CEVA INC (CEVA): Results of Operations and Financial Condition
CEVA INC (CEVA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Ceva, Inc. Announces Second Quarter 2026 Financial Results Company posts highest licensing and related revenues in three years on strong AI and connectivity demand ROCKVILLE, MD., August 10, 2026 – Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and softwa
How this was made
The 30-second read
Why it matters
Traders can reassess CEVA’s near-term earnings power based on licensing growth and margin expansion, and map the reported design-win details (NeuPro-M NPU selection, baseband subsystem expansion) to future royalty/licensing conversion.
Market read
Q2 results show stronger licensing and related revenues plus improved non-GAAP operating margin, with multiple new licensing agreements and specific AI/NPU and connectivity adoption signals.
What to watch
The release highlights new agreements and a product extension, but it does not quantify backlog, remaining performance obligations, or provide explicit 2026/next-quarter guidance, which can cap upside if investors expected more visibility.
Ceva posts highest licensing and related revenues in three years on strong AI and connectivity demand
Total revenues increased 13%, licensing and related revenues increased 21% to the highest level in three years, and non-GAAP operating income rose to $3.1 million from $0.8 million. GAAP operating and net results remained losses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $29.0 million | – | up 13% |
| Cost of revenuesGAAP | $3,646 (U.S. dollars in thousands) | – | – |
| Gross profitGAAP | $25,387 (U.S. dollars in thousands) | – | – |
| Gross marginGAAP | 87% | – | – |
| Research and development, netGAAP | $19,332 (U.S. dollars in thousands) | – | – |
| Sales and marketingGAAP | $3,279 (U.S. dollars in thousands) | – | – |
| General and administrativeGAAP | $4,743 (U.S. dollars in thousands) | – | – |
| Amortization of intangible assetsGAAP | $109 (U.S. dollars in thousands) | – | – |
| Total operating expensesGAAP | $27,463 (U.S. dollars in thousands) | – | – |
| Operating lossGAAP | $2.1 million | – | – |
| Financial income, netGAAP | $978 (U.S. dollars in thousands) | – | – |
| Remeasurement of marketable equity securitiesGAAP | $24 (U.S. dollars in thousands) | – | – |
| Loss before taxes on incomeGAAP | $(1,074) (U.S. dollars in thousands) | – | – |
| Income tax expenseGAAP | $1,836 (U.S. dollars in thousands) | – | – |
| Net lossGAAP | $2.9 million | – | – |
| Basic and diluted net loss per shareGAAP | $0.10 | – | – |
| Weighted-average shares used to compute net loss per share, basic and dilutedGAAP | 27,996 (in thousands) | – | – |
| Gross marginnon-GAAP | 88% | – | – |
| Operating incomenon-GAAP | $3.1 million | – | – |
| Operating marginnon-GAAP | 11% | – | – |
| Net incomenon-GAAP | $2.3 million | – | – |
| Diluted earnings per sharenon-GAAP | $0.08 | – | – |
| Total revenues, six months ended June 30GAAP | $56,057 (U.S. dollars in thousands) | – | – |
| Operating loss, six months ended June 30GAAP | $(7,161) (U.S. dollars in thousands) | – | – |
| Net loss, six months ended June 30GAAP | $(7,369) (U.S. dollars in thousands) | – | – |
| Basic and diluted net loss per share, six months ended June 30GAAP | $(0.26) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Licensing and related revenuesLicensing momentum was led by selection of Ceva’s NeuPro-M NPU IP for next-generation custom AI silicon by a leading global AI and computing platform company. | $18.2 million | – | up 21% |
| RoyaltiesStrong wireless connectivity shipments, continued ramp of automotive AI programs and improving smartphone royalties. | $10.8 million | 17% sequentially | up 1% year over year |
What drove it
- Ten IP licensing agreements were signed during the quarter, including two with first-time customers and two directly with OEMs.
- A leading global AI and computing platform company selected Ceva’s NeuPro-M NPU IP for next-generation custom AI silicon.
- A high-volume U.S. semiconductor company added a third-party chip based on Ceva’s Wi-Fi 6 and Bluetooth Low Energy IP to its portfolio.
- An existing U.S. customer expanded its license from an individual baseband component IP to Ceva’s complete baseband processing subsystem.
- Trailing-twelve-month licensing and related revenues increased 13% to $69.6 million.
- Ceva launched RealSpace Elevate, extending its Microsoft-certified spatial audio technology into the PC gaming market.
