CEVA(CEVA) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $28.4 million, an increase of 11% sequentially and 4% year-over-year[3]. - Licensing and related revenue for Q3 2025 was $16.0 million, up from $15.6 million in Q3 2024, while royalty revenue increased to $12.4 million from $11.6 million[3]. - GAAP gross margin for Q3 2025 was 88%, compared to 85% in Q3 2024, while non-GAAP gross margin improved to 89% from 87%[6][7]. - GAAP net loss for Q3 2025 was $2.5 million, compared to a net loss of $1.3 million in Q3 2024, with diluted loss per share of $0.10[6]. - Non-GAAP net income for Q3 2025 was $2.7 million, with diluted income per share of $0.11, down from $3.4 million and $0.14 in Q3 2024[7]. - GAAP operating loss for Q3 2025 was $2,084 million, an improvement from a loss of $2,624 million in Q3 2024, showing a decrease of 20.6%[26]. - Total non-GAAP operating income for Q3 2025 was $3,142 million, up from $2,114 million in Q3 2024, an increase of 48.3%[26]. - GAAP gross profit for Q3 2025 was $24,992 million, compared to $23,246 million in Q3 2024, reflecting a growth of 7.5%[26]. Revenue Breakdown - AI processor licensing contributed approximately one-third of licensing revenue in Q2 and Q3 2025, marking a significant milestone for the AI business[5][8]. - Royalty revenue grew 16% sequentially and 6% year-over-year, driven by record wireless IoT shipments[8]. Shareholder Activities - The company was active in its share repurchase program, buying back 40,295 shares for approximately $1 million in the quarter[8]. Asset and Liability Overview - Total current assets as of September 30, 2025, were $214,406 million, slightly down from $216,341 million at the end of 2024[28]. - Total liabilities decreased to $37,295 million as of September 30, 2025, from $42,392 million at the end of 2024, a reduction of 12.5%[28]. - Cash and cash equivalents were $17,270 million as of September 30, 2025, down from $18,498 million at the end of 2024[28]. - Total stockholders' equity increased to $268,719 million as of September 30, 2025, compared to $266,556 million at the end of 2024, an increase of 0.8%[28]. Strategic Developments - Ceva signed a strategic NeuPro NPU portfolio license with Microchip and three new AI DSP agreements, expanding its reach in consumer and automotive markets[4].