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On July 31, 2025 Silicom reported Q2 2025 results showing $15.0 million revenue and a GAAP net loss of $3.3 million, with management citing strong Design Win momentum. On August 1, 2025 the earnings-call recap emphasized multiple major design wins, a strong cash position and expectations for material growth beginning in 2026. On September 30, 2025 the company announced a Q3 2025 results release and conference call scheduled for October 30, 2025.
Technical Analysis
The directional indicators show a bullish tilt: DI+ registered a dip-and-reversal, indicating DI+ increasing, while DI- showed a peak-and-reversal, indicating DI- declining; ADX at 25.58 signals a strong trend environment that supports near-term directional conviction. These directional signals align with the valuation context of strong liquidity and under-valuation.
MACD currently displays a dip-and-reversal (MACD increasing) but the MACD value sits at 0.00 beneath the signal line at 0.05, representing building bullish momentum that has not yet produced a bullish MACD crossover; continued momentum improvement would strengthen a near-term upside case tied to the company’s balance-sheet strength.
MRO reads 17.45 and trends decreasing, which indicates price sits above the model target and carries potential downward pressure; the decreasing MRO weakens that pressure over time and moderates the pace of any pullback against the broader bullish directional tilt.
RSI at 52.73 with a dip-and-reversal shows renewed buying interest without overbought risk, supporting a modest bullish bias for price continuation in the coming weeks when combined with price action above short- and medium-term averages.
Price sits at $17.40 above the 20-day average ($17.35), the 50-day average ($17.13) and the 200-day average ($15.90); the 12-day EMA shows a dip-and-reversal. Ichimoku conversion and baseline (both ~$17.79) sit above the cloud averages (~$17.4 / $17.14), indicating short-term price strength relative to the recent cloud. Bollinger bands place the close below the 1x upper band ($17.76), leaving room before upper-band resistance.
Volume trends remain muted: today’s volume ~12,963 slightly above the 10-day average (~11,009) but below 50/200-day averages; technical momentum requires participation to confirm sustainable moves, especially given the MRO over-target signal.
Fundamental Analysis
Liquidity and solvency present clear strengths. Cash stands at $52,301,000 and cash plus short-term investments at $64,294,000; the cash ratio measures 3.53 and the current ratio equals 6.52—above the industry peer range high of 5.93—indicating an ample short-term cushion relative to liabilities. Total debt equals $6,641,000 and debt-to-assets equals 4.49%, well below the industry peer mean of 27.35%, supporting financial flexibility.
Profitability shows ongoing pressure. Operating income (EBIT) equals -$3,156,000 and EBIT margin equals -21.01%, a decline of 5.98 percentage points QoQ and 2.46 percentage points YoY. That margin sits below the industry peer mean (26.63%) and median (23.68%) but above the industry peer low (-62.08%). Net income totaled -$3,337,000 and operating cash flow totaled -$1,785,000; operating leverage remains negative.
Revenue and growth metrics display early expansion. Total revenue equals $15,019,000 and revenue growth YoY measures 4.41% while revenue growth QoQ shows -702.87% (as provided). Gross margin equals 31.39%, improving 5.64 percentage points QoQ and 6.80 percentage points YoY, yet below the industry peer mean of 57.42% and median of 65.25%.
Earnings per share came in at -$0.35 versus an estimate of -$0.40, producing an EPS surprise ratio of 12.5%. Reported forward revenue equals $2,234,547 and forward EPS equals -$0.35; trailing PE sits negative at -43.68 and forward PE near -42.76. Price-to-book at 0.73 and price-to-sales at 5.94 appear modest relative to peer means, supporting valuation compression despite profitability headwinds.
Working capital dynamics show inventory of $40,839,000 and a cash-conversion-cycle of 364 days—well above the industry peer mean of 107.9 days but below the peer high—indicating significant capital tied to inventory and receivables while the company retains large liquidity buffers.
