Q1 2026 CEVA Inc Earnings Call

May 11, 2026

Operator: Good day, and welcome to the CEVA Inc. Q1 2026 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Please go ahead. Thank you, Betsy. Good morning, everyone, and welcome to CEVA's first quarter 2026 earnings conference call. Joining me today are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA.

Richard Kingston: Thank you, Betsy. Good morning, everyone, and welcome to CEVA's Q1 2026 Earnings Conference Call. Joining me today are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA. 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 CEVA 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 comparison 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.

Speaker #2: 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 CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions.

Speaker #2: We will also be discussing certain non-GAAP financial measures, which we believe provide a meaningful analysis of our core operating results and comparison of quarterly results.

Richard Kingston: We will also be discussing certain non-GAAP financial measures, which we believe provide a meaningful analysis of our core operating results and comparison 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.

Speaker #2: 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.

Speaker #2: 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.

Richard Kingston: 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.

Speaker #2: Amir?

Speaker #3: Thank you, Richard, and good morning, everyone. We are pleased to report a strong start to 2026. Building on our momentum from 2025, we exceeded our expectations on both revenues and non-GAAP EPS.

Amir Panush: Thank you, Richard, and good morning, everyone. We are pleased to report a strong start to 2026, building on our momentum from 2025. We exceeded our expectations on both revenues and non-GAAP EPS, including licensing and related revenues of $17.8 million, our strongest licensing quarter in 3 years, reflecting the strength of our pipeline, customer momentum, and future earnings power. This performance reflects strong executions and alignments with key market trends, including the convergence of AGI and wireless connectivity, rising system complexity, and growing demand for integrated solutions that accelerate time to market. As the industry faces increasing constraints in scaling centralized AI compute, the reality of shifting towards running inference at the edge and leveraging local resources is becoming more critical.

Speaker #3: Including licensing and related revenues of $17.8 million, our strongest licensing quarter in three years, reflecting the strength of our pipeline, customer momentum, and future earnings power.

Speaker #3: This performance reflects strong executions and alignments with key market trends. Including the convergence of AGI and wireless connectivity. Rising system complexity, and growing demand for integrated solutions that accelerate time to market.

Amir Panush: This performance reflects strong executions and alignments with key market trends, including the convergence of AGI and wireless connectivity, rising system complexity, and growing demand for integrated solutions that accelerate time to market. As the industry faces increasing constraints in scaling centralized AI compute, the reality of shifting towards running inference at the edge and leveraging local resources is becoming more critical.

Speaker #3: As the industry faces increasing constraints in scaling centralized AI compute, the reality of shifting towards running inference at the edge, and leveraging local resources is becoming more critical.

Speaker #3: Against this backdrop, intelligence-connected device shipments are expected to exceed 40 billion units annually by 2030, reinforcing the value of our connect, sense, and infer strategy.

Amir Panush: Against this backdrop, intelligence connected device shipments are expected to exceed 40 billion units annually by 2030, reinforcing the value of our connect, sense, and infer strategy. In the quarter, we signed several multi-technology engagements and three strategically important deals that demonstrate our strategy is translating into results. Starting with connectivity. In early 2025, we introduced our CEVA-Waves Links200 platform to deliver fully integrated system-level wireless solutions across RF, basebands and software, helping customers accelerate time to market. This quarter, we secured a major licensing win for a complete Bluetooth High Data Throughput or HDT solution, a foundational capability for the upcoming Bluetooth 7 standard. We licensed this full solution, including modem software and RF, to a leading US-based semiconductor company. Bluetooth 7 is expected to enable higher throughput and more advanced use cases, including multi-channel audio, wireless video, XR and gaming peripherals, and AI-enabled edge devices.

Speaker #3: In the quarter, we signed several multi-technology engagements and three strategically important deals that demonstrate our strategy is translating into results. Starting with connectivity, in early 2025, we introduced our CEVA Waves Lynx 200 platform to deliver fully integrated, system-level wireless solutions across RF, basebands, and software, helping customers accelerate time to market.

Amir Panush: Starting with connectivity. In early 2025, we introduced our CEVA-Waves Links200 platform to deliver fully integrated system-level wireless solutions across RF, basebands and software, helping customers accelerate time to market. This quarter, we secured a major licensing win for a complete Bluetooth High Data Throughput or HDT solution, a foundational capability for the upcoming Bluetooth 7 standard.

Speaker #3: This quarter, we secured a major licensing win for a complete Bluetooth high data throughput, or HDT, solution—a foundational capability for the upcoming Bluetooth 7 standard.

Speaker #3: We licensed this full solution including modem software and RF to a leading US-based semiconductor company. Bluetooth 7 is expected to enable higher throughput and more advanced use cases.

Amir Panush: We licensed this full solution, including modem software and RF, to a leading US-based semiconductor company. Bluetooth 7 is expected to enable higher throughput and more advanced use cases, including multi-channel audio, wireless video, XR and gaming peripherals, and AI-enabled edge devices.

Speaker #3: Including multi-channel audio, wireless video, XR and gaming peripherals, and AI-enabled edge devices. Our HDT solution is a key building block enabling this next-generation of high-performance wireless and AI-enabled edge devices.

Amir Panush: Our HDT solution is a key building block enabling this next generation of high performance wireless and AI-enabled edge devices. This builds on our prior Bluetooth engagement with the same customer, which is now approaching high volume production and further expands our footprint through a more integrated RF modem and software platform engagement. This also reflects a broader shift in the industry from internally developed connectivity to licensing proven platforms. We believe that moving to a full stack solution increases value per design for CEVA through higher licensing fees and greater royalty content, while also deepening integration and enabling multi-generation engagement. For the quarter, we expected to deliver faster time to market and lower development risks, allowing them to focus on their core differentiation while leveraging our proven IP, ultimately driving a stronger return on investment for both parties. Turning now to 5G and satellite communications.

Speaker #3: This builds on our prior Bluetooth engagements with the same customer, which is now approaching high-volume production, and further expands our footprint through a more integrated RF modem and software platform engagement.

Speaker #3: This also reflects a broader shift in the industry from internally developed connectivity to licensing proven platforms. We believe that moving to a full-stack solution increases value per design for CEVA through higher licensing fees and greater royalty content.

Amir Panush: We believe that moving to a full stack solution increases value per design for CEVA through higher licensing fees and greater royalty content, while also deepening integration and enabling multi-generation engagement. For the quarter, we expected to deliver faster time to market and lower development risks, allowing them to focus on their core differentiation while leveraging our proven IP, ultimately driving a stronger return on investment for both parties. Turning now to 5G and satellite communications.

Speaker #3: While also deepening integration and enabling multi-generation engagement. For the quarter, we expected to deliver faster time to market and lower development risk, allowing them to focus on their core differentiation while leveraging our proven IP.

Speaker #3: Ultimately, driving a stronger return on investment for both parties. Turning now to 5G and satellites communications. During the our PentaG NTN 5G Advanced Modem platform, extending our cellular portfolio into satellites communications.

Amir Panush: During our PentaG-NTN 5G advanced modem platform, extending our cellular portfolio into satellite communications. Non-Terrestrial Networks, or NTN, an emerging market expected to scale to billions of devices over the coming decade as satellite connectivity becomes an integral part of global communications infrastructure, complementing and in some cases, extending beyond traditional terrestrial 5G networks. This is being driven by a wide range of use cases, including direct remote and underserved area coverage, asset tracking, and industrial IoT, where ubiquitous always-on connectivity is critical. It is also increasingly important for enabling more resilient and independent communications infrastructure. Customer response has been highly encouraging, with clear momentum building across our pipeline. Building on this, we expanded an existing customer relationship with a satellite OEM from DSP cores to a more integrated baseband processing solution.

Speaker #3: Non-terrestrial networks, or NTN, and emerging markets expected to scale to billions of devices over the coming decade. A satellites connectivity becomes an integral part of global communications infrastructure.

Speaker #3: Complementing, and in some cases extending beyond, traditional terrestrial 5G networks. This is being driven by a wide range of use cases, including direct remote and underserved area coverage, asset tracking, and industrial IoT.

Speaker #3: Where ubiquitous, always-on connectivity is critical, it is also increasingly important for enabling more resilient and independent communications infrastructure. Customer response has been highly encouraging, with clear momentum building across our pipeline.

Speaker #3: Building on this, we expanded an existing customer relationship with a satellite OEM from DSP cores to a more integrated baseband processing solution. As with our Bluetooth HDT engagement, this reflects a deepening relationship with an existing customer and an expansion in the scope and value of our IP within their platform.

Amir Panush: As with our Bluetooth HDT engagement, this reflects a deepening relationship with an existing customer and an expansion in the scope and value of our IP within their platform. In ultra-wideband, during the Q1, we introduced our next-generation UWB platform and secured a new customer win with a major US-based MCU provider, augmenting its internal UWB capabilities with our IP and combining its system expertise with our proven connectivity solution to accelerate development and reduce risk. This engagement also builds on a broader relationship with the customer, who has licensed multiple CEVA technologies over the past two years. We are seeing a transition in UWB towards higher-value industrial, automotive, and enterprise applications, driven by demand for precise, secure location awareness in use cases such as access, asset tracking, and indoor navigation.

Speaker #3: In ultra-wideband, during the first quarter, we introduced our next-generation UWB platform and secured a new customer win with a major US-based MCU provider, augmenting its internal UWB capabilities.

