Overview

* Ceva Q3 2025 revenue slightly beats analyst expectations, driven by strong licensing growth

* AI processor licensing contributed one-third of licensing revenue, marking a major milestone

* Company repurchased 40,295 shares for $1 mln, focusing on profitability improvement

Outlook

* Ceva ( CEVA ) highlights AI processor licensing as a key revenue contributor

* Company focuses on disciplined expense management and profitability improvement

* Ceva ( CEVA ) sees strategic agreements providing good visibility into future revenue

Result Drivers

* AI PROCESSOR LICENSING - AI processor licensing contributed one-third of licensing revenue, marking a major milestone for Ceva's ( CEVA ) AI business

* WIRELESS IOT SHIPMENTS - Record wireless IoT shipments, led by new highs in Wi-Fi 6 and cellular IoT, reinforced leadership in wireless IP

* STRATEGIC AGREEMENTS - Strategic NeuPro NPU portfolio license signed with Microchip; three new AI DSP agreements broaden reach in consumer and automotive

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $28.40 $28.19

Revenue Beat* mln mln (5

Analysts

)

Q3 EPS -$0.10

Q3 Net -$2.50

Income mln

Q3 89.00%

Adjusted

Gross

Margin

Q3 $3.10

Adjusted mln

Operatin

g Income

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy"

* Wall Street's median 12-month price target for CEVA Inc ( CEVA ) is $31.50, about 17% above its November 7 closing price of $26.16

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)