EnSilica Posts Strong H1 Revenue Growth and Swing to Profit, Reiterates FY Guidance

EnSilica H1 FY 2026: revenue jumps 36.6% and EBITDA swings to profit

EnSilica’s H1 FY 2026 trading update is a clear step forward. The fabless chipmaker posted revenues of around £12.7 million for the six months to 30 November 2025, up from £9.3 million a year ago. That is roughly 36.6% year-on-year growth. EBITDA moved from a £0.2 million loss to a profit of around £1.7 million, helped by higher Non-Recurring Engineering (NRE) and chip supply revenues.

The cash balance was £2.0 million at 30 November 2025, unchanged from 31 May 2025. The Board reiterated full-year guidance for FY 2026 and flagged that revenue will be weighted to the second half, with several chip tape-outs scheduled.

What drove the turnaround: NRE and chip supply doing the heavy lifting

NRE is the upfront design and development work customers pay for when commissioning a custom chip. It is typically followed by recurring supply revenue once chips move into volume production. EnSilica says both NRE and supply revenues were strong in the period, which is exactly the blend you want to see in a fabless model.

Design and NRE activity remains robust, with new programme wins layered on top of existing long-term engagements. Management also highlights a strong pipeline of advanced ASICs that should underpin future chip supply revenues. In short, the near-term cash flow from NRE is funding the journey to longer-term, higher-margin production supply.

End-market momentum: satellites, safety and post-quantum security

The strategy focus is unchanged: high-growth, technology-led niches where reliability, safety and security really matter. During H1, EnSilica called out growing traction in satellite communications and rising demand for safe and secure chips.

• Satellite communications: expanding engagement across user terminals, payloads and resilient positioning, navigation and timing.
• Security and longevity: increased demand for safe, secure chips for long-lifecycle systems, regulatory compliance and supply chain resilience.
• Post-Quantum Cryptography: EnSilica’s PQC-ready security IP and architectures are increasingly relevant in satellite, automotive, industrial and critical infrastructure applications.

The common thread is customers who need tailored, robust silicon and are willing to commit to multi-year programmes. That supports visibility and repeatability in the model.

Key numbers at a glance

Metric	H1 FY 2026	H1 FY 2025	Change
Revenue	£12.7 million (around)	£9.3 million	+36.6%
EBITDA	£1.7 million (around)	£0.2 million loss	Significant improvement
Cash balance	£2.0 million	£2.0 million (31 May 2025)	Flat

Guidance reiterated: revenue covered and H2-weighted

The Board reiterated FY 2026 guidance of £28 million to £30 million in revenue, with more than 95% already covered by existing customer contracts. EBITDA is guided to £3.5 million to £4.5 million. Management expects the year to be second-half weighted, supported by several customer chip tape-outs due in H2. A tape-out is the final stage of design sign-off before manufacturing starts.

Importantly, the company expects a phased reduction in cash consumption and is targeting positive monthly cash generation by the end of calendar year 2026. That suggests the mix shift from NRE to supply, plus operating leverage, should progressively improve cash dynamics.

Why this update matters for investors

This is the operational beat investors in EnSilica have been waiting for. Strong like-for-like growth, a clean swing to EBITDA profitability and a full-year outlook that is largely underpinned by contracted work tick the right boxes. The mix is improving too, with early signs of scale in chip supply alongside a healthy NRE engine.

Thematically, EnSilica is fishing in good waters. Satellite communications, secure silicon and post-quantum cryptography are specialist areas where custom ASICs can command strong returns and long lifecycles. If H2 tape-outs convert to steady production, the recurring supply revenues should build a sturdier earnings base.

Balanced view: positives and pressure points

Positives

• Revenue growth in excess of 35%, with H1 revenue around £12.7 million and EBITDA of around £1.7 million.
• More than 95% of FY 2026 revenue guidance already covered by existing contracts.
• Robust design and NRE activity plus a strong pipeline of advanced ASIC programmes.
• Clear traction in high-value niches: satellite communications, safety-critical and PQC-ready security.

Pressure points

• Cash balance steady at £2.0 million, implying working capital discipline will remain important until supply revenues scale further.
• FY 2026 is H2-weighted, so execution on planned tape-outs and production ramps is critical.
• The company notes a phased reduction in cash consumption, but monthly cash positivity is targeted by end-2026, not imminent.

What is not disclosed

• Gross margin, operating cash flow, and detailed cash burn are not disclosed.
• Order book size and split between NRE and supply revenue are not disclosed.
• Customer concentration, geographic mix and any changes to payment terms are not disclosed.

What to watch next

• H2 tape-outs and first production shipments: the timing and scale will drive whether supply revenues step up as guided.
• Cash trajectory: evidence of reduced cash consumption quarter by quarter, on the way to positive monthly cash generation by end-2026.
• Further programme wins in satellites and secure systems, especially those leveraging PQC-ready IP.
• Conversion of the advanced ASIC pipeline into multi-year production contracts.

Bottom line: execution now shifts to H2 delivery

EnSilica has put a marker down with a solid H1: strong top-line growth, positive EBITDA and reaffirmed guidance with high revenue coverage. The strategic positioning in satellite communications and secure, long-lifecycle chips looks well judged. From here, the story hinges on H2 execution and the glidepath to cash generation through 2026.

For retail investors, this update reads positively. If the company lands the scheduled tape-outs and sees production scale as expected, the shift to recurring chip supply revenues should make FY 2026 and FY 2027 materially more interesting.