CEVA Inc (NASDAQ: CEVA) shares plummeted 15.11% in early trading on Wednesday following the release of its disappointing first-quarter 2025 financial results. The semiconductor intellectual property (IP) provider's earnings and revenue fell short of analyst expectations, triggering a significant sell-off.
The company reported a quarterly loss of $0.14 per share, with adjusted earnings per share coming in at $0.06, missing the analyst estimate of $0.07. CEVA's revenue for the quarter was $24.2 million, falling well below the consensus estimate of $26.36 million. The substantial revenue miss, coupled with a net loss of $3.3 million for the quarter, appears to be the primary driver behind the sharp decline in CEVA's stock price.
Despite the overall disappointing results, CEVA did report some positive metrics, including an adjusted gross margin of 87% and an adjusted operating income of $300,000. However, these figures were overshadowed by the operating loss of $4.4 million. The market's reaction suggests investors are reassessing their expectations for the company's near-term performance and growth prospects in light of these underwhelming results.