CEVA Revenue Reaches $29.1 Million in Third Quarter, Up 2% Year Over Year

Key Facts

CEVA reported results on November 9 for the third quarter ended September 30, 2026, posting revenue of $29.1 million, up 2% year over year, according to its filing with the U.S. Securities and Exchange Commission. Diluted net income on the company's non-GAAP measure was $3.8 million, or $0.13 per share. By contrast, the company reported a GAAP net loss of $2.3 million and a diluted loss of $0.08 per share. The results put the different profitability measures side by side: adjusted income improved from a year earlier, while the reported accounting result remained a loss. The available information did not include a reliable analyst estimate that would support a firm conclusion that earnings per share or revenue missed market expectations.

Total revenue was slightly above the $29.0 million recorded in the second quarter, but grew just 2% year over year in the third quarter. Licensing and related revenue was $16.3 million, up 2% from the year-earlier period. Royalty revenue was $12.7 million, up 3% year over year and 18% from the second quarter. The sequential comparison shows an acceleration in royalties, even as overall revenue growth remained limited year over year. Second-quarter licensing revenue had been $18.2 million, up 21% year over year, providing context for the difference in revenue mix between the two periods.

The company attributed the sequential growth in royalty revenue to increased activity in modems developed by a large U.S. customer, and continued strength in the Internet of Things and connectivity sectors. The chief financial officer said those factors were offset by memory-related weakness in compute-intensive consumer devices. The detail points to a divergence between demand for connectivity and IoT technologies and some consumer devices, according to the company's explanation. In artificial intelligence, CEVA said AI-related licensing revenue reached a record level and accounted for more than 35% of licensing and related revenue. In the second quarter, the company had said licensing momentum was led by the selection of its NeuPro-M processor for a global AI and computing platform.

On shipments, CEVA said its customers shipped 623 million devices powered by its technologies during the quarter, matching the company's quarterly record. The records included shipments of cellular IoT and Wi-Fi 6 devices. The company also signed 10 intellectual property licensing agreements, including three with first-time customers. Six of the 10 agreements involved AI technologies, according to its statement. Three of its largest connectivity customers extended their agreements for multiple years and added CEVA technologies. These included one customer's addition of Wi-Fi 6 and Wi-Fi 7 to its existing use of Bluetooth and DSP technologies.

Non-GAAP net income improved to $3.8 million from $2.7 million in the third quarter of the previous year, while diluted earnings per share on the same basis rose to $0.13 from $0.11. GAAP net loss narrowed to $2.3 million from $2.5 million a year earlier, and diluted loss per share fell to $0.08 from $0.10. Both the adjusted and accounting results therefore improved from the year-earlier period, despite the difference in sign between adjusted earnings per share and the reported GAAP loss. In market trading, CEVA shares closed at $27.10 on November 6, before the results announcement on November 9. The available data do not include a post-announcement price or the stock's movement in the following session.

CEVA said a significant multiyear connectivity agreement, which had been expected to be signed in the third quarter, was finalized at the beginning of the fourth quarter. The company linked its outlook for a strong fourth quarter to a robust pipeline of intellectual property licenses and higher smartphone royalties. It said it expected strength in revenue and the bottom line during the quarter. The agreement's timing outside the reported period places part of its potential impact in the subsequent quarter, according to the company's outlook. In the second quarter, CEVA had reported a non-GAAP operating margin of 11%, compared with 3% in the year-earlier period.