Earnings release
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Ceva , Inc. Announces Second Quarter 2026 Financial Results Company posts highest licensing and related revenues in three years on strong AI and connectivity demand ROCKVILLE , Md . , Aug. 10 , 2026 / PRNewswire / Ceva , Inc. ( NASDAQ : CEVA ) , the leading licensor of silicon and software IP for the Smart Edge , today announced its financial results for the second quarter ended June 30 , 2026 . Second Quarter Highlights : * • Total revenues of $ 29.0 million , up 13 % . • Licensing and related revenues of $ 18.2 million , up 21 % and the highest in three years . • • • Ten IP licensing agreements , including two with first - time customers and two directly with OEMs . Royalty revenues of $ 10.8 million , up 1 % year over year and 17 % sequentially , supported by strong wireless connectivity shipments , continued ramp of automotive AI programs and improving smartphone royalties . Non - GAAP operating income of $ 3.1 million and non - GAAP operating margin of 11 % , compared with $ 0.8 million and 3 % . * Unless otherwise stated , all comparisons are to the second quarter 2025 . Amir Panush , Chief Executive Officer of Ceva , commented , " We delivered another strong quarter , with revenue increasing 13 % year over year , fueled by licensing and related revenue growing 21 % to its highest level in three years . These results reflect the growing strategic importance of proven silicon and software IP as customers accelerate increasingly complex AI and connectivity technologies that enable Physical AI . Our agreement signed in the quarter with a leading global AI and computing platform company represents an important expansion of our AI customer base . By combining hardware IP , software and system - level expertise , Ceva can deepen its role in customer designs , increase its content opportunity and support larger , longer - term relationships . " Business and Market Highlights Licensing momentum during the quarter was led by the selection of Ceva's NeuPro - M NPU IP for next- generation custom AI silicon by a leading global AI and computing platform company . The engagement expands Ceva's AI licensing business into a new category of platform customer that controls both the hardware and operating - system environment . Ceva also saw increased adoption of its diverse portfolio of broader connectivity solutions . A high- volume U.S. semiconductor company added to its portfolio a third - party chip based on Ceva's Wi - Fi 6 and Bluetooth Low Energy IP that was originally developed with another Ceva customer . Separately , an existing U.S. customer expanded its license from an individual baseband component IP to Ceva's complete baseband processing subsystem . Overall , Ceva signed ten licensing agreements during the quarter , including two with first - time customers and two directly with OEMs . Additional connectivity agreements were signed with customers August 10 , 202
