olivlawolivlaw

olivLaw · US equity research

Silicom Ltd. SILC

Computer Communications Equipment · SIC 3576 · Vertical: Computer Communications Equipment (SIC 3576)

31.76USD−0.38% · 1 dayClose 04 Nov 2026

Silicom Ltd. designs and manufactures high-performance networking and data infrastructure solutions for Cloud, Data Center and Edge environments. The company aims to benefit from three structural shifts: AI inference, post-quantum cryptography and white-label switching. Sales for fiscal 2025 reached 61.9 million USD, up 6.6%.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Silicom Ltd. (SILC) stock was 31.76 USD (−0.38% on the day), with market capitalisation 181.2 m USD, dividend yield 3.15%, beta 1.35, 52-week range 13.50–61.65 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
181.2 m USD
shares as of 31 Dec 2025
P/E (TTM)
unavailable
Diluted EPS TTM -2.01 · TTM to 31 Dec 2025
E/P (TTM)
-6.33%
TTM to 31 Dec 2025
Dividend yield
3.15%
DPS 12m 1.00
Beta (2y)
1.35
Volatility (1y) 91%
52-week range
13.5061.65

Price history

Loading chart…

Technical reading

RSI (14)
33.1
weak (30–45)
Bollinger (20, 2)
25.81 – 58.77
in the lower half of the band · %B 0.18 · band width 77.9%
SMA 50 / 200
45.47 / 36.24
mixed trend
MACD (12, 26, 9)
-4.44 / -3.13
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−48.1%−1.1%−47.0 pp—
3 months−28.0%−0.5%−27.6 pp—
6 months−28.1%+4.4%−32.5 pp—
Year to date+116.1%+12.3%+103.7 pp—
1 year+98.0%+13.5%+84.5 pp−9.0%
3 years+106.9%+76.4%+30.5 pp+48.3%
5 years−30.6%+63.7%−94.3 pp—
Max drawdown (1y)
−49.7%
06 Oct 2026 → 02 Nov 2026
Max drawdown (5y)
−77.3%
31 Dec 2021 → 05 Aug 2024
Compound annual growth (5y)
−7.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue133.8 m105.2 m107.4 m128.5 m150.6 m124.1 m58.1 m61.9 m
Revenue YoY+6.4%−21.3%+2.1%+19.6%+17.2%−17.6%−53.2%+6.6%
Net income14.6 m10.2 m5.7 m10.5 m18.3 m-26.4 m-13.7 m-11.5 m
Net income YoY−32.6%−30.1%−44.1%+84.1%+73.7%−244.3%unavailableunavailable
Diluted EPS1.911.350.801.512.69-3.94-2.28-2.01
Diluted EPS YoY−33.1%−29.3%−40.8%+89.1%+78.1%−246.3%unavailableunavailable
net %10.9%9.7%5.3%8.2%12.2%-21.3%-23.6%-18.5%
Free cash flow44.3 m25.3 m3.3 m-1.5 m-6.2 m30.8 m17.4 m-3.3 m

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
35.2 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
117.5 m USD
Total assets
152.2 m USD
Debt / equity
unavailable
Current ratio
4.15x
ROE
-9.4%
ROA
-7.6%
FCF margin
-5.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
124.1 m
2024
58.1 m
2025
61.9 m