Speaker #3: With our IPN combining its system expertise with our proven connectivity solution to accelerate developments and reduce risk, this engagement also builds on a broader relationship with the customer.

Speaker #3: Who has licensed multiple CEVA technologies over the past two years. We are seeing a transition in UWB towards higher value industrial, automotive, and enterprise applications.

Speaker #3: Driven by demand for precise, secure location awareness in use cases, such as access, asset tracking, and indoor navigation. As the market expands, customers are increasingly choosing to license proven IP to accelerate time to market and reduce development risk.

Amir Panush: As the market expands, customers are increasingly choosing to license proven IP to accelerate time to market and reduce development risk. Across these wins, a clear pattern is emerging. The Bluetooth, NTN, and UWB engagements we highlighted this quarter are all within existing customers who have expanded their use of CEVA IP over the past two years. More broadly, customers are increasingly adopting more integrated system-level solutions from CEVA, expanding our value per design while strengthening long-term royalty and margin potential. In sensing, we continue to see growing traction for our spatial audio solutions as demand for immersive audio experience expands. During the quarter, Lenovo launched its latest ThinkPad headset, powered by our RealSpace spatial audio with head tracking, building on recent wins with consumer brands like Nothing and boAt.

Speaker #3: Across these wins, a clear pattern is emerging. The Bluetooth NTN and UWB engagements we highlighted this quarter are all within existing customers who have expanded their use of CEVA IP over the past two years.

Speaker #3: More broadly, customers are increasingly adopting more integrated, system-level solutions from CEVA. Expanding our value per design while strengthening long-term royalty and margin potential. Incensing with continue to see growing traction for our special audio solutions as demand for immersive audio experience expands.

Speaker #3: During the quarter, Lenovo launched its latest ThinkPad headsets, powered by our RealSpace special audio with head tracking. Building on recent wins with consumer brands like Nothing and Bolt.

Speaker #3: Finally, in AI. We continue to execute on our strategy to enable efficient, scalable inference at the edge. With AI representing more than 20% of our licensing, and related revenues, and designing of two new licensing agreements in the quarter.

Amir Panush: Finally, in AI, we continue to execute on our strategy to enable efficient, scalable inference at the edge, with AI representing more than 20% of our licensing and related revenues and the signing of 2 new licensing agreements in the quarter. We are seeing a structural shift towards hybrid AI, where inference is increasingly moving to the device while more complex processing remains in the cloud or across connected systems. This right AI model, right place, right time approach enables real-time on-device decision-making while maintaining the flexibility to scale compute as needed. As a result, demand for highly efficient, ultra-low power solutions is growing across wearables, automotive, industrial, and smart home applications. IP and AI content per device is increasing as more products require local connect, send, and infer capabilities.

Speaker #3: We are seeing a structural shift towards hybrid AI, where inference is increasingly moving to the device, while more complex processing remains in the cloud or across connected systems.

Speaker #3: This right AI model, right place, right time approach enables real-time on-device decision-making while maintaining the flexibility to scale compute as needed. As a result, demand for highly efficient, ultra-low-power solutions is growing across wearables, automotive, industrial, and smart home applications.

Speaker #3: An IP and AI content per device is increasing as more products require local, connect, send, and infer capabilities. We believe the rise of hybrid and agent-based AI will further accelerate the shift towards distributed intelligence at the edge.

Amir Panush: We believe the rise of hybrid and agent-based AI will further accelerate the shift towards distributed intelligence at the edge, where devices need to locally sense, infer, communicate, coordinate, and act in real time while selectively leveraging cloud AI resources. This trend is expected to drive growing demand for efficient AI processing alongside advanced wireless connectivity across increasingly complex connected systems. This is now translating into production. Renesas R-Car V4H platform, which integrates our AI DSP and accelerator, is now in production in the 2026 Toyota RAV4, one of the highest volume passenger vehicles globally, marking our first mass volume automotive AI deployment. We believe this represents the beginning of a meaningful long-term royalty stream with growing AI content per device.

Speaker #3: Where devices need to locally sense, infer, communicate, coordinate, and act in real-time, while selectively leveraging cloud AI resources. This trend is expected to drive growing demand for efficient AGI processing alongside advanced wireless connectivity across increasingly complex connected systems.

Speaker #3: This is now translating into production. Renaissance our car V4 H platform, which integrates our AI DSP and accelerator, is now in production in the 2026 Toyota RAV4, one of the highest volume passengers vehicle globally.

Speaker #3: Marking our first mass volume automotive AI deployment. We believe this represents the beginning of a meaningful, long-term royalty stream with growing AI content per device.

Speaker #3: We also announced a collaboration with NXP during the quarter. Integrating our AI DSP and accelerator into their S32E2 and S32Z2 software-defined vehicle processors. Further validating our position in automotive AI.

Amir Panush: We also announced a collaboration with NXP during the quarter, integrating our AI DSP and accelerator into their S32E2 and S32Z2 software-defined vehicle processors, further validating our position in automotive AI. In addition, our NeuPro-Nano NPU won a leading artificial intelligence award at Embedded World 2026, further emphasizing our leadership position. Our AI licensing pipeline remains strong, with multiple evaluation and investment negotiations underway across a broad range of end markets. Stepping back, overall, we signed 14 licensing agreements in the quarter, including two with OEMs. In addition to the deals I highlighted earlier, we secured a Wi-Fi 7 design targeting consumer IoT, a Wi-Fi 6 Bluetooth combo engagement with a leading AI SoC platform company, and multiple additional Bluetooth and Wi-Fi wins across our connectivity portfolio. Turning now to royalties.

Speaker #3: In addition, our new Ponano NPU won a leading artificial intelligence award at Embedded Award 2026. Further emphasizing our leadership position. Our AI licensing pipeline remains strong, with multiple evaluation and invest negotiations underway across a broad range of end markets.

Speaker #3: Stepping back, overall, we signed 14 licensing agreements in the quarter, including two with OEMs. In addition to the deals I highlighted earlier, we secured a Wi-Fi 7 design targeting consumer IoT, and a Wi-Fi 6 Bluetooth combo engagement with a leading HAI SoC platform company.

Speaker #3: And multiple additional Bluetooth and Wi-Fi wins across our connectivity portfolio. Turning now to royalties. We continue to see encouraging momentum across our diversified smart edge markets.

Amir Panush: We continue to see encouraging momentum across our diversified smart edge markets with growth in IoT, industrial, and AI-driven applications. While total royalties were flat year-over-year, non-mobile royalties grew 8%, reflecting strengths across our smart edge markets, partially offset by softness in smartphone. Wi-Fi shipments reached an all-time high in the quarter, driven by record Wi-Fi 6 volumes, highlighting the continuing expansion of this market as customers ramp deployments across a broad range of devices. More broadly, Wi-Fi and Bluetooth continue to be durable multi-year growth drivers. As customers scale current generation technologies such as Wi-Fi 6 and Bluetooth 6, they are also developing next generation platform, including Wi-Fi 7 and Bluetooth 7. These overlapping cycles are expected to support sustained unit growth, increase IP content per design, and long-term margin expansion.

Speaker #3: With growth in IoT, industrial, and AI-driven applications. While total royalties were flat year over year, non-mobile royalties grew 8%, reflecting strengths across our smart edge markets.

Speaker #3: Partially offset by softness in smartphone. Wi-Fi shipments reach an all-time high in the quarter. Driven by record Wi-Fi 6 volumes. Highlighting the continuing expansion of this market as customers ramp deployments across a broad range of devices.

Speaker #3: More broadly, Wi-Fi and Bluetooth continue to be durable, multi-year growth drivers. As customers scale current generation technologies, such as Wi-Fi 6 and Bluetooth 6, they are also developing next generation platforms, including Wi-Fi 7 and Bluetooth 7.

Speaker #3: This overlapping cycles are expected to support sustained unit growth, increase IP content per design, and long-term margin expansion. We expect the continued shift towards combo chips to further reinforce our strategy, as customers integrated multiple CEVA technologies into a single design, increasing value per device and driving stronger overall economics.

Amir Panush: We expect the continuing shift towards combo chips to further reinforce our strategy as customers integrated multiple SiFive technologies into a single design, increasing value per device and driving stronger overall economics. AI-driven royalties also continue to grow, highlighted by our automotive AI deployment at Toyota and a ramping AI SoC for surveillance, representing early signs of the long-term contribution we expect from AI across multiples end markets. Against these tailwinds, Q1 royalties were impacted by typical seasonal softness in mobile, combined with near-term effects for memory availability constraints and challenged inventory in the lower tier segments. We view these mobile dynamics as largely timing related and expect improvements as the year progresses, supported by inventory normalization and typical seasonality. Along with what we anticipate will be stronger high-end smartphone royalties in the H2.

Speaker #3: AI-driven royalties also continue to grow. Highlighted by our automotive AI deployment at Toyota and a ramping AI SoC for surveillance. Representing early signs of the long-term contribution we expect from edge AI across multiple end markets.

Speaker #3: Against this tailwinds, first quarter royalties were impacted by typical seasonal softness in mobile, combined with near-term effects from memory availability, constraints, and challenge inventory in the lower tier segments.

Speaker #3: We view this mobile dynamics as largely timing-related and expect improvements as the year progresses, supported by inventory normalization and typical seasonality, along with what we anticipate will be stronger high-end smartphone royalties in the second half.

