Key Highlights

  • Second-quarter 2026 Revenue was US$29.0 million, up 13 per cent, with licensing and related revenue of US$18.2 million, up 21 per cent.
  • Ten licensing agreements were signed in the quarter, including two with first-time customers.
  • Cash, marketable securities and short-term deposits totalled about US$220.7 million at 30 June 2026, and the company gave no guidance.

Licensing leads the quarter

Ceva, Inc. (NASDAQ:CEVA), which licenses semiconductor intellectual property, reported second-quarter 2026 results on 10 August 2026. Total revenue was US$29.0 million, up 13 per cent from US$25.7 million a year earlier.

Licensing and related revenue was US$18.2 million, up 21 per cent and, according to the company, its highest level in three years. Chief executive Amir Panush attributed the quarter to that growth. Royalty revenue was US$10.8 million, roughly flat year on year at plus 1 per cent, though it rose 17 per cent sequentially.

Royalties and customer wins

The company credited the sequential royalty improvement to wireless connectivity shipments, ramping automotive AI programmes and better smartphone royalties. The release did not disclose royalty units or shipment volumes, so the drivers cannot be sized from the text.

Ten licensing agreements were signed in the quarter, including two with first-time customers and two made directly with equipment manufacturers. A leading global AI and computing platform company selected Ceva's NeuPro-M neural processing unit IP for custom AI silicon. A high-volume US semiconductor company added a third-party chip based on Ceva's Wi-Fi 6 and Bluetooth Low Energy IP, and an existing US customer expanded from one baseband component to the full baseband processing subsystem.

Margins and earnings

Gross Margin was 87 per cent on a GAAP basis, from 86 per cent a year earlier, and 88 per cent non-GAAP, from 87 per cent. The GAAP operating loss narrowed to US$2.1 million from US$4.5 million. Non-GAAP Operating Income rose to US$3.1 million, an 11 per cent margin, compared with US$0.8 million and 3 per cent.

The GAAP net loss was US$2.9 million, or US$0.10 per diluted share, against a loss of US$3.7 million, or US$0.15. Non-GAAP Net Income was US$2.3 million, or US$0.08 per diluted share, compared with US$1.8 million and US$0.07.

Gross margins in the high 80s per cent reflect the nature of an intellectual property model, where each additional licence or royalty carries little direct cost. The gap between the GAAP loss and non-GAAP profit shows how much of the Earnings picture depends on adjustments, and the company's reconciliation explains what is excluded.

Balance sheet and the absence of guidance

At 30 June 2026, cash and cash equivalents were US$44.3 million, and marketable securities and short-term bank deposits were US$176.4 million, about US$220.7 million of Liquidity in total. The quarter's GAAP net loss of US$2.9 million is small relative to that balance.

The release gave no third-quarter or full-year 2026 guidance, stating only that a reconciliation of non-GAAP guidance to GAAP is not available on a forward-looking basis.

What to watch

The next scheduled event is the third-quarter report, listed for 9 November 2026, following a company scheduling announcement on 14 October.

Useful measures will include licensing revenue after its three-year high, whether royalties build on the sequential gain, and the pace of conversion of design wins into AI-related shipments. Operating Margin and liquidity are the other items to check.