Ceva (CEVA) Q2 2026 Earnings Report

The call presented a largely positive operational and financial picture: strong revenue growth (+13% YoY), a notable 21% increase in licensing revenue, major strategic AI and platform wins, expanded product shipments (+16% device shipments), improved non-GAAP profitability (operating margin up to 11%) and raised full-year guidance. Headwinds included FX-related financial income shortfall, modest year-over-year royalty growth, declines in Bluetooth and industrial IoT unit shipments, and ongoing industry risks around memory pricing and supply constraints. On balance, the favorable licensing execution, strategic platform deals, improving royalties, margin expansion, and raised guidance outweigh the contained risks and near-term softness in some shipment categories.

CEVA raised its 2026 revenue outlook to growth of 13%–15% (up from prior guidance of 12%), expects the second half to be stronger than the first, and still anticipates total non‑operating cost of revenues and operating expenses to increase roughly 8% year‑over‑year; management now expects non‑GAAP operating income to rise ≈70% YoY and non‑GAAP net income to rise ≈50% YoY. For Q3 revenue is guided to $30.5M–$34.5M with gross margins of ~87% GAAP and ~88% non‑GAAP (including approximately $0.2M equity‑based compensation and $0.1M amortization of acquired intangibles); GAAP operating expenses are expected to be $28.2M–$29.2M (incl. ~$5.4M equity‑based comp, $0.1M amortization, $0.1M acquisition costs) and non‑GAAP operating expenses $22.5M–$23.5M (similar to Q2). Net financial income is expected to be about $2.0M, income tax expense about $1.9M, and weighted average diluted shares roughly 28.2M on a GAAP basis and 30.0M on a non‑GAAP basis.