Speaker #3: Overall, this quarter reinforces our ability to execute on our strategy and increase value per design as we move towards more integrated, higher-value engagements.

Amir Panush: Overall, this quarter reinforces our ability to execute on our strategy and increase value per design as we move towards more integrated, higher value engagements. I will now turn the call over to Yaniv for the financials.

Speaker #3: I will now turn the call over to Yaniv for the financials.

Speaker #2: Thank you. I'll now review the financial results for the first quarter. Which reflect the strong licensing performance and continued execution Amir just outlined. Revenues for the first quarter increased 11% year over year to 27 million dollars.

Yaniv Arieli: Thank you, Amir. I'll now review the financial results for Q1, which reflect the strong licensing performance and continuing execution Amir just outlined. Revenues for Q1 increased 11% year-over-year to $27 million. The revenue breakdown is as follows. Licensing and related revenue increased 18% year-over-year to $17.8 million, reflecting 66% of our total revenues. Royalty revenues were $9.2 million, in line with last year, reflecting 34% of total revenues. Gross margins were 86% on GAAP basis and 87% on non-GAAP basis. Our total GAAP operating expenses for Q1 were $28.4 million, just over the mid-range of our guidance. Total non-GAAP operating expenses for Q1, excluding equity-based compensation expenses, amortization of intangibles, and deal costs, were $23 million, just over the mid-range of our guidance.

Speaker #2: The revenue breakdown is as follows. Licensing and related revenue increased 18% year over year to 17.8 million dollars, reflecting 66% of our total revenues.

Speaker #2: Royalty revenues were $9.2 million, in line with last year, reflecting 34% of total revenues. Gross margins were 86% on GAAP basis and 87% on non-GAAP basis.

Speaker #2: Our total gap operating expenses for the first quarter were 28.4 million dollars, just over the mid-range of our guidance. Total non-gap operating expenses for the first quarter excluding equity-based compensation expenses amortization with intangibles and deal costs were 23 million dollars, just over the mid-range of our guidance.

Speaker #2: GAAP operating loss for the first quarter was $5.1 million, as compared to GAAP operating loss of $4.4 million in the same quarter last year.

Yaniv Arieli: GAAP operating loss for Q1 was $5.1 million as compared to GAAP operating loss of $4.4 million in the same quarter last year. Non-GAAP operating margins and income were 2% of revenues and half a million dollars. Net income was $1.9 million compared to $2.1 million for Q1 2025. Taxes were approximately $1.3 million.

Speaker #2: Non-gap operating margins and income were 2% of revenues and half a million dollars. Net income was 1.9 million dollars compared to 2.1 million for the first quarter of 2025.

Speaker #2: Taxes were approximately 1.3 million. Gap net loss for the first quarter was 4.5 million dollars, and diluted loss per share was 16 cents, as compared to net loss of 3.3 million dollars in diluted loss per share of 14 cents for the first quarter of '25.

Yaniv Arieli: GAAP net loss for the first quarter was $4.5 million, and diluted loss per share was $0.16 as compared to net loss of $3.3 million in diluted loss per share of $0.14 for the first quarter of 2025. Non-GAAP net income and non-GAAP diluted earnings per share for the first quarter of 2026 were $1.1 million and $0.04 respectively, as compared to non-GAAP net income of $1.4 million and non-GAAP diluted earnings per share of $0.06 for the first quarter of 2025. With respect to other related data, we shipped 458 million units of CEVA-powered devices, up 9% for the first quarter of 2025.

Speaker #2: Non-gap net income and non-gap diluted earnings per share for the first quarter of '26 were 1.1 million dollars and 4 cents, respectively, as compared to non-gap net income of 1.4 million dollars and non-gap diluted earnings per share of 6 cents for the first quarter of '25.

Speaker #2: With respect to other related data, we shipped 458 million units of CEVA power devices. Up 9% for the first quarter of 2025. Of the 458 million reported, 46 million units, or 10%, were for mobile handset modems, down from 49 million units in the first quarter last year.

Yaniv Arieli: Of the 458 million reported, 46 million units or 10% were for mobile handset modems, down from 49 million units in Q1 last year. 394 million units were consumer IoT devices, up from 337 million units for Q1 last year. 18 million units were for industrial IoT products, down from 34 million units in Q1 last year. However, associated in industrial IoT royalty revenues were up 19% year over year, reflecting a better mix of higher ASP product shipments, including 5G wireless infrastructure and automotive AI. Bluetooth shipments were 206 million units in the quarter, down from 233 million units in Q1 of last year.

Speaker #2: 394 million units were consumer IoT devices. Up from 337 million units for the first quarter last year. 18 million units were for industrial IoT products.

Speaker #2: Down from 34 million units in the first quarter last year. However, associated industrial IoT royalty revenues were up 19% year over year, reflecting a better mix of higher ASP product shipments, including 5G wireless infrastructure and automotive AI.

Speaker #2: Bluetooth shipments were 206 million units in the quarter, down from 233 million units in the first quarter of last year. Cellular IoT shipments were 66 million units, up 38% year over year.

Yaniv Arieli: Cellular IoT shipments were 66 million units, up 38% year over year, and Wi-Fi shipments were a record 91 million units, up 158% year over year. As for the balance sheet items, our cash equivalent balances, marketable securities and bank deposits were approximately $260 million, providing strong financial flexibility. We remain focused on disciplined capital allocation, including continued investments in our roadmap and a selective approach for strategic M&A opportunities that can accelerate our growth. Our DSOs for Q1 2026 was 59 days. During Q1, we used $4.9 million of cash in operating activities. Ongoing depreciation and amortization was $0.9 million and purchase of fixed assets was $2.3 million, including approximately $1 million related to leasehold improvements.

Speaker #2: And Wi-Fi shipments were a record 91 million units, up 158% year over year. As for the balance sheet items, our cash equivalent balances marketable securities and bank deposits were approximately 260 million, providing strong financial flexibility.

Speaker #2: We remain focused on disciplined capital allocation including continued investments in our roadmap and a selective approach for strategic M&A opportunities that can accelerate our growth.

Speaker #2: Our DSOs for the first quarter of '26 were 59 days. During the first quarter, we used $4.9 million of cash in operating activities.

Speaker #2: Ongoing depreciation and amortization was 0.9 million dollars. And purchase of fixed assets was 2.3 million, including approximately 1 million dollars related to leasehold improvements.

Yaniv Arieli: At the end of Q1, our head of count was 430 people, of whom 348 were engineers. Now for the guidance. As Amir highlighted, we delivered a strong start for the year, supported by continuing enhancements to our IP portfolio, solid licensing execution, and growing fundamentals for future royalty expansion. From a financial perspective, we continue to view 2026 as a year of growth across multiple dimensions. Reflecting our Q1 performance, we're upgrading our annual outlook towards the higher end of our previously communicated range. For the full year, we now expect total revenue growth to be at the top end of our 8% to 12% range over 2025, with a typical seasonality profile of lower growth in H1 and stronger growth in H2, subject to memory pricing dynamics and supply conditions.

Speaker #2: At the end of the first quarter, our headcount was 430 people, of whom 348 were engineers. Now for the guidance. As Amir highlighted, we delivered a strong start for the year, supported by continued enhancements to our IP portfolio.

Speaker #2: Solid licensing execution, and growing fundamental for future royalty expansion. From a financial perspective, we continue to view 2026 as a year of growth across multiple dimensions.

Speaker #2: Reflecting our first quarter performance, we're upgrading our annual outlook towards the higher end of our previously communicated range. For the full year, we now expect total revenue growth to be at the top end of our 8 to 12 percent range over 2025.

Speaker #2: With a typical seasonality profile of lower growth in the first half and stronger growth in the second half, subject to memory pricing dynamics and supply conditions.

Speaker #2: On the expense side, we maintained focused on cost discipline and operating leverage. While continuing to manage foreign exchange headwinds, with the strengthening of the euro and the Israeli shekel against the US dollars.

Yaniv Arieli: On the expense side, we maintain focus on cost discipline and operating leverage, while continuing to manage foreign exchange headwinds with the strengthening of the euro and the Israeli shekel against the US dollars. Overall expenses, cost of revenues and OpEx combined are expected to increase approximately 8% over 2025. As we continue to invest to support growth, we expect a portion of the incremental revenue to be translated to the bottom line, driving continued improvement in non-GAAP operating income, net income and EPS. Based on our performance to date and current business momentum, we now expect non-GAAP operating margins and non-GAAP net income to increase by 40% to 50% year over year, which is above our prior expectations. Guidelines for the Q2 of 2026.

Speaker #2: Overall expenses—cost of revenues and OPEX combined—are expected to increase approximately 8% over 2025. As we continue to invest to support growth, we expect a portion of the incremental revenue to be translated to the bottom line.

Speaker #2: Driving continued improvement in non-gap operating income, net income, and EPS. Based on our performance to date, and current business momentum, we now expect non-gap operating margins and non-gap net income to increase by 40 to 50 percent year over year, which is above our prior expectations.

Speaker #2: Guidelines for the second quarter of 2026. Revenues are expected to be in the range of 26 to 30 million dollars, reflecting continued growth both sequentially and year over year.