SEC (XBRL)· 28 Apr 2026verified

Cost of revenue
2023
95.4 m
2024
41.5 m
2025
43.0 m

SEC (XBRL)· 28 Apr 2026verified

Gross profit
2023
28.7 m
2024
16.6 m
2025
18.9 m

SEC (XBRL)· 28 Apr 2026verified

Research & development
2023
20.6 m
2024
19.5 m
2025
20.1 m

SEC (XBRL)· 28 Apr 2026verified

Operating income
2023
-28.7 m
2024
-13.3 m
2025
-12.3 m

SEC (XBRL)· 28 Apr 2026verified

Depreciation & amortisation
2023
2.5 m
2024
2.2 m
2025
1.6 m

SEC (XBRL)· 28 Apr 2026verified

EBITDA
2023
-26.2 m ≈
2024
-11.1 m ≈
2025
-10.7 m ≈

SEC (XBRL)· 28 Apr 2026derived

Pre-tax income
2023
-27.3 m
2024
-11.3 m
2025
-10.6 m

SEC (XBRL)· 28 Apr 2026verified

Income tax
2023
-889.0 k
2024
2.4 m
2025
871.0 k

SEC (XBRL)· 28 Apr 2026verified

Net income
2023
-26.4 m
2024
-13.7 m
2025
-11.5 m

SEC (XBRL)· 28 Apr 2026verified

Diluted EPS
2023
-3.94
2024
-2.28
2025
-2.01

SEC (XBRL)· 28 Apr 2026verified

Weighted average diluted shares
2023
6.7 m
2024
6.0 m
2025
5.7 m

SEC (XBRL)· 28 Apr 2026verified

Balance sheet · USD

Cash
2023
47.0 m
2024
51.3 m
2025
35.2 m

SEC (XBRL)· 28 Apr 2026verified

Receivables
2023
25.0 m
2024
11.7 m
2025
9.2 m

SEC (XBRL)· 28 Apr 2026verified

Inventories
2023
51.5 m
2024
41.1 m
2025
52.7 m

SEC (XBRL)· 28 Apr 2026verified

Current assets
2023
135.1 m
2024
129.8 m
2025
113.1 m

SEC (XBRL)· 28 Apr 2026verified

Property, plant & equipment, net
2023
3.6 m
2024
3.1 m
2025
3.1 m

SEC (XBRL)· 28 Apr 2026verified

Goodwill
2023
0
2024
—
2025
—

SEC (XBRL)· 30 Apr 2024verified

Intangibles (excl. goodwill)
2023
2.3 m
2024
2.3 m
2025
2.6 m

SEC (XBRL)· 28 Apr 2026verified

Total assets
2023
167.7 m
2024
150.4 m
2025
152.2 m

SEC (XBRL)· 28 Apr 2026verified

Current liabilities
2023
12.9 m
2024
15.1 m
2025
27.3 m

SEC (XBRL)· 28 Apr 2026verified

Total liabilities
2023
19.5 m
2024
22.6 m
2025
34.7 m

SEC (XBRL)· 28 Apr 2026verified

Equity
2023
148.3 m †
2024
127.8 m †
2025
117.5 m †

SEC (XBRL)· 28 Apr 2026verified

Shares outstanding at year end
2023
6.4 m
2024
5.8 m
2025
5.7 m

SEC (XBRL)· 28 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
31.9 m
2024
18.3 m
2025
-2.2 m

SEC (XBRL)· 28 Apr 2026verified

Capex
2023
1.1 m
2024
932.0 k
2025
1.2 m

SEC (XBRL)· 28 Apr 2026verified

Free cash flow
2023
30.8 m ≈
2024
17.4 m ≈
2025
-3.3 m ≈

SEC (XBRL)· 28 Apr 2026derived

Investing cash flow
2023
-7.5 m
2024
-4.3 m
2025
-12.4 m

SEC (XBRL)· 28 Apr 2026verified

Financing cash flow
2023
-8.0 m
2024
-9.9 m
2025
-1.7 m

SEC (XBRL)· 28 Apr 2026verified

Share repurchases
2023
9.3 m
2024
9.9 m
2025
1.7 m

SEC (XBRL)· 28 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
6.6%
computed by olivLawFY 2025
Revenue CAGR 3Y
-25.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
-10.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-119.3%
computed by olivLawFY 2025

Profitability

Gross margin
30.6%
computed by olivLawFY 2025
EBITDA margin
-17.2%
computed by olivLawFY 2025
EBIT margin
-19.8%
computed by olivLawFY 2025
Net margin
-18.5%
computed by olivLawFY 2025
FCF margin
-5.4%
computed by olivLawFY 2025

Returns

ROE
-9.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
-7.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
unavailable
input data missing
ROCE
-9.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
4.2x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
1.3x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
-2.2 m USD
computed by olivLawFY 2025
Capital expenditure
1.2 m USD
computed by olivLawFY 2025
Free cash flow
-3.3 m USD
computed by olivLawFY 2025
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
62 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days payables outstanding
unavailable
input data missing

