Thank you, Rocco. Good morning, everyone, and welcome to CEVA's second quarter 2026 earnings conference call.

Joining me today are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer. Before handing the call over to Amir, I'd 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 our results to differ materially from those expressed or implied by such statements.

We will also discuss certain non-GAAP financial measures, which we believe provide investors with additional insight into our core operating performance. Reconciliations between our GAAP and non-GAAP results are included in the earnings release issued this morning and available on the Investor Relations section of our website.

With that, I'll turn the call over to Amir. Amir?

Thank you, Richard, and good morning, everyone. We delivered another strong quarter with revenue increasing 13% year-over-year to $29 million, fueled by licensing and related revenue growing 21% to hit highest level in 3 years.

The quarter also benefited from a sequential recovery in royalty revenue driven by continued momentum across wireless connectivity, ramping automotive AI programs, and market share gains in smartphones. During the quarter, we signed 10 licensing agreements, including two with first-time customers and two directly with OEMs.

More important than the number of agreements is the quality of those agreements. Increasingly, customers are adopting broader platforms and deeper collaborations that strengthens both our near-term licensing business and our long-term royalty opportunity.

I would like to focus today on two themes that we believe highlight an important shift in the semiconductor industry and explain why CEVA and our technologies are increasingly well-positioned for long-term growth. The first is the continued migration of intelligence from the cloud to the smart edge.

This is a trend we have discussed for several years, and one that is increasingly driving demand for our higher-performance connectivity, sensing, and AI technologies. During the quarter, we announced that we believe is one of the most strategically significant AI licensing agreements in CEVA's history.

A leading global AI and computing platform company selected our NeuPro-M NPU IP for its next-generation custom AI silicon. This agreement is significant for several reasons.

First, it represents a new category of AI customers for CEVA. Historically, our AI licensing activity has primarily been with semiconductor companies and device OEMs.

This customer develops both the hardware platform and the operating system, allowing us to collaborate at a much deeper level by optimizing not only the NPU hardware, but also the AI software stack for its models, applications, and workloads. The expertise we gain through this engagement extends well beyond a single customer program.

Co-optimizing AI hardware and software at the platform level will strengthen both our hardware and software road maps, and further enhance our AI offering for future customers. More broadly, we believe this agreement reflects an important industry trend where companies with some of the world's large engineering organizations are increasingly choosing to leverage proven AI IP rather than developing every component internally.

For these companies, the question is no longer whether they have the engineering capability to build an NPU, but whether doing so represents the best use of their engineering resources. By licensing production-proven IP, they can focus their investments on the hardware, software, and AI experiences that differentiate their platforms, while reducing development risk and accelerating time to market.

The second trend we are seeing is customers increasingly adopting broader platform solutions rather than individual IP blocks. Two agreements from the quarter illustrate this well.

A high-volume U.S. semiconductor company chose to adopt a complete chip build on our Wi-Fi 6 and Bluetooth Low Energy IP, originally developed in partnership with another CEVA customer, rather than licensing the underlying IP blocks individually.

The decision reflects the same preference for production-proven, complete solutions over developing internally or licensing component IP. Separately, another U.S.

customer expanded a relationship that began with a single baseband component by adopting our complete baseband processing subsystem. As semiconductor development becomes increasingly complex, customers are recognizing that leveraging proven subsystem IP can significantly reduce engineering effort and execution risk, all while accelerating time to market, enabling them to concentrate their internal resources on the technologies that most differentiate their products.

These are different customers and different technologies, but they demonstrate the same underlying trend. Companies are increasingly choosing production-proven hardware, software, and system expertise delivered as complete platforms rather than assembling individual IP blocks themselves.

For CEVA, this expands both the scope and value of our engagements. Broader platform adoption increases our content per design, deepens our integration into customer products, and creates larger, longer-term customer relationships, and increases the royalty opportunity associated with each customer platform as those products enter production.

These successful outcomes also validate the strategy we have been executing over the past several years. We have invested in expanding our diverse portfolio beyond individual IP blocks to more complex hardware and software platforms across connectivity, sensing, and AI.

