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CEVA INC

CEVA
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Business Summary

Ceva operates in the semiconductor intellectual property (IP) industry, specifically enabling Physical AI across the connect, sense, and infer layers. The global Physical AI and Edge AI markets together are expected to reach approximately $170 billion by 2030 . The industry is characterized by rapidly evolving global standards such as 5G/5G-Advanced, Wi-Fi 7/8, Bluetooth 6/7, and UWB, alongside increasing complexity in embedded AI/ML workloads. Semiconductor companies face pressure to accelerate time-to-market and reduce engineering cost, widening the industry's 'design gap' and driving demand for licensable, production-proven IP. Ceva's technologies are embedded in approximately 2 billion devices annually , and devices incorporating Ceva IP have shipped in more than 20 billion units since 2003 .

Ceva holds the #1 worldwide market share in wireless connectivity IP in 2024 with 68% global share . Additional industry-leading positions include approximately 30% of worldwide Bluetooth IoT devices powered by Ceva , approximately 50% of all True Wireless Stereo (TWS) earbuds (non-Apple) integrating Ceva Bluetooth and audio IP , approximately 40% of worldwide cellular IoT devices built on Ceva modem and DSP platforms , and approximately 30% of global 5G networks using Ceva DSP technology for RAN baseband processing . Ceva's IP is adopted by seven of the world's top 10 MCU vendors . Primary competitors named include Arm, Cadence, Imagination Technologies, VeriSilicon, Andes Technology, SiFive, Expedera, Quadric, Digital Media Professionals (DMP), GlobalFoundries, Mindtree, Dolby, Waves, Dirac, and CyweeMotion.

Ceva operates under a licensing and royalty model. Licensing and related revenue consists of upfront fees for access to platforms, IP cores, software, and development tools, including customization services and technical support. Royalty revenue consists of recurring per-unit or percentage-based royalties on customer shipments incorporating Ceva IP. This model enables scalable, long-term revenue, technology reuse across markets, broad customer reach without manufacturing risk, and a sustainable R&D-driven growth engine. Customers include semiconductor and OEM companies that integrate Ceva technologies into their ASICs, ASSPs, and SoCs.

Ceva's technology portfolio is organized into three solution pillars. The Connect pillar includes wireless connectivity IP such as Ceva-Waves Bluetooth, Ceva-Waves Wi-Fi (supporting Wi-Fi 4 through Wi-Fi 7), Ceva-Waves UWB MAC/PHY IP, Ceva-Waves Links multi-protocol connectivity platforms, Ceva-Waves DragonFly cellular IoT modem platforms, Ceva-XC20 DSPs and PentaG2 platform for 5G/5G-Advanced, and PentaG-RAN for carrier-grade Layer-1 PHY processing. The Sense pillar includes Ceva-SensPro AI and Sensor Fusion DSPs, Ceva-MotionEngine IMU sensor-fusion software, Ceva-RealSpace spatial audio software, and Ceva-BX1/BX2 Audio & Control AI DSPs. Over 500 million devices have been powered to date by Ceva sensing and audio embedded software . The Infer pillar includes NeuPro-Nano ultra-efficient embedded NPU, NeuPro-M scalable high-performance NPU for generative AI and transformers, and NeuPro Studio SDK unified toolchain. Connectivity products accounted for 75% of total revenues in 2025 , while Sense & Infer products accounted for 25% .

In 2025, Ceva signed 54 IP licensing agreements , including ten NPU licensing agreements and close to thirty connectivity agreements . In the fourth quarter of 2025, Ceva signed 18 IP licensing agreements , including three NPU licensing agreements . Ceva completed a follow-on offering in November and December 2025, issuing 3,450,000 ordinary shares for aggregate net proceeds of $63.3 million . Ceva repurchased 340,295 shares of common stock at an average purchase price of $21.01 per share , for an aggregate purchase price of $7.2 million . As of December 31, 2025, 684,486 shares remained authorized for repurchase . Ceva entered into an operating lease agreement for new offices in Ra'anana, Israel, spanning 43,056 square feet , leased through 2035 with an option to extend for an additional five-year term . In January 2024, Ceva acquired a Greece-based radio frequency design company for approximately $753 paid at closing and approximately $2,100 contingent on continued employment and certain performance milestones .

