Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended: June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to _____________ Commission file number: 000-49842 Ceva, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 7 ...

CEVA (CEVA) Q2 2025 Earnings Call August 11, 2025 08:30 AM ET Speaker0Good morning, and welcome to the CEVA, Inc. Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded.I'd now like to turn the conference over to Richard Gorsuch, Vice President, Market Intelligence, Investor and Public Relations. Please go ahead.Speaker1Thank you, Rocco. G ...

Exhibit 99.1 Ceva, Inc. Announces Second Quarter 2025 Financial Results ROCKVILLE, MD., August 11, 2025 – Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced its financial results for the second quarter ended June 30, 2025. Total revenue for the second quarter of 2025 was $25.7 million, compared to $28.4 million reported for the second quarter of 2024. Licensing and related ...

SECOND QUARTER 2025 EARNINGS Our AI business continues to scale, with four new NPU agreements signed during the quarter - marking a pivotal moment in customer adoption and underscoring the growing demand for our industry-leading edge AI technologies. Amir Panush, CEO T O T A L R E V E N U E E A R N I N G S P E R S H A R E Q U A R T E R L Y R E V E N U E S $25.7M 7¢ NON-GAAP versus 17¢ In Q2'24 (15¢) versus $28.4 million in Q2'24 GAAP versus (1¢) in Q2'24 Q U A R T E R L Y P E R F O R M A N C E O V E R V I E ...

Core Viewpoint - Ceva, Inc. will announce its second quarter 2025 results on August 11, 2025, before the NASDAQ market opens, followed by a conference call to discuss the operating performance for the quarter [1] Company Overview - Ceva, Inc. is a leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense, and infer data more reliably and efficiently [1] - The company offers a broad portfolio of IP, including wireless connectivity IPs (Bluetooth, Wi-Fi, UWB, and 5G platform IP), scalable Edge AI NPU IPs, and sensor fusion solutions [4] - Ceva powers over 19 billion smart edge products, including AI-infused smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks [4] Conference Call Details - The conference call will take place at 8:30 a.m. Eastern Time on August 11, 2025, and will be accessible via dial-in numbers and a live webcast [2][8] - A replay of the conference call will be available from one hour after the end of the call until 9:00 a.m. Eastern Time on August 18, 2025 [3] Corporate Responsibility - Ceva emphasizes sustainability and environmental consciousness, focusing on environmental preservation, recycling, employee welfare, and privacy [6]

Core Insights - Ceva and Nothing have announced a collaboration to integrate Ceva's RealSpace® Spatial Audio Software into Nothing's upcoming audio products, including the Nothing Headphone (1) [1][2][4] - This partnership aims to enhance the listening experience by providing cinematic 3D sound with dynamic head tracking, aligning with Nothing's design-first approach [4][5][6] Company Overview - Nothing, founded in London in 2020, focuses on creating innovative consumer technology that emphasizes design and user experience, having sold over 10 million devices and generated over $1 billion in lifetime revenue [7] - Ceva, Inc. specializes in silicon and software IP for smart edge applications, powering over 19 billion smart edge products globally, including advanced wireless communications and Edge AI technologies [9][10] Product Details - The Nothing Headphone (1) represents Nothing's first entry into the over-ear audio device market, aiming to deliver an immersive audio experience [1][2][4] - Ceva's RealSpace technology is designed for low power consumption and efficient integration into wireless audio devices, enhancing the overall audio experience [5][6] Strategic Goals - The collaboration is part of Nothing's mission to redefine user engagement with audio across music, movies, and games, leveraging Ceva's spatial audio technology [4][6] - Both companies aim to push the boundaries of audio technology, creating a more emotional and immersive listening experience for users [5][6]

