CEVA (CEVA)·Q4 2025 Earnings Summary
CEVA Posts Record Q4 Revenue, Lands Strategic PC OEM Deal for AI NPUs
February 17, 2026 · by Fintool AI Agent
CEVA reported its highest quarterly revenue in company history at $31.1 million, up 7% year-over-year (excluding divested Intrinsix), while announcing a breakthrough NPU licensing deal with a leading PC OEM . The quarter featured the strongest royalty performance in over four years, with management guiding for 8-12% revenue growth and 35-40% profit growth in 2026 .
Did CEVA Beat Earnings?
CEVA delivered a strong Q4 that exceeded expectations on revenue while matching on earnings:
Management emphasized this was the strongest royalty quarter in more than four years, with growth across diversified smart edge customers more than offsetting mobile softness .
Ask Fintool AI AgentWhat Did Management Guide?
CEVA provided comprehensive 2026 guidance with strong profit leverage expectations:
Key factors in guidance:
- First-half/second-half seasonality: Lower growth in H1, higher in H2 (consistent with prior years)
- FX headwinds: ~$5 million incremental impact from strengthening euro and Israeli shekel
- Licensing drivers: AI adoption expansion, higher-value integrated engagements, wireless connectivity leadership
- Royalty momentum: 5G handset modems, Bluetooth, Wi-Fi, and cellular IoT deployment broadening
$125 Million Lifetime Royalty Potential
One of the most significant announcements: based on licensing agreements signed in 2025, CEVA estimates $125 million in aggregated lifetime royalty potential over expected product lifecycles .
"While this value will be realized over multiple years and is dependent on customers' deployment and market adoption, the magnitude of this opportunity relative to our current royalty base underscores the strength, durability, and accelerating momentum of the licensing and royalty flywheel we are building." — CEO Amir Panush
NPU production timeline: Six NPU customers who signed over the past 1-2 years should be ready for production by end of 2026, with royalty contributions potentially starting in early 2027 .
The PC OEM NPU Deal: Q&A Highlights
Analysts pressed for details on the landmark PC OEM deal. Key insights from the Q&A:
Is it a separate chip or integrated? The PC OEM is building their own SoC with CEVA's NPU as the core silicon IP :
"This is for an OEM that decided to build their own internal AI and NPU functionality within the SoC platform that they are integrating into. So basically, what we are delivering them is the whole core NPU functionality, and then they integrate it into the SoC that they are building." — CEO Amir Panush
Competitive dynamics: CEVA was selected after an extensive evaluation based on best-in-class performance per watt (PPA - Power Performance Area) :
"With this specific OEM, they looked at what is available out there, and they wanted to make sure that they have complete internal integration between the hardware and the software to drive the high performance that they need."
Could others follow? Management indicated there's potential for additional PC OEMs to pursue similar internal AI capabilities :
"Within that landscape, having the ability to internalize the AI capabilities, and with that, the software, hardware integration and the specific optimization to the use cases they want to drive, it's a big value add. So definitely there is potential that other will follow suit."
Ask Fintool AI AgentWhat Changed From Last Quarter?
Record royalty performance returned: Q4 marked the strongest royalty quarter in 4+ years, with royalties growing sequentially each quarter throughout 2025 .
AI momentum accelerated: Over 20% of licensing revenue in 2025 came from AI processors for the first time ever .
Balance sheet strengthened: CEVA raised ~$63 million net through a follow-on offering, bringing cash to approximately $222 million .
Unit Shipments & Connectivity Strength
Q4 2025 shipments by category showed continued wireless connectivity momentum:
Full year 2025: Record 2.1 billion CEVA-powered devices shipped, up 6% YoY .
Full Year 2025 Performance
Key full-year highlights:
- 54 licensing agreements signed across smart edge markets
- 12 customers licensed multiple CEVA technologies in single engagements
- 10 new NPU agreements in 2025, including Microchip and PC OEM deals
- 86% of revenue from smart edge (non-mobile) markets
- Wi-Fi shipments up 48% YoY, cellular IoT up 42% YoY
Physical AI: The Next Growth Driver
CEO Amir Panush introduced "Physical AI" as CEVA's strategic positioning for the next wave of innovation:
"The next wave of innovation is increasingly about Physical AI, where devices must connect to and sense their environment, process data locally, and infer in real time to make decisions. CEVA is uniquely positioned for the Physical AI era."
When asked about specific Physical AI opportunities, management highlighted robotics as the key emerging market :
"What is really exciting right now specifically related to Physical AI is the expansion of those capabilities across wireless connectivity, the need to sense and understand the environment, and then make an inference or decision... all across robotics. Now robotics moving from a small volume in warehouses to potentially be everywhere and supporting all human beings worldwide."
M&A Strategy: Using the $222M War Chest
With $222 million in cash following the equity raise, analysts asked about M&A intentions :
"We wanted to strengthen our balance sheet. We're looking for non-organic growth to grow faster and gap that licensing to royalty 18-24 months time frame. That's the merit in raising that cash. And that's our goal for the next 12 months, to find the right fit, technology-wise, market-wise, business-wise." — CFO Yaniv Arieli
CEO Panush emphasized CEVA has built an excellent IP enterprise and intends to use the balance sheet to acquire additional IP assets to expand growth and profitability potential .
How Did the Stock React?
CEVA shares traded down approximately 2.3% on the earnings day to $22.13, despite the record results and positive guidance.
Recent earnings reactions show mixed patterns:
The muted reaction may reflect concerns about first-half seasonality and FX headwinds, despite the strong 2026 profit guidance.
Ask Fintool AI AgentForward Catalysts
- PC OEM Product Launch: The NPU deal will drive licensing revenue near-term and royalties as products launch
- NPU Royalty Ramp: Six NPU customers expected in production by end of 2026, with royalty contributions in early 2027
- Wi-Fi 7 Cycle: Continued upgrade cycle driving higher-value connectivity IP
- Mobile OEM Ramp: Expected market share gains from US mobile OEM integrating internal modem
- M&A Execution: Potential IP acquisitions to accelerate licensing-to-royalty cycle
Risks & Concerns
- Memory pricing/supply: Continued impact on smartphone shipments noted as a risk factor
- FX headwinds: ~$5M incremental expense impact from euro/shekel strengthening
- H1 seasonality: Guidance implies lower growth in first half
- Customer concentration: Mobile recovery dependent on specific customers