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a c r o s s t h e U . S . , E u r o p e , C h i n a a n d t h e b r o a d e r A s i a - P a c i f i c . C e v a a l s o l a u n c h e d R e a l S p a c e E l e v a t e , e x t e n d i n g i t s M i c r o s o f t - c e r t i f i e d s p a t i a l a u d i o t e c h n o l o g y i n t o t h e P C g a m i n g m a r k e t . O t h e r S e c o n d Q u a r t e r f i n a n c i a l d a t a : * G A A P g r o s s m a r g i n w a s 8 7 % , a s c o m p a r e d t o G A A P g r o s s m a r g i n o f 8 6 % G A A P o p e r a t i n g l o s s w a s $ 2 . 1 m i l l i o n , a s c o m p a r e d t o a G A A P o p e r a t i n g l o s s o f $ 4 . 5 m i l l i o n G A A P n e t l o s s w a s $ 2 . 9 m i l l i o n , a s c o m p a r e d t o a G A A P n e t l o s s o f $ 3 . 7 m i l l i o n G A A P d i l u t e d l o s s p e r s h a r e w a s $ 0 . 1 0 , a s c o m p a r e d t o G A A P d i l u t e d l o s s p e r s h a r e o f $ 0 . 1 5 N o n - G A A P g r o s s m a r g i n w a s 8 8 % , a s c o m p a r e d t o n o n - G A A P g r o s s m a r g i n o f 8 7 % N o n - G A A P o p e r a t i n g i n c o m e w a s $ 3 . 1 m i l l i o n , a s c o m p a r e d t o n o n - G A A P o p e r a t i n g i n c o m e o f $ 0 . 8 m i l l i o n N o n - G A A P n e t i n c o m e a n d n o n - G A A P d i l u t e d e a r n i n g s p e r s h a r e w e r e $ 2 . 3 m i l l i o n a n d $ 0 . 0 8 , r e s p e c t i v e l y , c o m p a r e d w i t h n o n - G A A P n e t i n c o m e a n d n o n - G A A P d i l u t e d e a r n i n g s p e r s h a r e o f $ 1 . 8 m i l l i o n a n d $ 0 . 0 7 , r e s p e c t i v e l y * U n l e s s o t h e r w i s e s t a t e d , a l l c o m p a r i s o n s a r e t o t h e s e c o n d q u a r t e r 2 0 2 5 . Y a n i v A r i e l i , C h i e f F i n a n c i a l O f f i c e r o f C e v a , a d d e d , “ L i c e n s i n g a n d r e l a t e d r e v e n u e s r e a c h e d $ 1 8 . 2 m i l l i o n i n t h e q u a r t e r , w h i l e t r a i l i n g - t w e l v e - m o n t h l i c e n s i n g a n d r e l a t e d r e v e n u e s i n c r e a s e d 1 3 % t o $ 6 9 . 6 m i l l i o n , d e m o n s t r a t i n g s u s t a i n e d m o m e n t u m i n t h e b u s i n e s s . C o m b i n e d w i t h i m p r o v i n g r o y a l t y t r e n d s a n d d i s c i p l i n e d e x p e n s e m a n a g e m e n t , t h i s d r o v e n o n - G A A P o p e r a t i n g m a r g i n t o 1 1 % , u p f r o m 3 % a y e a r a g o , d e m o n s t r a t i n g t h e o p e r a t i n g l e v e r a g e i n h e r e n t i n o u r b u s i n e s s m o d e l . ” C e v a C o n f e r e n c e C a l l O n A u g u s t 1 0 , 2 0 2 6 , C e v a m a n a g e m e n t w i l l c o n d u c t a c o n f e r e n c e c a l l a t 8 : 3 0 a . m . E a s t e r n T i m e t o d i s c u s s t h e o p e r a t i n g p e r f o r m a n c e f o r t h e q u a r t e r . T h e c o n f e r e n c e c a l l w i l l b e a v a i l a b l e v i a t h e f o l l o w i n g d i a l i n n u m b e r s : U . S . P a r t i c i p a n t s : D i a l 1 - 8 4 4 - 4 3 5 - 0 3 1 6 ( A c c e s s C o d e : C e v a ) I n t e r n a t i o n a l P a r t i c i p a n t s : D i a l + 1 - 4 1 2 - 3 1 7 - 6 3 6 5 ( A c c e s s C o d e : C e v a ) T h e c o n f e r e n c e c a l l w i l l a l s o b e a v a i l a b l e l i v e v i a w e b c a s t a t t h e f o l l o w i n g l i n k : h t t p s : / / a p p . w e b i n a r . n e t / P 3 e X E g 0 z Q L b . P l e a s e g o t o t h e w e b s i t e a t l e a s t f i f t e e n m i n u t e s p r i o r t o t h e c a l l t o r e g i s t e r . F o r t h o s e w h o c a n n o t a c c e s s t h e l i v e b r o a d c a s t , a r e p l a y w i l l b e a v a i l a b l e b y d i a l i n g + 1 8 5 5 - 6 6 9 - 9 6 5 8 o r + 1 4 1 