Valuation summary: WMDST values the stock as under-valued, anchored by a strong cash position, low leverage and modest price multiples (P/B 0.73, EV/R ~2.10) despite negative earnings and compressed margins; those earnings deficits limit valuation upside until margins recover or revenue accelerates materially.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-27 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | $ -1.78 M | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 3.3 M | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 15.0 M | |
| Forward Revenue | $ 2.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 10.3 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 5.1 M | |
| Total Operating Expenses | $ 18.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 4.7 M | |
| EBITDA | $ -3.16 M | |
| EBIT | $ -3.16 M | |
| Operating Income | $ -3.16 M | |
| Interest Income | $ 123.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 123.0 K | |
| Income Before Tax | $ -3.03 M | |
| Tax Provision | $ 304.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -3.34 M | |
| Net Income From Continuing Operations | $ -3.34 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.40 | |
| EPS Actual | $ -0.35 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 12.5 % | |
| Forward EPS | $ -0.35 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 147.8 M | |
| Intangible Assets | $ 2.3 M | |
| Net Tangible Assets | $ 119.4 M | |
| Total Current Assets | $ 118.7 M | |
| Cash and Short-Term Investments | $ 64.3 M | |
| Cash | $ 52.3 M | |
| Net Receivables | $ 10.7 M | |
| Inventory | $ 40.8 M | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 8.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 18.2 M | |
| Net Debt | — | |
| Total Debt | $ 6.6 M | |
| Total Liabilities | $ 26.1 M | |
| EQUITY | ||
| Total Equity | $ 121.7 M | |
| Retained Earnings | $ 101.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 21.45 | |
| Shares Outstanding | 5.674 M | |
| Revenue Per-Share | $ 2.65 | |
| VALUATION | Market Capitalization | $ 89.2 M |
| Enterprise Value | $ 31.5 M | |
| Enterprise Multiple | -9.989 | |
| Enterprise Multiple QoQ | 68.373 % | |
| Enterprise Multiple YoY | 8.823 % | |
| Enterprise Multiple IPRWA | high: 155.2 mean: 64.295 median: 62.152 SILC: -9.989 low: -128.676 |
|
| EV/R | 2.099 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.214 | |
| Asset To Liability | 5.666 | |
| Debt To Capital | 0.052 | |
| Debt To Assets | 0.045 | |
| Debt To Assets QoQ | 7.953 % | |
| Debt To Assets YoY | 314.483 % | |
| Debt To Assets IPRWA | high: 0.542 mean: 0.274 median: 0.244 SILC: 0.045 low: 0.008 |
|
| Debt To Equity | 0.055 | |
| Debt To Equity QoQ | 9.186 % | |
| Debt To Equity YoY | 340.711 % | |
| Debt To Equity IPRWA | high: 2.179 mean: 0.291 median: 0.14 SILC: 0.055 low: 0.009 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.733 | |
| Price To Book QoQ | 7.541 % | |
| Price To Book YoY | 5.13 % | |
| Price To Book IPRWA | high: 13.582 mean: 6.678 median: 5.083 SILC: 0.733 low: -11.218 |
|
| Price To Earnings (P/E) | -43.675 | |
| Price To Earnings QoQ | 9.713 % | |
| Price To Earnings YoY | -61.264 % | |
| Price To Earnings IPRWA | high: 176.345 mean: 93.659 median: 90.525 low: -36.984 SILC: -43.675 |
|
| PE/G Ratio | 8.081 | |
| Price To Sales (P/S) | 5.938 | |
| Price To Sales QoQ | 0.565 % | |
| Price To Sales YoY | -10.558 % | |
| Price To Sales IPRWA | high: 34.766 median: 16.502 mean: 15.882 SILC: 5.938 low: 0.438 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -42.759 | |
| Forward PE/G | 7.911 | |
| Forward P/S | 39.908 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.416 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.101 | |
| Asset Turnover Ratio QoQ | 5.32 % | |
| Asset Turnover Ratio YoY | 10.398 % | |
| Asset Turnover Ratio IPRWA | high: 0.311 median: 0.142 mean: 0.141 SILC: 0.101 low: 0.074 |
