CEVA's Q2 2025 Earnings Call: Unpacking Contradictions in AI NPU Deals and Bluetooth Market Dynamics

AI NPU deal and revenue impact, Bluetooth market dynamics, AI market and opportunity, Bluetooth market and growth, AI and NPU momentum are the key contradictions discussed in CEVA's latest 2025Q2 earnings call.



Strong Licensing Execution and AI Growth:
- CEVA reported a significant increase in licensing deals, with 13 agreements, including 5 first-time customers, contributing to a record $15 million in licensing revenue for Q2.
- The growth was driven by the pivotal entry into the broad adoption phase for Edge AI NPUs and strategic customer agreements, with a particular focus on AI integration in consumer products.

Royalty Revenue Recovery and Segment Growth:
- CEVA's royalty revenue saw a 16% sequential increase to $10.7 million, although it was down 5% year-over-year.
- The recovery was due to stronger shipments from consumers and smartphones customers, particularly in smartphone royalties, which are expected to grow with CEVA's U.S. OEM customer using its technology in in-house 5G models.

Automotive Momentum and Partnerships:
- The company secured two strategic automotive agreements, indicating growing momentum in the automotive market.
- Partnerships such as the licensing deal with Qualcomm following the acquisition of Autotalks and a sensor fusion DSP deal with a U.S. customer are positioning CEVA for long-term royalty streams in the automotive segment.

Consumer IoT and Cellular IoT Growth:
- Consumer IoT shipments increased by 21% sequentially and 60% year-over-year, driven by record-high cellular IoT and Wi-Fi 6 shipments.
- Growth is attributed to strong demand in cellular IoT, Wi-Fi 6, and consumer IoT markets, which are expected to contribute significantly to CEVA's revenue in the coming quarters.