Ceva licensing revenue surges 18% driven by Edge AI and automotive wins

Ceva (NASDAQ:CEVA) posted total revenue of $27 million for the first quarter of 2026, an 11% increase year-over-year.

The performance was led by a robust Licensing and Related Revenue segment, which climbed 18% to $17.8 million—the highest level recorded in three years.

Royalty revenues contributed $9.2 million, with "Smart Edge" royalties specifically rising 8% on the back of record Wi-Fi unit shipments.

A key highlight of the quarter was the expanding role of artificial intelligence, which accounted for more than 20% of the company's licensing revenue.

Management confirmed that Ceva’s AI DSP and accelerators have entered volume production via the Renesas R-Car V4H platform, featured in the 2026 Toyota RAV4.

Additionally, the company announced a strategic collaboration with NXP Semiconductors to integrate its technology into next-generation software-defined vehicle processors.

Elsewhere, the company maintained a high GAAP gross margin of 86%.

While Ceva reported a GAAP net loss of $4.5 million ($0.16 per share)—largely due to stock-based compensation and non-cash charges—it achieved non-GAAP net income of $1.1 million, or $0.04 per diluted share, comfortably beating consensus estimates.

During the quarter, Ceva-powered device shipments reached 458 million units.