Yaniv Arieli: Revenues are expected to be in the range of $26 to 30 million, reflecting continued growth both sequentially and year-over-year. Gross margin is expected to be 87% on GAAP basis and 88% on non-GAAP basis, excluding an aggregate $0.2 million of equity-based compensation expenses, and $0.1 million of amortizations of acquired intangibles. GAAP OpEx for Q2 2026 is expected to be similar to Q1 and in the range of $27.7 to 28.7 million. Of our anticipated total OpEx for Q2, $5.3 million is expected to be attributed to equity-based compensation expenses, $0.1 of amortizations of acquired intangibles, and $0.1 million of costs associated with business acquisitions.

Speaker #2: Gross margin is expected to be 87% on gap basis and 88% on non-gap basis, excluding an aggregate 0.2 million dollars of equity-based compensation expenses and 0.1 million dollars of amortizations of inquired intangibles.

Speaker #2: Gap OPEX for the second quarter of '26 is expected to be similar to the first quarter, and in the range of $27.7 to $28.7 million.

Speaker #2: Of our anticipated total OPEX for the second quarter, 5.3 million is expected to be attributed to equity-based compensation expenses, 0.1 of amortizations of acquired intangibles, and 0.1 million of cost associated with business acquisitions.

Speaker #2: Non-gap OPEX is also expected to be similar to the first quarter, and in the range of 22.2 to 23.2 million dollars. In an interest income is expected to be approximately 1.7 million dollars, taxes for the second quarter is expected to be approximately 1.5 million dollars, and the share count for the second quarter of '26 is expected to be approximately 28 million shares for gap and 29.7 million shares for non-gap.

Yaniv Arieli: Non-GAAP OpEx is also expected to be similar to Q1 and in the range of $22.2 to 23.2 million. Interest income is expected to be approximately $1.7 million. Taxes for Q2 is expected to be approximately one and a half million dollars. The share count for Q2 2026 is expected to be approximately 28 million shares for GAAP and 29.7 million shares for non-GAAP. Betsy, we could now take questions, please.

Speaker #2: Betsy, we could now take questions, please.

Speaker #1: We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Operator 2: We will now begin the question and answer session. To ask a question, you may press Star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. The first question today comes from Ruben Roy with Stifel. Please go ahead. Ruben, your line is open. You may ask your question now.

Operator: We will now begin the question and answer session. To ask a question, you may press Star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. The first question today comes from Ruben Roy with Stifel. Please go ahead. Ruben, your line is open. You may ask your question now.

Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster.

Speaker #1: The first question today comes from Ruben Roy with Stifel. Please go ahead. Ruben, your line is open. You may ask your question now.

Speaker #3: Sorry, sorry guys. I was on, mute somehow. hi Amir. Hi Yaniv. congrats on the, nice start to the year. I guess to start, Amir, on the, Bluetooth HUD HDT win, I'm not sure if you guys had RF wins previous, but it seems to me like that would be a, a, a nice, step up in, in your value per design, strategy that you've been talking about.

Ruben Roy: Sorry, guys, I was on mute somehow. Hi, Amir. Hi, Yaniv. Congrats on the nice start to the year. I guess to start, Amir, on the Bluetooth HDT win. I'm not sure if you guys had RF wins previous, but it seems to me like that would be a nice step up in your value per design strategy that you've been talking about. Can you maybe just talk a little bit more about what you're doing for the RFs? Also, I guess as part of that, is that sort of an architecture that you can replicate across other areas of the business eventually, Wi-Fi, ultra-wideband, et cetera? Anything you talk about in terms of the royalty rate relative to your traditional Bluetooth licenses. Thank you.

Speaker #3: So, can you maybe just talk a little bit more about what you're doing for the RFs, and also, I guess, as part of that, is that sort of an architecture that you can replicate across other areas of the business eventually—Wi-Fi, ultra-wideband, et cetera?

Speaker #3: and, and anything you talk about in terms of the, the royalty rate, relative to your traditional Bluetooth licenses. Thank you.

Speaker #4: Yeah. Roy first, thanks a lot for the congr for the congratulations. yeah, definitely. This is a very important win for us. as you pointed out, this is a win that, of a full system solution, all the way so-called from the antenna up to the full stack and the software, including our own internal developed RF, which is a, a investment that we've put in the last year or two, to really build those systems up.

Amir Panush: Ruben Roy, first thanks a lot for the congratulation. Definitely this is a very important win for us. As you pointed out, this is a win that of a full system solution all the way, so-called, from the antenna up to the full stack and the software, including our own internal developed RF, which is an investment that we've put in the last year or two to really build those system up. The key value here is really that our customers, they can get the full solution. They don't need to do more of the pre-testing validation of those things, and we provide them that as a full solution. Time to market and ability to be successful in the market is much higher.

Speaker #4: the, the key value here is really that our customers, they can get the full solution. They don't need to do more of the pre-testing, validation of those things.

Speaker #4: And we provide them that as a full solution. Then, time to market and ability to be successful in the market is much higher. And even more so, with this customer and overall other customers, what we see that really helps them is to drive more and more at so-called the mix versus buy decision, and move away from so-called internal development to a complete solution based on our technology.

Amir Panush: Even more so with this customer and overall other customers, what we see, that really helps them to drive more and more at so-called make versus buy decision and move away from so-called internal development to a complete solution based on our technology. We are very happy with that win with the RF, and we expect more of those wins to come through the year and then of course in the next few years. The other piece that you pointed out, this is definitely a technology that we are planning to expand beyond the Bluetooth HDT. We have multiple other wireless technology with digital IP. The same strategy we are going to basically deploy and apply in the marketplace, more and more integrated solution, complete system around our leadership in wireless connectivity.

Speaker #4: So, we are very happy with that win with the RF. And we expect more of those wins to come through the year. And then, of course, in the next few out, this is definitely a technology that we are planning to expand beyond the Bluetooth HDT.

Speaker #4: We have a multiple other wireless technology, technology with are going to basically deploy and apply in the marketplace. More and more integrated solution, complete system, run our leadership in wireless connectivity.

Speaker #4: So we are super, super excited about, this momentum and that what can build for the future. Last piece that you point on, the royalty, as I mentioned in the previous calls, at the end of the day, royalty comes back to what value we bring to our customers.

Amir Panush: We are super excited about this momentum and that what can build for the future. Last piece that you point on the royalty, as I mentioned in the previous calls, at the end of the day, royalty comes back to what value we bring to our customers. In this case, because it's not just the whole different components of the system, it's the fact that it's fully integrated. Our customers definitely appreciate it, and we see meaningfully higher royalty than so-called one plus one is more than two, and that will help us to drive much more royalty growth in the future with overall very strong flywheel across our wireless connectivity technologies.

Speaker #4: And in this case, because it's not just the whole different components of the system—it's the fact that it's fully integrated—our customers definitely appreciate it.

Speaker #4: And we see meaningfully higher royalty than so-called one plus one is more than two. And that helps will help us to drive much more royalty growth in the future.

Speaker #4: We've overall very strong flywheel across our wireless connectivity technologies.

Speaker #3: That's great, thank you, Amir, for all the detail. I guess if I could ask a quick follow-up, just on sort of the way the year is playing out.

Ruben Roy: That's great. Thank you, Amir, for all the detail. I guess if I could ask a quick follow-up just on, sort of the way the year is playing out. You continue to expect a stronger second half, and I think you gave us a lot of, you know, sort of data points and, you know, kind of visibility into how you're thinking about that. You do have, you know, some, you know, factors coming into play. You mentioned memory pricing and, you know, overall, you know, sort of macro, you know, sort of dynamics going on.

Speaker #3: You continue to expect a stronger second half. And I think you gave us a lot of, you know, sort of data points and, you know, kind of visibility into how you're thinking about that.

Speaker #3: But you do have, you know, some, you know, factors coming into play. You mentioned memory pricing and, you know, overall, you know, sort of macro, you know, sort of dynamics going on.

Speaker #3: So, either Amir or Yaniv, can you maybe just give us a little bit of detail on what you're hearing from customers relative to some of those, you know, impacts that we might see as we kind of go through the year?

Ruben Roy: Either Amir or Yaniv, can you maybe just give us a little bit of detail on what you're hearing from customers relative to some of those, you know, impacts that we might see as we kind of go through the year? I think, you know, memory pricing has started to impact some of the end markets. We're hearing from PC guys, et cetera, you know, talk about potential impacts there. Any additional detail on how you're thinking about H2 versus H1 and what you're hearing from customers would be great. That's all I have. Thank you.

Speaker #3: I think, you know, memory pricing—it started to impact some of the end markets we're hearing from PC guys, et cetera. You know, talk about potential impacts there.

Speaker #3: So, a-any additional detail on how you're thinking about the second half versus the first half and, and what you're hearing from customers would be would be great.

Speaker #3: And that's all I have. Thank you.

Speaker #4: Yeah. Definitely. o-one thing first I would say, just if we look at, at this quarter, as we started the year, I'm extremely encouraged by the fact that even though so-called mobile, hasn't been that strong considering the challenge with, with memory allocation, and the so-called the, inventory utilization, we still deliver really great results driven by, one, very good execution across the licensing and solution-based offering.

Amir Panush: Yeah, definitely. One thing first I would say, just if we look at this quarter, as we started the year, I am extremely encouraged by the fact that even though so-called mobile hasn't been that strong, considering the challenge with memory allocation and the so-called inventory utilization, we still deliver really great results driven by, one, very good execution across the licensing and solution-based offering. Second, we see a very good momentum overall in the broader IoT. Going back to what you asked about the memory that if we look at the IoT, it is a market that is less impacted by that. We have a great access across a very diversified set of customers, use cases, and products and technologies.

