Ceva, Inc. Announces Third Quarter 2026 Financial Results

Ceva expects fourth-quarter revenue and profitability strength as smartphone royalties step up and its licensing pipeline develops.

Rhea-AI Summary

Ceva (NASDAQ: CEVA) reported third-quarter 2026 revenue of $29.1 million, up 2% from the same quarter last year. Licensing and related revenue rose 2% to $16.3 million. Royalty revenue reached $12.7 million, up 3% year over year and 18% sequentially. Record AI licensing revenue accounted for more than 35% of licensing and related revenue.

The GAAP net loss narrowed to $2.3 million, or $0.08 per diluted share, from $2.5 million, or $0.10. However, gross margin fell to 85% from 88%, and the operating loss widened to $3.5 million from $2.1 million. Customers shipped 623 million Ceva-powered devices, matching the quarterly record. Ceva signed 10 intellectual-property licensing agreements, including six for AI and three with first-time customers. The company sees a multi-year smartphone royalty growth opportunity through 2027 and beyond as internally developed modems ramp at a major U.S. customer.

18 points · 0 major

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue rose 2% year over year to $29.1 million.
• Moderate pointRoyalty revenue reached $12.7 million, up 3% year over year and 18% sequentially.
• Moderate pointLicensing and related revenue increased 2% year over year to $16.3 million.
• Moderate pointGAAP net loss narrowed to $2.3 million, or $0.08 per diluted share, versus $2.5 million, or $0.10.
• Moderate pointThree highest-volume connectivity customers extended agreements for multiple years and added more Ceva intellectual property.
• Moderate pointA multi-year connectivity agreement was signed early in the fourth quarter after an expected third-quarter signing.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Smartphone royalties: Ceva sees a multi-year growth opportunity through 2027 and beyond from a major U.S. customer's modem ramp.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter outlook: Ceva expects revenue and profitability strength, supported by its licensing pipeline and higher smartphone royalties.
• Moderate pointNine-month revenue increased to $85.120 million from $78.307 million in the same 2025 period.

9 minor points

• Minor pointRecord AI licensing revenue accounted for more than 35% of licensing and related revenue.
• Minor point623 million customer device shipments matched the quarterly record, including record cellular IoT and Wi-Fi 6 shipments.
• Minor point10 licensing agreements included three first-time customers and six AI agreements, including a new AI infrastructure customer.
• Minor pointThird-quarter research and development expense fell to $18.128 million from $19.532 million a year earlier.
• Minor pointThird-quarter net financial income increased to $2.301 million from $1.245 million a year earlier.
• Minor pointThird-quarter income tax expense decreased to $1.070 million from $1.671 million a year earlier.
• Minor pointNine-month licensing revenue increased to $52.379 million from $46.092 million; royalties rose to $32.741 million from $32.215 million.
• Minor pointNine-month GAAP operating loss narrowed to $10.677 million from $10.948 million in the same 2025 period.
• Minor pointTotal liabilities decreased to $48.239 million at September 30, 2026, from $51.798 million at December 31, 2025.

Negative

• Moderate pointThird-quarter GAAP operating loss widened to $3.5 million from $2.1 million a year earlier.
• Moderate pointThird-quarter GAAP gross margin fell to 85% from 88% a year earlier.
• Minor pointMemory-related softness in compute-intensive consumer devices partially offset royalty growth.
• Minor pointConnectivity agreement timing slipped from an expected third-quarter signing to early in the fourth quarter.
• Minor pointThird-quarter sales and marketing expense rose to $3.935 million from $3.012 million a year earlier.

4 minor points

• Minor pointThird-quarter general and administrative expense rose to $6.154 million from $4.383 million a year earlier.
• Minor pointThird-quarter acquisition and deal-related costs rose to $893,000 from $145,000 a year earlier.
• Minor pointNine-month GAAP net loss widened to $9.670 million from $9.540 million; diluted loss per share narrowed to $0.35 from $0.40.
• Minor pointNine-month GAAP gross margin fell to 86% from 87% in the same 2025 period.

News Explained

For Q3 2026, Ceva reported non-GAAP net income of $3,768 thousand alongside a GAAP net loss of $2,301 thousand.

Alongside its third-quarter 2026 results, Ceva reports that a significant multi-year connectivity agreement it had expected in Q3 was signed early in Q4, moving the agreement to signed status.

For the quarter, non-GAAP net income was $3,768 thousand, while GAAP net loss was $2,301 thousand.

Ceva says its non-GAAP measures exclude specified expenses and are intended to supplement, not replace, GAAP results.

