CEVA(CEVA) - 2025 Q2 - Quarterly Results

Company Announcement & Executive Summary This section provides an overview of Ceva, Inc.'s Q2 2025 financial performance, key operational achievements, and strategic highlights, including revenue figures, net loss, and significant business milestones Announcement and Business Overview Ceva, Inc. announced its second quarter financial results for the period ended June 30, 2025, highlighting its role as a leading silicon and software IP licensor enabling reliable, efficient smart edge devices - Ceva, Inc. (NASDAQ: CEVA) announced its second quarter financial results for the period ended June 30, 2025[1][2] - The company is a leading silicon and software IP licensor, enabling smart edge devices to reliably, efficiently connect, sense, and infer data[2] Second Quarter 2025 Financial Highlights Ceva's Q2 2025 total revenue was $25.7 million, down 9.7% year-over-year but up 6% sequentially, with GAAP net loss widening to $3.7 million and non-GAAP net income decreasing by 57.1% | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | QoQ Change | | :------------------- | :------------------- | :------------------- | :--------- | :--------- | | Total Revenue | 25.7 | 28.4 | -9.7% | +6% | | Licensing and Related Revenue | 15.0 | 17.3 | -13.3% | - | | Royalty Revenue | 10.7 | 11.2 | -4.5% | Sequentially Increased | | GAAP Net Loss | (3.7) | (0.3) | Widened | - | | GAAP Diluted Loss Per Share | (0.15) | (0.01) | Widened | - | | Non-GAAP Net Income | 1.8 | 4.2 | -57.1% | - | | Non-GAAP Diluted Earnings Per Share | 0.07 | 0.17 | -58.8% | - | Operational and Strategic Achievements Ceva's AI business expanded with four new NPU agreements and 13 IP licensing deals, reaching 20 billion Ceva-powered device shipments and repurchasing 300,000 shares - AI business continued to expand, signing four new NPU agreements this quarter, marking a critical moment for customer adoption[4][6] - A total of 13 IP licensing agreements were concluded this quarter, covering a wide range of markets and applications including edge AI NPU, V2X communication, 4D radar, Bluetooth, and spatial audio[4] - Five agreements were signed with first-time customers, and four with OEM customers[4] - Ceva-powered device shipments surpassed the 20 billion unit milestone, with 488 million units shipped this quarter, including record cellular IoT and Wi-Fi 6 shipments[4][6] - 300,000 shares of Ceva stock were repurchased this quarter, valued at approximately $6.2 million[6][8] GAAP Financial Results This section presents Ceva's GAAP financial performance, including interim condensed consolidated statements of loss and key GAAP metrics for Q2 and H1 2025, detailing revenue, gross profit, and net loss Interim Condensed Consolidated Statements of Loss In Q2 2025, Ceva's total revenue was $25.7 million, a decrease year-over-year, resulting in a GAAP gross profit of $22.1 million, an operating loss of $4.5 million, a net loss of $3.7 million, and a diluted loss per share of $0.15 Ceva, Inc. Interim Condensed Consolidated Statements of Loss (GAAP) | Metric (Thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :------- | :------- | :------- | :------- | | Revenue: | | | | | | Licensing and Related Revenue | 15,022 | 17,278 | 30,064 | 28,692 | | Royalty | 10,656 | 11,159 | 19,859 | 21,817 | | Total Revenue | 25,678 | 28,437 | 49,923 | 50,509 | | Cost of Revenue | 3,549 | 2,933 | 7,036 | 5,436 | | Gross Profit | 22,129 | 25,504 | 42,887 | 45,073 | | Operating Expenses: | | | | | | Research and Development, net | 18,758 | 18,758 | 36,367 | 36,749 | | Selling and Marketing | 3,322 | 3,095 | 6,771 | 5,911 | | General and Administrative | 4,381 | 3,537 | 8,314 | 7,109 | | Amortization of Intangible Assets | 150 | 149 | 299 | 299 | | Total Operating Expenses | 26,611 | 25,539 | 51,751 | 50,068 | | Operating Loss | (4,482) | (35) | (8,864) | (4,995) | | Net Financial Income | 2,121 | 1,406 | 4,221 | 2,663 | | Revaluation of Tradable Equity Securities | (208) | (58) | (262) | (118) | | Loss (Income) Before Taxes | (2,569) | 1,313 | (4,905) | (2,450) | | Income Tax Expense | 1,135 | 1,604 | 2,126 | 3,289 | | Net Loss | (3,704) | (291) | (7,031) | (5,739) | | Basic and Diluted Net Loss Per Share | (0.15) | (0.01) | (0.30) | (0.24) | | Weighted Average Shares (Thousands): | | | | | | Basic and Diluted | 23,898 | 23,628 | 23,832 | 23,568 | Key GAAP Financial Metrics In Q2 2025, Ceva's total revenue decreased to $25.7 million from $28.4 million in Q2 2024, with both licensing and royalty revenues declining, GAAP gross margin falling to 86%, and GAAP operating and net losses significantly widening 2025年第二季度关键GAAP财务指标 (同比) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | 25.7 | 28.4 | -9.7% | | Licensing and Related Revenue | 15.0 | 17.3 | -13.3% | | Royalty Revenue | 10.7 | 11.2 | -4.5% | | GAAP Gross Margin | 86% | 90% | -4% | | GAAP Operating Loss | (4.5) | (0.04) | Loss Widened | | GAAP Net Loss | (3.7) | (0.3) | Loss Widened | | GAAP Diluted Loss Per Share | (0.15) | (0.01) | Loss Widened | Non-GAAP Financial Results This section outlines Ceva's non-GAAP financial performance, presenting key non-GAAP metrics for Q2 2025 and detailed reconciliations from GAAP measures, highlighting adjustments for stock-based compensation and other non-cash items Key Non-GAAP Financial Metrics In Q2 2025, Ceva's non-GAAP gross margin was 87%, non-GAAP operating income was $0.8 million, non-GAAP net income was $1.8 million, and non-GAAP diluted EPS was $0.07, all showing a decline year-over-year 2025年第二季度关键非GAAP财务指标 (同比) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | Non-GAAP Gross Margin | 87% | 91% | -4% | | Non-GAAP Operating Income | 0.8 | 4.4 | -81.8% | | Non-GAAP Net Income | 1.8 | 4.2 | -57.1% | | Non-GAAP Diluted Earnings Per Share | 0.07 | 0.17 | -58.8% | Reconciliation of GAAP to Non-GAAP Measures Ceva's non-GAAP metrics exclude stock-based compensation, acquisition-related intangible asset amortization, asset acquisition costs, and tradable equity securities revaluation losses to provide a clearer view of operating performance, significantly impacting net income, operating income, and gross profit Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | GAAP Net Loss | (3,704) | (291) | (7,031) | (5,739) | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Stock-based compensation expense (R&D) | 2,673 | 2,438 | 5,139 | 4,445 | | Stock-based compensation expense (selling and marketing) | 598 | 451 | 1,164 | 816 | | Stock-based compensation expense (general and administrative) | 1,465 | 820 | 2,597 | 1,816 | | Amortization of acquired intangible assets | 209 | 278 | 417 | 556 | | Asset acquisition related costs | 144 | 252 | 288 | 532 | | Revaluation loss of tradable equity securities | 208 | 58 | 262 | 118 | | Non-GAAP Net Income | 1,759 | 4,197 | 3,161 | 2,938 | Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | GAAP Operating Loss | (4,482) | (35) | (8,864) | (4,995) | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Stock-based compensation expense (R&D) | 2,673 | 2,438 | 5,139 | 4,445 | | Stock-based compensation expense (selling and marketing) | 598 | 451 | 1,164 | 816 | | Stock-based compensation expense (general and administrative) | 1,465 | 820 | 2,597 | 1,816 | | Amortization of acquired intangible assets | 209 | 278 | 417 | 556 | | Asset acquisition related costs | 144 | 252 | 288 | 532 | | Non-GAAP Operating Income | 773 | 4,395 | 1,066 | 3,564 | Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | GAAP Gross Profit | 22,129 | 25,504 | 42,887 | 45,073 | | GAAP Gross Margin | 86% | 90% | 86% | 89% | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Amortization of acquired intangible assets | 59 | 129 | 118 | 257 | | Non-GAAP Gross Profit | 22,354 | 25,824 | 43,330 | 45,724 | | Non-GAAP Gross Margin | 87% | 91% | 87% | 91% | - Non-GAAP gross margin, operating income, net income, and diluted EPS calculations exclude stock-based compensation, amortization of acquired intangible assets, asset acquisition costs, and revaluation losses of tradable equity securities[14][15][16] Management Insights This section provides