As customers look to accelerate development while reducing execution risk, we believe this positions CEVA to capture a greater share of silicon content in future designs. Beyond these strategic engagements, activity remained broad-based across our business.

In addition to the AI and platform wins I just discussed, we signed multiple follow-on agreements with existing customers alongside our new customer engagements, demonstrating our ability to both expand long-term relationships and consistently win new business. Across connectivity, we secured customer engagements spanning the United States, Europe, China, and the broader Asia-Pacific region, reinforcing the global demand for our technologies.

We also expanded our sensing portfolio with the launch of our Microsoft-certified RealSpace Elevate embedded application software, extending our spatial audio technology into the PC gaming market for the first time. Taken together, these achievements reinforce the strength of our connect, sense, and infer offering to enable physical AI use cases.

While AI is creating exciting new opportunities for CEVA, connectivity remains the foundation of physical AI and continues to be the entry point for many of our customer relationships. Increasingly, those relationships expand over time as customers adopt additional technologies across our portfolio.

Now turning to royalties. We are beginning to see the benefits of the broader customer engagements we have been building over the past several years translate into an increasingly diversified royalty business.

Royalty revenues increased both sequentially and year-over-year, supported by continuous trends across our wireless connectivity portfolio, the growing contribution from automotive AI deployment, and share gains in smartphones. Wireless connectivity remained particularly strong with healthy year-over-year growth in both Wi-Fi and Bluetooth shipments, while cellular IoT shipments reached another quarterly record.

In automotive, customer programs continue to ramp, reflecting increasing AI content in next-generation vehicles. Overall, the quarter demonstrates the continued evolution of CEVA's business and the continued market leadership of our IP.

We are expanding the breadth of our licensing engagements, increasing the value of every customer relationship through broader platform adoption, and building a more diversified royalty engine. Together, these trends reinforce our confidence in both our near-term outlook and our long-term growth opportunity.

With that, I'll turn the call over to Yaniv to review our financial results.

Thank you, Amir. Good morning, everyone.

I'll now review our financial results for the second quarter. Revenue for the second quarter increased 13% year-over-year and 7% sequentially to $29 million, reflecting another exceptionally strong licensing quarter and continued improvement in our royalty business.

Our trailing 12-month licensing and related revenues increased 13% to around $70 million. The revenue breakdown is as follows: Licensing and related revenue increased 21% year-over-year to $18.2 million, reflecting 63% of our total revenues and our strongest licensing quarters in 3 years.

Importantly, the strength of the quarter reflects the broader platform engagements Amir described earlier, which not only increase licensing and related revenues today, but also expand the future royalty opportunity associated with those customer programs. Royalty revenue was $10.8 million, reflecting 37% of our total revenues, compared to $10.7 million for the prior year period and up 17% sequentially, reflecting continued strength across wireless connectivity and automotive AI, and share gains in smartphones.

Gross margin was 87% on GAAP basis and 88% on non-GAAP basis, in line with our guidance. GAAP operating expenses were $27.5 million, below the low end of our guidance range.

Non-GAAP operating expenses, excluding equity-based compensation expenses, amortization of acquired intangibles, and acquisition-related costs, were $22.3 million at the low end of our guidance. GAAP operating loss improved to $2.1 million compared to $4.5 million in the second quarter of last year.

Non-GAAP operating income increased to $3.1 million compared to $0.8 million in the prior year, while non-GAAP operating margins expanded to 11%, up from 3% a year ago. Both measures also improved significantly on a sequential basis, demonstrating continued operating leverage.

Net financial income was $1 million compared to $2.1 million in the second quarter of 2025 and below our guidance of $1.7 million, primarily due to foreign exchange effects related to our Israeli shekel-denominated lease obligations. Income tax expenses are approximately $1.8 million, slightly above the guidance, reflecting the geographic mix of licensing and royalty revenues recognized during the quarter.

GAAP net loss was $2.9 million or 10 cents diluted share compared with GAAP net loss of $3.7 million or 15 cents per share in the second quarter of 2025. Non-GAAP net income increased 28% year-over-year to $2.3 million, while non-GAAP diluted earnings per share increased to 8 cents compared to 7 cents in the prior year period.