As of September 30, 2026, the balance sheet listed $29,608 thousand in cash and equivalents and $191,072 thousand in marketable securities and short-term bank deposits.

Key Figures

Total revenue: $29.1 million AI share of licensing revenue: More than 35% Royalty revenue: $12.7 million +5 more

Total revenue

$29.1 million

Q3 2026; up 2% year over year

AI share of licensing revenue

More than 35%

Q3 2026; record AI licensing revenues

Royalty revenue

$12.7 million

Q3 2026; up 3% year over year

Sequential royalty growth

18%

Q3 2026

Powered-device shipments

623 million devices

Q3 2026; matched the all-time quarterly record

GAAP gross margin

85%

Q3 2026, compared with 88% in Q3 2025

GAAP net loss

$2.3 million

Q3 2026, compared with $2.5 million in Q3 2025

Non-GAAP net income

$3.8 million

Q3 2026, compared with $2.7 million in Q3 2025

Previous Earnings Reports

2 past events · Latest: Aug 10

Same Type 2 events

1. Aug 10

   2Q26 earnings

   24h Move

   -17.5%

   Revenue rose 13%, licensing increased 21%, and royalties grew 17% sequentially.

2. Nov 10

   3Q25 earnings

   24h Move

   -0.6%

   Revenue rose 4% year over year, while powered-device shipments reached 579 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, fasb asc no. 718

3 terms

gaap financial

"GAAP gross margin was 85%"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Non-GAAP net income and non-GAAP diluted earnings per share"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

fasb asc no. 718 financial

"expenses associated with the application of FASB ASC No. 718"

Accounting standard that tells companies how to record and disclose employee stock-based compensation, including how to measure the fair value of stock awards and when to recognize the resulting expense in their financial statements. It matters to investors because it affects reported profits, equity balances, and dilution from share-based pay—think of stock awards as a form of pay that companies must convert into a measurable cost on their books so investors can compare performance accurately.

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18% sequential royalty revenue growth and record AI licensing revenues, with multi-year smartphone modem ramp ahead

ROCKVILLE, Md., Nov. 9, 2026 /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, 2026.

Third Quarter Highlights: *

• Total revenues of $29.1 million, up 2% YoY.
• Licensing and related revenues of $16.3 million, up 2% YoY.
• Record AI licensing revenues, accounting for more than 35% of total licensing and related revenues.
• Royalty revenues of $12.7 million, up 3% YoY and 18% sequentially.
• 623 million Ceva-powered devices shipped by customers, matching all-time quarterly record, including record cellular IoT and Wi-Fi 6 shipments.

*Unless otherwise stated, all comparisons are to the third quarter 2025.

Amir Panush, Chief Executive Officer of Ceva, commented, "We continued to grow our business in the third quarter, with 18% sequential royalty revenue growth and Ceva-powered device shipments matching our all-time quarterly record. In licensing, we achieved our highest-ever AI licensing revenues and expanded our relationships with three of our highest-volume connectivity customers, building a broader base of potential future royalty-generating products.

"The continued ramp of internally developed modems at a major U.S. customer is creating a multi-year smartphone royalty growth opportunity through 2027 and beyond. We are also extending our AI business into infrastructure applications and moving closer to initial NPU royalties. Together, we believe these developments reinforce the long-term growth potential of our Connect, Sense and Infer portfolio."

Business and Market Highlights
During the quarter, Ceva signed 10 IP licensing agreements, including three with first-time customers. Six were for AI technologies, including one with a new customer targeting AI infrastructure, and Edge AI agreements targeting consumer, automotive and industrial markets.

In wireless connectivity, three of Ceva's highest-volume customers extended their agreements for multiple years and added more Ceva IP, including one adding Wi-Fi 6 and Wi-Fi 7 to its existing Bluetooth and DSP deployments. In sensing, Ceva expanded its presence in smart TVs with a customer targeting advanced motion-based interaction.

Other Third Quarter Financial Data: *

• GAAP gross margin was 85%, as compared to GAAP gross margin of 88%
• GAAP operating loss was $3.5 million, as compared to a GAAP operating loss of $2.1 million
• GAAP net loss was $2.3 million, as compared to a GAAP net loss of $2.5 million
• GAAP diluted loss per share was $0.08, as compared to GAAP diluted loss per share of $0.10
• Non-GAAP gross margin was 86%, as compared to non-GAAP gross margin of 89%
• Non-GAAP operating income was $2.5 million, as compared to non-GAAP operating income of $3.1 million
• Non-GAAP net income and non-GAAP diluted earnings per share were $3.8 million and $0.13, respectively, as compared to non-GAAP net income and non-GAAP diluted earnings per share of $2.7 million and $0.11, respectively

*Unless otherwise stated, all comparisons are to the third quarter 2025.

