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Ceva Inc (CEVA)
NASDAQ:CEVA
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Ceva (CEVA) AI Stock Analysis

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CEVA

Ceva

(NASDAQ:CEVA)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$28.00
▲(7.12% Upside)
Ceva's overall stock score reflects its financial challenges, particularly in profitability and cash flow management. While technical indicators show some positive momentum, the negative valuation metrics and mixed earnings call results highlight the need for strategic improvements to enhance financial health and investor confidence.
Positive Factors
AI Business Expansion
The expansion into AI with new customer agreements positions Ceva for future growth, leveraging the increasing demand for AI solutions across industries.
Strong Licensing Execution
Securing new licensing agreements, especially with first-time and OEM customers, strengthens Ceva's market position and enhances revenue stability.
Growth in Consumer IoT
Significant growth in consumer IoT shipments reflects strong demand and Ceva's ability to capture market share in a rapidly expanding sector.
Negative Factors
Revenue Decline
A decline in revenue indicates potential challenges in maintaining market competitiveness and could impact long-term financial stability.
Operating Loss
The significant increase in operating loss suggests operational inefficiencies that could hinder profitability and require strategic adjustments.
Royalties Year-over-Year Decrease
A decrease in royalty revenue highlights challenges in the smartphone market, potentially affecting Ceva's revenue streams and growth prospects.

Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)

Ceva Business Overview & Revenue Model

Company DescriptionCEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI). The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was incorporated in 1999 and is headquartered in Rockville, Maryland.
How the Company Makes MoneyCeva generates revenue primarily through licensing its technologies to semiconductor manufacturers and system-on-chip (SoC) developers. The company's revenue model is based on upfront licensing fees, ongoing royalties based on the number of chips sold that incorporate Ceva's technology, and service fees for technical support and additional services. Key revenue streams include licensing agreements for DSP cores and AI processing units, which are critical for applications in smartphones, smart home devices, and automotive systems. Additionally, Ceva has established significant partnerships with major semiconductor companies, enhancing its market presence and contributing positively to its earnings through collaborative development projects and joint marketing initiatives.

Ceva Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in AI and IoT growth, as well as a major milestone of 20 billion devices shipped. However, these were offset by declines in revenue, royalties, and a notable operating loss, suggesting mixed performance.
Q2-2025 Updates
Positive Updates
Strong Licensing Execution
CEVA secured 13 license agreements, including 5 first-time customers and 4 OEM customers, highlighting the strength of its IP portfolio.
AI Business Expansion
CEVA entered the broad adoption phase for its Edge AI NPUs, securing 4 strategic high-impact NPU customer agreements.
Growth in Consumer IoT
Consumer IoT shipments were up 21% sequentially and 60% year-over-year, driven by record-high cellular IoT and Wi-Fi 6 shipments.
Milestone Achievement
CEVA announced over 20 billion CEVA power devices shipped, positioning the company among elite IP companies.
Negative Updates
Revenue Decline
Revenue for the second quarter of 2025 was $25.7 million, down 10% compared to the same quarter last year.
Royalties Year-over-Year Decrease
Royalty revenue declined by 5% year-over-year, attributed to slow smartphone sales at the lower end of the market.
Operating Loss
GAAP operating loss for the second quarter was $4.5 million compared to a GAAP operating loss of $35,000 for the same period last year.
Gross Margin Decline
Gross margins were 86% GAAP and 87% non-GAAP, down from 90% and 91% respectively, a year ago.
Company Guidance
During CEVA, Inc.'s second quarter 2025 earnings call, the company provided guidance indicating a strong performance in licensing and royalties, with revenue for Q2 reported at $25.7 million, a 10% decline year-over-year, and licensing revenue contributing $15 million or 59% of total revenue. CEVA highlighted a 16% sequential increase in royalty revenue, though it declined 5% year-over-year, with consumer IoT shipments showing a robust 21% sequential and 60% year-over-year increase. The company anticipates continued royalty growth throughout the year, driven by seasonal demand and increased market share in the smartphone sector, particularly with a leading U.S. OEM. CEVA also reported a significant milestone of over 20 billion devices shipped and emphasized the momentum in their AI business, securing four strategic NPU customer agreements, which they expect to drive future growth. Looking ahead, CEVA projects third-quarter revenue between $26 million and $30 million, maintaining their overall revenue growth guidance and targeting a double-digit increase in non-GAAP net income and EPS compared to 2024.