Concerns
- GAAP operating loss was $2.1 million and GAAP net loss was $2.9 million.
- Income tax expense was $1,836 (U.S. dollars in thousands) despite a loss before taxes on income of $(1,074) (U.S. dollars in thousands).
- Ceva cites intense industry competition, market acceptance, changing end-user needs, lengthy sales cycles, geopolitical risks, tariffs and other trade measures as risks.
What to watch
- Conversion of AI and connectivity licensing agreements into longer-term customer relationships and royalty streams.
- The continuing ramp of automotive AI programs and improving smartphone royalties.
- Whether royalty revenue maintains its reported 17% sequential growth.
- Progress in expense management and profitability improvement.
Analysis
Ceva reported a solid second quarter, led by licensing and related revenues of $18.2 million, up 21% and described as the highest level in three years. Total revenues were $29.0 million, up 13%. The company signed ten licensing agreements, including two with first-time customers and two directly with OEMs. Management identified an agreement with a leading global AI and computing platform company for NeuPro-M NPU IP as a meaningful expansion of its AI customer base.
Revenue mix showed strength in both primary streams. Licensing and related activity was supported by AI and broader connectivity engagements, including Wi-Fi 6, Bluetooth Low Energy and baseband processing subsystem opportunities. Royalties were $10.8 million, up 1% year over year and 17% sequentially. The company attributed royalty support to wireless connectivity shipments, automotive AI program ramps and improving smartphone royalties.
Profitability improved on both reported margin measures and non-GAAP operating results. GAAP gross margin was 87%, compared with 86%, while non-GAAP gross margin was 88%, compared with 87%. Non-GAAP operating income was $3.1 million, compared with $0.8 million, and non-GAAP operating margin was 11%, compared with 3%. GAAP results remained negative, with a $2.1 million operating loss and a $2.9 million net loss.
The principal figures to monitor are licensing momentum, the sequential royalty improvement and the persistence of the reported non-GAAP operating leverage. Trailing-twelve-month licensing and related revenues increased 13% to $69.6 million, according to the CFO. The filing did not provide numerical forward guidance, cash flow measures, balance-sheet amounts, dividends or repurchases, limiting visibility into near-term financial targets, liquidity and capital allocation.
Management, verbatim
We delivered another strong quarter, with revenue increasing 13% year over year, fueled by licensing and related revenue growing 21% to its highest level in three years.
Amir Panush, Chief Executive Officer of Ceva
Combined with improving royalty trends and disciplined expense management, this drove non-GAAP operating margin to 11%, up from 3% a year ago, demonstrating the operating leverage inherent in our business model.
Yaniv Arieli, Chief Financial Officer of Ceva
Not in the filing
stated, not guessed- Numerical forward guidance for revenue, gross margin, operating expenses, tax rate and other metrics
- Prior-quarter total revenue and licensing and related revenue
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Complete non-GAAP reconciliation results, as the filing text is truncated after the beginning of the reconciliation table
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 covering Ceva’s Q2 2026 financial results and business highlights tied to AI and connectivity IP.
Ticker impact
CEVA reported Q2 2026 results with total revenue up 13% and licensing and related revenues up 21% to the highest in three years.
Near-term bias higher as traders price in sustained licensing momentum and margin expansion, though follow-through depends on continued NPU and connectivity design wins.
The 8-K includes concrete financial results (revenue, licensing, margins) and new business details (10 licensing agreements, NeuPro-M NPU selection by a platform company, RealSpace Elevate launch). No explicit forward guidance is provided, limiting conviction on magnitude/duration.
Market effects
Supports the Smart Edge and IP licensing narrative, suggesting demand strength for AI NPUs and connectivity IP among device and platform customers.
Limited direct regional read-through; mentions customers across the U.S., Europe, China, and Asia-Pacific.
Signals ongoing global design-win activity for edge AI and wireless connectivity IP, relevant to semiconductor IP peers.
Counterpoint
Royalty revenues were only up 1% YoY, so the headline growth may be more licensing-driven than broad-based end-market strength.
Key entities
- public_companyCEVA, Inc.
Licensor of silicon and software IP for the Smart Edge; reported Q2 2026 revenue, licensing momentum, and margin improvement.
- executiveAmir Panush
CEO quoted on licensing growth and an AI customer base expansion via a new agreement.
- executiveYaniv Arieli
CFO quoted on licensing momentum, trailing-twelve-month growth, and operating leverage.