On a sequential basis, both non-GAAP net income and diluted earnings per share doubled. With respect to other related data: During the quarter, customers shipped 567 million CEVA-powered devices, an increase of 16% compared to the second quarter of 2025.

Of those shipments, 61 million units, or 11% of the total, were mobile handset modem shipments, compared to 55 million units in the prior year period, reflecting improving smartphone royalties driven by stronger market share in entry-level smartphones, together with continued expansion in the premium tier. Consumer IoT increased to 487 million units compared to 409 million units a year ago.

Industrial IoT shipments were 19 million units compared to 24 million units in the prior year. Despite the lower unit volume, industrial royalty revenues increased 7% year-over-year, reflecting a richer mix of higher-value products, including automotive AI and wireless infrastructure.

Looking at our connectivity technologies, these shipment metrics continued to demonstrate the breadth and diversification of our royalty base across multiple end markets. Bluetooth shipments increased 16% year-over-year to 295 million units.

Cellular IoT shipments reached another quarterly record of 68 million units, up 3% year-over-year. Wi-Fi shipments increased 28% year-over-year to 80 million units.

As for the balance sheet items: We ended the quarter with approximately $221 million in cash, cash equivalents, marketable securities, and cash deposits, providing significant financial flexibility to support continued investments in our technology road map while maintaining a disciplined approach to capital allocation, including selective, strategic M&A opportunities. Days sales outstanding were 70 days.

During the quarter, we generated $5.8 million of cash from operating activities. Depreciation and amortization expenses was $0.8 million, while capital expenditure totaled $0.6 million.

At the end of the quarter, we employed 406 people, including 327 engineers, reflecting our continued investment in innovation while maintaining disciplined expense management. Turning to the outlook: We delivered a strong first half of 2026, supported by strong licensing execution, improving royalty trends, and meaningful expansion in non-GAAP profitability.

Just as importantly, the quality of the customer engagements we secured during the first half provides a strong foundation for future growth across both licensing and royalties. Reflecting our first half performance and current visibility, we are raising our full-year revenue outlook.

We now expect 2026 revenue to increase between 13% and 15% over 2025, compared with our previous expectation of 12% growth that we shared at the end of the first quarter. We continue to expect the second half to be stronger than the first, consistent with our normal seasonal profile, while recognizing that memory pricing dynamics and broader supply constraints remain important industry variables.

On the expenses, we maintain our previous guidance. Total operating cost of revenues and operating expenses are still expected to increase by approximately 8% on an annual basis over 2025 as we continue to invest in our road map while carefully managing cost, mitigating foreign exchange headwinds.

As a result of stronger revenue growth together with disciplined expense management, we now expect non-GAAP operating income to increase approximately 70%, 7-0, year-over-year, while non-GAAP net income is expected to increase approximately 50%, 5-0, both above our previous expectations. Third quarter guidance: Revenue is expected to be in the range of $30.5 million to $34.5 million.

Gross margin is expected to be approximately 87% on GAAP basis and 88% on non-GAAP basis, excluding approximately $0.2 million of equity-based compensation expenses and $0.1 million of amortization of acquired intangibles. GAAP operating expenses are expected to be between $28.2 and $29.2 million, including approximately $5.4 million of equity-based compensation expense, and $0.1 million for amortization of acquired intangibles, and $0.1 million for acquisition-related costs.

Non-GAAP operating expenses are expected to be similar to the second quarter level between $22.5 to $23.5 million. Net financial income is expected to be approximately $2 million.

Income tax expense is expected to be approximately $1.9 million, and weighted average diluted share count is expected to be approximately 28.2 million shares on GAAP basis and 30 million shares on non-GAAP basis. Rocco, we are ready to take the questions now.

Thanks for taking my question, and congratulations on the strong results. You had mentioned about a large company bringing their wireless design in-house rather than buying someone else's.

Is that a trend you're seeing longer-term, or maybe you could talk about the trend you're seeing for more integration of technologies vertically within your customers?

Definitely, Kevin. Good morning, and thanks.

