Ceva, Inc. Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Ceva (NASDAQ: CEVA) reported first quarter 2026 revenues of $27.0 million, up 11% year-over-year. Licensing and related revenues rose 18% to $17.8 million, the highest in three years, while royalty revenues were $9.2 million, with smart edge royalties up 8%.
AI contributed over 20% of licensing revenues, supported by automotive wins with Renesas and an NXP collaboration. GAAP gross margin was 86%; GAAP net loss widened to $4.5 million (loss per share $0.16). Non-GAAP net income was $1.1 million, or $0.04 per diluted share.
AI-generated analysis. Not financial advice.
Positive
- Total Q1 2026 revenue $27.0M, up 11% year-over-year
- Licensing and related revenue $17.8M, up 18% and three-year high
- Smart edge royalties up 8% year-over-year on record Wi‑Fi shipments
- AI exceeded 20% of licensing revenue with key automotive milestones
- Signed 14 IP licensing agreements across connectivity, AI and satellite
- Non-GAAP operating income improved to $0.5M from $0.3M
Negative
- GAAP operating loss increased to $5.1M from $4.4M
- GAAP net loss widened to $4.5M from $3.3M year-over-year
- GAAP diluted loss per share rose to $0.16 from $0.14
- Non-GAAP net income declined to $1.1M from $1.4M
- Non-GAAP EPS decreased to $0.04 from $0.06
- Weaker U.S. dollar increasing reported expense levels
Key Figures
Market Reality Check
Peers on Argus
CEVA up 9.64% with several chip peers also strong: momentum scanner flags 4 names (e.g., NVEC +17.43%, POET +7.76%) all moving up, suggesting a supportive semiconductor backdrop.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q4/FY25 earnings | Positive | -9.8% | Record Q4 revenue and major NPU licensing plus strong full-year growth. |
| Nov 10 | Q3 2025 earnings | Positive | -0.6% | Q3 revenue growth with solid licensing and royalties and AI-focused deals. |
| Aug 11 | Q2 2025 earnings | Positive | -1.8% | Q2 revenue growth sequentially, new NPU and automotive IP wins, record shipments. |
| May 07 | Q1 2025 earnings | Positive | -20.2% | Double-digit revenue growth, key Wi‑Fi 7 and edge AI wins, but lower royalties. |
| Feb 13 | Q4/FY24 earnings | Positive | +10.2% | Strong Q4 and full-year revenue and royalties with record device shipments. |
Recent earnings releases often saw negative next-day moves despite generally positive operating metrics, indicating a history of post-earnings selling pressure.
Over the last five earnings events from Feb 13, 2025 through Feb 17, 2026, Ceva reported steady revenue growth, record shipments, and expanding AI and wireless IP licensing. Yet four of these events produced negative 24-hour price reactions, including a -20.17% move on Q1 2025 results and -9.79% after Q4 2025. Only the strong Q4 2024 report on Feb 13, 2025 generated a clear positive reaction of +10.21%. The current positive move contrasts with that usual pattern.
Historical Comparison
In the past five earnings releases, CEVA’s average next-day move was -4.42%. Today’s +9.64% reaction to Q1 2026 results stands out as a bullish outlier versus that history.
Earnings releases from late 2024 through early 2026 show growing revenue, record device shipments, and expanding AI and connectivity IP deals, culminating in Q1 2026’s stronger licensing mix and rising AI contribution.
Market Pulse Summary
This announcement highlighted Q1 2026 revenue of $27.0M, with licensing up 18% year over year and AI contributing more than 20% of licensing and related revenue. Management emphasized integrated, system‑level IP, record Wi‑Fi shipments, and growing automotive AI deployments. At the same time, GAAP operating loss widened to $5.1M and non‑GAAP EPS slipped to $0.04. Investors may watch future quarters for sustained royalty growth, AI mix, and progress toward consistent profitability.
Key Terms
edge ai technical
ultra-wideband technical
5g ntn technical
non-gaap financial
gaap financial
software-defined vehicle technical
AI-generated analysis. Not financial advice.
