Ceva (CEVA) Q3 2026 Earnings Report

The call was predominantly positive. CEVA reported record AI licensing revenue, record device shipments, strong sequential royalty growth, expanding connectivity and AI customer relationships, and a fourth-quarter outlook that would produce the highest quarterly revenue in company history. These developments outweighed the delayed third-quarter licensing agreement, weakness in compute-intensive consumer markets, lower gross margins, foreign exchange headwinds and the continued GAAP net loss.

For the fourth quarter, revenues are expected to be in the range of $34 million to $38 million, implying approximately 24% sequential revenue growth at the midpoint and the highest quarterly revenues in CEVA's history; non-GAAP diluted EPS is expected to more than double sequentially. Gross margin is expected to be approximately 88% on a GAAP basis and 89% on a non-GAAP basis, excluding approximately $0.2 million of equity-based compensation expense and $0.1 million of amortization of acquired intangibles; GAAP operating expenses are expected to be between $27.6 million and $28.6 million, including approximately $4.3 million of equity-based compensation expenses, $0.1 million of amortization of acquired intangibles and $0.1 million for acquisition-related costs, while non-GAAP operating expenses are expected to be between $23.1 million and $24.1 million. Net financial income is expected to be approximately $2 million, income tax expense approximately $1.8 million, and weighted average diluted share count approximately 30.1 million shares on GAAP and non-GAAP basis; full year 2026 revenue growth is implied at approximately 11%, and full year non-GAAP expense growth is expected to be approximately 7% or $7 million, below previous expectations.