Definitely, we see that as a trend. As part of our strategy, as I mentioned also on the previous calls, was to really come with a complete offering of IP, including the radio IP.

What we see, some of the customers are basically looking for a complete turnkey offering that they can so-called integrate into their complete portfolio, and taking that very quickly in terms of time to market and proven technology and solutions. Definitely, we see some of those OEMs and semiconductors companies looking to get the full solution from us.

What does that mean for CEVA? Does that mean a little more stickiness to your IP if you're selling more to one customer, or I guess just less opex as well?

This is a positive trend for CEVA?

Kevin, thanks for the question. That's definitely a very positive trend.

It actually brings three additional values for us. One, on the agreement itself, the licensing agreements, what we see, both the licensing in terms of the deal size, as well as the future royalty, is meaningfully higher than just selling the component IP.

Also on top of that, it's really the stickiness with the customers. That helps the customers to reduce their own engineering effort and relying more on CEVA capabilities, which at the end of the day drive a stronger stickiness moving forward.

As well as really, it helps significantly in the discussion of the make versus buy. It's harder for large companies to rely on CEVA technology if we provide only partial solution or just part of the component IP.

The more we're offering the complete solution, it's easier for them and drive more the decision towards buying IP from CEVA rather than doing that internally. Overall, this is a very, very positive trend and fits very well to our strategy of how we drive our engineering activities and overall innovation in IP.

Kevin, I maybe would add one more thing that in the wireless market, there is a new trends that come every couple of years, every year to two years, and depends on the technology itself, new standard, the new features. By being able to provide those, we also have recurring revenues of new licensing deals for every one of these enhancements going forward.

It's a very strong stickiness mechanism also because of the nature of those wireless connectivity that get upgraded and updated all the time. We're able obviously to do that.

Great. Congratulations, again.

Thank you.

Thank you, Kevin.

Hi, Amir. Hi, Yaniv.

Congratulations on the progress here. Amir, you talked at length about how you're engaging deeper with the customers, maybe a hardware/software integration, perhaps more sort of product development effort.

Is this going to result in more custom IP blocks or more continued standard products? Will it affect kind of how we should think about royalty rate for you guys?

Is that the right framework to think about these kind of engagements?

Thanks for the question, Suji. Overall with our mix of licensing agreements, we do see more, I would call it, custom solutions offering and demand from the market.

That's, again, that goes along very nicely with the trends of how we're investing in our resources and what we see as the potential in the market. Going back to your point on royalty, it's actually where we see significant potential increase of those royalty, as the royalty per unit that we can extract by providing the custom offering and the complete offering is meaningfully higher than a component IP.

For example, we talked about a very strategic new AI deal that we've just signed with one of the top large OEMs out there that have both operating system capabilities and hardware and software. That level of integration and customization drive significantly much higher royalty per unit that we will get versus our typical NPU offering.

Amir. That's great.

Thanks. Then my other question is on the edge AI market and the trend toward edge AI from the cloud.

There's a lot of kind of chip and IP sort of opportunity there from various players. I'm wondering if there are any particular end applications that are initially been opportunities for you as you see traction in the edge AI market, or where we should think about your best near-term opportunities are.

We definitely see that in the high-end compute edge markets, whether it's the PC, the mobile, those type of applications. We also see it right now entrench very, very deeply in the automotive for ADAS system.

What we will see more is into robotics, humanoid. This is right now coming also into play.

Thanks, Amir. Thanks, Yaniv.

Thank you, Suji.

Hi, thank you so much for taking my question. I had two.

One is on the smartphone. You mentioned improving share of the entry smartphone as well as premium.

Could you please speak a bit more, what are you seeing there, and and maybe what's kind of helpful from the standpoint of share share gains on the entry-level smartphone for for you guys?

Teya. Thanks for the question.

Related to the entry-point customer or the lower-tier customers in the handset mobile market, definitely, we've seen very meaningful recovery and the royalty between Q2 and Q1. For this quarter, we've seen very nice recovery.

We're also seeing that they are basically gaining market share against their competition. Overall, we see that as a very positive momentum as we go into the second half of the year.

Definitely, the other large U.S. OEM, the expectation is they will go more with their internal modem that will provide for us also a market gain share as we move into the second half.

