -30.07% | -32.59% | 65.29% | -20.48% | 13.11% | -14.48% | 73% | 19.75% | 44.23% | 102.73% | -39.31% | -26.04% | 141.63% | 96.6% | 206.61% | 17.83% | 39.28% | -380.16% | 70.58% | 50.29% | -68.55% | 83.33% | 700% | -120% |
| Net Income (Continuing) | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M | 5.72M | 10.24M | 14.64M | 21.71M | 13.14M | 16.52M | 14.61M | 17.08M | 9.87M | 8.24M | 5.71M | 2.82M | 4.64M | 6.28M | 2.6M | 1.32M | -1.24M | -1.51M | -2.48M | 887K | 520K | 346K | 1.1M | 600K | -100K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.01 | -2.28 | -3.94 | 2.69 | 1.51 | 0.80 | 1.35 | 1.91 | 2.86 | 1.77 | 2.24 | 2.00 | 2.36 | 1.42 | 1.18 | 0.82 | 0.41 | 0.69 | 1.00 | 0.49 | 0.30 | -0.30 | -0.37 | -0.60 | 0.20 | 0.13 | 0.09 | 0.28 | 0.16 | -0.02 |
| EPS Growth % | 11.84% | 42.13% | -246.47% | 78.15% | 88.75% | -40.74% | -29.32% | -33.22% | 61.58% | -20.98% | 12% | -15.25% | 66.2% | 20.34% | 43.9% | 100% | -40.58% | -31% | 104.08% | 63.33% | 200% | 18.92% | 38.33% | -400% | 53.85% | 44.44% | -67.86% | 75% | 900% | -116.67% |
| EPS (Basic) | -2.01 | -2.28 | -3.94 | 2.73 | 1.54 | 0.80 | 1.36 | 1.94 | 2.91 | 1.79 | 2.27 | 2.03 | 2.40 | 1.42 | 1.20 | 0.84 | 0.42 | 0.69 | 1.03 | 0.51 | 0.31 | -0.30 | -0.37 | -0.60 | 0.22 | 0.13 | 0.09 | 0.28 | 0.16 | -0.02 |
| Diluted Shares Outstanding | 5.71M | 6.02M | 6.7M | 6.8M | 6.97M | 7.16M | 7.57M | 7.66M | 7.6M | 7.43M | 7.37M | 7.32M | 7.25M | 6.97M | 7M | 6.94M | 6.84M | 6.78M | 6.31M | 5.34M | 4.36M | 4.2M | 4.11M | 4.11M | 4.39M | 4.01M | 3.99M | 3.93M | 3.75M | 5M |
| Basic Shares Outstanding | 5.71M | 6.02M | 6.7M | 6.7M | 6.83M | 7.12M | 7.52M | 7.55M | 7.46M | 7.34M | 7.27M | 7.18M | 7.1M | 6.93M | 6.9M | 6.82M | 6.72M | 6.68M | 6.12M | 5.14M | 4.26M | 4.19M | 4.11M | 4.11M | 4.1M | 3.99M | 3.98M | 3.93M | 3.75M | 5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 50.43% | 34% | 55.66% | 44.03% | 49.18% | 22.91% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to the most recent quarterly filings, Silicom achieved a 16.7% year-over-year revenue increase to $16.9 million, suggesting a potential stabilization in demand following the severe contraction observed throughout 2024, though top-line growth remains highly sensitive to the lumpy nature of OEM project-based hardware cycles.
The recent uptick in revenue suggests that the company may be emerging from a period of significant destocking or project delays. However, investors should monitor whether this growth is sustainable or merely a reflection of easier year-over-year comparisons following the sharp declines in 2024.
As reported in financial statements, Silicom's gross margin has hovered near 30% in recent quarters, a level that appears insufficient to absorb the company's fixed operating expenses and highlights the inherent vulnerability of its hardware-centric cost structure to semiconductor procurement price fluctuations and limited pricing power.
The inability to consistently expand gross margins above the 30% threshold suggests that Silicom lacks the necessary scale or product differentiation to command premium pricing. This structural constraint forces the company to rely on volume growth, which has proven elusive in the current networking equipment environment.
Based on Silicom's reported figures, the company continues to struggle with negative operating margins, which reached -16.6% in 2025Q4, indicating that current revenue levels are failing to provide the necessary scale to cover the fixed R&D and SG&A investments required for its specialized networking hardware business.
The persistent gap between gross profit and operating expenses suggests that the company's R&D-heavy model is currently unoptimized for its present revenue scale. Without a significant inflection in top-line growth, the company may continue to face challenges in achieving break-even operating performance.
Data from recent income statements indicates that Silicom has sustained negative operating income for eight consecutive quarters, raising concerns among analysts regarding the long-term viability of its current R&D spending levels if revenue growth does not accelerate to offset the ongoing erosion of the company's cash reserves.
While the company's balance sheet remains relatively liquid, the consistent operating losses warrant investigation into whether management can successfully pivot to higher-margin products. Investors should be wary of the risk that the company's R&D investments may not yield the anticipated market share gains in the 5G and Edge segments.
Quick answers to the most common questions about buying SILC stock.
For fiscal year 2025, Silicom Ltd. (SILC) reported total revenue of $61.9M. This represents a 2193.6% increase compared to $2.7M in 1995.
Silicom Ltd. (SILC) reported a net loss of $11.5M for the fiscal year ending 2025.
Silicom Ltd. (SILC) reported an operating income of $-12.3M, resulting in an operating profit margin of -19.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Silicom Ltd. (SILC) generated $18.9M in gross profit for the year, representing a gross profit margin of 30.6%. This demonstrates the company's core pricing power and production efficiency.