CEVA (CEVA) Q1 2026 earnings summary

Executive summary

• Total revenues reached $27.0 million, up 11% year-over-year, with licensing and related revenues at $17.8 million, the highest in three years, and royalty revenues at $9.2 million, driven by record Wi-Fi shipments and growth in cellular IoT, 5G infrastructure, and automotive AI.

• Signed 14 IP licensing agreements, including multi-technology deals and a major Bluetooth HDT solution win, expanding system-level connectivity and value per design.

• AI represented over 20% of licensing and related revenues, with key milestones such as integration into the Renesas R-Car V4H platform for the 2026 Toyota RAV4 and collaboration with NXP for vehicle processors.

Financial highlights

• GAAP gross margin was 86%, unchanged year-over-year; non-GAAP gross margin was 87%.

• GAAP operating loss was $5.1 million, compared to $4.4 million last year; GAAP net loss was $4.5 million, versus $3.3 million.

• Non-GAAP operating income was $0.5 million, up from $0.3 million; non-GAAP net income was $1.1 million, down from $1.4 million.

• GAAP diluted loss per share was $0.16, compared to $0.14; non-GAAP diluted EPS was $0.04, down from $0.06.

Outlook and guidance

• Management expects continued momentum in licensing and royalty growth, driven by integrated solutions and AI adoption.

• Measures are being implemented to offset expenses from a weaker U.S. dollar.