Speaker #4: And second, we see a very good momentum overall in the border IoT. And going back to what you asked about the, the we look at the IoT, it's all market that is less impacted by that.

Speaker #4: We have a great access across, very diversified set of customers, use cases, and products and technologies. So I think overall we can do so-called better than, others in terms of potential impacts from, memory allocation.

Amir Panush: I think overall, we can do so-called better than others in terms of potential impacts from memory allocation. Specifically on mobile, with the inventory drawdown that happened this quarter and maybe to some degree through the H1, it probably will put us in a good spot as we go to the H2, which on top of that, of course, what we expect is increased market share in the premium tier. I think overall we are well-positioned going through so-called that challenge at overall in the marketplace. It goes back to how we execute basically driving our licensing and ensuring that our customer is happy with the ramp-up of our technologies.

Speaker #4: And specifically on mobile, with the inventory drawdown that has happened this quarter and maybe to some degree through the first half, it probably will put us in a good spot as we go to the second half.

Speaker #4: Which on top of that, of course, what we expect is increased market share in the in the premium tier. So I think overall we're, we are well positioned.

Speaker #4: going through so-called that, that challenge at overall in the marketplace. And it goes back to how we execute basically driving our licensing, and, ensuring that our customers are happy with the ramp-up of our technologies.

Speaker #3: Robin, maybe we'll add one more thing historically. If you look at the volumes of shipments of our royalties, our customer royalty shipments in the second half of every given year in the last three years, you'll see about a 40% increase.

Yaniv Arieli: Ruby, maybe we'll add one more thing.

Ruben Roy: Great. Thanks, Amir.

Ruben Roy: Historically, if you look at the volumes of shipments of our royalties, our customer royal shipments in the H2 of every given year in the last three years, you'll see about a 40% increase. In every year there is some issues, whether it's pricing or inventory or now memory. With that said, the trend was mainly around 40% sequential growth H2 versus H1. We are building that in also in our growth specs for 2026.

Speaker #3: So, and then every year there is some issues whether it's pricing or inventory or now memory. So with that said, the, the trend was mainly around, 40% sequential growth second half versus first half.

Speaker #3: And we are building that in also, in our prospects for 2026.

Speaker #5: Got it. Thank you, Yaniv. Thanks, Amir.

Ruben Roy: Got it. Thank you, Yaniv. Thanks, Amir.

Speaker #3: Thank you.

Yaniv Arieli: Thank you.

Speaker #4: Yeah. Thank you, Roy.

Amir Panush: Yeah. Thank you, Roy.

Speaker #6: The next question comes from Sujita Silva with Roth Capital. Please go ahead.

Operator 2: The next question comes from Suji D'Silva with Roth Capital. Please go ahead.

Operator: The next question comes from Suji D'Silva with Roth Capital. Please go ahead.

Speaker #7: Hi, Amir. Hi, Yaniv. Congratulations on the progress here. Amir, maybe you can talk about your as you came in, you talked about Sense Connect and Infer.

Suji Desilva: Hi, Amir. Hi, Yaniv. Congratulations on the progress here.

Yaniv Arieli: Thank you.

Suji Desilva: Amir, maybe you can talk about As you came in, you talked about Sense, Connect and Infer, and maybe today you could give us an update on that in terms of the example of traction at the same customer. Two of those or three of those versus just one, that would be helpful to understand.

Speaker #7: And maybe today you could give us an update on that in terms of the example of traction at the same customer two or two of those or three of those, versus just one.

Speaker #7: That would be helpful to understand.

Speaker #4: Yeah. definitely, Sujita. I think several names that we mentioned in the past, including, these times, we see them basically licensing multiple technologies from us.

Amir Panush: Yeah. Definitely, Suji. I think several names that we mentioned in the past, including this time, we see them basically licensing multiple technologies from us. It can be multiple technologies across Connect, but also we have more and more across multiple technologies of Connect and Infer, and in some cases, the whole suite, Connect, Sense, and Infer. We see that progression going very well, and we expect more as we keep driving those technology into the marketplace. Definitely what drives the best line flywheel or success with our customers, is very high appreciation of our wireless connectivity portfolio and on top of that, our investment and expansion in the AI or Infer overall portfolio.

Speaker #4: it can be multiple technologies across Connect, but also we have, more and more across multiple technologies of Connect and Infer. And in some cases, the whole three: Connect, Sense, and Infer.

Speaker #4: so this is we see that progression, going very well. And, we expect more as we keep driving those technology into the marketplace. But definitely what drive the best line flywheel or success with our customers, is very high appreciation of our wireless connectivity portfolio and on top of that, our investment and expansion in the AI or Infer overall, portfolio.

Speaker #4: The other things as, as, as we pointed out, Lenovo with their headset this quarter, we announced that, basically, they've been using or start ramping with our real space or, or 3D special audio technologies.

Amir Panush: The other things that as we pointed out, Lenovo with their headset this quarter, we announced that basically they've been using or start ramping with our RealSpace or 3D spatial audio technologies, and they are also a wireless connectivity, basically, customers through the semi guys that are delivering those solutions to them.

Speaker #4: And they are also, a wireless connectivity, basically, customers through the semi guys that are delivering those solutions to them.

Speaker #5: Okay. I appreciate that, Amir. Great. And then in the connectivity specifically, Bluetooth is already well penetrated. Can you update us on where Wi-Fi is in the attached curve going up in, terms of attached?

Suji Desilva: Okay. I appreciate that, Amir. Great. In the connectivity specifically, Bluetooth is already well penetrated. Can you update us on where Wi-Fi is in the attached curve going up in terms of attached? Will UWB follow a similar path or is that more of a niche technology? Thanks.

Speaker #5: And then will UWB follow a similar path, or is that more of a niche technology? Thanks.

Speaker #4: Yes. On the Wi-Fi, Yaniv can point more into the specific numbers, but we are extremely encouraged with, the ramp that we've seen first through all 2025.

Amir Panush: Yes. On the Wi-Fi, Yaniv can point more into the specific numbers, but we're extremely encouraged with the ramp that we've seen first through all 2025 and now continuing and even more in Q1 2026, where we reach all record high volume this quarter, and we expect that to continue with a very nice ramp moving so-called from the more legacy Wi-Fi into Wi-Fi 6. Within a year or 2, we'll start seeing the transition into Wi-Fi 7, plus lots of the combos of the Wi-Fi and Bluetooth. Overall, from a pattern and penetration in the marketplace, we expect as we mentioned on other calls, right, that the Wi-Fi shipments will reach a very high volume above the half a billion and more as we keep progressing and then basically augment very nicely our penetration with Bluetooth plus the combos.

Speaker #4: And now continuing and even more in Q1 '26 where we reach, all record, high volume this quarter. And we expect that to continue with a very nice ramp moving so-called from the more legacy Wi-Fi into Wi-Fi 6.

Speaker #4: And then within a year or two, we will start seeing the transition into Wi-Fi 7. Plus lots of the, the combos of the Wi-Fi and Bluetooth.

Speaker #4: So, overall, from a pattern and a penetration in the marketplace, we expect as, as we mentioned on other calls, right, that, Wi-Fi shipments will reach, very high volume above the, the half a billion and more, as we keep progressing.

Speaker #4: And then basically augment very nicely our penetration with Bluetooth, plus the combos. In terms of UWB, this is—I would call it overall a newer technology.

Amir Panush: In terms of UWB, this is, I would call it overall a newer technology. There are lots of very good indication in the marketplace from use cases and with that, the potential demand for the technology. We've seen more penetration right now in smartphone from there into different type of edge devices for location-based, for access and control. We are very encouraged with that. Now we just got a major license deals with a US customer, and there will be more to follow. Overall from a volume penetration, I said we are highly penetrate with Bluetooth. We are getting to the same level with Wi-Fi and the next to follow will be UWB.

Speaker #4: There are lots of very good indications in the marketplace from use cases, and with that, the potential demand for the technology. We've seen more penetration right now in smartphones, and from there into different types of edge devices for location-based, for access and control.

Speaker #4: so we are very encouraged with that. Now we just, got a major license deals with, US customer. And, and there will be more to follow.

Speaker #4: but overall, from a volume penetration, I say we are highly penetrated with Bluetooth. We are getting to the same level with Wi-Fi. And the next to follow will be UWB.

Speaker #5: Okay. Great. Only got to do that for that, Suji, is, that we talked about, Amir mentioned the combo chips. If you look at the Bluetooth Wi-Fi combo chip year over year, w the volume has doubled.

Suji Desilva: Okay, great. Thanks, Amir.

Yaniv Arieli: Only color that I can add to that, Suji, is, Amir mentioned the combo chips. If you look at the Bluetooth Wi-Fi combo chip year over year, the volume has doubled. We haven't opened that number up yet. We'll do it in due time. Some of the reason also that we mentioned that the Bluetooth is going down because we are counting those combo chips as combo and not Bluetooth necessarily. There is no issue in the market. It's just our count and ASPs for those combo chips are higher than the individual Wi-Fi or Bluetooth solutions in the past.

Speaker #5: We haven't opened that, number up yet. We'll do it in, in due time. But some of the reason also that we, we mentioned that the Bluetooth is going down because we are counting those combo chips is combo and not, Bluetooth.

