EnSilica’s new business conversion has been excellent (five wins YTD) and furthermore supply revenues also materially grew, though neither were material factors in H1, and hence sales are down -3% y/y while FCF has reduced. However, as these new contracts are now live (and generating revenue) while a large tape-out is also expected, EnSilica should achieve as strong H2, with the caveat that customer dependencies may impact revenue recognition. Given this, profit and cash will likely remain in focus, at least until FY26 when supply revenue should scale and in turn drive better cash generation. So having secured several high value contracts, sales execution isn’t an issue and rather it’s about bringing these to market as rapidly and as cost effectively as possible. As such, EnSilica’s prospects are very much within its own control.