CEVA (CEVA) FY Conference Summary Company Overview - CEVA is an IP licensing company, similar to ARM, focusing on technology licensing and earning royalties for each unit sold [3][4] - The company enables three primary use cases: Connect, Sense, and Infer, with a strong emphasis on wireless connectivity, DSP capabilities, and AI accelerators [3][4][6] Core Offerings - CEVA's technology supports a wide range of wireless connectivity including Wi-Fi, Bluetooth, cellular, IoT, and 5G [3][4] - The company has enabled over 20 billion devices, with an annual shipment of approximately 2 billion devices [4] - CEVA's Smart Edge technology integrates connectivity, sensing, and inference capabilities into edge devices [6][7] Market Segmentation and Growth Outlook - CEVA targets six end markets: PC, mobile, automotive, wireless infrastructure, consumer IoT, and industrial IoT [13] - The mobile segment is expected to see significant growth, with a new large U.S. mobile OEM adopting CEVA's technology for their 5G modem [14] - CEVA is currently shipping over 1 billion Bluetooth devices annually, with growth anticipated in Wi-Fi and cellular IoT [15] - The company holds approximately 15% market share in mobile, with expectations to exceed 20% [16] Competitive Landscape - CEVA faces competition primarily from the "make versus buy" decision of customers, with limited direct competition in wireless communication IP [19][20] - The company aims to become the de facto standard for wireless communication, similar to ARM's position in the CPU market [20] Growth Drivers - Short-term growth drivers include increased licensing for next-generation Bluetooth and Wi-Fi technologies [23] - Long-term growth is expected from the transition to smart devices with AI inference capabilities, moving from cloud-based to hybrid models [24] - CEVA anticipates growth in the automotive sector as their Vision AI DSP technologies ramp up in production [27][28] Software Portfolio and Integration - CEVA provides a complete software stack alongside its silicon IP, enhancing interoperability and user experience [31][32] - Investments in embedded software applications for sensor fusion and contextual awareness are aimed at differentiating CEVA's offerings [32] Geographic Strategy and Tariff Impact - CEVA benefits from localization trends, as it does not ship final products and thus is less impacted by tariffs [39][42] - The company serves both Western and Eastern markets successfully, with an increasing demand for IP [40] Financial Performance and Margins - CEVA maintains gross margins above 85%, with a focus on high-margin IP business [44][45] - The company is committed to organic and inorganic growth, with potential M&A opportunities to expand its IP portfolio [48][50] Conclusion - CEVA is positioned for significant growth in the coming years, driven by its strong market presence in mobile and wireless technologies, innovative software solutions, and strategic geographic positioning. The company aims to maintain high gross margins while expanding its IP offerings to meet the evolving needs of its customers [49][51]

Group 1 - The company operates on a principle that emphasizes simplicity and common sense as drivers of success [1] - The hedge fund is built with a clear purpose, disciplined focus, and aims for consistent alpha generation [1] - The investment approach is fully quantitative, relying on a model that provides stock recommendations without human interference [1] Group 2 - The motto "invest first, investigate later" reflects the company's strategy of purchasing based on model suggestions before conducting further research [1] - The company discourages human influence in stock selection to ensure decisions are data-driven and free from individual bias [1]

Revenue Performance - Total revenues for Q1 2025 were $24.2 million, representing a 10% increase compared to Q1 2024[95]. - The five largest customers accounted for 56% of total revenues in Q1 2025, up from 45% in Q1 2024[96]. - Licensing and related revenues increased, while royalty revenues decreased, impacting overall revenue growth[95]. - Licensing and related revenues increased by 32% to $15.0 million in Q1 2025, accounting for 62% of total revenues, up from 52% in Q1 2024[98][102]. - Royalty revenues decreased by 14% to $9.2 million in Q1 2025, representing 38% of total revenues, down from 48% in Q1 2024[103][105]. Market Outlook - The addressable market for Bluetooth, Wi-Fi, UWB, and cellular IoT is expected to exceed 16.5 billion devices annually by 2029[89]. - The company anticipates a low-single digits revenue growth for 2025, down from a high-single digits range due to macroeconomic conditions[93]. - The company expects continued growth in connectivity products, particularly in Bluetooth, Wi-Fi, and cellular IoT business lines[92]. Product Development and Innovation - In Q1 2025, the company signed eleven IP licensing deals, including significant agreements for Wi-Fi 7 and NeuPro-M Edge AI NPU[87]. - The PentaG2 platform and DSPs for 5G mobile broadband are positioned as comprehensive solutions for various connected devices[89]. - The NeuPro-M AI NPUs are designed to enable generative and classic AI across a wide range of devices, with a projected shipment of over 6 billion Edge AI hardware units annually by 2030[89]. - The MotionEngine software has shipped in over 400 million devices, indicating strong market traction[90]. - Eleven IP licensing agreements were concluded in Q1 2025, including deals for Edge AI NPU and Wi-Fi 7 connectivity[101]. Financial Performance - The company reported sales of 420 million chipsets incorporating its technologies in Q1 2025, a 13% increase from Q1 2024[104]. - Gross margin for Q1 2025 was 86%, down from 89% in Q1 2024, primarily due to higher cost of revenues[108]. - Total operating expenses rose to $25.1 million in Q1 2025, compared to $24.5 million in Q1 2024, driven by higher salaries and professional services costs[109]. - Research and development expenses decreased to $17.6 million in Q1 2025, representing 73% of total revenues, down from 82% in Q1 2024[110]. - Financial income, net increased to $2.10 million in Q1 2025, up from $1.26 million in Q1 2024, with a foreign exchange gain of $0.60 million[117][119]. Cash and Investments - The company had approximately $158.3 million in cash, cash equivalents, bank deposits, and marketable securities as of March 31, 2025, down from $163.6 million at the end of 2024[131]. - Total cash, cash equivalents, bank deposits, and marketable securities amounted to $158.3 million, with $134.3 million held by foreign subsidiaries[132]. - Cash used in operating activities for Q1 2025 was $7.4 million, consisting of a net loss of $3.3 million and adjustments for non-cash items of $4.4 million[135]. - Net cash provided by investing activities for Q1 2025 was $6.2 million, compared to $5.1 million for the same period in 2024[138]. - Net cash provided by financing activities for Q1 2025 was $1.4 million, an increase from $0.3 million in Q1 2024[139]. - Unrealized losses associated with investments were approximately $0.8 million as of March 31, 2025, due to changes in the interest rate environment[148]. - Interest income and net gains and losses from marketable securities were $1.50 million for Q1 2025, reflecting higher yields compared to $1.45 million in Q1 2024[149]. - Cash flows from operating activities are primarily affected by payroll-related costs and obligations under property leases and design tool licenses[137]. - The company believes its cash and cash equivalents, short-term bank deposits, and marketable securities will provide sufficient capital for at least the next 12 months[142]. - The company occasionally evaluates potential acquisitions, which may require substantial capital resources and additional financing[143]. - A foreign exchange gain of $600,000 was recorded for Q1 2025, compared to a loss of $193,000 for the same period in 2024[145]. Workforce and R&D - The number of research and development personnel decreased to 325 as of March 31, 2025, from 331 a year earlier[111].

