Ceva and United Micro Technology announced the launch of the HyperMotion 5G RedCap Automotive Platform, a single‑chip solution that combines United Micro’s RedCap SoC with Ceva’s PentaG Lite 5G modem IP and advanced DSP technology. The platform is designed for automotive telematics control units and C‑V2X applications, supporting 5G RedCap, LTE Cat‑1 to Cat‑4, and future 5G NR deployments while keeping power consumption low enough for mass‑market vehicles.
The partnership positions Ceva to capture a share of the projected 700 million global automotive connections expected by 2030. As of September 2025, 34 operators were evaluating RedCap technology, underscoring the rapid adoption of cost‑effective 5G solutions in the automotive sector. By embedding Ceva’s wireless IP into a mass‑market platform, the company gains a new revenue stream from OEMs and Tier‑1 suppliers that demand secure, low‑cost connectivity for connected‑vehicle services.
Ceva reported Q3 2025 revenue of $28.4 million, a 4 % year‑over‑year increase and 11 % sequential growth, slightly below the consensus estimate of $28.49 million. Non‑GAAP earnings per share were $0.11, which beat the $0.10 consensus but missed the $0.14 estimate cited by some analysts. The revenue beat was driven by strong licensing execution, particularly in AI processor licensing, which accounted for roughly one‑third of licensing revenue. The EPS beat, when measured against the lower estimate, reflects disciplined cost management and the high margin of the AI licensing segment, while the miss against the higher estimate highlights the sensitivity of EPS to the consensus range used.
Segment‑level data show licensing revenue of $16.0 million and royalty revenue of $12.4 million, up from $15.6 million and $11.6 million respectively in Q3 2024. The licensing mix shift toward AI IP contributed to the higher gross margin of 89 % in Q3 2025, up from 87 % YoY, indicating that the company is successfully leveraging its high‑margin AI portfolio to offset pressure in other segments.
Management emphasized the strength of the licensing business. CEO Amir Panush said, “We exceeded expectations on both revenue and non‑GAAP diluted income per share this quarter, driven by strong licensing execution and healthy royalty growth. In licensing, we secured several strategic agreements that reinforce our leadership in wireless connectivity and accelerate our expansion in AI.” CFO Yaniv Arieli added, “AI processor licensing contributed approximately one‑third of licensing revenue in both the second and third quarters of 2025, marking a major milestone for our AI business.”
The market reacted positively to the earnings report, with analysts noting the earnings beat and the strategic partnership as key drivers. The positive reaction was largely attributed to the strong licensing results, the expansion into automotive connectivity, and the robust gross‑margin performance, which together signal continued growth potential for Ceva’s high‑margin IP portfolio.
Strategically, the HyperMotion platform expands Ceva’s footprint in a rapidly growing automotive connectivity market while reinforcing its AI licensing strength. The partnership offers a differentiated, power‑efficient modem solution that can accelerate time‑to‑market for connected‑vehicle features such as eCall, TSN, and hardware‑accelerated network offloading. While the company faced a slight revenue miss and EPS ambiguity, the overall trajectory remains positive, supported by a high‑margin AI licensing mix, a growing automotive market, and a clear path to monetizing the new platform across OEMs and Tier‑1 suppliers.
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