Highlights strong licensing growth driven by integrated solutions and accelerating edge AI adoption
First Quarter Highlights: *
- Delivered total revenues of
$27.0 million 11% year-over-year - Licensing and related revenues of
$17.8 million 18% year-over-year and the highest in three years - Royalty revenues of
$9.2 million 8% year-over-year, driven by record shipments in Wi-Fi, and strong contribution from cellular IoT, 5G infrastructure and automotive AI - Signed 14 IP licensing agreements, including several multi-technology engagements with existing customers
- Secured a major customer win for Bluetooth High Data Throughput (HDT) solution, including Ceva's internally developed RF technology, demonstrating its system-level connectivity strategy
- Expanded customer engagements in 5G NTN and Ultra-Wideband, increasing value per design
- AI represented more than
20% of licensing and related revenues, with strong growth and key production milestones, including the Renesas R-Car V4H platform entering the 2026 Toyota RAV4, alongside a collaboration with NXP for its latest software-defined vehicle processors
*Unless otherwise stated, all comparisons are to first quarter 2025.
Amir Panush, Chief Executive Officer of Ceva, commented, "We delivered a strong start to 2026, highlighted by our highest licensing and related revenues in three years and continued momentum across our connectivity and AI portfolios. Importantly, this quarter reflects the successful execution of our strategy to expand beyond discrete IP into more integrated, system-level solutions. A major Bluetooth HDT licensing agreement, including RF, alongside our expansion in 5G NTN and Ultra-Wideband, demonstrates how we are increasing our value per design and deepening customer engagement. We also saw encouraging trends in royalties, with continued strength across our smart edge markets, partially offset by softness in smartphones."
"In AI, our growth strategy and relentless focus on market-leading innovation are translating into production, with our technology integrated into leading automotive platforms and entering mass-volume production. With AI contributing over
Business and Market Highlights
During the first quarter, Ceva signed 14 IP licensing agreements across connectivity, AI, and satellite communications, including several multi-technology engagements aligned with its strategy to deliver more integrated, system-level solutions.
The company secured a major full-stack Bluetooth HDT solution license, marking a key milestone in expanding value per design and increasing royalty contribution, while helping customers reduce integration complexity and accelerate time-to-market. Additional wins included a Wi-Fi 7 design targeting consumer IoT, a Wi-Fi 6 / Bluetooth combo engagement with a leading edge-AI SoC platform provider, and multiple Bluetooth and Wi-Fi agreements.
Ceva also expanded into new connectivity domains, introducing its PentaG-NTN platform and progressing a satellite customer engagement to a more integrated baseband solution. In Ultra-Wideband, the company launched its next-generation platform and secured a new customer as adoption accelerates across industrial and automotive applications.
In AI, Ceva continued to expand its footprint with multiple licensing agreements and achieved a key production milestone, with its AI DSP and accelerator deployed in the Renesas R-Car V4H platform, now entering production in the 2026 Toyota RAV4. The company also announced a collaboration with NXP for its latest software-defined vehicle processors. AI represented more than
Across its markets, Ceva continues to see strong demand in IoT and AI-driven applications, with record Wi-Fi shipments and significant growth in cellular IoT. These trends, together with the shift toward more integrated, system-level solutions and increasing adoption of Bluetooth and Wi-Fi combo chips, are driving higher value per device and reinforcing the company's long-term royalty growth model.
Other first quarter financial data: *
- GAAP gross margin was
86% , in line with last year - GAAP operating loss was
$5.1 million $4.4 million - GAAP net loss was
$4.5 million $3.3 million - GAAP diluted loss per share was
$0.16 $0.14 - Non-GAAP gross margin was
87% , in line with last year - Non-GAAP operating income was
$0.5 million $0.3 million - Non-GAAP net income and non-GAAP diluted earnings per share were
$1.1 million $0.04 $1.4 million $0.06
*Unless otherwise stated, all comparisons are to first quarter 2025.
Yaniv Arieli, Chief Financial Officer of Ceva, added, "Our first quarter results reflect strong licensing execution and the continued progression toward higher-value, multi-technology engagements. This shift is driving improved economics per deal and strengthening the long-term royalty potential of our business. We also continue to see encouraging trends across our diversified end markets, particularly in IoT and AI-driven applications. We continue to manage the impact of a weaker
Ceva Conference Call
On May 11, 2026, 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/N8PRLk4oljM. https://app.webinar.net/ePpLk12BRaDhttps://app.webinar.net/GvAklQElMmjPlease 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 +1 855-669-9658 or +1 412-317-0088 (access code: 4033535) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 18, 2026. The replay will also be available at Ceva's web site at www.ceva-ip.com.
