Ceva, Inc. Announces Second Quarter 2025 Financial Results

Total revenue of $25.7 million, up 6% sequentially 4 licensing deals signed for NeuPro NPUs, marking pivotal moment for Ceva's AI business 2 strategic automotive IP agreements secured with U.S. companies for V2X and 4D radar Ceva-powered device shipments of 488 million units in the quarter, including record cellular IoT and Wi-Fi 6 shipments Surpassed 20 billion Ceva-powered device milestone, underscoring technology leadership and deep industry partnerships for more than two decades Repurchased 300,000 shares of Ceva stock for approximately $6.2 million during the quarter , /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced its financial results for the second quarter ended June 30, 2025. Ceva, Inc. reported Q2 2025 revenue of $25.7m and non-GAAP diluted EPS of $0.07. 13 license agreements were concluded in the quarter, including 4 AI deals for the NeuPro product line and 2 strategic automotive IP agreements with U.S. companies. Ceva-powered device shipments were 488m units in the quarter, including record cellular IoT and Wi-Fi 6 shipments. For more information and highlights, view the infographic. Total revenue for the second quarter of 2025 was $25.7 million, compared to $28.4 million reported for the second quarter of 2024. Licensing and related revenue for the second quarter of 2025 was $15.0 million, compared to $17.3 million reported for the same quarter a year ago. Royalty revenue for the second quarter of 2025 was $10.7 million, compared to $11.2 million reported for the second quarter of 2024. Amir Panush, Chief Executive Officer of Ceva, commented: "We are pleased by the second quarter results, driven by expanded AI licensing deals and good execution across our 3 pillars use cases – connect, sense and infer – coupled with a sequential growth in royalties. Our AI business continues to scale, with four new NPU agreements signed during the quarter - marking a pivotal moment in customer adoption and underscoring the growing demand for our industry-leading edge AI technologies. These wins, along with reaching 20 billion Ceva-powered devices shipped milestone, reinforce Ceva's position as the leader in wireless connectivity IP and as a trusted partner for the smart edge era. Our business is well-positioned to deliver sequential and year-over-year growth in the second half of this year." During the quarter, 13 IP licensing agreements were concluded, targeting a wide range of end markets and applications, including edge AI NPUs for consumer devices and communications acceleration in cloud infrastructure, vehicle-2-everything (V2X) communications and 4D radar for automotive, Bluetooth for industrial and consumer devices and spatial audio for consumer earbuds and headsets. Five of the deals signed were with first-time customers and four of the deals were with OEM customers.GAAP gross margin for the second quarter of 2025 was 86%, as compared to 90% in the second quarter of 2024. GAAP operating loss for the second quarter of 2025 was $4.5 million, as compared to a GAAP operating loss of $0.04 million for the same period in 2024. GAAP net loss for the second quarter of 2025 was $3.7 million, as compared to a GAAP net loss of $0.3 million reported for the same period in 2024. GAAP diluted loss per share for the second quarter of 2025 was $0.15, as compared to GAAP diluted loss per share of $0.01 for the same period in 2024.Non-GAAP gross margin for the second quarter of 2025 was 87%, as compared to 91% for the same period in 2024. Non-GAAP operating income for the second quarter of 2025 was $0.8 million, as compared to non-GAAP operating income of $4.4 million reported for the second quarter of 2024. Non-GAAP net income and diluted income per share for the second quarter of 2025 were $1.8 million and $0.07, respectively, compared with non-GAAP net income and diluted income per share of $4.2 million and $0.17, respectively, reported for the second quarter of 2024. Yaniv Arieli, Chief Financial Officer of Ceva, added: "Demand for our AI NPUs underpinned our licensing business in the quarter, with total licensing revenue exceeding $15 million for the fifth consecutive quarter. In royalties, consumer IoT shipments continued to grow, supported by record highs in cellular IoT and Wi-Fi 6. We remain focused on disciplined expense management and delivering improved profitability. In addition, we were active in our share repurchase program during the quarter, buying back 300,000 shares for approximately $6.2 million."Ceva Conference CallOn August 11, 2025, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.The conference call will be available via the following dial in numbers: U.S. Participants : Dial 1-844-435-0316 (Access Code : Ceva) International Participants: Dial +1-412-317-6365 (Access Code: Ceva) The conference call will also be available live via webcast at the following link: https://app.webinar.net/QYyg6d46Eeb. Please go to the web site at least fifteen minutes prior to the call to register.For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 1439858) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 18, 2025. The replay will also be available at Ceva's web site at www.ceva-ip.com.Forward Looking StatementsThis press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements the continued scaling of our AI business, Ceva's positioning as a leader in wireless connectivity IP and a trusted partner for the smart edge era, and expectations regarding sequential growth for the second half of the year. