CEVA, Inc.

Second-quarter revenue increased 13% year over year and 7% sequentially to $29 million. Licensing and related revenue was $18.2 million, up 21% year over year and 63% of total revenue; royalty revenue was $10.8 million, versus $10.7 million a year ago, and up 17% sequentially. Gross margin was 87% on a GAAP basis and 88% on a non-GAAP basis. GAAP operating loss improved to $2.1 million from $4.5 million a year ago; non-GAAP operating income was $3.1 million versus $0.8 million, and non-GAAP EPS was $0.08 versus $0.07. For 2026, management raised full-year revenue growth guidance to 13% to 15% from 12%, kept expense guidance at about 8% annual growth, and now expects non-GAAP operating income to grow about 70% and non-GAAP net income about 50%. Third-quarter guidance calls for revenue of $30.5 million to $34.5 million, gross margin of about 87% GAAP and 88% non-GAAP, GAAP operating expenses of $28.2 million to $29.2 million, and net financial income of about $2 million.

Amir Panush framed the quarter as evidence that CEVA is benefiting from a structural shift toward edge AI and broader platform adoption. He emphasized that customers are increasingly choosing complete, production-proven solutions instead of individual IP blocks, which expands CEVA’s content per design and future royalty opportunity. His tone was confident and strategic, repeatedly pointing to AI, connectivity, and sensing as the core engines of long-term growth.

Yaniv Arieli highlighted operating leverage and a strong balance sheet. He said gross margin held at 87% GAAP and 88% non-GAAP, operating expenses were at or below guidance, and the company ended the quarter with about $221 million in cash, cash equivalents, marketable securities, and cash deposits. He also noted $5.8 million of cash from operations, $0.6 million of capex, and that the raised outlook reflects stronger licensing execution, better royalty trends, and disciplined cost management.

Analysts focused on whether CEVA is seeing a broader trend toward customers bringing wireless designs in-house or seeking turnkey solutions; management said the latter is a positive trend because complete offerings drive bigger deals, higher royalties, and stronger customer stickiness. Questions also centered on edge AI, smartphone share gains, and memory-supply constraints; management said the low-end smartphone market has shown recovery, some supply pressure remains, and the second half should still benefit from seasonality and share gains. They also said the NeuPro custom AI engagement should ramp like a normal IP program, with tape-out followed by production roughly one and a half to two years later.