CEVA's third-quarter revenue rose 2% year over year to $29.1 million, below the $32.71 million analyst estimate. The company expects strong fourth-quarter 2026 revenue and profit, while record AI licensing revenue accounted for more than 35% of licensing and related revenue.
CEVA reported third-quarter revenue of $29.1 million, up 2% year over year and below the $32.71 million consensus estimate. The company posted a net loss of $2.3 million, or $0.08 per share, and adjusted gross margin of 86%.
Record AI licensing revenue contributed more than 35% of licensing and related revenue. Royalty revenue grew 3% year over year and 18% sequentially, driven by a modem ramp at a major U.S. customer and strength in IoT and connectivity, partly offset by weakness in memory-related consumer devices. CEVA signed 10 IP licensing deals, including expansions with new and existing customers in AI and connectivity.
The company expects strong revenue and profit in the fourth quarter of 2026. It sees a multi-year smartphone royalty growth opportunity through 2027 and beyond, and expects to begin earning initial NPU royalties as its AI business expands.
