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Ceva, Inc. Announces Third Quarter 2025 Financial Results

1. Q3 2025 revenue of $28.4 million, up 11% sequentially. 2. AI licensing made up one-third of licensing revenue, marking significant growth. 3. Strategic licensing deal with Microchip enhances Ceva's AI capabilities. 4. 579 million device shipments, high demand for wireless IoT and Wi-Fi 6. 5. Company active in share repurchase program, showing commitment to shareholder value.

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Why Bullish?

Ceva's strong revenue growth and AI licensing success could drive investor confidence and stock price. Historical cases show similar trends led to price increases for tech firms securing major contracts.

How important is it?

The strategic partnerships and growing revenues position Ceva favorably in a competitive sector, thus highly relevant for stock price movements.

Why Long Term?

The newly signed multi-year agreements and growing AI business suggest sustainable revenue streams. Long-term trends in AI and IoT markets indicate a positive trajectory for Ceva's business.

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Total revenue of $28.4 million, up 11% sequentially and 4% year-over-year AI processor licensing contributed approximately one-third of licensing revenue in the second and third quarters, marking a major milestone for Ceva's AI business Strategic NeuPro NPU portfolio license signed with Microchip; three new AI DSP agreements broaden reach in consumer and automotive Ceva-powered device shipments reached 579 million units, including record wireless IoT shipments – led by new highs in Wi-Fi 6 and cellular IoT – reinforcing leadership in wireless IP , /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP for the Smart Edge, today announced its financial results for the third quarter ended September 30, 2025. Ceva, Inc. reported Q3 2025 revenue of $28.4m and non-GAAP diluted EPS of $0.11. AI processor licensing contributed approximately one-third of licensing revenue in the second and third quarters, marking a major milestone for Ceva’s AI business. Ceva-powered device shipments were 579m 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 third quarter of 2025 was $28.4 million, compared to $27.2 million reported for the third quarter of 2024. Licensing and related revenue for the third quarter of 2025 was $16.0 million, compared to $15.6 million reported for the same quarter a year ago. Royalty revenue for the third quarter of 2025 was $12.4 million, compared to $11.6 million reported for the third quarter of 2024. Amir Panush, Chief Executive Officer of Ceva, commented: "We exceeded expectations on both revenue and non-GAAP diluted income per share this quarter, driven by strong licensing execution and healthy royalty growth. In licensing, we secured several strategic agreements that reinforce our leadership in wireless connectivity and accelerate our expansion in AI. The headline win was a portfolio license for our full NeuPro NPU family with Microchip, one of the world's leading microcontroller and connectivity providers. We also signed additional AI DSP agreements and secured connectivity design wins for Wi-Fi 7 and Bluetooth High Data Throughput IP. With AI processor licensing now contributing meaningfully and wireless IoT shipments at record highs, Ceva is well positioned for sustainable growth as a foundational technology provider of intelligent, connected devices - leading the way in enabling Physical AI at the edge." During the quarter, twelve IP licensing agreements were completed, targeting a wide range of end markets and applications, including NPU for AI across industrial, consumer, automotive and other end markets, AI DSP for automotive ADAS and home appliances, communications DSPs for vehicle-2-everything (V2X) and satellite, and Bluetooth and Wi-Fi connectivity for a wide range of consumer, wearables, smart home and industrial smart edge devices. One of the deals signed was with a first-time customer and one was with a major worldwide consumer OEM.GAAP gross margin for the third quarter of 2025 was 88%, compared to 85% in the third quarter of 2024. GAAP operating loss for the third quarter of 2025 was $2.1 million, as compared to a GAAP operating loss of $2.6 million for the same period in 2024. GAAP net loss for the third quarter of 2025 was $2.5 million, as compared to a GAAP net loss of $1.3 million reported for the same period in 2024. GAAP diluted loss per share