Q2 2026 CEVA Inc Earnings Call Transcript
Key Points
- CEVA Inc (CEVA) delivered a strong second quarter with revenue increasing 13% year-over-year to $29 million, fueled by licensing revenue growing 21% to its highest level in three years.
- The company signed a strategically significant AI licensing agreement with a leading global AI and computing platform company for its NeuPro-M NPU IP, representing a new category of AI customers and enabling deeper collaboration.
- CEVA Inc (CEVA) is seeing a positive trend of customers adopting broader platform solutions, which increases content per design, deepens integration, and expands the long-term royalty opportunity.
- Royalty revenue showed a sequential recovery, driven by strong wireless connectivity growth, ramping automotive AI programs, and market share gains in smartphones, with Wi-Fi shipments up 28% year-over-year.
- The company raised its full-year 2026 revenue outlook to 13%-15% growth and expects non-GAAP operating income to increase approximately 70% year-over-year, reflecting strong operating leverage.
- CEVA Inc (CEVA) signed 10 licensing agreements in the quarter, including two with first-time customers and two directly with OEMs, demonstrating broad-based demand across the US, Europe, China, and Asia-Pacific.
- CEVA Inc (CEVA) experienced a sequential decline in Wi-Fi shipments in the second quarter, following several quarters of expansion, due to customer mix and product ramp timing.
- Bluetooth shipments decreased 16% year-over-year to 295 million units, indicating weakness in that specific connectivity segment.
- Industrial IoT shipments declined to 19 million units from 24 million units a year ago, although royalty revenues increased due to a richer product mix.
- The company faces potential headwinds from memory pricing dynamics and broader supply constraints, which could impact the mobile handset industry and second-half performance.
- Net financial income was below guidance at $1 million, primarily due to foreign exchange effects related to Israeli shekel-denominated lease obligations.
- The full-year guidance assumes normal seasonality and market share gains, but the company acknowledges uncertainty around the impact of the memory shortage on the wireless handset industry.
Good day and welcome to the CEVA Inc. second Quarter, 2026, earnings conference call. (Operator Instructions) Please note, today's event is being recorded.
I'd now like to turn the conference over to Richard Kingston, Vice President, Market Intelligence, Investor, and Public Relations. Please go ahead, sir.
Thank you, Rocco. Good morning, everyone, and welcome to CEVA's second quarter 2026 earnings conference call. Joining me today are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer.
Before handing the call over to Amir, I'd like to remind everyone that today's discussion contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such statements.
We will also discuss certain non-GAAP financial measures, which we believe provide investors with
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