Market and valuation

Market capitalisation
181.2 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-6.3%
computed by olivLawFY 2025
P/B
1.5x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
2.9x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-1.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
3.1%
computed by olivLawFY 2025
Shareholder yield (distributions)
0.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

31.76 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 181.2 m USD

Key indicators

Market capitalisation
181.2 m USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
unavailable
insufficient data
P/B
1.5x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
-9.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
-18.5%
computed by olivLawFY 2025
Revenue growth (YoY)
6.6%
computed by olivLawFY 2025
Dividend yield
3.1%
computed by olivLawFY 2025

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: SEC (XBRL)published 28 Apr 2026
verified 511

Score by group

77% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)

no valuation method could be computed

Multiple comparisons use the SIC vertical: Computer Communications Equipment (SIC 3576)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality30.6%0 (on a fixed band)14%
EBIT margin · Quality-19.8%27 (vs peers)11%
FCF margin · Quality-5.4%0 (on a fixed band)11%
Revenue CAGR 3Y · Growth-25.6%0 (on a fixed band)22%
Revenue growth (YoY) · Growth6.6%33 (vs peers)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet4.2x100 (on a fixed band)8%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuation-1.8%0 (on a fixed band)17%
Shareholder yield (distributions) · Returns0.9%49 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/2 factors with a value
  • Growth11/100 · 2/2 factors with a value
  • Quality8/100 · 3/3 factors with a value
  • Returns49/100 · 1/1 factors with a value
  • Valuation· partial0/100 · 1/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SILICOM LTD. (SILC). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 61.9 m USD in 2025; YoY growth 6.6%; net margin -18.5%; ROE -9.4%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 4.2x

What contradicts it

  • Gross margin: 30.6%
  • EBIT margin: -19.8%
  • FCF margin: -5.4%
  • Revenue CAGR 3Y: -25.6%
  • FCF yield: -1.8%

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.

Versus the vertical median

Computer Communications Equipment (SIC 3576) · same industry (4-digit SIC) · compared with 15 companies

Multiples and returns vs the median

P/E
—
vertical median 44.0x
EV/EBITDA
—
vertical median 27.0x
P/S
2.9x
vertical median 2.3x
above median (+28.4%)
P/B
1.5x
vertical median 3.7x
below median (−58.5%)
ROE
-9.4%
vertical median 7.5%
below median (−225.5%)
Net margin
-18.5%
vertical median 3.6%
below median (−610.3%)
EBIT margin
-19.8%
vertical median 3.5%
below median (−660.3%)
Revenue YoY
6.6%
vertical median 11.0%
below median (−40.5%)
Net debt/EBITDA
—
vertical median 1.1x
Dividend yield
3.1%
vertical median 1.1%
above median (+179.6%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CSCOCisco Systems, Inc.408.5 bn31.127.3%21.0%+11.8%+35% / +114%
ANETArista Networks, Inc.225.5 bn48.033.5%40.0%+28.6%+37% / +225%
FFIVF5, Inc.18.7 bn26.319.8%22.0%+9.7%+38% / +93%
EXTRExtreme Networks, Inc.3.0 bn58.067.1%4.0%+12.6%+31% / +42%
DGIIDigi International Inc.2.8 bn57.57.5%9.6%+1.5%+74% / +208%
ATENA10 Networks, Inc.1.7 bn40.019.4%13.9%+11.0%+38% / +91%
NTGRNETGEAR, Inc.586.0 m—-7.0%-4.9%+3.8%−16% / +64%
ALLTAllot Ltd.421.3 m108.34.5%3.6%+10.6%−10% / +541%
LTRXLantronix, Inc.263.9 m—-4.3%-3.5%−1.6%+10% / 0%
SILCSilicom Ltd.181.2 m—-9.4%-18.5%+6.6%+98% / +107%
BOSCBos Better Online Solutions Ltd29.8 m7.414.4%7.1%+26.6%−9% / +48%
FOXXFoxx Development Holdings Inc.13.3 m——-100.2%−20.2%−58% / −83%
INTZIntrusion Inc.11.9 m—-140.9%-194.0%+21.6%−66% / −93%
WLDSWearable Devices Ltd.4.2 m—-72.3%-1,253.0%+23.9%−92% / −100%
HUBCHUB Cyber Security Ltd.3.4 m——-134.5%−30.7%−100% / −100%
CIITTianci International, Inc.2.0 m—-55.0%-16.7%+53.4%−93% / −96%

