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]

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]

Financial Performance - Ceva, Inc. reported Q1 2025 revenue of $24.2 million, representing a 10% increase year-over-year from $22.1 million in Q1 2024 [2][4] - Non-GAAP diluted EPS for Q1 2025 was $0.06, up from a loss of $0.05 in the same quarter last year [2][7] - GAAP gross margin for Q1 2025 was 86%, down from 89% in Q1 2024 [6] - GAAP operating loss for Q1 2025 was $4.4 million, an improvement from a loss of $5.0 million in Q1 2024 [6] - GAAP net loss for Q1 2025 was $3.3 million, compared to a net loss of $5.4 million in Q1 2024 [6] Licensing and Revenue Streams - The company concluded 11 licensing agreements in Q1 2025, including deals for Wi-Fi 7, edge AI NPU for automotive ADAS, and spatial audio software for wireless headsets [5][8] - Licensing and related revenue for Q1 2025 was $15.0 million, up from $11.4 million in Q1 2024 [4] - Royalty revenue for Q1 2025 was $9.2 million, down from $10.7 million in Q1 2024 [4] Product and Market Developments - Ceva-powered shipments reached 420 million units in Q1 2025, marking a 13% increase year-over-year [8] - The company highlighted the successful ramp-up of a leading U.S. OEM's in-house 5G modem that integrates Ceva's IP [5][8] - The adoption of Wi-Fi 7 and new licensees for edge AI and spatial audio IPs are expected to drive future royalty growth [5] Management Commentary - The CEO expressed satisfaction with the progress in the licensing business and emphasized the importance of customer engagements across the IP portfolio [5] - The CFO noted a shortfall in royalty revenue due to lower low-cost smartphone shipments and slower product ramp-up from an industrial customer [8]