CEVA (CEVA) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $31.3 million in Q4 2025, up 10% sequentially and 7% year-over-year, with the highest royalty quarter in over four years.

• Full-year 2025 revenue reached $109.6 million, up 2% year-over-year, driven by strong licensing and royalty performance across AI, connectivity, and sensing IP platforms.

• Signed 54 licensing agreements in 2025, including 10 OEM deals, 12 multi-technology licenses, and notable NPU wins with a leading PC OEM.

• Shipped a record 2.1 billion Ceva-powered devices in 2025, surpassing 21 billion cumulative units.

• Expanded leadership in wireless connectivity and accelerated AI adoption at the smart edge.

Financial highlights

• Q4 2025 revenue reached $31.3 million, up 7% year-over-year and 10% sequentially, marking an all-time high.

• Licensing revenue grew 11% year-over-year to $17.5 million; royalty revenue up 2% to $13.8 million.

• Q4 non-GAAP net income was $4.9 million (up 86% YoY); non-GAAP diluted EPS was $0.18 (up 71% YoY).

• Annual revenue increased 2% to $109.6 million; non-GAAP net income up 20% and diluted EPS up 17% year-over-year.

• Q4 GAAP gross margin was 88%; non-GAAP gross margin 89%.

Outlook and guidance

• 2026 revenue expected to grow 8%-12% over 2025, with stronger growth in the second half.

• Non-GAAP operating income and net income projected to increase 35%-40% year-over-year.

• Non-GAAP expenses for 2026 anticipated at $104.4-$108.4 million, with FX headwinds impacting costs.

• Q1 2026 revenue forecasted at $24-$28 million, reflecting typical post-holiday seasonality.

• Gross margin for Q1 2026 expected around 86%-87%.