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Ceva
(NASDAQ:CEVA)
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Rating:54Neutral
Price Target:
$32.00
▼(-11.97% Downside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by ongoing profitability and cash flow weakness (negative TTM operating/free cash flow) and a weak technical setup versus key moving averages. Offsetting these are a strong balance sheet and a positive earnings-call outlook with upgraded guidance and strong licensing momentum, but the lack of earnings-based valuation support (negative P/E) keeps the overall score moderate.
Positive Factors
Strong balance sheet
Low leverage and a sizable equity base provide durable financial flexibility to fund R&D, support licensing commercialization and absorb timing volatility in royalty receipts. This balance sheet strength gives the company runway to execute multi-quarter product ramps without immediate financing pressure.
Negative Factors
Weak profitability
Despite high gross margins, persistent operating losses indicate structural operating-cost pressure. If operating expenses remain elevated relative to revenue, the company may struggle to convert high gross profit into sustainable net income, limiting free cash generation over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Low leverage and a sizable equity base provide durable financial flexibility to fund R&D, support licensing commercialization and absorb timing volatility in royalty receipts. This balance sheet strength gives the company runway to execute multi-quarter product ramps without immediate financing pressure.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$916.29M
Dividend YieldN/A
Average Volume (3M)683.78K
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth2.99%
EPS Growth-64.99%
CountryUS
Employees406
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.45
Shares Outstanding27,859,370
10 Day Avg. Volume529,704
30 Day Avg. Volume683,776
Financial Highlights & Ratios
PEG Ratio-2.59
Price to Book (P/B)1.55
Price to Sales (P/S)4.77
P/FCF Ratio1.01K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$50.00Price Target Upside37.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.53
Revenue Forecast (FY)$122.77M
Ceva Business Overview & Revenue Model
Company Description
CEVA, Inc. is a global provider of intellectual property (IP) for advanced wireless connectivity and intelligent sensing solutions, serving semiconductor manufacturers and original equipment manufacturers (OEMs). The company specializes in develop...
How the Company Makes Money
CEVA makes money primarily by licensing its semiconductor IP to customers and earning royalties when customers ship chips that incorporate CEVA technology. Its revenue model typically includes: (1) Upfront license fees: customers pay for the right...
Ceva Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive execution story: top‑line growth (+11% YoY), an 18% increase in licensing revenue, record Wi‑Fi volume (+158% YoY), multiple strategic wins (Bluetooth HDT full‑stack, NTN, UWB, automotive AI in Toyota RAV4) and an upgraded full‑year outlook and margin expansion targets. Offsetting items include flat total royalties (mobile softness), declines in Bluetooth and industrial IoT unit shipments, and wider GAAP losses in the quarter. On balance the operational momentum, high margins, strong licensing pipeline and upgraded guidance outweigh the near‑term royalty and unit headwinds.Positive Updates
Revenue Growth
Total revenues of $27.0M in Q1 FY2026, up 11% year-over-year, driven by strong licensing execution.
Negative Updates
Flat Total Royalties and Mobile Softness
Total royalty revenues were $9.2M, flat year‑over‑year, with near‑term weakness attributed to seasonal mobile softness, memory availability constraints and channel inventory in lower‑tier segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenues of $27.0M in Q1 FY2026, up 11% year-over-year, driven by strong licensing execution.