Speaker #5: necessarily. So there is no issue in the market. It's just p our count and ASPs for those combo chips are higher than the individual Wi-Fi or Bluetooth, solutions in the past.

Speaker #5: Yaniv, you counting those in Wi-Fi units? Is that what you're saying?

Suji Desilva: Can you be counting those in Wi-Fi units? Is that what you're saying?

Speaker #3: The, the combo of Bluetooth and Wi-Fi units, yeah, doubled year over year. For Q1.

Yaniv Arieli: The combo of Bluetooth and Wi-Fi units, yeah, double year-over-year for Q1.

Speaker #5: Okay. Great. Thank you. Thank you.

Suji Desilva: Okay. Thank you. Thank you.

Speaker #3: Sure.

Yaniv Arieli: Sure.

Speaker #6: The next question comes from Sameek Chatterjee with JPMorgan. Please go ahead.

Operator 2: The next question comes from Samik Chatterjee with J.P. Morgan. Please go ahead.

Operator: The next question comes from Samik Chatterjee with J.P. Morgan. Please go ahead.

Samik Chatterjee: Great. Thanks for taking my questions, and congrats on the strong results here. Maybe just another follow-up on Wi-Fi. The 91 million number that you had there, it's pretty strong considering a seasonal sort of, you typically see a seasonal downtick into Q1. Can you just outline if there was anything in terms of a new customer, volume, et cetera, ramping into Q1 that drove that seasonality? From this sort of Q1 base, should we expect to see a similar pickup into H2 that you've historically seen from H1 to H2 perspective in Wi-Fi? Thank you. I have a follow.

Speaker #7: great. Thanks for taking my questions and congrats on the strong results here. maybe just another follow-up on Wi-Fi. the 91 million number that you had there, it's pretty strong considering a seasonal sort of you typically see a seasonal downtick into one Q.

Speaker #7: Can you just outline if there was anything, in terms of a new customer, volume, etc., ramping into one quarter that drove that seasonality? And from this sort of one-quarter base, should we expect to see a similar pickup into the second half that you've historically seen, from a first half to second half perspective, in Wi-Fi?

Speaker #7: Thank you. And have a follow-up.

Speaker #4: Yeah. Sameek, this is a great question. And actually, the ramp or the volume in Q1 of the our Wi-Fi shipments is not related to the seasonality as you pointed out.

Amir Panush: Samik, this is a great question. Actually, the ramp or the volume in Q1 of our Wi-Fi shipments is not related to seasonality, as you pointed out. It's really the migration of multiple customers, adopting our technology. Either migration from Wi-Fi 4 to Wi-Fi 6, or many of them actually new customers that start ramping with the Wi-Fi 6. I will remind everyone that we talked about more than 30 licenses, agreements that we have made in the last 2, 3 years of Wi-Fi technology. Those basically customers are now coming more and more into production. That momentum we expect to continue, and actually we should expect H2 to be stronger than H1, both based on the seasonality plus basically more and more new customers and new program basically ramping in volume for Wi-Fi.

Speaker #4: It's really the migration of multiple customers, adopting our technology. So either migration from Wi-Fi 4 to Wi-Fi 6 or many of them actually new customers that start ramping with the Wi-Fi 6.

Speaker #4: I will remind everyone that we talked about more than 30 licenses, agreements that we have made in the last two, three years of Wi-Fi technology.

Speaker #4: And those basically customers are now coming more and more into production. So that momentum we expect to continue. And actually, we should expect second half to be stronger than the first half.

Speaker #4: both based on the seasonality plus basically more and more new customers and new program basically ramping in volume for Wi-Fi. So Wi-Fi, we are really still in the ramp-up in terms of market penetration.

Amir Panush: Wi-Fi, we are really still in the ramp-up in terms of market penetration and our customers basically ramping their portfolio and their product line.

Speaker #4: And our c-customers basically ramping their, their portfolio and their product line.

Speaker #5: Got it. Got it. Got it. And just maybe,

Samik Chatterjee: Got it.

Amir Panush: It's true by the way, Samik, both to industrial and consumer. We are really doing well on both fronts with our Wi-Fi technology.

Speaker #4: And, and it's true, by, by the way, Sameek, both true industrial and consumer. So we are, we are really doing well on, on both fronts with our Wi-Fi technology.

Amir Panush: It's true by the way, Samik, both to industrial and consumer. We are really doing well on both fronts with our Wi-Fi technology.

Speaker #5: Got it. Okay. just my quick follow-up. any updates on how you're thinking about capital allocation, particularly in relation to M&A, given that it's a pretty strong year or you'll generate more cash?

Samik Chatterjee: Got it. Okay. Just one quick follow-up. Any updates on how you're thinking about capital allocation, particularly in relation to M&A? Given that it's a pretty strong year, you'll generate more cash. How are you thinking about sort of the alternatives in front of you, including if, yeah, you do pursue M&A, what would be the more sort of, targeted technology areas that you would look for? Thank you.

Speaker #5: How are you thinking about sort of the alternatives in front of you, including if, you do foresee M&A? What would be the more sort of, targeted technology areas that you would look for?

Speaker #5: Thank you.

Speaker #4: Yeah, definitely, this is a key important item within what we so-called looking to execute, and our overall strategy to scale up the company.

Amir Panush: Yeah, definitely. This is a key important item within what we're so-called looking to execute and our overall strategy to scale up the company. Looking into an M&A options for us. The focus there will be around so-called technologies that complement our success in the smart edge era. We have more focus on IP overall in order to build the scale. You know, we talk about connections and infer within those technologies and augmented technologies. I think that's what we are really targeting, and hopefully we'll be able to talk about it as we progress through the year.

Speaker #4: Looking into an M&A, options for us. The focus there will be around so-called technologies that complement our success in the smart edge era, with more focus on IP overall in order to build the scale.

Speaker #4: So, you know, we talk about connections in fair within those technologies. And, and augmented technologies. I think that's what the, we are really targeting and, hopefully we'll be able to talk about it as we progress through the year.

Speaker #5: Thank you. Thanks for taking my questions.

Samik Chatterjee: Thank you. Thanks for taking my questions.

Speaker #3: Thank you.

Yaniv Arieli: Thank you.

Speaker #4: Yeah. Thanks, Sameek.

Amir Panush: Yeah. Thanks, Samik.

Speaker #6: The next question comes from Gary Mobley with Loop Capital. Please go ahead.

Operator 2: The next question comes from Gary Mobley with Loop Capital. Please go ahead.

Operator: The next question comes from Gary Mobley with Loop Capital. Please go ahead.

Speaker #7: Hi, guys. Thanks for taking my question. Looking specifically at the CEVA wavelengths, the RF subsystem there, I know the highlight that you, put in front of us today is, more, more of a system-level license agreement w you know, including the RF.

Gary Mobley: Hi, guys. Thanks for taking my question. Looking specifically at the CEVA-Waves Links, the RF subsystem there, I know the highlight that you put in front of us today is more of a system-level license agreement with, you know, including the RF. If I'm not mistaken, that RF subsystem might be unique to a specific manufacturing process node, TSMC 12 nanometer specifically. Can you speak to how you might, you know, move forward in broadening that, I guess the scope of the RF subsystem across different process nodes and different boundaries and how that might affect the overall licensing for CEVA-Waves Links?

Speaker #7: But if I'm not mistaken, that RF subsystem might be unique to a specific manufacturing process node, TSMC 12-nanometer specifically. Can you speak to how you might, you know, move forward in broadening that, that, I, I guess the scope of the RF subsystem across different process nodes and different boundaries and how that might affect the overall licensing for, for wavelengths?

Speaker #4: Yeah, Gary. Great question. So yeah, the links to Hangon that we announced previously was around 12-nanometers TSMC. And overall, what we are executing, our strategy is actually to go beyond one process node or one foundry.

Amir Panush: Yeah, Gary, great question. Yeah, the Links200 that we announced previously was around 12nm TSMC. Overall, what we are executing our strategy is actually to go beyond 1 process node or 1 foundry. I think we are well-positioned with the access that we have in the market from the number of customers that have licensed our digital IP technology to have very good sense of where the roadmap is heading in terms of the process node needs as well as the type of foundries that they are looking to partner with. Yeah, we are not going to support all different options out there and permutation, and definitely some customers will build with their own RF.

Speaker #4: And I, I and also, I, I think we are well positioned with the access that we have in the market from the number of customers that have licensed our digital IP technology, to have very good sense of where the roadmap is heading in terms of the process node needs as well as the type of foundries that they are looking to partner with.

Speaker #4: And yeah, we are not going to support all different options out there and permutation. And definitely, some customers will build with their own RF.

Speaker #4: But I'm, I'm very confident that we can so-called go and support the majority or the significant portion of where the market is heading in terms of the process need and the foundry.

Amir Panush: I'm very confident that we can so-called go and support the majority or the significant portion of where the market is heading in terms of the process need and the foundry. We'll have so-called multiple options there, but we are not going to cover the whole spectrum.

Speaker #4: So we'll have so-called multiple options there. but we are not going to cover the whole spectrum.

Speaker #5: Thanks for that. And for a follow-up, I wanted to ask in general about the license pipeline. You know, how does it look compared to maybe a year ago?

Gary Mobley: Thanks for that. For a follow-up, I want to ask in general about the license pipeline. You know, how does it look, you know, compared to maybe a year ago? If you can give us an update as to what might be recurring in license revenue and what % still remains, you know, one time in nature.

