CEVA, Inc.

Good day, and welcome to the SEVA Inc. Fourth Quarter and Year-End 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Richard Kingston, Vice President of Market Intelligence and Investor Relations. Please go ahead.

Thank you, Betsy. Good morning, everyone, and welcome to SEVA's fourth quarter and full year 2025 earnings conference call. Joining me today on the call are Amir Panoush, Chief Executive Officer, and Yaniv Ariely, Chief Financial Officer of SEVA. Before handing over to Amir, I would like to remind everyone that today's discussion contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of SEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. We will also be discussing certain non-GAAP financial measures, which we believe provide a meaningful analysis of our core operating results and comparisons of quarterly results. Please see the earnings release we issued this morning for our reconciliations of our non-GAAP financial measures. Our earnings release can be found in the SEC filing section of our investor relations website. And with that said, I'd like to turn the call over to Amir, who will review our business performance for the quarter and provide some insight into our ongoing business. Amir?

Thank you, Richard. Welcome, everyone, and thank you for joining us today. 2025 was a landmark year for SIVA. We strengthened our foundation, reinforced our leadership position in wireless connectivity, and accelerated our expansion into AI for the smart edge. Throughout the year, we continued executing on our long-term strategy, partnering closely with customers to solve their most critical technology challenges through a comprehensive best-in-class portfolio of IP platforms that enable smart edge devices to connect, sense, and infer data locally. This strategy matters now more than ever. The shift of AI inference from the cloud to the edge and toward hybrid AI continues to accelerate. And the next wave of innovation is increasingly about physical AI, where devices must connect to and sense their environment, process data locally, and infer in real time to make decisions. Siva is uniquely positioned for the physical AI era. By offering a comprehensive portfolio of IP building blocks spanning connect, sense, and infer use cases, we provide the flexibility our customers need Whether licensed individually or in multi-IP configurations, these technologies drive superior customers' outcomes and strengthen our long-term economic model. Before reviewing the year and our key achievements, I'll first provide an overview of our fourth quarter performance. For the fourth quarter, we delivered the highest quarterly revenue in SIVA's history, which was 7% higher year-over-year excluding the intrinsic design services business, which we divested in 2023. Licensing revenue increased 11%, exceeding our expectation through strong execution across all three of our technology's pillars and reflecting broad demand across multiple end markets. In the quarter, we signed 18 licensing agreements, including three NPU licensing deals, multiple Wi-Fi 7 and combo connectivity wins, and a meaningful software engagement, reinforcing the breadth of our portfolio. Of the 18 deals signed, five were with OEMs. Turning to licensing highlights regarding AI, we reached one of the most significant AI milestones for SIVA to date during the fourth quarter, signing an NPU licensing agreement with one of the world's leading PC OEMs developing its next-generation AI personal compute architecture. Their selection of Civa's Newport NPU portfolio is a strong validation of our technology and represents a breakthrough for on-device AI adoption in the PC category. This win underscores our ability to set the standards for high-performance AI integration into next-generation computing. This partnership is strategically important on two fronts. First, it demonstrates top-tier customers' trust in SIVA's leading and optimized IP foundations to their AI roadmaps, allowing them to focus their engineering talent on software, model optimization, and user experience differentiation. Second, it confirms that the PC ecosystem has reached a tipping point where dedicated NPUs are a baseline requirement for competitive AI performance. As AI features proliferate across operating systems, creative workflows, productivity applications, and local LLM acceleration, the ability to deliver superior performance per watt is the new strategic differentiator, and SIVA is a key player in this transition. Importantly, Our AI momentum is also increasingly reflected in our financial mix as well as deal activity. AI processor licensing represented a meaningful portion of our licensing revenue in 2025. While AI design cycles can be longer than traditional connectivity deployments, disagreements typically carry higher pre-unit and longer-term royalty potential. expanding content per device, and strengthening the durability of our royalty model over time. As for licensing highlights in connectivity, our connectivity business delivered another strong performance in the fourth quarter, highlighting the depth and durability of our wireless franchise. Bluetooth and Wi-Fi IPs continue to see strong demand as customers upgrade to Wi-Fi 7 and Bluetooth high data throughput. This quarter's deals include Wi-Fi 7 for IoT, a multi-use Bluetooth HDT agreement, and three Bluetooth Wi-Fi combo wins. One notable win was with the semiconductor division of one of the world's largest white goods manufacturers, which licensed our Wi-Fi 6 and Bluetooth IP for a combo connectivity chipset, supporting smart home applications. This illustrates a broader trend. Consumer, industrial, and automotive OEMs