EnSilica Reports Record H1 Revenues and EBITDA Profit Turnaround

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.