Speaker #5: And if you can give us an update as to what might be recurring in license revenue and what percent still remains, you know, one-time in nature.

Speaker #4: There are several so-called fundamental trends that we are that, encourage us. And we feel good with the perspective of our licensing business. One, we see more and more customers repeating customers coming again.

Amir Panush: There are several so-called fundamental trends that encourage us, and we feel good with the perspective of our licensing business. One, we see more and more customers, repeating customers coming again, going from one generation to the next. The other one is more customers are coming to license multiple technologies, either by adding additional technology or just from the start go looking for multiple technology. The last piece is what we are highlighting this quarter is really coming and licensing solutions, which at the end day brings more value to our customers and help us so-called to have better economics of the deals, including the licensing portion. When we take all those three into account, overall, we feel good, we feel confident with where we are in terms of the pipeline, our ability to execute our licensing business.

Speaker #4: Going from one generation to the next. The other one is more customers are coming to license multiple technologies, either by adding additional technology, or just from the start go looking for multiple technologies.

Speaker #4: And the last piece is, what we are highlighting this quarter is really coming in licensing solutions, which at the end of the day brings more value to our customers and helps us, so-called, to have better economics of the deals, including the licensing portion.

Speaker #4: When we take all those three into account, overall, we feel we feel good. We feel confident with where we are in terms of the pipeline, our ability to execute our licensing business.

Speaker #4: And I think the last few quarters have shown that, including this quarter. So I would say overall, we look at the year as, as, as a good growth year on licensing.

Amir Panush: I think the last few quarters have shown that, including this quarter. I would say overall, we look at the year as a good growth year in licensing, and the pipeline really supports it well.

Speaker #4: And the pipeline really supports as well.

Speaker #5: Thank you.

Gary Mobley: Thank you.

Speaker #3: Thank you, Gary.

Yaniv Arieli: Thank you, Gary.

Speaker #6: The next question comes from Josh Buckhalter with TD Cowan. Please go ahead.

Operator 2: The next question comes from Joshua Buchalter with TD Cowen. Please go ahead.

Operator: The next question comes from Joshua Buchalter with TD Cowen. Please go ahead.

Speaker #7: Hey, guys. Thanks for taking my question. And, congrats on the results. maybe I wanted to start big picture. You know, we're seeing sort of, a lot of positivity in the CPU space as compute resources are, are moving o you know, o-o-increasingly away from or, or in addition to, like, being complemented by outside of the AI server rack.

Joshua Buchalter: Hey, guys. Thanks for taking my question and congrats on the results. Maybe I wanted to start big picture. You know, we're seeing sort of a lot of positivity in the CPU space as compute resources are moving, you know, increasingly away from or in addition to, like, being complemented by outside of the AI server rack. I mean, could you maybe reflect on where we are on the embedded side in that adoption curve? Specifically, any updates or major momentum on the NPU side from the quarter we could, you wanted to highlight? Thank you.

Speaker #7: I mean, could you maybe reflect on where we are on the embedded side in that adoption curve a-and specifically any updates or major momentum on the MPU side from the quarter we could, you wanted to highlight?

Speaker #7: Thank you.

Speaker #4: Yeah. Great question, Joe. So, first, from a so-called momentum of CPU, this is what we have been talking about for the last few quarters, about the so-called hybrid AI model, and things are more moving into the edge.

Amir Panush: Great question, Josh. First from a so-called the momentum of CPU, this is what we have been talking about for the last few quarters, about so-called the hybrid AI model, and things are more moving into the edge. This is very encouraging to see that that's really happening in the market. Also other players in the market are able to basically execute to that and show that progress. We need to keep in mind that when we look at our connect, sense, and infer IP portfolio, it actually complements extremely well CPU, whether that's CPU based on Arm architecture or the other RISC-V architecture. We are really indifferent to that, and we can support both. That puts us in a good position.

Speaker #4: So this is very encouraging to see that that's really happening in the market, and also other customers and other players in the market are able to basically execute to that and show that progress.

Speaker #4: we need to keep in mind that when we look at our Connect Sensor and Infer, IP portfolio, it's actually complements extremely well CPU, whether that CPU based on data architecture or, or the other RISC-V architecture.

Speaker #4: So we are really, indifferent to that. And we can support both. so that puts us in a good position. On the NPU specifically, that's where we are building up, again, a portfolio of NPUs that goes along any kind of CPU architecture.

Amir Panush: On the NPU specifically, that's where we are building up, again, a portfolio of NPUs that goes along any kind of CPU architecture. I think that's where we're also uniquely positioned, focusing on the NPU technology itself as accelerator to the CPUs that are out there. The more CPU drives more adoption of AI at the edge, the more opportunities we will see with our NPUs. Overall, all those things are encouraging so-called activities and potential tailwinds for us as we progress through the year and next year.

Speaker #4: And I think that's where we are also uniquely positioned, focusing on the NPU technology itself as accelerator to the CPUs that are out there.

Speaker #4: The more CPU drives more adoption of AI at the edge, the more opportunities we will see with our NPUs. So overall, all those things are encouraging so-called, activities and potential tailwinds for us as we progress through the year and next year.

Speaker #7: Thank you for the color there. And then maybe, you know, I could follow up on the second half outlook. You know, a lot of companies have flagged potential cuts in the second half from the memory headwinds.

Joshua Buchalter: Thank you for the color there. Maybe, you know, I could follow up on the H2 outlook. You know, a lot of companies have flagged potential cuts in H2 from the memory headwinds. Have you guys seen anything yet that's impacted your customers? I was also hoping you could maybe walk through what are the expectations that you have in your H2 outlook for, you know, the large North American smartphone customer that has, you know, some of your IP on their modem. Thank you.

Speaker #7: Have you guys seen anything yet that's impacted your customers? And then I was also hoping you could maybe walk through what are the expectations, th-that you have in your second half outlook for, you know, the, the large North American smartphone customer that has, you know, some of your IP on their modem.

Speaker #7: Thank you.

Speaker #3: Sure. So, you know, w-we built some of our expectations, by top down or, with, with knowing that the market's in the second half. With the seasonality of, Christmas and the ramp-up for introduction of new products, around that time frame, i-is strong.

Yaniv Arieli: Sure. You know, we built some of our expectations by top-down or with knowing that the markets in the H2 with the seasonality of Christmas and the ramp up for introduction of new products around that timeframe is strong. We'll need to see how the market deals with the memory pricing and shortages. Right now, we haven't heard anything specific from our customers other than what we have seen in the mobile space on the low-tier phones that we have seen and other companies have talked about Qualcomm, Arm in the first Q1 of the year with mentioning the recovery going forward. I don't think we have seen anything yet.

Speaker #3: We'll need to see how the market deals with the memory pricing and shortages. But right now, we haven't heard anything specific from our customers, other than what we have seen in the mobile space, on the low-tier phones.

Speaker #3: that we have seen in other companies have talked about, Qualcomm ARM in the first, in the first quarter of the year, with, mentioning the, the, the recovery, going forward.

Speaker #3: So, I don't think we have seen anything yet. I think the market has its way to overcome some of the hurdles when we get to the high season.

Yaniv Arieli: I think the market has its way to overcome some of the hurdles when we get to the high season. We have built all that in, including the North American OEM that, you know, doesn't share its internal plans and doesn't share exactly the timing of introduction of new products, whether they're based on their own modem or not. We, we have our own estimates that we have built in this model. The rest will look and get the royalty reports on a quarterly basis, and based on that, be able to report.

Speaker #3: and we have b-built all that in, including, the North American OEM that, you know, doesn't share its, internal plans and doesn't share exactly the, the timing of introduction of new products, whether they're based on their own modem or not.

Speaker #3: And we, we have our own estimates that we have built in this model. The rest will look and get the royalty reports on a quarterly basis, and based on that, be able to report.

Speaker #3: Again, historically, and the more we have added, combo chips like we talked about today with higher ASPs, the more that we have the automotive AI, a-and XP and Renaissance helping us this year, which weren't around last year, with royalty contribution, the more 5G networks that started the year very strong, and then the OEM opportunities in the US, it, it looks like, a stronger and promising second half.

Yaniv Arieli: Historically, the more we have added the combo chips like we talked about today with higher ASPs, the more that we have the automotive AI, NXP and Renesas helping us this year, which weren't around last year with royalty contribution, the more 5G networks that started the year very strong, and then the OEM opportunities in the US, it looks like a stronger and promising second half. This is the reason we took our guidance to the top range of the previous annual guidance of the 8% to 12%.

Speaker #3: And this is the reason we took our guidance to the top range of, the previous, annual, guidance of the 8 to 12 percent.

Speaker #7: Thank you.

Joshua Buchalter: Thank you.

Speaker #3: Thank you, Josh.

Yaniv Arieli: Thank you, Josh.

Speaker #6: The next question comes from Madison Dipalo with Rosenblatt Securities. Please go ahead.

Operator 2: The next question comes from Madison DiPaolo with Rosenblatt Securities. Please go ahead.

Operator: The next question comes from Madison DiPaolo with Rosenblatt Securities. Please go ahead.

Speaker #8: Hi. This is Maddie calling o-on behalf of Kevin Cassidy. I was just wondering which end markets you're are expressing the most interest for, in the NeuroPro?

Madison DiPaolo: Hi, this is Maddie calling up on behalf of Kevin Cassidy. I was just wondering which end markets are expressing the most interest for in the NeuPro?

