CEVA’s Licensing Revenues Hit Three-Year High as Integrated AI and Connectivity Solutions Fuel Q1 Growth
Integrated Solutions Drive Record Q1 Licensing Revenues
CEVA, Inc. started 2026 with a clear highlight: its highest quarterly licensing and related revenues in three years, totaling $17.82 million, up 18% compared to the same period last year. This achievement comes amid strong growth in integrated solutions and edge AI adoption, underscoring CEVA's strategy to move beyond discrete IP products toward higher-value, system-level engagements.
Overall, first quarter revenues reached $27.02 million, an 11% rise year-over-year, as the company signed 14 new licensing agreements, including several multi-technology deals with existing customers. Chief Executive Officer Amir Panush emphasized that these milestones reflect CEVA's shift toward more complex, integrated connectivity and AI solutions, and a growing footprint in automotive and IoT applications.
AI and Smart Connectivity are Key Revenue Drivers
AI now represents over 20% of CEVA’s licensing and related revenues, supported by multiple recent agreements and a key milestone: the deployment of its AI DSP and accelerator in the Renesas R-Car V4H platform, which is entering production in the 2026 Toyota RAV4. Collaborations like the one with NXP for automotive processors showcase CEVA's relevance as the edge AI market matures.
The smart connectivity business also shined, with record Wi-Fi shipments and significant wins including a major high data throughput Bluetooth license (also featuring in-house RF technology) and Wi-Fi 7 and Wi-Fi 6/Bluetooth combo designs aimed at consumer IoT and AI-powered chip vendors.
Royalty and Financial Metrics Highlight Business Momentum
Royalty revenues totaled $9.20 million, broadly flat year-on-year but impacted by softness in smartphones offset by strong performance in smart edge, Wi-Fi, cellular IoT, and automotive AI. The business mix reflects robust demand for hybrid AI and more advanced connectivity frameworks, reinforcing long-term royalty growth potential.
| Metric | Q1 2026 | Q1 2025 | % Change |
|---|---|---|---|
| Total Revenues | $27.02M | $24.25M | +11% |
| Licensing & Related Revenues | $17.82M | $15.04M | +18% |
| Royalty Revenues | $9.20M | $9.20M | Flat |
| GAAP Gross Margin | 86% | 86% | – |
| Non-GAAP Gross Margin | 87% | 87% | – |
| GAAP Net Loss | $(4.46)M | $(3.33)M | Widened |
| Non-GAAP Net Income | $1.09M | $1.40M | -22% |
| Non-GAAP Diluted EPS | $0.04 | $0.06 | -33% |
Shift to Integrated, Multi-Technology Deals Supports Future Growth
This quarter’s 14 IP license agreements included not just new customers, but also marked deeper relationships with existing clients—securing additional wins for Bluetooth HDT, Wi-Fi 7, and Ultra-Wideband technology. The company also made strategic progress in satellite communications and expanded its market reach with new, system-level products.
AI and smart edge technologies have become focal points. These verticals brought in greater value per design and are reaching production milestones—strengthening the company’s confidence in its long-term royalty growth outlook. CFO Yaniv Arieli highlighted how multi-technology deals are boosting economics per agreement and improving forward visibility despite continued macroeconomic and currency headwinds.
Bottom Line: Integrated Solutions and Edge AI Position CEVA for Sustained Leadership
CEVA’s results reflect a pivotal quarter marked by growing demand for integrated AI and connectivity solutions, translating into record licensing performance and robust momentum in next-gen automotive, IoT, and consumer electronics. While GAAP profitability remains under pressure, the shift to higher-value agreements and strong customer engagement in emerging markets signal a sound foundation for future royalty and earnings growth. Investors and analysts will be closely watching CEVA’s execution on its deep pipeline of edge AI and system-level opportunities as the year progresses.
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