Ceva, Inc. Announces Second Quarter 2025 Financial Results

Core Viewpoint - Ceva, Inc. reported its Q2 2025 financial results, highlighting a decline in revenue compared to the previous year but showcasing growth in AI licensing and device shipments, particularly in cellular IoT and Wi-Fi 6 technologies [2][3][4]. Financial Performance - Total revenue for Q2 2025 was $25.7 million, down from $28.4 million in Q2 2024, representing a year-over-year decrease of approximately 9.5% [3]. - Licensing and related revenue for Q2 2025 was $15.0 million, compared to $17.3 million in Q2 2024, a decline of about 13.3% [3]. - Royalty revenue for Q2 2025 was $10.7 million, down from $11.2 million in the same quarter of 2024, a decrease of approximately 4.5% [3]. Profitability Metrics - GAAP gross margin for Q2 2025 was 86%, down from 90% in Q2 2024 [5]. - GAAP operating loss for Q2 2025 was $4.5 million, compared to a loss of $0.04 million in Q2 2024 [5]. - Non-GAAP net income for Q2 2025 was $1.8 million, with diluted income per share of $0.07, compared to $4.2 million and $0.17 per share in Q2 2024 [6][14]. Licensing and Agreements - The company concluded 13 licensing agreements in Q2 2025, including 4 AI deals for the NeuPro product line and 2 strategic automotive IP agreements with U.S. companies [2][4]. - The AI business is scaling, with significant customer adoption reflected in the new NPU agreements signed during the quarter [4][7]. Device Shipments and Milestones - Ceva-powered device shipments reached 488 million units in Q2 2025, including record shipments in cellular IoT and Wi-Fi 6 technologies [2][8]. - The company surpassed the milestone of 20 billion Ceva-powered devices shipped, reinforcing its leadership in wireless connectivity IP [4][8]. Share Repurchase Program - During the quarter, Ceva repurchased 300,000 shares of its stock for approximately $6.2 million, indicating a commitment to returning value to shareholders [8][9].