2 - 3 1 7 - 0 0 8 8 ( a c c e s s c o d e : 9 7 9 4 4 8 8 ) f r o m o n e h o u r a f t e r t h e e n d o f t h e c a l l u n t i l 9 : 0 0 a . m . ( E a s t e r n T i m e ) o n A u g u s t 1 7 , 2 0 2 6 . T h e r e p l a y w i l l a l s o b e a v a i l a b l e a t C e v a ’ s w e b s i t e a t w w w . c e v a - i p . c o m . F o r w a r d - L o o k i n g S t a t e m e n t s T h i s p r e s s r e l e a s e c o n t a i n s f o r w a r d - l o o k i n g s t a t e m e n t s t h a t i n v o l v e r i s k s a n d u n c e r t a i n t i e s , a s w e l l a s a s s u m p t i o n s t h a t i f t h e y m a t e r i a l i z e o r p r o v e i n c o r r e c t , c o u l d c a u s e t h e r e s u l t s o f C e v a t o d i f f e r m a t e r i a l l y f r o m t h o s e e x p r e s s e d o r i m p l i e d b y s u c h f o r w a r d - l o o k i n g s t a t e m e n t s a n d a s s u m p t i o n s . F o r w a r d - l o o k i n g s t a t e m e n t s i n c l u d e s t a t e m e n t s a b o u t C e v a ’ s p o s i t i o n i n g f o r f u t u r e g r o w t h a n d t o s e r v e a s a f o u n d a t i o n a l t e c h n o l o g y p r o v i d e r f o r i n t e l l i g e n t , c o n n e c t e d d e v i c e s , l i c e n s i n g a g r e e m e n t w i n s , f u t u r e i n d u s t r y d e m a n d , o u r m a r k e t p o s i t i o n f o r t h e f u t u r e a n d f u t u r e g r o w t h i n t h e d e m a n d o f o u r p r o d u c t s , o u r f o r e c a s t o f f i n a n c i a l m e a s u r e s f o r t h e f o l l o w i n g q u a r t e r a n d 2 0 2 6 , o u r l o n g t e r m t a r g e t s a n d u n d e r l y i n g a s s u m p t i o n s , o u r f u t u r e i n v e s t m e n t s , e x p e c t a t i o n s a b o u t f u t u r e m a r k e t , t h e s u c c e s s o f o u r s t r a t e g i e s a n d a g r e e m e n t s , v i s i b i l i t y i n t o f u t u r e r e v e n u e s t r e a m s , a n d C e v a ’ s f o c u s o n e x p e n s e m a n a g e m e n t a n d p r o f i t a b i l i t y i m p r o v e m e n t . T h e r i s k s , u n c e r t a i n t i e s a n d a s s u m p t i o n s t h a t c o u l d c a u s e d i f f e r i n g C e v a r e s u l t s i n c l u d e : t h e e f f e c t o f i n t e n s e i n d u s t r y c o m p e t i t i o n ; t h e a b i l i t y o f C e v a ’ s t e c h n o l o g i e s a n d p r o d u c t s i n c o r p o r a t i n g C e v a ’ s t e c h n o l o g i e s t o a c h i e v e m a r k e t a c c e p t a n c e ; C e v a ’ s a b i l i t y t o m e e t c h a n g i n g n e e d s o f e n d - u s e r s a n d e v o l v i n g m a r k e t d e m a n d s ; t h e l e n g t h y s a l e s c y c l e f o r I P a n d r e l a t e d s o l u t i o n s ; C e v a ’ s a b i l i t y t o d i v e r s i f y r o y a l t y s t r e a m s a n d l i c e n s e r e v e n u e s ; g e o p o l i t i c a l r i s k s a n d i n s t a b i l i t y , i n c l u d i n g t h e i m p a c t o f t a r i f f s a n d o t h e r t r a d e m e a s u r e s a n d p o t e n t i a l d i s r u p t i o n s r e l a t e d t o o n g o i n g c o n f l i c t s i n t h e M i d d l e E a s t ; a n d g e n e r a l m a r k e t c o n d i t i o n s a n d o t h e r r i s k s r e l a t i n g t o C e v a ’ s b u s i n e s s a n d i n d u s t r y , i n c l u d i n g , b u t n o t l i m i t e d t o , t h o s e t h a t a r e d e s c r i b e d f r o m t i m e t o t i m e i n o u r
