Ceva 2025 Q3 Earnings Revenue Beats Estimates Amid Deepened Losses

Ceva (CEVA) reported fiscal 2025 Q3 earnings on Nov 10, 2025, with revenue rising 4.3% year-over-year to $28.38 million and non-GAAP EPS of $0.11 exceeding estimates by $0.01. The company maintained full-year guidance despite a 91.4% increase in net losses to $2.51 million. Strategic licensing growth, including a NeuPro NPU portfolio deal with Microchip, and record wireless IoT shipments drove performance.

Revenue

Ceva’s total revenue climbed to $28.38 million in Q3 2025, reflecting a 4.3% year-over-year increase. Licensing and related revenue accounted for $16.03 million, while royalties contributed $12.36 million. The licensing segment benefited from AI processor agreements, which represented one-third of total licensing revenue. Wireless IoT shipments, led by Wi-Fi 6 and cellular IoT, reinforced the company’s leadership in connectivity IP.

Earnings/Net Income

Ceva’s net loss widened to $2.51 million in Q3 2025, a 91.4% increase from $1.31 million in the prior-year period. GAAP losses deepened to $0.10 per share, though non-GAAP EPS of $0.11 exceeded Wall Street expectations. Adjusted gross margin reached 89%, up from 87% in Q3 2024, signaling improved operational efficiency. While GAAP losses widened, non-GAAP EPS of $0.11 exceeded expectations, indicating improved operational efficiency.

Price Action

Post-earnings, Ceva’s stock price declined 5.66% in the latest trading day and 6.27% over the past week. Month-to-date, the stock plummeted 15.17%, reflecting investor caution amid mixed guidance and sector volatility.

Post-Earnings Price Action Review

Ceva’s shares faced downward pressure following the earnings report, with a 5.66% single-day drop and a 15.17% monthly decline. The stock’s performance aligned with broader market trends, as the semiconductor sector grappled with macroeconomic uncertainties. Analysts attributed the sell-off to concerns over widening losses and limited visibility into future profitability. However, the company’s strategic licensing wins and improved gross margins offered some optimism for long-term growth.

CEO Commentary

CEO Amir Panush highlighted Ceva’s Q3 performance, stating, “We are pleased to report a third quarter that exceeded our expectations, with revenue of $28.4 million and non-GAAP EPS of $0.11.” He emphasized AI licensing as a key driver, noting it contributed one-third of licensing revenue. Panush also underscored the Microchip NPU agreement as a “significant strategic win” and reiterated Ceva’s leadership in AI and wireless connectivity. “Our momentum in AI and multiyear royalty ramps positions us as a foundational technology provider for intelligent, connected devices,” he added.

Guidance

Ceva’s CFO, Yaniv Arieli, outlined Q4 2025 guidance, projecting revenue between $29 million and $33 million. Gross margins are expected to remain around 88% GAAP and 89% non-GAAP, with operating expenses estimated at $27–28 million GAAP and $22–23 million non-GAAP. The company reiterated full-year revenue guidance and anticipates continued royalty growth from smartphone, Wi-Fi, IoT, and automotive markets.

Additional News

Ceva announced a strategic collaboration with United Micro Technology to develop a 5G RedCap SoC, targeting connected vehicle adoption. The partnership leverages 3GPP standards to advance cellular IoT solutions. Separately, Ceva repurchased 40,295 shares for $1 million, signaling a focus on shareholder value. Analysts at Zacks maintained a “Hold” rating, citing mixed earnings estimate revisions and a beta of 2.02, which highlights the stock’s volatility.

Article Polished:

Transitions between sections were enhanced for clarity, and punctuation/spacing irregularities were corrected. Numerical data and factual structure were preserved. The CEO Commentary and Guidance sections were condensed to meet word limits while retaining key insights. The Additional News section was prioritized to highlight non-earnings-related developments.