Ceva Financial Statement Overview

Summary
Ceva's financials show robust revenue growth and effective cost management, but profitability remains a challenge with negative net and EBIT margins. The balance sheet is stable with low debt and strong liquidity, while cash flows are improving but constrained by profitability issues.
Income Statement
45
Neutral
Ceva's financial performance shows mixed results. The company has achieved revenue growth of 2.03% in the TTM, but struggles with profitability as evidenced by a negative net profit margin of -1.13% and a negative EBIT margin of -6.46%. The gross profit margin remains strong at 87.25%, indicating effective cost management. However, consistent negative profitability metrics suggest challenges in converting revenue growth into net income.
Balance Sheet
60
Neutral
Ceva's balance sheet demonstrates stability with a low debt-to-equity ratio of 0.018 and an equity ratio of 28.92%, reflecting a solid equity base relative to total assets. The return on equity is negative due to net losses, but the company maintains a strong liquidity position with significant cash reserves.
Cash Flow
40
Negative
Ceva's cash flow profile shows improvement in free cash flow, which grew by 104.65% in the TTM. The operating cash flow to net income ratio is positive at 2.76, indicating good cash flow generation relative to net income. However, the free cash flow to net income ratio is lower at 0.85, suggesting limited cash flow conversion from income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue106.35M106.94M97.42M134.65M122.71M100.33M
Gross Profit91.98M94.17M85.77M107.60M105.88M89.58M
EBITDA-9.05M-3.41M-8.58M15.01M14.03M5.06M
Net Income-4.25M-8.79M-11.88M-23.18M396.00K-2.38M
Balance Sheet
Total Assets302.84M310.09M304.08M308.44M328.66M306.95M
Cash, Cash Equivalents and Short-Term Investments154.65M161.62M166.54M139.48M154.86M130.13M
Total Debt4.37M5.56M6.46M9.69M8.40M8.74M
Total Liabilities36.95M42.39M39.74M49.57M51.93M46.06M
Stockholders Equity265.89M266.56M264.34M258.87M276.73M260.89M
Cash Flow
Free Cash Flow-225.00K516.00K-9.21M3.42M23.61M12.23M
Operating Cash Flow2.22M3.47M-6.33M6.92M25.80M15.16M
Investing Cash Flow10.16M-2.45M10.84M-15.12M-16.71M-15.22M
Financing Cash Flow-8.38M-5.57M-2.77M-3.31M3.24M-2.11M

Ceva Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.14
Price Trends
50DMA
25.28
Positive
100DMA
23.53
Positive
200DMA
25.94
Positive
Market Momentum
MACD
0.78
Positive
RSI
51.60
Neutral
STOCH
14.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEVA, the sentiment is Positive. The current price of 26.14 is below the 20-day moving average (MA) of 27.81, above the 50-day MA of 25.28, and above the 200-day MA of 25.94, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
$1.30B-36.20%-7.49%-64.33%
58
Neutral
$775.11M-2.98%15.45%49.82%
58
Neutral
$766.00M-34.11%-10.53%36.86%
55
Neutral
$777.77M-106.09-5.43%-3.23%-122.16%
54
Neutral
$655.33M-61.68-3.81%7.71%-44.25%
45
Neutral
$584.73M18.64%16.54%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CEVA
Ceva
27.44
3.60
15.10%
AEHR
Aehr Test Systems
23.68
8.39
54.87%
ICHR
Ichor Holdings
21.05
-5.79
-21.57%
INDI
indie Semiconductor
5.35
1.91
55.52%
SKYT
SkyWater Technology
15.63
5.63
56.30%
AIP
Arteris
12.57
5.59
80.09%

Ceva Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Ceva Unveils 2025 Executive Bonus and Equity Plan
Neutral
Feb 14, 2025

Ceva, Inc. has implemented a comprehensive 2025 Executive Bonus Plan for its top executives to enhance competitiveness and align with the company’s strategic goals. The plan, effective January 1, 2025, includes financial and operating profit targets, along with discretionary components, with potential bonuses to be paid in 2026. Additionally, equity awards in the form of restricted stock units and performance-based stock units have been granted contingent on stockholder approval, with vesting scheduled between 2026 and 2028. The company has also amended its director compensation policy to increase cash retainers and equity grants, aligning more closely with peer practices.

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.Date of analysis: Oct 23, 2025