Yaniv Arieli, Chief Financial Officer of Ceva, added, "Royalty revenues grew 18% sequentially, led by the ramp of internally developed modems at a major U.S. customer and continued strength in broad-based IoT and connectivity, partially offset by memory-related softness in compute-intensive consumer devices. A significant multi-year connectivity agreement we expected in the third quarter was signed early in the fourth quarter. With a robust licensing pipeline and a step-up in smartphone royalties, we expect a strong fourth quarter on both the top and bottom lines."

Ceva Conference Call

On November 9, 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/oKLP6DwbXyv. Please go to the website 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: 7028120) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 16, 2026. The replay will also be available at Ceva's website 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 for 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 markets, 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 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.

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 23 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 a 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.

For more information, contact:
Yaniv Arieli Ceva, Inc. CFO +972.9.961.3770 yaniv.arieli@ceva-ip.com	Richard Kingston                                                     Ceva, Inc. VP Market Intelligence, Investor & Public Relations +1.650.220.1948 richard.kingston@ceva-ip.com

 

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,
	2026	2025	2026	2025
	Unaudited	Unaudited	Unaudited	Unaudited
Revenues:
Licensing and related revenues	$  16,338	$  16,028	$  52,379	$  46,092
Royalties	12,725	12,356	32,741	32,215
Total revenues	29,063	28,384	85,120	78,307
Cost of revenues	4,252	3,392	11,627	10,428
Gross profit	24,811	24,992	73,493	67,879
Operating expenses:
Research and development, net	18,128	19,532	57,297	55,899
Sales and marketing	3,935	3,012	10,980	9,783
General and administrative	6,154	4,383	15,557	12,697
Amortization of intangible assets	110	149	336	448
Total operating expenses	28,327	27,076	84,170	78,827
Operating loss	(3,516)	(2,084)	(10,677)	(10,948)
Financial income, net	2,301	1,245	5,156	5,466
Remeasurement of marketable equity securities	(16)	1	72	(261)
Loss before taxes on income	(1,231)	(838)	(5,449)	(5,743)
Income tax expense	1,070	1,671	4,221	3,797
Net loss	$  (2,301)	$  (2,509)	$  (9,670)	$  (9,540)
Basic and diluted net loss per share	$    (0.08)	$    (0.10)	$    (0.35)	$    (0.40)
Weighted-average shares used to compute net loss per share (in thousands):
Basic and diluted	28,323	23,942	28,001	23,869

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures U.S. dollars in thousands, except per share data
	Three months ended				Nine months ended
	September 30,				September 30,
	2026		2025		2026		2025
	Unaudited		Unaudited		Unaudited		Unaudited
GAAP net loss	$	(2,301)	$	(2,509)	$	(9,670)	$	(9,540)
Equity-based compensation expense included in cost of revenues	173		168		533		493
Equity-based compensation expense included in research and development expenses	2,130		2,639		7,651		7,778
Equity-based compensation expense included in sales and marketing expenses	880		571		2,310		1,735
Equity-based compensation expense included in general and administrative expenses	1,809		1,495		5,041		4,092
Amortization of intangible assets related to acquisition of businesses	168		208		302		625
Acquisition and deal-related costs	893		145		1,014		433
Loss (income) associated with the remeasurement of marketable equity securities	16		(1)		(72)		261
Non-GAAP net income	$	3,768	$	2,716	$	7,109	$	5,877
GAAP weighted-average number of Common Stock used in computation of diluted net loss per share (in thousands)	28,323		23,942		28,001		23,869
Weighted-average number of shares related to outstanding stock-based awards (in thousands)	1,579		1,763		1,733		1,714
Non-GAAP weighted-average number of Common Stock used in computation of diluted earnings per share (in thousands)	29,902		25,705		29,734		25,583
GAAP diluted loss per share	$	(0.08)	$	(0.10)	$	(0.35)	$	(0.40)
Equity-based compensation expense	$  0.18		$  0.19		$  0.54		$  0.57
Amortization of intangible assets related to acquisition of businesses	$  0.00		$  0.01		$  0.01		$  0.03
Acquisition and deal-related costs	$  0.03		$  0.01		$  0.04		$  0.02
Loss (income) associated with the remeasurement of marketable equity securities	$  0.00		$  0.00		$  0.00		$  0.01
Non-GAAP diluted earnings per share	$  0.13		$  0.11		$  0.24		$  0.23

 