for the third quarter of 2025 was $0.10, as compared to GAAP diluted loss per share of $0.06 for the same period in 2024.Non-GAAP gross margin for the third quarter of 2025 was 89%, as compared to 87% for the same period in 2024. Non-GAAP operating income for the third quarter of 2025 was $3.1 million, as compared to non-GAAP operating income of $2.1 million reported for the third quarter of 2024. Non-GAAP net income and diluted income per share for the third quarter of 2025 were $2.7 million and $0.11, respectively, compared with non-GAAP net income and diluted income per share of $3.4 million and $0.14, respectively, reported for the third quarter of 2024. Yaniv Arieli, Chief Financial Officer of Ceva, added: "AI processor licensing contributed approximately one-third of licensing revenue in both the second and third quarters of 2025, marking a major milestone for our AI business. These wins are multi-year agreements that we believe provide good visibility into future revenue streams. Royalty revenue grew 16% sequentially and 6% year-over-year, driven by record wireless IoT shipments, including new highs in Wi-Fi 6 and cellular IoT. We remain focused on disciplined expense management and profitability improvement. In addition, we were active in our share repurchase program, buying back 40,295 shares for approximately $1 million in the quarter, and approximately $7.2 million year-to-date." Ceva Conference CallOn November 10, 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/ePpLk12BRaDhttps://app.webinar.net/GvAklQElMmj. 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: 3968730) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 17, 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 about Ceva's positioning for sustainable growth and to serve as a foundational technology provider for intelligent, connected devices, licensing agreement wins during the second and third quarters of 2025 providing good visibility into future revenue streams, and Ceva's focus on expense management and profitability improvement. 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 lengthy sales cycle for IP and related solutions; Ceva's ability to diversify royalty streams and license revenues; geopolitical risks and instability, including the impact of tariffs and other trade measures and potential disruptions related to ongoing conflicts in the Middle East; and general market conditions and other risks relating to Ceva's business and industry, 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 third 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 third 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 third quarter of 2024 excluded: (a) equity-based compensation expenses of $4.2 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 third 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 net income and diluted income per share for the third quarter of 2024 excluded: (a) equity-based compensation expenses of $4.2 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.3 million of costs associated with asset acquisitions and (d) Income of $0.02 million 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 Bluetooth, Wi-Fi, UWB and 5G platform IP for ubiquitous, robust communications, to scalable Edge AI NPU IPs, sensor fusion processors and embedded application software that make devices smarter, 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 Nine months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited Revenues: Licensing and related revenues $  16,028 $  15,574 $  46,092 $  44,266 Royalties 12,356 11,633 32,215 33,450 Total revenues 28,384 27,207 78,307 77,716 Cost of revenues 3,392 3,961 10,428 9,397 Gross profit 24,992 23,246 67,879 68,319 Operating expenses: Research and development, net 19,532 17,990 55,899 54,739 Sales and marketing 3,012 3,088 9,783 8,999 General and administrative 4,383 4,642 12,697 11,751 Amortization of intangible assets 149 150 448 449 Total operating expenses 27,076 25,870 78,827 75,938 Operating loss (2,084) (2,624) (10,948) (7,619) Financial income, net 1,245 2,299 5,466 4,962 Income (Loss) associated with the remeasurement of marketable equity securities 1 21 (261) (97) Loss before taxes on income (838) (304) (5,743) (2,754) Income tax expense 1,671 1,007 3,797 4,296 Net loss (2,509) (1,311) (9,540) (7,050) Basic and diluted net loss per share $   (0.10) $   (0.06) $   (0.40) $   (0.30) Weighted-average shares used to compute net loss per share (in thousands): Basic and diluted 23,942 23,678 23,869 