18% month-on-month royalty revenue growth, AI licensing revenue sets a record, smartphone modems have been on the rise for many years
Rockville, Maryland, November 9, 2026 / PRNewswire / -- Providing silicon and software for intelligent edge devices. IP Authorized by Ceva, Inc. ( NASDAQ : CEVA ) Today, they announced their financial results for the third quarter as of September 30, 2026.
Third Quarter Highlights: *
- Total revenue amounted to 29.1 million US dollars, a year-on-year increase of 2%.
- Royalty income amounted to 12.7 million US dollars, a year-on-year increase of 3% and a month-on-month increase of 18%.
- The number of Ceva enabled devices shipped by customers reached 623 million, tying the highest record for a single quarter. Among them, shipments of cellular IoT and Wi – Fi set a new record.
*Unless otherwise specified, all comparisons are made against the third quarter of 2025.*
Ceva CEO Amir Panush stated: "In the third quarter, we continued to achieve business growth, with royalty revenue increasing by 18% month-over-month. The shipment volume of Ceva enabled devices also matched our highest record for a single quarter. In terms of licensing business, we achieved the highest AI licensing revenue to date and expanded our cooperative relationships with three of the top customers in the connectivity sector, thereby establishing a broader foundation for potential royalty products in the future."
He stated, "A modem developed internally by a major American client is continuing to show strong growth, creating opportunities for multi-year smartphone royalty increases that will extend into 2027 and beyond. We are also extending our AI business to infrastructure applications and gradually approaching the initial royalty revenue from NPU. We believe that these developments collectively enhance the long-term growth potential of our Connect, Sense, and Infer product portfolios."
Business and Market Highlights
This quarter, Ceva signed 10 IP authorization agreements, 3 of which came from first-time collaborating customers. Six of the agreements involve AI technology, including one new customer agreement for AI infrastructure, as well as edge AI agreements for consumer, automotive, and industrial markets.
In the field of wireless connectivity, the three customers with the highest shipment volumes, Ceva, extended their agreements for several years and added more Ceva IP. One of these customers, on top of their existing Bluetooth and DSP deployments, added Wi – Fi 6 and Wi – Fi 7. In the field of sensing, Ceva expanded its presence in the smart TV market through a customer focused on advanced motion interactions.
Other financial data for the third quarter: *
- The gross profit margin is 85%, compared to 88% in the same period last year. GAAP
- GAAP reported a operating loss of $3.5 million, while in the same period last year, GAAP had an operating loss of $2.1 million.
- GAAP reported a net loss of $2.3 million, while in the same period last year, GAAP recorded a net loss of $2.5 million.
- The gross profit margin is 86%, compared to 89% in the same period last year. Non-GAAP
- Non-GAAP reported a operating profit of $2.5 million, while in the same period last year, Non-GAAP recorded an operating profit of $3.1 million.
*Unless otherwise specified, all comparisons are made against the third quarter of 2025.*
Ceva Chief Financial Officer Yaniv Arieli added: "Royalty income increased by 18% quarter-on-quarter, mainly driven by the ramp-up in modem development within a major American customer, as well as the continued strength of our extensive IoT and connectivity business. However, this was partially offset by weak demand for memory-related, compute-intensive consumer devices. An important multi-year connectivity agreement that we had anticipated signing in the third quarter was finalized at the beginning of the fourth quarter. With a solid reserve of authorized projects and an increase in smartphone royalties, we expect to perform strongly in both revenue and profit in the fourth quarter."
Ceva Teleconference
On November 9, 2026, the management of Ceva will hold a teleconference at 8:30 a.m. Eastern Time to discuss the operational performance of this quarter.
The dial-in numbers for the conference call are as follows:
- U.S. participant: +1 844-435-0316 (Access code: Ceva)
- International participants: +1 412-317-6365 (Access code: Ceva)
The teleconference will also be available via live web broadcast, with the link being: https :// app.webinar.net / oKLP6DwbXyv. The company recommends that participants visit the website at least 15 minutes before the meeting begins to complete registration.
