Second quarter 2026
Filed Aug 10, 2026Ceva 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.