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S E C f i l i n g s . C e v a a s s u m e s n o o b l i g a t i o n t o u p d a t e a n y f o r w a r d - l o o k i n g s t a t e m e n t s o r i n f o r m a t i o n , w h i c h s p e a k a s o f t h e i r r e s p e c t i v e d a t e s . A b o u t C e v a , I n c . C e v a p o w e r s t h e S m a r t E d g e , b r i d g i n g t h e d i g i t a l a n d p h y s i c a l w o r l d s t o b r i n g A I - d r i v e n p r o d u c t s t o l i f e . O u r C e v a A I f a b r i c p o r t f o l i o o f s i l i c o n a n d s o f t w a r e I P e n a b l e s d e v i c e s t o C o n n e c t , S e n s e , a n d I n f e r – t h e e s s e n t i a l c a p a b i l i t i e s f o r t h e i n t e l l i g e n t e d g e . F r o m 5 G , c e l l u l a r I o T , B l u e t o o t h , W i - F i , a n d U W B c o n n e c t i v i t y t o s c a l a b l e E d g e A I N P U s , A I D S P s , s e n s o r f u s i o n p r o c e s s o r s a n d e m b e d d e d s o f t w a r e , C e v a p r o v i d e s t h e f o u n d a t i o n a l I P f o r d e v i c e s t h a t c o n n e c t , u n d e r s t a n d t h e i r e n v i r o n m e n t , a n d a c t i n r e a l t i m e . W i t h m o r e t h a n 2 1 b i l l i o n d e v i c e s s h i p p e d a n d t r u s t e d b y 4 0 0 + c u s t o m e r s w o r l d w i d e , C e v a i s t h e b a c k b o n e o f t o d a y ’ s m o s t a d v a n c e d s m a r t e d g e p r o d u c t s – f r o m A I - i n f u s e d w e a r a b l e s a n d I o T d e v i c e s t o a u t o n o m o u s v e h i c l e s a n d 5 G i n f r a s t r u c t u r e . O u r d i f f e r e n t i a t e d s o l u t i o n s d e l i v e r s e a m l e s s i n t e g r a t i o n i n t o e x i s t i n g d e s i g n f l o w s , t o t a l f l e x i b i l i t y t o c o m b i n e s o l u t i o n s b a s e d o n d e s i g n n e e d s a n d u l t r a - l o w - p o w e r p e r f o r m a n c e i n m i n i m a l s i l i c o n f o o t p r i n t , h e l p i n g c u s t o m e r s a c c e l e r a t e d e v e l o p m e n t , r e d u c e r i s k , a n d b r i n g i n n o v a t i v e p r o d u c t s t o m a r k e t f a s t e r . A s t e c h n o l o g y e v o l v e s t o w a r d P h y s i c a l A I , C e v a ’ s I P p o r t f o l i o l a y s t h e f o u n d a t i o n f o r s y s t e m s t h a t a r e a l w a y s c o n n e c t e d , c o n t e x t u a l l y a w a r e , a n d c a p a b l e o f i n t e l l i g e n t , r e a l - t i m e d e c i s i o n - m a k i n g . V i s i t u s a t w w w . c e v a - i p . c o m a n d f o l l o w u s o n L i n k e d I n , X , Y o u T u b e , F a c e b o o k , a n d I n s t a g r a m . F o r m o r e i n f o r m a t i o n , c o n t a c t : Y a n i v A r i e l i C e v a , I n c . C F O + 9 7 2 . 9 . 9 6 1 . 3 7 7 0 y a n i v . a r i e l i @ c e v a - i p . c o m R i c h a r d K i n g s t o n C e v a , I n c . V P M a r k e t I n t e l l i g e n c e , I n v e s t o r & P u b l i c R e l a t i o n s + 1 . 6 5 0 . 2 2 0 . 1 9 4 8 r i c h a r d . k i n g s t o n @ c e v a - i p . c o m C E V A , I N C . A N D I T S S U B S I D I A R I E S I N T E R I M C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F L O S S – U . S . G A A P U . S . d o l l a r s i n t h o u s a n d s , e x c e p t p e r s h a r e d a t a T h r e e m o n t h s e n d e d S i x m o n t h s e n d e d J u n e 3 0 , J u n e 3 0 , 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 U n a u d i t e d U n a u d i t e d U n a u d i t e d U n a u d i t e d R e v e n u e s : L i c e n s i n g a n d r e l a t e d r e v e n u e s $ 1 8 , 2 2 1 $ 1 5 , 0 2 2 $ 3 6 , 0 4 1 $ 3 0 , 0 6 4 R o y a l t i e s 1 0 , 8 1 2 1 0 , 6 5 6 2 0 , 0 1 6 1 9 , 8 5 9