Maddie De Paola: Hi, this is Maddie calling up on behalf of Kevin Cassidy. I was just wondering which end markets are expressing the most interest for in the NeuPro?

Speaker #3: Could you say that again, Maddie? Sorry.

Yaniv Arieli: Say that again, Maddie. Sorry.

Amir Panush: Which end markets are expressing the most interest in the NeuPro? It's broad-based, I would say, where we see it in automotive, we see it in some industrial application. We see it also in smart home and consumer application. If we look at the 10 plus more deals that we so-called licensed last year, it's really across all those four markets that I mentioned. I can't point to one that is much more than the others very significantly. It's nicely distributed and wide-based. We mentioned also the last quarter, a PC OEM, so we are in the PC market consumer. Again, smartphone, surveillance, and automotive, industrial.

Speaker #8: Which end markets are expressing the most interest in the NewPro?

Maddie De Paola: Which end markets are expressing the most interest in the NeuPro?

Speaker #4: in the NewPro, yeah. so it's, it's board-based, I would say, where we see it's in automotive. We see it in some industrial application. We see it also in smart home and consumer application.

Amir Panush: It's broad-based, I would say, where we see it in automotive, we see it in some industrial application. We see it also in smart home and consumer application. If we look at the 10 plus more deals that we so-called licensed last year, it's really across all those four markets that I mentioned. I can't point to one that is much more than the others very significantly. It's nicely distributed and wide-based. We mentioned also the last quarter, a PC OEM, so we are in the PC market consumer. Again, smartphone, surveillance, and automotive, industrial.

Speaker #4: if we look at the 10-plus more deals that we so-called licensed last year, it's really across all those four markets that I mentioned. So I can't point to one that is much more than the others very significantly.

Speaker #4: It's nicely distributed and, and, and wide-based. So we mentioned also the last quarter, a PC OEM, so we are in the PC market, consumer.

Speaker #4: Again, smart home, surveillance, and, and automotive industrial, yeah.

Speaker #8: Okay. Thank you.

Operator 2: Okay. Thank you.

Maddie De Paola: Okay. Thank you.

Speaker #4: You're welcome.

Amir Panush: You're welcome.

Speaker #3: Thank you.

Yaniv Arieli: Thank you.

Speaker #6: The last question today comes from Martin Gang with Oppenheimer. Please go ahead.

Operator 2: The last question today comes from Martin Yang with Oppenheimer. Please go ahead.

Operator: The last question today comes from Martin Yang with Oppenheimer. Please go ahead.

Martin Yang: Hi. Thank you for taking my question. My first question is on the Bluetooth radio. Is there any plan or intention to extend that IP to other connectivity products, notably Wi-Fi?

Speaker #9: hi. Thank you for taking my question. My fir f-first question is, the Bluetooth radios. Is there any plan or intention to extend the IP to other connectivity products, notably Wi-Fi?

Speaker #4: Yeah, Martin, good questions. yeah, definitely. So w-we started and announced this product first. At the end of the day, we are very strong capabilities across the spectrum of wireless connectivity technology.

Amir Panush: Martin, good questions. Definitely. We started and announced this product first. At the end of the day, we have very strong capabilities across the spectrum of wireless connectivity technology, and the intention and the plan is definitely to expand this to so-called a full solution offering across our wireless connectivity portfolio. Starting with Bluetooth, as you mentioned, the next natural thing will be Wi-Fi, and then also UWB and our other technologies. Definitely that's the plan. Overall, also this quarter we announced on the satellite side that we're also moving more into complete so-called basement solution. Not just so-called offering the components like DSP accelerators, but really the whole, the whole basement subsystem.

Speaker #4: And, and, the intention and the plan is definitely to expand this to what we call a full solution offering across our wireless connectivity portfolio. So starting with Bluetooth, as you mentioned, the next natural thing will be Wi-Fi.

Speaker #4: And then also UWB and our other technologies. definitely, that's the plan. And overall, also, th-this quarter, we announced on the satellite side that we are also moving more into complete so-called basement solution.

Speaker #4: Not just so-called offering the components like, DSP accelerators, but really the whole, the whole basement subsystem. And that resonates very, very nicely with customers, especially customers that want to make a decision moving from, m-make to, to buy.

Amir Panush: That resonates very, very nicely with customers, especially customer that wants to make a decision moving from make to buy, because they need to rely on more of a so-called ready-to-go solution to help them with time to market and success overall.

Speaker #4: Because they need to rely on more of a so-called ready-to-go solution to help them, with time-to-market, and, and, and success overall.

Speaker #9: Thanks, Amir. A follow-up on your answer, you mentioned that the satellite communication. Is that primarily still in, o-on the market deployment regarding smartphone with, satellite-based messaging capabilities, or are you seeing any more emerging applications of that?

Martin Yang: Thanks, Amir. A follow-up on your answer. You mentioned that satellite communication, is that primarily still in on market deployment regarding smartphone with satellite-based messaging capabilities or are you seeing any more emerging applications of that?

Speaker #4: No, we're actually seeing much more potential on the on the emerging applications as well. So if we look at, the different types of OEM out, out there, they're basically moving to provide more and more as a as a service.

Amir Panush: No, we're actually seeing much more potential on the emerging applications as well. If we look at the different types of OEM out there, they're basically moving to provide more and more as a service. Part of the service, they need a complete solution end to end. We are offering the wireless communication both from the terminal side as well as from the satellite side. They will build a so-called a complete end-to-end offering with the service. That service is really to be able to have ubiquitous type of connectivity, whether it's for industrial use cases or logistical use cases and so on, or even places where there is very little coverage of wireless infrastructure and they want to provide that augmentation. Those are all about system well beyond just mobile.

Speaker #4: And parcel part of the service they need to complete solution end-to-end. And we are offering the wireless communication both from the terminal side as well as from the satellite side.

Speaker #4: And then they will build on so-called, so-called the complete end-to-end offering with the service. And that service is really to be able to have your 'big ears' type of connectivity, whether it's for industrial use cases, logistical use cases, and so on, or even places where there is very little coverage of wireless infrastructure, and they want to provide that augmentation.

Speaker #4: So this—those are all about systems well beyond just mobile.

Speaker #9: Got it. Thank you.

Martin Yang: Got it. Thank you.

Speaker #3: Thank you, Martin.

Yaniv Arieli: Thank you, Martin.

Speaker #4: Yeah, thanks a lot, Martin.

Yaniv Arieli: Yeah, thanks a lot, Martin.

Speaker #6: This concludes our question and answer session. I would like to turn the conference back over to Amir Panush for any closing remarks.

Operator 2: This concludes our question and answer session. I would like to turn the conference back over to Amir Panush for any closing remarks.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Amir Panush for any closing remarks.

Speaker #4: Thank you. In closing, we believe CEVA is well positioned as the industry continues to evolve towards physical AI, where connectivity, sensing, and inference con-converge at the edge.

Amir Panush: Thank you. In closing, we believe CEVA is well positioned as the industry continues to evolve towards physical AI, where connectivity, sensing, and inference converge at the edge. Our expanding portfolio, combined with our strategy to deliver more integrated system-level solutions, is enabling us to increase our value per customer and strengthen our long-term royalty model. We remain focused on executing our strategy, deepening customer relationships, and driving sustainable growth. Thank you for your continued support. Richard, I will hand over to you to wrap it up.

Speaker #4: Our expanding portfolio combined with our strategy to deliver more integrated, system-level solutions is enabling us to increase our value per customer and strengthen our long-term royalty model.

Speaker #4: We remain focused on executing our strategy, deepening customer relationships, and driving sustainable growth. Thank you for your continued support. Richard, I will hand over to you to wrap it up.

Speaker #1: Thank you, Amir. As a reminder, the prepared remarks for this conference call are accessible through the investor section of our website. With regards to upcoming events, we will be participating in the following conferences.

Richard Kingston: Thank you, Amir. As a reminder, the prepared remarks for this conference call are accessible through the investors section of our website. With regards to upcoming events, we will be participating in the following conferences: Oppenheimer 27th Annual Israeli Conference on 18 May in Tel Aviv, the JPMorgan 2026 Global Technology Media and Communications Conference 20 May in Boston, Massachusetts, TD Cowen's 54th Annual Technology Media and Communications Conference 27 May in New York, Stifel Boston Cross Sector 1-on-1 Conference 2 June in Boston, the 6th Annual Rosenblatt Technology Summit, The Age of AI, 10 June, being held virtually, and the 16th Annual Roth London Conference 16 to 18 June in London, England. Further information on these events and all events we will be participating in can be found on the investor section of our website. Thank you and goodbye.

Speaker #1: Oppenheimer 27th Annual Israeli Conference on May 18th in Tel Aviv. The JP Morgan 2026 Global Technology, Media, and Communications Conference, May 20th in Boston, Massachusetts.

Speaker #1: TD Cowen's 54th Annual Technology, Media, and Communications Conference, May 27th in New York. Stifel's Boston Cross-Sector One-on-One Conference, June 2nd in Boston. The 6th Annual Rosenblatt Technology Summit, The Age of AI, June 10th, being held virtually.

Speaker #1: And the 16th Annual Roth London Conference, June 16th to 18th in London, England. Further information on these events and all events we will be participating in can be found on the investor section of our website.

Speaker #1: Thank you and goodbye.

Operator 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.