Forward-Looking Statements
This 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 future growth and to serve as a foundational technology provider for intelligent, connected devices, licensing agreement wins, future industry demand, our market position for the future and future growth in the demand of our products, our forecast of financial measures for the following quarter and 2026, our long term targets and underlying assumptions, our future investments, expectations about future market, the success of our strategies and agreements, 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
About Ceva, Inc.
Ceva powers the Smart Edge, bridging the digital and physical worlds to bring AI-driven products to life. Our Ceva AI fabric portfolio of silicon and software IP enables devices to Connect, Sense, and Infer – the essential capabilities for the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi-Fi, and UWB connectivity to scalable Edge AI NPUs, AI DSPs, sensor fusion processors and embedded software, Ceva provides the foundational IP for devices that connect, understand their environment, and act in real time.
With more than 21 billion devices shipped and trusted by 400+ customers worldwide, Ceva is the backbone of today's most advanced smart edge products - from AI-infused wearables and IoT devices to autonomous vehicles and 5G infrastructure. Our differentiated solutions deliver seamless integration into existing design flows, total flexibility to combine solutions based on design needs and ultra–low–power performance in minimal silicon footprint, helping customers accelerate development, reduce risk, and bring innovative products to market faster. As technology evolves toward Physical AI, Ceva's IP portfolio lays the foundation for systems that are always connected, contextually aware, and capable of intelligent, real-time decision-making.
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 – | ||
Three months ended | ||
March 31, | ||
2026 | 2025 | |
Unaudited | Unaudited | |
Revenues: | ||
Licensing and related revenues | $ 17,820 | $ 15,042 |
Royalties | 9,204 | 9,203 |
Total revenues | 27,024 | 24,245 |
Cost of revenues | 3,729 | 3,487 |
Gross profit | 23,295 | 20,758 |
Operating expenses: | ||
Research and development, net | 19,837 | 17,609 |
Sales and marketing | 3,766 | 3,449 |
General and administrative | 4,660 | 3,933 |
Amortization of intangible assets | 117 | 149 |
Total operating expenses | 28,380 | 25,140 |
Operating loss | (5,085) | (4,382) |
Financial income, net | 1,877 | 2,100 |
Remeasurement of marketable equity securities | 64 | (54) |
Loss before taxes on income | (3,144) | (2,336) |
Income tax expense | 1,315 | 991 |
Net loss | $ (4,459) | $ (3,327) |
Basic and diluted net loss per share | $ (0.16) | $ (0.14) |
Weighted-average shares used to compute net loss per share (in thousands): | ||
Basic and diluted | 27,678 | 23,764 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||
Three months ended | ||
March 31, | ||
2026 | 2025 | |
Unaudited | Unaudited | |
GAAP net loss | $ (4,459) | $ (3,327) |
Equity-based compensation expense included in cost of revenues | 182 | 159 |
Equity-based compensation expense included in research and development expenses | 2,863 | 2,466 |
Equity-based compensation expense included in sales and marketing expenses | 717 | 566 |
Equity-based compensation expense included in general and administrative expenses | 1,610 | 1,132 |
Amortization of intangible assets related to acquisition of businesses | 176 | 208 |
Costs associated with asset acquisition | 61 | 144 |
Loss (income) associated with the remeasurement of marketable equity securities | (64) | 54 |
Non-GAAP net income | $ 1,086 | $ 1,402 |
GAAP weighted-average number of Common Stock used in computation of diluted net loss per share (in thousands) | 27,678 | 23,764 |
Weighted-average number of shares related to outstanding stock-based awards (in thousands) | 1,810 | 1,618 |
Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands) | 29,488 | 25,382 |
GAAP diluted loss per share | $ (0.16) | $ (0.14) |
Equity-based compensation expense | $ 0.19 | $ 0.18 |
Amortization of intangible assets related to acquisition of businesses | $ 0.01 | $ 0.01 |
Costs associated with asset acquisition | $ 0.00 | $ 0.01 |
Non-GAAP diluted earnings per share | $ 0.04 | $ 0.06 |
Three months ended | ||
March 31, | ||
2026 | 2025 | |
Unaudited | Unaudited | |
GAAP operating loss | $ (5,085) | $ (4,382) |