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T o t a l r e v e n u e s 2 9 , 0 3 3 2 5 , 6 7 8 5 6 , 0 5 7 4 9 , 9 2 3 C o s t o f r e v e n u e s 3 , 6 4 6 3 , 5 4 9 7 , 3 7 5 7 , 0 3 6 G r o s s p r o f i t 2 5 , 3 8 7 2 2 , 1 2 9 4 8 , 6 8 2 4 2 , 8 8 7 O p e r a t i n g e x p e n s e s : R e s e a r c h a n d d e v e l o p m e n t , n e t 1 9 , 3 3 2 1 8 , 7 5 8 3 9 , 1 6 9 3 6 , 3 6 7 S a l e s a n d m a r k e t i n g 3 , 2 7 9 3 , 3 2 2 7 , 0 4 5 6 , 7 7 1 G e n e r a l a n d a d m i n i s t r a t i v e 4 , 7 4 3 4 , 3 8 1 9 , 4 0 3 8 , 3 1 4 A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s 1 0 9 1 5 0 2 2 6 2 9 9 T o t a l o p e r a t i n g e x p e n s e s 2 7 , 4 6 3 2 6 , 6 1 1 5 5 , 8 4 3 5 1 , 7 5 1 O p e r a t i n g l o s s ( 2 , 0 7 6 ) ( 4 , 4 8 2 ) ( 7 , 1 6 1 ) ( 8 , 8 6 4 ) F i n a n c i a l i n c o m e , n e t 9 7 8 2 , 1 2 1 2 , 8 5 5 4 , 2 2 1 R e m e a s u r e m e n t o f m a r k e t a b l e e q u i t y s e c u r i t i e s 2 4 ( 2 0 8 ) 8 8 ( 2 6 2 ) L o s s b e f o r e t a x e s o n i n c o m e ( 1 , 0 7 4 ) ( 2 , 5 6 9 ) ( 4 , 2 1 8 ) ( 4 , 9 0 5 ) I n c o m e t a x e x p e n s e 1 , 8 3 6 1 , 1 3 5 3 , 1 5 1 2 , 1 2 6 N e t l o s s $ ( 2 , 9 1 0 ) $ ( 3 , 7 0 4 ) $ ( 7 , 3 6 9 ) $ ( 7 , 0 3 1 ) B a s i c a n d d i l u t e d n e t l o s s p e r s h a r e $ ( 0 . 1 0 ) $ ( 0 . 1 5 ) $ ( 0 . 2 6 ) $ ( 0 . 3 0 ) W e i g h t e d - a v e r a g e s h a r e s u s e d t o c o m p u t e n e t l o s s p e r s h a r e ( i n t h o u s a n d s ) :
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B a s i c a n d d i l u t e d 2 7 , 9 9 6 2 3 , 8 9 8 2 7 , 8 3 8 2 3 , 8 3 2 U n a u d i t e d R e c o n c i l i a t i o n o f G A A P t o N o n - G A A P F i n a n c i a l M e a s u r e s U . S . d o l l a r s i n t h o u s a n d s , e x c e p t p e r s h a r e d a t a T h r e e m o n t h s e n d e d S i x m o n t h s e n d e d J u n e 3 0 , J u n e 3 0 , 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 U n a u d i t e d U n a u d i t e d U n a u d i t e d U n a u d i t e d G A A P n e t l o s s $ ( 2 , 9 1 0 ) $ ( 3 , 7 0 4 ) $ ( 7 , 3 6 9 ) $ ( 7 , 0 3 1 ) E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n c o s t o f r e v e n u e s 1 7 8 1 6 6 3 6 0 3 2 5 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n r e s e a r c h a n d d e v e l o p m e n t e x p e n s e s 2 , 6 5 8 2 , 6 7 3 5 , 5 2 1 5 , 1 3 9 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n s a l e s a n d m a r k e t i n g e x p e n s e s 7 1 3 5 9 8 1 , 4 3 0 1 , 1 6 4 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n g e n e r a l a n d a d m i n i s t r a t i v e e x p e n s e s 1 , 6 2 2 1 , 4 6 5 3 , 2 3 2 2 , 5 9 7 A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s r e l a t e d t o a c q u i s i t i o n o f b u s i n e s s e s ( 4 2 ) 2 0 9 1 3 4 4 1 7 C o s t s a s s o c i a t e d w i t h a s s e t a c q u i s i t i o n 6 0 1 4 4 1 2 1 2 8 8 L o s s ( i n c o m e ) a s s o c i a t e d w i t h t h e r e m e a s u r e m e n t o f m a r k e t a b l e e q u i t y s e c u r i t i e s ( 2 4 ) 2 0 8 ( 8 8 ) 2 6 2 N o n - G A A P n e t i n c o m e $ 2 , 2 5 5 $ 1 , 7 5 9 $ 3 , 3 4 1 $ 3 , 1 6 1 G A A P w e i g h t e d - a v e r a g e n u m b e r o f C o m m o n S t o c k u s e d i n c o m p u t a t i o n o f d i l u t e d 2 7 , 9 9 6 2 3 , 8 9 8 2 7 , 8 3 8 2 3 , 8 3 2
