Core Insights - Ceva, Inc. has launched PentaG-NTN, a 5G-NTN modem IP subsystem designed for satellite user terminals, facilitating faster deployment of satellite connectivity in LEO and MEO constellations [1][2] - The new modem IP aims to simplify the integration of cellular standards into satellite networks, addressing the complexities faced by satellite-native organizations [1][2] Group 1: Product Features and Benefits - PentaG-NTN is built on Ceva's third-generation PentaG platform, providing scalable 5G-Advanced modem IP for both satellite and terrestrial applications [1] - The modem subsystem supports performance from 10 Mbps to 2 Gbps, with features like 256-QAM modulation and compliance with 3GPP Release-18 for 5G-NTN [1][2] - It is designed to reduce modem silicon development time by approximately 65% and lower program costs by tens of millions of dollars compared to traditional methods [2] Group 2: Market Dynamics and Industry Impact - The rapid growth of satellite constellations is driving the integration of 5G into space-based networks, with satellite-focused organizations now needing to address cellular modem complexities [1] - Industry analysts highlight that the convergence of satellite and cellular ecosystems is breaking down traditional silos, allowing for cost efficiencies and scalability [1] - Ceva's PentaG-NTN aims to lower barriers for satellite innovators, enabling them to focus on differentiation while relying on a validated modem foundation [1][2] Group 3: Availability and Future Prospects - PentaG-NTN and PentaG-Edge are currently available for licensing, with Ceva showcasing these products at Mobile World Congress 2026 [2] - The platform is expected to support a wide range of satellite and terrestrial modem configurations, enhancing flexibility for licensees [2]

Core Insights - The company achieved the highest quarterly revenue in its history during Q4 2025, driven by an 11% increase in licensing revenue and broad demand across all technology pillars [1] - The strategic focus has transitioned toward 'Physical AI,' emphasizing the need for edge devices to connect, sense, and infer data locally in real-time for autonomous decision-making [1] - A significant NPU design win was secured with a top-tier PC OEM, validating the company's capability to provide high-performance, power-efficient AI silicon IP for next-generation computing [1] Revenue and Growth - The connectivity franchise expanded with record shipments in Wi-Fi and cellular IoT, which grew 48% and 42% year-over-year respectively, helping to offset softness in the mobile handset market [1] - The diversified 'Smart Edge' portfolio generated 86% of total revenue in 2025, reducing dependency on the volatile smartphone sector [1] Licensing and Agreements - The company demonstrated a 'licensing and royalty flywheel' by signing 54 agreements in 2025, with 12 customers licensing multiple technologies to address complex system requirements [1]

CEVA (NasdaqGS:CEVA) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsAlek Valero - Equity Research AssociateAmir Panush - CEORichard Kingston - VP of Investor RelationsRuben Roy - Managing DirectorYaniv Arieli - CFOConference Call ParticipantsKevin Cassidy - Senior Research AnalystSuji Desilva - Managing Director and Senior Research AnalystOperatorPlease note this event is being recorded. I would now like to turn the conference over to Richard Kingston, Vice President of Market Intel ...

Financial Data and Key Metrics Changes - In Q4 2025, CEVA achieved record revenue of $31.1 million, a 7% increase year-over-year, and a 10% sequential increase [17] - For the full year 2025, total revenue increased by 2% year-over-year to $109.6 million, with licensing and related revenue growing by 6% [10][23] - Non-GAAP net income for Q4 2025 increased by 86% year-over-year to $4.9 million, with diluted EPS rising by 71% to $0.18 [20] - GAAP net loss for Q4 2025 was $1.1 million, an improvement from a loss of $1.7 million in Q4 2024 [19] Business Line Data and Key Metrics Changes - Licensing revenue in Q4 2025 increased by 11% year-over-year to $17.5 million, representing 56% of total revenue [17] - Royalty revenue in Q4 2025 increased by 2% year-over-year to $13.8 million, accounting for 44% of total revenue [17] - AI procedural licensing became a significant portion of licensing revenue in 2025, reflecting the growing demand for AI technologies [7][13] Market Data and Key Metrics Changes - CEVA-powered devices shipped in 2025 reached a record 2.1 billion units, up 6% year-over-year, with Wi-Fi shipments growing by 48% and cellular IoT shipments by 42% [11][23] - Wi-Fi shipments in Q4 2025 reached a record high of 86 million units, up 30% year-over-year [21] - Bluetooth shipments for Q4 2025 were 303 million units, down from 343 million units in Q4 2024 [21] Company Strategy and Development Direction - CEVA is focused on strengthening its leadership in wireless connectivity and expanding into AI for smart edge applications [3][16] - The company aims to provide a comprehensive IP stack to enhance customer integration and increase the value per device [16] - CEVA's strategy includes diversifying its customer base across smart edge markets, which generated 86% of total revenue in 2025 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position entering 2026, highlighting strong fundamentals and a diversified business model [25] - The company anticipates total revenue growth of 8%-12% in 2026, with a focus on AI adoption and wireless connectivity [27] - Management acknowledged potential challenges from memory pricing and supply constraints but remains optimistic about market share gains [51][70] Other Important Information - CEVA celebrated reaching 20 billion cumulative devices shipped, exceeding 21 billion by the end of Q4 2025 [15] - The company executed a follow-on offering of 3.5 million shares for approximately $63 million to strengthen its balance sheet [24] Q&A Session Summary Question: Can you provide an idea of the scale of your NPU pipeline compared to last year? - Management noted significant market share gains in 2025, with over 10 new NPU deals and a healthy pipeline across various sub-markets [35][36] Question: Is the NPU for the PC OEM a separate chip or integrated into a CPU package? - The NPU is a separate chip that the OEM integrates into their SoC platform [37][38] Question: Can you discuss the competitive dynamics for the NPU win? - Management highlighted the need for best-in-class performance and the importance of internal integration for high-end compute devices [45][46] Question: What factors would need to improve for 2026 to trend toward the high end of your guidance? - Stronger licensing and royalty ramp-up, along with favorable currency exchange rates, could positively impact revenue [68][70]

