Record H1 FY26 revenue growth and EBITDA swing to profit
EnSilica has delivered a punchy set of half-year numbers. Revenue rose 37% to a record £12.7 million for the six months to 30 November 2025, with EBITDA flipping from a £0.2 million loss last year to a £1.7 million profit. Operating profit came in at £0.4 million versus a £0.8 million loss in H1 FY25.
Why does this matter? Because it shows the fabless ASIC maker’s model is scaling. More customers are moving from design into production, and the mix is shifting towards higher-quality, recurring chip supply and royalties over time.
Revenue mix: NRE surge, chip supply scaling
Two terms to keep straight:
- ASIC: custom chips built for a specific application.
- NRE (non-recurring engineering): one-off design fees that fund a chip’s development, often leading to long-term production supply and royalties.
Chip supply revenue grew 34% to £3.9 million, a key metric as EnSilica transitions from a consultancy-led model to a multi-stream business. NRE revenue more than doubled to £5.8 million, reflecting design-and-supply wins from FY25 moving through milestones. Consultancy revenue was £3.0 million, lower as expected after a large project in the prior period did not repeat.
The geographic split also evolved: UK revenue was £5.9 million, Rest of Europe £5.0 million, and Rest of the World £1.8 million. Customer concentration eased too – the largest customer represented 20% of revenue, with two others over £1.0 million, versus much heavier concentration in H1 FY25.
Cash flow, margins and balance sheet signals
Gross margin edged up to 38% (H1 FY25: 37%), helped by supply revenues. Operationally, the cash picture was strong: £4.4 million net cash from operations, driven by EBITDA and £2.7 million favourable working capital (notably upfront milestone payments). Cash and cash equivalents ended flat at £2.0 million, as the business invested £3.1 million in supply contracts and IP to underpin future recurring revenue.
Below the line, there was a £0.6 million tax charge – including deferred tax on capitalised intangibles – which meant a small loss after tax of £0.5 million, despite a positive operating result. Borrowings stood at £4.9 million with Bank of Scotland (a mix of term loan and RCF). The company notes sufficient cash resources under current forecasts, but flags that in a downside scenario delays could risk loan covenant breaches without lender accommodation. It is a standard, sensible caution to keep in mind.
Key numbers at a glance
| Metric | H1 FY26 | H1 FY25 |
|---|---|---|
| Revenue | £12.7 million | £9.3 million |
| Chip supply revenue | £3.9 million | £2.9 million |
| EBITDA | £1.7 million | £0.2 million loss |
| Operating profit/(loss) | £0.4 million | £0.8 million loss |
| Profit/(loss) before tax | £0.1 million | £1.4 million loss |
| Loss after tax | £0.5 million | £1.2 million loss |
| Gross margin | 38% | 37% |
| Net cash flow from operations | £4.4 million | £1.6 million outflow |
| Cash and cash equivalents | £2.0 million | £2.8 million (30 Nov 2024) |
| Investment in supply contracts & IP | £3.1 million | £2.6 million |
Order book coverage and FY26 outlook
Here’s the standout line: more than 95% of FY26 revenue is already covered by existing customer contracts. That underpins management’s outlook for the year and reduces forecasting risk. Revenues are expected to be second-half weighted, as usual, due to milestone timing and chip tape-outs (final design sign-off before manufacturing).
Beyond FY26, the Board sees operating leverage improving as more programmes cross from development into sustained production, with a goal of reaching positive monthly operational cash generation by the end of calendar 2026. In the separate going concern assessment, management note around 70% of the broader forecast period’s revenue is contracted, supporting visibility while acknowledging downside sensitivities.
Sector wins: satellite, automotive and secure silicon
Operational momentum looks healthy. Five ASICs are now in the supply phase, generating recurring revenue, and several advanced programmes are approaching tape-out. The company highlighted ongoing strength in satellite communications, winning a $1.4 million purchase order to advance a satellite payload ASIC following feasibility work, and sustained engagement on both user terminals and payload chips.
On the security side, EnSilica won a £5 million UK Contract for Innovation to develop a secure, quantum-resilient processor ASIC for critical national infrastructure. That sits neatly alongside the company’s Post-Quantum Cryptography-ready IP. In automotive, EnSilica passed 10 million cumulative ASIC shipments on a long-running programme – a handy proof-point for production scale and reliability.
Capacity is being built out, too, with a new mixed-signal design centre in Budapest and 16 engineers hired in Hungary during the period, expanding analogue and mixed-signal capability across the EU.
What’s under the bonnet: revenue quality and visibility
Two themes matter for investors:
- Recurring engine building: Chip supply and royalties are becoming a larger share of the mix. That supports margins and predictability over time.
- Contracted cover: With 95% of FY26 revenue booked, execution risk is more about delivery timing than deal capture. Contract liabilities rose to £6.6 million (from £1.6 million a year ago), reflecting upfront billings tied to milestones – another marker of revenue in hand.
The balance of UK/European/ROW customers, lower concentration than last year, and progress across multiple end markets (satcoms, automotive, industrial, secure silicon) all point to broader foundations being laid.
Risks and what to watch next
- Tax and below-the-line items: The period still posted a £0.5 million loss after tax due to deferred tax on intangibles. It’s accounting, but it matters to the bottom line.
- Debt and covenants: Borrowings were £4.9 million. The company highlights potential covenant risk in a downside scenario if milestones slip and lender support is not secured. Keep an eye on delivery timelines.
- H2 weighting: As ever with design-and-supply models, the second half does the heavy lifting. Watch for tape-outs converting to production on schedule.
- Cash discipline: Cash ended flat at £2.0 million after £3.1 million of IP and supply co-investment. Management targets positive monthly operational cash generation by end-2026.
My take: why this RNS matters for EnSilica shareholders
This is a solid execution half. Record revenue, a clean EBITDA turnaround, better gross margin, strong operating cash inflow, and – crucially – 95% of FY26 revenue already booked. The step-up in NRE and the 34% rise in chip supply suggest the flywheel is turning: design wins are maturing into recurring supply.
The caution flags are sensible rather than alarming: second-half weighting, some tax drag, and covenant language that reflects the realities of milestone-based businesses. If EnSilica continues to hit customer milestones and convert designs to volume, the mix shift should support margins and cash, just as management outlines.
Bottom line: momentum in satellite and secure silicon, proof-points in automotive scale, and strong contracted cover set EnSilica up well for FY26. Delivery in H2 will be the key. If you want more colour, the company is hosting an investor presentation at 12 p.m. GMT on Thursday, 5 February 2026 via the Investor Meet Company platform: register here.