Total revenues for fiscal year 2025 were $109.6 million , a 2.5% increase from $106.9 million in 2024. Licensing and related revenue was $63.6 million , a 6% increase from $60.0 million in 2024. Royalty revenue was $46.0 million , a 2% decrease from $46.9 million in 2024. Gross profit was $95.4 million compared to $94.2 million in 2024. Operating loss was $11.3 million compared to $7.5 million in 2024. Net loss from continuing operations was $10.6 million compared to $8.8 million in 2024. Diluted net loss per share from continuing operations was $0.44 compared to $0.37 in 2024. Ceva-powered shipments reached a record 2.1 billion units , up 6% year-over-year .

Business Outlook

A primary growth vector is the scaling adoption of NeuPro and SensPro AI families to address both embedded and generative AI at the edge. In 2025, Ceva signed ten NPU licensing agreements , including a comprehensive portfolio license with Microchip to adopt the full NeuPro NPU family across its roadmap and an engagement with a global PC and smart-device leader selecting NeuPro NPU IP for its next-generation AI personal compute architecture . Ceva estimates that the licensing agreements signed during 2025 represent an aggregate lifetime royalty potential of $125 million over their expected product lives . ABI Research projects that by 2030, over 50% of TinyML shipments will be powered by dedicated embedded AI hardware such as NeuPro-Nano . Bloomberg Intelligence forecasts $58 billion in computer vision AI hardware and $110 billion in conversational AI hardware revenues by 2032 .

Another growth vector is driving broader deployment of Wi-Fi 6/7, Bluetooth, UWB, and 5G-Advanced connectivity. Ceva secured Wi-Fi 7 agreements with two of its largest connectivity customers, who together have shipped more than 3 billion Ceva-powered devices . ABI Research projects more than 16.5 billion devices annually by 2029 . Ceva expects to begin commercial licensing of its Ceva-Waves Links new product line for Bluetooth and Wi-Fi radio technologies in 2026 . Ceva also aims to expand its customer base and revenues in Europe and the U.S. to complement its strong presence in the Asia-Pacific region .

Research and development expenses were $74.8 million in 2025, compared to $71.6 million in 2024. Ceva anticipates that research and development expenses will continue to increase in 2026 due to higher currency exchange expenses . Cost of revenues equaled 12.9% of total revenues for 2025 , compared to 11.9% for 2024 . The increase in cost of revenues reflected higher strategically beneficial customization and implementation work associated with strategic 5G-Advanced deals signed in the second half of 2024 .

Ceva's global development footprint comprises more than 400 R&D, support, and sales professionals . As of December 31, 2025, Ceva had 424 total employees , including 311 in research and development , 30 in sales and marketing , 51 in administration , and 32 in technical support . Ceva maintains development centers in France, Greece, Ireland, Israel, Serbia, and the United States . Ceva's R&D organization comprises more than 300 dedicated R&D professionals .

Ceva invested $109.1 million of cash in bank deposits and marketable securities during 2025 . Capital equipment purchases amounted to approximately $2.9 million in 2025 and $3.0 million in 2024 . Ceva repurchased 340,295 shares of common stock for an aggregate purchase price of $7.2 million in 2025. As of December 31, 2025, 684,486 shares of common stock remained authorized for repurchase under the share repurchase program . Ceva has historically not paid dividends and has no foreseeable plans to pay dividends .

Ceva faces headwinds from macroeconomic conditions, including a volatile interest rate environment, foreign currency exchange rate fluctuations, ongoing inflation, and changes in legislation and regulations including enacted and proposed tariffs and other trade policies . Ceva's royalty revenues were affected by end-market consumer demand dynamics, including the impact of memory pricing and supply constraints on the low-end smartphone market . Ceva anticipates that these factors may continue to impact consumer demand and royalty revenue growth expectations into 2026 . Ceva's operations in Israel remain largely unaffected by the war between Israel and Hamas that began on October 7, 2023, but the situation remains volatile with potential for renewed escalation .

