Ceva, Inc. Announces First Quarter 2025 Financial Results

ROCKVILLE, Md., May 7, 2025 — Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced its financial results for the first quarter ended March 31, 2025.

Total revenue for the first quarter of 2025 was $24.2 million, compared to $22.1 million reported for the first quarter of 2024. Licensing and related revenue for the first quarter of 2025 was $15.0 million, compared to $11.4 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2025 was $9.2 million, compared to $10.7 million reported for the first quarter of 2024.

Amir Panush, Chief Executive Officer of Ceva, commented: "I am pleased with the continued progress we made in our licensing business this quarter, further solidifying our edge AI strategy and reinforcing key customer engagements across our IP portfolio. While royalty revenue was below expectations, we are encouraged by the adoption and successful implementation of our IP in a leading U.S. OEM’s in-house 5G modem launched in the quarter. Additionally, the Wi-Fi 7 design win with a long-term wireless connectivity customer and new licensees for our edge AI and spatial audio IPs are incremental drivers for future royalty growth."

During the quarter, eleven IP licensing agreements were concluded, targeting a wide range of end markets and applications, including edge AI NPU for automotive ADAS, Wi-Fi 7 connectivity for AIoT, Bluetooth 6 and Wi-Fi 6 for combo connectivity products, 5G cellular IoT for industrial devices, audio for consumer devices and spatial audio for PC headsets. Two of the deals signed were with first-time customers.

GAAP gross margin for the first quarter of 2025 was 86%, as compared to 89% in the first quarter of 2024. GAAP operating loss for the first quarter of 2025 was $4.4 million, as compared to a GAAP operating loss of $5.0 million for the same period in 2024. GAAP net loss for the first quarter of 2025 was $3.3 million, as compared to a GAAP net loss of $5.4 million reported for the same period in 2024. GAAP diluted loss per share for the first quarter of 2025 was $0.14, as compared to GAAP diluted loss per share of $0.23 for the same period in 2024.

Non-GAAP gross margin for the first quarter of 2025 was 87%, as compared to 90% for the same period in 2024. Non-GAAP operating income for the first quarter of 2025 was $0.3 million, as compared to non-GAAP operating loss of $0.8 million reported for the first quarter of 2024. Non-GAAP net income and diluted income per share for the first quarter of 2025 were $1.4 million and $0.06, respectively, compared with non-GAAP net loss and diluted loss per share of $1.3 million and $0.05, respectively, reported for the first quarter of 2024.

Yaniv Arieli, Chief Financial Officer of Ceva, stated: "We experienced a shortfall in royalty revenue in the quarter due to a combination of soft low-cost smartphone shipments and an industrial customer who had a slower product ramp-up than in the prior year. We remain focused on operating efficiency and having the agility to navigate challenges arising from market uncertainty."

Ceva Conference Call

On May 7, 2025, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

The conference call will be available via the following dial in numbers:

• U.S. Participants : Dial 1-844-435-0316 (Access Code : Ceva)
• International Participants: Dial +1-412-317-6365 (Access Code: Ceva)

The conference call will also be available live via webcast at the following link: https://app.webinar.net/GvAklQElMmj. Please go to the web site at least fifteen minutes prior to the call to register.

For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 9176597) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 14, 2025. The replay will also be available at Ceva’s web site at www.ceva-ip.com.

About Ceva, Inc.

At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today’s most advanced smart edge products. From wireless connectivity IPs (Bluetooth, Wi-Fi, UWB and 5G platform IP), to scalable Edge AI NPU IPs and sensor fusion solutions, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple – to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 19 billion of the world’s most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.

Our headquarters are in Rockville, Maryland with a global customer base supported by operations worldwide. Our employees are among the leading experts in their areas of specialty, consistently solving the most complex design challenges, enabling our customers to bring innovative smart edge products to market.

Ceva is committed to being a responsible and respected global corporate citizen and a more sustainable company in the countries where we have operations and employees. We adhere to our Code of Business Conduct and Ethics and emphasize and focus on environmental controls, resource conservation and recycling and the welfare of our employees.

Visit us at www.ceva-ip.com.