Ceva Reports Q3 2026 Revenue of $29.1 Million Amid Record AI Licensing
Ceva reported Q3 2026 revenue of $29.1 million, up 2% year-over-year, driven by record AI licensing and a surge in cellular IoT shipments.
Ceva, a provider of connectivity, sensing, and artificial intelligence technologies for smart edge devices, has released its financial results for the third quarter of 2026. According to the report, quarterly revenues rose by 2% to reach $29.1 million. Licensing revenues also grew by 2% during the quarter, standing at $16.3 million.
The report highlights that AI technology licensing generated record revenues, accounting for more than 35% of total licensing income. Royalty revenues amounted to $12.7 million, representing a 3% increase compared to the third quarter of 2025 and an 8% increase compared to the second quarter of 2026. Additionally, the company reported an all-time quarterly record of 623 million compliant devices, driven by record shipments of cellular IoT and Wi-Fi 6.
GAAP gross margin stood at 85%, compared to 88% in the same quarter of 2025. The GAAP operating loss totaled $3.5 million, compared to an operating loss of $2.1 million in the parallel period. The company recorded a GAAP net loss of $2.3 million, compared to a loss of $2.5 million a year earlier.
The GAAP diluted net loss per share for the past quarter stood at 8 cents, compared to a diluted loss of 10 cents in the third quarter of 2025. The non-GAAP gross margin reached 86%, down from 89% in the third quarter of 2025.
Non-GAAP operating profit totaled $2.5 million, compared to a non-GAAP operating profit of $3.1 million in the corresponding quarter last year. Non-GAAP net profit and diluted earnings per share were $3.8 million and 13 cents, respectively, compared to a non-GAAP net profit of $2.7 million and diluted earnings per share of 11 cents in the same period last year.
Ceva CEO Amir Panush commented on the company's performance: "We continued to grow in the third quarter, with an 18% increase in royalty revenues compared to the second quarter of the year and matched our all-time record for device shipments powered by Ceva. In licensing, we achieved our highest-ever revenues from artificial intelligence licensing, expanded our relationships with three of our highest-volume connectivity customers, and built a broader foundation of future royalty-producing products. The rollout of internally developed modems by a major US customer creates a multi-year royalty growth opportunity for smartphones in the fourth quarter, 2027, and beyond."
At the same time, Panush noted that the company is working on expanding its artificial intelligence business into infrastructure applications. "In addition, we are approaching initial NPU royalties. Together, we believe these developments strengthen the long-term growth potential of our sensing, connectivity, and inference technologies."
During the quarter, Ceva signed 10 IP licensing agreements, including three with new customers. Six agreements were for artificial intelligence technologies, including one with a new customer targeting AI infrastructure, alongside Edge AI agreements aimed at consumer, automotive, and industrial markets.
