Ceva delivers third quarter revenue of $29.1M, up 2%
Key points
- Ceva reported third-quarter 2026 revenue of US$29.1 million, up 2% year-over-year, while its GAAP net loss narrowed to US$2.3 million.
- Record AI licensing revenue accounted for more than 35% of licensing and related revenue, while royalty revenue increased 3% to US$12.7 million.
- Ceva sees a multi-year smartphone royalty growth opportunity through 2027 and beyond as internally developed modems ramp at a major US customer.
Ceva (NASDAQ:CEVA) reported third-quarter 2026 revenue of US$29.1 million, up 2% year-over-year, as record AI licensing activity contributed to its intellectual property business.
Licensing and related revenue increased 2% to US$16.3 million, while royalty revenue rose 3% to US$12.7 million annually and 18% sequentially.
Record AI licensing revenue accounted for more than 35% of licensing and related revenue, while the company's GAAP net loss narrowed to US$2.3 million, or US$0.08 per diluted share, from US$2.5 million, or US$0.10, a year earlier.
Gross margin declined to 85% from 88%, while the operating loss widened to US$3.5 million from US$2.1 million, despite customers shipping 623 million Ceva-powered devices during the quarter.
The company signed 10 intellectual property licensing agreements during the quarter, including six focused on artificial intelligence and three with first-time customers.
Ceva develops semiconductor intellectual property and connectivity technologies for applications including artificial intelligence, wireless communications, smart devices and the Internet of Things, while management sees further smartphone royalty growth through 2027 and beyond as internally developed modems ramp at a major US customer.