|
| Receivables Turnover | 1.25 | |
| Receivables Turnover Ratio QoQ | 9.092 % | |
| Receivables Turnover Ratio YoY | 7.307 % | |
| Receivables Turnover Ratio IPRWA | high: 3.252 mean: 1.993 median: 1.691 SILC: 1.25 low: 0.61 |
|
| Inventory Turnover | 0.255 | |
| Inventory Turnover Ratio QoQ | 2.198 % | |
| Inventory Turnover Ratio YoY | 13.354 % | |
| Inventory Turnover Ratio IPRWA | high: 2.986 median: 1.596 mean: 1.197 SILC: 0.255 low: 0.229 |
|
| Days Sales Outstanding (DSO) | 72.974 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 364.46 | |
| Cash Conversion Cycle Days QoQ | -1.949 % | |
| Cash Conversion Cycle Days YoY | -17.488 % | |
| Cash Conversion Cycle Days IPRWA | high: 406.872 SILC: 364.46 mean: 107.907 median: 50.228 low: -74.166 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.149 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 121.7 M | |
| Net Invested Capital | $ 121.7 M | |
| Invested Capital | $ 121.7 M | |
| Net Tangible Assets | $ 119.4 M | |
| Net Working Capital | $ 100.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.53 | |
| Current Ratio | 6.519 | |
| Current Ratio QoQ | -12.178 % | |
| Current Ratio YoY | -33.069 % | |
| Current Ratio IPRWA | SILC: 6.519 high: 5.925 mean: 1.79 median: 1.446 low: 0.533 |
|
| Quick Ratio | 4.277 | |
| Quick Ratio QoQ | -17.253 % | |
| Quick Ratio YoY | -34.081 % | |
| Quick Ratio IPRWA | high: 6.155 SILC: 4.277 mean: 1.559 median: 0.949 low: 0.415 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -2.104 | |
| Cost Of Debt | 3.67 % | |
| Interest Coverage Ratio | -10.555 | |
| Interest Coverage Ratio QoQ | -1.835 % | |
| Interest Coverage Ratio YoY | 1.024 % | |
| Interest Coverage Ratio IPRWA | high: 29.094 mean: 9.45 median: 8.292 SILC: -10.555 low: -17.859 |
|
| Operating Cash Flow Ratio | -0.098 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 72.883 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.253 % | |
| Revenue Growth | 4.407 % | |
| Revenue Growth QoQ | -702.873 % | |
| Revenue Growth YoY | 361.95 % | |
| Revenue Growth IPRWA | high: 42.796 % mean: 5.616 % SILC: 4.407 % median: 3.554 % low: -38.099 % |
|
| Earnings Growth | -5.405 % | |
| Earnings Growth QoQ | -85.072 % | |
| Earnings Growth YoY | -91.442 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 2.819 % median: 2.128 % SILC: -5.405 % low: -400.0 % |
|
| MARGINS | ||
| Gross Margin | 31.394 % | |
| Gross Margin QoQ | 5.64 % | |
| Gross Margin YoY | 6.797 % | |
| Gross Margin IPRWA | high: 92.046 % median: 65.249 % mean: 57.416 % SILC: 31.394 % low: 7.551 % |
|
| EBIT Margin | -21.013 % | |
| EBIT Margin QoQ | -5.982 % | |
| EBIT Margin YoY | -2.456 % | |
| EBIT Margin IPRWA | high: 73.378 % mean: 26.632 % median: 23.677 % SILC: -21.013 % low: -62.082 % |
|
| Return On Sales (ROS) | -21.013 % | |
| Return On Sales QoQ | -5.982 % | |
| Return On Sales YoY | -2.456 % | |
| Return On Sales IPRWA | high: 68.34 % mean: 26.383 % median: 23.677 % SILC: -21.013 % low: -60.161 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | -11.885 % | |
| Cash Flow To Earnings | 0.535 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -2.243 % | |
| Return On Assets QoQ | 19.947 % | |
| Return On Assets YoY | 134.623 % | |
| Return On Assets IPRWA | high: 9.389 % mean: 2.839 % median: 2.066 % SILC: -2.243 % low: -3.219 % |
|
| Return On Capital Employed (ROCE) | -2.435 % | |
| Return On Equity (ROE) | -0.027 | |
| Return On Equity QoQ | 21.768 % | |
| Return On Equity YoY | 149.863 % | |
| Return On Equity IPRWA | high: 0.399 mean: 0.092 median: 0.054 SILC: -0.027 low: -0.306 |
|
| DuPont ROE | -2.709 % | |
| Return On Invested Capital (ROIC) | -2.048 % | |
| Return On Invested Capital QoQ | 32.385 % | |
| Return On Invested Capital YoY | -171.235 % | |
| Return On Invested Capital IPRWA | high: 12.105 % mean: 4.569 % median: 3.764 % SILC: -2.048 % low: -5.305 % |
|