Key Highlights

● Second-quarter 2026 revenue was US$29.0 million, up 13% from US$25.7 million.

● Licensing and related revenue rose 21% to US$18.2 million.

● Royalty revenue increased only 1% to US$10.8 million.

● Cash, securities and deposits totalled about US$220.7 million at 30 June 2026.

Latest verified development

Ceva, Inc. (NASDAQ:CEVA), which licenses silicon intellectual property for wireless connectivity, sensing and edge artificial intelligence to chip designers, reported second-quarter 2026 results on 10 August. Total revenue was US$29.0 million, up 13% from US$25.7 million a year earlier. Chief executive Amir Panush said the company delivered another strong quarter, with revenue rising 13%.

The release did not give numerical guidance, stating only that reconciliations of forward-looking non-GAAP measures are not available.

A tale of two revenue lines

The headline growth masked a divergence. Licensing and related revenue rose 21% to US$18.2 million from US$15.0 million, while royalty revenue increased only 1% to US$10.8 million. Licensing reflects new design wins and is recognised largely as contracts are signed, so it can be lumpy. Royalties arrive when customers ship chips that embed Ceva's technology and therefore track end-market volumes.

That makes the royalty line a useful gauge of how many devices using Ceva IP are reaching consumers, and the near-flat reading suggests shipments were steady rather than expanding. The mix also matters for visibility: licences seed future royalties, but conversion takes time and depends on customers' product cycles. Ceva's growth therefore tends to be visible first in licensing and only later in royalties.

Profitability and balance sheet

On a GAAP basis the company reported a net loss of US$2.9 million, or US$0.10 per diluted share, compared with a loss of US$3.7 million, or US$0.15, a year earlier. Non-GAAP net income was US$2.3 million, or US$0.08 per diluted share, compared with US$1.8 million, or US$0.07. The difference between the two measures is mainly the company's own adjustments, set out in the reconciliation tables.

Cash and cash equivalents were US$44.3 million at 30 June 2026, and the company held a further US$176.4 million of marketable securities and short-term bank deposits. Together that totals about US$220.7 million of liquid resources, a sizeable buffer relative to a quarterly revenue base of US$29.0 million. The company also remained profitable on a non-GAAP basis, which gives it room to keep investing in engineering and customer support.

Ceva royalties against licensing

Whether the royalty line, up 1% to US$10.8 million, can narrow the gap with licensing, up 21% to US$18.2 million, is the clearest test of whether earlier design wins are reaching shipments.