FOURTH QUARTER AND FULL YEAR 2025 EARNINGS 2025 was a landmark year for Ceva and ended on a high note with record fourth-quarter revenue^ and our strongest royalty quarter in more than four years. Amir Panush, CEO 2 0 2 5 T O T A L R E V E N U E 2 0 2 5 E A R N I N G S ( L O S S ) P E R S H A R E A N N U A L R E V E N U E $109.6M +2% Year over Year ($0.44) GAAP versus ($0.37) in 2024 $0.42 NON-GAAP versus $0.36 in 2024 Q 4 ' 2 5 T O T A L R E V E N U E $31.3M Q 4 ' 2 5 E A R N I N G S ( L O S S ) P E R S H ...

Core Viewpoint - Ceva, Inc. has announced a public offering of 3,000,000 shares of its common stock at a price of $19.50 per share, aiming to raise approximately $58.5 million in gross proceeds before expenses [1][3]. Group 1: Offering Details - The public offering is expected to close on November 20, 2025, pending customary closing conditions [2]. - Ceva has granted underwriters a 30-day option to purchase an additional 450,000 shares at the public offering price [1]. - J.P. Morgan is the lead book-running manager, with UBS Investment Bank as the junior active book-running manager, and other firms acting as additional book-running managers [4]. Group 2: Purpose of the Offering - The primary purposes of the offering are to enhance financial flexibility, obtain additional capital, and increase the public float [3]. - Net proceeds from the offering will be used for potential acquisitions, investments in complementary technologies, working capital, capital expenditures, share repurchases, and other general corporate purposes [3]. Group 3: Regulatory Information - The offering is made under a shelf registration statement filed with the SEC, which became effective on August 16, 2024 [5]. - A preliminary prospectus supplement and accompanying prospectus have been filed with the SEC, with a final prospectus supplement to be made available [5].

Core Viewpoint - Ceva, Inc. has initiated a public offering of 3,000,000 shares of its common stock, with an option for underwriters to purchase an additional 450,000 shares, aimed at enhancing financial flexibility and funding potential acquisitions [1][2]. Group 1: Offering Details - The public offering consists of 3,000,000 shares, with a 30-day option for underwriters to buy an additional 450,000 shares [1]. - The shares are expected to be listed on the Nasdaq Global Select Market [1]. - J.P. Morgan is the lead book-running manager, with UBS Investment Bank as the junior active book-running manager, and several other firms acting as additional book-running managers and co-managers [3]. Group 2: Purpose of the Offering - The primary purposes of the offering are to increase financial flexibility, obtain additional capital, and enhance the public float [2]. - Net proceeds from the offering will be used for potential acquisitions, investments in complementary technologies, working capital, capital expenditures, share repurchases, and other general corporate purposes [2]. Group 3: Company Overview - Ceva, Inc. specializes in wireless communications, sensing, and Edge AI technologies, powering over 20 billion smart edge products globally [5]. - The company offers a broad portfolio of IP solutions for various applications, including AI-infused devices, IoT, and 5G mobile networks [5].

