Ceva (NASDAQ:CEVA) reported fourth-quarter and full-year 2025 results that management described as a “landmark year,” highlighted by record quarterly revenue, expanding activity in AI-focused neural processing unit (NPU) licensing, and continued strength in wireless connectivity IP.
Record fourth-quarter revenue driven by licensing and royalties
For the fourth quarter of 2025, CEVA posted revenue of $31.1 million, an all-time quarterly record, up 7% year-over-year and 10% sequentially, according to CFO Yaniv Arieli. Licensing and related revenue rose 11% year-over-year to $17.5 million, representing 56% of total revenue, while royalty revenue increased 2% year-over-year to $13.8 million, or 44% of revenue.
AI licensing momentum highlighted by a PC OEM NPU win
CEO Amir Panush said CEVA signed 18 licensing agreements in the fourth quarter, including three NPU licensing deals, multiple Wi-Fi 7 and combo connectivity wins, and a “meaningful software engagement.” Five of the 18 deals were with OEMs, management said.
Panush emphasized a key milestone: an NPU licensing agreement with “one of the world’s leading PC OEMs” for its next-generation AI personal compute architecture. In the Q&A, management clarified the OEM is integrating CEVA’s NPU IP into an SoC platform it is building. Panush said the customer wanted internal integration between hardware and software to drive high performance, and CEVA’s NPU offering was selected based on performance metrics such as performance per watt and throughput and latency considerations.
Management also discussed broader NPU momentum in 2025, stating the company signed 10 new NPU agreements during the year. Arieli added that a company press release issued the same morning indicated six NPU customers signed over the last one to two years “should be ready in production by the end of the year,” with potential royalty contribution “in the beginning of 2027.” He noted that AI processor licensing represented “just over 20%” of licensing revenue in 2025 for the first time.
Connectivity and sensing wins, plus a rebound in royalties
In connectivity, management pointed to continued demand for Bluetooth and Wi-Fi IP as customers upgrade to Wi-Fi 7 and Bluetooth high data throughput. Panush said fourth-quarter licensing activity included Wi-Fi 7 for IoT, a multi-use Bluetooth HDT agreement, and three Bluetooth/Wi-Fi combo wins. He highlighted a deal with the semiconductor division of a large white goods manufacturer that licensed CEVA’s Wi-Fi 6 and Bluetooth IP for a combo connectivity chipset to support smart home applications.
On sensing, Panush cited a software licensing agreement with a “leading TV platform” planning to integrate CEVA’s motion engine technology into a smart TV operating system used by multiple global TV brands.
CEVA also described the fourth quarter as its “strongest royalty quarter in more than four years,” with smart edge growth offsetting softness in mobile. The company reported record quarterly Wi-Fi shipments of 86 million units, up roughly 30% year-over-year, and quarterly cellular IoT shipments that management said rose year-over-year. Arieli said IoT shipments were a quarterly record of 60 million units, up 30%, and that Bluetooth shipments were 303 million units in the quarter, down from 343 million a year earlier.
Management noted a recovery from a China-based handset customer during the quarter, but said memory pricing and supply constraints continued to impact smartphone shipments.
Full-year 2025: record device shipments and increased licensing activity
For full-year 2025, CEVA reported total revenue of $109.6 million, up 2%. Licensing and related revenue increased 6%, while royalty revenue declined 2%, which management attributed primarily to smartphone softness and memory-related supply shortages affecting unit shipments. Panush said royalties grew sequentially each quarter, ending the year with the strongest royalty quarter in more than four years.
CEVA said CEVA-powered devices shipped in 2025 reached a record 2.1 billion units, up 6% year-over-year, and that cumulative shipments surpassed 21 billion units by the end of the fourth quarter. During the year, the company signed 54 licensing agreements, including 10 OEM agreements, and said 12 customers licensed multiple CEVA technologies.
Panush also stated that, based on signed agreements and visibility into customer roadmaps, management estimates those deals represent an aggregated lifetime royalty potential of $125 million over the expected product life, while cautioning that realization depends on customer deployment and adoption timelines.
2026 outlook: revenue growth expected, FX headwinds noted
Looking ahead, Arieli guided for 2026 total revenue growth of 8% to 12% over 2025, with lower growth expected in the first half and higher growth in the second half, consistent with prior seasonal trends and subject to memory pricing and supply conditions.
For the first quarter of 2026, CEVA forecast revenue of $24 million to $28 million, with GAAP gross margin of about 86% and non-GAAP gross margin of about 87%, reflecting lower seasonal royalties. GAAP operating expenses were guided to $27.6 million to $28.6 million, with non-GAAP operating expenses of $22.2 million to $23.2 million. The company guided for first-quarter net income of approximately $1.7 million and taxes of about $1.3 million.
On expenses, Arieli said CEVA expects its 2026 non-GAAP expense base (including cost of goods and operating expenses) to rise only 1% to 3% excluding currency impacts, but flagged foreign exchange headwinds from a stronger euro and Israeli shekel. He said non-U.S. dollar-based expenses are expected to increase by approximately 10% year-over-year, representing an incremental impact of around $5 million. Including FX effects, CEVA expects total non-GAAP expenses in 2026 to be $104.4 million to $108.4 million.
The company also said it anticipates non-GAAP operating income and non-GAAP net income to increase by approximately 35% to 40% year-over-year.
On the balance sheet, CEVA ended the year with approximately $222 million in cash, cash equivalents, marketable securities, and bank deposits. Arieli noted that during the fourth quarter the company completed a 3.5 million share follow-on offering that generated about $63 million net to strengthen the balance sheet, and management discussed interest in pursuing non-organic growth opportunities in the IP domain.
About Ceva (NASDAQ:CEVA)
Ceva, Inc (NASDAQ: CEVA) is a leading licensor of signal processing IP cores and platforms that enable intelligent, connected devices. The company designs a broad portfolio of digital signal processing (DSP) and AI processors, software development toolkits and reference frameworks for applications ranging from 5G wireless communications and Bluetooth connectivity to audio, computer vision, sensor fusion and edge AI. Its solutions target a variety of end markets including smartphones, automotive, IoT devices, smart home, industrial automation and wearable electronics.
Founded in 1999 as a spin-off from DSP Group, Ceva has built its reputation on delivering modular, power-efficient IP that can be customized to meet stringent performance, area and power requirements.