are increasingly designing their own connectivity silicones to deliver tightly integrated, app-centric experiences, and selecting SIVA as a trusted partner for roadmap critical platforms. As for SendSync, another standout deal in the fourth quarter was a software licensing agreement with a leading TV platform planning to integrate our motion engine technology into its smart TV operating system used by multiple global TV brands. As TVs evolved into interactive experience hubs, motion-based inputs and enhanced user interactions are becoming increasingly important. SIVA's longstanding presence in this market provides deep domain expertise and platform credibility. Now turning to royalties, This was our strongest royalty quarter in more than four years. We also caused our diversified smart edge royalty customers more than offset mobile softness, underscoring the strengths and resilience of our business model. In the fourth quarter, Wi-Fi shipments reached a record high, up 31% year over year, reflecting increased deployment, often as part of combo connectivity chips. Cellular IoT shipments were up 30% year-over-year, driven by smart edge applications, and Bluetooth shipments continue to be our largest volume category. We also saw a recovery from China-based handset customers during the quarter. However, memory pricing and supply constraints continue to impact smartphone shipments. Now turning for the full year 2025 review. For the full year, total revenue increased 2% year-over-year. Licensing and related revenue grew 6%, reflecting strong demand across AI and advanced connectivity. Royalty revenue was down 2%, primarily due to smartphone softness and memory supply shortage impacting overall unit achievement. Importantly, royalties grew sequentially each quarter and we exited the year with our strongest royalty quarter in more than four years. SIVA power devices shipped in 2025 reached a record 2.1 billion units, up 6% year-over-year, with record Wi-Fi shipments, which grew 48% year-over-year, and record cellular IoT shipments, up 42% year-over-year. Overall, we signed 54 licensing agreements in 2025 across our extensive IP portfolio, including 10 OEMs agreements. Importantly, 12 customers licensed multiple SIVA technologies, a clear indication that our strategy to offer a broad portfolio across Connect, Sense, and Infer is resonating and enabling customers to address multiple requirements within a single engagement. Taking a step back, 2025 features several important milestones that reinforce our long-term opportunities. The strength of our connectivity franchise is defined by deep customer integration and scale. During the year, we signed nearly 30 new engagements for our Bluetooth and Wi-Fi IPs, underscoring continuous relevance across smart edge markets. We also secured Wi-Fi 7 agreements with two of our largest connectivity customers, who together have shipped more than 3 billion civil power devices, effectively establishing long-lived royalty engines that we expect to drive billions of units and tens of millions of dollars in royalties over the life of these programs. In addition, our ability to deliver integrated combo solutions continues to differentiate us and improve data economics over time. 2025 was a breakthrough year for SILVA in AI and NPU licensing. During the year, we signed 10 Newport NPU agreements, headlines by comprehensive Newport portfolio license with Microchip and a strategic engagement with a leading global PCOEM, underscoring our attraction across embedded consumer automotive, industrial, and compute markets. This momentum is increasingly reflected not only in deal activity, but also in our financial mix, with AI processor licensing representing a meaningful portion of licensing revenue in 2025. Strategically, the licensing agreements we signed during 2025 are building long-term royalty trajectory and visibility. Based on these science agreements, and our insights into customers' roadmaps, we estimate that they represent an aggregated lifetime royalty potential of $125 million over their expected product life. While this value will be realized over multiple years and is dependent on customers' deployment and market adoption, the magnitude of this opportunity relative to our current royalty base underscores the strength, durability, and accelerating momentum of the licensing and royalty flywheel we are building. In terms of scale and credibility, we celebrated reaching 20 billion cumulative SIVA power devices shipped to date during the year, and in fact, exceeding 21 billion cumulative units by the end of the fourth quarter. These milestones reflect the trust we have built with the industry over decades and positioned SIVA strongly for the physical AI era now underway. A key strength of our business that is often underappreciated is our diversification across smart edge and markets. In 2025, smart edge applications generated 86% of total revenue, driven by market share gains by SIVA-powered customers across consumer, automotive, industrial, and infrastructure markets. As intelligence continued to move into physical devices, this diversified and expanding customer footprint positioned SIVA to evolve naturally from enabling the smart edge to enabling physical AI, where connectivity, sensing, and inference converge to drive the next phase of growth. Entering 2026, we are focused on extending our leadership in established categories and deepening our integration with our customers' roadmaps. By providing a more complete IP stack, we are becoming an even more essential partner to our customers, effectively increasing the value per device. Now, I will turn the call over to Yaniv to review the financials.