Read all positive updates
Company Guidance
CEVA upgraded 2026 outlook toward the high end of its prior 8%–12% revenue growth range over 2025, expects typical seasonality with lower H1 and stronger H2 (subject to memory pricing/supply), and forecasts combined cost of revenues and OpEx to rise ~8% versus 2025; management now expects non‑GAAP operating margins and non‑GAAP net income to increase 40%–50% year‑over‑year. For Q2, revenue is guided to $26M–$30M, GAAP gross margin ~87% and non‑GAAP gross margin ~88% (ex. ~$0.2M equity‑based comp and ~$0.1M amortization), GAAP OpEx $27.7M–$28.7M (including ~$5.3M equity comp, $0.1M amortization and $0.1M acquisition costs), non‑GAAP OpEx $22.2M–$23.2M, net interest income ~ $1.7M, taxes ~ $1.5M, and share count ~28.0M (GAAP) / 29.7M (non‑GAAP).Ceva Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.38M | 109.60M | 106.94M | 97.42M | 120.58M | 113.83M |
| Gross Profit | 97.86M | 95.44M | 94.17M | 85.77M | 105.45M | 103.45M |
| EBITDA | -1.36M | -554.00K | 1.38M | -3.32M | 12.15M | 16.63M |
| Net Income | -11.77M | -10.64M | -8.79M | -11.88M | -23.18M | 396.00K |
Balance Sheet | ||||||
| Total Assets | 388.23M | 388.26M | 308.95M | 304.08M | 308.44M | 331.77M |
| Cash, Cash Equivalents and Short-Term Investments | 215.69M | 221.98M | 163.64M | 166.54M | 138.31M | 154.86M |
| Total Debt | 16.88M | 30.52M | 5.56M | 6.46M | 7.89M | 8.40M |
| Total Liabilities | 50.04M | 51.80M | 42.39M | 39.74M | 49.57M | 55.04M |
| Stockholders Equity | 338.18M | 336.46M | 266.56M | 264.34M | 258.87M | 276.73M |
Cash Flow | ||||||
| Free Cash Flow | -5.76M | 516.00K | 516.00K | -9.21M | 3.42M | 23.61M |
| Operating Cash Flow | -837.00K | 3.47M | 3.47M | -6.33M | 6.92M | 25.80M |
| Investing Cash Flow | -56.04M | -2.45M | -2.45M | 10.84M | -15.12M | -16.71M |
| Financing Cash Flow | 59.53M | -5.57M | -5.57M | -2.77M | -3.31M | 3.24M |
Ceva Technical Analysis
Negative
36.35
Price Trends
42.27
Negative
33.63
Negative
28.29
Positive
Market Momentum
-1.35
Positive
39.91
Neutral
27.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEVA, the sentiment is Negative. The current price of 36.35 is below the 20-day moving average (MA) of 39.22, below the 50-day MA of 42.27, and above the 200-day MA of 28.29, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 27.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEVA.
Ceva Risk Analysis
Ceva disclosed 34 risk factors in its most recent earnings report. Ceva reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ceva Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.60B | 13.75 | 75.20% | ― | 67.18% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.51B | -347.74 | -4.66% | ― | -15.21% | -81.50% | |
54 Neutral | $916.29M | -72.08 | -3.89% | ― | 2.99% | -64.99% | |
52 Neutral | $2.61B | -50.81 | -7.50% | ― | 7.53% | -203.93% | |
51 Neutral | $1.35B | -37.82 | 445.97% | ― | 25.57% | 2.16% | |
45 Neutral | $717.02M | -4.19 | -42.36% | ― | 0.17% | -1.78% |
* Technology Sector Average
CEVA
Ceva
32.65
11.02
50.95%
AEHR
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79.98
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320.28%
ICHR
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75.27
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273.73%
INDI
indie Semiconductor
3.23
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-15.22%
SKYT
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32.46
23.33
255.53%
AIP
Arteris
29.88
20.43
216.19%
Ceva Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Ceva Announces Leadership Transition as COO Steps Down
Neutral
Jul 13, 2026
On July 8, 2026, Ceva, Inc. and Executive Vice President and Chief Operating Officer Michael Boukaya agreed that he would resign from his role, with his final day as COO set for August 1, 2026. He will remain employed by the company through Decemb...
Executive/Board ChangesShareholder Meetings
Ceva Shareholders Elect Directors and Approve Executive Pay
Neutral
Jun 3, 2026
At its virtual annual meeting on June 2, 2026, Ceva, Inc. shareholders elected seven directors, including Bernadette Andrietti, Amir Faintuch and CEO Amir Panush, to one-year terms ending at the 2027 annual meeting. The vote results showed broad b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.