CEVA (CEVA) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual revenues in 2025, with Q4 revenue reaching $31.3 million, driven by strong licensing and royalty performance across AI, connectivity, and sensing IP platforms.

• Expanded leadership in wireless connectivity and accelerated AI adoption at the smart edge, with significant NPU licensing wins, including a landmark deal with a leading PC OEM.

• Signed 54 licensing agreements in 2025, including 10 OEMs, 13 first-time customers, and 12 multi-technology deals.

• Shipped a record 2.1 billion devices in 2025, surpassing 21 billion cumulative units, with record Wi-Fi and Cellular IoT shipments.

• Diversified revenue base, with 86% from smart edge applications spanning consumer, automotive, industrial, and infrastructure markets.

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, the highest in over four years.

• Non-GAAP net income for Q4 rose to $4.9 million; non-GAAP diluted EPS was $0.18.

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

• Gross margin remained strong at 88% GAAP and 89% non-GAAP for Q4 and the year.

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.

• Management expects continued growth as AI adoption accelerates and the industry shifts toward Physical AI.