1- and 3-year price returns: for SILC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 28 Apr 2026; since then the company filed 6-K (04 Nov 2026), 6-K (29 Oct 2026), 6-K (01 Oct 2026), 6-K (28 Sept 2026), 6-K (02 Sept 2026), 6-K (29 Jul 2026).

    In brief

    Silicom Ltd. designs and manufactures high-performance networking and data infrastructure solutions for Cloud, Data Center and Edge environments. The company aims to benefit from three structural shifts: AI inference, post-quantum cryptography and white-label switching. Sales for fiscal 2025 reached 61.9 million USD, up 6.6%.

    SWOT

    Strengths

    • The company has a broad technical portfolio, a base of Tier-1 customers and a large number of active Design Wins. Its expertise in hardware accelerators and encryption underpins its new growth directions 1.
    • Most revenues are denominated in US dollars, which reduces direct exposure to local currency on the sales side 1.
    • Strategic relationships with OEMs and with component makers such as Intel and Altera support sales and technology integration 1.

    Weaknesses

    • The company has reported net losses in recent years and research and development spending that is high relative to sales 1.
    • Revenue depends on a relatively small number of large customers, and delays or losses of Design Wins can significantly affect quarterly results 1.
    • Some key components are available from a single source, exposing production to supply chain disruptions 1.

    Opportunities

    • AI inference, post-quantum cryptography and white-label switching are three structural directions the company sees as growth engines 1.
    • Direct sales to service providers and cloud players could open larger contracts for large-scale deployments 1.
    • Growing demand for Edge platforms in SD-WAN and SASE could broaden the customer base in security and network services 1.

    Threats

    • Integration of acceleration functions directly into standard server motherboards could reduce demand for separate cards 1.
    • US trade tariffs could raise the cost of importing products and reduce margins 1.
    • Geopolitical risks in the Middle East and tensions around China and Taiwan could disrupt supply chains and shipments 1.

    Risks

    • Delayed Design Winshigh

      A Design Win does not guarantee revenue, since the customer may hold back its product launch or abandon the component supplied by Silicom 1.

    • Dependence on large customershigh

      The loss of a key customer or a reduction in orders could significantly affect revenue and financial results 1.

    • Supply chainmedium

      Key components come from a single or a few suppliers, and long lead times can lead to surpluses or shortages of stock 1.

    • Currency risk and costs in Israelmedium

      Part of research and development payroll is paid in new Israeli shekels and Danish krone, and exchange rate movements can influence costs and financial results 1.

    • Geopolitical tensions and tariffsmedium

      Regional conflicts and trade tariffs could raise costs and disrupt import and export activity 1.

    Investment thesis

    What would need to be true (bull case)

    • If AI inference and post-quantum cryptography begin generating repeat orders, the company could diversify sales and reduce its reliance on short server-industry cycles.
    • A broad portfolio of Design Wins and a recovery in gross margin could support a gradual improvement in results, provided research spending stays under control.
    • Relationships with OEMs and large technology suppliers could ease access to new customers and emerging technologies.

    What would break the thesis

    • The company has reported net losses for several consecutive years, and if this pattern persists it could need new financing or cost reductions.
    • Dependence on a few large customers and delays in converting Design Wins could produce sharp swings in revenue.
    • Integration of acceleration functions into standard server hardware could shrink the market for the company's separate products.

    What to watch

    • Conversion of new Design Wins into repeat orders and the pace of sales growthQ1 2027
    • Gross margin and research and development spending relative to sales2027
    • Commercial launch pace of products for AI inference and post-quantum cryptography2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 28 Apr 2026; since then the company filed 6-K (04 Nov 2026), 6-K (29 Oct 2026), 6-K (01 Oct 2026), 6-K (28 Sept 2026), 6-K (02 Sept 2026), 6-K (29 Jul 2026).

