CEVA (CEVA) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $29.063M, up 2% YoY; record AI licensing and higher royalties supported growth, while powered-device shipments rose 8% to 623M.

• GAAP net loss was $2.3M; non-GAAP net income rose 39% YoY to $3.8M.

• A major U.S. customer’s modem ramp and expected Q4 licensing conversion support the growth outlook.

Financial highlights

• Licensing and related revenue increased 2% YoY to $16.3M; royalties rose 3% YoY and 18% sequentially to $12.7M.

• GAAP gross margin was 85% versus 88% YoY; non-GAAP gross margin was 86% versus 89%.

• GAAP operating loss was $3.5M versus $2.1M; non-GAAP operating income was $2.5M versus $3.1M.

• GAAP diluted loss per share was $0.08 versus $0.10; non-GAAP diluted EPS was $0.13 versus $0.11.

• 9M revenue was $85.120M, up 9% YoY; licensing and related revenue rose 14% to $52.4M, while royalties grew 2% to $32.7M.

Outlook and guidance

• Q4 revenue guidance is $34M–$38M; midpoint implies ~24% sequential growth, a quarterly record and ~11% FY 2026 revenue growth.

• Q4 GAAP gross margin is expected at ~88% and non-GAAP gross margin at 89%; non-GAAP OpEx guidance is $23.1M–$24.1M.

• Q4 non-GAAP diluted EPS is expected to more than double sequentially; outlook cites higher smartphone royalties, seasonality and licensing pipeline conversion.

• FY 2026 non-GAAP expense growth is expected at ~7%, or $7M, below prior expectations.

• Initial NeuPro royalties are expected ~year-end 2026 or early 2027; broader ramps are expected through 2027 and into 2028.