Group 1 - Ceva, Inc. will announce its third quarter 2025 results on November 10, 2025, before the NASDAQ market opens [1] - Following the results announcement, Ceva management will hold a conference call at 8:30 a.m. Eastern Time to discuss the quarter's operating performance [1] - The conference call will be accessible via dial-in numbers and a live webcast [2] Group 2 - A replay of the conference call will be available for those who cannot attend live, accessible by phone or on Ceva's website [3] - Ceva specializes in silicon and software IP for Smart Edge devices, focusing on wireless communications, sensing, and Edge AI technologies [4] - The company has a broad portfolio of IP solutions, powering over 20 billion smart edge products globally, including AI-infused smartwatches and autonomous vehicles [4] Group 3 - Ceva is headquartered in Rockville, Maryland, and has a global customer base supported by operations worldwide [5] - The company emphasizes sustainability and social responsibility, adhering to a Code of Business Conduct and focusing on environmental preservation and employee welfare [6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $25.7 million, down 10% from $28.4 million in Q2 2024 [15] - Licensing and related revenue totaled $15 million, representing 59% of total revenue, reflecting a 13% year-over-year decline [15][16] - Royalty revenue for the quarter was $10.7 million, accounting for 41% of total revenues, with a 16% sequential increase but a 5% year-over-year decrease [17][18] - GAAP net loss for Q2 was $3.7 million, with a diluted loss per share of $0.15, compared to a net loss of $0.3 million and diluted loss per share of $0.01 in the same period last year [19] Business Line Data and Key Metrics Changes - The company secured 13 license agreements, including five first-time customers and four OEM customers, indicating strong licensing execution [4] - Royalty revenue saw a sequential growth of 16%, driven by increased shipments from consumer and smartphone customers [11] - Consumer IoT shipments were up 21% sequentially and 60% year-over-year, reflecting strong demand [12] Market Data and Key Metrics Changes - Shipments by CEVA's licensees during Q2 2025 were 488 million units, up 16% sequentially and 6% year-over-year [20] - Cellular IoT shipments reached an all-time record high at 66 million units, up 66% year-over-year [21] - WiFi shipments were 62 million units, up 80% from 35 million units a year ago, with WiFi 6 shipments up 113% year-over-year [21] Company Strategy and Development Direction - The company aims to expand its NPU business into infrastructure and data center markets, indicating a strategic shift towards AI integration [9][13] - CEVA is focused on deepening relationships through multiple IP agreements, enhancing product capabilities and increasing royalty per device [6][10] - The company views the milestone of over 20 billion devices shipped as a launchpad for future growth in the Smart Edge Era [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the licensing pipeline and potential deal flow, particularly around Edge AI prospects [23] - The company anticipates stronger royalty revenue in the second half of the year due to seasonality and new product deployments [23][24] - Management reiterated confidence in achieving a double-digit percentage increase in non-GAAP net income and fully diluted non-GAAP EPS relative to 2024 [25] Other Important Information - Total GAAP operating expenses for Q2 were $26.6 million, above guidance due to higher employee-related benefits [18] - The company repurchased 300,000 shares for approximately $6.2 million during the quarter [22] - CEVA's cash and cash equivalents were approximately $157 million as of June [22] Q&A Session Summary Question: Will increased licensing in NPUs lead to higher royalty revenues? - Management confirmed that higher complexity in technology will lead to better economics and a meaningful increase in royalty per unit as these devices are deployed [28][29] Question: What is the expected timing for royalties from more complex designs? - Management indicated that the time from licensing to royalty reporting is typically 18 to 24 months, but may be shorter for consumer devices due to rapid market needs [30][31] Question: What is the outlook for flagship smartphone customers in 2026? - Management did not provide specific guidance for 2026 but expressed confidence in technology penetration and expected strong performance in the second half of the year [39][40] Question: What is the scalability of CEVA's AI offerings? - Management highlighted the scalability of their NPU solutions and the comprehensive software stack provided to customers, which supports various applications including edge and cloud inference [42][44] Question: What contributed to the decline in Bluetooth shipments this quarter? - Management noted that the decline was not due to specific issues but expected good sequential growth in the second half of the year as new Bluetooth technologies are adopted [57][58]

Core Insights - Ceva, Inc. has been recognized as the 1 vendor in Wireless Connectivity IP, achieving a market share of 68% in 2024, significantly outpacing its closest competitor by more than 10 times [1] - The company’s leadership in wireless connectivity IP is attributed to its comprehensive portfolio that includes Bluetooth, Wi-Fi, UWB, 802.15.4, and cellular IoT solutions, which are essential for the development of smart edge devices [1][3] Industry Trends - The convergence of wireless connectivity, on-device AI, and sensor fusion is driving the demand for smart edge devices, particularly in consumer and industrial SoCs and MCUs [2] - Local data processing is becoming crucial for real-time decision-making, reducing latency, preserving privacy, and enhancing energy efficiency in smart edge applications [2] Company Strategy - Ceva aims to build on its leadership by offering a unified IP portfolio that integrates wireless, sensing, and AI capabilities, facilitating innovation in the AIoT landscape [3] - The Ceva-Waves™ family provides a comprehensive wireless connectivity IP portfolio optimized for seamless integration into SoCs and MCUs, supporting both single and multi-standard configurations [3] Product Offerings - The Ceva-Waves platform includes the Ceva-Waves Dragonfly, a fully integrated solution for LTE-M and NB-IoT connectivity, suitable for low-power applications like asset tracking and smart metering [3] - Ceva has expanded its offerings to include RF IP, launching its first Bluetooth 7 RF IP on TSMC 12nm, alongside support for IEEE 802.15.4, reinforcing its commitment to delivering complete wireless solutions [3] Company Overview - Ceva is dedicated to innovation in the smart edge, providing a broad portfolio of wireless communications, sensing, and Edge AI technologies that power over 19 billion smart edge products globally [4] - The company focuses on delivering high-performance, low-power silicon and software IP solutions to create a smarter, safer, and more interconnected world [4]