Sivers Semiconductors Endures Q1 Setback From US Budget Stalemate as $799M Pipeline and Dual Listing Advance

Sivers Semiconductors finds itself in a curious position: its opportunity pipeline has ballooned to a record $799 million, up 77% since the start of the year, yet the first-quarter numbers tell a more sobering story. The Swedish chip specialist’s net revenue slipped 22% to 61.9 million Swedish kronor, dragged down by the US government shutdown in late 2025 and persistent delays in defence budget approvals. The mixed signals have left investors trying to weigh near-term headwinds against what the company describes as a "strong dynamic" in photonics and wireless.

Revenue for the opening quarter came in at 61.9 million SEK, down from 78.9 million SEK a year earlier. Adjusted EBITDA swung to a loss of 13.8 million SEK, while the operating result deepened to minus 41.5 million SEK from minus 28.3 million. Operating cash flow turned sharply negative at 49.2 million SEK, compared with 15.8 million SEK in the prior year. The company booked a net loss of 42.7 million SEK for the period. Management pinned the blame squarely on Washington: a budget stalemate that froze defence-related spending in the fourth quarter of 2025 pushed expected revenue streams into the second half of 2026. Unfavourable exchange rates added to the pressure.

Despite the soft start, CEO Vickram Vathulya reaffirmed the full-year outlook, arguing that revenues originally slated for Q1 and Q2 are merely delayed, not lost. Several product ramps for 2027 remain on track, and the company has increased spending on sales resources to capture the growing pipeline. That pipeline — covering opportunities in AI data centres, LiDAR, satellite communications, fixed wireless access and defence — now sits at $799 million, a jump from the level recorded at the end of 2025.

The path to a US listing is gathering pace. Sivers announced in April that it was exploring a dual listing on the Nasdaq in New York, and its Q1 financials were audited for the first time under Public Company Accounting Oversight Board standards — a prerequisite for a New York exchange. The transition required retroactive adjustments to the balance sheets for 2024 and 2025, covering revenue recognition, inventory valuation and stock-based compensation. The company’s Swedish domicile will remain unchanged.

Should investors sell immediately? Or is it worth buying Sivers Semiconductors?

To fund its growth ambitions, Sivers completed a directed share issue in May, placing 8.62 million new shares at 14.50 SEK each with a roster of institutional investors, including DNB Disruptive Opportunities, DNB Nordic Small Cap, Storebrand Sverigefond, Alcur Fonder, Atlant Fonder, Cicero Fonder, Hudson Bay Capital Management and Waterside AM. The move brought in fresh capital and added new names to the shareholder register. Total outstanding shares now stand at roughly 319.95 million, with about 305.2 million common shares and 14.8 million C-shares.

The stock’s journey this year has been nothing short of spectacular — up around 1,700% year-to-date — but the ride remains volatile. After hitting an all-time high of 74.90 SEK on 22 May, the shares closed at 68.95 SEK on 29 May, down 1.78% on the day. Short sellers are circling: short interest is estimated at around 17% of the free float, according to one of the source articles. The company’s inclusion in both the MSCI Sweden Small Cap Index (effective 29 May) and the OMX Stockholm Benchmark Index (from 1 June) is expected to trigger passive fund rebalancing, potentially adding a stabilising force.

On the defence front, Sivers secured a second-year extension for its Electronic Warfare STAR project, worth $6.6 million, through the Northeast Microelectronics Coalition Hub. The programme, which develops broadband antenna array technology for simultaneous transmit and receive in electronic warfare, communications and radar, involves collaboration with BAE Systems, MIT Lincoln Laboratory and Columbia University. In the commercial sphere, a partnership with Win Semiconductor is designed to add manufacturing capacity and ease capital expenditure pressure.

Sivers Semiconductors at a turning point? This analysis reveals what investors need to know now.

The annual general meeting is set for 15 June in Stockholm. Shareholders will vote on the election of Joakim Nideborn and Helena Svancar to the board, as well as a new stock option programme covering seven million options. The meeting was postponed from late May to allow the company to wrap up audit work linked to its US listing preparations.

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