If you are unable to listen to the live broadcast, you can call +1 855-669-9658 or +1 412-317-0088 (access code: 7028120) one hour after the meeting ends until 9 a.m. Eastern Time on November 16, 2026, to listen to the replay. The replay will also be available on the Ceva website at www.ceva-ip.com.
Forward-looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and related assumptions. If these assumptions do not materialize or prove to be incorrect, the actual results of Ceva may differ significantly from those expressed or implied in these forward-looking statements. Forward-looking statements include, but are not limited to: Ceva's future growth positioning, as well as its ability to provide foundational technology for smart connected devices; the acquisition of licensing agreements; future industry demand; the company's future market position and growth in product demand; forecasts for financial indicators for the next quarter and 2026; long-term goals and their underlying assumptions; future investments; expectations for future markets; the success of strategies and agreements; visibility into future revenue streams; and Ceva's focus on improving cost management and profitability.
Risks, uncertainties, and assumptions that may result in different actual outcomes for Ceva include: the impact of fierce industry competition; the ability of Ceva technology and the adoption of Ceva technology products to gain market recognition; the ability to meet the constantly changing needs of end-users and market evolution; the relatively long sales cycle for IP and related solutions; the ability to diversify royalty and licensing revenues; geopolitical risks and instability, including the impact of tariffs and other trade measures, as well as potential disruptions related to ongoing conflicts in the Middle East; and general market conditions and other risks related to Ceva's business and industry, including but not limited to those described in the documents submitted from time to time to the U.S. Securities and Exchange Commission (SEC). Ceva assumes no obligation to update any forward-looking statements or information, and such statements and information reflect the circumstances as of their respective dates only.
Regarding Ceva, Inc.
Ceva is committed to powering the intelligent edge, connecting the digital world with the physical world, and making the products driven by AI a reality. The company's Ceva AI fabric combination of silicon and software IP products endows devices with the capabilities to connect, perceive, and reason – these are the core abilities of the intelligent edge. From 5G, cellular IoT, Bluetooth, Wi – Fi and UWB connectivity, to scalable edge AI NPU, AI DSP, sensor fusion processors, and embedded software, Ceva provides the foundation for devices that can connect, understand their environment, and act in real time.
Ceva indicates that over 23 billion devices worldwide have been shipped using their technology, and they have gained the trust of more than 400 customers. Their solutions support today's most advanced intelligent edge products, ranging from wearable devices and Internet of Things (IoT) devices that integrate AI, to autonomous vehicles and 5G infrastructure. The company claims that their differentiated solutions can be seamlessly integrated into existing design processes and can be flexibly combined according to design requirements, while achieving ultra-low power consumption performance in a very small silicon area. This helps customers accelerate development, reduce risks, and bring innovative products to market more quickly. As technology evolves towards "physical AI", Ceva's IP product portfolio lays the foundation for systems that are always online, context-aware, and capable of making intelligent real-time decisions.
For more information, please visit: www.ceva-ip.com.
The company stated that including the Non-GAAP indicators in this press release helps investors analyze the performance for the quarters ending September 30, 2026, and September 30, 2025. This is because, after excluding relevant expenses, it may be more conducive to assessing the company's core operating results and comparing quarterly performances. The company also noted that it is meaningful to help investors understand how the expenses related to the application of Guideline No. 718 of FASB ASC are reflected in the loss statement. The relevant financial indicator adjustment tables should be reviewed in conjunction with the results based on the GAAP metric. The purpose is to provide a more comprehensive understanding of the factors and trends affecting the company's business, based on the GAAP results and the corresponding adjustments, and they should not be considered as a substitute for the GAAP results presented in the company's reports.
Due to the potential uncertainties in future expenses, the company states that it is unable to provide adjustments between the Non-GAAP guidance and the corresponding GAAP indicators on a forward-looking basis without making unreasonable efforts. However, the company also points out that these factors may have a significant impact on the performance calculated according to GAAP.