I'll add some more color. UNISOC, our Chinese customer in the low-cost smartphone, first, is moving gradually more and more to 5G from being the leader volume-wise in 4G and the prior generation.

That means also higher ASPs for us. If you Google, look around, you'll see that they have won a few dozens of different design wins recently in the last quarter with good brands, local Chinese brands, including vivo, Xiaomi, which in the past got used the MediaTek to more extensively.

These are nice design wins. As long as this continues, both market share gains for them and volume expansion with the higher 5G share in that market going to UNISOC, that will also benefit CEVA, and this is an important high-volume market for us as well.

Understood. Thank you.

That's very helpful. Then the second question I had was, now that ARC has been acquired by GlobalFoundries, are you guys seeing sort of any additional momentum in your licensing business, maybe the NPU licensing business, with that transition?

Definitely, we see it as a tailwind for our business moving forward, especially for our NPU and NeuPro-M product line, where the competition will be more favorable for us, because we really focus on that IP as a complete platform, while over there it will be done differently. That's a good point, Teya.

We will definitely see there as a tailwind and helping us to compete better in the U.S. and the Western world with our NPU.

We just signed one of those very strategic deals this quarter as part of that momentum.

Awesome. Thank you.

Thank you. Rocco, next question?

Hello? Rocco, are we taking more questions?

Sorry, everybody. Just hold on 1 minute.

We're trying to get re-established here with the call center.

Sorry, everyone. We are still trying to work this out.

Sort of lost the operator.

Hi, just in the interest of time here, I'm going to see if any of the other analysts in the queue want to email me their questions, and I'll read them out and we can answer that way if that makes sense. If any of the analysts in the queue want to email me directly now, I'll ask the question on the line.

Thanks. Hi, there.

I have a couple of questions that have just come in over email. First one is from Joseph Cardoso at JPM, J.P.

Morgan. He wants to follow up on the entry-level smartphone momentum, and maybe tie that back to the risks we're hearing at the low-end portion of the market given the component cost inflation.

How are you thinking about the risks there, and are you starting to see any signs of risks there or generally across the portfolio on that front?

I think we've talked about this in the past that the low-end smartphones, in a sense, need much less memory and the more high-end devices which are higher price these days and scarce to supply the high demand. We haven't seen, at least in the last couple of quarters, significant issues around that.

There is still part of the constraints in the market, but to a less degree than the higher-end $1,000 phones type. It's still a play in the industry, no doubt.

It hurts margins and supply. For the time being, if we look sequentially from Q1 to Q2, you've seen a tremendous increase in volume.

Part of it is seasonal, and that means that our customer was able to address that and supply the demand that they planned to, at least. Plus, we saw significant increase both in volume and dollars.

Maybe I'll add to that. Overall, with the trends that we've seen from Q1 to Q2 with the typical seasonality and our customers actually gaining in new sockets, we expect good seasonality expansion in the second half as well.

Having said that, definitely the memory shortage has an impact on the wireless or the handset industry, and it's hard to quantify it exactly how that will make an impact in the second half. Overall, we expect continued expansion, seasonality of our customers' volume as we go to the second half.

Great, thanks. Another question here from Josh Buchalter at TD Cowen.

Josh asks, "Can you provide more context on how NeuPro is being used by new custom silicon engagement, any details on the functionality that chip and timeline to materiality?"

Great questions. First, let me a little bit explain more really about the engagement and the utilization of our NPU IP.

First, as we go, for example, in this case, into more custom silicon offering, what we are doing with the customers, they have a very good deep access to our core architecture of our IP. Then together, we basically go and define what additional special features, capabilities, and with that, specific neural networks will be run on our silicon and hardware IP in a very, very efficient way.

The whole holy grail here is one, to be able to run special networks with special features and capabilities, but not even less importantly, to be able to run them in a very high efficient performance, so-called token per power, in terms of latency, all those very important metrics for edge devices. What these customers with their ability of accessing the complete software stack, including the operating system across all their product lines, helps for both of us together to optimize it even further.

