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Achieved the highest quarterly revenue in company history during Q4 2025, driven by an 11% increase in licensing revenue and broad demand across all technology pillars.
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Transitioned the strategic focus toward ‘Physical AI,’ where edge devices must connect, sense, and infer data locally in real-time to drive autonomous decision-making.
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Secured a landmark NPU design win with a top-tier PC OEM, validating the company’s ability to provide high-performance, power-efficient AI silicon IP for next-generation computing.
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Expanded the connectivity franchise with record Wi-Fi and cellular IoT shipments, which grew 48% and 42% year-over-year respectively, offsetting softness in the mobile handset market.
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Leveraged a diversified ‘Smart Edge’ portfolio to generate 86% of total 2025 revenue, reducing dependency on the volatile smartphone sector.
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Demonstrated the ‘licensing and royalty flywheel’ by signing 54 agreements in 2025, with 12 customers licensing multiple technologies to address complex system requirements.
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Projecting 2026 total revenue growth of 8% to 12%, with performance weighted toward the second half of the year due to typical seasonal trends.
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Estimating an aggregated lifetime royalty potential of $125,000,000 from licensing agreements signed in 2025, with initial contributions expected to begin in 2027.
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Anticipating non-GAAP net income growth of 35% to 40% year-over-year, supported by a scalable business model where organic expenses grow significantly slower than revenue.
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Monitoring external variables including memory supply constraints and pricing fluctuations which may impact the timing of royalty realization for smartphone and IoT customers.
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Planning to utilize a strengthened balance sheet, following a $63,000,000 follow-on offering, to pursue non-organic growth through strategic M&A that fills technology gaps.
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Identified a significant foreign exchange headwind of approximately $5,000,000 for 2026 due to the strengthening of the Euro and Israeli Shekel against the US Dollar.
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Reported record cumulative shipments of 20,000,000,000 CEVA-powered devices to date, reinforcing the company’s scale and long-term industry trust.
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Noted that while AI design cycles are longer than connectivity, they offer higher per-unit royalty potential and greater long-term durability for the financial model.
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Acknowledged ongoing smartphone market softness and memory shortages as primary factors for the 2% year-over-year decline in 2025 royalty revenue.
