Ceva, Inc. Reports $27M Revenue in Q1 2026, 11% Increase Driven by Licensing Growth

Ceva, Inc. reported a total revenue of $27.0 million for the first quarter of 2026, marking an 11% increase from $24.2 million in the same period last year. The growth was primarily driven by a significant rise in licensing and related revenues, which reached $17.8 million, an 18% increase year-over-year. This quarter was noted as the strongest for licensing in three years, reflecting heightened customer engagement and a robust pipeline. Royalty revenues remained stable at $9.2 million, consistent with the previous year, accounting for 34% of total revenues.

The company's financial performance also revealed a net loss of $4.5 million for the first quarter of 2026, compared to a loss of $3.3 million in the same quarter of 2025. The increase in net loss was attributed to higher operating expenses, which rose to $28.4 million from $25.1 million year-over-year. This increase was largely due to higher salaries and employee-related costs, as well as increased non-cash equity-based compensation expenses. The gross margin remained stable at 86%, unchanged from the prior year, indicating effective cost management despite rising expenses.

Operationally, Ceva signed 14 new IP licensing agreements during the quarter, including significant multi-technology engagements that highlight the growing adoption of integrated solutions. The company continues to dominate the wireless connectivity IP market, commanding a 68% market share as of 2024. The first quarter also saw 458 million Ceva-powered device shipments, a 9% increase from the previous year, with notable growth in Wi-Fi and cellular IoT shipments. The company’s strategic focus on Physical AI, which integrates connectivity, sensing, and inference, positions it well for future growth in various sectors, including consumer IoT and automotive.

Looking ahead, Ceva anticipates continued revenue growth, projecting an increase of 8% to 12% year-over-year for 2026. The company is optimistic about its licensing pipeline, particularly in AI-related applications, which accounted for over 20% of licensing revenues in the first quarter. However, Ceva also acknowledged potential challenges, including macroeconomic conditions and seasonal fluctuations in demand, particularly in the mobile sector. The company remains committed to expanding its geographic footprint, particularly in Europe and the U.S., to diversify its revenue streams and enhance resilience against market volatility.