That's a big, big plus, both from how you can use our IP, which is very, very deeply configurable, as well as how we can work together on the complete hardware, software, operating system integration. Now in terms of timing, this is engagement that started.

Typically, within few quarters, our customers go to a tapeout, and then from then with few quarters between close to about 1.5 year to 2 years, they go to production. Even though this is a custom offering, we expect that to go in terms of the timeline the same as with any other kind of IP and product that we are offering in that domain.

We don't expect it to be anytime longer, because very quickly we can configure the solutions and optimize it with this customer. That's the very unique approach that we have with our IP and capabilities, and what helps us actually to win that socket with that large customers against so-called doing on their own.

Thanks, Amir. We have another question here from Gary Mobley at Benchmark, a StoneX company.

Gary asks, when we talk about the U.S. customer in the quarter adding a baseband subsystem in addition to the DSP, are we referring to RF in this case, or is it something else?

Can you repeat the question just so I make sure which

Sure. Sorry.

The U.S. customer that we said upgraded to the complete baseband subsystem in the quarter, were we relating to RF in this scenario, or is it some other sort of function in the subsystem that they upgraded from just DSP?

Yeah. Thanks.

This is related to a WAN or wireless access subsystem with complete satellite configuration. This is a complete so-called modem technology, but excluding the RF.

It's the all-market baseband technology, hardware and software, complete offering, complete subsystem, while we are hardening that with specific process node that the customer needs.

Okay. We have a question here from Charles Shi at Needham.

He asks about the full-year guidance. "Full-year guidance is now raised 13% to 15%.

Can you provide more details on the growth of licensing and royalty relative to the company average growth?"

Sure. If we look at the first two quarters of last year, the licensing and related revenue run rate was $15-ish, $16 million.

When you look at the first half of this year, the first two quarters were $17.8 and now $18.2 million, the $18-ish, $18-ish million. There is no doubt, from all what we explained today, the the solution aspect of providing not just standalone IP, but a full solution to our customers, whether includes multiple technologies, wireless or other, where it includes RF, now it's part of the wireless offering, or AI and sensing technologies, this enabled us, at least in the first part of the of the year, to increase significantly the licensing and related revenue level.

We believe that these levels can continue. This is, at least, our plan.

This is part of our internal forecast. We don't break down licensing and royalties, but guide on a full revenue basis, but do have a strong pipeline for these types of deals, and do believe that we are and have achieved a step function with adding AI, with is the significant part of our revenue these days, about 20%.

We've seen that last year. We've seen that in the first part of this year.

This continues, and it doesn't replace anything. We could see that it is an increase to our overall licensing and related revenue.

That's on one hand. On the royalty front, the annual guidance, the higher-end annual guidance is also part seasonal shift with a stronger second half.

If we look at the last 3 years, every second half of those last 3 years volume-wise increased north of 30% year-over-year for the full second half. We do believe that that seasonality will play in our favor, with other aspects of new royalty payers like automotive that started only this year in the beginning of the year.

On top of that, the market share gains in smartphones that we mentioned, and the combo Bluetooth, Wi-Fi type of solution that are are a better solution to our customers and higher ASPs to us. All this in place puts us in a stronger, as Richard mentioned, 13% to 15% year-over-year growth, and significant improvement in operating margins, as we are keeping expenses tight and and managing all these R&D investments with growth in the top line.

We're looking at about 70%, 7-0% growth in non-GAAP operating margins year-over-year, and about 50% growth in net income year-over-year. That's that's part of our guidance, enhanced guidance for the remainder of 2026.

Thanks, Yaniv. I have another question here.

This is from Martin Yang at Oppenheimer. It's two-part.

First part is, "Do you see more platform companies in your pipeline? How big of an opportunity is that in the broader context of your business?"

Maybe answer that first, and I'll do the second one afterwards.

Overall, as I mentioned previously, we definitely see this is a growing trend, both in terms of the market needs, our customer needs, as well as what we can offer with our complete portfolio of IP. I cannot break down specifically what portion will be solution, what more component IP, but the important thing is that this really helps us to drive a continuous increase in our licensing.

