CEVA (CEVA) Q3 2026 Earnings Call Transcript

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DATE

Mon, Nov. 9, 2026

CALL PARTICIPANTS

• Vice President, Market Intelligence and Investor and Public Relations – Richard Kingston
• Chief Executive Officer – Amir Panush
• Chief Financial Officer – Yaniv Arieli

TAKEAWAYS

• Total Revenue — $29.1 million, representing an increase of 2% year over year.
• Licensing and Related Revenues — $16.3 million, reflecting growth of 2% year over year and 14% growth for the first nine months of 2026.
• AI Licensing Revenue — Record levels for the quarter, accounting for more than 35% of total licensing and related revenues.
• Royalty Revenues — $12.7 million, increasing 3% year over year and 18% sequentially from the second quarter of 2026.
• Device Shipments — 623 million CEVA-powered units, matching the company all-time quarterly record and increasing 8% year over year.
• Non-GAAP EPS — $0.13, up 18% year over year and 63% sequentially from $0.08 in the preceding quarter.
• Mobile Shipments — 82 million units, an increase of 19% year over year and 34% sequentially, representing 13% of total quarterly shipments.
• Wi-Fi 6 Shipments — 57% of total Wi-Fi unit volume, up from 24% year over year, resulting in higher royalty value per device.
• Industrial IoT Shipments — 23 million units, representing 120% growth year over year.
• Cash and Marketable Securities — $221 million at the end of the quarter, providing financial flexibility for technology investments and strategic M&A.
• Days Sales Outstanding — 56 days at quarter end, down from 70 days in the prior quarter.
• Non-GAAP Operating Margin — 9% for the quarter, compared to 11% in the third quarter of 2025.
• Q4 Revenue Guidance — $34 million to $38 million, representing approximately 24% sequential growth at the midpoint of the range.
• Full Year Non-GAAP Expense Growth — approximately 7% or $7 million, revised downward from previous management expectations.
• Headcount — 394 employees, including 315 engineers, reflecting continued investment in the company research and development road map.

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RISKS

• Panush stated, “overall, this market, I will say also the so-called what we call compute-intensive consumer market, whether it’s so-called the TV, PCs and mobile, that market is under pressure because of the price increase in the market,” noting that memory market headwinds tempered volume.
• Arieli stated that a “significant multi-year connectivity agreement with a key strategic customer that we expected to sign in the third quarter was delayed,” which impacted licensing revenue timing.

SUMMARY

CEVA, Inc. (CEVA -5.76%) reported third quarter results featuring record AI licensing activity and a sequential increase in royalty revenues. Management reported that while licensing revenue was affected by the delay of a major multiyear connectivity agreement into the fourth quarter, the company matched its all-time record for total device shipments at 623 million units. The company is currently managing a transition in the smartphone market as a major U.S. customer begins shipping internally developed modems in mainstream flagship models, a development expected to accelerate in the fourth quarter. Management updated its full year non-GAAP expense growth guidance to approximately 7%, a reduction from previous estimates, while maintaining its investment levels in AI infrastructure and wireless connectivity technologies.

• CEO Panush stated, “This is the first time our customers has moved its internally developed modems into high-volume production across its mainstream flagship smartphone models, an important step for CEVA in this market.”
• Management indicated that initial royalties from the NeuPro NPU product line are expected to begin around the end of 2026 or early 2027.
• The company introduced NeuPro Ultra to extend its AI processing capabilities beyond the edge and into data center and AI infrastructure applications.
• IPnest ranked the company first in wireless interface IP for the third consecutive year, reporting a market share of approximately 68% by revenue.
• CFO Arieli noted that Wi-Fi 6 products now represent 57% of Wi-Fi unit shipments, more than doubling their royalty contribution compared to older Wi-Fi 4 technology.
• The company reported that more than 30 customers now license both Bluetooth and Wi-Fi technologies, which increases the average royalty content per device.

INDUSTRY GLOSSARY

• DSP: Digital Signal Processor, a specialized microprocessor optimized for the operational needs of digital signal processing.
• IP: Intellectual Property, referring to the silicon and software designs licensed to semiconductor manufacturers and OEMs.
• NPU: Neural Processing Unit, a specialized circuit designed to accelerate machine learning algorithms.
• NeuPro Ultra: An expanded family of AI processors designed for high-performance inference in data center and infrastructure systems.
• IoT: Internet of Things, the network of physical devices embedded with sensors and software for data exchange.
• SoC: System on a Chip, an integrated circuit that incorporates all components of a computer or electronic system into a single chip.

Full Conference Call Transcript

Operator: Good day, and welcome to the CEVA, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, today’s event is being recorded. I’d now like to hand the conference over to Richard Kingston, Vice President, Market Intelligence and Investor and Public Relations. Please go ahead.

Richard Kingston: Thank you, Rocco. Good morning, everyone, and welcome to CEVA’s third quarter 2026 earnings conference call. Joining me today are Amir Panush, Chief Executive Officer; and Yaniv Arieli, Chief Financial Officer. Before handing the call over to Amir, I’d like to remind everyone that today’s discussion contains forward-looking statements that involve risks and uncertainties as well as assumptions that if they materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such statements. Important factors that can cause actual results to differ include, but are not limited to, those stated in our earnings release issued earlier today and in our filings with the SEC.

We will also discuss certain non-GAAP financial measures, which we believe provide investors with additional insight into our core operating performance. Reconciliations between our GAAP and non-GAAP results are included in the earnings release issued this morning and available on the Investors section of our website. With that said, I’ll turn the call over to Amir. Amir?

Amir Panush: Thank you, Richard, and good morning, everyone. During the third quarter, we made good progress across our business. AI licensing revenues reached a record, accounting for more than 35% of total licensing and related revenues. Our customers shipped 623 million CEVA-powered devices, matching our all-time quarte

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