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n e t l o s s p e r s h a r e ( i n t h o u s a n d s ) W e i g h t e d - a v e r a g e n u m b e r o f s h a r e s r e l a t e d t o o u t s t a n d i n g s t o c k - b a s e d a w a r d s ( i n t h o u s a n d s ) 1 , 8 0 8 1 , 7 6 3 1 , 8 0 9 1 , 6 9 0 W e i g h t e d - a v e r a g e n u m b e r o f C o m m o n S t o c k u s e d i n c o m p u t a t i o n o f d i l u t e d e a r n i n g s p e r s h a r e , e x c l u d i n g t h e a b o v e ( i n t h o u s a n d s ) 2 9 , 8 0 4 2 5 , 6 6 1 2 9 , 6 4 7 2 5 , 5 2 2 G A A P d i l u t e d l o s s p e r s h a r e $ ( 0 . 1 0 ) $ ( 0 . 1 5 ) $ ( 0 . 2 6 ) $ ( 0 . 3 0 ) E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e $ 0 . 1 8 $ 0 . 1 9 $ 0 . 3 7 $ 0 . 3 8 A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s r e l a t e d t o a c q u i s i t i o n o f b u s i n e s s e s $ 0 . 0 0 $ 0 . 0 1 $ 0 . 0 0 $ 0 . 0 2 C o s t s a s s o c i a t e d w i t h a s s e t a c q u i s i t i o n $ 0 . 0 0 $ 0 . 0 1 $ 0 . 0 0 $ 0 . 0 1 L o s s a s s o c i a t e d w i t h t h e r e m e a s u r e m e n t o f m a r k e t a b l e e q u i t y s e c u r i t i e s $ 0 . 0 0 $ 0 . 0 1 $ 0 . 0 0 $ 0 . 0 1 N o n - G A A P d i l u t e d e a r n i n g s p e r s h a r e $ 0 . 0 8 $ 0 . 0 7 $ 0 . 1 1 $ 0 . 1 2 T h r e e m o n t h s e n d e d S i x m o n t h s e n d e d J u n e 3 0 , J u n e 3 0 , 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 U n a u d i t e d U n a u d i t e d U n a u d i t e d U n a u d i t e d G A A P o p e r a t i n g l o s s $ ( 2 , 0 7 6 ) $ ( 4 , 4 8 2 ) $ ( 7 , 1 6 1 ) $ ( 8 , 8 6 4 )
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E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n c o s t o f r e v e n u e s 1 7 8 1 6 6 3 6 0 3 2 5 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n r e s e a r c h a n d d e v e l o p m e n t e x p e n s e s 2 , 6 5 8 2 , 6 7 3 5 , 5 2 1 5 , 1 3 9 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n s a l e s a n d m a r k e t i n g e x p e n s e s 7 1 3 5 9 8 1 , 4 3 0 1 , 1 6 4 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n g e n e r a l a n d a d m i n i s t r a t i v e e x p e n s e s 1 , 6 2 2 1 , 4 6 5 3 , 2 3 2 2 , 5 9 7 A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s r e l a t e d t o a c q u i s i t i o n o f b u s i n e s s e s ( 4 2 ) 2 0 9 1 3 4 4 1 7 C o s t s a s s o c i a t e d w i t h a s s e t a c q u i s i t i o n 6 0 1 4 4 1 2 1 2 8 8 T o t a l n o n - G A A P o p e r a t i n g i n c o m e $ 3 , 1 1 3 $ 7 7 3 $ 3 , 6 3 7 $ 1 , 0 6 6 T h r e e m o n t h s e n d e d S i x m o n t h s e n d e d J u n e 3 0 , J u n e 3 0 , 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 U n a u d i t e d U n a u d i t e d U n a u d i t e d U n a u d i t e d G A A P g r o s s p r o f i t $ 2 5 , 3 8 7 $ 2 2 , 1 2 9 $ 4 8 , 6 8 2 $ 4 2 , 8 8 7 G A A P g r o s s m a r g i n 8 7 % 8 6 % 8 7 % 8 6 % E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n c o s t o f r e v e n u e s 1 7 8 1 6 6 3 6 0 3 2 5 A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s r e l a t e d t o a c q u i s i t i o n o f b u s i n e s s e s ( 1 5 1 ) 5 9 ( 9 2 ) 1 1 8