We've seen it through the first half of the year that has been stronger than what we expected, as well as the actual results. That helps us to drive also, or to guide, the second half to be stronger than what we discussed just last quarter.

Overall, this is a very positive trend that will help us to drive more licensing, but the exact portion of each it can fluctuate between quarter to quarter, and not something that specifically I can so-called point to.

The second part from Martin relates to Bluetooth HDT. It asks, "Does a HDT class design win carry a materially higher royalty per unit than your current Bluetooth designs, and when does the HDT royalties start contributing?"

Yeah. First, yeah, the HDT, it's much improved technology, both from throughput that it support as well as the usage, the new use cases that can support.

Definitely, that helps us to drive higher royalty per unit versus the legacy Bluetooth 6.0. Even more so with this technology, we are also now offering a complete solution with our RF IP supporting HDT, and the combination of the two increase even further the royalty per unit that we can get for those sockets.

Overall, we will see it as a positive trend. Volume ramp will starts towards the end of this year, and the significant ramp, of course, will go through '27, '28.

The customer actions that we have announced with, they are basically right now ramping that product in the marketplace, very soon we will start seeing royalties of that platform as well.

Thank you. I've got a question.

We can briefly address it. Multiple analysts have asked about this, but I'll relate this one to Charles Shi at Needham, asking about, for the second half of the year, "Are we assuming normal seasonality for mobile handsets in the second half of the year?

At the same time, are we assuming a significant market share gain at a premium-tier mobile vendor in the second half of the year?" Those two kind of tied in together.

Overall, we are assuming the seasonality as we typically have seen for our current so-called mobile customers, with the caveat that, of course, we need to take into account that the memory allocation challenges that the mobile market is going through. On top of that, definitely we are expecting the gain share with our U.S.

customers as they continue to use more of their internal modem. Both are in play.

Great, thanks. Then just one last question here, going back to Joe Cardoso at J.P.

Morgan. He asks about Wi-Fi units.

"They declined sequentially in the quarter following a few quarters in a row of sequential expansion. Just curious if you could dive into the drivers of the volatility in the quarter, and how you're thinking about the trajectory for Wi-Fi going forward?"

Actually, I wouldn't look at one specific quarter so-called on a sequential level. Overall, year-over-year, we continue to see very significant growth of any of our technology, including Wi-Fi and wireless connectivity.

It's more related to our customer mix and when they ramp their own specific product. Some of those high volume can actually starting Q3, Q4.

I would expect our Wi-Fi shipments to continue to grow very nicely year-over-year through the rest of the year as well.

Great. Thanks.

I think that's all we'll take for now. Amir, do you want to go to the CEO closing remarks, please?

Thanks, Richard. In closing, this quarter reinforces our confidence in the direction of the business and the strength of our IP.

We are seeing increasing demand for our technologies across AI, connectivity, and sensing, strong adoption of broader hardware and software platforms, and continued diversification of our royalty base. At the same time, our licensing momentum is translating into improving profitability and gives us confidence in raising our outlook for the year.

The opportunity ahead of us continues to expand as intelligence moves to the edge and more companies develop custom silicon to differentiate their products. With our connect, sense, and infer portfolio, we believe CEVA is uniquely positioned to enable that transition.

Just as importantly, we are seeing customers engage with us at the broader platform level, increasing both the strategic value of our relationships and our long-term royalty opportunity. The momentum we've built in the first half of the year gives us confidence heading into the second half.

Richard, back to you.

Thanks, Amir, and thanks, everybody, for keeping your patience with us there. As a reminder, the prepared remarks for this conference call are accessible through the Investor section of our website.

With regards to upcoming investor events we will be attending, here are some of the conferences: the Rosenblatt 6th Annual Technology Summit Part 2, August 17th and 18th, being held virtually; the 7th Annual Needham Virtual Semiconductor and SemiCap Conference, August 19th and 20th, being held virtually; the Stifel 2026 Tech Executive Summit, August 24th and 25th in Deer Valley, Utah; Jefferies Semiconductor, IT Hardware, and Communication Technology Conference, August 25th and 26th in Chicago; and Benchmark StoneX's TMT Conference, September the 10th in New York, New York. 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.