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Investing.com - Rosenblatt has lowered its price target on Silvaco Group Inc (NASDAQ:SVCO) to $12.00 from $14.00 while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, the stock has declined over 68% in the past year, though analysis suggests the company is currently undervalued based on its Fair Value assessment.
Silvaco reported Q2 revenue of $12 million, falling short of Rosenblatt’s $15.4 million forecast and landing at the bottom of the company’s guidance range of $12-16 million. Gross bookings for the quarter came in at $12.9 million, below expectations, though the trailing twelve-month Annual Contract Value base grew 26% year-over-year to $55.9 million, supported by acquisitions. While the company maintains impressive gross profit margins of 77.4%, InvestingPro data shows it remains unprofitable with a net loss of $60 million over the last twelve months.
The company completed its third acquisition this week, purchasing Mixel for $22 million in cash and stock. This follows earlier acquisitions of Tech-X in Q2 and Cadence’s PPC unit in Q1, which collectively expanded Silvaco’s Serviceable Addressable Market by approximately $710 million. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 2.14, suggesting adequate resources for its acquisition strategy.
Despite the Q2 performance, Silvaco maintained its fiscal year 2025 revenue guidance of $64-70 million and gross bookings forecast of $67-74 million, which now includes the Mixel acquisition. The company expects the year to be "fairly back-end loaded," according to Rosenblatt’s research note. Get deeper insights into Silvaco’s financial health and growth prospects with InvestingPro, which offers exclusive access to 10+ additional ProTips and comprehensive analysis reports.
Rosenblatt indicated it remains bullish on Silvaco with a Buy rating, but expects the stock "to remain weak near term until its bookings momentum recovers." This aligns with InvestingPro data showing six analysts have recently revised their earnings expectations downward for the upcoming period.
In other recent news, Silvaco Group Inc. reported its second-quarter 2025 earnings, which did not meet analysts’ expectations. The company posted an earnings per share (EPS) of -$0.16, significantly below the projected $0.12, reflecting a negative surprise of -233.33%. Revenue for the quarter was $12.05 million, marking a 19% decrease compared to the same period last year, which further disappointed investors. These financial results have raised concerns among analysts and investors alike. No mergers or acquisitions were reported during this period. Additionally, there were no recent analyst upgrades or downgrades for Silvaco Group Inc. Other company news remains limited as the focus shifts to understanding the implications of the earnings miss.
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