Ceva, Inc. Reports $24.2 Million Revenue in Q1 2025, Driven by Licensing Growth

Ceva, Inc. reported a total revenue of $24.2 million for the first quarter of 2025, marking a 10% increase from $22.1 million in the same period of 2024. The growth was primarily driven by a significant rise in licensing and related revenues, which surged by 32% to $15.0 million, compared to $11.4 million in the prior year. However, royalty revenues experienced a decline of 14%, falling to $9.2 million from $10.7 million, largely due to a one-time revenue boost from a royalty audit resolution in the previous year. The company's net loss for the quarter was $3.3 million, an improvement from a loss of $5.4 million in the first quarter of 2024.

In terms of operational metrics, Ceva's five largest customers accounted for 56% of total revenues in Q1 2025, up from 45% in the same quarter of 2024. Notably, one customer represented 24% of total revenues, compared to two customers that accounted for 14% and 15% in the previous year. The company reported sales of 420 million chipsets incorporating its technologies, reflecting a 13% increase from the prior year. The geographic distribution of revenues showed strong performance in the Asia Pacific region, which contributed $19.2 million, up from $18.0 million in Q1 2024.

Strategically, Ceva has made significant strides in expanding its product offerings and customer base. The company concluded eleven IP licensing agreements in the first quarter, including notable deals for its Wi-Fi 7 and NeuPro-M Edge AI NPU technologies. These agreements are expected to enhance Ceva's position in the automotive and consumer electronics markets. The company also acquired a Greece-based radio frequency design firm in January 2024, further diversifying its technology portfolio.

Looking ahead, Ceva anticipates continued growth in its licensing and royalty revenues, although it has adjusted its revenue guidance for 2025 to a low-single-digit growth range, down from high-single digits. This cautious outlook is attributed to macroeconomic factors, including inflation and geopolitical tensions, which may impact customer demand and project timelines. Despite these challenges, Ceva remains optimistic about its long-term growth prospects, particularly in the consumer IoT, automotive, and industrial sectors, which are expected to represent a $5 billion total addressable market by 2027. The company believes its comprehensive portfolio of wireless communications and Edge AI technologies positions it well to capitalize on emerging market trends.