——Recovered non-GAAP profits ahead of initial expectations

Revenue increased by 71% year-on-year, thanks to the strong momentum of Design Win.

Cafarsaba, Israel, October 29, 2026 / PRNewswire / -- Sil Token Issuance m Ltd. (Nasdaq Code: SILC) Today, the company announced its financial results for the third quarter as of September 30, 2026. The company is a provider of high-performance server/equipment network solutions.

Financial Performance

Third Quarter: Sil Token Issuance. In the third quarter of 2026, revenue reached $26.7 million, a 71% increase from $15.6 million in the third quarter of 2025.

According to the GAAP metric, the company recorded a net loss of $300,000, which is a loss of $0.06 per common share (both basic and diluted). In contrast, the net loss for the third quarter of 2025 was $2.8 million, resulting in a loss of $0.49 per common share (both basic and diluted), representing an improvement of 88%.

According to a non-GAAP metric (for definition and adjustment, see below), the company recorded a net profit of $300,000, which is $0.04 per common share (both basic and diluted); whereas in the third quarter of 2025, there was a net loss of $2.1 million, which is $0.36 per common share (both basic and diluted).

First nine months: Sil token issuance. Revenue grew by 55% in the first nine months of 2026, reaching $69.6 million; in the same period of 2025, it was $45 million.

According to the GAAP metric, the net loss for this period was 4.8 million US dollars, which represents a loss of 0.84 US dollars per common share (both basic and diluted). This represents a 46% improvement compared to the previous nine months of 2025, when the net loss was 8.9 million US dollars, resulting in a loss of 1.57 US dollars per common share.

According to non-GAAP criteria (for definition and adjustment, see below), the net loss for this period was $2.1 million, which represents a loss of $0.37 per common share (both basic and diluted). This represents a 66% improvement compared to the net loss of $6.1 million in the first nine months of 2025, which was $1.08 per common share.

Performance Guidance

Based on the highly predictable recurring revenue generated by the company's Design Win platform, revenue for the fourth quarter is expected to reach $27 million to $28 million; calculated at the upper end of the guidance, this represents a year-over-year increase of 66%. Therefore, the company has once again raised its full-year revenue forecast for 2026 to $96 million to $98 million, which means a year-over-year increase of 57%.

Management Commentary

Sil, President and CEO of Liron Eizenman, stated: "We are delighted to report that revenue in the third quarter reached $26.7 million, representing a 71% increase from the third quarter of 2025. Driven by strong execution and the significant leverage inherent in our business model, we have recovered non-GAAP profitability earlier than initially anticipated. These results further enhance our confidence in the strength of our target markets, the effectiveness of our execution, and the robustness of our strategic plan."

Eizenman continued, "Our growth is still driven by strong Design Win momentum. The Design Win we have acquired today will drive growth in the coming years, making it one of the most important indicators for measuring future performance. The two new Design Win added this quarter bring our total from the beginning of the year to date to eight, which has already exceeded the lower end of our annual guidance and puts us on track to reach or exceed the upper end."

"Our project reserves are still ample and diversified, covering the entire product portfolio – edge systems, Smart NIC and FPGA – as well as AI inference, white-box switches, and post-quantum cryptography. We are particularly encouraged by the success of our strategic plans, which enables us to invest simultaneously in our core business, as well as in the field of AI inference, which has significant long-term upside potential; AI inference is a natural extension of our core expertise, capabilities, customer base, and intellectual property foundation."

In conclusion, these achievements clearly indicate that the token issuance of Sil has crossed a turning point. Customer demand continues to expand, and the momentum for growth is steadily strengthening. Our return to profitability marks an important milestone. With accelerated revenue growth and ongoing improvement in the business fundamentals, we expect to conclude 2026 with strong performance and carry this remarkable momentum into the highly promising year of 2027.

Telephone Conference Details

The token issuance management team of Sil will hold an interactive teleconference today, on October 29th, at 9 a.m. Eastern Time (6 a.m. Pacific Time, 3 p.m. Israel Time), to review and discuss the performance.