    The business

    Silicom Ltd. was incorporated in Israel in 1987 and is listed on NASDAQ under the ticker SILC. The company describes a range that includes high-speed server adapters, FPGA-based smart cards, Edge platforms and hybrid solutions, used by Tier-1 customers such as cloud players, service providers and OEMs 1. Its main model is the Design Win model, in which a product is evaluated, qualified and then repeatedly purchased, usually as long as the customer sells the system in which it is embedded 1.

    In fiscal 2025, gross margin was 30.6% and the company reported a net loss of 11.5 million USD 1. Research and development expenses remained high, at roughly a third of sales, reflecting the dependence on innovation. The company stated that most revenues are in US dollars, which limits the effect of Israeli inflation on revenue but not on costs 1.

    During 2025 and early 2026 the company announced several new Design Wins, including a Fortune 500 cloud service provider, a SASE solutions provider and a European advanced encryption provider 1. The longer-term strategy includes direct sales to major service providers and cloud players, particularly for white-label switching and large-scale AI inference and PQC deployments 1.

    Segments

    Server Network Interface Cards (server adapters)

    Server adapters facilitate high-speed communication between servers and switches, and some include bypass functionality for traffic continuity. They are sold mainly through partnerships with OEMs that integrate them into their systems 1.

    Smart cards and FPGA solutions

    Smart cards offload tasks such as encryption and compression from the server CPU. FPGA-based solutions, built with Altera and AMD components, target packet capturing, AI inference and high-frequency trading 1.

    Smart Edge platforms

    Smart Platforms act as CPE and Edge devices for SD-WAN, SASE, NFV and telco-dedicated routers, ranging from entry-level devices to rack-mounted units for large branches 1.

    Market context

    The company sells mainly to major cloud players, service providers, telcos and OEMs, with a smaller share through independent distributors 1. North America's share of sales fell from 85% in 2023 to 74% in 2025, while Europe rose from 13% to 18% 1.

    Demand has been cyclical: in 2024 sales fell sharply due to excess inventories built by customers, and the 2025 recovery was moderate and supported by the initial ramp-up of new Design Wins 1. Future growth depends largely on how quickly these wins convert into repeat orders 1.

    Trends

    • AI inferencetailwind

      The shift from training to inference creates demand for specialized solutions that reduce latency between chipsets, cards and servers. Silicom is designing inference-specific NICs, which could open new opportunities if these deployments expand 1.

    • Post-quantum cryptographytailwind

      The company views the transition to quantum-resistant standards as a mandatory upgrade, which could increase demand for its PQC hardware accelerators. The timing of adoption remains uncertain 1.

    • Network disaggregation and white-label switchingmixed

      Operators are moving from proprietary hardware to flexible solutions, which could bring new customers but may come with lower margins and higher working capital needs 1.

    • Concentration on a few large customersheadwind

      Dependence on a few customers and on Design Wins that may be delayed or abandoned could produce significant swings in revenue from quarter to quarter 1.

    Competitive position

    Silicom operates in a market where OEM, cloud and telco customers can choose among several suppliers of adapters, accelerators and CPE platforms. The company argues its advantages come from its encryption hardware experience, Design Wins and relationships with Intel and Altera 1.

    Competitive risk is higher where rivals offer more advanced features or lower prices, and where integrating these functions directly into server motherboards could reduce the need for Silicom products 1.

    • IntelINTC

      Key component supplier and sales partner for smart cards and FPGA solutions; the company cites its dependence on Intel for some components 1.

    • BroadcomAVGO

      Key component supplier for many products; dependence on a few suppliers can affect availability 1.

    • Altera

      Supplier of FPGA components used in the company's specialized solutions; a technology partner in the same ecosystem 1.

    • AMDAMD

      Supplier of FPGA components for packet capturing, AI inference and high-frequency trading solutions 1.

    News & filings

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

    Silicom Ltd. (SILC): stock, results, valuation and forecast · olivLaw