management's perspective on Ceva's Q2 2025 performance, with commentary from the CEO on strategic achievements and AI business scaling, and the CFO on financial drivers and capital allocation CEO's Commentary CEO Amir Panush expressed satisfaction with Q2 results, driven by expanded AI licensing deals, strong execution across connectivity, sensing, and inferring use cases, and sequential royalty revenue growth, anticipating continued AI business scaling and sequential and year-over-year growth in H2 - Satisfied with second-quarter performance, primarily driven by expanded AI licensing deals and strong execution across the three pillar use cases of connectivity, sensing, and inferring[4] - AI business continues to scale, with four new NPU agreements signed this quarter, highlighting the growing demand for industry-leading edge AI technology[4] - The company has reached the milestone of 20 billion Ceva-powered device shipments, solidifying its leadership in wireless connectivity IP[4] - Anticipates the company's business will achieve sequential and year-over-year growth in the second half of the year[4] CFO's Commentary CFO Yaniv Arieli noted AI NPU demand supported licensing, with total licensing revenue exceeding $15 million for the fifth consecutive quarter, while royalty revenue saw continued growth in consumer IoT and record cellular IoT and Wi-Fi 6 shipments, affirming focus on expense management, profitability, and active share repurchase - AI NPU demand supported the quarter's licensing business, with total licensing revenue exceeding $15 million for the fifth consecutive quarter[8] - In terms of royalty revenue, consumer IoT shipments continued to grow, with cellular IoT and Wi-Fi 6 shipments reaching record highs[8] - The company will continue to focus on stringent expense management and improving profitability[8] - Actively executed the share repurchase program this quarter, repurchasing 300,000 shares valued at approximately $6.2 million[8] Financial Position This section details Ceva's financial position as of June 30, 2025, through its interim condensed consolidated balance sheets, outlining assets, liabilities, and shareholders' equity Interim Condensed Consolidated Balance Sheets As of June 30, 2025, Ceva's total assets were $302.8 million, a slight decrease from $308.9 million on December 31, 2024, with cash and cash equivalents increasing but tradable securities and short-term bank deposits decreasing, alongside a slight decline in total liabilities and total shareholders' equity Ceva, Inc. Interim Condensed Consolidated Balance Sheets (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :-------------- | | Assets: | | | | Current Assets: | | | | Cash and cash equivalents | 29,082 | 18,498 | | Tradable securities and short-term bank deposits | 128,422 | 145,146 | | Accounts receivable, net | 11,832 | 15,969 | | Unbilled accounts receivable | 24,851 | 21,240 | | Prepaid expenses and other current assets | 14,621 | 15,488 | | Total Current Assets | 208,808 | 216,341 | | Long-Term Assets: | | | | Severance pay fund | 7,864 | 7,161 | | Deferred tax assets, net | 1,630 | 1,456 | | Property and equipment, net | 6,484 | 6,877 | | Operating lease right-of-use assets | 4,645 | 5,811 | | Investment in tradable equity securities | 50 | 312 | | Goodwill | 58,308 | 58,308 | | Intangible assets, net | 1,460 | 1,877 | | Other long-term assets | 13,593 | 10,805 | | Total Assets | 302,842 | 308,948 | | Liabilities and Shareholders' Equity: | | | | Current Liabilities: | | | | Accounts payable | 1,771 | 1,125 | | Deferred revenue | 3,212 | 3,599 | | Accrued expenses and other payables | 17,749 | 23,207 | | Operating lease liabilities | 1,610 | 2,598 | | Total Current Liabilities | 24,342 | 30,529 | | Long-Term Liabilities: | | | | Accrued severance pay | 8,155 | 7,365 | | Operating lease liabilities | 2,755 | 2,963 | | Other accrued liabilities | 1,698 | 1,535 | | Total Liabilities | 36,950 | 42,392 | | Shareholders' Equity: | | | | Ordinary shares | 24 | 24 | | Additional paid-in capital | 267,743 | 259,891 | | Treasury stock | (5,874) | (3,222) | | Accumulated other comprehensive income (loss) | 344 | (1,330) | | Retained earnings | 3,655 | 11,193 | | Total Shareholders' Equity | 265,892 | 266,556 | | Total Liabilities and Shareholders' Equity | 302,842 | 308,948 | Corporate Information This section provides essential corporate information about Ceva, Inc., including its business focus on smart edge devices, IP portfolio, global presence, and important forward-looking statements with associated risk factors About Ceva, Inc. Ceva, Inc. innovates smart edge devices through wireless communication, sensing, and edge AI technologies, offering a broad IP portfolio including Bluetooth, Wi-Fi, UWB, 5G, scalable edge AI NPU, and sensor fusion solutions to enable a smarter, safer, and more connected world, headquartered in Rockville, Maryland, with global operations and a commitment to corporate citizenship - Ceva is dedicated to bringing innovation to smart edge devices through its wireless communication, sensing, and edge AI technologies[17] - The company offers the broadest IP portfolio, including wireless connectivity IP (Bluetooth, Wi-Fi, UWB, and 5G platform IP), scalable edge AI NPU IP, and sensor fusion solutions[17] - Ceva's technology powers over 20 billion smart edge products, including smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks[17] - Headquartered in Rockville, Maryland, the company boasts a global customer base and operational network, committed to being a responsible global corporate citizen[18][19] Forward-Looking Statements This press release contains forward-looking statements involving risks, uncertainties, and assumptions that could cause Ceva's actual results to differ materially from expectations, including industry competition, technology market acceptance, market demand changes, semiconductor industry cyclicality, revenue diversification, the Israel-Gaza conflict, and other SEC-filed risks, with Ceva disclaiming any obligation to update such statements - The press release contains forward-looking statements involving risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations[13] - Forward-looking statements include the continued scaling of the AI business, Ceva's position as a leader in wireless connectivity IP, and expectations for sequential growth in the second half of the year[13] - Risk factors include industry competition, technology market acceptance, changes in market demand, semiconductor industry cyclicality, ability to diversify revenue streams, the Israel-Gaza conflict, and other risks described in SEC filings[13] - Ceva undertakes no obligation to update any forward-looking statements or information[13] Investor Relations This section provides details for Ceva's Q2 2025 earnings conference call, including access information and replay options, along with key investor and public relations contact details Conference Call Details Ceva management will host a conference call on August 11, 2025, at 8:30 AM ET to discuss quarterly operating results, with dial-in and webcast options available, and a replay service provided - Ceva management will host a conference call on August 11, 2025, at 8:30 AM ET to discuss the quarter's operating results[9] - The conference call can be accessed via designated dial-in numbers (US participants: 1-844-435-0316, international participants: +1-412-317-6365, access code: Ceva) or through the webcast link: https://app.webinar.net/QYyg6d46Eeb[10](index=10&type=chunk)[12] - A replay will be available after the call by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 1439858), accessible until 9:00 AM ET on August 18, 2025, and also on Ceva's website[11] Contact Information Investors and public relations contacts include CFO Yaniv Arieli and VP of Market Intelligence, Investor & Public Relations Richard Kingston - Contacts include Ceva, Inc. CFO Yaniv Arieli (+972.9.961.3770, yaniv.arieli@ceva-ip.com) and VP of Market Intelligence, Investor & Public Relations Richard Kingston (+1.650.220.1948, richard.kingston@ceva-ip.com)[21]