Ceva, Inc. priced an underwritten public offering of 3,000,000 shares of common stock at $19.50 per share, generating gross proceeds of $58.5 million. The offering, which includes a 30‑day option for underwriters to purchase an additional 450,000 shares at the same price, is expected to close on November 20, 2025. J.P. Morgan led the book‑run with UBS, TD Cowen, Stifel, Needham & Company, Rosenblatt, Roth Capital Partners, and Loop Capital Markets as co‑managers.
The company will use the proceeds to strengthen its balance sheet, fund potential acquisitions or investments in complementary technologies, and support working capital, capital expenditures, share repurchases, and other general corporate purposes. Ceva’s strategic focus on wireless communications, sensing, and Edge AI—particularly the recent growth in AI processor licensing—provides a clear rationale for the capital raise, as the firm seeks to accelerate product development and expand its licensing portfolio.
Prior to the offering, Ceva’s outstanding shares numbered approximately 24,016,853. The new issuance will increase the total to 27,016,853 shares, or 27,466,853 if the underwriter option is exercised, representing a dilution of roughly 12% to 13%. Net proceeds are estimated at about $54.9 million, or $63.2 million if the option is fully exercised, after accounting for underwriting discounts and commissions. With a market capitalization of roughly $652 million as of November 18, the offering represents a significant infusion of capital relative to the company’s size.
Ceva’s Q3 2025 results, released earlier in the month, showed revenue of $28.4 million and a non‑GAAP diluted EPS of $0.11, compared with $27.2 million and $0.14 in Q3 2024. The company’s GAAP net loss widened, underscoring the need for additional liquidity to support ongoing R&D and to offset profitability pressures. The offering is therefore positioned as a strategic move to shore up financial flexibility while pursuing growth opportunities in high‑margin AI and connectivity markets.
CEO Amir Panush highlighted the company’s licensing momentum, noting that “we exceeded expectations on both revenue and non‑GAAP diluted income per share this quarter, driven by strong licensing execution and healthy royalty growth.” CFO Yaniv Arieli added that AI processor licensing contributed approximately one‑third of licensing revenue in both the second and third quarters of 2025, marking a major milestone for the company’s AI business. These comments reinforce the view that the capital raise will support Ceva’s expansion in AI and connectivity.
Investors have approached the offering with caution, focusing on the dilution impact and the company’s ongoing profitability challenges. At the same time, the firm’s strong licensing wins and the growing importance of Edge AI in the semiconductor IP market provide a positive backdrop for the capital raise, suggesting that the proceeds will be directed toward high‑growth initiatives that could enhance long‑term value.
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