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Ceva, Inc. Reports Strong Growth in Q3 2026

In a significant announcement on November 9, 2026, Ceva, Inc. (NASDAQ: CEVA), renowned for its silicon and software intellectual property (IP) for the Smart Edge, detailed its impressive financial performance for the third quarter of 2026. With a revenue of $29.1 million, the company's financial results reinforce its leadership in providing innovative solutions in the AI and connectivity sectors.

Key Financial Highlights

Ceva's financial metrics for Q3 reveal substantial advancements:

• - Total Revenue: $29.1 million, reflecting a 2% increase year-over-year
• - Non-GAAP Diluted EPS: $0.13
• - Royalty Revenue: Experienced an 18% sequential growth, amounting to $12.7 million
• - Record AI Licensing Revenue: Constituting more than 35% of total licensing
• - Device Shipments: A record of 623 million Ceva-powered devices were shipped, tying its all-time quarterly record.

These highlights reflect Ceva’s commitment to growth, particularly in the evolving AI market and connectivity solutions. The CEO, Amir Panush, underlined the company's focus on enhancing their business with the noted growth in royalties and device shipments.

Driving Innovation in AI and Connectivity

Ceva has been at the forefront of AI developments, evident by the launch of NeuPro Ultra, which expands its portfolio of Neural Processing Units (NPUs) aimed at enhancing AI infrastructure. This cutting-edge technology is positioned to play a critical role in a multi-year royalty opportunity expected from a significant modem ramp with a major U.S. customer, which is anticipated to contribute to revenue through 2027 and beyond.

Moreover, the company cemented ten new IP licensing agreements in the quarter, diversifying its customer base and extending its reach within the AI technology sphere. Notably, six of these agreements pertained to AI technologies, underscoring Ceva's dedication to pioneering intelligent solutions for various sectors including consumer, automotive, and industrial applications.

Operational and Financial Insights

Despite the remarkable uptick in revenue, Ceva also faced challenges reflected in its operational metrics:

• - GAAP Operating Loss: $3.5 million, compared to $2.1 million in the previous quarter
• - GAAP Gross Margin: 85%, down from 88% the previous year

While these figures indicate some financial stress, they align with the ongoing investments in research and development, crucial for sustaining Ceva’s competitive edge in the market. The company's CFO, Yaniv Arieli, remarked on the robust growth trajectory of royalty revenues, fueled by the ramp-up of modems and steady demand in connectivity markets.

Anticipating Future Growth

As Ceva looks to the future, the industry is optimistic about its growth potential, driven by advancements in AI and connectivity technologies. The company has established a strong licensing pipeline and awaits a substantial connectivity agreement expected to roll out soon.

In conclusion, Ceva, Inc.'s third-quarter financial results exemplify its strategic initiatives and successes in the competitive landscape of silicon and software IP licensing. With an eye towards innovation and a robust product offering, Ceva is well-positioned to capitalize on future market demands, reinforcing its status as a leader in providing essential technology for the intelligent edge.

For more insights and updates, join the upcoming conference call on November 9 at 8:30 a.m. ET, where Ceva management will discuss these financial results in depth.