23,605 Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures U.S. Dollars in thousands, except per share amounts Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP net loss $  (2,509) $  (1,311) $  (9,540) $  (7,050) Equity-based compensation expense included in cost of revenues 168 176 493 570 Equity-based compensation expense included in research and development expenses 2,639 2,421 7,778 6,866 Equity-based compensation expense included in sales and marketing expenses 571 491 1,735 1,307 Equity-based compensation expense included in general and administrative expenses 1,495 1,120 4,092 2,936 Amortization of intangible assets related to acquisition of businesses 208 279 625 835 Costs associated with asset acquisition 145 251 433 783 Loss (Income) associated with the remeasurement of marketable equity securities (1) (21) 261 97 Non-GAAP net income $  2,716 $  3,406 $  5,877 $  6,344 GAAP weighted-average number of Common Stock used in computation of diluted net loss per share (in thousands) 23,942 23,678 23,869 23,605 Weighted-average number of shares related to outstanding stock-based awards (in thousands) 1,763 1,544 1,714 1,462 Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands) 25,705 25,222 25,583 25,067 GAAP diluted loss per share $  (0.10) $  (0.06) $  (0.40) $  (0.30) Equity-based compensation expense $  0.19 $  0.18 $  0.57 $  0.48 Amortization of intangible assets related to acquisition of businesses $  0.01 $  0.01 $  0.03 $  0.04 Costs associated with asset acquisition $  0.01 $  0.01 $  0.02 $  0.03 Loss associated with the remeasurement of marketable equity securities $  0.00 $  0.00 $  0.01 $  0.00 Non-GAAP diluted earnings per share $  0.11 $  0.14 $  0.23 $  0.25 Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP Operating loss $  (2,084) $  (2,624) $  (10,948) $  (7,619) Equity-based compensation expense included in cost of revenues 168 176 493 570 Equity-based compensation expense included in research and development expenses                2,639 2,421 7,778 6,866 Equity-based compensation expense included in sales and marketing expenses 571 491 1,735 1,307 Equity-based compensation expense included in general and administrative expenses 1,495 1,120 4,092 2,936 Amortization of intangible assets related to acquisition of businesses 208 279 625 835 Costs associated with asset acquisition 145 251 433 783 Total non-GAAP Operating Income $  3,142 $  2,114 $  4,208 $  5,678 Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP Gross Profit $  24,992 $  23,246 $  67,879 $  68,319 GAAP Gross Margin 88 % 85 % 87 % 88 % Equity-based compensation expense included in cost of revenues 168 176 493 570 Amortization of intangible assets related to acquisition of businesses                                              59 129 177 386 Total Non-GAAP Gross profit 25,219 23,551 68,549 69,275 Non-GAAP Gross Margin 89 % 87 % 88 % 89 % Ceva, Inc. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in thousands) September 30, December 31, 2025 2024 (*) Unaudited Unaudited ASSETS Current assets: Cash and cash equivalents $  17,270 $  18,498 Marketable securities and short-term bank deposits 134,788 145,146 Trade receivables, net 14,579 15,969 Unbilled receivables 35,120 21,240 Prepaid expenses and other current assets 12,649 15,488 Total current assets 214,406 216,341 Long-term assets: Severance pay fund 8,021 7,161 Deferred tax assets, net 1,402 1,456 Property and equipment, net 6,008 6,877 Operating lease right-of-use assets 3,962 5,811 Investment in marketable equity securities 51 312 Goodwill 58,308 58,308 Intangible assets, net 1,252 1,877 Other long-term assets 12,604 10,805 Total assets $ 306,014 $  308,948 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade payables $  1,782 $  1,125 Deferred revenues 3,052 3,599 Accrued expenses and other payables 18,639 23,207 Operating lease liabilities 1,235 2,598 Total current liabilities 24,708 30,529 Long-term liabilities:      Accrued severance pay 8,318 7,365 Operating lease liabilities 2,543 2,963 Other accrued liabilities 1,726 1,535 Total liabilities 37,295 42,392 Stockholders' equity: Common stock 24 24 Additional paid in-capital 269,944 259,891 Treasury stock (2,553) (3,222) Accumulated other comprehensive income (loss) 201 (1,330) Retained earnings 1,103 11,193 Total stockholders' equity 268,719 266,556 Total liabilities and stockholders' equity $ 306,014 $  308,948 (*) Derived from audited financial statements. SOURCE Ceva, Inc.

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