Silvaco has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a low of -129.5% in 2025Q2 due to significant operating cash burn.
| Cash from Operations | -43.79M | -33.91M | -19.77M | 1.18M | -2.1M | -2.64M | 5.78M |
| Operating CF Margin % | - | -53.76% | -33.13% | 2.18% | -4.51% | -6.28% | 14.34% |
| Operating CF Growth % | -1341.27% | -71.47% | -1775.76% | 156.27% | 20.45% | -145.63% | - |
| Net Income | -27.79M | -41.21M | -39.4M | -316K | -3.93M | -1.84M | 2.55M |
| Depreciation & Amortization | 3.21M | 3.47M | 1.28M | 601K | 551K | 1.16M | 820K |
| Stock-Based Compensation | 8.42M | 10.81M | 26.91M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 6.29M | 12.63M | 10.66M | 591K | 773K | -1.79M | 25K |
| Working Capital Changes | -33.92M | -19.61M | -19.23M | 304K | 507K | -165K | 2.38M |
| Change in Receivables | -3.73M | -379K | -16.26M | -3.83M | -3.79M | 931K | -2.07M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 471K | -781K | 1.33M | 156K | -168K | -204K | 1.51M |
| Cash from Investing | 23.32M | 33.72M | -66.53M | -339K | -89K | 234K | -1.6M |
| Capital Expenditures | -522K | -618K | -505K | -339K | -89K | -99K | -490K |
| CapEx % of Revenue | 0.78% | 0.98% | 0.85% | 0.62% | 0.19% | 0.24% | 1.22% |
| Acquisitions | -9.88M | -32.88M | 0 | 0 | 0 | -1M | -1.18M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -11.47M | 32K | 0 | 0 | 0 | 1.33M | 68K |
| Cash from Financing | 1.98M | -2.21M | 101.3M | -1.65M | 624K | 60K | 2.33M |
| Debt Issued (Net) | -1.26M | -1.26M | 2.85M | 0 | 1.5M | 500K | 2.33M |
| Equity Issued (Net) | 4.89M | 899K | 106.33M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.66M | -1.85M | -7.89M | -1.65M | -876K | -440K | 0 |
| Net Change in Cash | -18.56M | -2.35M | 15.19M | -1.06M | -1.23M | -3.02M | 6.88M |
| Free Cash Flow | -44.31M | -34.52M | -20.28M | 841K | -2.19M | -2.73M | 5.29M |
| FCF Margin % | -66.41% | -54.74% | -33.98% | 1.55% | -4.7% | -6.52% | 13.13% |
| FCF Growth % | 48.91% | -70.25% | -2511.3% | 138.47% | 20.07% | -151.73% | - |
| FCF per Share | -1.41 | -1.16 | -0.79 | 0.03 | -0.08 | -0.06 | 0.12 |
| FCF Conversion (FCF/Net Income) | 1.59x | 0.82x | 0.50x | -3.73x | 0.53x | 1.43x | 2.27x |
| Interest Paid | 0 | 0 | 0 | 194K | 71K | 9K | 21K |
| Taxes Paid | 0 | 0 | 625K | 1.33M | 655K | 113K | 61K |
Persistent Operating Cash Burn
As reported in recent financial filings, Silvaco's operating cash flow consistently trails net income, with the OCF/NI ratio frequently exceeding 1.0, which suggests that reported losses are being exacerbated by significant cash outflows rather than mitigated by non-cash accounting adjustments or accrual-based revenue recognition timing.
The recurring divergence between net income and operating cash flow indicates that the company's accounting losses are not merely paper-based but reflect genuine cash-consuming operational activities. Investors should monitor whether this trend persists, as it suggests that the business model requires substantial external liquidity to fund its ongoing operating deficit.
Based on the provided quarterly data, Silvaco has failed to generate positive free cash flow in any of the last ten periods, with FCF margins reaching a low of -129.5% in 2025Q2, highlighting a structural inability to self-fund operations through core business activities at current scale.
The consistent negative FCF trajectory implies that the company is currently in a capital-intensive phase where growth and R&D requirements far outpace the cash generated from software licenses. This pattern warrants investigation into the sustainability of the current cost structure, as the lack of positive cash generation limits strategic flexibility.
According to the cash flow statements, working capital changes have been a significant drag on liquidity, with a notable $14.8 million outflow in 2025Q2, indicating that the company is struggling to manage its collection cycles or inventory levels effectively relative to its revenue recognition timing.
The erratic nature of working capital movements suggests potential inefficiencies in accounts receivable management or a mismatch between billing and cash collection. This volatility adds an unnecessary layer of risk to the company's already strained cash position, making short-term liquidity planning appear increasingly difficult.
Data from recent SEC filings reveals that stock-based compensation has reached as high as $3.3 million in a single quarter, which effectively masks the true cash cost of talent retention and dilutes existing shareholders while failing to offset the company's underlying operating cash flow deficits.
While SBC is a non-cash expense, its prevalence suggests that the company relies heavily on equity to attract the specialized engineering talent necessary for its TCAD moat. This practice warrants further investigation, as it may obscure the true economic cost of operations and create long-term dilution risks for investors.
Quick answers to the most common questions about buying SVCO stock.
Silvaco Group, Inc. Common Stock (SVCO) generated $-33.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Silvaco Group, Inc. Common Stock (SVCO) reported negative free cash flow of $34.5M in 2025, indicating capital requirements exceeded cash from operations.
Silvaco Group, Inc. Common Stock (SVCO) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.