	Three months ended		Nine months ended
	September 30,		September 30,
	2026	2025	2026	2025
	Unaudited	Unaudited	Unaudited	Unaudited
GAAP operating loss	$  (3,516)	$  (2,084)	$  (10,677)	$  (10,948)
Equity-based compensation expense included in cost of revenues	173	168	533	493
Equity-based compensation expense included in research and development expenses	2,130	2,639	7,651	7,778
Equity-based compensation expense included in sales and marketing expenses	880	571	2,310	1,735
Equity-based compensation expense included in general and administrative expenses	1,809	1,495	5,041	4,092
Amortization of intangible assets related to acquisition of businesses	168	208	302	625
Acquisition and deal-related costs	893	145	1,014	433
Total non-GAAP operating income	$  2,537	$  3,142	$  6,174	$  4,208
	Three months ended		Nine months ended
	September 30,		September 30,
	2026	2025	2026	2025
	Unaudited	Unaudited	Unaudited	Unaudited
GAAP gross profit	$  24,811	$  24,992	$  73,493	$  67,879
GAAP gross margin	85 %	88 %	86 %	87 %
Equity-based compensation expense included in cost of revenues	173	168	533	493
Amortization of intangible assets related to acquisition of businesses	58	59	(34)	177
Total non-GAAP gross profit	$  25,042	$  25,219	$  73,992	$  68,549
Non-GAAP gross margin	86 %	89 %	87 %	88 %
	Three months ended		Nine months ended
	September 30,		September 30,
	2026	2025	2026	2025
	Unaudited	Unaudited	Unaudited	Unaudited
GAAP operating expenses	$ 28,327	$27,076	$84,170	$ 78,827
Equity-based compensation expense included in research and development expenses	(2,130)	(2,639)	(7,651)	(7,778)
Equity-based compensation expense included in sales and marketing expenses	(880)	(571)	(2,310)	(1,735)
Equity-based compensation expense included in general and administrative expenses	(1,809)	(1,495)	(5,041)	(4,092)
Amortization of intangible assets related to acquisition of businesses	(110)	(149)	(336)	(448)
Acquisition and deal-related costs	(893)	(145)	(1,014)	(433)
Total non-GAAP operating expenses	$  22,505	$  22,077	$  67,818	$  64,341

 

CEVA, INC. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		September 30,	December 31,
		2026	2025 (*)
		Unaudited
ASSETS
Current assets:
Cash and cash equivalents		$  29,608	$  40,586
Marketable securities and short-term bank deposits		191,072	181,397
Trade receivables, net		17,806	19,495
Unbilled receivables		28,683	29,860
Prepaid expenses and other current assets		14,235	13,498
Total current assets		281,404	284,836
Long-term assets:
Severance pay fund		6,901	7,530
Deferred tax assets, net		303	257
Property and equipment, net		9,161	7,054
Operating lease right-of-use assets		16,727	17,486
Investment in marketable equity securities		127	55
Goodwill		58,308	58,308
Intangible assets, net		532	1,044
Other long-term assets		17,148	11,686
Total assets		$ 390,611	$ 388,256
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables		$  1,243	$  2,418
Deferred revenues		3,444	3,496
Accrued expenses and other payables		18,378	21,026
Operating lease liabilities		2,797	1,743
Total current liabilities		25,862	28,683
Long-term liabilities:
Accrued severance pay		7,113	7,690
Operating lease liabilities		14,040	14,388
Other accrued liabilities		1,224	1,037
Total liabilities		48,239	51,798
Stockholders' equity:
Common stock		29	28
Additional paid-in capital		354,941	337,966
Treasury stock		0	(1,591)
Accumulated other comprehensive income (loss)		(2,904)	79
Accumulated deficit		(9,694)	(24)
Total stockholders' equity		342,372	336,458
Total liabilities and stockholders' equity		$ 390,611	$ 388,256
(*) 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 September 30, 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 loss. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP and is intended to provide additional insight into the Company's operations that, when viewed with its GAAP results and the accompanying reconciliation, offers 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ceva's third-quarter 2026 revenue and GAAP earnings?

Ceva reported $29.1 million in revenue, up 2% year over year, and a GAAP net loss of $2.3 million, or $0.08 per diluted share. The prior-year quarter had a net loss of $2.5 million, or $0.10 per diluted share.

How did Ceva's royalty revenue perform in the third quarter of 2026?

Ceva's royalty revenue reached $12.7 million, increasing 3% year over year and 18% sequentially. Customers shipped 623 million Ceva-powered devices, matching the company's all-time quarterly record.

When did Ceva sign the connectivity agreement expected in the third quarter of 2026?

The multi-year connectivity agreement was signed early in the fourth quarter, rather than in the third quarter as Ceva had expected.