Earnings Releases·Nov 9, 2026, 7:07 AM ET

Ceva, Inc. — Third Quarter 2026 Earnings Summary

Total revenue rose 2% YoY to $29.1 million, driven by a 3% YoY and 18% sequential increase in royalty revenues to $12.7 million, though GAAP gross margin declined to 85% from 88% in Q3 2025.
Non-GAAP net income improved to $3.8 million ($0.13 EPS) compared to $2.7 million ($0.11 EPS) in the prior year period, while GAAP operating loss widened to $3.5 million from $2.1 million.
Management expects a strong Q4, citing a significant multi-year connectivity agreement signed early in the quarter and a modem ramp at a major U.S. customer creating royalty growth opportunities through 2027.
AI licensing revenues reached a record level, exceeding 35% of total licensing and related revenues, supported by 10 new IP agreements and 623 million Ceva-powered devices shipped, matching an all-time quarterly record.
Cash and cash equivalents decreased to $29.6 million as of September 30, 2026, from $40.6 million at year-end 2025, while royalty growth was partially offset by memory-related softness in compute-intensive consumer devices.