Investors can participate by accessing the live streaming link on the Sil token issuance website or by calling a telephone number. The link is located in the live streaming section for investor relations on the Sil token issuance website: https :// www.sil Token Issuance m-usa.com / webcasts /

For telephone dial-in, you can use the following conference call numbers:

• United States: 1 866 860 9642
• Israel: 03 918 0609
• International: +972 3 918 0609

Time: 9:00 a.m. Eastern Time, 6:00 a.m. Pacific Time, 3:00 p.m. Israel Time

It is recommended to connect a few minutes before the start of the teleconference.

Investors who were unable to attend the live teleconference can listen to the replay within three months after the teleconference has concluded, on the aforementioned online live broadcast platform.

Regarding the issuance of the Sil token...

Sil Token Issuance m Ltd. is a provider of high-performance network and data infrastructure solutions. Its solutions are designed to optimize performance and efficiency in cloud, data center, and edge environments, increase throughput, and reduce latency, serving as a foundational pillar for today's most critical technologies. The company's innovative products support high-demand workloads such as artificial intelligence (AI) inference, SD-WAN, SASE, network security, switching architecture, NFV, and more.

The company's complete product portfolio includes high-speed server adapters, advanced hardware offloading and acceleration engines, AI NIC, smart cards based on FPGA, post-quantum cryptography (PQC) hardware accelerators, white-label switches, and edge CPE. These products are used by global top-tier customers, including cloud service providers and OEM, to help them efficiently expand their networks. With its engineering expertise, solid financial position, and over 400 active Design Win accumulations, Sil tokens are issued as the "preferred" connection and performance partner for global technology leaders, driving the development of the next generation of infrastructure.

For more information, please visit: www.sil Token Issuance m.co.il

None of the statements in this press release constitute historical data; they are forward-looking statements within the meaning of the Securities Law. These statements involve known and unknown risks, uncertainties, or other factors beyond the company's control, which may lead to significant differences between the actual results, performance, or achievements of the company and those implied by these forward-looking statements.

For example, when a company discusses its revenue outlook or guidance for future periods, growth opportunities for products and solutions, market demand, expected customer deployments, the scalability of business models, operating performance, strategic partnerships, technological leadership, or industry trends that affect cloud infrastructure, artificial intelligence workloads, network acceleration technologies, or the telecommunications market, these are all considered forward-looking statements.

Other factors include, but are not limited to: the dependence of Sil token issuance on a small number of customers for significant revenue growth; industry trends that affect network and data center infrastructure, including the migration to cloud architecture, decoupling of network systems, and the separation of hardware and software solutions; the adoption speed of emerging technologies such as artificial intelligence inference infrastructure; the time and extent of market adoption of Sil token issuance's new products and newly acquired Design Win; fluctuations in customer procurement cycles and deployment timing; intellectual property protection, exchange rate changes; as well as potential disruptions to global shipping routes such as those through the Strait of Hormuz and the Red Sea due to wars in Gaza, Lebanon, with Iran, the Ukraine conflict, etc.

For more information regarding the company's business, including factors that may have a significant impact on the operating performance and financial condition of the Sil token issuance, please refer to the company's 20-F annual report and other documents submitted to the U.S. Securities and Exchange Commission (SEC), which may also be submitted in the future. Such forward-looking statements can typically be identified by words such as "expected," "should," "believed," "anticipated," and similar phrases. Similarly, statements describing future plans, objectives, or purposes also constitute forward-looking statements. Given the inherent significant risks and uncertainties associated with forward-looking statements, including such statements should not be regarded as guarantees by the Sil token issuance to achieve these forward-looking statements. The company does not assume any obligation to update such statements due to new information, future events, or other reasons.

Non-GAAP financial indicators

This press release (including the financial tables below) presents other financial information that may be considered "non-GAAP financial measures" in accordance with the requirements of the U.S. Securities and Exchange Commission (SEC) regulations. Such non-GAAP financial measures do not include options granted to directors, executives, and employees, as well as compensation expenses related to stock-based incentives, and the financial expenses (income) for lease liabilities. Non-GAAP financial measures should be evaluated in conjunction with GAAP financial measures and cannot replace them. The tables also show the most comparable GAAP financial measures for these non-GAAP financial indicators, as well as the adjustments between the non-GAAP financial measures and the most comparable GAAP financial measures. The non-GAAP financial information presented in this document should not be viewed in isolation, nor should it replace the operating income (loss), net income (loss), or earnings per share prepared in accordance with GAAP.

——The following is the financial statement——