A company that designs and licenses the "brains" inside other companies' chips — its Bluetooth, Wi-Fi, and AI processor designs are embedded in billions of devices people use every day. Ceva was born in 2002 from the merger of Israel's DSP Group chip-design division and Ireland's Parthus Technologies, briefly going by "ParthusCeva" before settling on its current name. Though you never see its name on a product, its technology quietly powers the wireless and sensing features in everyday electronics.
Q2 2026 revenue rose 13% to $29.0M on the strongest licensing quarter in over three years.
Licensing hit its highest level in over three years. rose 13% to $29.0M and improved to 87.4% as licensing revenue climbed 21% to $18.2M, while royalties grew 17% sequentially to $10.8M. The company is now positioned for a second-half royalty recovery, with $220.7M in cash and no debt.
Key takeaways
Licensing and related rose 21% to $18.2M, the strongest quarterly licensing performance in over three years, driven by 10 IP agreements including a landmark NeuPro-M NPU deal with a leading global AI and computing platform company.
Royalty rose 17% sequentially to $10.8M, up 1% , supported by improving smartphone royalties, wireless connectivity strength, and ramping automotive AI programs.
Ceva-powered device shipments reached 567 million units in Q2, up 16% , with Wi-Fi shipments up 28% and cellular IoT shipments at a record 68 million units.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 13% to $29.0M on 21% licensing growth; royalties up 17% sequentially.
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Total Q2 2026 was $29.0M, up 13% , driven by licensing and related revenue of $18.2M, up 21% and the strongest quarterly licensing performance in over three years.
Royalty was $10.8M, up 1% and 17% sequentially, supported by improving smartphone royalties, wireless connectivity strength, and ramping automotive AI programs.
improved to 87.4% from 86.2% a year earlier, while operating expenses rose to $27.5M from $26.6M mainly on higher salaries and currency exchange costs from USD/NIS devaluation.
The company recorded a $1.0 million foreign exchange loss in Q2 2026 versus a $0.6 million gain a year earlier, as most expenses are in NIS and Euro while is in U.S. dollars.
Cash, deposits, and marketable securities totaled $220.7M at quarter-end, down from $222.0M at year-end 2025, with of $0.9M for the first half.
What changed
Q1 2026 flagged royalty to watch for stabilization or growth; Q2 royalties rose 17% sequentially to $10.8M, confirming the start of the expected second-half recovery.
Q1 2026 flagged licensing to see if the 18% rise held; Q2 licensing rose 21% to $18.2M, accelerating further and marking the strongest quarter in over three years.
The corporate-bond portfolio unrealized loss widened to $0.9M from $0.7M in Q1 2026, though the company intends to hold bonds to recovery or maturity.
Foreign exchange swung from a $0.6M gain in Q2 2025 to a $1.0M loss in Q2 2026, reflecting the USD/NIS devaluation that also drove higher salary costs.
What to watch
Q3 2026 royalty to confirm the 17% sequential Q2 increase holds as the second-half recovery develops.
Q3 2026 licensing to see if the 21% Q2 rise sustains as the NeuPro-M NPU deal and other AI agreements convert.
Full-year 2026 against the raised 8%–12% high-end as royalty recovery and licensing momentum play out.
Next quarter on the corporate bond portfolio after the $0.9M Q2 figure.
Ceva signed 10 IP licensing agreements in Q2, including two first-time customers and two OEMs, highlighted by a landmark NeuPro-M NPU licensing deal with a leading global AI and computing platform company.
improved to 87% from 86% a year earlier, while total operating expenses rose to $27.5M from $26.6M, mainly on higher salaries and currency exchange costs from USD/NIS devaluation.
Liquidity remained strong at $220.7M in cash, deposits, and as of June 30, 2026, down from $222.0M at year-end 2025, with of $0.9M for the first half.
Ceva-powered device shipments reached 567 million units in Q2, up 16% , with Wi-Fi shipments up 28% and cellular IoT shipments at a record 68 million units.
Quantitative and Qualitative Disclosures About Market Risk
Currency risk dominates, driven by NIS and Euro expenses, with hedging limited to payroll and no material interest-rate hedging.
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Most is in U.S. dollars, but most expenses are in NIS and Euro, creating foreign-exchange exposure when remeasured into dollars.
The company recorded a of $1.0 million in Q2 2026 and $1.2 million in H1 2026, versus gains of $0.6 million and $1.2 million in the comparable 2025 periods.
It hedges portions of anticipated non-U.S. payroll for one to twelve months using forward and option contracts, with net gains of $0.7 million in Q2 2026 and $0.8 million in H1 2026.
A hypothetical 10% weakening of the U.S. dollar against the NIS and Euro would have increased salary and employee-related expenses by about $1.6 million in Q2 2026 and $3.3 million in H1 2026.
Cash is held in high-grade with major U.S., European, and Israeli banks, but balances exceed FDIC or similar foreign insurance limits, creating credit risk.
The corporate-bond investment portfolio had $0.9 million in as of June 30, 2026, and the company generally does not hedge interest-rate exposure because most investments are short term.
Interest income and net gains/losses from marketable securities rose to $2.0 million in Q2 2026 and $4.1 million in H1 2026, mainly on higher balances from a Q4 2025 follow-on offering, partially offset by lower yields.
We are subject to one legal proceeding that has not been fully resolved and that has arisen in the ordinary course of business. As of June 30, 2026, our interim condensed consolidated balance sheet includes a provision of approximately $0.1 million for this matter. We are not a…
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We are subject to one legal proceeding that has not been fully resolved and that has arisen in the ordinary course of business. As of June 30, 2026, our interim condensed consolidated balance sheet includes a provision of approximately $0.1 million for this matter. We are not a party to any other litigation or legal proceedings that we believe could reasonably be expected to have a material effect on our business, results of operations and financial condition.
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We have not identified any material changes to the Risk Factors previously disclosed in Part I—Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, any one or more of which could, directly or indirectly, cause our actual financial condit…
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We have not identified any material changes to the Risk Factors previously disclosed in Part I—Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, any one or more of which could, directly or indirectly, cause our actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of those factors, in whole or in part, could materially and adversely affect our business, financial condition, operating results and stock price. You should carefully consider the risks and uncertainties described in our Annual Report filed on Form 10-K for the year ended December 31, 2025, together with all of the other information in this Quarterly Report on Form 10-Q, including in Part I—Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the condensed consolidated financial statements and related notes.
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