Ceva, Inc. Announces Third Quarter 2025 Financial Results

ROCKVILLE, Md., Nov. 10, 2025 /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.

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 Call

On 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:

The conference call will also be available live via webcast at the following link: https://app.webinar.net/ePpLk12BRaD https://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 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 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 Measures

Non-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,

2025

2024

2025

2024

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

(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,

2025

2024

2025

2024

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

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

$ 0.03

$ 0.04

Costs associated with asset acquisition

$ 0.01

$ 0.02

$ 0.03

Loss associated with the remeasurement of marketable equity securities

$ 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,

2025

2024

2025

2024

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,

2025

2024

2025

2024

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

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

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

312

Goodwill

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

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.