#United States #Rockville #Ceva #AI processor licensing #NeuPro NPU

Ceva, Inc. Announces Q3 2025 Financial Results

Ceva, Inc. recently released its financial report for the third quarter of 2025, demonstrating a positive trend in overall revenue and profitability metrics. Total revenue for the quarter reached $28.4 million, marking an 11% increase sequentially and a 4% increase compared to the same period last year. This growth can be largely attributed to the company's strategic focus on artificial intelligence (AI) technology and enhanced licensing agreements.

AI processor licensing emerged as a significant contributor, accounting for approximately one-third of the licensing revenue in both the second and third quarters of this year. This milestone indicates Ceva’s strong position in the rapidly evolving AI market. According to Amir Panush, the CEO of Ceva, the company has significantly exceeded expectations due to effective licensing execution and a healthy growth in royalty revenue.

Strategic Partnerships and Expanding Market Reach

During the third quarter, Ceva finalized twelve licensing agreements targeting diversified markets, including industrial applications, automotive, and consumer electronics. One notable agreement involved a portfolio license for Ceva's NeuPro NPU family with Microchip Technology, signifying a partnership with one of the leading microcontroller providers worldwide. Additionally, new AI DSP agreements and connectivity wins for Wi-Fi 7 and Bluetooth IP further diversify Ceva’s portfolio, establishing a stronger hold in both consumer and automotive sectors.

Device Shipments and Wireless Connectivity Leadership

In terms of product performance, Ceva reported shipping 579 million devices during the quarter. Remarkably, cellular IoT and Wi-Fi 6 shipments reached record levels, reaffirming Ceva’s leadership in the wireless IP space. The overwhelm of successful product launches coupled with an increased demand for connected devices aligns perfectly with Ceva's strategic direction, emphasizing sustainable growth as a foundational technology provider. The company’s relentless pursuit of innovation positions it as a key player in the trajectory of intelligent, connected devices.

Financial Performance Overview

Ceva’s licensing and related revenues totaled $16.0 million for the third quarter, a slight increase from $15.6 million in Q3 of 2024. Additionally, royalty revenue climbed to $12.4 million, compared to $11.6 million in the same quarter of the previous year.

Despite the operating loss recorded at $2.1 million, a decrease from $2.6 million the year prior, gross margins remained healthy with a rise to 88% from 85% year-over-year. Non-GAAP figures further highlighted the resilience of the company's finances, showcasing a non-GAAP net income of $2.7 million or $0.11 per share, despite a GAAP net loss of $2.5 million.

Enhancing Shareholder Value

In an effort to enhance shareholder value, Ceva actively participated in a share repurchase program, buying back 40,295 shares for approximately $1 million during the quarter. The commitment to disciplined expense management and strategies for improving profitability signal Ceva's positive outlook.

Conclusion and Forward-Looking Statements

The coming months will be pivotal as Ceva continues to strengthen its market position with significant AI contributions and a focus on innovative wireless technologies. In light of evolving market demands, the company aims to maintain robust management strategies and meet its ambitious growth objectives. CEO Amir Panush's remarks on the necessity of sustaining competitive advantages reinforce Ceva's commitment to leading the charge in intelligent edge technology, ensuring that its innovations not only meet the current market demands but set the groundwork for future advancements, especially as the demand for AI integration across devices intensifies.

For further details about the third quarter results, Ceva is hosting a conference call, where management will discuss overall performance and future directions. This meeting will be a crucial opportunity for stakeholders to gain insights into Ceva's operational strategies and growth forecasts as the company heads into the next quarter and beyond.