Financial Data and Key Metrics Changes - Total revenue for the quarter was $24.2 million, an increase of 10% year over year from $22.2 million [15] - Licensing revenue increased by 32% to $15 million, representing 62% of total revenues, compared to $11.4 million in the same quarter last year [15] - Royalty revenue decreased by 14% to $9.2 million, accounting for 38% of total revenue, down from $10.7 million in the same quarter last year [16] - GAAP net loss for the first quarter was $3.3 million, with a diluted loss per share of $0.14, compared to a net loss of $5.4 million and a diluted loss per share of $0.23 in the same quarter last year [18] Business Line Data and Key Metrics Changes - Licensing revenue was $15 million, with 11 deals concluded in the quarter, including strategic agreements in connectivity, sensing, and edge AI [6][15] - WiFi royalty revenue grew by 183% year over year, driven by a shift towards WiFi 6, which commands a higher average selling price (ASP) compared to previous generations [12][20] - Shipments of Bluetooth units were 233 million, up 15% from 202 million in the first quarter of the previous year [19] Market Data and Key Metrics Changes - Shipments by CEVA licensees during the first quarter totaled 420 million units, up 13% from the first quarter of the previous year [19] - Consumer IoT market shipments increased by 19% year over year, while industrial IoT shipments rose by 26% [19] - The company anticipates sequential growth in royalties due to the seasonality and expansion of CEVA-powered 5G smartphone modems [21] Company Strategy and Development Direction - The company aims to continue innovating for customers, deepen technology leadership, and build a strong future royalty stream while managing expenses [13] - CEVA is focused on expanding its market share in wireless communication IP and diversifying its royalty customer base [3][21] - The company is adopting a more cautious outlook for the rest of the year, lowering 2025 revenue guidance from a high single-digit range to a low single-digit range for growth over 2024 annual revenues [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is no direct impact from tariffs, the indirect impact on consumer demand has increased uncertainty [22] - The company remains optimistic about the long-term potential of its royalty business despite a decline in overall revenue [11] - Management expressed confidence in navigating short-term volatility while focusing on being the IP partner of choice for smart edge devices [13] Other Important Information - The company reported a GAAP operating loss of $4.4 million, down from a loss of $5 million in the same quarter a year ago [17] - Total gross operating expenses for the first quarter were at the low end of guidance at $25.1 million [16] - The company has a cash balance of approximately $158 million as of the end of the first quarter [20] Q&A Session Summary Question: Can you say whether the ADAS win was with a tier one supplier? - Management confirmed that the design win was with a tier one supplier that has secured OEM customers, and it will be part of their next-generation platform [26][27] Question: Is there a similar increase in ASPs with WiFi 7 as seen with WiFi 6? - Management indicated that there is expected to be a significant uplift in ASPs as customers transition from WiFi 6 to WiFi 7, similar to the previous transition [28][30] Question: What competitive environment surrounded the ADAS win? - Management explained that the market is migrating to more advanced models using vision transformers, which require power-efficient solutions with low latency, areas where their technology excels [36] Question: Was the softness in the low-end smartphone market related to tariffs? - Management clarified that the softness was due to supply chain issues and not directly related to tariffs, and they expect a ramp-up in the second quarter [42][44] Question: Is there any impact on the licensing environment due to macro uncertainties? - Management stated that while there is cautious sentiment among customers, they have not seen a decrease in their licensing pipeline [76] Question: Are WiFi royalty units ramping up similarly to Bluetooth? - Management expressed optimism about the ramp-up of WiFi royalty units, noting that many customers are successfully integrating WiFi 6 technology into production [78]