Ceva, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues reached $29.0 million, an increase of 13% year-over-year compared to Q2 2025.
• Licensing and related revenues were $18.2 million, up 21% year-over-year, marking the highest level in three years.
• Royalty revenues were $10.8 million, up 1% year-over-year and 17% sequentially.
• GAAP gross margin was 87%, compared to 86% in the prior year period.
• Non-GAAP gross margin was 88%, compared to 87% in the prior year period.
• GAAP operating loss was $2.1 million, narrowing from a $4.5 million loss in the prior year period.
• Non-GAAP operating income was $3.1 million, an improvement from $0.8 million in the prior year period, resulting in a non-GAAP operating margin of 11% versus 3% previously.
• GAAP net loss was $2.9 million, compared to a $3.7 million loss in the prior year period.
• Non-GAAP net income was $2.3 million, up from $1.8 million in the prior year period.
• GAAP diluted loss per share was $0.10, compared to $0.15 in the prior year period.
• Non-GAAP diluted earnings per share were $0.08, up from $0.07 in the prior year period.
• Trailing-twelve-month licensing and related revenues increased 13% to $69.6 million.
• Cash and cash equivalents were $44.3 million as of June 30, 2026, compared to $40.6 million as of December 31, 2025.
• Deferred revenues were $2.7 million as of June 30, 2026, down from $3.5 million as of December 31, 2025.
• Total assets were $391.9 million as of June 30, 2026, compared to $388.3 million as of December 31, 2025.

Business Segments and Product Lines

• 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, expanding Ceva's AI licensing business into the platform customer category.
• 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.
• Additional connectivity agreements were signed with customers across the U.S., Europe, China, and the broader Asia-Pacific.
• Ceva launched RealSpace Elevate, extending its Microsoft-certified spatial audio technology into the PC gaming market.
• Royalty revenue growth was supported by strong wireless connectivity shipments, a continued ramp of automotive AI programs, and improving smartphone royalties.

Management Commentary and Tone

• CEO Amir Panush described the quarter as "strong," attributing growth to the strategic importance of silicon and software IP as customers accelerate complex AI and connectivity technologies for Physical AI.
• CFO Yaniv Arieli highlighted sustained momentum in licensing revenues and improving royalty trends, noting that disciplined expense management drove the expansion of the non-GAAP operating margin.
• Management emphasized the operating leverage inherent in the business model, citing the combination of revenue growth and expense discipline.

Other Key Points

• Ceva reported more than 21 billion devices shipped and over 400 customers worldwide as of the reporting period.
• The company announced a conference call for August 10, 2026, at 8:30 a.m. Eastern Time to discuss results, with dial-in and webcast options available.
• A replay of the conference call will be available via phone and website until 9:00 a.m. Eastern Time on August 17, 2026.
• The press release includes forward-looking statements regarding future growth, market demand, and financial forecasts, accompanied by a standard risk factor disclaimer regarding competition, market acceptance, geopolitical risks, and trade measures.