Equity-based compensation expense included in cost of revenues | 182 | 159 |
Equity-based compensation expense included in research and development expenses | 2,863 | 2,466 |
Equity-based compensation expense included in sales and marketing expenses | 717 | 566 |
Equity-based compensation expense included in general and administrative expenses | 1,610 | 1,132 |
Amortization of intangible assets related to acquisition of businesses | 176 | 208 |
Costs associated with asset acquisition | 61 | 144 |
Total non-GAAP operating income | $ 524 | $ 293 |
Three months ended | ||
March 31, | ||
2026 | 2025 | |
Unaudited | Unaudited | |
GAAP gross profit | $ 23,295 | $ 20,758 |
GAAP gross margin | 86 % | 86 % |
Equity-based compensation expense included in cost of revenues | 182 | 159 |
Amortization of intangible assets related to acquisition of businesses | 59 | 59 |
Total non-GAAP gross profit | 23,536 | 20,976 |
Non-GAAP gross margin | 87 % | 87 % |
Three months ended | ||
March 31, | ||
2026 | 2025 | |
Unaudited | Unaudited | |
GAAP operating expenses | 28,380 | 25,140 |
Equity-based compensation expense included in research and development expenses | (2,863) | (2,466) |
Equity-based compensation expense included in sales and marketing expenses | (717) | (566) |
Equity-based compensation expense included in general and administrative expenses | (1,610) | (1,132) |
Amortization of intangible assets related to acquisition of businesses | (117) | (149) |
Costs associated with asset acquisition | (61) | (144) |
Total non-GAAP operating expenses | $ 23,012 | $ 20,683 |
CEVA, INC. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS ( | |||
March 31, | December 31, | ||
2026 | 2025 (*) | ||
Unaudited | Unaudited | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 21,367 | $ 40,586 | |
Marketable securities and short-term bank deposits | 194,326 | 181,397 | |
Trade receivables, net | 17,737 | 19,495 | |
Unbilled receivables | 31,135 | 29,860 | |
Prepaid expenses and other current assets | 16,297 | 13,498 | |
Total current assets | 280,862 | 284,836 | |
Long-term assets: | |||
Severance pay fund | 7,225 | 7,530 | |
Deferred tax assets, net | 274 | 257 | |
Property and equipment, net | 9,010 | 7,054 | |
Operating lease right-of-use assets | 17,190 | 17,486 | |
Investment in marketable equity securities | 119 | 55 | |
Goodwill | 58,308 | 58,308 | |
Intangible assets, net | 868 | 1,044 | |
Other long-term assets | 14,370 | 11,686 | |
Total assets | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Trade payables | $ 2,388 | $ 2,418 | |
Deferred revenues | 2,968 | 3,496 | |
Accrued expenses and other payables | 19,224 | 21,026 | |
Operating lease liabilities | 2,794 | 1,743 | |
Total current liabilities | 27,374 | 28,683 | |
Long-term liabilities: | |||
Accrued severance pay | 7,428 | 7,690 | |
Operating lease liabilities | 14,083 | 14,388 | |
Other accrued liabilities | 1,158 | 1,037 | |
Total liabilities | 50,043 | 51,798 | |
Stockholders' equity: | |||
Common stock | 28 | 28 | |
Additional paid in-capital | 343,298 | 337,966 | |
Treasury stock | 0 | (1,591) | |
Accumulated other comprehensive income (loss) | (660) | 79 | |
Accumulated deficit | (4,483) | (24) | |
Total stockholders' equity | 338,183 | 336,458 | |
Total liabilities and stockholders' equity | |||
(*) Derived from audited financial statements. |
The Company believes that the presentation of non-GAAP measures in the press release is useful to investors in analyzing the results for the quarters ended March 31, 2026, and 2025 because the exclusion of the applicable expenses may provide a meaningful analysis of the Company's core operating results and comparison of quarterly results. Further, the Company believes it is useful for investors to understand how the expenses associated with the application of FASB ASC No. 718 are reflected in its statements of income. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP and are intended to provide additional insight into the Company's operations that, when viewed with its GAAP results and the accompanying reconciliation, offer a more complete understanding of factors and trends affecting the Company's business. The reconciliation of financial measures should not be viewed as a substitute for the Company's reported GAAP results.
A reconciliation of non-GAAP guidance to the corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to the Company's results computed in accordance with GAAP.
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SOURCE Ceva, Inc.