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T o t a l n o n - G A A P g r o s s p r o f i t $ 2 5 , 4 1 4 $ 2 2 , 3 5 4 $ 4 8 , 9 5 0 $ 4 3 , 3 3 0 N o n - G A A P g r o s s m a r g i n 8 8 % 8 7 % 8 7 % 8 7 % T h r e e m o n t h s e n d e d S i x m o n t h s e n d e d J u n e 3 0 , J u n e 3 0 , 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 U n a u d i t e d U n a u d i t e d U n a u d i t e d U n a u d i t e d G A A P o p e r a t i n g e x p e n s e s $ 2 7 , 4 6 3 $ 2 6 , 6 1 1 $ 5 5 , 8 4 3 $ 5 1 , 7 5 1 E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n r e s e a r c h a n d d e v e l o p m e n t e x p e n s e s ( 2 , 6 5 8 ) ( 2 , 6 7 3 ) ( 5 , 5 2 1 ) ( 5 , 1 3 9 ) E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n s a l e s a n d m a r k e t i n g e x p e n s e s ( 7 1 3 ) ( 5 9 8 ) ( 1 , 4 3 0 ) ( 1 , 1 6 4 ) E q u i t y - b a s e d c o m p e n s a t i o n e x p e n s e i n c l u d e d i n g e n e r a l a n d a d m i n i s t r a t i v e e x p e n s e s ( 1 , 6 2 2 ) ( 1 , 4 6 5 ) ( 3 , 2 3 2 ) ( 2 , 5 9 7 ) A m o r t i z a t i o n o f i n t a n g i b l e a s s e t s r e l a t e d t o a c q u i s i t i o n o f b u s i n e s s e s ( 1 0 9 ) ( 1 5 0 ) ( 2 2 6 ) ( 2 9 9 ) C o s t s a s s o c i a t e d w i t h a s s e t a c q u i s i t i o n ( 6 0 ) ( 1 4 4 ) ( 1 2 1 ) ( 2 8 8 ) T o t a l n o n - G A A P o p e r a t i n g e x p e n s e s $ 2 2 , 3 0 1 $ 2 1 , 5 8 1 $ 4 5 , 3 1 3 $ 4 2 , 2 6 4 C E V A , I N C . A N D I T S S U B S I D I A R I E S I N T E R I M C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T S ( U . S . d o l l a r s i n t h o u s a n d s ) J u n e 3 0 , D e c e m b e r 3 1 , 2 0 2 6 2 0 2 5 ( * )
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U n a u d i t e d U n a u d i t e d A S S E T S C u r r e n t a s s e t s : C a s h a n d c a s h e q u i v a l e n t s $ 4 4 , 3 0 1 $ 4 0 , 5 8 6 M a r k e t a b l e s e c u r i t i e s a n d s h o r t - t e r m b a n k d e p o s i t s 1 7 6 , 4 1 9 1 8 1 , 3 9 7 T r a d e r e c e i v a b l e s , n e t 2 2 , 3 1 2 1 9 , 4 9 5 U n b i l l e d r e c e i v a b l e s 2 4 , 4 0 3 2 9 , 8 6 0 P r e p a i d e x p e n s e s a n d o t h e r c u r r e n t a s s e t s 1 5 , 7 4 7 1 3 , 4 9 8 T o t a l c u r r e n t a s s e t s 2 8 3 , 1 8 2 2 8 4 , 8 3 6 L o n g - t e r m a s s e t s : S e v e r a n c e p a y f u n d 7 , 6 1 5 7 , 5 3 0 D e f e r r e d t a x a s s e t s , n e t 2 2 8 2 5 7 P r o p e r t y a n d e q u i p m e n t , n e t 8 , 7 8 4 7 , 0 5 4 O p e r a t i n g l e a s e r i g h t - o f - u s e a s s e t s 1 7 , 0 6 8 1 7 , 4 8 6 I n v e s t m e n t i n m a r k e t a b l e e q u i t y s e c u r i t i e s 1 4 3 5 5 G o o d w i l l 5 8 , 3 0 8 5 8 , 3 0 8 I n t a n g i b l e a s s e t s , n e t 7 0 0 1 , 0 4 4 O t h e r l o n g - t e r m a s s e t s 1 5 , 8 6 1 1 1 , 6 8 6 T o t a l a s s e t s $ 3 9 1 , 8 8 9 $ 3 8 8 , 2 5 6 L I A B I L I T I E S A N D S T O C K H O L D E R S ’ E Q U I T Y C u r r e n t l i a b i l i t i e s : T r a d e p a y a b l e s $ 1 , 5 4 0 $ 2 , 4 1 8
