So the results are finally out and I am pleased to say that in my opinion they are better than I expected following the recent trading update and EnSilica appears to be making solid operational progress towards hopefully one day becoming Europe’s premier application specific chip designer.
In the annual report¹ there is much to be positive about including;
– Chip supply revenue pretty much doubled with 97% year on year growth
– Gross margins improved from 36% to 40%
– They have now shipped 10 million automotive chassis controller ASICs
– $250m visibility of future lifetime supply revenues
– $400m sales opportunity pipeline
– They are targeting to become cash flow positive during 2026
And as we learnt yesterday EnSilica is in an enviable position in the high growth space communications sector with two new contracts with separate satellite service operators as part of the C-LEO UK Space Agency programme which can include ESA-route funding for continental European projects I understand. I suspect these may relate to EnSilica chipsets potentially ‘being designed into next-generation user terminals by leading global satellite-service providers’².
Additionally they are engaged in three feasibility studies for satellite payload ASICs, with ‘two for major satellite service operators and one for a satellite payload supplier. Each engagement has potential to progress to a multi-year, multi-million pound ASIC contract. One contract includes a recurring “per-satellite” monthly revenue model, in addition to significant ASIC royalties.’³.
I cannot give any meaningful evidence on this however I suspect SES’ GovSat2 may be one of these projects, as well as the SES led consortium project for the European Union’s €10.55 billion, 12-year concession contract to develop the Iris² constellation by 2030⁴. If successful we may find out in time and no matter who the end customer hopefully all three will progress into substantial future chip supply contracts in a similar way to the AST SpaceMobile arrangement⁵.
In relation to other aspects, as I have previously stated I hope that the customer-side delays we have seen this year and bad debt provision for the SIAE contract will pan out well with previously expected FY25 revenue eventually being recognised⁶. It was particularly pleasing to see that, what I suspect is Jaguar Land Rover, has dramatically increased demand of automotive chassis controller ASICs in the last year taking total supplies by EnSilica now from 5 million to 10 million.
Despite the notable progress this year, it is important to remain mindful that while the balance sheet is improving and cash flow concerns easing dramatically since FY24 in my opinion, there is still uncertainty given single large contracts if delayed could have a material impact upon the viability of the firm. However as Kristoff Rademan, EnSilica Chief Financial Officer, ends his review on page 16 of the annual report ‘the Directors are confident that the Company will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months’⁷.
In summary I remain confident in EnSilica’s management and would like to thank them and all EnSilica’s staff for their continued hard work and progress. While I think refinements can be made that may hopefully accelerate the firm towards where I believe it deserves to be in time, I think today marks another step towards EnSilica hopefully one day becoming Europe’s premier application specific chip designer.
¹ https://www.ensilica.com/wp-content/uploads/272132-EnSilica-AR-WEB-version-2.pdf
² https://www.ensilica.com/wp-content/uploads/272132-EnSilica-AR-WEB-version-2.pdf (P.11)
³ https://www.londonstockexchange.com/news-article/ENSI/project-progress-update-and-new-contract-awards/17306865
⁴ Europe Allocates €10.6B to Build and Launch IRIS2 Constellation – European Spaceflight
⁵https://doublebubbler.com/2025/10/08/why-ensilica-enabled-ast-spacemobile-is-the-future-of-communications-imo/
⁶ https://doublebubbler.com/2025/10/16/ensilica-trading-update-detailed-opinion/
⁷ https://www.ensilica.com/wp-content/uploads/272132-EnSilica-AR-WEB-version-2.pdf (P.16)
What I particularly like when comparing the FY24 and FY25 annual reports is the change in tone and stated ambition of EnSilica’s management… they clearly have growing confidence in their strategy that could one day culminate in EnSilica becoming Europe’s premier application specific chip designer.
As I have previously said, EnSilica has the potential in my opinion in the decades ahead to become Europe’s answer to Qualcomm, a $200 billion business started with only seven employees. I sincerely believe this possibility could be the case and intend to continue my efforts to help EnSilica hopefully realise this lofty, yet in my opinion credible goal!
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In repsonse to a comment on this article on Reddit I thought it may be worth sharing the discussion here also. Reddit user u/will-atlas-inspire said…
‘Great to see EnSilica’s continued growth with new contracts and project progress across multiple design centers. Managing complex ASIC projects across global facilities can be challenging.
A common first step for semiconductor companies scaling operations is implementing AI-driven design verification tools to catch potential issues earlier in the development cycle, especially with mixed-signal designs.’
My response…
‘Thanks for your comment. I can’t say I know a lot about the specifics of ASIC design but I have learnt a lot over the decades about what can propel a company higher in terms of shareholder value. Value that can unlock further value in a virtuous circle.
I think EnSilica is destined for a promising future (a 10x pick for the years ahead imo) however I now intend to write in detail in the near future about why I think the management team could be achieving better shareholder returns in my opinion. For example their new joint broker (Panmure Liberum) has not done them any favours recently in my opinion.
Perhaps EnSilica’s will engage with me in more detail in time. Mark Hodgkins (Executive Chairman) is happy to chat but I am still awaiting a response from Ian Lankshear (CEO) about whether he will give me an hour of his time. They certainly seem to have taken on board some of my views this year… such as boosting their confidence to now talk about what could be… i.e. them becoming Europe’s premier ASIC company. Hopefully in time they will consider other suggestions that I believe can deliver shareholder returns.‘
You can follow the conversation further here…
https://www.reddit.com/r/DoubleBubbler/comments/1oo4e2f/ensilica_fy25_progress_for_becoming_europes/