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance; Ceva's ability to meet changing needs of end-users and evolving market demands; the cyclical nature of and general economic conditions in the semiconductor industry; Ceva's ability to diversify its royalty streams and license revenues; Ceva's ability to continue to generate significant revenues from the handset baseband market and to penetrate new markets; instability and disruptions related to the ongoing Israel-Gaza conflict; and general market conditions and other risks relating to Ceva's business, including, but not limited to, those that are described from time to time in our SEC filings. Ceva assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.Non-GAAP Financial MeasuresNon-GAAP gross margin for the second quarters of 2025 and 2024 excluded: (a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired intangibles of $0.1 million.Non-GAAP operating income for the second quarter of 2025 excluded: (a) equity-based compensation expenses of $4.9 million, (b) the impact of the amortization of acquired intangibles of $0.2 million and (c) $0.1 million of costs associated with asset acquisition. Non-GAAP operating income for the second quarter of 2024 excluded: (a) equity-based compensation expenses of $3.9 million, (b) the impact of the amortization of acquired intangibles of $0.3 million and (c) $0.3 million of costs associated with asset acquisition.Non-GAAP net income and diluted income per share for the second quarter of 2025 excluded: (a) equity-based compensation expenses of $4.9 million, (b) the impact of the amortization of acquired intangibles of $0.2 million, (c) $0.1 million of costs associated with asset acquisition and (d) $0.2 million loss associated with the remeasurement of marketable equity securities. Non-GAAP net income and diluted income per share for the second quarter of 2024 excluded: (a) equity-based compensation expenses of $3.9 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.3 million of costs associated with asset acquisition and (d) $0.1 million loss associated with the remeasurement of marketable equity securities.About Ceva, Inc.At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today's most advanced smart edge products. From wireless connectivity IPs (Bluetooth, Wi-Fi, UWB and 5G platform IP), to scalable Edge AI NPU IPs and sensor fusion solutions, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple – to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 20 billion of the world's most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.Our headquarters are in Rockville, Maryland with a global customer base supported by operations worldwide. Our employees are among the leading experts in their areas of specialty, consistently solving the most complex design challenges, enabling our customers to bring innovative smart edge products to market.Ceva is committed to being a responsible and respected global corporate citizen and a more sustainable company in the countries where we have operations and employees. We adhere to our Code of Business Conduct and Ethics and emphasize and focus on environmental controls, resource conservation and recycling and the welfare of our employees.Ceva: Powering the Smart Edge™Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram. Ceva, Inc. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS – U.S. GAAP U.S. dollars in thousands, except per share data Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited Revenues: Licensing and related revenues $ 15,022 $ 17,278 $ 30,064 $ 28,692 Royalties 10,656 11,159 19,859 21,817 Total revenues 25,678 28,437 49,923 50,509 Cost of revenues 3,549 2,933 7,036 5,436 Gross profit 22,129 25,504 42,887 45,073 Operating expenses: Research and development, net 18,758 18,758 36,367 36,749 Sales and marketing 3,322 3,095 6,771 5,911 General and administrative 4,381 3,537 8,314 7,109 Amortization of intangible assets 150 149 299 299 Total operating expenses 26,611 25,539 51,751 50,068 Operating loss (4,482) (35) (8,864) (4,995) Financial income, net 2,121 1,406 4,221 2,663 Revaluation of marketable equity securities (208) (58) (262) (118) Income (loss) before taxes on income (2,569) 1,313 (4,905) (2,450) Income tax expense 1,135 1,604 2,126 3,289 Net loss $ (3,704) $ (291) $ (7,031) $ (5,739) Basic and diluted net loss per share $ (0.15) $ (0.01) $ (0.30) $ (0.24) Weighted-average shares used to compute net loss per share (in thousands): Basic and diluted 23,898 23,628 23,832 23,568 Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures U.S. Dollars in thousands, except per share amounts Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP net loss $ (3,704) $ (291) $ (7,031) $ (5,739) Equity-based compensation expense included in cost of revenues 166 191 325 394 Equity-based compensation expense included in research and development expenses 2,673 2,438 5,139 4,445 Equity-based compensation expense included in sales and marketing expenses 598 451 1,164 816 Equity-based compensation expense included in general and administrative expenses 1,465 820 2,597 1,816 Amortization of intangible assets related to acquisition of businesses 209 278 417 556 Costs associated with asset acquisition 144 252 288 532 Loss associated with the remeasurement of marketable equity securities 208 58 262 118 Non-GAAP net income $ 1,759 $ 4,197 $ 3,161 $ 2,938 GAAP weighted-average number of Common Stock used in computation of diluted net loss and loss per share (in thousands) 23,898 23,628 23,832 23,568 Weighted-average number of shares related to outstanding stock-based awards (in thousands) 1,763 1,482 1,690 1,421 Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands) 25,661 25,110 25,522 24,989 GAAP diluted loss per share $ (0.15) $ (0.01) $ (0.30) $ (0.24) Equity-based compensation expense $ 0.19 $ 0.16 $ 0.38 $ 0.32 Amortization of intangible assets related to acquisition of businesses $ 0.01 $ 0.01 $ 0.02 $ 0.02 Costs associated with asset acquisition $ 0.01 $ 0.01 $ 0.01 $ 0.02 Loss associated with the remeasurement of marketable equity securities $ 0.01 $ 0.00 $ 0.01 $ 0.00 Non-GAAP diluted earnings per share $ 0.07 $ 0.17 $ 0.12 $ 0.12 Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP Operating loss $ (4,482) $ (35) $ (8,864) $ (4,995) Equity-based compensation expense included in cost of revenues 166 191 325 394 Equity-based compensation expense included in research and development expenses 2,673 2,438 5,139 4,445 Equity-based compensation expense included in sales and marketing expenses 598 451 1,164 816 Equity-based compensation expense included in general and administrative expenses 1,465 820 2,597 1,816 Amortization of intangible assets related to acquisition of businesses 209 278 417 556 Costs associated with asset acquisition 144 252 288 532 Total non-GAAP Operating Income $ 773 $ 4,395 $ 1,066 $ 3,564 Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP Gross Profit $ 22,129 $ 25,504 $ 42,887 $ 45,073 GAAP Gross Margin 86 % 90 % 86 % 89 % Equity-based compensation expense included in cost of revenues 166 191 325 394 Amortization of intangible assets related to acquisition of businesses 59 129 118 257 Total Non-GAAP Gross profit 22,354 25,824 43,330 45,724 Non-GAAP Gross Margin 87 % 91 % 87 % 91 % Ceva, Inc. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in thousands) June 30, December 31, 2025 2024 (*) Unaudited Unaudited ASSETS Current assets: Cash and cash equivalents $ 29,082 $ 18,498 Marketable securities and short-term bank deposits 128,422 145,146 Trade receivables, net 11,832 15,969 Unbilled receivables 24,851 21,240 Prepaid expenses and other current assets 14,621 15,488 Total current assets 208,808 216,341 Long-term assets: Severance pay fund 7,864 7,161 Deferred tax assets, net 1,630 1,456 Property and equipment, net 6,484 6,877 Operating lease right-of-use assets 4,645 5,811 Investment in marketable equity securities 50 312 Goodwill 58,308 58,308 Intangible assets, net 1,460 1,877 Other long-term assets 13,593 10,805 Total assets $ 302,842 $ 308,948 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade payables $ 1,771 $ 1,125 Deferred revenues 3,212 3,599 Accrued expenses and other payables 17,749 23,207 Operating lease liabilities 1,610 2,598 Total current liabilities 24,342 30,529 Long-term liabilities: Accrued severance pay 8,155 7,365 Operating lease liabilities 2,755 2,963 Other accrued liabilities 1,698 1,535 Total liabilities 36,950 42,392 Stockholders' equity: Common stock 24 24 Additional paid in-capital 267,743 259,891 Treasury stock (5,874) (3,222) Accumulated other comprehensive income (loss) 344 (1,330) Retained earnings 3,655 11,193 Total stockholders' equity 265,892 266,556 Total liabilities and stockholders' equity $ 302,842 $ 308,948 (*) Derived from audited financial statements. 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Ceva, Inc. Announces Second Quarter 2025 Financial Results

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