Ceva faces constraints from the highly cyclical nature of the semiconductor industry, which experiences significant fluctuations in sales and profitability . The semiconductor industry may be negatively impacted by factors such as decreased consumer spending, macroeconomic uncertainty, and slow or negative economic growth . Ceva has previously experienced a reduction in revenue and operating losses during downturns in the semiconductor industry .

Risk Factors

Ceva relies significantly on revenues derived from a limited number of customers. Sales to UNISOC accounted for 15% of total revenues for both 2025 and 2024 . Two royalty paying customers collectively represented 39% of total royalty revenues for 2025 and 46% for 2024 . The loss of any significant customer could adversely affect near-term future operating results. Ceva has significant concentration of revenues in China, which accounted for 62% of total revenues for 2025 and 49% for 2024 . Any negative international political, economic, or geographic events in China could result in significant revenue shortfalls. Ceva's research and development expenses were approximately $74.8 million for 2025 and $71.6 million for 2024 , and the company may not achieve an acceptable return on these efforts. Ceva holds significant goodwill on its balance sheet related to strategic transactions, and if determined to be impaired, could incur impairment charges that negatively impact operating results .

Management Priorities

Management's message emphasizes Ceva's unique position as the leader in silicon and software IP enabling Physical AI across the connect, sense, and infer layers. Key themes include the accelerating adoption of on-device AI, the strength of the licensing and royalty flywheel, and record milestones in shipments and royalty performance. Management highlighted that 2025 was a landmark year, ending with record fourth-quarter revenue and the strongest royalty quarter in more than four years . Management noted that Ceva signed 54 IP licensing agreements during 2025 , including ten NPU licensing agreements , and that Ceva-powered shipments reached a record 2.1 billion units , up 6% year-over-year . Management stated that the licensing agreements signed during 2025 represent an aggregate lifetime royalty potential of $125 million over their expected product lives . Management emphasized that with leadership across connectivity, sensing and inference, record Wi-Fi and cellular IoT shipments, and more than 20 billion Ceva-powered devices shipped to date, Ceva enters 2026 in a position of strength .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Business Overview
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  9. [9] Item 1, Business — Strategy
  10. [10] Item 1, Business — Solutions Portfolio Overview
  11. [11] Item 7, MD&A — Results of Operations
  12. [12] Item 7, MD&A — Results of Operations
  13. [13] Item 7, MD&A — Business Overview
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  18. [18] Item 7, MD&A — Liquidity and Capital Resources
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  24. [24] Item 2, Properties
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  27. [27] Item 8, Note 1 — Organization and Significant Accounting Policies
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  29. [29] Item 8, Consolidated Statements of Loss
  30. [30] Item 7, MD&A — Results of Operations
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  46. [46] Item 7, MD&A — Current Trends
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  48. [48] Item 7, MD&A — Business Overview
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  56. [56] Item 1A, Risk Factors
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  58. [58] Item 8, Consolidated Statements of Loss
  59. [59] Item 8, Consolidated Statements of Loss
  60. [60] Item 7, MD&A — Results of Operations
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  64. [64] Item 1, Business — Company Overview
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  70. [70] Item 1, Business — Company Overview
  71. [71] Item 1, Business — Research and Development
  72. [72] Item 7, MD&A — Liquidity and Capital Resources
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  78. [78] Item 5, Market for Registrant's Common Equity
  79. [79] Item 7, MD&A — Current Trends
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  82. [82] Item 7, MD&A — Current Trends
  83. [83] Item 1A, Risk Factors
  84. [84] Item 1A, Risk Factors
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  86. [86] Item 7, MD&A — Results of Operations
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  91. [91] Item 8, Consolidated Statements of Loss
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  93. [93] Item 1A, Risk Factors
  94. [94] Item 7, MD&A — Results of Operations
  95. [95] Item 7, MD&A — Business Overview
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  97. [97] Item 7, MD&A — Current Trends
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  101. [101] Item 8, Consolidated Statements of Loss
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  115. [115] Item 7, MD&A — Liquidity and Capital Resources
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  119. [119] Item 7, MD&A — Provision for Income Taxes
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Analysis on 6/22/2026