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D e f e r r e d r e v e n u e s 2 , 6 9 2 3 , 4 9 6 A c c r u e d e x p e n s e s a n d o t h e r p a y a b l e s 2 1 , 0 8 4 2 1 , 0 2 6 O p e r a t i n g l e a s e l i a b i l i t i e s 2 , 6 6 2 1 , 7 4 3 T o t a l c u r r e n t l i a b i l i t i e s 2 7 , 9 7 8 2 8 , 6 8 3 L o n g - t e r m l i a b i l i t i e s : A c c r u e d s e v e r a n c e p a y 7 , 8 3 2 7 , 6 9 0 O p e r a t i n g l e a s e l i a b i l i t i e s 1 4 , 7 6 2 1 4 , 3 8 8 O t h e r a c c r u e d l i a b i l i t i e s 1 , 0 7 2 1 , 0 3 7 T o t a l l i a b i l i t i e s 5 1 , 6 4 4 5 1 , 7 9 8 S t o c k h o l d e r s ’ e q u i t y : C o m m o n s t o c k 2 8 2 8 A d d i t i o n a l p a i d i n - c a p i t a l 3 4 8 , 4 6 9 3 3 7 , 9 6 6 T r e a s u r y s t o c k 0 ( 1 , 5 9 1 ) A c c u m u l a t e d o t h e r c o m p r e h e n s i v e i n c o m e ( l o s s ) ( 8 5 9 ) 7 9 A c c u m u l a t e d d e f i c i t ( 7 , 3 9 3 ) ( 2 4 ) T o t a l s t o c k h o l d e r s ’ e q u i t y 3 4 0 , 2 4 5 3 3 6 , 4 5 8 T o t a l l i a b i l i t i e s a n d s t o c k h o l d e r s ’ e q u i t y $ 3 9 1 , 8 8 9 $ 3 8 8 , 2 5 6 ( * ) D e r i v e d f r o m a u d i t e d f i n a n c i a l s t a t e m e n t s . T h e C o m p a n y b e l i e v e s t h a t t h e p r e s e n t a t i o n o f n o n - G A A P m e a s u r e s i n t h e p r e s s r e l e a s e i s u s e f u l t o i n v e s t o r s i n a n a l y z i n g t h e r e s u l t s f o r t h e q u a r t e r s e n d e d J u n e 3 0 , 2 0 2 6 , a n d 2 0 2 5 b e c a u s e t h e e x c l u s i o n o f t h e a p p l i c a b l e e x p e n s e s m a y p r o v i d e a m e a n i n g f u l a n a l y s i s o f t h e C o m p a n y ’ s c o r e o p e r a t i n g r e s u l t s a n d c o m p a r i s o n o f q u a r t e r l y r e s u l t s . F u r t h e r , t h e C o m p a n y b e l i e v e s i t i s u s e f u l f o r i n v e s t o r s t o u n d e r s t a n d h o w t h e e x p e n s e s a s s o c i a t e d w i t h t h e a p p l i c a t i o n o f F A S B A S C N o . 7 1 8 a r e r e f l e c t e d i n i t s s t a t e m e n t s o f i n c o m e . T h e r e c o n c i l i a t i o n o f f i n a n c i a l m e a s u r e s s h o u l d b e r e v i e w e d i n a d d i t i o n t o a n d i n c o n j u n c t i o n w i t h r e s u l t s p r e s e n t e d i n a c c o r d a n c e w i t h G A A P a n d a r e i n t e n d e d t o p r o v i d e a d d i t i o n a l i n s i g h t i n t o t h e C o m p a n y ’ s o p e r a t i o n s t h a t , w h e n v i e w e d w i t h i t s G A A P r e s u l t s a n d t h e a c c o m p a n y i n g r e c o n c i l i a t i o n , o f f e r a m o r e c o m p l e t e u n d e r s t a n d i n g o f f a c t o r s a n d t r e n d s a f f e c t i n g t h e C o m p a n y ’ s b u s i n e s s . T h e r e c o n c i l i a t i o n o f f i n a n c i a l m e a s u r e s s h o u l d n o t b e v i e w e d a s a s u b s t i t u t e f o r t h e C o m p a n y ’ s r e p o r t e d G A A P r e s u l t s .
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A r e c o n c i l i a t i o n o f n o n - G A A P g u i d a n c e t o t h e c o r r e s p o n d i n g G A A P m e a s u r e s i s n o t a v a i l a b l e o n a f o r w a r d - l o o k i n g b a s i s w i t h o u t u n r e a s o n a b l e e f f o r t d u e t o t h e u n c e r t a i n t y o f e x p e n s e s t h a t m a y b e i n c u r r e d i n t h e f u t u r e , a l t h o u g h i t i s i m p o r t a n t t o n o t e t h a t t h e s e f a c t o r s c o u l d b e m a t e r i a l t o t h e C o m p a n y ’ s r e s u l t s c o m p u t e d i n a c c o r d a n c e w i t h G A A P .